Document:

Exhibit 10.3

 

EXECUTION COPY

 

CREDIT AGREEMENT

 

dated as of

December 29, 2009,

 

among

 

TROPICANA ENTERTAINMENT INC.,

 

THE LENDERS PARTY HERETO

 

and

 

ICAHN AGENCY SERVICES LLC,

as Administrative Agent and Collateral Agent

 

and

 

ICAHN AGENCY SERVICES LLC,

as Sole Bookrunner and Sole Lead Arranger

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I. Definitions

  	
  1

  
	
  1.01.

  	
  Defined Terms

  	
  1

  
	
  1.02.

  	
  Terms Generally

  	
  20

  
	
  ARTICLE II. The Credits

  	
  21

  
	
  2.01.

  	
  Commitments

  	
  21

  
	
  2.02.

  	
  Loans

  	
  21

  
	
  2.03.

  	
  Revolver Borrowing Procedure

  	
  22

  
	
  2.04.

  	
  Use of Proceeds

  	
  22

  
	
  2.05.

  	
  Evidence of Debt; Repayment of Loans

  	
  22

  
	
  2.06.

  	
  Fees

  	
  23

  
	
  2.07.

  	
  Interest on Loans

  	
  24

  
	
  2.08.

  	
  Default Interest

  	
  24

  
	
  2.09.

  	
  Repayment of Term Borrowings

  	
  24

  
	
  2.10.

  	
  Termination and Reduction of Commitments

  	
  24

  
	
  2.11.

  	
  Optional Prepayment

  	
  25

  
	
  2.12.

  	
  Mandatory Prepayments

  	
  25

  
	
  2.13.

  	
  Reserve Requirements; Change in Circumstances

  	
  27

  
	
  2.14.

  	
  Pro Rata Treatment

  	
  28

  
	
  2.15.

  	
  Sharing of Setoffs

  	
  28

  
	
  2.16.

  	
  Payments

  	
  29

  
	
  2.17.

  	
  Taxes

  	
  29

  
	
  2.18.

  	
  Assignment of Commitments Under Certain Circumstances; Duty
  to Mitigate

  	
  31

  
	
  ARTICLE III. Representations and
  Warranties

  	
  32

  
	
  3.01.

  	
  Organization; Powers

  	
  32

  
	
  3.02.

  	
  Authorization; No Conflict

  	
  32

  
	
  3.03.

  	
  Enforceability

  	
  33

  
	
  3.04.

  	
  Governmental Approvals

  	
  33

  
	
  3.05.

  	
  Financial Statements

  	
  33

  
	
  3.06.

  	
  No Material Adverse Change

  	
  34

  
	
  3.07.

  	
  Title to Properties; Possession Under Leases

  	
  34

  
	
  3.08.

  	
  Subsidiaries

  	
  34

  
	
  3.09.

  	
  Litigation; Compliance with Laws

  	
  35

  
	
  3.10.

  	
  Agreements

  	
  35

  
	
  3.11.

  	
  Federal Reserve Regulations

  	
  35

  
	
  3.12.

  	
  Investment Company Act

  	
  35

  
	
  3.13.

  	
  Tax Returns

  	
  35

  
	
  3.14.

  	
  No Material Misstatements

  	
  36

  
	
  3.15.

  	
  Employee Benefit Plans

  	
  36

  
	
  3.16.

  	
  Environmental Matters

  	
  36

  
	
  3.17.

  	
  Insurance

  	
  37

  
	
  3.18.

  	
  Security Documents

  	
  37

  
	
  3.19.

  	
  Location of Real Property and Leased Premises

  	
  39

  
	
  3.20.

  	
  Leased Ships and Vehicles

  	
  40

  

 

i

 

	
  3.21.

  	
  Labor Matters

  	
  40

  
	
  3.22.

  	
  Sanctioned Persons. Patriot Act

  	
  40

  
	
  3.23.

  	
  Casino Leases

  	
  40

  
	
  3.24.

  	
  Citizenship

  	
  41

  
	
  ARTICLE IV. Conditions of Lending

  	
  41

  
	
  4.01.

  	
  All Credit Events

  	
  41

  
	
  4.02.

  	
  First Credit Event

  	
  41

  
	
  ARTICLE V. Affirmative Covenants

  	
  45

  
	
  5.01.

  	
  Existence; Compliance with Laws; Businesses and Properties

  	
  45

  
	
  5.02.

  	
  Insurance

  	
  45

  
	
  5.03.

  	
  Payment of Obligations and Taxes

  	
  47

  
	
  5.04.

  	
  Financial Statements, Reports, etc.

  	
  47

  
	
  5.05.

  	
  Litigation and Other Notices

  	
  49

  
	
  5.06.

  	
  Information Regarding Collateral

  	
  49

  
	
  5.07.

  	
  [Intentionally Left Blank]

  	
  50

  
	
  5.08.

  	
  Maintaining Records; Access to Properties and Inspections;
  Maintenance of Ratings

  	
  50

  
	
  5.09.

  	
  Use of Proceeds

  	
  50

  
	
  5.10.

  	
  Employee Benefits

  	
  50

  
	
  5.11.

  	
  Compliance with Environmental Laws

  	
  50

  
	
  5.12.

  	
  Environmental Reporting

  	
  51

  
	
  5.13.

  	
  Preparation of Environmental Reports

  	
  51

  
	
  5.14.

  	
  Further Assurances

  	
  51

  
	
  5.15.

  	
  Approvals to Security Documents

  	
  53

  
	
  5.16.

  	
  Disqualification

  	
  53

  
	
  ARTICLE VI. Negative Covenants

  	
  53

  
	
  6.01.

  	
  Indebtedness

  	
  53

  
	
  6.02.

  	
  Liens

  	
  55

  
	
  6.03.

  	
  Investments, Loans and Advances

  	
  57

  
	
  6.04.

  	
  Mergers, Consolidations, Sales of Assets and Acquisitions

  	
  58

  
	
  6.05.

  	
  Restricted Payments; Restrictive Agreements

  	
  59

  
	
  6.06.

  	
  Transactions with Affiliates

  	
  60

  
	
  6.07.

  	
  Business of the Borrower, the Guarantors and Subsidiaries

  	
  60

  
	
  6.08.

  	
  Other Indebtedness and Agreements

  	
  60

  
	
  6.09.

  	
  Capital Expenditures

  	
  61

  
	
  6.10.

  	
  Fixed Charge Coverage Ratio

  	
  61

  
	
  6.11.

  	
  Leverage Ratio

  	
  61

  
	
  6.12.

  	
  Minimum Liquidity

  	
  62

  
	
  6.13.

  	
  Fiscal Year

  	
  62

  
	
  6.14.

  	
  Sale and Leaseback Transaction

  	
  62

  
	
  ARTICLE VII. Events of Default

  	
  62

  
	
  ARTICLE VIII. The Administrative
  Agent and the Collateral Agent

  	
  66

  
	
  8.01.

  	
  Appointment of Agents

  	
  66

  
	
  8.02.

  	
  Powers and Duties

  	
  66

  
	
  8.03.

  	
  General Immunity

  	
  66

  
	
  8.04.

  	
  Agents Entitled to Act as Lender

  	
  68

  
	
  8.05.

  	
  Lenders’ Representations, Warranties and Acknowledgment

  	
  68

  
	
  8.06.

  	
  Right to Indemnity

  	
  68

  

 

ii

 

	
  8.07.

  	
  Successor Administrative Agent

  	
  69

  
	
  8.08.

  	
  Security Documents

  	
  71

  
	
  8.09.

  	
  Posting of Approved Electronic Communications

  	
  71

  
	
  8.10.

  	
  Agents and Arrangers

  	
  73

  
	
  ARTICLE IX. Miscellaneous

  	
  73

  
	
  9.01.

  	
  Notices

  	
  73

  
	
  9.02.

  	
  Survival of Agreement

  	
  74

  
	
  9.03.

  	
  Binding Effect

  	
  74

  
	
  9.04.

  	
  Successors and Assigns

  	
  74

  
	
  9.05.

  	
  Expenses; Indemnity

  	
  78

  
	
  9.06.

  	
  Right of Setoff

  	
  80

  
	
  9.07.

  	
  Applicable Law

  	
  80

  
	
  9.08.

  	
  Waivers; Amendment

  	
  80

  
	
  9.09.

  	
  Application of Gaming Laws

  	
  81

  
	
  9.10.

  	
  Interest Rate Limitation

  	
  83

  
	
  9.11.

  	
  Entire Agreement

  	
  83

  
	
  9.12.

  	
  WAIVER OF JURY TRIAL

  	
  84

  
	
  9.13.

  	
  Marshalling; Payments Set Aside

  	
  84

  
	
  9.14.

  	
  Severability

  	
  84

  
	
  9.15.

  	
  Independence of Covenants

  	
  84

  
	
  9.16.

  	
  Counterparts

  	
  84

  
	
  9.17.

  	
  Headings

  	
  85

  
	
  9.18.

  	
  Jurisdiction; Consent to Service of Process

  	
  85

  
	
  9.19.

  	
  Confidentiality

  	
  85

  
	
  9.20.

  	
  USA PATRIOT Act Notice

  	
  86

  
	
  9.21.

  	
  Disclosure

  	
  86

  
	
  9.22.

  	
  Effective Date

  	
  86

  

 

iii

 

SCHEDULES

 

Schedule 1.01(a) —
Guarantors

Schedule 1.01(b) —
Mortgaged Property

Schedule 2.01 — Lenders
and Commitments

Schedule 3.02 — Conflicts

Schedule 3.04 —
Government Approvals

Schedule 3.07 — Title to
Properties

Schedule 3.08 —
Subsidiaries

Schedule 3.09 —
Litigation

Schedule 3.16 —
Environmental Matters

Schedule 3.17 — Insurance

Schedule 3.18(a) —
UCC Filing Offices

Schedule 3.19(a) —
Owned Real Property

Schedule 3.19(b) —
Leased Real Property

Schedule 3.20 — Owned and
Leased Ships/Vessels

Schedule 3.21 — Labor
Matters

Schedule 3.23 — Casino
Leases

Schedule 6.01 —
Indebtedness

Schedule 6.02 — Liens

Schedule 6.05 —
Restrictive Agreements

Schedule 6.08(a) —
Material Contracts

 

EXHIBITS

 

Exhibit A — Form of
Administrative Questionnaire

Exhibit B — Form of
Assignment and Acceptance

Exhibit C — Form of
Borrowing Request

Exhibit D — Form of
Guarantee and Collateral Agreement

Exhibit E — Form of
Ship Mortgage

Exhibit F — Form of
Mortgage

Exhibit G — Form of
Warrant

 

iv

 

CREDIT AGREEMENT

 

CREDIT AGREEMENT (as it may be amended, supplemented
or otherwise modified from time to time, this “Agreement”) dated as of December 29,
2009, among TROPICANA ENTERTAINMENT INC., a Delaware corporation (the “Borrower”),
the lenders party hereto from time to time (the “Lenders”) and ICAHN
AGENCY SERVICES LLC, as administrative agent (in such capacity, the “Administrative
Agent”) and as collateral agent (in such capacity, the “Collateral Agent”)
for the Lenders.

 

PRELIMINARY STATEMENT

 

WHEREAS,
capitalized terms used in these Recitals shall have the respective meanings set
forth for such terms in Section 1.01 hereof;

 

WHEREAS,
on May 5, 2008, Borrower, the Guarantors and certain Affiliates each filed
a voluntary petition for relief (collectively, the “Chapter 11 Cases”)
under Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court
for the District of Delaware (the “Bankruptcy Court”);

 

WHEREAS,
the Borrower has requested that the Lenders provide a senior secured credit
facility in an aggregate maximum principal amount of $150,000,000, consisting
of (i) a term loan facility in the aggregate principal amount of
$130,000,000 and (ii) a revolving credit facility in a maximum aggregate
amount of $20,000,000, to repay certain indebtedness, including the DIP Credit
Agreement, to pay Bankruptcy Court-approved administrative claims and expenses,
to provide for working capital, to pay fees and expenses relating to this
Agreement and other general corporate purposes;

 

WHEREAS,
the Lenders are willing to make available to the Borrower the Loans upon the
terms and subject to the conditions set forth herein; and

 

WHEREAS,
each of the Guarantors has agreed to guaranty the obligations of the Borrower
hereunder in accordance with the terms of the Guaranty and Security Agreement
and each of the Borrower and each of the Guarantors has agreed to secure its
obligations to the Lenders hereunder with, inter alia, security interests in, and liens on, substantially
all of its property and assets, whether real or personal, tangible or
intangible, now existing or hereafter acquired or arising, all as more fully
provided herein and in the Security Documents.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as follows:

 

ARTICLE I.

Definitions

 

1.01.       Defined Terms.  As used in this Agreement, the following
terms shall have the meanings specified below:

 

“Additional Guarantor”
shall have the meaning assigned to such term in Section 5.14(b).

 

1

 

“Administrative Agent
Fees” shall have the meaning assigned to such term in Section 2.06(b).

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in the form of Exhibit A,
or such other form as may be supplied from time to time by the Administrative
Agent.

 

“Affiliate” shall
mean, when used with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

 

“Agents” shall
mean the Administrative Agent and the Collateral Agent.

 

“Argosy III” shall
mean the Argosy III Riverboat, Official Number 1023758, and all related
fittings, furnishings, fixtures, equipment and appurtenances.

 

“Asset Sale” shall
mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise) by the Borrower, any Subsidiary or any Guarantor to
any Person other than the Borrower or any Guarantor of (a) any Equity
Interests of the Borrower or any of the Subsidiaries (other than directors’
qualifying shares) or (b) any other assets of the Borrower or any of the
Subsidiaries (other than (i) inventory and Permitted Investments, in each
case disposed of in the ordinary course of business, (ii) surplus,
damaged, obsolete, idle or worn out assets, scrap, in each case disposed of in
the ordinary course of business, (iii) the cross-licensing or nonexclusive
licensing of Intellectual Property in the ordinary course of business, (iv) the
sale or issuance of any Subsidiary’s equity to any Loan Party, (v) the
sale or discount of overdue accounts receivables arising in the ordinary course
of business (consistent with customary industry practice and not as part of any
bulk sale or financing of receivables), (vi) the sale of furniture,
fixtures, equipment (including gaming equipment) in the ordinary course of
business and (vii) any sale, transfer or other disposition or series of
related sales, transfers or other dispositions having a value not in excess of
$10,000,000 per sale, transfer or disposition and $20,000,000 in the aggregate
for all such sales, transfers or dispositions made in accordance with this
clause (vii) during the term of this Agreement).

 

“Assignment and
Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee, and accepted by the Administrative Agent, in the form
of Exhibit B or such other form as shall be approved by the Administrative
Agent.

 

“Assignment
of Earnings, Charters and Insurances” shall refer to each assignment of
earnings, charters and insurances, in form and substance reasonably acceptable
to the Administrative Agent, entered into in connection with each Ship Mortgage
and creating a security interest in the Assigned Property (as defined in the
Assignment of Earnings, Charters and Insurances) under the UCC.

 

“Aztar” shall mean
Aztar Corporation, a Delaware corporation or any successor thereto.

 

“B-527” shall mean
the support barge to Bayou Caddy’s Jubilee Casino with the name “B-527”,
Official Number 514272, and all related fittings, furnishings, fixtures,
equipment and appurtenances.

 

2

 

“Bankruptcy
Cases” shall mean the chapter 11 bankruptcy cases of Tropicana
Entertainment, LLC, Tropicana Entertainment Intermediate Holdings, LLC, CP
Laughlin Realty, LLC and JMBS Casino LLC, jointly administered in the
Bankruptcy Court under the lead case In re
Tropicana Entertainment, LLC, Case No. 08-10856 (KJC).

 

“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

 

“Bankruptcy Court”
shall have the meaning set forth in the recitals hereto or shall mean any other
court having competent jurisdiction over the Chapter 11 Cases.

 

“Bayou Caddy’s Jubilee
Casino” shall mean the vessel with the name “Bayou Caddy’s Jubilee Casino”,
Official Number 519419, and all related fittings, furnishings, fixtures,
equipment and appurtenances.

 

“Board” shall mean
the Board of Governors of the Federal Reserve System of the United States of
America (or any successors).

 

“Borrowing” shall
mean any Loans made on the same date.

 

“Borrowing Request”
shall mean a request by the Borrower in accordance with the terms of Section 2.03
and substantially in the form of Exhibit C, or such other form as shall be
approved by the Administrative Agent.

 

“Business Day”
shall mean any day other than a Saturday, Sunday or other day on which banks in
New York City are authorized or required by law to close.

 

“Capital Expenditures”
shall mean, for any period, the aggregate of all expenditures for (a) the
additions to property, plant and equipment and other capital expenditures of
the Borrower, its consolidated Subsidiaries and the Guarantors and their
subsidiaries that are set forth in a consolidated statement of cash flows of
the Borrower (including the Guarantors and their subsidiaries) for such period
prepared in accordance with GAAP and (b) Capital Lease Obligations or
Synthetic Lease Obligations incurred by the Borrower and its consolidated
Subsidiaries and the Guarantors and their subsidiaries during such period, but
excluding in each case (i) any cash proceeds of Asset Sales to the extent
reinvested in productive assets of the type specified in clause (a) above
pursuant to the proviso in the definition of “Net Cash Proceeds” and (ii) any
such expenditure made to restore, replace or rebuild property to the condition
of such property immediately prior to any damage, loss, destruction or
condemnation of such property, to the extent such expenditure is made with
insurance proceeds, condemnation awards or damage recovery proceeds relating to
any such damage, loss, destruction or condemnation.

 

“Capital Lease
Obligations” of any Person shall mean the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the
right to use) real or personal property, or a combination thereof, which
obligations are required to be classified and accounted for as capital leases
on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

 

3

 

“Charter” means
each leasing or hiring of a Vessel, including, without limitation, each
bareboat charter and time charter.

 

“Change
in Law” shall mean (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender
(or, for purposes of Section 2.15, by any lending office of such Lender or
by such Lender’s holding company, if any) with any request, guideline or
directive of any Governmental Authority made or issued after the date of this
Agreement.

 

“City
of Evansville” shall mean the vessel with the name “City of Evansville”, Official Number
1035577, and all related fittings, furnishings, fixtures, equipment and
appurtenances.

 

“Code” shall mean
the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral” shall
mean all the “Collateral” as defined in any Security Document and shall
also include the Mortgaged Properties.

 

“Commitment” shall
mean, with respect to each Lender, the commitment of such Lender to make either
Term Loans or Revolving Loans hereunder as set forth on Schedule 2.01, or in
the Assignment and Acceptance pursuant to which such Lender assumed its
Commitment, as applicable, as the same may be (a) reduced from time to
time pursuant to Section 2.10 and (b) reduced or increased from time
to time pursuant to assignments by or to such Lender pursuant to Section 9.04.
The aggregate amount of the Lenders’ Commitments for all Loans is $150,000,000.

 

“Commitment
Letter” shall mean the Commitment Letter dated as of May 4, 2009 among
Tropicana Entertainment Inc., Icahn Capital LP, as agent and the Lenders party
thereto, as the same shall have been amended, modified and/or otherwise
supplemented from time to time.

 

“Communication”
shall have the meaning assigned to such term in Section 8.09(a).

 

“Confirmation
Order” shall mean the Finding of Facts, Conclusions of Law, and Order
Confirming First Amended Joint Plan of Reorganization of Tropicana
Entertainment, LLC and Certain of Its Debtor Affiliates Under Chapter 11 of the
Bankruptcy Code (together with the exhibits thereto) entered by the Bankruptcy
Court on May 5, 2009 in the Bankruptcy Cases,  Docket No. 2001, as modified by the
Tropicana AC Sale Order and as it may be supplemented, modified and/or amended
from time to time.

 

“Confirmed Delaware Plan” shall mean the First Amended Joint Plan of Reorganization of Tropicana
Entertainment, LLC and Certain of Its Debtor Affiliates Under Chapter 11 of the
Bankruptcy Code (together with the exhibits thereto) filed with the Bankruptcy
Court on November 3, 2009 in the Bankruptcy Cases, Docket No. 2545,
as it may be supplemented, modified and/or amended from time to time.

 

“Consolidated EBITDA”
shall mean, for any period, Consolidated Net Income for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) Consolidated Net Interest Expense for such period, (ii) consolidated
income tax expense for such period (not including any gaming taxes), (iii) all
amounts attributable to depreciation and amortization for such period, (iv) costs
and expenses resulting 

 

4

 

from administrative
expenses paid with respect to the Chapter 11 Cases for professional fees and
expenses, (v) any non-cash charges (including, but not limited to, the
write down of current assets), losses or expenses for such period, (vi) losses
or expenses related to force-majeure
events to the extent such losses or expenses are covered by an effective
insurance policy, (vii) non-cash stock-option based and other equity based
compensation expenses, and (viii) severance expenses and charges related
to the termination of employees and minus (b) without duplication (i) all
cash payments made during such period on account of reserves, restructuring
charges and other non-cash charges added to Consolidated Net Income pursuant to
clause (a)(iv) above in a previous period, (ii) any non-cash gains
for such period and (iii) to the extent included in determining such
Consolidated Net Income, and amounts received in respect of the Tropicana
Garage Insured Claims for such period, all determined on a consolidated basis
in accordance with GAAP.

 

“Consolidated Net
Income” shall mean, for any period, the net income or loss of the Borrower,
the Subsidiaries and the Guarantors for such period determined on a
consolidated basis in accordance with GAAP (adjusted to reflect any charge, tax
or expense incurred or accrued by Tropicana Holdings during such period as
though such charge, tax or expense had been incurred by the Borrower, to the
extent that the Borrower has made or would have be entitled to have made under
the DIP Loan Documents, any payment to or for the account of Tropicana Holdings
in respect thereof); provided, that there shall be excluded (a) the
income of any Subsidiary to the extent that the declaration or payment of
dividends or similar distributions by the Subsidiary of that income is not at
the time permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, statute, rule or governmental regulation
applicable to such Subsidiary, (b) the income or loss of any Person
accrued prior to the date it becomes a subsidiary or is merged into or
consolidated with the Borrower, any Subsidiary or any Guarantor or prior to the
date that such Person’s assets are acquired by the Borrower, any Subsidiary or
any Guarantor, (c) the income of any Person in which any other Person
(other than the Borrower or a wholly owned Subsidiary or any director holding
qualifying shares in accordance with applicable law) has a joint interest to
the extent such net income is subject to restrictions, directly or indirectly,
on the payment of dividends or the making of distributions by such Person,
directly or indirectly, to the Borrower or any Subsidiary (or to an Guarantor
if applicable) and (d) any gains or losses attributable to sales of assets
out of the ordinary course of business or any other extraordinary gains or
losses.  For the avoidance of
doubt, references to the Borrower, the Subsidiaries and the Guarantors in this
definition include any predecessor(s) of the Borrower, any Subsidiary or
any Guarantor, for the purposes of calculating “Consolidated Net Income” during
any period prior to the Effective Date.

 

“Consolidated Net
Interest Expense” shall mean, for any period, (a) the sum of (i) the
interest expense (including imputed interest expense in respect of Capital
Lease Obligations and Synthetic Lease Obligations or any dividends or other
payments made in respect of any Equity Interest) of the Borrower, the
Subsidiaries and the Guarantors  for such period, determined on a consolidated basis in
accordance with GAAP, plus (ii) any interest accrued during such period in
respect of Indebtedness of the Borrower, any Subsidiary or any Guarantor  that is required to be capitalized rather
than included in consolidated interest expense for such period in accordance
with GAAP minus (b) the sum of (i) total interest income of the
Borrower, the Subsidiaries and the Guarantors for such period, in each case
determined in accordance with GAAP plus (ii) non-cash charges related to
the amortization or write-off of debt discount or debt issuance costs and
commissions to the extent included in the interest expense for such period. For
purposes of the 

 

5

 

foregoing, interest
expense shall be determined after giving effect to any net payments made or
received by the Borrower, any Subsidiary or any Guarantor with respect to
interest rate Hedging Agreements.  For
the avoidance of doubt, references to the Borrower, the Subsidiaries and
the Guarantors in this definition include any predecessor(s) of the
Borrower, any Subsidiary or any Guarantor, for the purposes of calculating “Consolidated
Net Interest Expense” during any period prior to the Effective Date.

 

“Control” shall
mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise, and the terms “Controlling”
and “Controlled” shall have meanings correlative thereto.

 

“Credit Event”
shall have the meaning assigned to such term in Section 4.01.

 

“Credit Facilities”
shall mean the Term Loan facility and the Revolving Loan facility provided for
by this Agreement.

 

“Default” shall
mean any event or condition which upon notice, lapse of time or both would
constitute an Event of Default.

 

“Defaulting Lender”
shall mean any Lender that has (a) defaulted in its obligation to make a
Loan required to be made or funded by it hereunder, (b) notified the
Administrative Agent or a Loan Party in writing that it does not intend to
satisfy any such obligation or (c) become insolvent or the assets or
management of which has been taken over by any Governmental Authority.

 

“DIP Loan Documents”
shall mean the DIP Credit Agreement and the DIP Security Documents.

 

“DIP Credit Agreement”
shall mean that certain Senior Secured Super-Priority Debtor in Possession
Credit Agreement, dated as of May 5, 2008, and as amended, modified or
otherwise supplemented from time to time prior to the date hereof, among
Tropicana Entertainment, LLC, as a debtor and a debtor in possession, Tropicana
Entertainment Intermediate Holdings, LLC, as a debtor and a debtor in
possession, CP Laughlin Realty, LLC, as a debtor and a debtor in possession,
JMBS Casino LLC, as a debtor and a debtor in possession, the lenders party
thereto, and The Foothill Group, Inc. (as successor to Silver Point
Finance, LLC), as administrative agent and as collateral agent.

 

“DIP Security
Documents” shall mean the “Security Documents” as defined in the DIP
Agreement.

 

“Disqualification”
shall mean, with respect to any Lender:

 

(a)           the
failure of such Person to file timely (or obtain a waiver) pursuant to
applicable Gaming Laws (i) any application requested of that Person by any
Gaming Authority in connection with any licensing required of that Person as a
Lender or (ii) any required application or other papers in connection with
any determination of the suitability of that Person as a Lender;

 

6

 

(b)           the
withdrawal by such Person (except where requested or permitted by the Gaming
Authority) of any such application or other required papers; or

 

(c)           any
final determination by a Gaming Authority pursuant to applicable Gaming Laws (i) that
such Person is “unsuitable” as a Lender, (ii) that such Person
shall be “disqualified” as a Lender or (iii) denying the issuance
of any license required under applicable Gaming Laws to be held by such Lender.

 

“Disqualified Lender”
shall mean any Defaulting Lender and any Lender subject to Disqualification.

 

“dollars” or “$”
shall mean lawful money of the United States of America.

 

“Domestic Subsidiaries”
shall mean all subsidiaries of the Borrower or the Guarantors that are
incorporated or organized under the laws of the United States of America, any
State thereof or the District of Columbia.

 

“Effective
Date” shall have the meaning assigned to such term in Section 9.22.

 

 “Eligible Assignee” shall mean (a) a
Lender, (b) an Affiliate of a Lender, (c) a Related Fund, and (d) any
other Person (other than a natural person) approved by the Administrative Agent
and, except upon the occurrence and during the continuance of an Event of
Default, the Borrower.

 

“Environmental Laws”
shall mean all applicable current and future Federal, state and local laws
(including common law), regulations, rules, ordinances, codes, and any legally
binding decrees, judgments, directives and orders (including consent orders),
in each case, relating to protection of the environment or natural resources,
human health and safety as it relates to environmental protection, the
presence, Release of, or exposure to, Hazardous Materials, or the generation,
manufacture, processing, distribution, use, treatment, storage, transport,
recycling or handling of, or the arrangement for such activities with respect
to, Hazardous Materials.

 

“Environmental
Liability” shall mean all liabilities, obligations, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and
costs (including administrative oversight costs, natural resource damages and
remediation costs), whether contingent or otherwise, arising out of or relating
to (a) non-compliance with any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous
Materials, (c) exposure to any Hazardous Materials, (d) the Release
of any Hazardous Materials or (e) any contract, agreement or other written
consensual arrangement pursuant to which liability is assumed or imposed with respect
to any of the foregoing.

 

“Equity Interests”
shall mean shares of capital stock, partnership interests, membership interests
in a limited liability company, beneficial interests in a trust or other equity
interests in any Person, and any option, warrant or other right entitling the
holder thereof to purchase or otherwise acquire any such equity interest.

 

“Equity Issuance”
shall mean any issuance or sale by the Borrower, any Subsidiary or any
Guarantor and their respective subsidiaries of any Equity Interests of the
Borrower, an 

 

7

 

Guarantor or any such
subsidiary, as applicable, except in each case for (a) any issuance or
sale to the Borrower, any Subsidiary or any Guarantor, (b) any issuance of
directors’ qualifying shares and (c) sales or issuances of common stock of
the Borrower to directors, management, consultants or any other employee of the
Borrower, any Subsidiary or any Guarantor under any employee stock option or
stock purchase plan or employee benefit plan or similar plan in existence from
time to time.

 

“ERISA” shall mean
the Employee Retirement Income Security Act of 1974, as the same may be amended
from time to time.

 

“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated) that, together
with the Borrower, is treated as a single employer under Section 414(b) or
(c) of the Code, or solely for purposes of Section 302 of ERISA and Section 412
of the Code, is treated as a single employer under Section 414 of the
Code.

 

“ERISA Event”
shall mean (a) any “reportable event”, as defined in Section 4043
of ERISA or the regulations issued thereunder, with respect to a Plan (other
than an event for which the 30-day notice period is waived), (b) the
existence with respect to any Plan of an “accumulated funding deficiency”
(as defined in Section 412 of the Code or Section 302 of ERISA) and,
on and after the effectiveness of the Pension Act, any failure by any Plan to
satisfy the minimum funding standards (within the meaning of Section 412
of the Code or Section 302 of ERISA) applicable to such Plan, whether or
not waived, (c) the filing pursuant to Section 412 of the Code or Section 303
of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan, (d) the incurrence by the Borrower or any of its
ERISA Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Plan or the withdrawal or partial withdrawal of the Borrower
or any of its ERISA Affiliates from any Plan or Multiemployer Plan, (e) on
and after the effectiveness of the Pension Act, a determination that any Plan
is, or is expected to be, in “at-risk” status (within the meaning of Section 303(i)(4)(A) of
ERISA or Section 430(i)(4)(A) of the Code), the receipt by the
Borrower or any of its ERISA Affiliates from the PBGC or a plan administrator
of any notice relating to the intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan, (g) the adoption of any
amendment to a Plan that would require the provision of security pursuant to Section 401(a)(29)
of the Code or Section 307 of ERISA, (h) the receipt by the Borrower
or any of its ERISA Affiliates of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any of its ERISA Affiliates of any
notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA or (i) the
occurrence of a “prohibited transaction” with respect to which the
Borrower or any of the Subsidiaries is a “disqualified person” (within
the meaning of Section 4975 of the Code) or with respect to which the
Borrower, any such Subsidiary or any Guarantor could otherwise be liable.

 

“Event of Default”
shall have the meaning assigned to such term in ARTICLE VII.

 

“Excluded Taxes”
shall mean, with respect to the Administrative Agent, any Lender or any other
recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured
by) its net income or net profits (or imposed in lieu of net income taxes) by
the United States of America, or by the jurisdiction under the laws of which
such recipient is organized or in which its principal office is 

 

8

 

located or, in the case
of any Lender, in which its applicable lending office is located, or in any
other jurisdiction in which the Administrative Agent or such Lender is engaged
in business (other than any business arising solely from the Administrative
Agent or Lender having executed, delivered or performed its obligations, or its
rights hereunder), (b) any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction
described in clause (a) above, (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by the Borrower under Section 2.22(a)),
any withholding tax that is imposed on amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office) or is attributable to such Foreign Lender’s
failure to comply with Section 2.21(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new lending office (or assignment), to receive additional
amounts from the Borrower with respect to such withholding tax pursuant to Section 2.21(a) and
(d) any backup withholding tax required under law to be withheld
from amounts payable to a Lender that has failed to comply with Section 2.21(e).

 

 “Fees” shall mean the Revolver Fee, the
Administrative Agent Fee and the Unused Line Fee.

 

“Financial Officer”
of any Person shall mean the chief financial officer, principal accounting
officer, vice president of finance, treasurer or controller of such Person.

 

“Fixed Charge Coverage
Ratio” shall mean, for any period, the ratio of (i) Consolidated
EBITDA for such period to (ii) Fixed Charges for such period.

 

“Fixed Charges”
shall mean, for any period, the sum (without duplication) of (i) Consolidated
Net Interest Expense for such period, (ii) scheduled payments of principal
made during such period on account of Indebtedness of the Borrower or any of
its Subsidiaries (including scheduled principal payments, if any, in respect of
Term Loans), (iii) the aggregate amount actually paid by the Borrower and
its Subsidiaries during such period on account of Capital Expenditures (other than Capital
Expenditures, to the extent financed with equity proceeds, asset sale proceeds,
insurance proceeds or Indebtedness) and (iv) the amount of all cash
payments made by the Borrower and its Subsidiaries in respect of income taxes
or income tax liabilities during such period (net of cash tax refunds received
by the Borrower and its Subsidiaries during such period and excluding taxes
related to asset sales not in the ordinary course of business). 
For the avoidance of doubt, references to the Borrower or the
Subsidiaries in this definition include any predecessor(s) of the Borrower
or any Subsidiary for the purposes of calculating “Fixed Charges” during any
period prior to the Effective Date.

 

“Foreign Lender”
shall mean any Lender that is organized under the laws of a jurisdiction other
than that in which the Borrower is located. For purposes of this definition,
the United States of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

 

“Full Payment”
shall mean, with respect to any Obligations, (i) the full and indefeasible
cash payment thereof, including any interest, fees and other charges; and (ii) a
release of any Indemnitee’ claims of the Loan Parties against the Agents and
the Lenders arising on or before the payment date.

 

9

 

“GAAP” shall mean,
subject to the limitations of application set out in Section 1.02, United
States generally accepted accounting principles applied on a consistent basis.

 

“Gaming Authority”
shall mean, collectively, (a) the Nevada Gaming Commission, (b) the
Nevada State Gaming Control Board, (c) the Clark County (Nevada) Liquor
and Gaming License Board and the Douglas County (Nevada) Liquor License Board,
and Gaming License Board, (d) the Mississippi Gaming Commission, (e) the
Louisiana Gaming Control Board, (f) the New Jersey Division of Gaming
Enforcement, (g) the NJ Commission, (h) the Indiana Gaming Commission
and (i) any other applicable Governmental Authority that holds regulatory,
licensing or permit authority over gaming or gaming activities that now or
hereinafter has jurisdiction over all or any portion of the gaming activities
of the Borrower, the Subsidiaries or the Guarantors.

 

“Gaming Laws”
shall mean all applicable provisions of all constitutions, treaties, statutes
and laws pursuant to which any Gaming Authority possesses regulatory, licensing
or permit authority over gambling, gaming or casino activities conducted by the
Borrower, the Subsidiaries or the Guarantors within their respective
jurisdictions and all rules, regulations, ordinances, approvals, orders,
decisions, judgments, awards and decrees of any Gaming Authority.

 

“Governmental
Authority” shall mean any Federal, state, local or foreign court or governmental
agency, authority, instrumentality, regulatory body, board or commission.

 

 “Greenville” shall mean Greenville
Riverboat, LLC, a Mississippi limited liability company, or any successor
thereto.

 

“Guarantee” of or
by any Person shall mean any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation of any other Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (a) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other
obligation or to purchase (or to advance or supply funds for the purchase of)
any security for the payment of such Indebtedness or other obligation, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment of such
Indebtedness or other obligation or (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
other obligation; provided, however, that the term “Guarantee”
shall not include endorsements for collection or deposit in the ordinary course
of business.

 

“Guarantee and
Collateral Agreement” shall mean the Guarantee and Collateral Agreement,
substantially in the form of Exhibit D, among the Borrower, the
Subsidiaries and the Guarantors party thereto and the Collateral Agent for the
benefit of the Secured Parties.

 

“Guarantors” shall
mean each Subsidiary and Guarantor listed on Schedule 1.01(a), the Additional
Guarantors and each other subsidiary that is or becomes a party to the Guarantee
and Collateral Agreement or otherwise provides a guarantee in respect of the
Obligations.

 

10

 

“Hazardous Materials”
shall mean (a) any petroleum products or byproducts and (b) any
chemical, material, substance or waste defined or characterized as toxic,
hazardous, a pollutant, or a contaminant or words of similar meaning that is
prohibited, limited or regulated by or pursuant to any Environmental Law.

 

“Hedging Agreement”
shall mean any interest rate protection agreement, foreign currency exchange
agreement, commodity price protection agreement or other interest or currency
exchange rate or commodity price hedging arrangement.

 

“Icahn
Group” shall mean (i) Carl C. Icahn, (ii) his spouse and members
of his immediate family (including siblings, children, grandchildren and
children and grandchildren by adoption), (iii) any Affiliate Controlled by
any the foregoing, (iv) in the event of incompetence or death of any of
the persons described in paragraphs (i) and (ii) hereof, such person’s
estate, executor, administrator, committee or other personal representative, in
each case who at the particular date will beneficially own or have the right to
acquire, directly or indirectly Equity Interests of the Borrower or (v) any
trusts for their respective benefit, or any trust for the benefit of any such
trust.

 

“Icahn
Lender” means each of Icahn Partners LP, Icahn Partners Master Fund LP,
Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP, and
each of their respective successors and transferees.

 

“Indebtedness” of
any Person shall mean, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person upon which interest
charges are customarily paid, (d) all obligations of such Person under
conditional sale or other title retention agreements relating to property or
assets purchased by such Person, (e) all obligations of such Person issued
or assumed as the deferred purchase price of property or services (excluding
trade accounts payable and accrued obligations incurred in the ordinary course
of business), (f) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien on property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed (notwithstanding that
the rights and remedies of the seller or lender under such agreement in an
event of default may be limited to repossession or sale of such property, in
which case the lesser of the amount of such obligation and the fair market
value of such property shall constitute “Indebtedness”), (g) all
Guarantees by such Person of Indebtedness of others, (h) all Capital Lease
Obligations and Synthetic Lease Obligations of such Person, (i) all
obligations of such Person as an account party in respect of letters of credit
and (j) all obligations of such Person to purchase, redeem, retire,
defease or otherwise acquire for value any Equity Interest. The Indebtedness of
any Person shall include the Indebtedness of any partnership in which such
Person is a general partner.

 

“Indemnified Taxes”
shall mean Taxes other than Excluded Taxes.

 

“Indemnitee” shall
have the meaning assigned to such term in Section 9.05(b).

 

“Interest Payment Date”
shall mean the last day of each calendar quarter.

 

11

 

“Lenders” shall
mean (a) the Persons listed on Schedule 2.01 (other than any such Person
that has ceased to be a party hereto pursuant to an Assignment and Acceptance)
and (b) any Person that has become a party hereto pursuant to an
Assignment and Acceptance.

 

“Leverage Ratio”
shall mean, on any date, the ratio of Total Debt on such date to Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended
on or prior to such date.

 

“License Revocation”
shall mean the revocation, failure to renew or suspension of, or the
appointment of a receiver, supervisor or similar official with respect to, any
casino, gambling or gaming license issued by any Gaming Authority covering any
casino or gaming facility of the Borrower, the Subsidiaries or the Guarantors.

 

“Lien” shall mean,
with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially
the same economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

 

“Lighthouse Point
Casino” shall mean the vessel “Lighthouse Point Casino”, Official
Number 1022782 (Hull No. 310), in Greenville, Mississippi.

 

“Loan Documents”
shall mean this Agreement, the Security Documents, the Confirmation Order, the
promissory notes, if any, executed and delivered pursuant to Section 2.05(e) and
any other document designated as a Loan Document by the Borrower and the
Administrative Agent.

 

“Loan Parties”
shall mean the Borrower and the Guarantors.

 

“Loans” shall mean
the Term Loans and the Revolving Loans.

 

“Margin Stock”
shall have the meaning assigned to such term in Regulation U.

 

“Material Adverse
Effect” shall mean (a) a material adverse effect on the business,
assets, operations, condition (financial or otherwise), operating results or
prospects of the Borrower and the Subsidiaries, taken as a whole, (b) a
material impairment of the ability of the Borrower or any other Loan Party to
perform any of its obligations under any Loan Document to which it is a party, (c) a
material impairment of the rights and remedies of or benefits available to the
Lenders under any Loan Document or (d) the perfection or priority of the
Liens granted pursuant to this Loan Documents.

 

“Material Indebtedness”
shall mean (a) Indebtedness permitted under Section 6.01(a) in
an aggregate principal amount exceeding $5,000,000 and (b) other
Indebtedness (other than the Loans), or obligations in respect of one or more
Hedging Agreements, of any one or more of the Borrower, any Subsidiary or any
Guarantor in an aggregate principal amount exceeding $2,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations of
the Borrower, any Subsidiary or any Guarantor in respect of any Hedging
Agreement at any time shall be the maximum aggregate amount (giving effect to
any netting 

 

12

 

agreements) that the
Borrower, such Subsidiary or such Guarantor would be required to pay if such
Hedging Agreement were terminated at such time.

 

“Maturity Date”
shall mean the date which is the earlier of (a) the third anniversary of
the Effective Date and (b) the date on which all Loans become due and
payable in full hereunder.

 

“Moody’s” shall
mean Moody’s Investors Service, Inc., or any successor thereto.

 

“Mortgages” shall
mean the mortgages, deeds of trust, leasehold mortgages, assignments of leases
and rents, modifications and other security documents delivered pursuant to
clause (i) of Section 4.02(j) or pursuant to Section 5.14,
each substantially in the form of Exhibit F.

 

“Mortgaged Properties”
shall mean the owned real properties and leasehold and subleasehold interests
of the Loan Parties specified on Schedule 1.01(b), and shall include each other
parcel of real property and improvements thereto with respect to which a
mortgage is granted pursuant to the Guarantee and Collateral Agreement.

 

“Multiemployer Plan”
shall mean a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

 

“Net Cash Proceeds”
shall mean (a) with respect to any Asset Sale, the cash proceeds
(including cash proceeds subsequently received (as and when received) in
respect of non-cash consideration initially received and valued at the initial
principal amount thereof in the case of non-cash proceeds consisting of notes
or other debt securities and valued at fair market value at the time of such
Asset Sale in the case of other non-cash proceeds), net of (i) selling
expenses (including broker’s fees or commissions, accountants’ fees, investment
banking fees, consulting fees, reasonable and documented legal fees and any
other customary reasonable and documented fees and out-of-pocket expenses
actually incurred in connection therewith, transfer and similar taxes), (ii) amounts
provided as a reserve, in accordance with GAAP, against any liabilities under
any indemnification obligation or purchase price adjustment associated with
such Asset Sale (provided that, to the extent and at the time any such amounts
are released from such reserve, such amounts shall constitute Net Cash
Proceeds) and (iii) the principal amount, premium or penalty, if any,
interest and other amounts on any Indebtedness for borrowed money which is
secured by the asset in such Asset Sale sold and which is required to be repaid
with such proceeds (other than any such Indebtedness assumed by the purchaser
of such asset); provided, however, that, (A) with
respect to cash proceeds received on account of a casualty or condemnation, if
no Default or Event of Default shall have occurred and shall be continuing at
the time of such receipt or at the proposed time of the application of such
proceeds, such proceeds shall not constitute Net Cash Proceeds to the extent
reinvested or committed to be reinvested in productive assets of a kind then
used or usable in the business of the Borrower and the Guarantors within 180
days of receipt of such proceeds (provided that, to the extent of any
commitment to reinvest, the Borrower or the Guarantors, as applicable, shall
actually have reinvested such proceeds within 365 days following the date upon
which such commitment to reinvest was made), after which time such proceeds to
the extent not so reinvested or committed to be reinvested, as the case may be,
shall be deemed to be Net Cash Proceeds and (B) with respect to cash
proceeds received on account of any Asset Sale (other than on account of a
casualty or condemnation), if no Default or Event of Default shall have
occurred and shall be continuing at the time of such receipt or at the proposed
time of the application of such proceeds, 

 

13

 

such proceeds shall not
constitute Net Cash Proceeds to the extent reinvested or committed to be
reinvested in the business of the Borrower and the Guarantors within 180 days
of receipt of such proceeds (provided that, to the extent of any
commitment to reinvest, the Borrower or the Guarantors, as applicable, shall
actually have reinvested such proceeds within 365 days following the date upon
which such commitment to reinvest was made), after which time such proceeds to
the extent not so reinvested or committed to be reinvested, as the case may be,
shall be deemed to be Net Cash Proceeds and (b) with respect to any
issuance or incurrence of Indebtedness for borrowed money or any Equity
Issuance, the cash proceeds thereof, net of all attorneys’ fees, consulting fees,
investment banking fees, taxes and other customary fees, underwriting
discounts, commissions, costs and other expenses incurred in connection
therewith.

 

“NJ Commission”
shall mean the State of New Jersey Casino Control Commission.

 

“Obligations”
shall mean the Loans and all other amounts and obligations owing by any Loan
Party to the Administrative Agent, any Lender, any Affiliate of any of them or
any Indemnitee, of every type and description (whether by reason of an
extension of credit, loan, guaranty, indemnification or otherwise), present or
future, arising under this Agreement, any other Loan Document, whether direct
or indirect (including those acquired by assignment), absolute or contingent,
due or to become due, now existing or hereafter arising and however acquired
and whether or not evidenced by any note, guaranty or other instrument or for
the payment of money, including all cash management and other fees, interest,
charges, expenses, attorneys’ fees and disbursements and other sums chargeable
to any Loan Party under this Agreement and any other Loan Document

 

 “Other Taxes” shall mean any and all
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies and all liabilities with respect thereto
arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

 

“PBGC” shall mean
the Pension Benefit Guaranty Corporation referred to and defined in ERISA.

 

“Pension Act”
shall mean the Pension Protection Act of 2006, as amended.

 

“Perfection
Certificate” shall mean the Perfection Certificate substantially in the
form of Exhibit B to the Guarantee and Collateral Agreement and delivered
in accordance with Section 5.14(i)(i).

 

“Permitted Business”
shall mean the business currently conducted by the Borrower, the Subsidiaries
and the Guarantors, businesses substantially similar to the business currently
conducted by the Borrower, the Subsidiaries or the Guarantors, or any business
or activity that is reasonably related, ancillary or complementary thereto or a
reasonable extension, development or expansion thereof.

 

“Permitted Investments”
shall mean:

 

(a)                                  direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency 

 

14

 

thereof to the extent such obligations
are backed by the full faith and credit of the United States of America), in
each case maturing within one year from the date of acquisition thereof;

 

(b)                                 investments in commercial paper maturing within 365 days
from the date of acquisition thereof and having, at such date of acquisition, a
rating of at least A-1 by S&P or P-1 from Moody’s;

 

(c)                                  investments in certificates of deposit, banker’s
acceptances, securities backed by standby letters of credit, time deposits,
Eurodollar time deposits or overnight bank deposits maturing within one year
from the date of acquisition thereof issued or guaranteed by or placed with,
and money market deposit accounts issued or offered by, the Administrative
Agent or any domestic office of any commercial bank organized under the laws of
the United States of America or any State thereof that has a combined capital
and surplus and undivided profits of not less than $500,000,000;

 

(d)                                 fully collateralized repurchase agreements with a term of
not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria of clause (c) above;
and

 

(e)                                  investments in “money market funds” within the
meaning of Rule 2a-7 of the Investment Company Act of 1940, as amended,
substantially all of whose assets are invested in investments of the type described
in clauses (a) through (d) above or in the form of cash equivalents
(or foreign cash equivalents) or short term marketable debt securities.

 

“Permitted Tax
Distributions” shall mean any dividend, payment or
distribution to the Borrower or any Subsidiary to pay Taxes owed by the
Borrower or any Subsidiary.

 

“Person” shall
mean any natural person, corporation, business trust, joint venture,
association, company, limited liability company, partnership, Governmental
Authority or other entity.

 

“Plan” shall mean
any employee pension benefit plan (other than a Multiemployer Plan) subject to
the provisions of Title IV of ERISA or Section 412 of the Code or Section 307
of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or,
if such plan were terminated, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Plan
of Reorganization” shall mean the Confirmed Delaware Plan
as supplemented, modified and/or amended: (i) to include the transactions,
terms and conditions of and contemplated by this Agreement (and ancillary
documents entered into in connection with this Agreement), and (ii) by
this Agreement (and ancillary documents entered into in connection with this
Agreement) and the Plan Modification Order; provided, that the terms and
provisions of the Delaware Plan of Reorganization shall be consistent with this
Agreement in all material respects; and, provided, further,
that no such term or condition not provided for in this Agreement may be included
in the Delaware Plan of Reorganization if such term or condition would be
reasonably 

 

15

 

likely to (x) materially
and adversely affect the Company or the Company Subsidiary or (y) delay
the consummation of the transactions contemplated by this Agreement to a date
later than the Outside Date.

 

“Platform” shall
have the meaning assigned to such term in Section 8.09(b).

 

“Prepayment Premium”
shall mean at any date, (i) with respect to any portion of any Term Loan
that is repaid or prepaid (whether voluntarily, mandatorily (to the extent
required pursuant to Section 2.12) or by way of acceleration) on such
date, and (ii) with respect to any portion of the Revolving Loan that is
prepaid on such date if at the time of such prepayment the Commitment relating
to the Revolving Loan is terminated, an amount equal to 2%.

 

“Pro Rata Share”
means with respect to each Lender, the percentage obtained by dividing (a) the
outstanding principal amount of the Loans and unused Commitment of such Lender
(or such Lender’s Commitment if no Loan is outstanding), by (b) the
aggregate outstanding principal amount of the Loans of all Lenders (or all
Lender’s Commitments, including the Revolving Commitment, if no Loan is
outstanding).

 

“Purchase
Agreement” shall mean the Amended and Restated Purchase Agreement, dated as
of November 20, 2009, by and among Adamar of New Jersey, Inc.,
Manchester Mall, Inc., The Honorable Gary S. Stein, Tropicana
Entertainment, LLC, Ramada New Jersey Holdings Corporation, Atlantic-Deauville, Inc.,
Adamar Garage Corporation, Ramada New Jersey, Inc., Tropicana
Entertainment Inc., Tropicana Atlantic City Corp., Tropicana AC Sub Corp., and
Credit Suisse, as the same may be further amended, restated, modified and/or
otherwise supplemented from time to time.

 

“Register” shall
have the meaning assigned to such term in Section 9.04(d).

 

“Regulation T”
shall mean Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Regulation U”
shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Regulation X”
shall mean Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

 

“Related Fund”
shall mean, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised
by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

 

“Related Parties”
shall mean, with respect to any specified Person, such Person’s Affiliates and
the respective directors, trustees, officers, employees, agents and advisors of
such Person and such Person’s Affiliates.

 

“Release” shall
mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through
the environment or within or upon any building, structure, facility or fixture.

 

16

 

“Required Lenders”
shall mean, at any time, (a) Lenders having Loans and Commitments
representing more than 50% of the sum of all Loans outstanding and Commitments
(including the Revolving Commitments) at such time; provided that any
Loans and unused Commitments of any Defaulting Lender shall be disregarded in
the determination of the Administrative Agent.

 

“Responsible Officer”
of any Person shall mean any executive officer or Financial Officer of such
Person and any other officer or similar official thereof responsible for the
administration of the obligations of such Person in respect of this Agreement.

 

“Restricted
Indebtedness” shall mean Indebtedness of the Borrower, any Subsidiary or
any Guarantor, the payment, prepayment, repurchase or defeasance of which is
restricted under Section 6.08(b).

 

“Restricted
Payment” shall mean any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the
Borrower, any Subsidiary or any Guarantor, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit,
on account of the purchase, redemption, retirement, acquisition, cancellation
or termination of any Equity Interests in the Borrower, any Subsidiary or any
Guarantor.

 

“Revolver
Fee” shall have the meaning assigned to such term in Section 2.06(a).

 

“Revolving
Borrowing” shall mean a Borrowing comprised of Revolving Loans.

 

“Revolving
Commitment” shall mean with respect to each Lender, the commitment of such Lender to make
Revolving Loans hereunder as set forth on Schedule 2.01, or in the Assignment
and Acceptance pursuant to which such Lender assumed its Revolving Commitment,
as applicable, as the same may be (a) reduced from time to time pursuant
to Section 2.10 and (b) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 9.04. The
aggregate amount of the Lenders’ Commitments for Revolving Loans is
$20,000,000.

 

“Revolving
Lender” shall mean a Lender with a Revolving Commitment or an outstanding
Revolving Loan.

 

“Revolving
Loans” shall mean the revolving loans made by the Lenders to the Borrower
pursuant to Section 2.01(b).

 

“Secured Parties”
shall mean from time to time the Lenders, the Administrative Agent, the
Collateral Agent, any other holder of any Obligation and their successors and
assigns.

 

“Security Documents”
shall mean the Guarantee and Collateral Agreement, the Ship Mortgages, the
Vessel Security Agreements, the Assignments of Earnings, Charters and
Insurances and each of the security agreements, mortgages and other instruments
and documents executed and delivered pursuant to any of the foregoing or pursuant
to Section 5.14, as may be applicable.

 

“Ship Mortgage”
shall mean collectively, (a) a preferred ship mortgage in form and
substance acceptable to the Administrative Agent, executed in favor of the
Collateral Agent 

 

17

 

granting a first priority
Lien upon the vessel Lighthouse Point Casino, (b) a preferred ship
mortgage in form and substance acceptable to the Administrative Agent, executed
in favor of the Collateral Agent granting a first priority Lien upon the vessel
Argosy III, (c) a preferred ship mortgage in form and substance acceptable
to the Administrative Agent, executed in favor of the Collateral Agent granting
a first priority Lien upon the vessel Bayou Caddy’s Jubilee Casino and related
support barge B-527, (d) a preferred ship mortgage in form and substance
acceptable to the Administrative Agent, executed in favor of the Collateral
Agent granting a first priority Lien upon the vessel City of Evansville, (e) a
preferred ship mortgage in form and substance acceptable to the Administrative
Agent, executed in favor of the Collateral Agent granting a first priority Lien
upon the vessel Star of Vicksburg and (f) each other similar agreement
which may hereafter be executed by the Borrower in favor of the Collateral
Agent (including any such ship mortgage executed with respect to any other
vessel used in connection with any related gaming operations), each
substantially in the form of Exhibit E.

 

“Ship Mortgage Act”
shall have the meaning assigned to such term in Section 3.18(d).

 

“S&P” shall
mean Standard & Poor’s Ratings Service, or any successor thereto.

 

“subsidiary” shall
mean, with respect to any Person (herein referred to as the “parent”),
any corporation, partnership, limited liability company, association or other
business entity of which securities or other ownership interests representing
more than 50% of the equity or more than 50% of the ordinary voting power or
more than 50% of the general partnership interests are, at the time any
determination is being made, owned, Controlled or held.

 

“Subsidiary” shall
mean any subsidiary of the Borrower.

 

“Synthetic Lease”
shall mean, as to any Person, any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal
or mixed) (a) that is accounted for as an operating lease under GAAP and (b) in
respect of which the lessee retains or obtains ownership of the property so
leased for U.S. federal income tax purposes, other than any such lease under
which such Person is the lessor.

 

“Synthetic Lease
Obligations” shall mean, as to any Person, an amount equal to the
capitalized amount of the remaining lease payments under any Synthetic Lease
that would appear on a balance sheet of such Person in accordance with GAAP if
such obligations were accounted for as Capital Lease Obligations.

 

“Synthetic Purchase
Agreement” shall mean any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower, any Subsidiary or any
Guarantor is or may become obligated to make (a) any payment in connection
with a purchase by any third party from a Person other than the Borrower, any
Subsidiary or any Guarantor of any Equity Interest or Restricted Indebtedness
or (b) any payment (other than on account of a permitted purchase by it of
any Equity Interest or Restricted Indebtedness) the amount of which is
determined by reference to the price or value at any time of any Equity
Interest or Restricted Indebtedness; provided that no phantom stock or
similar plan providing for payments only to current or former directors,
officers or employees of the Borrower, the Subsidiaries or the Guarantors (or
to their heirs or estates) shall be deemed to be a Synthetic Purchase
Agreement.

 

18

 

“Taxes” shall mean
any and all present or future taxes, levies, imposts, duties, deductions,
charges or withholdings and all liabilities with respect thereto imposed by any
Governmental Authority.

 

“Term
Borrowing” shall mean a Borrowing comprised of Term Loans.

 

“Term
Commitment” shall mean with respect to each Lender, the commitment of such Lender to make Term
Loans hereunder as set forth on Schedule 2.01, or in the Assignment and
Acceptance pursuant to which such Lender assumed its Term Commitment, as
applicable, as the same may be reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04. The
aggregate amount of the Lenders’ Term Commitments for Term Loans is
$130,000,000.

 

“Term Lender”
shall mean a Lender with a Term Commitment or an outstanding Term Loan.

 

“Term Loans” shall
mean the term loans made by the Lenders to the Borrower on the Effective Date
pursuant to Section 2.01; provided that any such Term Loan, when funded,
shall be funded at an original issue discount of 7%.

 

“Total Commitment”
shall mean, at any time, the aggregate of all Lenders’ Commitments.

 

“Total Debt” shall
mean, at any time, the Indebtedness of the Borrower and the Subsidiaries at
such time (excluding Indebtedness of the type described in clause (i) of
the definition of such term, except to the extent of any unremimbursed drawings
thereunder, and except for Indebtedness permitted by Section 6.01 (c), (e) or
(f)).

 

“Tropicana
AC Sale Order” shall mean the Order (A) Authorizing the Debtors to
Enter into Amended and Restated Purchase Agreement for the Sale of the
Tropicana Atlantic City Hotel and Casino and the Debtors’ Related Assets Free
and Clear of All Liens, Claims, Encumbrances and Interests; (B) Granting
the Debtors Authority to Consummate the Transactions Contemplated in the
Amended and Restated Purchase Agreement; (C) Approving Corresponding
Immaterial Modifications to the First Amended Joint Plan of Reorganization of
Tropicana Entertainment, LLC and Certain of Its Debtor Affiliates Under Chapter
11 of the Bankruptcy Code; and (D) Granting Other Related Relief (and
exhibits thereto) entered by the Bankruptcy Court on November 4, 2009 in
the Bankruptcy Cases,  Docket No. 2549,
as it may be supplemented, modified and/or amended from time to time.

 

“Tropicana
Garage Insured Claims” shall mean any insurance payments in respect of (i) the
“completed value builders risk” insurance policy issued by Zurich American
Insurance Company or (ii) insurance policies covering business
interruption at the Tropicana Casino and Resort in Atlantic City, New Jersey,
issued by Lexington Insurance Company, U.S. Fire Insurance Company, Westchester
Surplus Lines Insurance Company, Essex Insurance Company, certain underwriters
at Lloyd’s, London, Hartford Insurance Company, Zurich American Insurance
Company or any other insurance company, in each case relating to the collapse
of a portion of a parking garage under construction at the Tropicana Casino and
Resort in Atlantic City, New Jersey, on October 30, 2003.

 

19

 

 “Tropicana Holdings” shall mean
Tropicana Intermediate Holdings, LLC, a Delaware limited liability company, as
in existence prior to the date hereof.

 

“Unused Line Fee”
shall have the meaning assigned to such term in Section 2.06(c).

 

“USA PATRIOT Act”
shall mean The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)).

 

“Vessel” shall
have the meaning assigned to such term in Section 3.20.

 

“Vessel Security
Agreement” shall refer to each vessel security agreement, in form and
substance acceptable to the Administrative Agent, entered into in connection
with each Ship Mortgage and creating a security interest in each vessel under
the UCC in the event any such vessel covered by a Ship Mortgage is determined
to not be a “vessel” as required therein.

 

“Warrants” means
the warrants substantially in the form of Exhibit G.

 

 “wholly owned Subsidiary” of any Person
shall mean a subsidiary of such Person of which securities (except for
directors’ qualifying shares) or other ownership interests representing 100% of
the Equity Interests are, at the time any determination is being made, owned,
Controlled or held by such Person or one or more wholly owned Subsidiaries of
such Person or by such Person and one or more wholly owned Subsidiaries of such
Person.

 

“Withdrawal Liability”
shall mean liability to a Multiemployer Plan as a result of a complete or
partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I
of Subtitle E of Title IV of ERISA.

 

1.02.       Terms Generally.  The definitions in Section 1.01 shall
apply equally to both the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”. The word “will” shall be construed to have the same
meaning and effect as the word “shall”; and the words “asset” and
“property” shall be construed as having the same meaning and effect and
to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights. All references herein
to Articles, Sections, Exhibits and Schedules shall be deemed references to
Articles and Sections of, and Exhibits and Schedules to, this Agreement unless
the context shall otherwise require. Except as otherwise expressly provided
herein, (a) any reference in this Agreement to any Loan Document shall
mean such document as amended, restated, supplemented or otherwise modified
from time to time and (b) all terms of an accounting or financial nature
shall be construed in accordance with GAAP, as in effect from time to time; provided,
however, that if the Borrower notifies the Administrative Agent that the
Borrower wishes to amend any covenant in ARTICLE VI or any related definition
to eliminate the effect of any change in GAAP occurring after the date of this
Agreement on the operation of such covenant (or if the Administrative Agent
notifies the Borrower that the Required Lenders wish to amend ARTICLE VI or any
related definition for such purpose), then the Borrower’s compliance with such
covenant shall be determined on the basis of GAAP in effect immediately

 

20

 

before the relevant change
in GAAP became effective, until either such notice is withdrawn or such
covenant is amended in a manner satisfactory to the Borrower and the Required
Lenders.

 

ARTICLE II.

The Credits

 

2.01.       Commitments.  Subject to the terms and conditions and
relying upon the representations and warranties herein set forth, as of the
date hereof:

 

(a)           each
Term Lender agrees, severally and not jointly, to make a Term Loan to the
Borrower on the Effective Date in a principal amount not to exceed its Term
Commitment. Amounts paid or prepaid in respect of Term Loans may not be
reborrowed.

 

(b)           each
Revolving Lender agrees to make Revolving Loans to the Borrower from time to
time from the period commencing on the Effective Date and ending 45 days prior
to the third anniversary of the Effective Date,  in
an aggregate amount at any time outstanding not to exceed its Revolving
Commitment.

 

Within the limits set forth in clause (b) of
the preceding sentence and subject to the terms, conditions and limitations set
forth herein, the Borrower may borrow, pay or prepay and reborrow Revolving
Loans.  Amounts paid or prepaid in
respect of Term Loans may not be reborrowed.

 

2.02.       Loans.

 

(a)           Each
Loan shall be made as part of a Borrowing consisting of Loans made by the
Lenders ratably in accordance with their applicable Commitments; provided,
however, that the failure of any Lender to make any Loan shall not in itself
relieve any other Lender of its obligation to lend hereunder (it being
understood, however, that no Lender shall be responsible for the failure of any
other Lender to make any Loan required to be made by such other Lender).

 

(b)           Each
Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds to such account at such
bank as the Administrative Agent may designate not later than 12:00 p.m.
(noon), New York City time, and the Administrative Agent shall promptly credit
the amounts so received to an account designated by the Borrower in the
Borrowing Request or, if a Borrowing shall not occur on such date because any
condition precedent herein specified shall not have been met, return the
amounts so received to the respective Lenders.

 

(c)           Unless
the Administrative Agent shall have received notice from a Lender prior to the
date of any Borrowing that such Lender will not make available to the
Administrative Agent such Lender’s portion of such Borrowing, the
Administrative Agent may assume that such Lender has made such portion
available to the Administrative Agent on the date of such Borrowing in
accordance with Section 2.02(b) and the Administrative Agent may, in
reliance 

 

21

 

upon such assumption, make available to
the Borrower on such date a corresponding amount. If the Administrative Agent
shall have so made funds available then, to the extent that such Lender shall
not have made such portion available to the Administrative Agent, such Lender
agrees to repay to the Administrative Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date
such amount is made available to the Borrower to but excluding the date such
amount is repaid to the Administrative Agent at a rate determined by the
Administrative Agent to represent its cost of overnight or short-term funds
(which determination shall be conclusive absent manifest error). If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
shall constitute such Lender’s Loan as part of such Borrowing for purposes of
this Agreement.  Nothing in this Section 2.02(c) shall
be deemed to relieve any Lender of its obligation to fulfill its commitments
hereunder or to prejudice any rights of the Borrower against the Lender as a
result of any default by such Lender hereunder.

 

2.03.       Revolver Borrowing Procedure.  In order to request a Borrowing under the
Revolving Facility, the Borrower shall notify the Administrative Agent of such
request by telephone not later than 10:00 a.m., New York City time two
Business Days before a proposed Borrowing. Each such telephonic Borrowing
Request shall be irrevocable, and shall be confirmed promptly by hand delivery,
email or fax to the Administrative Agent of a written Borrowing Request and
shall specify the following information: (i) the date of such Borrowing
(which shall be a Business Day); (ii) the number and location of the
account to which funds are to be disbursed; and (iii) the amount of such
Borrowing; provided, however, that, notwithstanding any contrary
specification in any Borrowing Request, each requested Borrowing shall comply
with the requirements set forth in Sections 2.01 and 2.02. The Administrative
Agent shall promptly advise the applicable Lenders of any notice given pursuant
to this Section 2.03 (and the contents thereof), and of each Lender’s
portion of the requested Borrowing.  The
Revolving Loans comprising any Borrowing shall be in an aggregate principal
amount that is (i) an integral multiple of $1,000,000 and not less than
$2,000,000; or (ii) equal to the remaining available balance of the
Revolving Commitment.

 

2.04.       Use of Proceeds.  The proceeds of the Loans shall be applied by
the Borrower (and, to the extent distributed to them by the Borrower, each
other Loan Party) solely (a) to repay certain Indebtedness, including all
amounts due under the DIP Credit Agreement, (b) to pay certain Bankruptcy
Court approved administrative claims and expenses, and (c) to pay fees and
expenses related to this Agreement, and (d) for working capital, capital
expenditures and other general corporate purposes of the Loan Parties.

 

2.05.       Evidence of Debt; Repayment of
Loans.

 

(a)           The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Lender the principal amount of each Loan of such Lender as
provided in Sections 2.09 and 2.10.

 

(b)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Lender resulting
from each Loan made by such Lender from time to time, including the amounts of 

 

22

 

principal and interest payable
and paid to such Lender from time to time under this Agreement.

 

(c)           The
Administrative Agent shall maintain accounts in which it will record (i) the
amount of each Loan made hereunder, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder from the Borrower or any Guarantor and each
Lender’s share thereof.

 

(d)           The
entries made in the accounts maintained pursuant to Sections 2.05(b) and
2.05(c) shall be prima facie evidence
of the existence and amounts of the obligations therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to maintain
such accounts or any error therein shall not in any manner affect the
obligations of the Borrower to repay the Loans in accordance with their terms.

 

(e)           Any
Lender may request that Loans made by it hereunder be evidenced by a promissory
note. In such event, the Borrower shall execute and deliver to such Lender a
promissory note payable to such Lender and its registered assigns and in a form
and substance reasonably acceptable to the Administrative Agent and the
Borrower. Notwithstanding any other provision of this Agreement, in the event
any Lender shall request and receive such a promissory note, the interests
represented by such note shall at all times (including after any assignment of
all or part of such interests pursuant to Section 9.04) be represented by
one or more promissory notes payable to the payee named therein or its
registered assigns.

 

2.06.       Fees.

 

(a)           The
Borrower agrees to pay to the Icahn Lenders, on a pro rata basis,
through the Administrative Agent, on the Effective Date, the revolver fee (the “Revolver
Fee”) in an amount equal to $1,400,000.

 

(b)           The
Borrower agrees to pay to the Administrative Agent, for its own account, an
annual fee payable on the Effective Date and each anniversary thereof, in the
amount of $100,000; provided, however, that if the Administrative Agent resigns
at any time, the pro rata portion of the Administrative Agent Fee (defined
below) paid for such year shall be returned to the Borrower, or, in the event
that neither Icahn Agency Services LLC nor one of its Affiliates is the
Administrative Agent, such other reasonable amount necessary to pay such other
Administrative Agent’s fees which amount shall be reasonably acceptable to the
Borrower (the “Administrative Agent Fee”).

 

(c)           The
Borrower agrees to pay to the Icahn Lenders other than any Defaulting Lenders,
on a pro rata basis, through the Administrative Agent, on the last day of each
fiscal quarter occurring after the Effective Date (or the next Business Day if
the last day of such quarter is not a Business Day) an unused line fee (the “Unused
Line Fee”) payable in arrears, in an amount equal to 0.75% per annum
multiplied by the daily average undrawn portion of the Revolving Facility 

 

23

 

(without regard to the undrawn amount
existing prior to the Effective Date); provided that upon an Event of Default
caused by an Icahn Lender  that causes
the Revolving Facility to not actually be available to the Borrower, then the
Unused Line Fee shall not be due and payable for that portion of the Revolving
Facility not actually available.

 

(d)           All
Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the
Lenders, on a pro rata basis. Once paid, none of the Fees shall be refundable
under any circumstances.

 

2.07.       Interest on Loans.

 

(a)           Subject
to the provisions of Section 2.08, the Loans shall bear interest (computed
on the basis of the actual number of days elapsed over a year of 360 days and
calculated from and including the date of such Borrowing to but excluding the
date of repayment thereof) at a rate per annum equal to 15%.

 

(b)           Interest
on each Loan shall be payable in arrears on the Interest Payment Dates except
as otherwise provided in this Agreement.

 

2.08.       Default Interest.  If any Event of Default is continuing, then,
until such Event of Default is cured, remedied or waived, to the extent
permitted by law, the Loans shall bear interest (after as well as before
judgment), payable on demand, at the rate otherwise applicable to such Loan
pursuant to Section 2.07 plus 2.00% per annum.

 

2.09.       Repayment of Term Borrowings.

 

(a)           The
Borrower shall pay to the Administrative Agent, for the account of the Lenders,
on each of the first and second anniversaries of the Effective Date, or if
either such date is not a Business Day, on the next preceding Business Day the
lesser of  (i) $1,300,000 of the
principal amount of the Term Loans and (ii) the balance of the then
outstanding principal amount of the Term Loans, together in each case with
accrued and unpaid interest on the principal amount to be paid to but excluding
the date of such payment.

 

(b)           To
the extent not previously paid, all Loans shall be due and payable on the
Maturity Date together with all accrued and unpaid interest on the principal
amount to be paid to, but excluding, the date of payment.

 

2.10.       Termination and Reduction of
Commitments.

 

(a)           The
Term Commitments shall automatically terminate upon the making of the Term
Loans on the Effective Date. The Revolving Commitments shall automatically
terminate 45 days prior to the third anniversary of the Effective Date.

 

(b)           Upon
at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent, the Borrower may at any time in whole permanently 

 

24

 

terminate, or from time to time in part
permanently reduce, the Term Commitment or the Revolving Commitments; provided,
however, that each partial reduction of the Revolving Commitments shall be in
an integral multiple of $500,000 and in a minimum amount of $1,000,000 and the
aggregate Revolving Commitments shall not be reduced to an amount that is less
than the aggregate amount of Revolving Loans then outstanding.

 

(c)           Each
reduction in the Term Commitments or the Revolving Commitments hereunder shall
be made ratably among the Lenders in accordance with their respective
applicable Term Commitments or Revolving Commitments, as the case may be.  The Borrower shall pay to the Administrative
Agent for the account of the applicable Lenders, on the date of each
termination or reduction, the Commitment Fees (if any) on the amount of the
Commitments so terminated or reduced accrued to but excluding the date of such
termination or reduction.

 

2.11.       Optional Prepayment.

 

(a)           The
Borrower shall have the right at any time and from time to time to prepay any
Borrowing, in whole or in part, upon at least three Business Days’ prior
written or fax notice (or telephone notice promptly confirmed by written or fax
notice), to the Administrative Agent before 12:00 p.m. (noon), New York
City time; provided, however, that (i) each partial prepayment
shall be in an amount that is an integral multiple of $5,000,000 and not less
than $5,000,000, and (ii) there shall be no prepayments of Term Loans
unless all of the Revolving Loans have been paid in full and the Revolving
Commitments shall have been terminated or reduced to zero, and (iii) each
such prepayment shall be made subject to the provisions of Section 2.12(g).

 

(b)           Each
notice of prepayment shall specify the prepayment date and the principal amount
of each Borrowing (or portion thereof) to be prepaid, shall be irrevocable
(other than in connection with a refinancing) and shall commit the Borrower to
prepay such Borrowing by the amount stated therein on the date stated therein.
All prepayments under this Section 2.11 shall be without premium or
penalty, but shall include the applicable Prepayment Premium.  All prepayments under this Section 2.11
shall be accompanied by accrued and unpaid interest on the principal amount to
be prepaid to but excluding the date of payment and applicable Prepayment
Premium.

 

2.12.       Mandatory Prepayments.

 

(a)           From
and after the Effective Date, not later than the first Business Day following
the receipt of Net Cash Proceeds in respect of any Asset Sale, the Borrower
shall apply 100% of the Net Cash Proceeds received with respect thereto to
prepay outstanding Loans in accordance with Section 2.12(d).

 

(b)           From
and after the Effective Date, in the event that any Loan Party shall receive
Net Cash Proceeds from the issuance or incurrence of Indebtedness for money
borrowed of any Loan Party or any subsidiary of a Loan Party (other than any 

 

25

 

cash proceeds from the issuance of
Indebtedness for money borrowed permitted pursuant to Section 6.01), the
Borrower shall, substantially simultaneously with (and in any event not later
than the first Business Day next following) the receipt of such Net Cash
Proceeds by such Loan Party, apply an amount equal to 100% of such Net Cash
Proceeds to prepay outstanding Loans in accordance with Section 2.12(d).

 

(c)           [Reserved]

 

(d)           Mandatory
prepayments described in Sections 2.12(a) to 2.12(b) shall be
applied, subject to the provisions of Section 2.12(f), (A) first, to
the repayment of outstanding Term Loans and (B) then, in the event that
the Term Loans have been paid in full, to the repayment of outstanding
Revolving Loans (without a corresponding reduction in the Revolving
Commitments).

 

(e)           The
Borrower shall deliver to the Administrative Agent, at the time of each
prepayment required under this Section 2.12, (i) a certificate signed
by a Financial Officer of the Borrower setting forth in reasonable detail the
calculation of the amount of such prepayment and (ii) to the extent
practicable, at least three days prior written notice of such prepayment. Each
notice of prepayment shall specify the prepayment date and the principal amount
of each Loan (or portion thereof) to be prepaid. All prepayments of Borrowings
under this Section 2.12 shall be without premium or penalty (except the
applicable Prepayment Premium), and shall be accompanied by accrued and unpaid
interest on the principal amount to be prepaid to but excluding the date of
payment.

 

(f)            Anything
contained herein to the contrary notwithstanding, in the event the Borrower is
required to make any mandatory prepayment under this Section 2.12 (each, a
“Waivable Prepayment”) not less than three (3) Business Days prior
to the date (the “Prepayment Date”) on which the Borrower is required to
make such Waivable Prepayment, the Borrower shall notify the Administrative
Agent of the amount of such prepayment, and the Administrative Agent will
promptly thereafter notify each Lender holding an outstanding Loan or
Commitment of the amount of such Lender’s Pro Rata Share of such Waivable
Prepayment and such Lender’s option to refuse such prepayment. Each such Lender
may exercise such option by giving written notice to the Borrower and the
Administrative Agent of its election to do so on or before the first Business
Day prior to the Prepayment Date (it being understood that any Lender which
does not notify the Borrower and the Administrative Agent of its election to
exercise such option on or before the first Business Day prior to the
Prepayment Date shall be deemed to have elected, as of such date, not to
exercise such option). On the Prepayment Date, the Borrower shall pay to the
Administrative Agent the amount of the Waivable Prepayment, which amount shall
be applied in an amount equal to that portion of the Waivable Prepayment
payable to those Lenders that have elected not to exercise such option, to
prepay the Loans of such Lenders (which shall be applied in accordance with Section 2.12(d))
to the extent of any excess, to the Borrower for any of the purposes permitted
hereunder.

 

26

 

(g)           All
prepayments (whether optional under Section 2.11, mandatory under Section 2.12(a) or
(b), or otherwise including by way of acceleration) shall be accompanied by
accrued and unpaid interest on the principal amount to be prepaid to but
excluding the date of payment and any Prepayment Premium.

 

2.13.       Reserve Requirements; Change in
Circumstances.

 

(a)           Notwithstanding
any other provision of this Agreement, if any Change in Law shall impose,
modify or deem applicable any reserve, special deposit or similar requirement
against assets of, deposits with or for the account of or credit extended by
any Lender or shall impose on such Lender any other condition affecting this
Agreement, and the result of any of the foregoing shall be to reduce the amount
of any sum received or receivable by such Lender hereunder (whether of
principal, interest or otherwise) by an amount deemed by such Lender (acting
reasonably) to be material, then the Borrower will pay to such Lender, as the
case may be, upon demand such additional amount or amounts as will compensate
such Lender, as the case may be, for such additional costs incurred or
reduction suffered.

 

(b)           If
any Lender shall have determined that any Change in Law regarding capital
adequacy has or would have the effect of reducing the rate of return on such
Lender’s capital or on the capital of such Lender’s holding company, if any, as
a consequence of this Agreement or the Loans made to a level below that which
such Lender or such Lender’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy) by
an amount deemed by such Lender (acting reasonably) to be material, then from
time to time the Borrower shall pay to such Lender, as the case may be, such
additional amount or amounts as will compensate such Lender or such Lender’s
holding company for any such reduction suffered.

 

(c)           A
certificate of a Lender setting forth the amount or amounts necessary to
compensate such Lender or its holding company, as applicable, as specified in
Sections 2.13(a) or 2.13(b) shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender
the amount shown as due on any such certificate delivered by it within 10
Business Days after its receipt of the same.

 

(d)           Failure
or delay on the part of any Lender to demand compensation for any increased
costs or reduction in amounts received or receivable or reduction in return on
capital shall not constitute a waiver of such Lender’s right to demand such
compensation; provided that the Borrower shall not be under any
obligation to compensate any Lender under Sections 2.13(a) or 2.13(b) with
respect to increased costs or reductions with respect to any period prior to
the date that is 120 days prior to such request if such Lender knew or could
reasonably have been expected to know of the circumstances giving rise to such
increased costs or reductions and of the fact that such circumstances would
result in a claim for increased compensation by reason of such increased costs
or reductions; provided  

 

27

 

further that the foregoing limitation
shall not apply to any increased costs or reductions arising out of the
retroactive application of any Change in Law within such 120-day period. The
protection of this Section shall be available to each Lender regardless of
any possible contention of the invalidity or inapplicability of the Change in
Law that shall have occurred or been imposed.

 

2.14.       Pro Rata Treatment.

 

(a)           Each
payment of interest on the Loans shall be allocated pro rata among the Lenders
in accordance with their respective principal amounts of their outstanding
Loans.

 

(b)           Each
payment or prepayment of principal of any Revolving Loan shall be allocated pro
rata among the Revolving Lenders in proportion to their respective principal
amounts of their outstanding Revolving Loans.

 

(c)           Unless
otherwise provided in this Agreement, each payment or prepayment of principal
of any Term Loan shall be allocated pro rata among the Term Lenders in
proportion to their respective principal amounts of their outstanding Term
Loans.

 

(d)           Each
Lender agrees that in computing such Lender’s portion of any Borrowing to be
made hereunder, the Administrative Agent may, in its discretion, round each
Lender’s percentage of such Borrowing to the next higher or lower whole dollar
amount.

 

2.15.       Sharing of Setoffs.  Each Lender agrees that if it shall, through
the exercise of a right of banker’s lien, setoff or counterclaim against the
Borrower or any other Loan Party, or pursuant to a secured claim under Section 506
of the Bankruptcy Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any applicable
bankruptcy, insolvency or other similar law or otherwise, or by any other
means, obtain payment (voluntary or involuntary) in respect of any Loan as a
result of which the unpaid principal portion of its Loans shall be
proportionately less than the unpaid principal portion of the Loans of any
other Lender, it shall be deemed simultaneously to have purchased from such
other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the Loans of such other Lender, so that
the aggregate unpaid principal amount of the Loans and participations in Loans
held by each Lender shall be in the same proportion to the aggregate unpaid
principal amount of all Loans then outstanding as the principal amount of its
Loans prior to such exercise of banker’s lien, setoff or counterclaim or other
event was to the principal amount of all Loans outstanding prior to such
exercise of banker’s lien, setoff or counterclaim or other event; provided,
however, that if any such purchase or purchases or adjustments shall be made
pursuant to this Section 2.15 and the payment giving rise thereto shall
thereafter be recovered, such purchase or purchases or adjustments shall be
rescinded to the extent of such recovery and the purchase price or prices or
adjustment restored without interest. The Borrower expressly consents to the
foregoing arrangements.

 

28

 

2.16.       Payments.

 

(a)           The
Borrower shall make each payment (including principal of or interest on any
Borrowing or any Fees or other amounts) hereunder and under any other Loan
Document not later than 12:00 p.m. (noon), New York City time, on the date
when due in immediately available dollars, without setoff, defense or
counterclaim. Each such payment shall be made to the Administrative Agent at
such accounts at such banks as designated by the Administrative Agent from time
to time.  The Administrative Agent shall
promptly distribute to each Lender any payments received by the Administrative
Agent on behalf of such Lender.

 

(b)           Except
as otherwise expressly provided herein, whenever any payment (including
principal of or interest on any Borrowing or any Fees or other amounts)
hereunder or under any other Loan Document shall become due, or otherwise would
occur, on a day that is not a Business Day, such payment may be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of interest or Fees, if applicable.

 

(c)           All
monies to be applied to the Obligations, whether arising from payments by Loan
Parties, realization on Collateral, setoff or otherwise, shall be allocated as
follows (i) first, to unpaid fees and reimbursement of unpaid expenses of
the Agents, (ii) second, to any unpaid fees and reimbursement of unpaid
expenses of the Lenders to the extent constituting part of the Obligations, (iii) third,
to unpaid interest, (iv) fourth, ratably to repay the principal of the
Revolving  Loans, (v) fifth, to
repay the principal of Term Loans, and (vi) last, to all other
Obligations. Amounts shall be applied to each category of Obligations set forth
above until Full Payment thereof and then to the next category. If amounts are
insufficient to satisfy a category, they shall be applied on a pro rata basis
among the Obligations in the category. The allocations set forth in this Section are
solely to determine the rights and priorities of the Agents and Lenders as
among themselves, and may be changed by agreement among them without the
consent of any Loan Party. This Section is not for the benefit of or
enforceable by the Borrower.

 

2.17.       Taxes.

 

(a)           Any
and all payments by or on account of any obligation of the Borrower or any
other Loan Party hereunder or under any other Loan Document shall be made free
and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided
that, if the Borrower or any other Loan Party shall
be required to deduct any such Indemnified Taxes or Other Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions of Indemnified Taxes
applicable to additional sums payable under this Section) the Administrative
Agent or Lender (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (ii) the Borrower or
such Loan Party shall make such deductions and (iii) the Borrower or such
Loan Party shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

 

29

 

(b)           In
addition, the Borrower shall pay, and authorizes the Administrative Agent to
pay in its name, any Other Taxes to the relevant Governmental Authority in
accordance with applicable law.

 

(c)           The
Borrower shall indemnify the Administrative Agent and each Lender within 10
Business Days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
as the case may be, on or with respect to any payment by or on account of any
obligation of the Borrower or any other Loan Party hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether
or not such Indemnified Taxes or Other Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority. A certificate as to the
amount of such payment or liability delivered to the Borrower by a Lender, or
by the Administrative Agent on behalf of itself, a Lender, shall be conclusive
absent manifest error; provided that if the Borrower reasonably believes that such
Indemnified Taxes or Other Taxes were not correctly or legally asserted, the
Administrative Agent or the Lender will use reasonable efforts to cooperate
with the Borrower to obtain a refund of such Taxes.

 

(d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower or any other Loan Party to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

 

(e)           Any
Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower certifying to such entitlement to
exemption from, or a reduced rate of, withholding or at a reduced rate.  Any Lender that is a
“United States person” within the meaning of section 7701(a)(30) of the Code
shall deliver to the Borrower (with a copy to the Administrative Agent) IRS Form W-9
or such other documentation or information prescribed by law or reasonably
requested to determine whether such Lender is subject to backup
withholding,  information reporting
requirements, or other similar provisions.

 

(f)            If
the Administrative Agent or any Lender determines, in its reasonable
discretion, that it has received a refund of any Indemnified Taxes or Other
Taxes (including a credit in lieu of a cash refund) as to which it has been
indemnified by a Loan Party or with respect to which a Loan Party has paid
additional amounts pursuant to this Section 2.17, it shall pay over such
refund to that Loan Party (but only to the extent of indemnity payments made,
or additional amounts paid, by

 

30

 

such Loan Party under this Section 2.17
with respect to the Indemnified Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such
Lender and without interest (other than any interest paid by the Governmental
Authority with respect to such refund); provided that the Loan Parties,
upon the request of the Administrative Agent or such Lender, agree to repay the
amount paid over to such Loan Party (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative
Agent or any Lender in the event the Administrative Agent or such Lender is
required to repay such refund to the Governmental Authority. This Section 2.17(f) shall
not be construed to require the Administrative Agent or any Lender to make
available its tax returns (or any other information it deems confidential) to
the Loan Parties or to apply for any refund.

 

2.18.       Assignment of Commitments Under
Certain Circumstances; Duty to Mitigate.

 

(a)           In
the event that (i) any Lender delivers a certificate requesting
compensation pursuant to Section 2.13, (ii) the Borrower is required
to pay any additional amount to any Lender or any Governmental Authority on
account of any Lender pursuant to Section 2.17, (iii) any Lender
defaults in its obligation to make Loans hereunder or (iv) any Lender
refuses to consent to any amendment, waiver or other modification of any Loan
Document requested by the Borrower that requires the consent of a greater
percentage of the Lenders than the Required Lenders and such amendment, waiver
or other modification has been consented to by the Required Lenders, the
Borrower or the Administrative Agent may at the sole expense and effort of the
Borrower (including with respect to the processing and recordation fee referred
to in Section 9.04(b)), upon notice to such Lender, require such Lender to
transfer and assign, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement to an Eligible Assignee that shall assume such
assigned obligations (which assignee may be another Lender, if a Lender accepts
such assignment) and, in addition, with respect to clause (iv) above,
shall consent to such requested amendment, waiver or other modification of any
Loan Documents; provided that (x) such assignment shall not
conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, (y) the Borrower shall have
received the prior written consent of the Administrative Agent and (z) the
Borrower or such assignee shall have paid to the affected Lender in immediately
available funds an amount equal to the sum of the principal of and interest
accrued to the date of such payment on the outstanding Loans of such Lender,
respectively, plus all Fees and other amounts accrued for the account of such
Lender hereunder with respect thereto (including any amounts under Sections
2.13); provided further that, if prior to any such transfer and
assignment the circumstances or event that resulted in such Lender’s claim for
compensation under Section 2.15 or the amounts paid pursuant to Section 2.17,
as the case may be, cease to cause such Lender to suffer increased costs or
reductions in amounts received or receivable or reduction in return on capital,
or cease to result in amounts being payable under Section 2.17, as the
case may be (including as a result of any action taken by such Lender pursuant
to Section 2.18(b)), or if such Lender shall waive its right to claim
further compensation 

 

31

 

under Section 2.13 in respect of
such circumstances or event or shall waive its right to further payments under Section 2.17
in respect of such circumstances or event or shall consent to the proposed
amendment, waiver, consent or other modification, as the case may be, then such
Lender shall not thereafter be required to make any such transfer and
assignment hereunder. Each Lender hereby grants to the Administrative Agent an
irrevocable power of attorney (which power is coupled with an interest) to
execute and deliver, on behalf of such Lender as assignor, any Assignment and
Acceptance necessary to effectuate any assignment of such Lender’s interests
hereunder in the circumstances contemplated by this Section 2.18(a).

 

(b)           If
(i) any Lender shall request compensation under Section 2.13, or (ii) the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority on account of any Lender, pursuant to Section 2.17,
then such Lender shall use reasonable efforts (which shall not require such
Lender to incur an unreimbursed loss or unreimbursed cost or expense or
otherwise take any action inconsistent with its internal policies or legal or
regulatory restrictions or suffer any disadvantage or burden deemed by it to be
significant) (x) to file any certificate or document reasonably requested
in writing by the Borrower or (y) to assign its rights and delegate and transfer
its obligations hereunder to another of its offices, branches or affiliates, if
such filing or assignment would reduce its claims for compensation under Section 2.13
or would reduce amounts payable pursuant to Section 2.17, as the case may
be, in the future. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such filing or
assignment, delegation and transfer.

 

ARTICLE III.

Representations and Warranties

 

From
and after the Effective Date, the Borrower represents and warrants to the
Administrative Agent, the Collateral Agent and each of the Lenders, with
respect to itself and each of its Subsidiaries, that, from and after the
Effective Date:

 

3.01.       Organization; Powers.  The Borrower, each of the Subsidiaries and
each of the Guarantors (a) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization, (b) has all requisite power and authority to own its
property and assets and to carry on its business as now conducted, (c) is
qualified to do business in, and is in good standing (where such concept is
relevant) in, every jurisdiction where such qualification is required, except
where the failure so to qualify could not reasonably be expected to result in a
Material Adverse Effect, and (d) has the power and authority to execute,
deliver and perform its obligations under each of the Loan Documents and each
other agreement or instrument contemplated thereby to which it is a party and,
in the case of the Borrower, to borrow hereunder.

 

3.02.       Authorization; No Conflict.  The Loan Documents (a) have been duly
authorized by all requisite corporate and, if required, stockholder action and (b) will
not (i) violate (A) any provision of law, statute, rule or
regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of the Borrower, any Subsidiary or any
Guarantor 

 

32

 

except as would not have a Material
Adverse Effect, (B) any order of any Governmental Authority except as
would not have a Material Adverse Effect or (C) except as set forth on
Schedule 3.02, any material provision of any material indenture, agreement or
other instrument to which the Borrower, any Subsidiary or any Guarantor is a
party or by which any of them or any of their property is or may be bound, (ii) be
in conflict with, result in a breach of or constitute (alone or with notice or
lapse of time or both) a default under, or give rise to any right to accelerate
or to require the prepayment, repurchase or redemption of any obligation under
any such material indenture, agreement or other instrument that (other than
with respect to the Loan Documents) could reasonably be expected to result in a
Material Adverse Effect or (iii) result in the creation or imposition of
any Lien upon or with respect to any material property or material assets now
owned or hereafter acquired by the Borrower, any Subsidiary or any Guarantor
(other than any Lien created hereunder or under the Security Documents or as
expressly permitted hereunder) that (other than with respect to the Loan
Documents) could reasonably be expected to result in a Material Adverse Effect.

 

3.03.       Enforceability.  This Agreement has been duly executed and
delivered by the Borrower and the Guarantors and constitutes, and each other
Loan Document when executed and delivered by each Loan Party thereto will
constitute a legal, valid and binding obligation of such Loan Party enforceable
against such Loan Party in accordance with its terms.

 

3.04.       Governmental Approvals.  Except as set forth on Schedule 3.04, no
action, consent or approval of, registration or filing with or any other action
by any Governmental Authority (other than a Gaming Authority) is or will be
required to enter into the Loan Documents and borrow funds in connection
therewith except for such as have been made or obtained and are in full force
and effect. The Borrower, the Subsidiaries and the Guarantors have made, or promptly
after the Effective Date will make, all necessary applications to and, subject
to any additional time to obtain such consents, approvals and rulings
contemplated by Section 5.15 or as set forth on Schedule 3.04, have
procured all necessary consents, approvals and favorable rulings of all
applicable Gaming Authorities to (i) pledge the Equity Interests of the
Borrower, the Guarantors and their subsidiaries, where relevant, pursuant to
the Guarantee and Collateral Agreement, (ii) the restrictions on transfer
and hypothecation of the stock and equity securities of such Persons contained
in Sections 6.02 and 6.04 of this Agreement and otherwise in the other Loan
Documents and (iii) otherwise enter into the Loan Documents and borrow
funds in connection therewith.

 

3.05.       Financial Statements.  The Borrower has heretofore furnished to the
Lenders:

 

(a)           audited
annual financial statements consolidated or combined, as applicable, of each of
(w) Tropicana Entertainment, LLC,
(x) Columbia Properties Vicksburg LLC, (y) JMBS Casino, LLC and (z) Greenville
(each of (w) - (z)  individually, a “Tropicana Reporting Entity”
and collectively, the “Tropicana Reporting Entities”), in each case for
the 2008 fiscal years, audited by and accompanied by the opinion of the relevant
independent public accountants; and

 

(b)           quarterly
unaudited consolidated or combined, as applicable, statements of income of each
Tropicana Reporting Entity for each of the quarters ending on March 31,
2009, June 30, 2009 and September 30, 2009.

 

33

 

Such
financial statements (A) present fairly the financial condition and
results of operations and cash flows of the Tropicana Reporting Entities as of
such dates and for such periods, (B) disclose all material liabilities,
direct or contingent, of the Tropicana Reporting Entities (including the
Guarantors) as of the dates thereof and (C) were prepared in accordance
with GAAP applied on a consistent basis, subject, in the case of unaudited
financial statements, to year-end audit adjustments and the absence of
footnotes.

 

3.06.       No Material Adverse Change. No event,
change or condition has occurred that has had, or could reasonably be expected
to have, a Material Adverse Effect, since June 30, 2009.

 

3.07.       Title to Properties; Possession
Under Leases.

 

(a)           Except
as set forth on Schedule 3.07, each of the Borrower and the Guarantors has good
and marketable title to (including in connection therewith, valid easements),
or valid leasehold interests in, all its material properties and assets
(including all Mortgaged Property), except for minor defects in title that do
not interfere with its ability to conduct its business as currently conducted
or to utilize such properties and assets for their intended purposes. All such
material properties and assets are free and clear of Liens, other than Liens
expressly permitted by Section 6.02 or arising by operation of law.

 

(b)           Except
as set forth on Schedule 3.07, each of the Borrower and the Guarantors has
complied with all material obligations which have arisen after the date of the
effectiveness of the Plan of Reorganization under all material leases
(including all leases of Mortgaged Property) to which it is a party and all
such leases are in full force and effect. Each of the Borrower and the
Guarantors enjoys peaceful and undisturbed possession under all such material
leases.  The granting of a Lien
encumbering the proceeds of the leasehold interest of the Borrower and any
Guarantor in any Mortgaged Property (i) does not require landlord consent
or approval under the applicable lease that has not been obtained and (ii) will
not violate or result in a default under such lease.

 

(c)           As
of the Effective Date, none of the Borrower or any Guarantor has received any
actual notice of, nor has any actual knowledge of, any pending or contemplated
condemnation proceeding affecting the Mortgaged Properties owned by it or any
sale or disposition thereof in lieu of condemnation.

 

(d)           As
of the Effective Date, none of the Borrower or any Guarantor is obligated under
any right of first refusal, option or other contractual right to sell, assign
or otherwise dispose of any Mortgaged Property or any interest therein.

 

3.08.       Subsidiaries.   Schedule 3.08 sets forth as of the Effective
Date a list of all Subsidiaries and the percentage ownership interest of the
Borrower therein and the ownership interests of the Guarantors. The shares of
capital stock or other ownership interests so indicated on Schedule 3.08 held
in such Subsidiary are fully paid and non-assessable and are owned by the
Borrower, directly or indirectly, free and clear of all Liens (other than Liens
created under the Security Documents, and 
Liens permitted under Section 6.02).

 

34

 

3.09.       Litigation; Compliance with Laws.

 

(a)           Except
as set forth on Schedule 3.09, there are no actions, suits or proceedings at
law or in equity or by or before any Governmental Authority now pending or, to
the actual knowledge of the Borrower or the Guarantors, threatened against the
Borrower, any Subsidiary or any business, property or rights of any such Person
(i) that involve any Loan Document or (ii) as to which there is a
reasonable possibility of an adverse determination and that, if adversely determined,
could reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect.

 

(b)           None
of the Borrower, any of the Subsidiaries or any of the Guarantors or any of
their respective material properties or assets is in violation of, nor will the
continued operation of their material properties and assets as currently
conducted violate, any law, rule or regulation (including any zoning,
building, ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting the Mortgaged Property, or is in
default with respect to any judgment, writ, injunction, decree or order of any
Governmental Authority, where such violation or default would reasonably be
expected to result in a Material Adverse Effect.

 

(c)           Certificates
of occupancy and permits are in effect for each Mortgaged Property as currently
constructed, except where the failure to have the same could not reasonably be
expected to result in a Material Adverse Effect, and true and complete copies
of such certificates of occupancy as are available using commercially
reasonable efforts have been delivered to the Collateral Agent as mortgagee
with respect to each Mortgaged Property.

 

3.10.       Agreements.  None of the Borrower, any of the Subsidiaries
or any of the Guarantors is in default in any manner under any provision of any
indenture or other agreement or instrument evidencing Material Indebtedness, or
any other material agreement or instrument to which it is a party, where such
default would reasonably be expected to result in a Material Adverse Effect.

 

3.11.       Federal Reserve Regulations.  None of the Borrower, any of the Subsidiaries
or any of the Guarantors is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of buying or
carrying Margin Stock.

 

(a)           No
part of the proceeds of any Loan will be used, whether directly or indirectly,
and whether immediately, incidentally or ultimately, for any purpose that
entails a violation of, or that is inconsistent with, the provisions of the
Regulations of the Board, including Regulation T, U or X.

 

3.12.       Investment Company Act.  None of the Borrower or any Subsidiary is an “investment
company” as defined in, or subject to regulation under, the Investment
Company Act of 1940.

 

3.13.       Tax Returns.  Each of the Borrower, the Subsidiaries and
the Guarantors has filed or caused to be filed all Federal, state, local and
(to the extent it has foreign operations) foreign tax returns required to have
been filed by it and has paid or caused to be paid all taxes then due and 

 

35

 

payable by it (whether or
not shown as due on such returns but after taking into account any valid
extensions), except (a) taxes that are being contested in good faith by
appropriate proceedings and for which the Borrower or such Subsidiary, as
applicable, shall have set aside on its books adequate reserves, (b) immaterial
taxes so long as no material asset or portion of Mortgaged Property of the
Borrower or any Subsidiary is in jeopardy of being seized, levied upon or
forfeited and (c) any amended tax returns for the predecessors to the
Borrower and its Subsidiaries for the fiscal years ended 2007 and 2008 and the
payment of any additional taxes arising as a result.  The Borrower has not engaged in any “listed
transaction” (within the meaning of Treasury Regulation Section 1.6
011-4 of the Code).

 

3.14.       No Material Misstatements.  No information, report, financial statement,
agreement, documentary condition precedent, exhibit or schedule furnished by or
on behalf of the Borrower to the Administrative Agent or any Lender in
connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto contained as of the date of such statement any
material misstatement of fact or omitted to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading when taken as a whole; provided that to
the extent any such information, report, financial statement, exhibit or
schedule was based upon or constitutes a forecast or projection, the Borrower
represents only that it acted in good faith and utilized reasonable assumptions
(based upon accounting principles consistent with the historical audited
financial statements of the Borrower) and due care in the preparation of such
information, report, financial statement, exhibit or schedule (it being
recognized that actual results are subject to uncertainties and contingencies
which may be beyond the Borrower’s control).

 

3.15.       Employee Benefit Plans.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events,
would reasonably be expected to result in material liability of the Borrower or
any of its ERISA Affiliates. Neither the Borrower nor any of its ERISA
Affiliates has nor has ever sponsored, maintained, contributed to or had any
obligation or liability with respect to any Plan subject to Title IV of ERISA,
nor does the Borrower nor any ERISA Affiliate have any present intention to
sponsor, maintain, contribute or have any obligation or liability with respect
to any Plan subject to Title IV of ERISA.

 

3.16.       Environmental Matters.

 

(a)           Except
as set forth in Schedule 3.16 and except with respect to any other matters
that, individually or in the aggregate, would not reasonably be expected to
result in the Borrower, any of the Subsidiaries or any of the Guarantors
incurring material Environmental Liabilities, each of the Borrower, the
Subsidiaries and the Guarantors is and has been in compliance with any
Environmental Law, which compliance includes obtaining, maintaining and
complying with any permit, license or other approval required under any Environmental
Law for any of their operations.

 

(b)           Except
as set forth in Schedule 3.16 and except with respect to any other matters
that, individually or in the aggregate, would not reasonably be expected to
result in the Borrower, any of the Subsidiaries or any of the Guarantors
incurring material Environmental Liabilities (i) none of the Borrower or
any Subsidiary or 

 

36

 

any of the Guarantors has contractually
assumed any Environmental Liability of any Person, (ii) has received, or
to the actual knowledge of the Borrower and the Guarantors, anticipates
receiving, written notice of any claim, order, agreement, or investigation with
respect to any Environmental Liability or (iii) knows of any basis for any
claim with respect to any Environmental Liability against or with respect to
the Borrower, any Subsidiary or any Guarantor.

 

(c)           No
Lien under Environmental Laws has attached to any real property, and to the
knowledge of the Borrower and the Guarantors, no facts, circumstances or
conditions exist that could reasonably be expected to result in any such Lien
attaching to any such real property.

 

(d)           Except
as disclosed on Schedule 3.16, the consummation of the transaction contemplated
under this Agreement does not require the consent of or filing with any
Governmental Authority under Environmental Law, and, except as disclosed on
Schedule 3.16, none of the real property assets are located in New Jersey,
Indiana, or Connecticut.

 

(e)           Each
of the Borrower, the Subsidiaries and the Guarantors has made available to
Lender copies of all existing environmental reports, reviews and audits and all
documents pertaining to actual or potential Environmental Liability and has
provided to Lender copies of all material environmental reports, including any “Phase
I environmental site assessments”, relating to any real property, in each case
to the extent such reports, reviews, audits and documents are in their
possession, custody or control.

 

(f)            None
of the items disclosed on any part of Schedule 3.16, together with all other
conditions that might give rise to Environmental Liabilities, would reasonably
be expected to result in the Borrower, any of the Subsidiaries or any of the
Guarantors incurring such liabilities in excess of $5,000,000 in the aggregate.

 

3.17.       Insurance.  Schedule 3.17 sets forth a true, complete and
correct description of all insurance maintained by the Borrower, the Guarantors
and the Subsidiaries, as of the Effective Date. As of such date, all premiums
have been duly paid to the extent due. The Borrower, the Subsidiaries and the
Guarantors have insurance in such amounts and covering such risks and
liabilities as are in accordance with normal industry practice.

 

3.18.       Security Documents.

 

(a)           The
Guarantee and Collateral Agreement, upon execution and delivery thereof by the
parties thereto, will be effective to create in favor of the Collateral Agent,
to the extent set forth therein, for the benefit of the Secured Parties, a
legal, valid and enforceable security interest in the Collateral (as defined in
the Guarantee and Collateral Agreement) and, subject to any limitations herein
and therein or in the  certificates or
notes, as applicable, representing Pledged Collateral (as defined in the
Guarantee and Collateral Agreement), the proceeds thereof, except as
enforceability may be limited by applicable bankruptcy, insolvency, moratorium
(or similar laws affecting the enforcement of creditors’ rights generally), by 

 

37

 

equitable principles (whether
enforcement is sought by proceedings in equity or at law), implied covenants of
good faith and fair dealing and by applicable Gaming Laws (including licensing,
qualification and suitability approvals required by any Gaming Authority) and (i) when
the Pledged Collateral (as defined in the Guarantee and Collateral Agreement)
is delivered to the Collateral Agent, the Lien created under the Guarantee and
Collateral Agreement shall (subject to the further requirements of relevant
Gaming Authorities) constitute a fully perfected first priority Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Pledged Collateral to the extent that a Lien in such Pledged Collateral can be
perfected by delivery, in each case prior and superior in right to any other
person (except with respect to (A) Liens expressly permitted under Section 6.02
and (B) Liens having priority by operation of law), and (ii) when
financing statements in appropriate form are filed in the offices specified on
Schedule 3.18(a), the Lien created under the Guarantee and Collateral Agreement
will (subject to the further requirements of relevant Gaming Authorities)
constitute a fully perfected Lien on, and security interest in, all right,
title and interest of the Loan Parties in such Collateral to the extent that a
Lien in such Collateral can be perfected by filing of financing statements
(other than Intellectual Property, as defined in the Guarantee and Collateral
Agreement, and other Collateral with respect to which possession or control is
required for perfection), in each case prior and superior in right to any other
person, other than with respect to (A) Liens expressly permitted by Section 6.02
and (B) Liens having priority by operation of law.

 

(b)           Upon
the recordation of the Guarantee and Collateral Agreement (or a short-form
security agreement in form and substance reasonably satisfactory to the
Borrower and the Collateral Agent) with the United States Patent and Trademark
Office and the United States Copyright Office, together with the duly completed
financing statements in appropriate form filed in the offices specified in
Schedule 3.18(a), the Lien created under the Guarantee and Collateral Agreement
shall constitute a fully perfected Lien on, and security interest in, all
right, title and interest of the Loan Parties in the Intellectual Property (as
defined in the Guarantee and Collateral Agreement) in which a security interest
may be perfected by such filing in the United States and its territories and
possessions, in each case prior and superior in right to any other person other
than with respect to (A) Liens expressly permitted by Section 6.02
and (B) Liens having priority by operation of law (it being understood
that subsequent recordings in the United States Patent and Trademark Office and
the United States Copyright Office may be necessary to perfect a Lien on
registered trademarks and patents, trademark and patent applications and
registered copyrights acquired by the Loan Parties after the date hereof).

 

(c)           The
Mortgages are effective to create in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties, a legal, valid and enforceable Lien on
all of the Loan Parties’ right, title and interest in and to the Mortgaged
Property thereunder and the proceeds thereof, and when the Mortgages are filed
in the appropriate offices in which such Mortgaged Property is located, the
Mortgages shall constitute a fully perfected Lien on, and security interest in,
all right, title 

 

38

 

and interest of the Loan Parties in
such Mortgaged Property and the proceeds thereof, in each case prior and
superior in right to any other person, other than with respect to the rights of
persons pursuant to (A) Liens expressly permitted by Section 6.02 and
(B) Liens having priority by operation of law.

 

(d)           Upon
the recordation of the executed Ship Mortgages with the National Vessel
Documentation Center, such agreements will be effective to create in favor of
the Collateral Agent, to the extent set forth therein, for the benefit of the
Secured Parties, a legal, valid and enforceable security interest in the
Vessels to the extent that the Vessels are “vessels” within the meaning of the
United States Ship Mortgage Act of 1920, as amended and as recodified at 46
U.S.C. 31301 et seq. (the “Ship
Mortgage Act”), and subject to any limitations set forth herein or therein,
the proceeds thereof except as enforceability may be limited by applicable bankruptcy,
insolvency, moratorium (or similar laws affecting the enforcement of creditors’
rights generally), by equitable principles (whether enforcement is sought by
proceedings in equity or at law), implied covenants of good faith and fair
dealing and by applicable Gaming Laws (including licensing, qualification and
suitability approvals required by any Gaming Authority), and the Lien created
under such Ship Mortgages shall (subject to the further requirements of
relevant Gaming Authorities) constitute a fully perfected first priority Lien
on, and security interest in, all right, title and interest of the Loan Parties
in the Vessels to the extent such Vessels are “vessels” within the meaning of
the Ship Mortgage Act, in each case prior and superior in right to any other
Person, other than with respect to the rights of Persons pursuant to (A) Liens
expressly permitted by Section 6.02 and (B) Liens having priority by
operation of law.

 

3.19.       Location of Real Property and
Leased Premises.

 

(a)           Schedule
3.19(a) lists completely and correctly as of the Effective Date all real
property owned by the Borrower, the Subsidiaries and the Guarantors and the
addresses thereof (to the extent available). The Borrower, the Subsidiaries and
the Guarantors own in fee all the real property set forth on Schedule 3.19(a).

 

(b)           Schedule
3.19(b) lists completely and correctly as of the Effective Date all real
property leased by the Borrower, the Subsidiaries and the Guarantors and the
addresses thereof (to the extent available). The Borrower, the Subsidiaries and
the Guarantors have valid leases in all the real property set forth on Schedule
3.19(b), except as noted thereon.

 

(c)           As
of the Effective Date, none of the Borrower or any Guarantor has received any
written notice of, nor has any actual knowledge of, any pending or contemplated
condemnation proceeding affecting the Mortgaged Properties owned by it or any
sale or disposition thereof in lieu of condemnation.

 

(d)           As
of the a Effective Date, none of the Borrower or any Guarantor is obligated
under any right of first refusal, option or other contractual right to sell
assign or otherwise dispose of any Mortgaged Property or any interest therein.

 

39

 

3.20.       Leased Ships and Vehicles.  Schedule 3.20 lists completely and correctly
as of the Effective Date owned or leased ships and vessels (to the extent not
listed on Schedules 3.19(a) or 3.19(b)) (collectively, the “Vessels”
and each, a “Vessel”) of the Borrower, the Subsidiaries and the
Guarantors and the location thereof.  The
Borrower, the Subsidiaries and the Guarantors own in fee or have valid leases
on the properties set forth on Schedule 3.20. 
As of the Effective Date, (i) the name, official number and
registered owner of each Vessel is set forth on Schedule 3.20 and (ii) other
than as set forth on Schedule 3.20, there are no Charters entered into between
Borrower (or any Affiliate thereof) and any other Person to which a Vessel is
subject.

 

3.21.       Labor Matters.  Except as set forth on Schedule
3.21 hereto, as of the Effective Date, (i) there are no strikes or
lockouts against the Borrower, any Subsidiary or any Guarantor pending or, to
the actual knowledge of the Borrower, threatened, (ii) the hours worked by
and payments made to employees of the Borrower, the Subsidiaries and the
Guarantors have not been in violation of the Fair Labor Standards Act or any
other applicable Federal, state, local or foreign law dealing with such matters
that would reasonably be expected to have a Material Adverse Effect, and (iii) all
payments due from the Borrower or any Subsidiary or any Guarantor on account of
wages and employee health and welfare insurance and other benefits that would
reasonably be expected to have a Material Adverse Effect if not paid, have been
paid or accrued as a liability on the books of the Borrower, such Subsidiary or
such Guarantor.

 

3.22.       Sanctioned Persons.
Patriot Act.

 

(a)                                  (i) The Borrower will not directly or indirectly use
the proceeds of the Loans or otherwise make available such proceeds to any
Person in violation of the U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department (“OFAC”); and (ii) none of
the Borrower, any Subsidiary or any Guarantor, nor any director, officer,
senior manager of the Borrower, any Subsidiary or any Guarantor is (A) a
Person included in the Specially Designated Nationals and Blocked Persons List,
as published from time to time by OFAC, or (B) currently subject to any
U.S. sanctions administered by OFAC; provided, however, that the scope
of this representation and warranty is limited to published U.S. regulatory
requirements as at the date such representation is given.

 

(b)                                 To the extent applicable, each Loan Party is in compliance,
in all material respects, with the (i) Trading with the Enemy Act, as
amended, and each of the foreign assets control regulations of the Untied
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any
other enabling legislation or executive order relating thereto and (ii) Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism (USA Patriot Act of 2001). No part of the proceeds of
the Loans will be used, directly or indirectly, for any payments to any
governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

3.23.       Casino Leases.  As of the Effective Date and except as set
forth in Schedule 3.23, after giving effect to the Loans made on the Effective
Date and the execution of the Loan Documents, 

 

40

 

in the opinion of the
Borrower, no default on behalf of the Borrower or the Subsidiaries exists under
any of the Casino Leases which, entitles the landlords thereunder to
immediately terminate the same, including without limitation, as a result of
the granting of a leasehold deed of trust or leasehold mortgage to the
Administrative Agent.

 

3.24.       Citizenship.  As of the Effective Date, the Loan Parties
own or are qualified to own the Vessels under the laws of the United States,
including Section 2 of the Shipping Act of 1916, as amended from time to
time.  Each other Person which may
operate one or more of the Vessels is qualified to operate such Vessels under
the laws of the United States and each other jurisdiction where any such Vessel
may be operated.

 

ARTICLE IV.

Conditions of Lending

 

The
obligations of the Lenders to make Loans are subject to the satisfaction of the
following conditions:

 

4.01.       All Credit Events.  On the date of each Borrowing (a “Credit
Event”):

 

(a)                                  The Administrative Agent shall have received a Borrowing
Request as required by Section 2.03.

 

(b)                                 The representations and warranties set forth in ARTICLE III
and in each other Loan Document shall be true and correct in all material
respects on and as of the date of such Credit Event with the same effect as
though made on and as of such date, except to the extent such representations
and warranties expressly relate to an earlier date.

 

(c)                                  At the time of and immediately after such Credit Event, no
event shall have occurred and be continuing or would result from the
consummation of the applicable Credit Event that would constitute a Default or
an Event of Default.

 

(d)                                 Each Credit Event shall be deemed to constitute a
representation and warranty by the Borrower on the date of such Credit Event as
to the matters specified in Sections 2.04, 4.01(b) and 4.01(c).

 

4.02.       First Credit Event.  The occurrence of the Effective Date pursuant
to Section 9.22 hereof is subject to the satisfaction (or waiver by the
Administrative Agent) of the following conditions:

 

(a)                                  (i)                                   The Bankruptcy Court shall have entered the Confirmation
Order and such Confirmation Order shall not have been reversed, modified, amended,
stayed or vacated.

 

(ii)                                The Loan Parties shall be in compliance with all terms and
conditions set forth in the Confirmation Order.

 

41

 

(iii)                             The Plan of Reorganization shall have been substantially
consummated or shall be substantially consummated concurrently with the funding
of the Loans to be made on the Effective Date.

 

(iv)                            The DIP Credit Agreement shall be concurrently repaid in
full, all commitments relating thereto shall be concurrently terminated, and
the Loan Parties shall have delivered to the Administrative Agent all documents
or instruments necessary to terminate or release all liens or security
interests related to the DIP Credit Agreement in form and substance reasonably
satisfactory to the Administrative Agent.

 

(v)                               The appointment of at least five (5) of the seven (7) members
of the Borrower’s board of directors and their ability to serve as directors
and perform the duties of directors shall (x) comply with all applicable
regulatory requirements and (y) have been approved, qualified, licensed,
found suitable or otherwise permitted to serve in such capacity, as applicable,
by all applicable Gaming Authorities.

 

(b)                                Concurrently with the Effective Date, the Borrower shall
issue to the Lenders on a pro rata basis in accordance with each Lender’s
Commitment, Warrants to purchase  1,312,500
shares (or such other amount as may be agreed) of common stock of the Borrower.

 

(c)                                 The Administrative Agent shall have received (i) a copy
of the certificate or articles of incorporation, including all amendments
thereto, of each Loan Party, certified as of a recent date by the Secretary of
State of the state of its organization, and a certificate as to the good
standing of each Loan Party as of a recent date, from such Secretary of State; (ii) a
certificate of the Secretary or Assistant Secretary of each Loan Party dated
the Effective Date and certifying (A) that attached thereto is a true and
complete copy of the by-laws of such Loan Party as in effect on the Effective
Date and at all times since a date prior to the date of the resolutions
described in clause (B) below, (B) that attached thereto is a true
and complete copy of resolutions duly adopted by the Board of Directors of such
Loan Party authorizing the execution, delivery and performance of the Loan
Documents to which such Person is a party and, in the case of the Borrower, the
borrowings hereunder, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect, (C) that the
certificate or articles of incorporation of such Loan Party have not been
amended since the date of the last amendment thereto shown on the certificate
of good standing furnished pursuant to clause (i) above, and (D) as
to the incumbency and specimen signature of each officer executing any Loan
Document or any other document delivered in connection herewith on behalf of
such Loan Party; and (iii) a certificate of another officer as to the
incumbency and specimen signature of the Secretary or Assistant Secretary
executing the certificate pursuant to clause (ii) above.

 

(d)                                The Administrative Agent shall have received a certificate,
dated the Effective Date and signed by a Financial Officer of the Borrower,
confirming compliance with the provisions of Sections 2.04, 4.01(b) and
4.01(c).

 

42

 

(e)                                 The Administrative Agent shall have received all Fees and
other amounts due and payable on or prior to the Effective Date (or be
reasonably satisfied that all Fees and other amounts due and payable will be
paid on the Effective Date from the proceeds of the Loans), including to the
extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower hereunder or under any other
Loan Document.

 

(f)                                   Subject to Section 5.15, the Security Documents shall
have been duly executed by each Loan Party that is to be a party thereto and
shall be in full force and effect on the Effective Date. The Collateral Agent
on behalf of the Secured Parties shall have a security interest on the
Effective Date in the Collateral of the type and priority described in the
Security Documents (but subject to such Liens permitted under Section 6.02).

 

(g)                                The Collateral Agent shall have received the results of a
search of the Uniform Commercial Code filings (or equivalent filings) made with
respect to the Loan Parties in the states (or other jurisdictions) of formation
of such Persons, in which the chief executive office of each such Person is
located and in the other jurisdictions in which such Persons maintain real
property together with copies of the financing statements (or similar
documents) disclosed by such search, and accompanied by evidence reasonably
satisfactory to the Collateral Agent that the Liens indicated in any such
financing statement (or similar document) would be permitted under Section 6.02
or have been or will be contemporaneously released or terminated.

 

(h)                                The Lenders shall have received the financial statements
referred to in Section 3.05.

 

(i)                                    The Administrative Agent shall have received a certificate
in form reasonably satisfactory to it, dated the Effective Date and signed by a
Financial Officer of the Borrower, confirming that the Consolidated EBITDA of
the Borrower, the Guarantors and their Subsidiaries (which for the avoidance of
doubt includes any predecessor(s) of the Borrower, any Guarantors and any
Subsidiaries for the purposes of any periods prior the Effective Date), for the
twelve month period ending on December 31, 2009, is at least $35,000,000.

 

(j)                                    Each of the Security Documents, in form reasonably
satisfactory to the Lenders, relating to each of the Mortgaged Properties shall
have been duly executed by the parties thereto and delivered to the Collateral
Agent and shall be in full force and effect, (ii) title searches shall
indicate that the Mortgaged Properties are not subject to any Lien other than
those permitted under Section 6.02 hereto or the Collateral Agent has
received evidence reasonably satisfactory to it that any such existing Lien
will be released on the Effective Date, (iii) each of such Security
Documents shall have been filed and recorded in the appropriate recording
office in the jurisdiction in which the Mortgaged Property is located or shall
have been delivered to the Administrative Agent or a nationally recognized
title insurance company in a proper form for filing, recordation or
registration  in form and substance
acceptable to the Collateral Agent as a first lien on such Mortgaged 

 

43

 

Property (subject to any Lien permitted
by Section 6.02) and, in connection therewith where filed or recorded, the
Collateral Agent shall have received evidence reasonably satisfactory to it of
each such filing or recordation and (iii) the Collateral Agent shall have
received such other documents, including a policy or policies of title
insurance issued by a nationally recognized title insurance company, together
with such endorsements, coinsurance and reinsurance as may be requested by the
Collateral Agent and the Lenders, insuring the Mortgages as valid first liens
on the Mortgaged Properties, free of Liens other than those permitted under Section 6.02,
together with such surveys, abstracts, appraisals and legal opinions required
to be furnished pursuant to the terms of the Mortgages or as reasonably
requested by the Collateral Agent or the Lenders.

 

(k)                                 (i) Each of the Ship Mortgages, in form reasonably
satisfactory to the Lenders, relating to each of the Vessels, shall have been
duly executed and delivered to the Collateral Agent and shall be in full force
and effect, (ii) (x) vessel abstracts shall indicate that the Vessels
are not subject to any Lien of record other than Permitted Liens or (y) the
Collateral Agent has received evidence reasonably satisfactory to it that any
such Lien will be released on the Effective Date, (iii) each of such Ship
Mortgages shall have been filed and recorded in the National Vessel
Documentation Center and, in connection therewith, the Collateral Agent shall
have received evidence reasonably satisfactory to it of each such filing or
recordation and (iv) the Collateral Agent shall have received legal
opinions with respect to the Ship Mortgages and such other documents required
to be furnished pursuant to the terms of the Ship Mortgages or as reasonably
requested by the Collateral Agent or the Lenders; provided that,
notwithstanding the foregoing, title insurance shall not be required.

 

(l)                                    Each of the Schedules, in form and substance reasonably
satisfactory to the Administrative Agent, and each of the Exhibits to this
Agreement shall have been delivered to the Administrative Agent.

 

(m)                              The Borrower shall:

 

(i) deliver to the Administrative Agent a
Perfection Certificate with respect to the Loan Parties duly executed by a
Responsible Officer of the Borrower;

 

(ii) provide a copy of, or a certificate as to
coverage under, the insurance policies required by Section 5.02 and the
applicable provisions of the Security Documents, each of which shall be
endorsed or otherwise amended to include a customary lender’s loss payable
endorsement and to name the Collateral Agent as additional insured; and

 

(iii) provide to the Administrative Agent, on
behalf of itself and the Lenders, a reasonably satisfactory written opinion of
Kirkland & Ellis LLP, counsel for the Borrower (A) addressed to
the Administrative Agent and the Lenders and (B) covering certain matters
relating to the Loan Documents as the Administrative Agent shall reasonably
request, and the Borrower hereby request such counsel to deliver such opinion.

 

(n)                                The Lenders shall have received, to the extent requested,
all documentation and other information required by regulatory authorities
under applicable “know your

 

44

 

customer”
and anti-money laundering rules and regulations, including the USA PATRIOT
Act.

 

ARTICLE V.

Affirmative Covenants

 

From
and after the Effective Date, the Borrower covenants and agrees with each
Lender that, so long as this Agreement shall remain in effect and until the
Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full, unless the Required Lenders shall
otherwise consent in writing, it will and will cause each of the Subsidiaries
to:

 

5.01.       Existence; Compliance with
Laws; Businesses and Properties.

 

(a)                                 Do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its legal existence, except as
otherwise expressly permitted under Section 6.04.

 

(b)                                Do or cause to be done all things necessary to obtain,
preserve, renew, extend and keep in full force and effect the licenses,
permits, franchises, authorizations, patents, copyrights, trademarks and trade
names material to the conduct of its business; maintain and operate such
business as a Permitted Business; comply in all material respects with all
applicable laws, rules, regulations and decrees and orders of any Gaming
Authorities or Governmental Authority, whether now in effect or hereafter
enacted; and except as permitted under Section 6.04, at all times maintain
and preserve all property material to the conduct of such business and keep
such property in good repair, working order and condition (ordinary wear and
tear excepted) and from time to time make, or cause to be made, all needful and
proper repairs, renewals, additions, improvements and replacements thereto
necessary in order that the business carried on in connection therewith may be
properly conducted at all times.

 

5.02.       Insurance.

 

(a)                                 Keep its insurable Mortgaged Properties adequately insured
at all times by financially sound and reputable insurers; maintain such other
insurance, to such extent and against such risks, including fire and other
risks insured against by extended coverage, as is customary with companies in
the same or similar businesses operating in the same or similar locations,
including public liability insurance against claims for personal injury or
death or property damage occurring upon, in, about or in connection with the
use of any properties owned, occupied or controlled by it; and maintain such
other insurance as may be required by law.

 

(b)                                Promptly following the Administrative Agent’s request, cause
all such policies covering any Collateral (except public liability, third
party, product liability and business interruption) to be endorsed or otherwise
amended to include a customary lender’s loss payable endorsement, in form and
substance reasonably

 

45

 

satisfactory to the Administrative
Agent and the Collateral Agent, which endorsement shall provide that, from and
after the Effective Date, if the insurance carrier shall have received written
notice from the Administrative Agent or the Collateral Agent of the occurrence
of an Event of Default, the insurance carrier shall pay all proceeds otherwise
payable to the Borrower or the Loan Parties under such policies directly to the
Collateral Agent; cause all such policies to provide that neither the Borrower,
the Administrative Agent, the Collateral Agent nor any other party shall be a
coinsurer thereunder and, to the extent customarily available at a commercially
reasonable cost, to contain a “Replacement Cost Endorsement”, without
any deduction for depreciation, and such other provisions as the Administrative
Agent or the Collateral Agent may reasonably require from time to time to
protect their interests; deliver certificates of each such policies (and if
reasonably requested, certified copies of all such policies) to the Collateral
Agent; cause each such policy, to the extent customarily available at a
commercially reasonable cost, to provide that it shall not be canceled, modified
or not renewed (i) by reason of nonpayment of premium upon not less than
10 days’ prior written notice thereof by the insurer to the Administrative
Agent and the Collateral Agent (giving the Administrative Agent and the
Collateral Agent the right to cure defaults in the payment of premiums) or (ii) for
any other reason upon not less than 30 days’ prior written notice thereof by
the insurer to the Administrative Agent and the Collateral Agent; deliver to
the Administrative Agent and the Collateral Agent, prior to the cancellation,
modification or non-renewal of any such policy of insurance, a copy of a
renewal or replacement policy (or other evidence of renewal of a policy
previously delivered to the Administrative Agent and the Collateral Agent) together
with evidence reasonably satisfactory to the Administrative Agent and the
Collateral Agent of payment of the premium therefor.

 

(c)                                  If at any time the area in which the Premises (as defined in
the Mortgages) are located is designated (i) a “flood hazard area”
in any Flood Insurance Rate Map published by the Federal Emergency Management
Agency (or any successor agency), obtain flood insurance in such total amount
as the Administrative Agent, the Collateral Agent or the Required Lenders may
from time to time reasonably require, and otherwise comply with the National
Flood Insurance Program as set forth in the Flood Disaster Protection Act of
1973, as it may be amended from time to time, or (ii) a “Zone 1”
area, obtain earthquake insurance in such total amount as the Administrative
Agent, the Collateral Agent or the Required Lenders may from time to time
reasonably require.

 

(d)                                 With respect to any Mortgaged Property, carry and maintain
comprehensive general liability insurance including the “broad form CGL endorsement”
and coverage on an occurrence basis against claims made for personal injury
(including bodily injury, death and property damage) and umbrella liability
insurance against any and all claims, in no event for a combined single limit
of less than $25,000,000, naming the Collateral Agent as an additional insured,
on forms reasonably satisfactory to the Collateral Agent.

 

46

 

(e)                                  Notify the Administrative Agent and the Collateral Agent
promptly whenever any separate insurance concurrent in form or contributing in
the event of loss with that required to be maintained under this Section 5.02
is taken out by any Loan Party; and promptly deliver to the Administrative
Agent and the Collateral Agent a duplicate original copy of such policy or
policies.

 

5.03.       Payment of Obligations and
Taxes.  Pay its Indebtedness
and other obligations that arise after the Effective Date promptly and in
accordance with their terms and pay and discharge promptly when due all material
Taxes, assessments and governmental charges or levies imposed after the
Effective Date upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default, as well as all
lawful claims for labor, materials and supplies or otherwise that, if unpaid,
might give rise to a Lien upon such properties or any part thereof; provided,
however, that such payment and discharge shall not be required with respect to
any such Indebtedness, obligations, Tax, assessment, charge, levy or claim so
long as the validity or amount thereof shall be diligently contested in good
faith by appropriate proceedings and the Borrower shall have set aside on its
books adequate reserves with respect thereto in accordance with GAAP and such
contest operates to suspend collection of the contested obligation, tax,
assessment or charge and enforcement of a Lien and, in the case of a Mortgaged
Property, there is no immediate actual risk of forfeiture of such property.

 

5.04.       Financial Statements,
Reports, etc.  In the case of
the Borrower, furnish to the Administrative Agent, which shall, within five
Business Days, furnish to each Lender:

 

(a)                                  within 120 days after the end of each fiscal year,
commencing with the fiscal year in which the Effective Date occurs its
consolidated and consolidating balance sheet and related statements of income,
stockholders’ equity and cash flows showing the financial condition of the
Borrower and its consolidated Subsidiaries and the Guarantors as of the close
of such fiscal year and the results of its operations and the operations of
such Subsidiaries and the Guarantors during such year (including a schedule
setting forth, on a property by property basis, the income statement, balance
sheet and cash flow statements for each of the hotel, casino and resort
properties owned or leased by the Borrower, the Subsidiaries or the
Guarantors), together with comparative figures for the immediately preceding
fiscal year, all audited by independent public accountants of recognized
standing and accompanied by an opinion of such accountants to the effect that
such consolidated financial statements fairly present the financial condition
and results of operations of the Borrower, its consolidated Subsidiaries and
the Guarantors, on a consolidated and consolidating basis, in accordance with
GAAP consistently applied;

 

(b)                                 within 75 days after the end of each of the first three
fiscal quarters of each fiscal year, commencing with the fiscal quarter in
which the Effective Date occurs, its consolidated and consolidating balance
sheet and related statements of income, stockholders’ equity and cash flows
showing the financial condition of the Borrower and its consolidated
Subsidiaries and the Guarantors as of the close of such fiscal quarter and the
results of its operations and the operations of such Subsidiaries and such
Guarantors during such fiscal quarter and the then elapsed portion of the
fiscal year, together with comparative figures for the same periods 

 

47

 

in the immediately preceding fiscal
year, all certified by one of the Financial Officers of the Borrower, as fairly
presenting the financial condition and results of operations of the Borrower,
its consolidated Subsidiaries and the Guarantors, on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments;

 

(c)                                  concurrently with any delivery of financial statements under
Section 5.04(a) or 5.04(b), a certificate of the accounting firm (in
the case of Section 5.04(a)) (to the extent that the accounting firm is
willing to provide such certificate in accordance with its customary business
practice) or Financial Officer (in the case of Section 5.04(b)) opining on
or certifying such statements (which certificate, when furnished by an
accounting firm, may be limited to accounting matters and disclaim
responsibility for legal interpretations) (i) certifying that no Event of
Default or Default has occurred  as of
the last day of the period to which such financial statements relate, if such
an Event of Default or Default has occurred, specifying the nature and extent
thereof and any corrective action taken or proposed to be taken with respect
thereto and (ii) in the cases of the certificates delivered with respect
to Sections 5.04(a) and 5.04(b) setting forth computations in
reasonable detail satisfactory to the Administrative Agent demonstrating
compliance with the covenants contained in Sections 6.09, 6.10 and 6.11;

 

(d)                                 promptly after the same become publicly available, copies of
all periodic and other reports, proxy statements and other materials filed by
the Borrower, any Subsidiary or any Guarantor with the Securities and Exchange
Commission, or any Governmental Authority succeeding to any or all of the
functions of said Commission, or with any national securities exchange, or
distributed to its shareholders, as the case may be;

 

(e)                                  promptly after the receipt thereof by the Borrower, the
Guarantors or any of their respective Subsidiaries, a copy of any final “management
letter” received by any such Person from its certified public accountants
relating to any deficiency or weakness in accounting practices or in reported
results of the Borrower, any Subsidiary or any Guarantor and the management’s
response thereto to the extent such accountants are willing to provide such
letters;

 

(f)                                    promptly after the request by the Administrative Agent on
its own behalf or on behalf of any Lender, all documentation and other
information that such Lender reasonably requests in order to comply with its
ongoing obligations under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA PATRIOT Act;

 

(g)                                 in the event that the Borrower or any of its ERISA
Affiliates intend to establish, sponsor, maintain or contribute or have any
obligation or liability with respect to any Plan subject to Title IV of ERISA,
Borrower shall promptly, and in any event within 10 Business Days prior to
establishing, maintaining or contributing, as applicable, to such Plan, inform
the Administrative Agent of such intention. Neither the Borrower nor any of its
ERISA Affiliates will establish, sponsor, maintain or contribute to any Plan
that would result in any obligation or liability 

 

48

 

that would result in, or could
reasonably be expected to result in, a Material Adverse Effect;

 

(h)                                 promptly following any request by the Administrative Agent
on its own behalf or on behalf of a Lender, on and after the effectiveness of
the Pension Act, copies of (i) any documents described in Section 101(k)(l) of
ERISA that the Borrower or any of its ERISA Affiliates may request with respect
to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of
ERISA that the Borrower or any of its ERISA Affiliates may request with respect
to any Plan or Multiemployer Plan; provided that if the Borrower or any
of its ERISA Affiliates have not requested such documents or notices from the
administrator or sponsor of the applicable Plan or Multiemployer Plan, the
Borrower or its ERISA Affiliates shall promptly make a request for such
documents or notices from the such administrator or sponsor and shall provide
copies of such documents and notices promptly after receipt thereof; and

 

(i)                                    promptly, from time to time, after reasonable notice is
given, such other information regarding the operations, business affairs and
financial condition of the Borrower, any Subsidiary or any Guarantor, or
compliance with the terms of any Loan Document, as the Administrative Agent may
request.

 

5.05.       Litigation and Other
Notices.  Furnish to the
Administrative Agent (who shall within five Business Days notify the Lenders)
prompt written notice after obtaining knowledge thereof of the following:

 

(a)                                 any Event of Default or Default, specifying the nature and
extent thereof and the corrective action (if any) taken or proposed to be taken
with respect thereto;

 

(b)                                the filing or commencement of any action, suit or
proceeding, whether at law or in equity or by or before any Governmental
Authority, against the Borrower, a Guarantor or any of their respective
Subsidiaries that could reasonably be expected to result in a Material Adverse
Effect;

 

(c)                                 the occurrence of any ERISA Event that, alone or together
with any other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower, the Subsidiaries and the Guarantors in an
aggregate amount exceeding $10,000,000; and

 

(d)                                any other development that has resulted in, or would
reasonably be expected to result in, a Material Adverse Effect.

 

5.06.       Information Regarding
Collateral.

 

(a)                                  Furnish to the Administrative Agent prompt written notice of
any change (i) in any Loan Party’s corporate name, (ii) in the
jurisdiction of organization or formation of any Loan Party, (iii) in any
Loan Party’s identity or corporate structure or (iv) in any Loan Party’s
Federal Taxpayer Identification Number. The Borrower agrees not to effect or
permit any change referred to in the preceding

 

49

 

sentence unless all filings have been
made under the Uniform Commercial Code or otherwise that are required in order
for the Collateral Agent to continue at all times following such change to have
a valid, legal and perfected security interest in all the Collateral secured by
it under any Security Document. The Borrower also agrees promptly to notify the
Administrative Agent if any material portion of the Collateral is damaged or
destroyed.

 

(b)                                 In the case of the Borrower, each year, at the time of
delivery of the annual financial statements with respect to the preceding
fiscal year pursuant to Section 5.04(a), deliver to the Administrative
Agent upon its reasonable request a certificate of a Financial Officer setting
forth the information required pursuant to Section 2 of the Perfection
Certificate or confirming that there has been no change in such information
since the date of the Perfection Certificate delivered pursuant to Section 5.14(i) or
the date of the most recent certificate delivered pursuant to this Section 5.06.

 

5.07.       [Intentionally Left Blank].

 

5.08.       Maintaining Records;
Access to Properties and Inspections; Maintenance of Ratings.  Keep proper books and records and accounts in
which full, true and correct entries in conformity with GAAP and all
requirements of law are made of all dealings and transactions in relation to
its business and activities. Subject to any applicable Gaming Laws, each Loan
Party will, and will cause each of its subsidiaries to, permit any
representatives designated by the Administrative Agent on its own behalf or on
behalf of any Lender (being an accountant, auditor, attorney, valuer or other
professional adviser of the Administrative Agent or such Lender), during normal
business hours and upon reasonable notice, to visit and inspect the financial
records and the properties of such Person at reasonable times and as often as
reasonably requested (but in no event more than twice annually unless a Default
or Event of Default shall have occurred and be continuing) and to make extracts
from and copies of such financial records, and permit any such representatives
designated by the Administrative Agent (on behalf of itself or any Lender) to
discuss the affairs, finances and condition of such Person with the officers
thereof and independent accountants therefor.

 

5.09.       Use of Proceeds.  Use the proceeds of the Loans only for the
purposes specified in Section 2.04.

 

5.10.       Employee Benefits.  (a) Comply in all material respects with
the applicable provisions of ERISA and the Code, solely as it relates to Plans,
and (b) furnish to the Administrative Agent as soon as possible after, and
in any event within ten days after any responsible officer of the Borrower or
any ERISA Affiliate knows or has reason to know that, any ERISA Event has
occurred that, alone or together with any other ERISA Event could reasonably be
expected to result in liability of the Borrower or any ERISA Affiliate in an
aggregate amount exceeding $10,000,000, a statement of a Financial Officer of
the Borrower setting forth details as to such ERISA Event and the action, if
any, that the Borrower proposes to take with respect thereto.

 

5.11.       Compliance with
Environmental Laws.  Comply,
and cause all lessees and other Persons occupying its properties to comply, in
all material respects with all Environmental Laws applicable to its operations
and properties; obtain and renew all material environmental permits 

 

50

 

necessary for its operations
and properties; and conduct any required remedial action in material compliance
with Environmental Laws; provided, however, that none of the Borrower,
any Subsidiary or any Guarantor shall be required to undertake any such
remedial action to the extent that its obligation to do so is being contested
in good faith and by proper proceedings and appropriate reserves are being
maintained with respect to such circumstances in accordance with GAAP.

 

5.12.       Environmental Reporting.  (a) Borrower, any Subsidiary or any
Guarantor shall give Lender prompt notice (containing reasonable detail) upon
obtaining knowledge of any matter that would reasonably be expected to result
in the Borrower, any Subsidiary or any Guarantor incurring Environmental
Liabilities in excess of $1,000,000 in the aggregate, and (b) if (i) notice
is provided to Lender under Section 5.12(a), or (ii) a breach of Section 3.15
or Section 5.11 shall have occurred and be continuing for more than 30
days without the Borrower, any Subsidiary or any Guarantor commencing
activities reasonably likely to cure such breach, at the written request of the
Required Lenders through the Administrative Agent, provide to the Lenders
within 45 days after such notice or request, at the expense of the Loan
Parties, an environmental site assessment report regarding the matters which
are the subject of such notice or request prepared by an environmental
consulting firm reasonably acceptable to the Administrative Agent and
indicating the presence or absence of Hazardous Materials and the estimated cost
of any compliance or remedial action in connection with such notice or breach.

 

5.13.       Preparation of
Environmental Reports.  If a
Default caused by reason of a breach of Section 3.16 or Section 5.11
shall have occurred and be continuing for more than 30 days without the
Borrower, any Subsidiary or any Guarantor commencing activities reasonably
likely to cure such Default, at the written request of the Required Lenders
through the Administrative Agent, provide to the Lenders within 45 days after
such request, at the expense of the Loan Parties, an environmental site
assessment report regarding the matters which are the subject of such Default
prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous
Materials and the estimated cost of any compliance or remedial action in
connection with such Default.

 

5.14.       Further Assurances.
Take the following actions:

 

(a)                                  The Borrower shall execute any and all further documents,
financing statements, agreements and instruments, and take all further action
(including filing Uniform Commercial Code and other financing statements,
mortgages, ship mortgages and deeds of trust) that may be required under
applicable law, or that the Required Lenders, the Administrative Agent or the
Collateral Agent may reasonably request, in order to effectuate the
transactions contemplated by the Loan Documents and in order to grant,
preserve, protect and perfect the validity and priority of the security interests
created or intended to be created by the Security Documents. In addition, from
time to time, the Borrower will, at its cost and expense, promptly secure the
Obligations by pledging or creating, or causing to be pledged or created,
perfected security interests with respect to such of its assets and properties
as the Administrative Agent or the Required Lenders shall reasonably designate
(it being understood that it is the intent of the parties that the Obligations
shall be secured by substantially all the assets of the Borrower and the
Guarantors (including real and other properties acquired subsequent to the 

 

51

 

Effective Date with a fair market value
in excess of $2,500,000)). Such security interests and Liens will be created
under the Security Documents and other security agreements, mortgages
(including ship mortgages and vessel security agreements), deeds of trust and
other instruments and documents in form and substance reasonably satisfactory to
the Collateral Agent, and the Borrower shall deliver or cause to be delivered
to the Lenders all such instruments and documents (including legal opinions,
title insurance policies and lien searches) as the Collateral Agent shall
reasonably request to evidence compliance with this Section. The Borrower and
the Guarantors agree to provide such evidence as the Collateral Agent shall
reasonably request as to the perfection and priority status of each such
security interest and Lien. In furtherance of the foregoing, the Borrower and
each of the Guarantors will give prompt notice to the Administrative Agent of
the acquisition by it and, in the case of the Borrower, including the
acquisition by any of the subsidiaries, of any real property (or any interest
in real property) or gaming vessel (or any interest in any gaming vessel)
having a value in excess of $2,500,000.

 

(b)                                 Upon the formation by any of the Loan Parties of any
subsidiary and subject to Gaming Authority approval to the extent required, the
Borrower shall cause the Person so acquired or formed (each an “Additional
Guarantor”), as the case may be to become a Guarantor of the Obligations.
Such Additional Guarantor shall become a Loan Party by executing the Guarantee
and Collateral Agreement and each applicable Security Document in favor of the
Collateral Agent. In addition, (i) such Additional Guarantor shall execute
and deliver such agreements and documents as the Administrative Agent,
Collateral Agent or the Required Lenders may reasonably request to grant a
perfected Lien in respect of substantially all of its real and personal
property in favor of the Collateral Agent and the Lenders, (other than real
property with a fair market value (as reasonably determined by the Borrower) of
$2,500,000, and (ii) the Loan Parties owning equity interests in such
Additional Guarantor shall pledge all such equity interests in such Additional
Guarantor (subject to any necessary Gaming Authority approval, which the
Borrower agrees to use its best efforts to obtain).

 

(c)                                  Promptly following the Administrative Agent’s reasonable
request, subject to Gaming Authority approval to the extent required, the
Borrower shall execute, or shall cause its relevant subsidiaries to execute any
and all further related documents and take all further related action that may
be required under applicable law, or that the Required Lenders, the
Administrative Agent or the Collateral Agent may request in their sole
discretion, in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, preserve, protect and perfect the validity and
priority of the security interests created or intended to be created by the
Security Documents.

 

(d)                                 Promptly following the Administrative Agent’s reasonable
request, subject to Gaming Authority approval to the extent required, execute
Ship Mortgages, Vessel Security Agreements any and all further related
documents and take all further related action that may be required under
applicable law, or that the Required Lenders, the Administrative Agent or the
Collateral Agent may request 

 

52

 

in their sole discretion, in order to
effectuate the transactions contemplated by the Loan Documents and in order to
grant, preserve, protect and perfect the validity and first priority of the
security interests created or intended to be created by the Security Documents,
in each case subject to Gaming Authority approval.

 

5.15.       Approvals to Security
Documents.  In the event that
the Borrower has not obtained all required approvals of all relevant Gaming
Authorities to the Security Documents prior to the Effective Date (or, if
applicable, at such date on which a Subsidiary becomes a Guarantor or grants a
Lien under the Security Documents), the Borrower shall use commercially
reasonable efforts to promptly obtain, and shall in any event receive, such
approvals within 120 days (which date may be extended for up to an additional
30 days in the sole discretion of the Administrative Agent) following the
Effective Date (or, if applicable, at such date on which a Subsidiary becomes a
Guarantor or grants a Lien under the Security Documents) or such later date as
the Administrative Agent shall determine in its reasonable discretion. The
Administrative Agent and the Lenders acknowledge that all such approvals are
within the discretion of the relevant Gaming Authorities and agree that no
pledge of, nor restriction upon the hypothecation or transfer of, the equity
securities of the Borrower, the Guarantors or any of their respective
subsidiaries which are Nevada, New Jersey, Mississippi, Louisiana or Indiana
gaming licensees may be effective unless and until the Borrower or the
Guarantors, as applicable, has made all necessary applications to and procure
all necessary consents, approvals and favorable rulings of the Nevada Gaming
Commission, the NJ Commission, the Indiana Gaming Commission, the Mississippi
Gaming Commission, the Louisiana Gaming Control Board and any other relevant
Gaming Authorities, as applicable. The Administrative Agent and the Lenders
also acknowledge that further proceedings may be required for the
Administrative Agent and the Lenders to exercise any remedies set forth in any
Security Documents.

 

5.16.       Disqualification.  If, however, the Borrower is unable to get
approvals within the 120 day period specified above (together with any
extensions granted in accordance with this Section 5.15), due to any
Disqualification, the time periods specified herein shall be automatically
extended such that the required approvals shall be obtained 120 days (which
date may be extended for up to an additional 30 days in the sole discretion of
the Administrative Agent) following the date on which any such Disqualification
ceases to exist.

 

ARTICLE VI.

Negative Covenants

 

From
and after the Effective Date, the Borrower covenants and agrees with each
Lender that, so long as this Agreement shall remain in effect and until the
Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan
Document have been paid in full, unless the Required Lenders shall otherwise
consent in writing, it will not, and will not cause or permit any of the
Subsidiaries to:

 

6.01.       Indebtedness.  Incur, create, assume or permit to exist any
Indebtedness, except:

 

(a)                                  Indebtedness of the Borrower and its subsidiaries existing
on the Effective Date and set forth in Schedule 6.01 and any Indebtedness
evidencing a refinancing, refunding, renewal or extension of such Indebtedness;

 

53

 

(b)                                 Indebtedness created hereunder and under the other Loan
Documents;

 

(c)                                  intercompany Indebtedness of the Borrower, the Subsidiaries
and the Guarantors to the extent permitted by Section 6.03(c);

 

(d)                                 Indebtedness under performance bonds or with respect to
workers’ compensation claims, property casualty or liability insurance,
take-or-pay obligations in supply arrangements, self insurance obligations,
performance, bid and surety bonds and completion guaranties in each case
incurred in the ordinary course of business;

 

(e)                                  Indebtedness incurred by the Borrower, the Subsidiaries or
the Guarantors with respect to Hedging Agreements in the ordinary course of
business and not for speculative purposes;

 

(f)                                    (i) Indebtedness incurred by the Borrower, the
Subsidiaries or the Guarantors in respect of netting services, overdraft
protections and otherwise in connection with deposit accounts, in each case,
other than Indebtedness for borrowed money and (ii) Indebtedness arising
from the honoring of a check or draft drawn against insufficient funds;

 

(g)                                 guarantees and any other contingent obligations of the
Borrower, the Subsidiaries and the Guarantors in respect of Indebtedness
otherwise permitted hereunder (both before or after any liability associated
therewith becomes fixed);

 

(h)                                 Indebtedness which may be deemed to exist pursuant to any
guaranties, letters of credit or similar obligations incurred in the ordinary
course of business;

 

(i)                                     Indebtedness incurred by the Borrower or any of its
Subsidiaries arising from agreements providing for indemnification, holdbacks,
working capital or other purchase price adjustments, earn-outs, non-compete
agreements, deferred compensation or similar obligations;

 

(j)                                     Indebtedness with respect to Capital Lease Obligations in an
aggregate amount, together with all Indebtedness incurred pursuant to clauses (l) and
(m) of this Section 6.01, not to exceed at any one time outstanding
$20,000,000;

 

(k)                                  Indebtedness owed to any Person providing property,
casualty, business interruption or liability insurance to the Borrower, any
Subsidiary or any Guarantor, so long as such Indebtedness shall not be in
excess of the amount of the unpaid cost of, and shall be incurred only to defer
the cost of, such insurance for the annual period in which such Indebtedness is
incurred and such Indebtedness shall be outstanding only during such year;

 

(l)                                     Purchase money Indebtedness in an aggregate amount, together
with all Indebtedness incurred pursuant to clauses (j) and (m) of
this Section 6.01, not to exceed at any one time outstanding $20,000,000;

 

54

 

(m)                              Indebtedness in respect of slot machine financing
arrangements in an aggregate amount, together with all Indebtedness incurred
pursuant to clauses (j) and (l) of this Section 6.01, not to
exceed at any one time outstanding $20,000,000; and

 

(n)                                other Indebtedness of the Borrower, the Subsidiaries  and the Guarantors (not listed in Sections
6.01(a) through 6.01(m)) in an aggregate principal amount not exceeding
$10,000,000 at any time outstanding.

 

6.02.       Liens.  Create, incur, assume or permit to exist any
Lien on any property or assets (including Equity Interests or other securities
of any Person, including the Borrower or any Subsidiary now owned or hereafter
acquired by it or on any income or revenues or rights in respect of any thereof
(collectively referred to in this Section 6.02 as the “Assets”)),
except:

 

(a)                                 Liens on Assets of the Borrower, the Subsidiaries and the
Guarantors existing on the Effective Date and set forth in Schedule 6.02 (or to
the extent not listed in Schedule 6.02, where the fair market value of the
Assets to which such Lien attaches is less than $5,000,000); provided
that such Liens shall secure only those obligations which they secure on the
Effective Date;

 

(b)                                any Lien created or otherwise permitted under the Loan
Documents;

 

(c)                                 Liens for taxes not yet due or which are being contested in
compliance with Section 5.03;

 

(d)                                landlord’s, banks’, carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business (or imposed by law) and securing obligations that are not due and
payable or which are being contested in compliance with Section 5.03;

 

(e)                                 pledges and deposits made in the ordinary course of business
in compliance with workmen’s compensation, unemployment insurance and other
social security laws or regulations;

 

(f)                                   pledges or deposits of cash and cash equivalents securing
deductibles, self-insurance, co-payment, co-insurance, retentions or similar
obligations to providers of property, casualty or liability insurance in the
ordinary course of business;

 

(g)                                Liens on insurance policies and the proceeds thereof
securing the financing of the premiums with respect thereto permitted under Section 6.01
and rights which may arise under state insurance guarantee funds relating to
any such insurance policy;

 

(h)                                deposits to secure the performance of bids, trade contracts
(other than for Indebtedness), leases (other than Capital Lease Obligations),
subleases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature incurred in the ordinary course of
business;

 

(i)                                    zoning restrictions, easements, covenants, conditions,
environmental and other land use laws, rules and regulations, utility
agreements, reservations, encroachments, rights-of-way, restrictions on use of
real property, minor 

 

55

 

imperfections of title, minor survey
defects and other similar encumbrances incurred in the ordinary course of
business which, in the aggregate, are not substantial in amount and do not
materially detract from the value of the Assets subject thereto or interfere
with the ordinary conduct of the business of the Borrower, any of its
Subsidiaries or any of the Guarantors;

 

(j)                                    Liens securing Indebtedness permitted under Sections
6.01(j), (l) and (m); provided, that (i) such Liens secures Indebtedness
incurred to finance the acquisition, construction or improvement of any
equipment, machinery, fixed or capital assets or Capital Lease Obligations and
Synthetic Lease Obligations, (ii) such Liens are incurred, and the
Indebtedness secured thereby is created, within 180 days after such acquisition
(or construction), (iii) the Indebtedness secured thereby does not exceed
100% of the lesser of the cost or the fair market value of such real property,
improvements, equipment or machinery at the time of such acquisition (or
completion of construction or improvement) and (iv) such security
interests do not apply to any property or assets of the Borrower, any
Subsidiary or any Guarantor other than the equipment, machinery, fixed or
capital assets which are acquired, constructed or improved;

 

(k)                                 any interest or title of a lessor or sublessor under any
lease of real estate entered into by the Borrower, any Subsidiary or any
Guarantor in the ordinary course of business;

 

(l)                                    ground leases in respect of real property (and the rights of
landlords thereunder) on which facilities owned or leased by the Borrower or
its Subsidiaries are located;

 

(m)                              Liens in favor of customs and revenue authorities arising as
a matter of law to secure the payment of customs duties in connection with the
importation of goods;

 

(n)                                receipt of progress payments and advances from customers in
the ordinary course of business to the extent the same creates a Lien on the
related inventory and proceeds thereof;

 

(o)                                Liens solely on cash earnest money deposits made by the
Borrower, any Subsidiary or any Guarantor in connection with a letter of intent
or purchase agreement permitted hereunder;

 

(p)                                purported Liens evidenced by precautionary Uniform
Commercial Code financing statements filed in the ordinary course of business;

 

(q)                                Liens securing reimbursement obligations with respect to
documentary letters of credit;

 

(r)                                   Liens on deposits or other accounts securing up to 105% of
the face amount of any issued and outstanding letters of credit;

 

56

 

(s)                                 licenses of patents, trademarks and other intellectual
property rights granted by the Borrower, the Subsidiaries or the Guarantors in
the ordinary course of business;

 

(t)                                   Liens arising out of consignment or similar arrangements for
the sale by the Borrower, the Subsidiaries or the Guarantors of goods through
third parties in the ordinary course of business;

 

(u)                                Liens arising out of judgments or awards which do not result
in a Default or Event of Default; and

 

(v)                                Other Liens of the Borrowers, the Subsidiaries and the
guarantors (not listed in Sections 6.02(a) through 6.02(u)) securing
Indebtedness and other obligations in an aggregate principal amount not
exceeding $10,000,000 at any time outstanding.

 

This Section 6.02
shall not be construed as a restriction upon the hypothecation or transfer of
the equity securities of any gaming licensee unless and until all required
approvals of relevant Gaming Authorities have been obtained.

 

6.03.       Investments, Loans and
Advances.  Purchase, hold or
acquire any Equity Interests, evidences of indebtedness or other securities of,
make or permit to exist any loans or advances to, or make or permit to exist
any investment in, any other Person, except:

 

(a)                                 investments by the Borrower, the Subsidiaries and the
Guarantors existing on the Effective Date in the Equity Interests of the
Guarantors;

 

(b)                                Permitted Investments;

 

(c)                                 loans or advances made (i) among the Borrowers and the
Guarantors and (ii) by any Subsidiary that is not a Guarantor to the
Borrower or any of its Subsidiaries;

 

(d)                                investments received in connection with trade credit or
notes receivable and investments received in satisfaction or partial
satisfaction thereof from financially troubled account debtors or the
bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with, customers and suppliers, in each case in the ordinary course of
business;

 

(e)                                 deposits, prepayments and other credits to suppliers made in
the ordinary course of business;

 

(f)                                   Investments in any Person that is not a Subsidiary of the
Borrower, to the extent such Person becomes a Guarantor;

 

(g)                                each Loan Party may make investments arising out of the
receipt by such party of non-cash consideration for any Asset Sale permitted
hereunder;

 

(h)                                guarantees and any other contingent obligations permitted
under Section 6.01(g);

 

57

 

(i)                                    investments consisting of Capital Expenditures permitted
under Section 6.09;

 

(j)                                    the Borrower and the Guarantors may make investments in
community development projects to the extent required by any Governmental
Authority (including the Casino Reinvestment Development Authority); and
specifically as set forth in the Lease Agreement among the City of Evansville,
Indiana, Aztar Indiana Gaming Company, LLC and Aztar (as such Lease Agreement
is amended from time to time); and

 

(k)                                 any investment in a Permitted Business so long as a majority
of the Board and the Investment Committee of the Board approves such
investment.

 

6.04.       Mergers, Consolidations,
Sales of Assets and Acquisitions.

 

(a)                                 Merge into or consolidate with any other Person, or permit
any other Person to merge into or consolidate with it, or sell, transfer, lease
or otherwise dispose of (in one transaction or in a series of transactions) all
or substantially all the assets (whether now owned or hereafter acquired) of
the Borrower or less than all the Equity Interests of any Subsidiary or any
Guarantor, or purchase, lease or otherwise acquire (in one transaction or a
series of transactions) all or any substantial part of the assets of any other
Person, except that (i) the Borrower, any Subsidiary and any Guarantor may
purchase and sell or swap inventory in the ordinary course of business, (ii) if
at the time thereof and immediately after giving effect thereto no Event of
Default or Default shall have occurred and be continuing (w) any wholly
owned Guarantor may merge into the Borrower in a transaction in which the
Borrower is the surviving corporation, (x) any wholly owned Guarantor may
merge into or consolidate with any other wholly owned Guarantor in a
transaction in which the surviving entity is a wholly owned Guarantor and no
Person other than the Borrower, a wholly owned Guarantor receives any
consideration, (y) any Guarantor may merge into or consolidate with any
other Guarantor in a transaction in which the surviving entity is an Guarantor
and no Person other than the Borrower, a wholly owned Guarantor receives any
consideration and (z) any Loan Party may purchase, lease or otherwise
acquire all or substantially all of the assets of any other Loan Party or sell,
transfer, lease or dispose of all or substantially all of its assets to any
other Loan Party, (iii) the Loan Parties may purchase assets in connection
with and enter into the transaction contemplated by the Purchase Agreement, (iv) the
Loan Parties may purchase the Equity Interest in Greenville held by (A) Rainbow
Entertainment, Inc. or (B) William J. Yung, III or any of their
Affiliates, successors, assignees or transferees for a purchase price not to
exceed $7,000,000 and (v) to the extent not otherwise permitted by the
terms of this Agreement, if at the time thereof and immediately after giving
effect thereto no Event of Default or Default shall have occurred and be
continuing, the Loan Parties may purchase other assets, provided that,
the aggregate amount of consideration paid for assets purchased pursuant to
this Section 6.04(a)(v) shall not exceed (x) $10,000,000 in any
Fiscal Year or (y) $20,000,000 during the term of this Agreement.

 

58

 

(b)                                Other than in the case of
mergers effected pursuant to Section 6.04(a)(ii), make any Asset Sale
otherwise permitted under Section 6.04(a) unless (i) such Asset
Sale is for consideration at least 75% of which is cash, (ii) such
consideration is at least equal to the fair market value of the assets being
sold, transferred, leased or disposed of and (iii) the fair market value
of all assets sold, transferred, leased or disposed of pursuant to this Section 6.04(b) shall
not exceed $5,000,000 in the aggregate; provided that the foregoing
restrictions of clauses (i) and (ii) of this Section 6.04(b) shall
not apply to transfers of condemned property as a result of the exercise of “eminent
domain” or other similar policies to the respective Governmental Authority that
has condemned such property.

 

This Section 6.04
shall not be construed as a restriction upon the hypothecation or transfer of
the equity securities of any gaming licensee unless and until all required
approvals of relevant Gaming Authorities have been obtained.

 

6.05.       Restricted Payments;
Restrictive Agreements.

 

(a)                                 Declare or make, or agree to declare or make, directly or
indirectly, any Restricted Payment (including pursuant to any Synthetic
Purchase Agreement), or incur any obligation (contingent or otherwise) to do
so; provided, however, that (i) any Subsidiary may
declare and pay dividends or make other distributions ratably to its equity
holders, (ii) the Borrower, the Subsidiaries and the Guarantors may make
Restricted Payments in the form of distributions payable solely in the common
stock or other common Equity Interests of such Person, (iii) any Guarantor
may make Permitted Tax Distributions; provided, however, that all Restricted
Payments made to Greenville pursuant to this clause (iii) are used by the
recipients thereof for the purposes specified herein within 60 days of the
receipt thereof, (iv) the Borrower, any Subsidiary or any Guarantor may
repurchase or redeem common stock or other common Equity Interests of the
Borrower, any Subsidiary or any Guarantor to the extent required by any Gaming
Authority to prevent a License Revocation or otherwise and (v) Greenville
may make distributions to the minority holders of its Equity Interests to the
extent required by its operating agreement as in effect on the Effective Date
(or as amended in a manner approved by the Required Lenders).

 

(b)                                Enter into, incur or permit to exist any agreement or other
arrangement that prohibits, restricts or imposes any condition upon (i) the
ability of the Borrower, any Subsidiary or any Guarantor to create, incur or
permit to exist any Lien upon any of its property or assets, or (ii) the
ability of any Subsidiary or any Guarantor to pay dividends or other
distributions with respect to any of its Equity Interests or to make or repay
loans or advances to the Borrower or any other Subsidiary or to Guarantee
Indebtedness of the Borrower or any other Subsidiary; provided that (A) the
foregoing shall not apply to restrictions and conditions imposed by law, any
Gaming Authority or by any Loan Document or an Indebtedness permitted under Section 6.01(a),
(B) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a subsidiary pending such sale,
provided that such restrictions and conditions apply only to the
subsidiary that is to be sold and such sale is permitted hereunder, (C) clause
(i) of 

 

59

 

the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness or effecting a refinancing of Indebtedness permitted hereunder if
such restrictions or conditions apply only to the property or assets securing
such Indebtedness, (D) clause (i) of the foregoing shall not apply to
customary provisions in leases and other contracts restricting the assignment
thereof, (E) clause (i) of the foregoing shall not apply to software
and other Intellectual Property licenses pursuant to which a Loan Party or
Subsidiary is the licensee of the relevant software or Intellectual Property,
as the case may be (in which case, any prohibition or limitation shall relate
only to the assets subject of the applicable license), (F) clause (i) of
the foregoing shall not apply to prohibitions and limitations in effect on the
date hereof and listed on Schedule 6.05, (G) clause (i) of the
foregoing shall not apply to customary provisions contained in joint venture
agreements and other similar agreements applicable to joint ventures permitted
hereby, (H) clause (i) of the foregoing shall not apply to customary
provisions restricting the subletting or assignment of any lease governing a
leasehold interest, (I) clause (i) of the foregoing shall not apply
to customary restrictions and conditions contained in any agreement relating to
an asset sale permitted by Section 6.04, (J) clause (i) of the
foregoing shall not apply to any agreement in effect at the time any Person
becomes a subsidiary of the Borrower or an Guarantor, so long as such agreement
was not entered into in contemplation of such Person becoming a subsidiary of
the Borrower or an Guarantor and (K) clause (i) of the foregoing
shall not apply to any contractual obligations incurred in the ordinary course
of business and on customary terms which limit Liens on the assets subject to
the applicable contractual obligation.

 

6.06.       Transactions with
Affiliates.  Except for
transactions between or among Loan Parties, sell or transfer any property or
assets to, or purchase or acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except that (i) the
Borrower, any Subsidiary or any Guarantor may engage in any of the foregoing
transactions in the ordinary course of business on terms and conditions not
less favorable to the Borrower, such Subsidiary or such Guarantor than could be
obtained on an arm’s-length basis from unrelated third parties, (ii) the
Borrower, the Subsidiaries and the Guarantors may engage in the transactions
expressly permitted by Sections 6.04 and 6.05, (iii) the Borrower, any
Subsidiary and any Guarantor may provide reasonable indemnification rights and
directors’ and officers’ liability insurance coverage to any of its or its
subsidiaries’ directors and officers, and (iv) Affiliates may make
contemporaneous purchase and/or sales of assets, Capital Stock, bonds, notes,
debentures or other debt securities, and bank loans, participations or similar
obligations, of the Borrower.

 

6.07.       Business of the Borrower,
the Guarantors and Subsidiaries. 
The Borrower, each Subsidiary and each Guarantor, shall not engage at
any time in any business or business activity other than a Permitted Business.

 

6.08.       Other Indebtedness and
Agreements.  Permit (i) any
waiver, supplement, modification, amendment, termination or release of any
indenture, instrument or agreement pursuant to which any Material Indebtedness
of the Borrower, any of the Subsidiaries or any of the Guarantors is
outstanding if the effect of such waiver, supplement, modification, amendment,
termination or release would be materially adverse to the Borrower, any of the
Subsidiaries, any of the

 

60

 

Guarantors or the Lenders or
(ii) any material waiver, supplement, modification or amendment of (x) its
certificate of incorporation, by-laws, operating, management or partnership
agreement or other organizational documents, (y) an agreement set forth on
Schedule 6.08(a) or (z) any lease between the Borrower or a Guarantor
and an Affiliate of the Borrower or such Guarantor that has the effect of
increasing the rental amounts payable thereunder, in each case, to the extent
any such waiver, supplement, modification or amendment would be adverse to the
Lenders in any material respect.

 

6.09.       Capital Expenditures.

 

(a)                                  Permit the aggregate amount of Capital Expenditures made by
the Borrower, the Subsidiaries and the Guarantors to exceed the amounts set
forth below for each fiscal year set forth below:

 

	
  Fiscal
  Year

  	
   

  	
  Amount ($)

  	
   

  
	
  Effective Date through December 31, 2010

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  January 1, 2011 through December 31,
  2011

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  January 1, 2012 through December 31,
  2012

  	
   

  	
  $

  	
  50,000,000

  	
   

  

 

(b)                                 Notwithstanding anything to the contrary contained in clause
(a) above, to the extent that the aggregate amount of Capital Expenditures
made by the Borrower, the Subsidiaries and the Guarantors in any fiscal year
pursuant to Section 6.09(a) is less than the maximum amount of
Capital Expenditures permitted by Section 6.09(a) with respect to
such fiscal year, the amount of such difference (the “Rollover Amount”) may be
carried forward and used to make additional Capital Expenditures in the
immediately succeeding fiscal year; provided that, Capital Expenditures
in any fiscal year shall be counted against the base amount set forth in Section 6.09(a) with
respect to such fiscal year prior to being counted against any Rollover Amount
available with respect to such fiscal year.

 

(c)                                  Notwithstanding anything to the contrary contained in
clauses (a) or (b) above, the Borrower, the Subsidiaries and the
Guarantors may make additional Capital Expenditures not to exceed $10,000,000
in the aggregate during the term of this Agreement, which amount may be in
addition to any amounts otherwise permitted by Section 6.09(a) or (b) and
shall not be a reduction of any such amounts.

 

6.10.       Fixed Charge Coverage
Ratio.  Permit the Fixed
Charge Coverage Ratio for any period of four consecutive fiscal quarters of the
Borrower ending on the last day of any fiscal quarter to be less than 2.00 to
1.00.

 

6.11.       Leverage Ratio.  Permit the Leverage Ratio for any period of
four consecutive fiscal quarters of the Borrower ending on the last day of any
fiscal quarter to be greater than 4.25 to 1.00.

 

61

 

6.12.       Minimum Liquidity.  Permit the sum of (i) all cash of the
Borrower, the Subsidiaries and the Guarantors, (ii) all Permitted
Investments of the Borrower, the Subsidiaries and the Guarantors and (iii) the
aggregate unused amount of the Revolving Commitments, to be less than (x) $25,000,000
in the aggregate during the period from the Effective Date through the first
anniversary of the Effective Date and (y) $10,000,000 in the aggregate
during the period from the first anniversary of the Effective Date through the
second anniversary of the Effective Date.

 

6.13.       Fiscal Year.  With respect to the Borrower, change their
fiscal year-end to a date other than December 31.

 

6.14.       Sale and Leaseback
Transaction. Enter into any arrangement, directly or indirectly,
with any Person whereby it shall sell or transfer any property, real or
personal, used or useful in its business, whether now owned or hereafter acquired,
and thereafter rent or lease such property or other property which it intends
to use for substantially the same purpose or purposes as the property being
sold or transferred unless (a) the sale or transfer of such property is
permitted by Section 6.04 such arrangement is consummated for fair value
as determined at the time of consummation in good faith by the Borrower (which
such determination may take into account any retained interest or other
investment of the Borrower or its Subsidiaries in connection with, and any
other material economic terms of, such arrangement) and (b) any Capital
Lease Obligations or Synthetic Lease Obligations or Liens arising in connection
therewith are permitted by Sections 6.01 and 6.02, as the case may be.

 

ARTICLE VII.

Events of Default

 

In case of the happening
of any of the following events first occurring on or after the Effective Date
(each, an “Event of Default”):

 

(a)                                 any representation or warranty made or deemed made in or in
connection with any Loan Document, or any representation, warranty contained in
any report, certificate, financial statement or other instrument furnished
pursuant to any Loan Document, shall prove to have been false or misleading in
any material respect when so made, deemed made or furnished;

 

(b)                                default shall be made in the payment of any principal of any
Loan when and as the same shall become due and payable, whether at the due date
thereof or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

 

(c)                                 default shall be made in the payment of any interest on any
Loan or any Fee or any other amount (other than an amount referred to in (b) above)
due and payable under any Loan Document, when and as the same shall become due
and payable, and such default shall continue unremedied for a period of 3
Business Days;

 

(d)                                default shall be made in the due observance or performance
by the Borrower, any Subsidiary or any Guarantor of any covenant, condition or
agreement contained in Section 5.01(a), 5.05(a), 5.09 or in ARTICLE VI;

 

62

 

(e)                                 default shall be made in the due observance or performance
by the Borrower, any Subsidiary or any Guarantor of any covenant, condition or
agreement contained in any Loan Document (other than those specified in (b), (c) or
(d) above) and such default shall continue unremedied for a period of 30 days
(or 10 days if such default occur under Sections 5.14(a) to (d)) after
notice thereof from the Administrative Agent or any Lender to the Borrower;

 

(f)                                   (i) the Borrower, any Subsidiary or any Guarantor shall
fail to pay any principal or interest due in respect of any Material
Indebtedness, when and as the same shall become due and payable or (ii) any
other event or condition occurs that results in any Material Indebtedness
becoming due prior to its scheduled maturity, in each case, taking into account
any period of grace specified in the instrument or agreement under which such
Material Indebtedness was created, as a result of a default or event of default
(or similar event) or that enables or permits (with or without the giving of
notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any
Material Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity as a result
of a default or event of default (or similar event); provided that this clause (ii) shall
not apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness; provided
that this Section (f) shall not apply to Material Indebtedness in
respect of purchase money or vendor financing if such failure is a result of a
good faith dispute with the holders of such Indebtedness and such failure is
remedied or waived by the holders of such Indebtedness;

 

(g)                                one or more unstayed judgments shall be rendered against the
Borrower, any Subsidiary, any Guarantor or any combination thereof for a
liability (not part or fully covered by insurance or effective indemnity) and
the same shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to levy upon assets or properties of the Borrower,
any Subsidiary or any Guarantor to enforce any such judgment and such judgment
either (i) is for the payment of money in an aggregate amount in excess of
$25,000,000 (to the extent not adequately covered by insurance (less any
deductible) in respect of which a solvent, unaffiliated and reputable insurance
company has not denied coverage in writing) or (ii) is for injunctive
relief and would reasonably be expected to result in a Material Adverse Effect;

 

(h)                                any Guarantee under the Guarantee and Collateral Agreement
for any reason shall cease to be in full force and effect (other than in
accordance with its terms), or any Guarantor shall deny in writing that it has
any further liability under the Guarantee and Collateral Agreement (other than
as a result of the discharge of such Guarantor in accordance with the terms of
the Loan Documents);

 

(i)                                    at any time (i) the Guarantee and Collateral Agreement
with respect to any Guarantor for any reason, other than the satisfaction in
full of all Obligations, shall cease to be in full force and effect (other than
in accordance with its terms) 

 

63

 

or shall be declared to be null and
void or any Guarantor shall repudiate its obligations thereunder, (ii) this
Agreement, any Security Document or any other Loan Document ceases to be in
full force and effect (other than by reason of the satisfaction in full of the
Obligations in accordance with the terms hereof) or shall be declared null and
void, or the Collateral Agent shall not have or shall cease to have a valid and
perfected Lien in any Collateral purported to be covered by the Security
Documents with the priority required by the Security Document, or (iii) any
Loan Party shall contest the validity or enforceability of any Loan Document,
or the Liens and claim priorities provided for in the Loan Documents, in
writing or deny in writing that it has any further liability, including with
respect to future advances by Lenders, under any Loan Document; provided
that, notwithstanding anything to the contrary herein, the parties hereto
acknowledge that there is jurisprudence indicating that a vessel serving as a
riverboat casino may not be a vessel for purposes of the Ship Mortgage Act,
such that if a court were to determine that a vessel covered by any Ship
Mortgage does not constitute a vessel for purposes of the Ship Mortgage Act,
the Ship Mortgage Act would not be applicable to such vessel, the Ship Mortgage
applicable to such vessel would not be enforceable and such Ship Mortgage would
not constitute a valid preferred mortgage lien on such vessel, and,
accordingly, such failure of any vessel covered by a Ship Mortgage to be
secured by a valid preferred mortgage lien under the Ship Mortgage Act shall
not result in any breach by the Borrower of any representations, warranties,
covenants or further assurances concerning same or resulting in any Event of
Default, so long as the related Vessel Security Agreement is in full force and
effect and no Loan Party has contested the validity or enforceability of such
Vessel Security Agreement;

 

(j)                                    any License Revocation shall have occurred and remains
continuing for more than five Business Days;

 

(k)                                 any termination of any lease (as a result of an event of
default thereunder) which is the subject of a leasehold mortgage or leasehold
deed to trust securing the Obligations, or of the charter party lease of the
vessel used in connection with Greenville’s Lighthouse Point Casino gaming
operations shall have occurred in each case, where such termination would have
a Material Adverse Effect;

 

(l)                                    an
involuntary proceeding shall be commenced or an involuntary petition shall be
filed in a court of competent jurisdiction seeking (i) relief in respect
of the Borrower, any Subsidiary or any Guarantor, or of a substantial part of
the property or assets of the Borrower, a Subsidiary or a Guarantor, under the
Bankruptcy Code, or any other Federal, state or foreign bankruptcy, insolvency,
receivership or similar law, (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower, any
Subsidiary or any Guarantor or for a substantial part of the property or assets
of the Borrower, a Subsidiary or a Guarantor or (iii) the winding-up or
liquidation of the Borrower, any Subsidiary or any Guarantor; and in each case
such proceeding or petition shall continue undismissed, unbonded or
undischarged for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

 

64

 

(m)                              the
Borrower, any Subsidiary or any Guarantor shall (i) voluntarily commence
any proceeding or file any petition seeking relief under the Bankruptcy Code,
or any other Federal, state or foreign bankruptcy, insolvency, receivership or
similar law, (ii) consent to the institution of, or fail to contest in a
reasonably timely and appropriate manner, any proceeding or the filing of any
petition described in subsection (m) of this Article VII, (iii) apply
for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower, any Subsidiary
or any Guarantor, (iv) file an answer admitting the material allegations
of a petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors, (vi) generally become unable,
admit in writing its inability or fail generally to pay its debts as the become
due, or (vii) take any action for the purpose of effecting any of the
foregoing; or

 

(n)                                the owner of the Vessel
named in the applicable Ship Mortgage (to the extent such owner is the
Borrower, any Subsidiary or any Guarantor) shall cease to be a citizen of the
United States of America within the meaning of 46 U.S.C. Section 50501 of
the United States Code entitled to own such Vessel and engage in the trade in
which such Vessel is operating.

 

then, and in every such
event (other than an event with respect to the Borrower described in
subsections (l) or (m) above of this Article VII), and at any
time thereafter during the continuance of such event, the Administrative Agent
may, and at the request of the Required Lenders shall, by notice to the
Borrower, take either or both of the following actions, at the same or
different times:

 

(1)           terminate forthwith the Commitments;
and

 

(2)           declare the Loans and all other
Obligations then outstanding to be forthwith due and payable in whole or in
part, whereupon the principal of the Loans so declared to be due and payable,
together with accrued interest thereon and any unpaid accrued Fees, applicable
Prepayment Premium and all other liabilities of the Borrower accrued hereunder
and under any other Loan Document, shall become forthwith due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are hereby expressly waived by the Borrower, anything contained herein or
in any other Loan Document to the contrary notwithstanding; and in any event with
respect to the Borrower described in subsection (l) or (m) of this Article VII,
the Commitments shall automatically terminate and the principal of the Loans
then outstanding, together with accrued interest thereon and any unpaid accrued
Fees and all other liabilities of the Borrower accrued hereunder and under any
other Loan Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are
hereby expressly waived by the Borrower, anything contained herein or in any
other Loan Document to the contrary notwithstanding.  Each of the Administrative Agent and the
Lenders acknowledges that its ability to pursue the remedies described in this
paragraph may be subject to, and limited by, the terms of applicable Gaming
Laws.

 

65

 

ARTICLE VIII.

The Administrative Agent and the Collateral Agent

 

8.01.       Appointment of Agents.  Icahn Agency Services LLC is hereby appointed
Administrative Agent and Collateral Agent hereunder and under the other Loan
Documents and each Lender hereby authorizes Icahn Agency Services LLC in such
capacity, to act as its agent in accordance with the terms hereof and the other
Loan Documents. Each Agent hereby agrees to act upon the express conditions
contained herein and the other Loan Documents, as applicable. The provisions of
this ARTICLE VIII are solely for the benefit of Agents and Lenders and no Loan
Party shall have any rights as a third party beneficiary of any of the
provisions thereof. In performing its functions and duties hereunder, each
Agent shall act solely as an agent of Lenders and does not assume and shall not
be deemed to have assumed any obligation towards or relationship of agency or
trust with or for the Borrower, the Guarantors or any of their subsidiaries.

 

8.02.       Powers and Duties.  Each Lender irrevocably authorizes each Agent
to take such action on such Lender’s behalf and to exercise such powers, rights
and remedies and perform such duties hereunder and under the other Loan
Documents as are specifically delegated or granted to such Agent by the terms
hereof and thereof, together with such actions, powers, rights and remedies as
are reasonably incidental thereto. Each Agent shall have only those duties and
responsibilities that are expressly specified herein and the other Loan
Documents. Each Agent may exercise such powers, rights and remedies and perform
such duties by or through its agents or employees. No Agent shall have or be
deemed to have, by reason hereof or any of the other Loan Documents, a
fiduciary relationship in respect of any Lender; and nothing herein or any of
the other Loan Documents, expressed or implied, is intended to or shall be so
construed as to impose upon any Agent any obligations in respect hereof or any
of the other Loan Documents except as expressly set forth herein or therein.

 

8.03.       General Immunity.

 

(a)                                  No Responsibility for Certain Matters. No Agent shall be
responsible to any Lender for the execution, effectiveness, genuineness,
validity, enforceability, collectability or sufficiency hereof or any other
Loan Document or for any representations, warranties, recitals or statements
made herein or therein or made in any written or oral statements or in any
financial or other statements, instruments, reports or certificates or any
other documents furnished or made by any Agent to Lenders or by or on behalf of
any Loan Party to any Agent or any Lender in connection with the Loan Documents
and the transactions contemplated thereby or for the financial condition or
business affairs of any Loan Party or any other Person liable for the payment
of any Obligations, nor shall any Agent be required to ascertain or inquire as
to the performance or observance of any of the terms, conditions, provisions,
covenants or agreements contained in any of the Loan Documents or as to the use
of the proceeds of the Loans or as to the existence or possible existence of
any Event of Default or Default or to make any disclosures with respect to the
foregoing. Anything contained herein to the contrary notwithstanding, the
Administrative Agent shall not have any liability arising from confirmations of
the amount of outstanding Loans.

 

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(b)                                 Exculpatory Provisions. No Agent nor any of its officers,
partners, directors, employees or agents shall be liable to Lenders for any
action taken or omitted by any Agent under or in connection with any of the
Loan Documents except to the extent caused by such Agent’s bad faith, gross
negligence or willful misconduct as determined by a court of competent
jurisdiction in a final, nonappealable order. Each Agent shall be entitled to
refrain from any act or the taking of any action (including the failure to take
an action) in connection herewith or any of the other Loan Documents or from
the exercise of any power, discretion or authority vested in it hereunder or
thereunder unless and until such Agent shall have received instructions in
respect thereof from Required Lenders (or such other Lenders as may be required
to give such instructions under Section 9.08) or, in the case of the
Collateral Agent, in accordance with the Pledge and Security Agreement or other
applicable Security Document, and, upon receipt of such instructions from
Required Lenders (or such other Lenders, as the case may be), or in accordance
with the Pledge and Security Agreement or other applicable Security Document,
as the case may be, such Agent shall be entitled to act or (where so
instructed) refrain from acting, or to exercise such power, discretion or
authority, in accordance with such instructions. Without prejudice to the
generality of the foregoing, (i) each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any communication, instrument or
document believed by it to be genuine and correct and to have been signed or
sent by the proper Person or Persons, and shall be entitled to rely and shall
be protected and free from liability in relying on opinions and judgments of
attorneys (who may be attorneys for the Loan Parties), accountants, experts and
other professional advisors selected by it; and (ii) no Lender shall have
any right of action whatsoever against any Agent as a result of such Agent
acting or (where so instructed) refraining from acting hereunder or any of the
other Loan Documents in accordance with the instructions of Required Lenders
(or such other Lenders as may be required to give such instructions under Section 9.08)
or, in the case of the Collateral Agent, in accordance with any applicable
Security Document.

 

(c)                                  Notice of Default. The Administrative Agent shall not be
deemed to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to Events of Default in the payment of principal,
interest and fees required to be paid to the Administrative Agent for the
account of the Lenders, unless the Administrative Agent shall have received
written notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a “notice
of default.” The Administrative Agent will notify the Lenders of its receipt of
any such notice. The Administrative Agent shall take such action with respect
to any such Default or Event of Default as may be directed by the Required
Lenders in accordance with ARTICLE VII; provided, however, that unless and
until the Administrative Agent has received any such direction, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable or in the best interest of the Lenders.

 

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8.04.       Agents Entitled to Act as
Lender.  The agency hereby
created shall in no way impair or affect any of the rights and powers of, or
impose any duties or obligations upon, any Agent in its individual capacity as
a Lender hereunder. With respect to its participation in the Loans, each Agent
shall have the same rights and powers hereunder as any other Lender and may
exercise the same as if it were not performing the duties and functions
delegated to it hereunder, and the term “Lender” shall, unless the context
clearly otherwise indicates, include each Agent in its individual capacity. Any
Agent and its Affiliates may accept deposits from, lend money to, own
securities of, and generally engage in any kind of banking, trust, financial
advisory or other business with the Borrower, the Guarantors or any of their
Affiliates as if it were not performing the duties specified herein, and may
accept fees and other consideration from the Borrower for services in
connection herewith and otherwise without having to account for the same to
Lenders.

 

8.05.       Lenders’ Representations,
Warranties and Acknowledgment.

 

(a)                                 Each Lender represents and warrants to the Agents that it
has made its own independent investigation of the financial condition and
affairs of the Borrower, the Guarantors and their Subsidiaries, without
reliance upon any Agent or any other Lender and
based on such documents and information as it has deemed appropriate, in
connection with Borrowings hereunder and that it has made and shall continue to
make its own appraisal of the creditworthiness of the Borrower, the Guarantors
and their Subsidiaries. No Agent shall have any duty or responsibility, either
initially or on a continuing basis, to make any such investigation or any such
appraisal on behalf of Lenders or to provide any Lender with any credit or
other information with respect thereto, whether coming into its possession
before the making of the Loans or at any time or times thereafter, and no Agent
shall have any responsibility with respect to the accuracy of or the
completeness of any information provided to Lenders.

 

(b)                                Each Lender, by delivering its signature page to this
Agreement and funding its Loan on the Effective Date or by the funding of any
new Loans, as the case may be, shall be deemed to have acknowledged receipt of,
and consented to and approved, each Loan Document and each other document
required to be approved by any Agent, Required Lenders or Lenders, as
applicable on the Effective Date or as of the date of funding of such new
Loans.

 

8.06.       Right to Indemnity.  Each Lender, in proportion to its applicable
Commitment, severally agrees to indemnify each Agent, their Affiliates and
their respective officers, partners, directors, trustees, employees,
representatives and agents of each Agent (each, an “Indemnitee”), to the extent
that such Indemnitee shall not have been reimbursed by any Loan Party, for and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses (including counsel fees and
disbursements) or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against such Indemnitee in exercising its
powers, rights and remedies or performing its duties hereunder or under the
other Loan Documents or otherwise in its capacity as such Indemnitee in any way
relating to or arising out of this Agreement or the other Loan Documents, IN
ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH AGENT; provided, no Lender
shall 

 

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be liable for any portion of
such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from such Indemnitee’s bad
faith, gross negligence or willful misconduct as determined by a court of
competent jurisdiction in a final, nonappealable order. If any indemnity
furnished to any Indemnitee for any purpose shall, in the opinion of such
Indemnitee, be insufficient or become impaired, such Indemnitee may call for
additional indemnity and cease, or not commence, to do the acts indemnified
against until such additional indemnity is furnished; provided, in no event
shall this sentence require any Lender to indemnify any Indemnitee against any
liability, obligation, loss, damage, penalty, action, judgment, suit, cost,
expense or disbursement in excess of such Lender’s Commitment proportion; and
provided further, this sentence shall not be deemed to require any Lender to
indemnify any Indemnitee against any liability, obligation, loss, damage,
penalty, action, judgment, suit, cost, expense or disbursement described in the
proviso in the immediately preceding sentence.

 

8.07.       Successor Administrative
Agent.

 

(a)                                 The Administrative Agent (and the Collateral Agent as the
case may be) may resign at any time by giving thirty (30) days’ prior written
notice thereof to Lenders and the Borrower. Upon any such notice of
resignation, Required Lenders shall have the right, upon five Business Days’
notice to the Borrower, to appoint a successor Administrative Agent (or a
successor Collateral Agent as the case may be). If no successor shall have been
so appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring the Administrative Agent (or the
retiring Collateral Agent) gives notice of its resignation, then the retiring
Administrative Agent (or the retiring Collateral Agent) may, on behalf of the
Lenders, appoint a successor Administrative Agent (or a successor Collateral
Agent) from among the Lenders.

 

(b)                                The Administrative Agent (and the Collateral Agent as the
case may be)  may be removed with or
without cause by the written consent of the Required Lenders. Upon any such
removal, the Required Lenders shall, within five Business Days’, appoint a
successor Administrative Agent (or a successor Collateral Agent as the case may
be).

 

(c)                                 Upon the acceptance of any appointment as Administrative
Agent (or as Collateral Agent) hereunder by a successor Administrative Agent
(or as Collateral Agent), that successor Administrative Agent (or that
successor Collateral Agent) shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring or removed
Administrative Agent (or the retiring or removed Collateral Agent) and the
retiring or removed Administrative Agent (or the retiring or removed Collateral
Agent) shall promptly (i) transfer to such successor Administrative Agent
(or to such successor Collateral Agent) all sums, securities and other items of
Collateral held under the Security Documents, together with all records and
other documents necessary or appropriate in connection with the performance of
the duties of the successor Administrative Agent (or successor Collateral
Agent) under the Loan Documents, and (ii) execute and deliver to such
successor Administrative Agent (or such successor Collateral Agent) such
amendments to financing statements, and take such other actions, as 

 

69

 

may be necessary or appropriate in
connection with the assignment to such successor Administrative Agent (or to
such successor Collateral Agent) of the security interests created under the
Security Documents, whereupon such retiring or removed Administrative Agent (or
such retiring or removed Collateral Agent) shall be discharged from its duties
and obligations hereunder. After any retiring or removed Administrative Agent’s
(or any retiring or removed Collateral Agent’s) resignation or removal
hereunder as Administrative Agent (or as Collateral Agent), the provisions of
this ARTICLE VIII shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent (or Collateral Agent)
hereunder.

 

(d)                                 Notwithstanding anything herein to the contrary, the
Administrative Agent may assign its rights and duties as Administrative Agent
hereunder to an Affiliate of Icahn Agency Services LLC, or Affiliate of Icahn
Agency Services LLC without the prior written consent of, or prior written
notice to, the Borrower or the Lenders; provided that the Borrower and the
Lenders may deem and treat such assigning Administrative Agent as
Administrative Agent for all purposes hereof, unless and until such assigning
Administrative Agent provides written notice to the Borrower and the Lenders of
such assignment. Upon such assignment such Affiliate shall succeed to and
become vested with all rights, powers, privileges and duties as Administrative
Agent hereunder and under the other Loan Documents.

 

(e)                                  The Administrative Agent may perform any and all of its
duties and exercise its rights and powers under this Agreement or under any
other Loan Document by or through any one or more sub-agents appointed by the
Administrative Agent. The Administrative Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Affiliates. The exculpatory, indemnification and other
provisions of Section 8.03 and Section 8.06 shall apply to any the
Affiliates of the Administrative Agent and shall apply to their respective
activities in connection with the syndication of the credit facilities provided
for herein as well as activities as the Administrative Agent. All of the
rights, benefits and privileges (including the exculpatory and indemnification
provisions) of Section 8.03 and of Section 8.06 shall apply to any
such sub-agent and to the Affiliates of any such sub-agent, and shall apply to
their respective activities as sub-agent as if such sub-agent and Affiliates
were named herein. Notwithstanding anything herein to the contrary, with
respect to each sub-agent appointed by the Administrative Agent, (i) such
sub-agent shall be a third party beneficiary under this Agreement with respect
to all such rights, benefits and privileges (including exculpatory and rights
to indemnification) and shall have all of the rights, benefits and privileges
of a third party beneficiary, including an independent right of action to
enforce such rights, benefits and privileges (including exculpatory rights and
rights to indemnification) directly, without the consent or joinder of any
other Person, against any or all of the Loan Parties and the Lenders, (ii) such
rights, benefits and privileges (including exculpatory rights and rights to
indemnification) shall not be modified or amended without the consent of such
sub-agent, and (iii) such sub-agent shall only have obligations to the
Administrative Agent and not to any Loan Party,

 

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Lender or any other Person and no Loan
Party, Lender or any other Person shall have the rights, directly or
indirectly, as a third party beneficiary or otherwise, against such sub-agent.

 

8.08.       Security Documents.

 

(a)                                 Agents under Security Document. Each Lender hereby further
irrevocably authorizes the Administrative Agent or the Collateral Agent, as
applicable, on behalf of and for the benefit of Lenders, to be the agent for
and representative of Lenders with respect to the Guarantee and Collateral Agreement,
the Collateral and the Security Documents. Subject to Section 9.08,
without further written consent or authorization from Lenders, the
Administrative Agent or the Collateral Agent, as applicable, may execute any
documents or instruments necessary to (i) release any Lien encumbering any
item of Collateral that is the subject of a sale or other disposition of assets
permitted hereby or to which Required Lenders(or such other Lenders as may be
required to give such consent under Section 9.08) have otherwise
consented, or (ii) release any Guarantor in connection with the sale of
such Guarantor in a transaction permitted by Section 6.04 or with respect
to which Required Lenders(or such other Lenders as may be required to give such
consent under Section 9.08) have otherwise consented.

 

(b)                                Right to Realize on Collateral and Enforce Security
Documents. Anything contained in any of the Loan Documents to the contrary
notwithstanding, the Borrower, the Administrative Agent, the Collateral Agent
and each Lender hereby agree that (i) no Lender shall have any right
individually to realize upon any of the Collateral or to enforce any Security
Document, it being understood and agreed that all powers, rights and remedies
hereunder may be exercised solely by the Administrative Agent, on behalf of
Lenders in accordance with the terms hereof and all powers, rights and remedies
under the Security Documents may be exercised solely by the Collateral Agent,
and (ii) in the event of a foreclosure by the Collateral Agent on any of
the Collateral pursuant to a public or private sale, the Collateral Agent or
any Lender may be the purchaser of any or all of such Collateral at any such
sale and the Collateral Agent, as agent for and representative of Secured
Parties (but not any Lender or Lenders in its or their respective individual
capacities unless Required Lenders shall otherwise agree in writing) 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 public
sale, to use and apply any of the Obligations as a credit on account of the
purchase price for any collateral payable by the Collateral Agent at such sale.

 

8.09.       Posting of Approved
Electronic Communications.

 

(a)                                 Delivery of Communications.  Each Loan Party
hereby agrees, unless directed otherwise by the Administrative Agent or unless
the electronic mail address referred to below has not been provided by the
Administrative Agent to such Loan Party that it will, or will cause its
subsidiaries to, provide to the Administrative Agent all information, documents
and other materials that it is obligated to furnish to the Administrative Agent
or to the Lenders pursuant to the 

 

71

 

Loan Documents, including all notices,
requests, financial statements, financial and other reports, certificates and
other information materials, but excluding any such communication that (i) is
or relates to a Borrowing, (ii) relates to the payment of any principal or
other amount due under this Agreement prior to the scheduled date therefor, (iii)
provides notice of any Default or Event of Default under this Agreement or any
other Loan Document or (iv) is required to be delivered to satisfy any
condition precedent to the effectiveness of this Agreement and/or any Loan or
other extension of credit hereunder (all such non-excluded communications being
referred to herein collectively as “Communications”), by transmitting the
Communications in an electronic/soft medium that is properly identified in a
format acceptable to the Administrative Agent to an electronic mail address as
directed by the Administrative Agent. In addition, each Loan Party agrees, and
agrees to cause its subsidiaries, to continue to provide the Communications to
the Administrative Agent or the Lenders, as the case may be, in the manner
specified in the Loan Documents but only to the extent requested by the
Administrative Agent.

 

(b)                                 Platform.  Each Loan Party further agrees that the
Administrative Agent may make the Communications available to the Lenders by
posting the Communications on Intralinks or a substantially similar electronic
transmission system (the “Platform”).

 

(c)                                  No Warranties as to Platform.  THE PLATFORM IS
PROVIDED “AS IS” AND “AS AVAILABLE”. THE INDEMNITEES DO NOT WARRANT THE
ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF THE PLATFORM AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS IS MADE BY THE
INDEMNITEES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT
SHALL THE INDEMNITEES HAVE ANY LIABILITY TO ANY LENDER OR ANY OTHER PERSON FOR
DAMAGES OF ANY KIND, WHETHER OR NOT BASED ON STRICT LIABILITY AND INCLUDING
DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR
EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE
ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET,
EXCEPT TO THE EXTENT THE LIABILITY OF ANY INDEMNITEES IS FOUND IN A FINAL,
NONAPPEALABLE ORDER BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED
PRIMARILY FROM SUCH INDEMNITEE’S BAD FAITH, GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

 

(d)                                 Delivery Via Platform.  The Administrative
Agent agrees that the receipt of the Communications by the Administrative Agent
at its electronic mail address set 

 

72

 

forth above shall constitute effective
delivery of the Communications to the Administrative Agent for purposes of the
Loan Documents. Each Lender agrees that receipt of notice to it (as provided in
the next sentence) specifying that the Communications have been posted to the
Platform shall constitute effective delivery of the Communications to such
Lender for purposes of the Loan Documents. Each Lender agrees to notify the
Administrative Agent in writing (including by electronic communication) from
time to time of such Lender’s electronic mail address to which the foregoing
notice may be sent by electronic transmission and that the foregoing notice may
be sent to such electronic mail address.

 

(e)                                 No Prejudice to Notice Rights.  Nothing herein shall
prejudice the right of the Administrative Agent or any Lender to give any
notice or other communication pursuant to any Loan Document in any other manner
specified in such Loan Document.

 

8.10.       Agents and Arrangers.  Except as otherwise set forth herein, the
Sole Bookrunner and the Sole Lead Arranger shall not have any right, power,
obligation, liability, responsibility or duty under this Agreement (or any
other Loan Document) other than those applicable to all Lenders as such.
Without limiting the foregoing, the Sole Bookrunner and the Sole Lead Arranger
shall not have or be deemed to have any fiduciary relationship with any other
Lender. Each Lender acknowledges that it has not relied, and will not rely, on
the Sole Bookrunner and the Sole Lead Arranger in deciding to enter into this
Agreement and each other Loan Document to which it is a party or in taking or
not taking action hereunder or thereunder.

 

ARTICLE IX.

Miscellaneous

 

9.01.       Notices.  Notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by fax, as follows:

 

(a)                                 if to the Borrower or any Guarantor, to Marc Rubinstein,
Secretary, Tropicana Entertainment Inc., 3930 Howard Hughes Parkway, Fourth
Floor, Las Vegas, Nevada, 89169, (Fax No.: (702) 589-3889; Email:
mrubinstein@tropicanaentertainment.com), with a copy to Leonard Klingbaum,
Kirkland & Ellis LLP, 601 Lexington Avenue, New York, NY 10022-4611,
(Fax No: (212) 446-6460; Email: leonard.klingbaum@kirkland.com);

 

(b)                                if to the Administrative Agent, to Icahn Agency Services,
LLC, 767 Fifth Avenue, 47th Floor, New York, New
York 10153, Attention of Keith Cozza, Phone: 212-702-4323, Fax: 212-688-1158
with a copy to Sonnenschein Nath & Rosenthal LLP, 1221 Avenue of the
Americas, New York, NY 10020-1089, Attention: Richard L. Sadowsky, Phone:
212-398-7611, Fax: 212-768-6800; and

 

(c)                                 if to a Lender, to it at its address (or fax number) set
forth on Schedule 2.01 or in the Assignment and Acceptance pursuant to which
such Lender shall have become a party hereto.

 

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All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by fax or
on the date five Business Days after dispatch by certified or registered mail
if mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 9.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this Section 9.01.
As agreed to among the Borrower, the Administrative Agent and the applicable
Lenders from time to time, notices and other communications may also be
delivered by e-mail to the email address of a representative of the applicable
Person provided from time to time by such Person.

 

9.02.       Survival of Agreement.  All covenants, agreements, representations
and warranties made by the Borrower herein and in the certificates or other
instruments prepared or delivered in connection with or pursuant to this
Agreement or any other Loan Document shall be considered to have been relied
upon by the Lenders and shall survive the making by the Lenders of the Loans,
regardless of any investigation made by the Lenders or the Administrative Agent
or on their behalf, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any Fee or any other amount
payable under this Agreement or any other Loan Document is outstanding and
unpaid and so long as the Commitments have not been terminated. The provisions
of Sections 2.13, 2.17, and 9.05 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the
consummation of the transactions contemplated hereby, the repayment of any of
the Loans, the expiration of the Commitments, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative
Agent, the Collateral Agent or any Lender.

 

9.03.       Binding Effect.  This Agreement shall become effective to the
extent set forth herein when it shall have been executed by the Borrower, the
Guarantors and the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto.

 

9.04.       Successors and Assigns.

 

(a)                                 Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors
and assigns of such party; and all covenants, promises and agreements by or on
behalf of the Borrower, the Administrative Agent, the Collateral Agent or the
Lenders that are contained in this Agreement shall bind and inure to the
benefit of their respective successors and assigns.

 

(b)                                Each Lender may assign to one or more Eligible Assignees all
or a portion of its interests, rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it); provided, however, that (i) the amount of the Commitment or
Loans of the assigning Lender subject to each such assignment (determined as of
the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall be in an integral multiple of
$1,000,000, and in no event at any time less than, $5,000,000, provided
that simultaneous assignments to or by two or more Affiliates or Related Funds
shall be treated as one assignment for purposes of this 

 

74

 

minimum assignment requirement if such
Affiliates or Related Funds are managed and advised by the same investment
advisor, (ii) the parties to each such assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance via an
electronic settlement system acceptable to the Administrative Agent (or, if
previously agreed with the Administrative Agent, manually), and shall pay to
the Administrative Agent a processing and recordation fee of $3,500 (which fee
may be waived or reduced in the sole discretion of the Administrative Agent),
and (iii) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire and all applicable tax
forms. Upon acceptance and recording pursuant to Section 9.04(e), from and
after the effective date specified in each Assignment and Acceptance, (A) the
assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of
a Lender under this Agreement and (B) the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all or the remaining portion of
an assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.13, 2.17 and 9.05, as well as to any Fees accrued for
its account and not yet paid).

 

(c)                                 By executing and delivering an Assignment and Acceptance,
the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows: (i) such
assigning Lender warrants that it is the legal and beneficial owner of the
interest being assigned thereby free and clear of any adverse claim and that
its Commitment, and the outstanding balances of its Loans, in each case without
giving effect to assignments thereof which have not become effective, are as
set forth in such Assignment and Acceptance, (ii) except as set forth in (i) above,
such assigning Lender makes no representation or warranty and assumes no responsibility
with respect to any statements, warranties or representations made in or in
connection with this Agreement, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other
Loan Document or any other instrument or document furnished pursuant hereto, or
the financial condition of the Borrower, any Subsidiary or any Guarantor or the
performance or observance by the Borrower, any Subsidiary or any Guarantor of
any of its obligations under this Agreement, any other Loan Document or any
other instrument or document furnished pursuant hereto; (iii) such
assignee represents and warrants that it is legally authorized to enter into
such Assignment and Acceptance and perform its obligations under the Loan Documents;
(iv) such assignee confirms that it has received a copy of this Agreement,
together with copies of the most recent financial statements referred to in
Sections 3.05(a) or delivered pursuant to Section 5.04 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (v) such
assignee will independently and without reliance upon the Administrative Agent,
the Collateral Agent, such assigning Lender or any other Lender and based on
such documents and 

 

75

 

information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement; (vi) such assignee appoints and
authorizes the Administrative Agent and the Collateral Agent to take such
action as agent on its behalf and to exercise such powers under this Agreement
as are delegated to the Administrative Agent and the Collateral Agent, respectively,
by the terms hereof, together with such powers as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are
required to be performed by it as a Lender.

 

(d)                                The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices in The City of New
York a copy of each Assignment and Acceptance delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the
Commitment of, and principal amount of and interest on the Loans owing to, each
Lender pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive and the Borrower, the
Administrative Agent, the Collateral Agent and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a
Lender hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Borrower,
and a redacted version of the Register showing the entries with respect to any
Lender shall be available for inspection by such Lender, at any reasonable time
and from time to time upon reasonable prior notice.

 

(e)                                 Upon its receipt of, and consent to, a duly completed
Assignment and Acceptance executed by an assigning Lender and an assignee, an
Administrative Questionnaire completed in respect of the assignee (unless the
assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in Section 9.04(b), if applicable, and the written consent
of the Administrative Agent and, if required, the Borrower, to such assignment
and any applicable tax forms, the Administrative Agent shall promptly (i) accept
such Assignment and Acceptance and (ii) record the information contained
therein in the Register. No assignment shall be effective unless it has been
recorded in the Register as provided in this Section 9.04(e).

 

(f)                                   Each Lender may without the consent of the Borrower or the
Administrative Agent sell participations to one or more banks or other Persons
in all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it); provided,
however, that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) the
participating banks or other Persons shall be entitled to the benefit of the
cost protection provisions contained in Sections 2.13 and 2.17 to the same
extent as if they were Lenders (but, with respect to any particular
participant, to no greater extent than the Lender that sold the participation
to such participant) and (iv) the Borrower, the Administrative Agent and
the Lenders shall continue to deal solely and directly with such Lender 

 

76

 

in connection with such Lender’s rights
and obligations under this Agreement, and such Lender shall retain the sole
right to enforce the obligations of the Borrower relating to the Loans and to
approve any amendment, modification or waiver of any provision of this
Agreement (other than amendments, modifications or waivers decreasing any fees
payable to such participating bank or Person hereunder or the amount of
principal of or the rate at which interest is payable on the Loans in which
such participating bank or Person has an interest, extending any scheduled
principal payment date or date fixed for the payment of interest on the Loans
in which such participating bank or Person has an interest, increasing or
extending the Commitments in which such participating bank or Person has an
interest or releasing any Guarantor (other than in connection with the sale of
such Guarantor in a transaction permitted by Section 6.04) or all or
substantially all of the Collateral).

 

(g)                                Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 9.04, disclose to the assignee or participant or proposed
assignee or participant any information relating to the Borrower furnished to
such Lender by or on behalf of the Borrower; provided that, prior to any
such disclosure of information designated by the Borrower as confidential, each
such assignee or participant or proposed assignee or participant shall execute
an agreement whereby such assignee or participant shall agree (subject to
customary exceptions) to preserve the confidentiality of such confidential
information on terms no less restrictive than those applicable to the Lenders
pursuant to Section 9.19.

 

(h)                                Any Lender may at any time assign all or any portion of its
rights under this Agreement to secure extensions of credit to such Lender or in
support of obligations owed by such Lender; provided that no such assignment
shall release a Lender from any of its obligations hereunder or substitute any
such assignee for such Lender as a party hereto.

 

(i)                                    The Borrower shall not assign or delegate any of its rights
or duties hereunder without the prior written consent of the Administrative
Agent and each Lender, and any attempted assignment without such consent shall
be null and void.

 

(j)                                    In addition to any other assignment permitted pursuant to
this Section 9.04, any Lender may assign and/ or pledge all or any portion
of its Loans, the other Obligations owed by or to such Lender, and its
promissory notes, if any, to secure obligations of such Lender including to any
Federal Reserve Bank as collateral security pursuant to Regulation A of the
Board of Governors of the Federal Reserve System and any operating circular
issued by such Federal Reserve Bank; provided that no Lender, as between
the Borrower and such Lender, shall be relieved of any of its obligations
hereunder as a result of any such assignment and pledge; and provided
further that, in no event shall the applicable Federal Reserve Bank, pledgee or
trustee be considered to be a “Lender” or be entitled to require the
assigning Lender to take or omit to take any action hereunder.

 

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(k)                                 Notwithstanding anything to the contrary in this Section 9.04,
no assignment made nor participation sold shall conflict in any way with
applicable Gaming Laws.

 

9.05.       Expenses; Indemnity.

 

(a)                                 The Borrower and each Loan Party agrees to pay promptly, and
in any event within 2 Business Days after written demand therefore, (i) all
the actual reasonable, documented costs and out-of-pocket expenses of
preparation of the Loan Documents and any consents, amendments, waivers or
other modifications thereto; (ii) the reasonable and documented fees,
out-of pocket expenses and disbursements of one firm of attorneys per
jurisdiction to the Agents in connection with the negotiation, preparation,
execution and administration of the Loan Documents, including the reasonable
fees, charges and out-of-pocket expenses of Sonnenschein Nath & Rosenthal
LLP and any consents, amendments, waivers or other modifications thereto and
any other documents or matters requested by the Borrower; (iv) all the
actual reasonable, documented costs and expenses of creating and perfecting
Liens in favor of the Collateral Agent, for the benefit of Secured Parties
pursuant hereto, including filing and recording fees, expenses and amounts owed
pursuant to Section 2.17, search fees, title insurance premiums and fees,
expenses and disbursements of counsel to each Agent and of counsel providing
any opinions that any Agent or Required Lenders may request in respect of the
Collateral or the Liens created pursuant to the Security Documents; (v) all
the actual reasonable, documented costs and fees, expenses and disbursements of
any auditors, accountants, consultants or appraisers whether internal or
external, in each case retained by the Agents; (vi) all the actual
reasonable, documented costs and expenses of the Collateral Agent (including
the reasonable and documented fees, out-of-pockets expenses and disbursements
of one firm of attorneys per jurisdiction and per practice area and of any
appraisers, consultants, advisors and agents reasonably employed or retained by
the Collateral Agent and its counsel) in connection with the custody or
preservation of any of the Collateral; (vii) all other actual reasonable,
documented costs and expenses incurred by each Agent in connection with the
syndication of the Loans and Commitments and the negotiation, preparation and
execution of the Loan Documents and any consents, amendments, waivers or other
modifications thereto and the transactions contemplated thereby; (viii) all
actual and documented costs and expenses incurred by the Agents or any Lender,
including the fees, charges and disbursements of advisors for any of the
foregoing, incurred in connection with the enforcement or protection of its
rights under the Loan Documents, or in connection with the collection of the
Obligations and (ix) after the occurrence of a Default or an Event of
Default, all actual and documented costs and expenses, including attorneys’
fees and costs of settlement, incurred by any Agent and any Lender in enforcing
any Obligations of or in collecting any payments due from any Loan Party
hereunder or under the other Loan Documents by reason of such Default or Event
of Default (including in connection with the sale of, collection from, or other
realization upon any of the Collateral or the enforcement of the Security
Documents) or in connection with any refinancing or restructuring of the 

 

78

 

credit arrangements provided hereunder
in the nature of a “work out” or pursuant to any insolvency or bankruptcy cases
or proceedings.

 

(b)                                The Borrower agrees, jointly and severally, to indemnify the
Administrative Agent, the Collateral Agent, each Lender and each Related Party
of any of the foregoing persons (each such person being called an “Indemnitee”)
against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related reasonable and documented out-of-pocket
expenses, including reasonable fees of one firm of attorneys per jurisdiction
and per practice area, charges and disbursements, incurred by or asserted
against any Indemnitee arising out of, in any way connected with, or as a
result of (i) the execution or delivery of this Agreement or any other
Loan Document or any agreement or instrument contemplated thereby, the
performance by the parties thereto of their respective obligations thereunder
and the other transactions contemplated thereby (including the syndication of
the Credit Facilities), (ii) the use of the proceeds of the Loans, (iii) any
claim, litigation, investigation or proceeding relating to any of the
foregoing, whether or not any Indemnitee is a party thereto (and regardless of
whether such matter is initiated by a third party or by the Borrower, any other
Loan Party or any of their respective Affiliates), or (iv) any actual or
alleged presence or Release of Hazardous Materials on any property currently or
formerly owned or operated by the Borrower, any of the Subsidiaries or any of
the Guarantors, or any Environmental Liability related in any way to the
Borrower, the Subsidiaries or the Guarantors, in all cases, whether or not
caused by or arising, in whole or in part, out of the comparative,
contributory, or sole negligence of such Agent or Lender; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses are determined by
a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the bad faith, gross negligence or willful misconduct of such
Indemnitee. To the extent that the undertakings to defend, indemnify, pay and
hold harmless set forth in this Section 9.05(b) may be unenforceable
in whole or in part because they are violative of any law or public policy, the
applicable Loan Party shall contribute the maximum portion that it is permitted
to pay and satisfy under applicable law to the payment and satisfaction of all
indemnified liabilities incurred by Indemnitees or any of them.

 

(c)                                 To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent or the Collateral Agent
under Section 9.05(a) or 9.05(b) (but without affecting the
obligations of the Borrower to make such payment), each Lender severally agrees
to pay to the Administrative Agent or the Collateral Agent, as the case may be,
such Lender’s pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Administrative Agent or the Collateral Agent in its capacity as such. For
purposes hereof, a Lender’s “pro rata share” shall be determined based
upon its share of the sum of the outstanding Loans and unused Commitments
(including the Revolving Commitment) at the time.

 

79

 

(d)                                To the extent permitted by applicable law, the Borrower
shall not assert, and the Borrower 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 or any agreement or instrument
contemplated hereby, any Loan or the use of the proceeds thereof.

 

(e)                                 The provisions of this Section 9.05 shall remain
operative and in full force and effect regardless of the expiration of the term
of this Agreement, the repayment of any of the Loans, the expiration of the
Commitments, the invalidity or unenforceability of any term or provision of
this Agreement or any other Loan Document, or any investigation made by or on
behalf of the Administrative Agent, the Collateral Agent or any Lender. All
amounts due under this Section 9.05 shall be payable on written demand
therefor.

 

9.06.       Right of Setoff.  If an Event of Default shall have occurred
and be continuing, each Lender is hereby authorized at that time and from time
to time thereafter while such Event of Default is subsisting, except to the
extent prohibited by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the account
of the Borrower against any of and all the obligations of the Borrower now or
hereafter existing under this Agreement and other Loan Documents held by such
Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement or such other Loan Document. The rights of each Lender
under this Section 9.06 are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

 

9.07.       Applicable Law.  THIS AGREEMENT AND ANY OTHER LOAN DOCUMENTS
(EXCEPT AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

9.08.       Waivers; Amendment.

 

(a)                                 No failure or delay of the Administrative Agent, the
Collateral Agent or any Lender in exercising any power or right hereunder or
under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The
rights and remedies of the Administrative Agent, the Collateral Agent and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower or any other Loan Party therefrom shall in any event
be effective unless the same shall be permitted by Section 9.08(b), and
then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. No notice or demand on the Borrower in any
case shall entitle the

 

80

 

Borrower to any other or further notice
or demand in similar or other circumstances.

 

(b)                                Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrower and the Required Lenders; provided,
however, that no such agreement shall (i) decrease the principal amount
of, or extend the maturity of or any scheduled principal payment date or date
for the payment of any interest on any Loan, or waive or excuse any such
payment or any part thereof, or decrease the rate of interest on any Loan,
without the prior written consent of each Lender directly adversely affected
thereby, (ii) increase or extend the Commitment or decrease or extend the
date for payment of any Fees of any Lender without the prior written consent of
such Lender, (iii) amend or modify the definition of “Pro Rata Share” or
the provisions of this Section or release any Guarantor (other than in
connection with the sale of such Guarantor in a transaction permitted by Section 6.04)
or all or substantially all of the Collateral, without the prior written
consent of each Lender or (iv) reduce the percentage contained in the
definition of the term “Required Lenders” without the prior written
consent of each Lender (it being understood that with the consent of the
Required Lenders, additional extensions of credit pursuant to this Agreement
may be included in the determination of the Required Lenders on substantially
the same basis as the Commitments on the date hereof); provided further
that no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent or the Collateral Agent hereunder or under
any other Loan Document without the prior written consent of the Administrative
Agent or the Collateral Agent.

 

(c)                                 To the extent required by any Gaming Law, the Borrower shall
notify all relevant Gaming Authorities of any amendment to this Agreement or
any Loan Document.

 

9.09.       Application of Gaming Laws.

 

(a)                                 This Agreement and the other Loan Documents are subject to
Gaming Laws and laws involving the sale and distribution of liquor (the “Liquor
Laws”). Without limiting the foregoing, each of the Administrative Agent
and the Lenders acknowledges that (i) it is subject to the jurisdiction of
the Gaming Authorities or Governmental Authorities enforcing such Gaming Laws
or Liquor Laws (and to be called forward by such Gaming Authorities or
Governmental Authorities), in their discretion, for licensing, qualification or
findings of suitability or to file or provide other information and (ii) all
rights, remedies and powers in or under this Agreement and the other Loan
Documents, including with respect to the Collateral and the ownership,
possession and operation of facilities subject to the jurisdiction of the
Gaming Authorities, may be exercised only to the extent that the exercise
thereof does not violate any applicable provisions of the Gaming Laws and
Liquor Laws and only to the extent that required approvals (including prior approvals)
are obtained from the relevant Gaming Authorities.  For the avoidance of doubt, each of the
parties hereto acknowledge that, with respect to any Collateral held in the
State of Louisiana, the gaming laws in such state 

 

81

 

provide that a licensed owner or any
other Person may not sell, transfer, lease, hypothecate, borrow or loan money
against an owner’s license and therefore, in no event shall the Collateral
include any Louisiana gaming license or any interest therein and each of the
parties hereto hereby acknowledge and agree that they have no interest in, or
rights with respect to, any Louisiana gaming license.

 

(b)                                Each of the Administrative Agent and the Lenders agrees to
cooperate with all Gaming Authorities in connection with the provision of such
documents and other information as may be requested by such Gaming Authorities
relating to the Loan Parties or Loan Documents.

 

(c)                                 Each of the Administrative Agent and the Lenders
acknowledges and agrees that if the Borrower receives a notice from any
applicable Gaming Authority that a Lender is a Disqualified Lender (and such
Lender is notified by the Borrower and the Administrative Agent in writing of
such disqualification), the Borrower shall have the right to (i) cause such
Disqualified Lender to transfer and assign, without recourse (in accordance
with Section 9.04) all of its interests, rights and obligations in Loans
or Commitments or (ii) in the event that (A) the Borrower is unable
to assign such Lender’s Loans or Commitments after using its best efforts to
cause such an assignment and (B) no Default or Event of Default has
occurred and is continuing, prepay such Disqualified Lender’s Loans and
terminate its Commitments; provided, however, that in the event that a
Lender is disqualified by any Gaming Authority, the Disqualified Lender must
transfer and assign, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement at par value to any other Lender who agrees to
accept such assignment regardless of whether a Default or Event of Default has
occurred or is continuing.  Notice to
such Disqualified Lender shall be given ten days prior to the required date of
assignment or prepayment, as the case may be, and shall be accompanied by
evidence demonstrating that such transfer or prepayment is required pursuant to
Gaming Laws. Upon receipt of a notice in accordance with the foregoing, the
Disqualified Lender shall cooperate with the Borrower in effectuating the
required assignment or prepayment within the time period set forth in such
notice and, in any event, not to be less than the minimum notice period set
forth in the foregoing sentence. Notwithstanding anything herein to the
contrary, any prepayment of a Disqualified Lender’s Loans pursuant to this Section 9.09(c) shall
be at a price equal to the lesser of (i) an amount equal to the sum of the
principal amount of such Loans and interest at the date such Lender became a
Disqualified Lender (plus any Fees and other amounts accrued for the account of
such Disqualified Lender to the date such Lender became a Disqualified Lender),
(ii) the price at which such Lender acquired its Loans and interest to the
date such Lender became a Disqualified Lender (plus Fees and other amounts
accrued for the account of such Disqualified Lender to the date such Lender
became a Disqualified Lender), (iii) such lower price as may be reasonably
available in the syndicated loan market for the assignment of such Loans and (iv) such
other amount as may be required by any such Gaming Authority.

 

82

 

(d)                                If during the existence of an Event of Default hereunder or
under any of the other Loan Documents it shall become necessary or, in the
opinion of the Required Lenders, advisable for an agent, supervisor, receiver
or other representative of the Administrative Agent or the Lenders to become
licensed or found qualified under any Gaming Law as a condition of receiving
the benefit of the Collateral encumbered by the Security Documents or other
Loan Documents or to otherwise enforce the rights of the Administrative Agent
and the Lenders under the Loan Documents, the Borrower hereby agrees to consent
to the application for such license or qualification and to execute such
further documents as may be required in connection with the evidencing of such
consent.

 

(e)                                 For the avoidance of doubt, each of the Administrative Agent
and the Lenders acknowledge that, with respect to any Collateral held in
Indiana, Indiana Code 4-33-4-21 provides that a licensed owner or any other
person may not lease, hypothecate, borrow or loan money against an owner’s
license. Therefore, in no event shall the Collateral include any Indiana gaming
license or any interest therein and each of the Administrative Agent and the
Lenders hereby acknowledge, confirm and agree that they have no interest in, or
rights with respect to, any Indiana gaming license.

 

9.10.       Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which are treated as interest on such
Loan under applicable law (collectively the “Charges”), shall exceed the
maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable
in respect of such Loan or participation hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan or participation but were not payable as a result of the operation
of this Section 9.10 shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or participations or periods
shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective
Rate to the date of repayment, shall have been received by such Lender.

 

9.11.       Entire Agreement.  This Agreement and the other Loan Documents
constitute the entire contract between the parties relative to the subject
matter hereof. Any other previous agreement among the parties with respect to
the subject matter hereof is superseded by this Agreement and the other Loan
Documents.  Nothing in this Agreement or
in the other Loan Documents, expressed or implied, is intended to confer upon
any Person (other than the parties hereto and thereto, their respective
successors and assigns permitted hereunder and, to the extent expressly
contemplated hereby, the Related Parties of each of the Administrative Agent,
the Collateral Agent and the Lenders) any rights, remedies, obligations or
liabilities under or by reason of this Agreement or the other Loan
Documents.  For the avoidance of doubt,
the terms and conditions set forth in this Agreement (including but not limited
to the Commitments of the Lenders hereunder) shall supersede the terms and
conditions set forth in the Commitment Letter and the Commitment Letter shall
be deemed to be null and void in all respects.

 

83

 

9.12.       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 OR ANY OF THE OTHER LOAN
DOCUMENTS. 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 AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 9.12.

 

9.13.       Marshalling; Payments Set
Aside.  Neither any Agent nor
any Lender shall be under any obligation to marshal any assets in favor of any
Loan Party or any other Person or against or in payment of any or all of the
Obligations. To the extent that any Loan Party makes a payment or payments to
the Administrative Agent or the Lenders (or to the Administrative Agent, on
behalf of the Lenders), or the Administrative Agent, the Collateral Agent or
the Lenders enforce any security interests or exercise their rights of setoff,
and such payment or payments or the proceeds of such enforcement or setoff or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee, receiver or
any other party under any bankruptcy law, any other state or federal law,
common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens,
rights and remedies therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or
such enforcement or setoff had not occurred.

 

9.14.       Severability.  In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby (it being understood that
the invalidity of a particular provision in a particular jurisdiction shall not
in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

 

9.15.       Independence of Covenants.  All covenants hereunder shall be given
independent effect so that if a particular action or condition is expressly 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.

 

9.16.       Counterparts.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together
shall constitute a single contract, and shall become effective as provided in Section 9.03.
Delivery of an executed signature page to this Agreement by facsimile or
..pdf  transmission shall be as effective
as delivery of a manually signed counterpart of this Agreement.

 

84

 

9.17.       Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

 

9.18.       Jurisdiction; Consent to
Service of Process.

 

(a)                                 The Borrower hereby irrevocably and unconditionally submits,
for itself and its property, to the exclusive jurisdiction of the United States
District Court for the Southern District of New York, or if that court does not
have subject matter jurisdiction, in any New York State court sitting in New
York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the other Loan
Documents, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto 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 shall affect any right that the Administrative Agent, the Collateral
Agent or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against the Borrower or
its properties in the courts of any jurisdiction.

 

(b)                                The Borrower 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 suit, action or
proceeding arising out of or relating to this Agreement or the other Loan Documents
in any New York State or Federal court. Each of the parties hereto hereby
irrevocably 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)                                 Each party to this Agreement irrevocably consents to service
of process in the manner provided for notices in Section 9.01. Nothing in
this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.

 

9.19.       Confidentiality.  Each of the Administrative Agent, the
Collateral Agent and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to
its Affiliates and its Affiliates’ officers, directors, trustees, employees and
agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory
authority or quasi-regulatory authority (such as the National Association of
Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) in connection
with the exercise of any remedies hereunder or under the other Loan Documents
or any suit, action or proceeding relating to the enforcement of its rights
hereunder or thereunder, (e) subject to an agreement containing provisions
substantially the same as those of this Section 9.19, to (i) any
actual or 

 

85

 

prospective assignee of or
participant in any of its rights or obligations under this Agreement and the
other Loan Documents or (ii) any actual or prospective counterparty (or
its advisors) to any swap or derivative transaction relating to the Borrower,
any Subsidiary or any Guarantor or any of their respective obligations, (f) with
the consent of the Borrower or (g) to the extent such Information becomes
publicly available other than as a result of a breach of this Section 9.19.
For the purposes of this Section, “Information” shall mean all
information received from the Borrower or any Guarantor and related to the
Borrower or any Guarantor or their businesses, other than any such information
that was available to the Administrative Agent, the Collateral Agent or any
Lender on a non confidential basis prior to its disclosure by the Borrower or
any Guarantor; provided that, in the case of Information received from
the Borrower or any Guarantor after the date hereof, such information is
clearly identified at the time of delivery as confidential. Any Person required
to maintain the confidentiality of Information as provided in this Section 9.19
shall be considered to have complied with its obligation to do so if such
Person has exercised the same degree of care to maintain the confidentiality of
such Information as such Person would accord its own confidential information.

 

9.20.       USA PATRIOT Act Notice.  Each Lender and the Administrative Agent (for
itself and not on behalf of any Lender) hereby notifies the Borrower and the
Guarantors that pursuant to the requirements of the USA PATRIOT Act, it is
required to obtain, verify and record information that identifies the Borrower
and the Guarantors, which information includes the name and address of the
Borrower and the Guarantors and other information that will allow such Lender
or the Administrative Agent, as applicable, to identify the Borrower and the
Guarantors in accordance with the USA PATRIOT Act. IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

 

9.21.       Disclosure.  Each Loan Party and each Lender hereby
acknowledges and agrees that Administrative Agent and/or its Affiliates and
their respective Related Funds from time to time may hold investments in, and
make other loans to, or have other relationships with any of the Loan Parties
and their respective Affiliates, including the ownership, purchase and sale of
equity interests in the Borrower or the Guarantors, and each Loan Party and
each Lender hereby expressly consents to such relationships.

 

9.22.       Effective Date.  This Agreement shall become effective on the
date on which the Borrower, the Administrative Agent, the Collateral Agent and
the Lenders set forth on Schedule 2.01 hereto (the “Signing Date Lenders”)
shall have signed a counterpart hereof (whether the same or different
counterparts) and shall have delivered the same to the Administrative Agent or,
in the case of the Signing Date Lenders, shall have given to the Administrative
Agent telephonic (confirmed in writing), written or facsimile notice (actually
received) that the same has been signed and mailed to it.  On the date (the “Effective Date”)
when each of the conditions precedent set forth in Section 4.02 shall have
been either met or waived by the Administrative Agent, the obligations under
this Agreement arising as of the Effective Date shall be in full force and
effect.  For the avoidance of doubt,
notwithstanding anything herein to the contrary, the Commitments of each
Signing Date Lender hereunder shall be effective as of the date such Lender has
executed its counterpart hereof.

 

86

 

9.23.       Obligations of Loan Parties Prior to the
Effective Date.

 

Neither this Agreement nor
any other Loan Document shall commit or otherwise obligate the Borrower or any
other Loan Party to cause the occurrence of the Effective Date.

 

*              *              *

 

87

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

	
   

  	
  TROPICANA ENTERTAINMENT INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott C. Butera

  
	
   

  	
  Name:

  	
  Scott C. Butera

  
	
   

  	
  Title:

  	
  President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  ICAHN AGENCY SERVICES LLC,

  as Administrative Agent and Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  CCO

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Icahn Partners LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  Chief Compliance Officer

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Icahn Partners Master Fund LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  Chief Compliance Officer

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Icahn Partners Master Fund II L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  Chief Compliance Officer

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Icahn Partners Master Fund III L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  Chief Compliance Officer

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Icahn Capital LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith Cozza

  
	
   

  	
  Name:

  	
  Keith Cozza

  
	
   

  	
  Title:

  	
  Chief Compliance Officer

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PAR Investment Partners, L.P.

  By:  PAR Group, L.P. as its general partner

  By:  PAR Capital Management, Inc. as its
  general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gina DiMento

  
	
   

  	
  Name:

  	
  Gina DiMento

  
	
   

  	
  Title:

  	
  General Counsel

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SOF INVESTMENTS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marcello Liguori

  
	
   

  	
  Name:

  	
  Marcello Liguori

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RESTORATION SPECIAL OPPORTUNITIES MASTER LTD

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pamela M. Lawrence

  
	
   

  	
  Name:

  	
  Pamela M. Lawrence

  
	
   

  	
  Title:

  	
  Director

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY THERETO
  AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RESTORATION HOLDINGS LTD

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pamela M. Lawrence

  
	
   

  	
  Name:

  	
  Pamela M. Lawrence

  
	
   

  	
  Title:

  	
  Director

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WHITEHORSE III, LTD.

  By:  WhiteHorse Capital Partners, L.P., as
  Collateral Manager

  By:  WhiteRock Asset Advisor, LLC, its G.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ethan Underwood

  
	
   

  	
  Name:

  	
  Ethan Underwood

  
	
   

  	
  Title:

  	
  Portfolio Manager

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DK ACQUISITION PARTNERS, L.P.

  By:  M.H. Davidson & Co., Its G.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Avi Friedman

  
	
   

  	
  Name:

  	
  Avi Friedman

  
	
   

  	
  Title:

  	
  General Partner/M.H. Davidson & Co

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCHULTZE APEX MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George J. Schultze

  
	
   

  	
  Name:

  	
  George J. Schultze

  
	
   

  	
  Title:

  	
  Director

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARROW DISTRESSED SECURITIES FUND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George J. Schultze

  
	
   

  	
  Name:

  	
  George J. Schultze

  
	
   

  	
  Title:

  	
  Managing Member of Investment Manager

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Citigroup Financial Products, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Blessing

  
	
   

  	
  Name:

  	
  Brian Blessing

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Wexford Spectrum Investors LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Doyle

  
	
   

  	
       1.

  	
  Name: Jack Doyle

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Debello Investors LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jack Doyle

  
	
   

  	
  Name:

  	
  Jack Doyle

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPCP GROUP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Gatto

  
	
   

  	
  Name:

  	
  Michael Gatto

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SPCP GROUP III LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Steinmetz

  
	
   

  	
       2.

  	
  Name: David Steinmetz

  
	
   

  	
  Title:

  	
  Authorized Signatory

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Manchester Securities Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elliot Greenberg

  
	
   

  	
  Name:

  	
  Elliot Greenberg

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES IIIR/IVR CLO LTD.

  
	
   

  	
   

  
	
   

  	
  By:  ARES CLO
  MANAGEMENT IIIR/IVR, L.P.

  
	
   

  	
   

  
	
   

  	
  By:  ARES CLO
  GP IIIR/IVR, LLC, ITS GENERAL PARTNER

  
	
   

  	
   

  
	
   

  	
  By:  ARES
  MANAGEMENT LLC, ITS MANAGER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ares IIR CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management IIR, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP IIR, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES VR CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management VR, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP VR, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES VII CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management VII, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP VII, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES VIII CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management VIII, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP VIII, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES IX CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management IX, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP IX, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES X CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management X, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP X, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Ares VIR CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  Management VIR, L.P., Investment Manager

  
	
   

  	
   

  
	
   

  	
  By:  Ares CLO
  GP VIR, LLC, Its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

	
   

  	
  SIGNATURE PAGE TO THE CREDIT AGREEMENT DATED AS OF
  DECEMBER 21, 2009, AMONG TROPICANA ENTERTAINMENT INC., THE LENDERS PARTY
  THERETO AND ICAHN AGENCY SERVICES LLC, AS ADMINISTRATIVE AGENT AND COLLATERAL
  AGENT.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARES XI CLO Ltd.

  
	
   

  	
   

  
	
   

  	
  By:  ARES CLO
  MANAGEMENT XI, L.P.

  
	
   

  	
   

  
	
   

  	
  By:  ARES CLO
  GP XI, LLC, ITS GENERAL PARTNER

  
	
   

  	
   

  
	
   

  	
  By:  ARES
  MANAGEMENT LLC, ITS MANAGER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Americo Cascella

  
	
   

  	
  Name:

  	
  Americo Cascella

  
	
   

  	
  Title:

  	
  Vice President

  

 

[SIGNATURE PAGE TO CREDIT
AGREEMENT]

 

 

Schedule 2.01

Lenders and Commitments

 

Winmar/Tropicana
Opco Term Loan and Revolver

Global Balance

 

	
  #

  	
   

  	
  Lender

  	
   

  	
  Amounts

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Icahn
  Partners LP

  	
   

  	
  24,750,066.88

  	
   

  
	
  2

  	
   

  	
  Icahn
  Partners Master Fund LP

  	
   

  	
  29,433,042.38

  	
   

  
	
  3

  	
   

  	
  Icahn
  Partners Master Fund II L.P.

  	
   

  	
  10,580,423.03

  	
   

  
	
  4

  	
   

  	
  Icahn
  Partners Master Fund III L.P.

  	
   

  	
  4,012,472.89

  	
   

  
	
  5

  	
   

  	
  Icahn
  Capital LP

  	
   

  	
  2,669,362.68

  	
   

  
	
  6

  	
   

  	
  PAR
  Investment Partners, L.P.

  	
   

  	
  2,424,114.10

  	
   

  
	
  7

  	
   

  	
  SOF
  Investment, L.P.

  	
   

  	
  2,316,982.14

  	
   

  
	
  8

  	
   

  	
  Restoration
  Holdings Ltd

  	
   

  	
  2,376,530.56

  	
   

  
	
  9

  	
   

  	
  Restoration
  Special Opportunities Master Ltd

  	
   

  	
  264,058.38

  	
   

  
	
  10

  	
   

  	
  WHITEHORSE
  III LTD

  	
   

  	
  540,965.38

  	
   

  
	
  11

  	
   

  	
  DK
  Acquisition Partners, L.P.

  	
   

  	
  1,758,339.22

  	
   

  
	
  12

  	
   

  	
  SCHULTZE
  APEX MASTER FUND LTD

  	
   

  	
  1,000,000.00

  	
   

  
	
  13

  	
   

  	
  ARROW
  DISTRESSED SEC FD

  	
   

  	
  2,500,000.00

  	
   

  
	
  14

  	
   

  	
  Citigroup
  Financial Products Inc.

  	
   

  	
  782,397.48

  	
   

  
	
  15

  	
   

  	
  Wexford
  Spectrum Investors LLC

  	
   

  	
  5,623,957.35

  	
   

  
	
  16

  	
   

  	
  Debello
  Investors LLC

  	
   

  	
  1,076,051.25

  	
   

  
	
  17

  	
   

  	
  SPCP
  GROUP LLC

  	
   

  	
  10,000,000.00

  	
   

  
	
  18

  	
   

  	
  SPCP
  Group III, LLC

  	
   

  	
  5,000,000.00

  	
   

  
	
  19

  	
   

  	
  Manchester
  Securities Corp

  	
   

  	
  20,000,000.00

  	
   

  
	
  20

  	
   

  	
  ARES
  IIIR/IVR CLO LTD

  	
   

  	
  509,736.07

  	
   

  
	
  21

  	
   

  	
  ARES
  IIR CLO LTD.

  	
   

  	
  185,358.57

  	
   

  
	
  22

  	
   

  	
  ARES
  IX CLO LTD

  	
   

  	
  301,207.68

  	
   

  
	
  23

  	
   

  	
  ARES
  VII CLO LTD

  	
   

  	
  301,207.68

  	
   

  
	
  24

  	
   

  	
  ARES
  VIII CLO LTD

  	
   

  	
  278,166.21

  	
   

  
	
  25

  	
   

  	
  ARES
  VIR CLO LTD.

  	
   

  	
  301,207.68

  	
   

  
	
  26

  	
   

  	
  ARES
  VR CLO LTD

  	
   

  	
  301,207.68

  	
   

  
	
  27

  	
   

  	
  ARES
  X CLO LTD

  	
   

  	
  203,408.07

  	
   

  
	
  28

  	
   

  	
  ARES
  XI CLO LTD

  	
   

  	
  509,736.07

  	
   

  
	
   

  	
   

  	
  Total
  Term Loan

  	
   

  	
  130,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Icahn
  Partners LP

  	
   

  	
  7,197,297.00

  	
   

  
	
  2

  	
   

  	
  Icahn
  Partners Master Fund LP

  	
   

  	
  8,559,102.00

  	
   

  
	
  3

  	
   

  	
  Icahn
  Partners Master Fund II L.P.

  	
   

  	
  3,076,778.00

  	
   

  
	
  4

  	
   

  	
  Icahn
  Partners Master Fund III L.P.

  	
   

  	
  1,166,823.00

  	
   

  
	
   

  	
   

  	
  Total
  Revolver Loan

  	
   

  	
  20,000,000.00

  	
   

  

 

 

EXHIBIT
A

 

FORM OF

TROPICANA ENTERTAINMENT INC.

ADMINISTRATIVE QUESTIONNAIRE

 

Please
accurately complete the following information and return via Fax to the
attention of Agency Administration at Icahn Agency Services LLC as soon as
possible, at Fax No. (212) 688-1158.

 

LENDER
LEGAL NAME TO APPEAR IN DOCUMENTATION :

GENERAL
INFORMATION — LENDING OFFICE:

 

	
  Institution Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  	
   

  

 

POST-CLOSING,
ONGOING CREDIT CONTACTS/NOTIFICATION METHODS:

 

	
  CREDIT CONTACTS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Primary Contact:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip-Code:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phone Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Backup Contact:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phone Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
   

  

 

 

TAX
WITHHOLDING:

 

	
  Nonresident

  Alien

  	
  Y* N

  
	
   

  	
   

  
	
  *Form 4224

  Enclosed

  	
   

  
	
   

  	
   

  
	
  Tax ID

  Number

  	
   

  

 

POST-CLOSING
ONGOING ADMIN. CONTACTS/NOTIFICATION METHODS:

 

ADMINISTRATIVE
CONTACTS — BORROWINGS, PAYDOWNS, FEES, ETC.

 

	
  Contact:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip Code:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phone Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax Number:

  	
   

  	
   

  

 

PAYMENT
INSTRUCTIONS:

 

Name of Bank to which
funds are to be transferred:

 

 

Routing Transit/ABA
number of Bank to which

 

 

funds are to be transferred:

 

Name of Account, if
applicable:

 

 

Account Number:

 

 

Additional information:

 

MAILINGS:

 

Please specify the person to whom the Borrower should
send financial and compliance information received subsequent to the closing
(if different from primary credit contact):

 

Name:

 

 

Street Address:

 

 

City, State, Zip Code:

 

 

It is very important that all the above information be
accurately completed and that this questionnaire be returned to the person
specified in the introductory paragraph of this questionnaire as soon as
possible. If there is someone other than yourself who should receive this
questionnaire, please notify us of that person’s name and Fax number and we
will Fax a copy of the questionnaire. If you have any questions about this
form, please call Agency Administration at Icahn Agency Services LLC.

 

 

EXHIBIT B

 

FORM OF

 

ASSIGNMENT AND ACCEPTANCE

 

Reference is made to the Credit Agreement dated as of December 29,
2009 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Tropicana Entertainment Inc., (the “Borrower”),
the Lenders (as defined therein), and Icahn Agency Services LLC, as
administrative agent (in such capacity, the “Administrative Agent”) and as
collateral agent (in such capacity, the “Collateral Agent”) for the Lenders.
Terms defined in the Credit Agreement are used herein with the same meanings.

 

1. For an agreed consideration, the Assignor hereby
irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes, from the Assignor, effective as of the
Effective Date set forth below (but not prior to the registration of the
information contained herein in the Register pursuant to Section 9.04(e) of
the Credit Agreement), the interests set forth below (the “Assigned Interest”)
in the Assignor’s rights and obligations under the Credit Agreement and the
other Loan Documents, including, without limitation, the amounts and
percentages set forth below of (i) the Commitments of the Assignor on the
Effective Date and (ii) the Loans owing to the Assignor which are
outstanding on the Effective Date. Each of the Assignor and the Assignee hereby
makes and agrees to be bound by all the representations, warranties and
agreements set forth in Section 9.04(c) of the Credit Agreement, a
copy of which has been received by each such party. From and after the
Effective Date (i) the Assignee shall be a party to and be bound by the
provisions of the Credit Agreement and, to the extent of the interests assigned
by this Assignment and Acceptance, have the rights and obligations of a Lender
thereunder and under the Loan Documents and (ii) the Assignor shall, to
the extent of the interests assigned by this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement.

 

2. This Assignment and Acceptance is being delivered
to the Administrative Agent together with (i) if the Assignee is organized
under the laws of a jurisdiction outside the United States, any forms referred
to in Section 2.17(e) of the Credit Agreement, duly completed and
executed by such Assignee, (ii) if the Assignee is not already a Lender
under the Credit Agreement, a completed Administrative Questionnaire and all
applicable tax forms and (iii) if required by Section 9.04(b) of
the Credit Agreement, a processing and recordation fee of $3,500.

 

3. This Assignment and Acceptance shall be governed by
and construed in accordance with the laws of the State of New York.

 

Date of Assignment:

 

Legal Name of Assignor (“Assignor”):

 

Legal Name of Assignee (“Assignee”):

 

Assignee’s Address for Notices:

 

Effective Date of Assignment (“Effective Date”):

 

1

 

 

 

	
   

  	
   

  	
   

  	
   

  	
  Percentage
  Assigned (set

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  forth,
  to at least 8 decimals, as

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  a
  percentage of the facility and

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  the
  aggregate Loans and

  	
   

  
	
  Loan/Commitments

  	
   

  	
  Principal Amount Assigned(1)

  	
   

  	
  Commitment of all Lenders)

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  %

  

 

[Remainder of page intentionally
left blank]

 

(1)                           Amount
assigned is governed by Section 9.04(b) of the Credit Agreement.

 

The terms set forth in this Assignment and Acceptance
are hereby agreed to:

 

 

 

	
   

  	
   ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   ASSIGNEE

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Consented to and Accepted:

  
	
  ICAHN
  AGENCY SERVICES LLC,

  
	
  as
  Administrative Agent,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [TROPICANA
  ENTERTAINMENT INC.

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:](1)

  	
   

  
						

 

2

 

(1) Consent
of the Borrower applicable only to the extent no Event of Default has occurred
and is continuing.

 

3

 

EXHIBIT C

 

FORM OF

 

BORROWING REQUEST

 

Icahn Agency Services LLC, as Administrative Agent for

the Lenders referred to below,

767 Fifth Avenue, 47th Floor

New York, New York 10153

Attention: Keith Cozza, Closing Administration

 

[DATE](1)

 

Ladies and Gentlemen:

 

The undersigned, Tropicana Entertainment Inc. (the “Borrower”),
refers to the Credit Agreement dated as of December 29, 2009 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among the Borrower, the Lenders (as defined therein), and Icahn
Agency Services LLC, as administrative agent (in such capacity, the “Administrative
Agent”) and as collateral agent (in such capacity, the “Collateral Agent”) for
the Lenders. Capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Credit Agreement.

 

The Borrower hereby gives the Administrative Agent
notice pursuant to Section 2.03 of the Credit Agreement that it requests a
Borrowing under the Credit Agreement, and in connection therewith sets forth
below the terms on which such Borrowing is requested to be made:

 

(1)                                                                                  Administrative Agent must be notified by
telephone (with such telephonic notification to be confirmed promptly by hand
delivery or fax) [  ], not later than
10:00 a.m., New York City time, two (2) Business Days before a
proposed Borrowing.

 

(A) Date of Borrowing

(which shall be a Business Day)

 

(B) Account Number and Location

 

(C) Principal Amount of Borrowing

 

1

 

The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders that, on the date of the Borrowing
requested above, the matters specified in Sections 2.04, 4.01(b) and 4.01(c) of
the Credit Agreement shall have been satisfied.

 

	
   

  	
  TROPICANA ENTERTAINMENT INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2Exhibit 10.1

 

CONTRACT # LS2009-229

 

between

 

ROYAL CANADIAN MINT

 

and

 

SPROTT ASSET MANAGEMENT LP

FOR AND ON BEHALF OF

SPROTT PHYSICAL GOLD TRUST

 

PRECIOUS METALS

STORAGE CONTRACT

 

 

 

GOLD STORAGE AGREEMENT

 

THIS AGREEMENT made in duplicate this                  day
of               ,
20

 

	
  B E T W E E N:

  	
  ROYAL CANADIAN
  MINT,

  
	
   

  	
  Ottawa, Ontario, Canada, a Body Corporate established by
  the Royal Canadian Mint Act, 1985 S.C., c.R-9.

  
	
   

  	
  (hereinafter called the “Mint”)

  
	
   

  	
   

  
	
   

  	
  OF THE FIRST PART

  
	
   

  	
   

  
	
  A N D:

  	
   

  
	
   

  	
  SPROTT ASSET MANAGEMENT LP

  
	
   

  	
  for and on behalf of Sprott Physical Gold Trust, a trust
  organized under the laws of the Province of Ontario  (hereinafter called the “Customer”)

  
	
   

  	
   

  
	
   

  	
  OF THE SECOND PART

  

 

The Mint and the Customer hereby agree as follows:

 

1.              Definitions

 

“Agreement” means this agreement and any document referred
to in this agreement as forming part of this agreement.

 

“Business Day” means any Monday to Friday inclusively,
excluding holidays observed by the Mint.

 

“Contracting Authority” means the representative of a
party who is responsible for the management and administration of this
Agreement.

 

“Force Majeure” means circumstances or causes beyond a
party’s reasonable control, including, without limitation, acts or omissions or
the failure to cooperate of the other

 

2

 

party (including, without limitation, entities or
individuals under its control, or their respective officers, directors,
employees or other personnel and agents), acts or omissions or the failure to
cooperate by any third party, fire or other casualty, act of God, strike or
labour dispute, war or other violence, or any law, order or requirement of any
governmental agency or authority.

 

“Gold” shall mean gold in the form of London Good Delivery
bars.

 

“herein”, “hereby”, “hereunder”, when used in any section
shall, unless the contrary is apparent from the context, be understood to
relate to the Agreement as a whole, and not merely to the section in which they
appear.

 

“Improperly Packed Pallet” means bars that are not
securely or safely packed on a well constructed sturdy wood pallet.

 

“London Good Delivery Bars” means gold bars that meet the
standard measure of quality in gold bullion, as set forth by the London Bullion
Market Association.

 

“Mint’s Facility” means the Mint’s premises located at 320
Sussex Drive, Ottawa, Ontario.

 

“Property” means Gold that belongs to the Customer or in
regards to which the Customer is the duly authorized agent of the owner.

 

“Receipt of Deposit” means the document issued by the Mint
and confirming the bar count and the total weight of Gold, in fine ounces,
received by the Mint in a particular delivery.

 

“Transfer of Allocated Storage” means the transfer of
allocated Gold to another customer allocated storage account held by the Mint.

 

“Withdrawal” means the physical removal of the Property or
a portion thereof from the Mint’s Facility.

 

2.              Contracting Authority

 

(a)          The Chief Operating Officer, an officer of the Mint, shall be the
Contracting Authority for the Mint and shall be responsible for the
administration and management of this Agreement.

 

(b)         The
Chief Financial Officer, an officer of the Customer, shall be the Contracting
Authority for the Customer and shall be authorized to act on behalf of the Customer
with respect to amendments to, or changes in, any of the terms of this
Agreement as well as with respect to any other document hereunder.

 

3

 

(c)          No
delegation of authority and authorization of a representative by the
Contracting Authority of the Mint or the Contracting Authority of the Customer
shall be effective unless the authorization and delegation is in writing,
specifying the nature and extent of the authorization given and the names of
the representatives, and is duly executed and delivered to the Customer or the
Mint, as the case may be, by the Contracting Authority.

 

3.              Description of Service

 

(a)          The Mint agrees to maintain an inventory of Property on behalf of the
Customer at the Mint’s Facility under the terms and conditions set forth in
this Agreement and the Mint agrees to exercise the same degree of care and
diligence in safeguarding the Property as any reasonably prudent person acting
as a custodian would exercise in the same circumstance.

 

(b)         From
time to time during the term of this Agreement, the Customer shall give written
notice (hereinafter an “Initial Notice”) to the Mint of its intention to have
Property delivered to the Mint for storage at the Mint’s Facility. The Initial
Notice shall be delivered to the Mint at least two (2) Business Days prior
to the Business Day the Customer intends for the Mint to receive the Property.
Upon receipt of an Initial Notice, the Mint will confirm to the Customer within
one (1) Business Day an acceptable receipt date for the delivery of the
Property. The Mint reserves the right to suggest an alternative receipt date
for delivery, or refuse receipt of a delivery in the event of storage capacity
limitations.

 

(c)          Initial Notices shall specify the amount, weight, type, assay
characteristics, bar numbers, and declared value of Property to be stored. The
Customer agrees that it shall never conceal or misrepresent any material fact
or circumstance concerning the Property delivered to the Mint. The Initial
Notice shall also inform the Mint as to the identity of the armoured carrier
company that will transport the Property from the Customer’s location to the
Mint’s Facility.

 

(d)         If the
Property arrives at the Mint’s Facility without having given the Initial Notice
or if the Property arrives in advance of receiving a confirmed receipt date
from the Mint, the whole in accordance with Clause 3(b), the Mint has the right
and may choose to return the Property to the Customer at the latter’s cost.

 

(e)          Upon receiving Property at the Mint’s Facility, the Mint will compare the
bar numbers stated in the Initial Notice against the corresponding bar number
imprinted on each bar provided by the Customer. The Mint will also weigh each
bar and compare its results with the weight stated in the Initial Notice.

 

(f)            Once bar numbers and weights stated in the Initial Notice have been
successfully verified, the Mint shall confirm to the Customer receipt of said
Property by providing

 

4

 

to the Customer by facsimile transmission a Receipt of
Deposit confirming the bar count and total weight of the Gold received in fine
ounces.

 

(g)         In the
event the Mint discovers a discrepancy between its bar count and the
information stated in the Initial Notice, it shall promptly notify the Customer
of such a discrepancy. In such a case, the Mint will suspend all activity and
the Customer shall forthwith either: (i) provide written instructions to
the Mint for the return of the Property to the Customer, at the latter’s cost;
or (ii) issue a revised Initial Notice to correct said discrepancy.

 

(h)         In the
event the Mint discovers a discrepancy of one half ounce (0.5 oz) or more
between the weight of the Property stated in the Initial Notice and the weight
as calculated by the Mint, it shall promptly notify the Customer of such a
discrepancy. In such a case, the Mint will suspend all activity and the
Customer shall forthwith either: (i) provide written instructions to the
Mint for the return of the Property to the Customer, at the latter’s cost; or (ii) issue
a revised Initial Notice to correct said discrepancy.

 

(i)             The parties expressly understand and agree that the Mint does not assume
any liability as to the authenticity or assay characteristics of any Property
and/or in regards to any discrepancies identified between the weight and bar
count of the Property as stated in the Initial Notice and the actual weight and
bar count of the Property delivered.

 

(j)             If the Property arrives at the Mint’s Facility on Improperly Packed
Pallets, the Customer will be notified by the Mint that it considers the state
of the packing to pose a potential safety hazard and the Mint will repack the
pallet at the Customer’s expense at the rate set out in the rate schedule attached
hereto (hereinafter the “Rate Schedule”).

 

(k)          From time to time during the term of this Agreement, the Customer may
give written notice to the Mint of its intention to withdraw Property from its
inventory. Such written notice shall be delivered to the Mint at least two (2) Business
Days prior to the Withdrawal date and shall: (i) specify the Property to
be withdrawn from the inventory; (ii) specify the Business Day on which
the Withdrawal is to occur; and (iii) contain the name of the armoured
carrier to whom the Mint shall remit the Property that is to be withdrawn from
inventory.

 

(l)             Upon receipt of proper and complete instructions in writing from the
Customer, and for the fee set forth in the Rate Schedule, the Mint will
transfer the Property or a portion thereof to a third party who has an
allocated storage account with the Mint. The written transfer order must
include an authorised signature. Transfers of Allocated Storage shall be
processed within one (1) Business Day from reception of proper and
complete instructions in writing and will be confirmed to the recipient by
facsimile on the day of transfer.

 

5

 

(m)       The
Customer shall provide the Mint with the names and signatures of the Customer’s
authorized representatives who are empowered to issue orders for Transfers of
Allocated Storage or for Withdrawals of the Property from the Mint’s Facility.
It is expressly understood and agreed that the Mint shall not be liable for any
transfer of Property made under a Transfer of Allocated Storage or for any
Withdrawal order fraudulently executed in the name of an authorized Customer
representative, nor for any Transfer of Allocated Storage for a Withdrawal made
where the authority of any such representative has been revoked and the Mint
has not been notified thereof in writing in due time.

 

(n)         The Mint
shall provide the Customer with not less than 30 days’ written notice of any
cancellation or termination of the Mint’s insurance coverage of the Property
while in the Mint’s possession.

 

(o)         Nothing
contained in this Agreement shall create between the parties the relationship
of principal and agent, mandatory and mandatary, partnership or joint venture.
The Customer has no authority to and undertakes not to make any representation
relating to the Mint, nor give any warranty or representation on behalf of the
Mint, without the Mint’s prior written authorization. The Customer will be
liable for any and all damages, losses and costs, including special,
incidental, consequential, indirect and punitive damages, losses and costs
(including lost profits and lost savings) suffered by the Mint as a result of a
breach of any of the above undertakings. The Customer recognizes and
acknowledges that any breach or threatened breach of the above undertakings may
cause the Mint irreparable harm for which monetary damage may be inadequate.
The Customer agrees therefore that the Mint shall be entitled to an injunction
to restrain the Customer from such breach or threatened breach.

 

4.              Segregation of Property

 

The Mint shall keep the Property specifically identified
as the Customer’s Property and physically segregated at all times from any
other property belonging to the Mint or other of its customers.

 

5.              Inventory Statements

 

The Mint will send the Customer an inventory statement on
a monthly basis. The monthly inventory statements will also include a summary
of all Receipts of Deposit, Transfers of Allocated Storage and Withdrawals of
Property for the given month.

 

6.              Audit and Security and Safety Requirements

 

Upon request, on any Business Day during the Mint’s
regular business hours, and with reasonable prior notice, the Mint will allow
the Customer’s authorized employees and representatives access to the Mint’s
Facility for the purpose of performing a physical

 

6

 

audit of the Property held in custody by the Mint for the
Customer, provided that such audit does not disrupt the routine operation of
the Mint’s Facility. The Mint shall also provide the Customer’s employees and
representatives with the Mint’s inventory records relating to the Property. The
Customer’s employees and representatives shall present proper credentials to
the Mint’s Facility manager as a condition of being admitted to the Mint’s
Facility.

 

The Customer agrees to be bound by the Mint’s security
procedures and policies. All authorized employees and representatives who are
allowed access to the Mint’s Facility pursuant to the present Agreement will be
subject to security clearance prior to being admitted to the Mint’s Facility.

 

The Customer’s authorized employees and representatives
could possibly be subject to search while at the Mint’s Facility.

 

Prior to arriving at the Mint’s Facility, the Customer
shall obtain, from the Contracting Authority, the details of the Mint’s safety
regulations.

 

7.              Indemnity

 

(a)          The Customer shall indemnify and hold harmless the Mint, its directors,
officers, employees and agents from and against any damages, losses, injuries,
costs or expenses or any claim, action, suit or other proceeding, including
reasonable settlement, judgment and attorney’s fees, arising out of the
presence of any of the Customer’s employees, agents or contractors on the
premises of the Mint’s Facility in connection with this Agreement.

 

(b)         The
Customer warrants that it has legal title to the Property delivered to the
Mint’s Facility or is the duly authorized agent of the owner of the Property,
with the right in either instance to transfer possession of the Property to the
Mint free and clear of all liens and encumbrances. The Customer shall indemnify
and hold harmless the Mint, its directors, officers, employees and agents, from
and against any damages, losses, injuries, costs or expenses or any claim,
action, suit or other proceeding, including reasonable settlement, judgment and
attorney’s fees, arising out of any breach of this warranty.

 

8.              Service Charges and Payment

 

(a)          Except as otherwise provided for in this Agreement, the Customer shall
pay the Mint, for the services provided by the Mint under this Agreement, upon
presentation of monthly invoices, the charges set forth in the Rate Schedule.

 

(b)         Federal,
Provincial and/or local taxes, where applicable, shall be added to the charges
set forth in the Rate Schedule.

 

7

 

(c)          The Customer shall effect payment to the Mint for value in USD funds by
wire transfer using the following instructions:

 

	
   

  	
  US Correspondent Bank:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Destination Bank:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Beneficiary:

  	
   

  
	
   

  	
   

  	
  Transit:

  	
   

  
	
   

  	
   

  	
  Account:

  	
   

  

 

(d)         All
charges remaining unpaid after the invoice due date will be subject to interest
at a rate of 11/2 percent (1.5%) per month, but in no event to
exceed the highest rate allowed by applicable law.

 

(e)          The Mint may increase the charges set forth in the Rate Schedule
following a thirty (30) day written notice to that effect in the event of a
change in economic conditions beyond the Mint’s control that increases
operating costs incurred by the Mint. Within ten (10) Business Days of
receipt of said notice, the Customer may provide the Mint with written instructions
for the return of the Property. The costs for returning the Property shall be
borne by the Customer.

 

(f)            If the Customer defaults in the full and timely payment of any monies due
to the Mint pursuant to this Agreement and/or the terms stated in the Mint’s
invoice, or otherwise defaults in the performance of any of the Customer’s
other obligations to the Mint, then the Customer shall be responsible for,
without prejudice to the Customer’s other obligations pursuant to the present
Agreement and/or by way of law and/or equity, the reimbursement of any legal
fees and other reasonable costs and expenses incurred by the Mint in the
collection of any said monies due to the Mint (which monies, obligations, fees,
costs and expenses shall hereinafter be collectively referred to as the “Unpaid
Obligations”), and the Mint, in addition to any and all other rights and
remedies provided for in this Agreement and/or by way of law and/or equity,
shall be permitted to retain as a credit and to offset against such Unpaid Obligations,
on a dollar for dollar basis, any Property deposited or caused to have been
deposited with or otherwise delivered to the Mint for safekeeping, or any other
purpose on behalf of the Customer.

 

8

 

(g)         It is
agreed that the Mint will have no obligation to proceed with a requested
Withdrawal and/or a Transfer of Allocated Storage until all sums due to the
Mint per the present Agreement have been paid in full.

 

9.              Risk and Liability

 

(a)          The Mint shall take good care, custody and control of the Property in its
possession pursuant to the terms of this Agreement and shall bear all risk of
physical loss or damage thereto from the time the Property has been received by
the Mint in accordance with the terms and conditions set forth in the present
Agreement and has been taken into the Mint’s possession and control, whether
through physical delivery or through a Transfer of Allocated Storage. The
Mint’s liability shall terminate in respect of any portion of the Property upon
termination of the Agreement, whether or not the Property remains in the Mint’s
possession and control, upon transfer of the Property via a Transfer of
Allocated Storage, as requested by the Customer, or upon remittance to an
armoured carrier designated by the Customer in the event of a Withdrawal.

 

(b)         The
Customer shall cause the Property to be received by the Mint to be packaged in
accordance with the custom of the trade so that the Property is not reasonably
susceptible to damage during the Mint’s performance of this Agreement.

 

(c)          Conditional upon the Customer giving a written notice in the time and
manner described in Section 10 herein, in the event of physical loss or
destruction (whether through fraud, theft, negligence or otherwise and
regardless of culpability by the Mint) while Property is in the Mint’s
possession and control during the term of this Agreement or any renewal(s) thereof,
the Mint will either, at its option, (i) replace the lost or destroyed
Property within five (5) Business Days from the date the Mint becomes
aware of said loss or destruction, based on the advised weight and advised
assay characteristics provided in the Customer’s Initial Notice; or (ii) compensate
the Customer for the monetary value of the lost or destroyed Property within
five (5) Business Days from the date the Mint becomes aware of said loss
or destruction, based on the advised weight and assay characteristics provided
in the Customer’s Initial Notice and the market value of the lost Property,
using the first available Gold PM Fixing of the LBMA from the date the Mint
becomes aware of said loss or destruction.

 

(d)         Conditional
upon the Customer giving a written notice in the time and manner described in Section 10
herein, in the event of physical damage to Property while Property is in the
Mint’s possession and control during the term of this Agreement or any renewal(s) thereof,
the Mint will restore the portion of damaged Property to at least as good as
state as it was prior to being so damaged within five (5) Business Days
from the date the Mint becomes aware of said damage.

 

9

 

(e)          Upon replacement of the lost and/or destroyed Property as provided for
above, the Customer hereby agrees to and does hereby assign to the Mint all of
its right, title and interest in said lost and/or destroyed Property; upon
replacement of lost and/or destroyed Property and/or upon restoration of
damaged Property, the Customer hereby agrees to and does hereby assign to the Mint
all of its rights of recovery against third parties that are the subject of a
claim and/or against whom a claim can be instituted, and to execute any
documents as may be reasonably necessary to perfect such assignment upon
request by the Mint or the Mint’s insurers.

 

(f)            The Mint shall provide the Customer with not less than 30 days’ written
notice of any cancellation or termination of the Mint’s insurance coverage of
the Property while in the Mint’s possession.

 

10.       Notice of Claims

 

(a)          The Customer and the Mint shall maintain a record of all Property
delivered to the Mint.

 

(b)         In the
event of loss, damage or destruction of the Property under this Agreement, the
Customer shall give written notice to the Mint informing the latter of such an
event within five (5) Business Days after discovery of any such loss,
damage or destruction, but, in the case of loss or destruction of the Property,
in no event more than thirty (30) calendar days after delivery by the Mint to
the Customer of an inventory statement in which a discrepancy first appears. In
the case of loss or destruction of the Property, said written notice is to
include an affirmative written proof of the Property lost or destroyed,
subscribed and sworn to by the Customer and substantiated by the books, records
and accounts of the Customer. Unless notice is given as aforesaid, all claims
shall be deemed to have been waived. No action, suit or other proceeding to
recover for any loss, damage or destruction shall be brought against the Mint
unless notice shall have been given as aforesaid and unless such action, suit
or proceeding shall have been commenced within twelve (12) months from the time
said written notice is sent to the Mint pursuant to this paragraph.

 

(c)          The parties shall promptly and diligently assist each other to establish
the identity of the Property lost or destroyed, and shall take all such other
reasonable steps as may be necessary to assure the maximum amount of salvage at
a minimum cost.

 

11.       Consequential Damages

 

The Mint shall not be liable under any circumstance
whatsoever for special, incidental, consequential, indirect or punitive losses
or damages (including lost profits or lost savings), except as a result of
gross negligence or wilful misconduct by the Mint and whether or not the Mint
had knowledge that such losses or damages might be incurred.

 

10

 

12.  Transportation
of Property

 

In the event the Mint makes arrangements to have the
Property transported to the Mint’s Facility or to deliver Property from the
Mint’s Facility to the Customer’s facility or its designated consignee, such
transportation service shall be performed pursuant to a separate agreement
between the Customer and the Mint and the Customer shall reimburse the Mint for
all costs associated therewith.

 

13.  Hazardous
Substances and Right to Refuse Shipment

 

(a)          The Customer hereby certifies that any and all Property sent to the
Mint’s Facility shall be free of hazardous substances including, but not
limited to, beryllium, cadmium, mercury, polychlorinated biphenzyls and
radioactive material. The Mint reserves the right to sample and test the
Property for the presence of hazardous substances.

 

(b)         The Mint
shall have the right to refuse delivery or reject Property that, in the Mint’s
opinion, acting reasonably, contains a hazardous substance, or is, or becomes,
unsuitable or undesirable whether for metallurgical, environmental or other
reasons. Without prejudice to the Mint’s right to refuse delivery or reject
Property as described above, prior to the Mint doing same, the Mint shall
discuss the situation with the Customer.

 

(c)          Property that is rejected by the Mint pursuant to paragraph (b) shall
be returned to the Customer at the latter’s cost. The Customer shall, upon
reception of a notice of rejection from the Mint, provide the Mint with written
instructions detailing the Customer’s arrangements for return of the Property.
Pending receipt of such instructions, the Mint may take action, as it considers
appropriate, for the proper packaging and handling of the Property. Any
expenses incurred by the Mint in doing so shall be for the Customer’s account.

 

(d)         The
Customer shall be liable and shall indemnify and hold harmless the Mint, its
directors, officers, employees and agents, from and against any damages,
losses, injuries, costs or expenses or any claim, action, suit or other
proceeding, including reasonable settlement, judgment and attorney’s fees,
arising out of the presence of any hazardous substances contained in the
Property.

 

14.  Force
Majeure

 

Neither the Mint nor the Customer will be liable for
failure to perform obligations under this Agreement if the failure is caused by
directly or indirectly by a case of Force Majeure.

 

11

 

15.  Term
of the Agreement and Return of Property

 

This Agreement shall be effective as of the date of signing
and shall continue thereafter for a term of three (3) years, unless
earlier terminated in accordance with the terms of this Agreement.

 

Prior to the expiration of the term of any renewal(s) thereof,
the Customer shall provide the Mint with written instructions regarding the
return of the Property. The costs for returning the Property shall be borne by
the Customer. Property left in storage at the Mint’s Facility after the
expiration date will be subject to storage and handling charges which may
differ from those set out in the Rate Schedule attached hereto. The Customer
also agrees to reimburse the Mint for any and all costs incurred by the Mint by
reason of the Property having been left in storage at the Mint’s Facility after
the expiration date.

 

16.  Termination
for Default

 

Where: (i) the Customer is in default in carrying out
any of its obligations under this Agreement and fails to correct said default
within ten (10) Business Days following a written notice sent by the Mint
to the Customer informing the latter of the default; (ii) the Customer is
dissolved or adjudged bankrupt, or a trustee, receiver or conservator of the
Customer or of its property is appointed, or an application for any of the
foregoing is filed; or (iii) the Customer is in breach of any
representation or warranty contained herein, the Mint may, upon giving written
notice to the Customer, terminate this Agreement.

 

Where: (i) the Mint is in default in carrying out any
of its obligations under this Agreement and fails to correct said default
within ten (10) Business Days following a written notice sent by the
Customer to the Mint informing the latter of the default; (ii) the Mint is
dissolved or adjudged bankrupt, or a trustee, receiver or conservator of the
Mint or of its property is appointed, or an application for any of the
foregoing is filed; or (iii) the Mint is in breach of any representation
or warranty contained herein, the Customer may, upon giving written notice to
the Mint, terminate this Agreement.

 

Upon the giving of a written notice of termination by
either party pursuant to the terms of the present section, the Customer shall
inform the Mint in writing of its instructions for the return of the Property
and the costs for returning the Property to the Customer shall be borne by the
Customer. Property left in storage at the Mint’s Facility after the termination
date will be subject to storage and handling charges which may differ from
those set out in the Rate Schedule attached hereto. Also, the Customer agrees
to reimburse the Mint for any and all costs incurred by the Mint by reason of
the Property having been left in storage at the Mint’s Facility after the
termination date.

 

In case of termination by the Mint pursuant to the present
section, the Customer shall be liable towards the Mint for all losses and
damages which may be suffered by the Mint by reason of the default or
occurrence upon which the notice was based. In case of

 

12

 

termination by the Customer pursuant to the present
section, the Mint shall be liable towards the Customer for all losses and
damages which may be suffered by the Customer by reason of the default or
occurrence upon which the notice was based.

 

17.  Termination
for Convenience

 

Notwithstanding anything contained in this Agreement, the
Mint may, at its sole discretion and at any time prior to the expiration of the
term of any renewal(s) thereof, terminate this Agreement by giving the
Customer thirty (30) calendar days written notice to that effect.

 

Upon a notice of termination being given pursuant to the
terms of the present section, the Customer shall inform the Mint in writing of
its instructions for the return of the Property. In the event of termination
under the present section, the costs of returning the Property to the Customer
shall be borne by the Mint. Property left in storage at the Mint’s Facility
after the termination date due to the Customer not having given said return
instructions prior to termination date will be subject to storage and handling
charges which may differ from those set out in the Rate Schedule attached
hereto. Also the Customer agrees to reimburse the Mint for any and all costs
incurred by the Mint by reason of the Property having been left in storage at
the Mint’s Facility after the termination date due to the Customer not having
given said return instructions prior to termination date.

 

In the event of termination under the present section, the
Customer will have no claim for compensation except as otherwise specified in
the present Agreement and will have no claim for damages or loss of profit as a
result of the termination.

 

18.  Notices

 

Any notice given under this Agreement will be in writing
and will be delivered by messenger, prepaid registered mail, facsimile or email
to the following addresses:

 

	
  If to the Mint:

  	
  If to the Customer:

  
	
   

  	
   

  
	
  Director, Mint Office

  	
  Steven Rostowsky

  
	
  Royal Canadian Mint

  	
  Chief Financial Officer

  
	
  320 Sussex Drive

  	
  Sprott Asset Management LP

  
	
  Ottawa, ON

  	
  200 Bay Street, Suite 2700

  
	
  Facsimile: (613) 998-1330

  	
  Toronto, Ontario M5J 2J1

  
	
  E-mail: entwistle@mint.ca

  	
  Facsimile: (416) 943-6497

  
	
   

  	
  E-mail : srostowsky@sprott.com

  

 

A party may change its address by informing the other
party of the new address in writing. Each such notice or other communication
shall be deemed given: (i) when received, if delivered by messenger; (ii) upon
confirmation of receipt, if given by

 

13

 

facsimile or email; or (iii) three (3) Business
Days after the date of mailing when sent by prepaid registered mail.

 

19.  Waiver

 

The failure of a party to insist upon strict adherence to
any term of this Agreement on one or more occasions will not be considered a
waiver or deprive the party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

 

20.  Entire
Agreement

 

This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof and shall supersede all
prior and/or contemporaneous offers, negotiations, promises, exceptions and
understandings, whether oral or written, between the parties hereto with
respect to the subject matter hereof.

 

21.  Amendments

 

Except as specifically provided for herein, this Agreement
may not be waived, altered or amended except by an instrument in writing duly
executed by the Customer and the Mint.

 

22.  Assignment

 

This Agreement shall be binding on the Customer and the
Mint and their respective successors and assigns. Neither the Customer nor the
Mint shall assign or transfer its rights or obligations hereunder without the
prior written consent of the other. Any such consent shall not be unduly
delayed or unreasonably withheld.

 

23.  Governing
Law

 

This Agreement will be governed by and construed in
accordance with the laws in force in the province of Ontario.

 

24.  No
Bribe

 

The Customer warrants:

 

(a)          that no bribe, gift or other inducement has been paid, given, promised or
offered to any official or employee of the Mint for, or with a view to, the
obtaining of the Agreement by the Customer, and

 

(b)         that it
has not employed any person to solicit or secure the Agreement upon any
agreement for a commission, percentage, brokerage or contingent fee.

 

14

 

25.  Members
of the House of Commons

 

No Member of the House of Commons shall be admitted to any
share or part of the Agreement or to any benefit to arise therefrom.

 

26.  Confidentiality

 

All information regarding the Property, including, but not
limited to: (i) kind, type, quantity, form and size of the Property in
inventory at any time; and (ii) customers of the Customer to whom Property
is released or transferred, is considered by the Customer to be confidential.
The Mint shall keep such information confidential and not use such information,
either for its own benefit or for the benefit of any third party or disclose
such information, either directly or indirectly, except as required by
applicable legislation, government directives and/or policies and except that
the Mint may use and/or disclose such information in litigation; provided,
however, that the Mint shall promptly notify the Customer of the circumstances
requiring such disclosure (unless such notice is prohibited by order, subpoena,
applicable legislation, government directives and/or policies).

 

27.  Investment
Advice

 

It is understood and agreed that, as part of its services
under this Agreement, the Mint has not undertaken a duty to supervise the
Customer’s investment in, or to make any recommendation to the Customer with respect
to the purchase, sale or other disposition of any Property or the balance of
Property the Customer maintains in inventory.

 

15

 

IN WITNESS WHEREOF, each of the parties hereto has caused
this Agreement to be executed on its behalf by its duly authorized officer(s),
as of the date and year written above.

 

 

Royal Canadian Mint

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Beverley Lepine

  	
   

  
	
   

  	
  Chief Operating Officer

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  John Moore

  	
   

  
	
   

  	
  Executive Director,

  	
   

  
	
   

  	
  Bullion and Refinery

  	
   

  

 

 

Sprott Asset Management LP

for and on behalf of Sprott Physical Gold Trust, by its
general partner Sprott Asset Management GP Inc.

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Kirstin McTaggart

  	
   

  
	
   

  	
  Chief Compliance Officer

  	
   

  

 

16

 

RATE SCHEDULE to Gold Storage Agreement dated                        by
and between the Royal Canadian Mint and Sprott Physical Gold Trust
(“Customer”).

 

STORAGE AND HANDLING CHARGES

 

PRECIOUS METAL NON EXCHANGE MONTHLY STORAGE AND WITHDRAWAL
CHARGE (by type and weight)

 

	
  TYPE AND
  WEIGHT

  	
   

  	
  STORAGE
  RATES

  	
   

  	
  WITHDRAWAL
  RATES

  
	
  London
  Good Delivery Gold Bars

  	
   

  	
  USD
  $10.00 per bar per month

  	
   

  	
  USD
  $5.00 per bar withdrawn (packing charge) plus

  USD $50.00 per withdrawal (administration fee)

  

 

MISCELLANEOUS CHARGES:

 

	
  Transfer
  of Allocated Storage

  	
  USD
  $50.00 per transfer

  
	
  Repacking
  of Pallet

  	
  USD
  $50.00 per pallet packing fee

  

 

17

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