Document:

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                                                                   EXHIBIT 10.66

                                     [LOGO]

                         COLLECTIVE BARGAINING AGREEMENT

                                     BETWEEN

               PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY

                                       AND

                 WEST VIRGINIA UNION OF MUTUEL CLERKS, LOCAL 553
                 SERVICE EMPLOYEES INTERNATIONAL UNION, AFL-CIO

                       JANUARY 1, 2001 - DECEMBER 31, 2004

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

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<TABLE>
<CAPTION>
                               TABLE OF CONTENTS

ARTICLE NUMBER                          SUBJECT                                PAGE
--------------                          -------                                ----
<S>                                     <C>                                    <C>
       1                                Recognition                              3
       2                                Term of Agreement                        4
       3                                Wages and Other Rates                    4
       4                                New Jobs                                 6
       5                                Union Security                           7
       6                                Seniority                                8
       7                                Leave of Absence                        13
       8                                Discharge                               14
       9                                Grievance Procedure                     16
      10                                Military Service                        17
      11                                Shortages and Overages                  17
      12                                Exclusions                              17
      13                                No Strike or Lockout                    18
      14                                Notice                                  19
      15                                Management's Prerogitives               20
      16                                Funeral Leave                           21
      17                                Technological Displacements             21
      18                                Uniforms                                21
      19                                Severability                            22
      20                                Pension Plan                            22
      21                                Vacations                               23
      22                                Sunday Racing                           23
      23                                Video Lottery Agreement                 23
      24                                Employee Benefits                       24
  Schedule A                            Wage Schedule                           25
</TABLE>

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

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                                    AGREEMENT

         THIS AGREEMENT made and entered into this 1st day of January, 2001,
by and between PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY, or its
successors (hereinafter referred to as "EMPLOYER") and the WEST VIRGINIA
UNION OF MUTUEL CLERKS, LOCAL 553, SERVICE EMPLOYEES INTERNATIONAL UNION,
AFL-CIO, or its successor (hereinafter referred to as "UNION").

                                    PREAMBLE

         The general purpose of this Agreement is to set forth terms and
conditions of employment, and to promote orderly and peaceful labor relations
for the mutual interests of Employer, the Employees and Union.
         The parties recognize that the success of Employer and the job
security of the Employees depend on Employer's success in offering and
marketing quality thoroughbred and simulcast racing programs.
         To these ends, Employer and Union encourage to the fullest degree
friendly and cooperative relations between their respective representatives
at all levels and among all Employee's, whether or not covered by this
Agreement.

                             ARTICLE 1 - RECOGNITION

1.1    The Employer hereby recognizes the Union as the exclusive bargaining
representative with respect to wages, hours and other conditions of
employment for all Employees of the Employer who are employed at the PNGI
Charles Town Gaming Limited Liability Company, in the Pari-Mutuel Department,
Admissions Department, and Jockey-Valets, excluding the Mutuel Manager,
Assistant Mutuel Manager, Office Manager, Head Cashier, Assistant Head
Cashier, Porter, Auditor, Data Processing Employees and all Supervisory and
Security Personnel. At all times mentioned herein, "Employee" shall mean only
those Employees who are members in

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

good standing of the Union and there shall be no distinction between "live
racing" mutuel employees and simulcast mutuel employees. This Agreement shall
apply to existing job classifications set forth in Schedule A hereof and, in
addition to the exclusions set forth above, shall not apply to new job
classifications established by the Employer, except as specifically herein
provided.

                          ARTICLE 2 - TERM OF AGREEMENT

2.1    This Agreement shall be effective as of the 1st day of January, 2001,
and shall continue in force and effect until midnight, December 31, 2004; and
from year to year thereafter, unless either party, at least sixty (60) days
prior to said termination date, or prior to sixty (60) days before the end of
any subsequent term, gives written notice to the other to terminate this
Agreement. In the event that such notice is given, negotiations shall be
opened not less than sixty (60) days prior to the expiration date of this
Agreement, or any subsequent anniversary date.

                        ARTICLE 3 - WAGES AND OTHER RATES

3.1    Effective January 1, 2001, all Employees covered by this Agreement
shall receive a [ * ] across-the-board wage increase. Effective January 1,
2002, all Employees covered by this Agreement shall receive a [ * ]
across-the-board wage increase. Effective January 1, 2003 all employees
covered by this Agreement shall receive a [ * ] across-the-board wage
increase. Effective January 1, 2004, all Employees covered by this Agreement
shall receive a [ * ] across-the-board wage increase.

3.2    WAGES. The wages of pay for each classification effective during the
term of this Agreement shall be as set forth on Schedule A attached hereto.

3.3    The rates of pay set forth in Schedule A shall be paid for each race
day which consists of five hours worked. Pay will be in fifteen (15) minute
increments after five (5) hours.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

3.4    Unless notified by the Employer at least one hour prior to the
scheduled reporting time that there is no available work, the Employee who
reports for work shall receive [ * ]

3.5    Records showing overtime distribution shall be maintained by the
Employer, to the extent that payroll processes will permit, who will make
available to the Local Union, upon request, records of overtime assignment of
Employees, within a twenty-four (24) hour period of such request.

3.6    All Jockey-Valets shall receive for each racing day consisting of at
least eight (8) races but not more than ten (10) races, his/her normal daily
rate. For all races in excess of ten (10), each valet shall receive pay equal
to [ * ]his/her regular pay. Said pay shall be calculated by dividing the
base pay by ten (10) and multiplying the product of that calculation by [ * ]
for each race after ten (10).

3.7    All Mutuel Clerks covered by this Agreement shall receive [ * ] per
day extra pay for work performed on the day of the West Virginia Breeders
Classic race, the National Breeders Cup day and Triple Crown series, each of
which consists of a five (5) hour shift.

3.8    For a racing program which runs in excess of six (6) hours, an
Employee shall receive pay at [ * ] of the normal rate for all hours worked
in excess of six (6) hours, said pay for work over six (6) hours to be
calculated in fifteen (15) minute increments.

3.9    SELF-SERVICE MACHINES - The parties agree that the Employer can use
self-service machines until the machines exceed thirty percent (30%) of the
total handle for every day during the meets. In this event the Employer
agrees to assign more employees to teller terminals so as to keep the use of
self-service machines at thirty percent (30%) or less. The Employer shall
have

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

the sole right to determine the number of additional employees needed to
comply with this provision.

                              ARTICLES 4 - NEW JOBS

4.1    The Employer shall have the right to create any new Union job
classification in any department covered by this Agreement which it deems
appropriate and establish the rate of pay to be given such new
classification, provided, however, that the Employer, prior to the effective
date of such new job classification, shall meet with the Union to discuss
such new job classification and the proposed rate of pay. If there is no
agreement on the rate of pay for such new job classification within sixty
(60) calendar days of such first meeting, such dispute shall, at the option
of either party, be submitted to arbitration pursuant to the provisions of
ARTICLE 9 - GRIEVANCE PROCEDURE.

4.2    The Employer shall have the right to start operating under such new
job classifications and continue to operate the same at the rates established
by the Employer until agreement with the Union can be reached, or until the
decision of the arbitrator is received. If the Employer is ordered to pay a
higher rate by an arbitrator, or by agreement between the parties, all such
increases shall be made retroactive to the first day of hire of all Employees
in such new job classifications.
4.3    All new jobs created by the Employer under this Article 4 shall be
posted and filled by bidding as is provided for the filing of permanent job
vacancies in ARTICLE 6 - SENIORITY.

4.4    In the event that any additional new or alternative forms of gambling
are conducted by or at PNGI CHARLES TOWN GAMING LIMITED LIABILITY COMPANY,
limited to off-track wagering and telephone account wagering, all jobs
created as a result of this new gambling will be Union jobs and assigned by
the provisions of ARTICLE 6 - SENIORITY.

                           ARTICLE 5 - UNION SECURITY

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

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5.1    All new employees (employees hired on or after January 1, 2001)
included in the bargaining unit covered by this Agreement shall be considered
probationary employees until they have worked forty-five (45) programs at the
PNGI Charles Town Gaming Limited Liability Company. During an employee's
probationary period of employment, the Employer may terminate such
probationary employee at the Employer's sole discretion and such termination
shall not fall within the Grievance Procedure as provided by Article 9.

       Any employee who is a member of the Union on the effective date of
this Agreement shall be required, as a condition of employment, to remain a
member of the Union. Any other employee shall be required, as a condition of
employment, to become and remain a member of the Union upon the completion of
twenty (20) days or more of work, regardless of the number of years it takes
to accumulate such twenty (20) days. No full-time employee who is employed on
a regular basis shall be required to join the Union until he/she has worked
twenty (20) days.

5.2    The Employer may hire new Employees from any source, however, it
agrees that it will not discriminate against Union members, if they are
qualified. Management's decision on qualifications and whether such applicant
is satisfactory, shall be binding on all parties.

5.3    The Union agrees that all Employees included in the bargaining unit
covered by this Agreement shall be admitted to membership in the Union upon
application and tender of regular dues and initiation fees which uniformly
apply to all members of the Union at such time.

5.4    The Employer agrees to deduct Union dues and initiation fees from the
wages of Employees who authorize such deductions in writing pursuant to a
procedure and on a form mutually acceptable to the Employer and the Union. In
the event any Employee shall become delinquent in the payment of dues,
regular initiation fees and assessments and fines which universally apply to
all members of the Union, and the Union shall give written notice of such
delinquency to the Employer; then and in that event, the Employer shall
discharge such Employee, if the Employee has not paid such delinquency within
five (5) days from the receipt of such written notice to the Employer.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

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5.5    The Union will defend, indemnify and save harmless the Employer herein
against all claims, demands, liabilities and disputes that may arise out of
or by reason of any action taken or not taken by the Employer at the request
of the Union, for the purpose of complying with any of the provisions of this
section. The Employer will defend, indemnify and save harmless the Union and
each of its members against any and all claims, demands, liabilities and
disputes that may arise out of or by reason of any action taken or not taken
by the Union or any of its members at the request of the Employer, for the
purpose of complying with any provision of this Contract.

5.6    The President, Business Agent or other authorized representatives of
the Union, not to exceed three (3) in number, shall have access to the
Employer's plant during the race meetings, for the purpose of adjusting
grievances, investigating working conditions and carrying into effect the
provisions of this Agreement, but such access shall be set at such times and
places and in such manner which will not interfere with the regular duties of
the Employees or other operations of Employer's business.

5.7    The Employer shall provide office space at the track for the Union for
the purpose of conducting Union business; provided, however, that such office
space so provided shall not be open, for any purpose, during the normal
working hours, unless such use is specifically approved by the Employer.

                              ARTICLE 6 - SENIORITY

6.1    The Employer believes in and will continue to practice the principles
of seniority. Except as hereinafter provided, in all cases of promotions,
filling of permanent or temporary vacancies, permanent or temporary
transfers, and increase or decrease of work force, the Employer will take
into consideration an Employee's seniority, ability and physical fitness to
perform the work. In determining an Employee's ability and physical fitness
to perform the normal requirements of

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

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the new job, consideration will be given to job experience, related job
experience, education and/or ability. However, it is recognized that in
making promotions to jobs higher up in a line of progressions requiring
supervisory qualifications, leadership must also be considered a factor of
ability. When all the factors that constitute ability and physical fitness
are relatively equal, then seniority shall prevail.
       The following job classification shall be filled in the discretion of
the Employer on the basis of seniority as primary determinative factor and
ability and physical fitness as a secondary determinative factor: extra duty
jobs, i.e., replacements for money room division heads, information windows,
dedicated or special windows, money room counters and terminal supervisors.

6.2    Subject to the provisions of this Article, seniority, as of the
effective date of this Agreement, shall be based on the length of continuing
employment at the track from the date of hire (track seniority), which
seniority shall be used in establishing seniority in each of the following
departments of the Employer:

                  (A)   Pari-Mutuel Department

                  (B)   Admissions Department

                  (C)   Jockey-Valets Department

6.3    There shall be the following two seniority lists which shall be
maintained by the Employer:

                  (A)   Full time Employees including full time extra Employees

                  (B)   Part time Employees

       Full time Employees are those Employees who hold specific job
positions and work regularly from Monday through Sunday; however, Sunday work
is optional for all Employees who worked for Shenandoah Downs or Charles Town
Races, Inc. prior to January 1, 1979 and who since said date have
continuously worked for Charles Town Races, Inc. and PNGI Charles Town Gaming
Limited Liability Company through the date of this contract, and failure of
any such Employee to work on Sunday shall not adversely affect his/her
seniority or his/her status as

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

a full time Employee. Full time extra Employees are those full time Employees
who fill in for full time Employees on any day between Monday and Thursday
and who may fill in for absent full time Employees on Fridays, Saturdays,
Sundays and holidays, if such vacancies are not filled by part time Employees
on these days. Part time Employees are those Employees who work Friday,
Saturdays, Sundays and holidays. Said lists when prepared, shall include, by
date of hire, all Employees of the track who were employed by either
Shenandoah Downs or Charles Town Races, Inc. The Employer shall maintain the
two (2) seniority lists set forth above and shall update each list at the
beginning of each racing year (season). Prior to the first race day of each
year, each Employee who is entitled to make such a selection shall designate
in writing whether such Employee will be a full time Employee, a full time
extra Employee or a part time Employee and such Employees shall continue in
such designated category and in the position held by them at the beginning of
such race year unless his/her category and position is otherwise changed as
provided in this Agreement. All selections become final after 30 days from
the date selection card was signed.

6.4(A) In order to maintain status as a full time Employee, each such
Employee must work seventy percent (70%) of the live racing programs at the
PNGI Charles Town Gaming Limited Liability Company, and may not miss or be
absent more than five (5) Saturdays or five (5) Sundays during any one
calendar year; provided, however, that any Employee who has maintained
continuous employment at the PNGI Charles Town Gaming Limited Liability
Company, or its predecessor, Charles Town Races, Inc., since January 1, 1979,
shall not be penalized hereunder if such Employee misses five (5) or more
Sundays, except for those Employees that commit to work on Sundays and so
indicate on their selection cards. If a full time Employee is designated as a
full time extra, such person must report to the track each race day at the
specified reporting time at least seventy percent (70%) of the live racing
program in order to maintain status as a full time extra Employee. Death in
the family, documented accidental injury or illness to Union employees or an
immediate family member will not count toward Saturday and Sunday absences.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

6.4(B) In order to maintain status as a part time Employee, each such
Employee must report for work each Friday, Saturday, Sunday and holiday
program, or each Saturday, Sunday and holiday program (as specified by the
Employee on their availability card) at the PNGI Charles Town Gaming Limited
Liability Company. Any part time Employee who fails to work each such
specified day and such absence is not excused by the Employer, shall not earn
or accrue seniority for the year in which such absences occur. If any
Employee, whether regular or part time, reports to work, and has not been
notified not to report for work, such Employee shall be considered, for the
purpose of seniority, to have worked that day. Full time employees and part
time Employees shall receive premium pay (time and one-half) for all hours
worked on Sundays, Memorial Day, July 4, Labor Day and Christmas Eve. To be
eligible for premium pay on Sundays, Memorial Day, July 4, Labor Day and
Christmas Eve, an employee must work his/her regular scheduled working day
before the Sunday, Memorial Day, July 4, Labor Day and Christmas Eve and
his/her regular scheduled working day after if it is the day after Sunday,
Memorial Day, July 4, Labor Day and Christmas Eve. Excused absences will
count, for purposes of this paragraph, as if that day was a work day. The
Employer shall not unreasonably refuse to grant an excused absence.

6.5    An Employee shall lose all his accrued seniority in the event such
Employee:

       (A) Voluntarily quits or is discharged for cause.

       (B) Fails, after a lay-off or the commencement of any racing meet, to
report for work for two (2) consecutive racing days after being notified to
do so, unless such Employee notifies the Employer, in advance of such
reporting date, that such Employee intends to be absent and presents an
acceptable reason for such absence.
       (C) Is absent from work for any reason whatsoever for three (3)
working days without the approval of the Employer.
       (D) An Employee shall earn no seniority in any year in which he fails
to work seventy percent (70%) of the racing programs, as provided, in
Paragraph 6.4(A) of this Article.
         This requirement is based on racing programs being conducted on
Sundays, holidays and one weekday each week during daytime hours and all
other days during night-time hours. If

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

racing programs are conducted on more than one weekday (except holidays) in
any week during daytime hours, then the 70% rule shall not apply to any such
weekday daytime programs in excess of one in any one week.

6.6    PERMANENT VACANCIES - Notwithstanding any provision contained in this
Agreement to the contrary, in the event a vacancy occurs in a regular
permanent job, the Employer in its sole discretion shall determine if such a
vacancy shall be filled. In filling such vacancy, the Employer shall comply
with the provisions of Subsection 6.1 of this Article and shall select the
eligible and qualified Employee from within the department where the new job
or permanent vacancy occurs on the basis of track seniority. If such position
or vacancy is not filled from within the department in which it occurred, it
may be filled by an eligible and qualified Employee from other departments on
the basis of track seniority. The senior eligible Employee bidding on such
job, if qualified, shall be given a trial period on such new job of one (1)
to five (5) days as management sees fit. In the event management does not
deem such Employee properly qualified to perform such job, then after a trial
period ranging in management's discretion from one (1) to five (5) days,
management shall have the sole discretion to return such Employee back to his
former job, in which event, the next senior qualified eligible Employee who
shall bid for such job shall be given a like trial. When an Employee is
transferred to another job, classification or department as a result of job
bidding, such transfer shall be permanent. The Employer shall have the right
to remove an Employee from any Department because of lack of work, but must
honor reverse seniority when doing so. Such Employees so removed may bid for
another job for which such Employee is eligible and qualified at the track on
the basis of track seniority.

6.7    TEMPORARY TRANSFERS - The filling of all temporary vacancies shall be
in accordance with the seniority provisions of this contract, if such
temporary vacancy does not continue for more than fifteen (15) working days.
If such continues for more than fifteen (15) working days, Employees shall
bid on that job on a temporary basis in the same manner set forth in the
Subsection 6.6 of this Article VI for bidding on permanent vacancies. Upon
the return of the absent Employee, the Employee who bid on that temporary
vacancy shall return to his or her

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

former position and the returning Employees shall fill his or her regular
position. An Employee who is transferred from his or her regular job to fill
a temporary vacancy not lasting more than fifteen (15) days, shall be paid
his or her regular rate, unless the job to which he or she is transferred
pays a higher rate, in which case the higher rate shall be paid. Any full
time extra Employee who fills a temporary vacancy shall be paid the rate for
such vacant position. If an Employee bids on a temporary vacancy after the
said fifteen (15) day period, such Employee shall be paid the rate for such
vacancy while he or she is temporarily filling that position. Upon that
Employee's return to his or her regular job, he or she shall be paid the
regular rate for his or her regular job.

6.8    LAY-OFF - It is agreed that while the determination whether or not
there should be lay-offs is the sole prerogative of the Employer, should a
reduction in force be necessary, lay-offs will take place in the reverse
order by track seniority applied within the department affected. In the event
that rehiring takes place, the Employees shall be recalled to work in
accordance to their track seniority within the department affected.

                          ARTICLE 7 - LEAVE OF ABSENCE

7.1    An Employee shall not be granted a leave of absence without prior
consent of the Employer, which consent shall not be arbitrarily withheld.
Such leave of absence granted the Employee shall not cause him to lose any
prior seniority rights. Leaves of absences will be approved by a Committee
consisting of the Mutuel Manager, a Management designee selected by the
Mutuel Manager, two (2) members selected by the Union and the General Manager
who will vote only in the event of ties.

7.2    The Employer shall notify the Union of all requests for leaves of
absence and shall give the Union a reasonable opportunity to make any
comments in regard to such request as it desires prior to the effective date
of such leave. However, the Employer's decision on such request shall be
final.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

7.3    Notwithstanding any provision to the contrary in this Article 7, no
leave of absence shall be granted to any Employee for the purpose of
accepting full time employment elsewhere.

7.4    An Employee's seniority status and date shall not be affected by
absence from work on account of:

       (A) Illness under approved sick leave.

       (B) Injury covered by State Workers' Compensation Law.

       (C) Time spent on approved leave of absence for service in the Armed
Forces of the United States, provided the Employee returns to Employer's
service following release from military service within two (2) months of
first becoming eligible for release from military service.

       (D) Service as a regularly impaneled member of a State or Federal Jury.

       (E) Layoff, provided he is reemployed by Employer within a period of
one month after being recalled following such layoff.

       (F) A regularly approved leave for reasons other than sickness,
occupational injury, jury duty or military service, provided such personal
leave of absence does not exceed one month in length.

       (G) A regularly approved leave for full time employment as an officer
or agent of Union, provided such leave does not exceed one month in length.

       Employees granted leave of absence for any of the foregoing reasons
will not accrue further seniority during the term of the leave of absence. In
the event of a dispute, the decision of the Leave of Absence Committee will
be final.

                              ARTICLE 8 - DISCHARGE

8.1    No employee shall be discharged or displaced except for just cause.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

8.2    Within two (2) working days or seventy-two (72) hours, whichever is
shorter of any discharge, the Employer shall notify, in writing, the Union
and the Employee affected as to the reason for such discharge. In the event
the Union disputes such discharge, the matter shall be submitted to
arbitration in accordance with Article 9 herein. The arbitrator shall have
the authority to make the final determination of such dispute and in the
event he finds such discharge to have been improper, he may order
reinstatement or such other remedies as he deems appropriate, including
awarding back pay and benefits. The Employer agrees that it will cooperate
with the Union to expedite the submission of any disputed discharges to an
arbitrator and, if the arbitrator agrees, upon the Union's request, to accept
an oral ruling from the arbitrator at the conclusion of the hearing.

8.3    It is agreed that discharge for dishonesty, pilferage, bellringing or
discharge of an Employee for leaving his or her post or work place and
engaging in physical and/or oral confrontation with any member of the public,
including friends, spouses, relatives or another Employee of the Employer
shall not be subject to the grievance procedure provided herein.
       Employees discharged or disciplined for use of alcohol or drugs or
being under the influence of alcohol or drugs while on duty or for
dishonesty, pilferage or bellringing, shall be entitled to arbitrate only the
question of their guilt or innocence. If found guilty, the arbitrator must
confirm the remedy imposed by the Employer.

8.4    It is agreed that any Employee who shall be denied bonding coverage by
the Employer's bonding company or whose bond shall be revoked for any reason,
shall be dismissed. Such discharge shall not be subject to the grievance
procedure and shall be final. If, subsequent to such refusal to bond or
revocation of bond, the bonding company shall agree to bond such Employee or
to cancel such revocation and reinstate said bond, such Employee shall be
entitled to be reemployed in accordance with his or her seniority as of his
or her termination date, but without back pay or benefits and such person
shall lose his or her seniority for such period when the bond was denied or
revoked.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

8.5    The Employer recognizes the principles of progressive discipline. The
employer agrees to delete written reprimand letters from an employee's file
one year after the date of the reprimand letter.

                         ARTICLE 9 - GRIEVANCE PROCEDURE

9.1    In the event that any dispute or controversy shall arise during the
life of this Agreement as to the interpretation or application of this
Agreement or any part thereof, it shall be handled in the following manner:

       STEP 1. The aggrieved Employee or any authorized representative of the
Union shall first discuss the grievance with the company supervisor or
representative.

       STEP 2. In the event the grievance is not resolved at that level, then
a representative of the Union shall meet with an officer or duly designated
representative of the Employer within seven (7) calendar days of such first
meeting.

       STEP 3. If no satisfactory settlement is reached within seven (7)
calendar days of the meeting in Step 2, then either party may submit the
grievance to arbitration. Any dispute arising under this Agreement may be
submitted to arbitration, provided, however, that the arbitrator shall have
no authority to alter the terms of this Agreement. In the event a grievance
is submitted to arbitration, the arbitrator will be selected from a list
supplied from the Federal Mediation and Conciliation Service and the
arbitration shall be conducted under the rules and regulations of the Federal
Mediation and Conciliation Service then in effect. The costs of any such
arbitration shall be borne equally between the Union and the Employer.

9.2    No complaint or grievance involving the suspension or discharge of any
Employee, may be made, entertained or be the subject of arbitration, unless
made within ten (10) calendar days after the date of such suspension or
discharge.

9.3    All grievances other than those relating to the suspension or
discharge of an Employee must be filed within thirty (30) calendar days
following the date of the occurrence which gave rise to the grievance,
otherwise, the right to file a grievance shall be waived.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

                          ARTICLE 10 - MILITARY SERVICE

       With respect to the reemployment of Employees who have been or shall
be inducted into the Armed Forces of the United States, the Employer shall
comply with its obligation as provided in the Selective Training and Service
Act of 1940 as amended.

                       ARTICLE 11 - SHORTAGES AND OVERAGES

11.1   Each Employee shall be financially responsible for his or her
shortages and the liability therefor shall be determined by the Employer. All
shortages shall be paid at reporting time the following day, unless otherwise
provided by the Employer. Failure to pay such shortages shall result in the
suspension of the Employee.

11.2   The Employer shall maintain an accounting of all overages and
shortages for each Employee affected and such accounting shall be made
available for inspection by each Employee affected at all reasonable times.
Employees shall be credited with the total amount of overage in their
respective accounts on the last day of each meet up to the total amount of
shortages which they may incur on that day.

11.3   If it appears to the Employer's satisfaction that a tote machine
malfunction caused an Employee shortage, the Employee shall not be
responsible for the shortage.

                             ARTICLE 12 - EXCLUSIONS

12.1   The Employer and the Union agree that Employees not covered by this
Agreement can continue to perform the normal work that they performed
heretofore, some of which may be work which is also performed by members of
this unit, provided, however, that the Employer

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

shall not use excluded Employees to do regular journeyman work so as to
replace or displace the regular Employees within the bargaining unit.

12.2   The Employer agrees that if a regular job is open and available at the
beginning of the program prior to the first race and Management wishes that
job to be performed during that program, then an additional Employee shall be
assigned. If a job should become open after the first race begins and no
Union Employee is available, or in the event of an emergency, then excluded
Employees, including supervisors, may perform that work.

                        ARTICLE 13 - NO STRIKE OR LOCKOUT

13.1   During the term of this Agreement, the Union agrees on behalf of
itself and each of its members that there shall be no authorized strike of
any kind and there shall be no boycott, picketing, work stoppage, slowdown or
any other type of organized interference, coercive or otherwise with the
Employer's business or with third parties having business with the Employer.

13.2   In the event any violation of the previous paragraph occurs which is
unauthorized by the Union, the Employer agrees that there shall be no
liability on the part of the International or Local Union or any of their
officers or agents, provided that in the event of such unauthorized action
the Union first meets the following conditions:

            (a)   The Union shall declare publicly that such action is
unauthorized by the Union, if requested to do so by the Employer.

            (b)   The Union shall promptly order its members to return to
work, notwithstanding the existence of a picket line, if requested to do so
by the Employer.

            (c)   The Union shall not question the unqualified right of the
Employer to discipline or discharge Employees engaging in, participating in,
or encouraging such action, unless the action by the Employer is unlawful or
discriminatory. It is understood that such action on the part of the Employer
shall be final and binding upon the Union and its members, and shall in no
case be construed as a violation by the Employer of any provision of this
Agreement,

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

unless the action by the Employer is discriminatory. However, an
issue of fact as to whether or not any particular Employee has engaged in,
participated in, or encouraged any such violation may be subject to
arbitration.

13.3   There shall be no lockout by the Employer.

13.4   It shall be a violation of this Agreement and grounds for discharge or
discipline, for any Employee, or for the Employees collectively, to refuse to
go through a picket line of another union established at the premises of the
Employer whose Employees are on strike.

13.5   In the event that a strike or lockout in violation of the foregoing
provisions of this section shall occur, the nonbreaching party shall have the
option of rescinding this Agreement after such breach has continued for more
than fifteen (15) days, unless the dispute is settled and the strike or
lockout ends before such option is exercised. Written notice of intent to
exercise such option shall be given at least five (5) days before it is
exercised.
         Exercise of the option to rescind this Agreement shall not affect
the right of the rescinding party to bring an action for damages for the
breach committed by the other, and shall not affect Employer's right to
discipline, as provided herein, any Employee taking part in a prohibited
strike.
         The failure of Employer or Union to exercise the privilege
hereinabove granted to rescind this Agreement in event of a breach thereof by
the other party, shall not constitute a waiver on its part of its right to
exercise such option should a subsequent strike or stoppage of production or
lockout occur.

                               ARTICLE 14 - NOTICE

         Whenever notice is required to be given hereunder, it shall be given
to the parties hereto at their respective address by registered or certified
mail, and in the event that notice is required

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

to be given to any Employee, it shall be given by registered or certified
mail, addressed to such Employee at his or her last known address appearing
on the payroll records of Employer.

                     ARTICLE 15 - MANAGEMENT'S PREROGATIVES

A.     Except to the extent abridged by a provision of this Agreement, the
Employer reserves and retains, solely and exclusively in its own uncontrolled
discretion, all of its regular and customary functions and its inherent right
to manage the business, which includes, but is not limited to, the right to
establish or continue policies, practices or procedures for the conduct of
its business and from time to time as it sees fit, to change, alter or
abolish such policies, practices or procedures; to assign Employees; to
determine and from time to time redetermine the number, location and types of
its operations and the methods, processes or materials to be employed; to
discontinue processes or operations or to discontinue performances by
Employees the Employer may deem advisable, to determine the number of hours
per day or per week, the number of days per week and the number of weeks per
year its operation shall be carried on; to select and determine the number
and type of Employees required; to assign work to such Employees in
accordance with the requirements as determined by management; to establish
and change work schedules and assignments; to transfer or promote Employees,
to demote, discipline or terminate Employees for just cause; or to lay-off or
otherwise relieve Employees from duty for lack of work or any other
legitimate reason by seniority. These rights shall not be used for the
purpose of discrimination against any member of the Union and shall not be
exercised in violation of the terms of this Agreement.
       The Employer will make every good faith effort to employ full time
rather than part time Employees where feasible and shall not hire part time
Employees for the sole purpose of not providing benefits which would be
available to full time Employees.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

B.     The Employer shall have the right, from time to time, to make such
reasonable rules and regulations for the conduct of its business not
inconsistent with the provisions hereof as it may deem to comply with such
rules and regulations to be enforced by management.

                           ARTICLE 16 - FUNERAL LEAVE

         Employees with regular assignments employed on a regular full-time
basis who have at least one (1) year regular full-time service with the
Company will be granted three (3) days off without loss of pay in the event
of a death in the family, which for the purpose of this Agreement shall mean
mother, father, sister, brother, spouse, child, significant other,
mother-in-law, father-in-law, grandparents, grandchild and step-children.
This may be taken at the most convenient time related to the death for the
employee, who shall be paid at the straight time rate of pay earned as if the
Employee would have worked these three days.

                    ARTICLE 17 - TECHNOLOGICAL DISPLACEMENTS

         Should a technological displacement occur by reason of a new machine
or mechanical improvement or process in the operation of a department, the
Company will attempt to place any displaced Employee in a classification for
which he is qualified by track seniority close to his former rate of pay. The
Company agrees that it will meet with the Union to discuss the problems which
may arise as a result of technological displacements; however, such Employee
may exercise track seniority to bid into another classification or department
for which he is qualified.

                             ARTICLE 18 - UNIFORMS

18.1   Any Employee who is required by the Employer to wear a special
uniform, shall have the same furnished and maintained by the Employer. The
Employer shall have the right to prescribe reasonable rules and regulations
of appropriate dress.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

18.2   Prior to any Employee being required to wear any uniform, the Employer
will define such uniforms and any permissible substitutions thereto.

18.3   Mutuel Clerks may be required to wear white dress shirts or white
blouses to work. In such event, the Employer agrees to pay to each affected
Employee One Hundred Dollars ($100.00) during each year of this contract for
the purpose of said Employee purchasing white dress shorts or white blouses
acceptable to management. The type and style of uniforms will be discussed by
the Employer with a Committee from the Union not to exceed five (5) members,
with the understanding that the final decision will be made by the Employer.

                            ARTICLE 19 - SEVERABILITY

         If any section or part thereof of this Agreement should be held
invalid by operation of law or by any body, commission or tribunal of
competent jurisdiction, or if compliance with or enforcement of any section
or part thereof should be restrained by such body, commission or tribunal
pending a final determination as to its validity, the remainder of this
Agreement or the application of such section or part thereof to persons or
circumstances other than those as to which it has been restrained, as set
forth above, shall not be affected thereby. In the event that any section or
part thereof of this Agreement is held invalid or unenforceable or the
compliance with which has been restrained, as above set forth, the parties
shall enter into immediate collective bargaining negotiations upon the
request of the Union for the purpose of arriving at a mutually satisfactory
replacement for such section or part thereof during the period of invalidity
or restraint. If the parties do not agree on a mutually satisfactory
replacement provision, either party may submit the question to arbitration in
accordance with Article IX and the arbitrator shall have the authority to
determine the substance of such substitute provision.

                            ARTICLE 20 - PENSION PLAN

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

       The parties and their predecessors hereto have, prior to the execution
of this Agreement, executed documents necessary to implement Charles Town
Races Future Service Retirement Plan, including the Trust Agreement
establishing the fund of said Plan. The Employer has, in turn, agreed to be
bound by said Plan and the provisions thereof. If Employer's obligation to
make contributions to the said fund shall cease or terminate, or be reduced
to a level which affects the actuarial solvency of said fund, both pursuant
to the provisions of said Trust Agreement, then, upon request therefor by the
Union, Employer shall, within thirty (30) days of said request, discuss with
the Union any proposal of the Union regarding Employer's continuing or
increasing contribution to said Fund.

                             ARTICLE 21 - VACATIONS

       Each Union Employee with five (5) or more years service, who is
classified as a regular, full-time Employee, shall receive one-half (1/2)
day's paid vacation for each forty (40) full days worked in each calendar
year based on live racing days. Each Union Employee with ten (10) or more
years service, who is classified as a regular, full-time Employee, shall
receive one (1) day's paid vacation for each forty (40) full days worked in
each calendar year based on live racing days. Each Union Employee with twenty
(20) or more years service, who is classified as a regular, full-time
Employee, shall receive one and one-quarter (1 1/4) day's paid vacation for
each forty (40) full days worked in each calendar year based on live racing
days.
       Earned vacation pay will be paid one (1) week following the last
racing date in the year.

                           ARTICLE 22 - SUNDAY RACING

       Notwithstanding anything contained hereinabove to the contrary, the
Employer agrees that Sunday racing will be limited to a five hour period
between the hours of 1:00 P.M. and 11:00 P.M., with the Employer to have the
sole discretion as to which five hours will be selected for Sunday racing.

                      ARTICLE 23 - VIDEO LOTTERY AGREEMENT

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

       The Union agrees that upon the effective date of this Agreement, it
will have its staff representative and Local President sign a written,
notarized agreement, with a term to run concurrent with this Agreement, to be
presented by the Employer to the West Virginia Lottery Commission, evidencing
the Union's agreement regarding the allocation of the proceeds from the video
lottery terminals/slot machines as required by West Virginia Code #29-22A-7,
and that agreement will remain in full force and effect and irrevocable by
the Union and the Employer during the term of this collective bargaining
agreement and any extensions or modifications thereof.

                         ARTICLE 24 - EMPLOYEE BENEFITS

       Effective January 1, 2001, (assuming ratification of this agreement by
the Union on or before that date) Employer will, for the life of the
Agreement, offer to the membership of the Union the same PNGI Benefit Plan
that is offered during the term of this Agreement to the non-represented
employees at Charles Town Races, including and limited to health, dental and
vision insurance, and the Group Life Insurance Program (GLIP). Eligibility
requirements and cost sharing will be identical to the terms offered to the
non-represented employees during the term of this Agreement.

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the day and year first above written.

                                       PNGI CHARLES TOWN GAMING
                                       LIMITED LIABILITY COMPANY

                                       By:  /s/ WILLIAM J BORK
                                           ------------------------------------

                                       Its: PRESIDENT
                                           ------------------------------------

ATTEST:   GEORGE A. CONNOLLY
       ---------------------------

                                       WEST VIRGINIA UNION OF MUTUEL
                                       CLERKS, LOCAL 533, SERVICE
                                       EMPLOYEES INTERNATIONAL
                                       UNION, AFL-CIO

                                       By:    /s/ RICHARD B. NOLAN
                                          -------------------------------------

                                       Its:   PRESIDENT
                                           ------------------------------------

                                           ------------------------------------

ATTEST:
        --------------------------

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

                                   SCHEDULE A

                            EFFECTIVE JANUARY 1, 2001

<TABLE>
<CAPTION>
                                                                                        2 YEARS OR LESS
                                                                                        ---------------
JOB
CLASSIFICATION             20 YRS             10-19 YRS        2-9 YRS            UNION             PROBATION
-------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>              <C>                <C>               <C>
Terminal Operator            [*]                 [*]             [*]               [*]                  [*]

Information Clerk            [*]                 [*]             [*]

Money Room
Division Head                [*]                 [*]

Messengers                   [*]                 [*]             [*]               [*]                  [*]

Seller, Gateman,
Usher                        [*]                 [*]             [*]               [*]                  [*]

Jockey Valet                 [*]                 [*]             [*]               [*]                  [*]
</TABLE>

<TABLE>
<CAPTION>

                            EFFECTIVE JANUARY 1, 2002

                                                                                        2 YEARS OR LESS
                                                                                        ---------------
JOB
CLASSIFICATION             20 YRS             10-19 YRS        2-9 YRS            UNION             PROBATION
-------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>              <C>                <C>               <C>
Terminal Operator            [*]                 [*]             [*]               [*]                  [*]

Information Clerk            [*]                 [*]             [*]

Money Room
Division Head                [*]                 [*]

Messengers                   [*]                 [*]             [*]               [*]                  [*]

Seller, Gateman,
Usher                        [*]                 [*]             [*]               [*]                  [*]

Jockey Valet                 [*]                 [*]             [*]               [*]                  [*]
</TABLE>

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.

<PAGE>

                            EFFECTIVE JANUARY 1, 2003

<TABLE>
<CAPTION>
                                                                                        2 YEARS OR LESS
                                                                                        ---------------
JOB
CLASSIFICATION             20 YRS             10-19 YRS        2-9 YRS            UNION             PROBATION
-------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>              <C>                <C>               <C>
Terminal Operator            [*]                 [*]             [*]               [*]                  [*]

Information Clerk            [*]                 [*]             [*]
Money Room
Division Head                [*]                 [*]

Messengers                   [*]                 [*]             [*]               [*]                  [*]

Seller, Gateman,
Usher                        [*]                 [*]             [*]               [*]                  [*]

Jockey Valet                 [*]                 [*]             [*]               [*]                  [*]
</TABLE>

                            EFFECTIVE JANUARY 1, 2004

<TABLE>
<CAPTION>
                                                                                        2 YEARS OR LESS
                                                                                        ---------------
JOB
CLASSIFICATION             20 YRS             10-19 YRS        2-9 YRS            UNION             PROBATION
-------------------------------------------------------------------------------------------------------------
<S>                        <C>                <C>              <C>                <C>               <C>
Terminal Operator            [*]                 [*]             [*]               [*]                  [*]

Information Clerk            [*]                 [*]             [*]

Money Room
Division Head                [*]                 [*]

Messengers                   [*]                 [*]             [*]               [*]                  [*]

Seller, Gateman,
Usher                        [*]                 [*]             [*]               [*]                  [*]

Jockey Valet                 [*]                 [*]             [*]               [*]                  [*]
</TABLE>

* Certain portions of this exhibit have been omitted based upon a request for
confidential treatment that has been filed with the Commission. The omitted
portions have been filed separately with the Commission.Prepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.16.1    
    

AMENDMENT NO. 1 TO

PARTICIPATION AGREEMENT  

    THIS AMENDMENT NO. 1 TO PARTICIPATION AGREEMENT ("First Amendment"), dated as of November 1, 2000, is entered into by and among TRIQUINT
SEMICONDUCTOR, INC., a Delaware corporation, as Lessee (together with its permitted successors and assigns, the "Lessee"), WOLVERINE LEASING
CORP., a Texas corporation (together with its permitted successors and assigns, "Wolverine"), MATISSE HOLDING COMPANY, a Texas corporation (together
with its permitted successors and assigns, "Matisse") and U.S. BANK NATIONAL ASSOCIATION, formerly known as UNITED STATES NATIONAL BANK OF OREGON
(together with its successors and assigns, the "Bank"). 

PRELIMINARY STATEMENTS  

    A.  Lessee,
Wolverine, Matisse and the Bank are parties to that Participation Agreement, dated as of May 17, 1996 (the "Participation Agreement"). Capitalized
terms used but not defined herein have the meanings set forth in the Participation Agreement. 

    B.  The
Lessee has requested Matisse and Bank to agree to certain changes in the terms governing the facilities provided pursuant to the Participation Agreement. The
parties are willing to enter into such changes upon the terms and subject to the conditions set forth herein. 

AGREEMENT  

    NOW, THEREFORE, in consideration of the mutual agreements contained in this First Amendment and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

SECTION 1.

DEFINITIONS; INTERPRETATION  

    1.1  The
following definitions are hereby added to the definitions in Appendix 1 of the Participation Agreement: 

    "CD Rate" means, with respect to each Interest Period or Rental Period, an annual rate equal to the interest rate (if any) which
accrues on the certificates of deposit which have been pledged to Bank for such Interest Period or Rental Period to satisfy the CD Rate Funding Condition for such Interest Period or Rental Period. 

    "CD Rate Advance" means a Loan Advance or Lease Advance which bears interest or rent, respectively, at the CD Rate. 

    "CD Rate Conversion/Continuation Request" shall have the meaning set forth in Section 3.4(f)(i) of the Participation
Agreement as such section is added in Section 2.1 of the First Amendment. 

    "CD Rate Funding Condition" shall mean, with respect to any CD Rate Advance requested in a CD Rate Conversion/Continuation Request, the
delivery to Bank of Pledged Collateral in full compliance with the Investment Collateral Security Agreement in the form of certificates of deposit issued by the Bank having an initial principal amount
(as of the commencement of the Interest Period and Rent Period to which such CD Rate Conversion/Continuation Request relates) equal to the sum of 100% of the aggregate outstanding principal balance of
the Matisse/Bank Loan and the Wolverine/Bank Loan, plus $1.00 and having a term equal to the applicable Interest 

1

 

Period and Rental Period. If required by Bank, at the time of issuance thereof, Bank may require at least seven days advance notice or any withdrawal or transfer of funds from any such certificate of
deposit or other account pledged to it, and may limit the number of withdrawals or transfers from such certificates of deposit or accounts to no more than six in any calendar month, so that such
certificates of deposit or accounts may be structured as non-personal time deposits under 12 C.F.R., Part II, Chapter 204 (commonly known as Regulation "D"). 

    "First Amendment" means this First Amendment to the Participation Agreement. 

    1.2  The
following definitions in Appendix 1 of the Participation Agreement are hereby modified as follows: 

    (a) Clause (ii)
of the definition of "Applicable Margin" is modified to read as follows: 

   "(ii)
for Loan Advances bearing interest determined with reference to the Alternate Base Rate or the CD Rate, 0.775% per annum." 

    (b) The
definition of "Basic Rent" is modified in its entirety to read as follows: 

"Basic Rent" means an amount determined as of each Payment Date equal to the aggregate amount accrued on the outstanding Lease Advances from time to
time during the period ending on such Payment Date and commencing on the next preceding Payment Date (or, if there is not preceding Payment Date, on the Closing Date) at an annual rate equal to the
applicable Eurodollar Rate, Alternate Base Rate or CD Rate as designated for the applicable Loan Advance or continuation or conversion thereof through which such Lease Advances were funded, plus the
Applicable Margin applicable to such Lease Advances." 

    (c) The
definition of "Interest Period" is modified to add, after the clause "Conversion/Continuation Request given with
respect thereto" in the fourth line thereof, and before the clause "provided that the
foregoing provisions relating to Interest Periods are subject to the following:" in the fifth line thereof, the following: 

"and
means with respect to any CD Rate Advance the period commencing on the Pricing Conversion Date for such CD Rate Advance and ending one month thereafter (or such shorter period as may commence on
the last day of the previous Interest Period or Rental Period and end on the Maturity Date), as selected by the Lessee in its CD Rate Conversion/Continuation Request". 

    (d) The
definition of the term "Pricing Conversion Date" is hereby modified in its entirety to read as follows: 

"Pricing Conversion Date" means any date on which the Lessee elects to (a) convert an Alternate Base Rate Advance to a Eurodollar Advance or CD
Rate Advance, or to convert a Eurodollar Advance to an Alternate Base Rate Advance or CD Rate Advance or to convert a CD Rate Advance to an Alternate Base Rate Advance or Eurodollar Advance or
(b) continue an existing Eurodollar Advance or CD Rate Advance for an additional Interest Period or Rental Period." 

    (e) The
definition of "Rental Period" is hereby modified to add after the term "Conversion/Continuation Request" in the
fifth line thereof and before the clause "provided that the foregoing provisions relating to Interest Periods are subject to the following:" in the
fifth line thereof, the following: 

"and
means, with respect to any Lease Advance funded, continued or converted through a CD Rate Advance the period commencing on the Pricing Conversion Date for such Lease Advance funded, continued or
converted through CD Rate Advance and ending 

2

 

one month thereafter, as selected by the Lessee in its CD Rate Conversion/Continuation Request". 

    SECTION
1.3.  Certain Defined Terms.  All references in the Operative Documents to the Participation
Agreement shall mean the Participation Agreement as amended by this First Amendment. This First Amendment is hereby included within the definition of "Operative Document." 

SECTION 2.

AVAILABILITY OF CD-RATE ADVANCES  

    SECTION
2.1.  Procedures for CD Rate Advances.  The following Section 3.4(f) is hereby added to
the Participation Agreement: 

    "(f) (i)
CD Rate Requests. In addition to the procedures set forth in the other subsections of this Section 3.4,
if Lessee has satisfied the CD Rate Funding Condition, Lessee shall have the right, in connection with the conversion or continuation of an outstanding Alternate Base Rate Advance, Eurodollar Advance
or CD Rate Advance to deliver an irrevocable written notice to the Bank in the form of a request, substantially in the form of Exhibit A attached
to the First Amendment (a "CD Rate Conversion/Continuation Request"), as follows: 

    (A) Designation of Interest Rate. Lessee shall have the right: 

    (I) to
convert, on any Business Day, any Alternate Base Rate Advance into a CD Rate Advance; or 

    (II) to
convert, on the last day of any Interest or Rental Period with respect to a Eurodollar Advance (or, on any other day of any Interest or Rental Period, upon
payment of any loss or expense incurred or sustained by the Bank with respect to the early termination of such Eurodollar Advance prior to the last day of the Interest or Rental Period as provided in  Section
 13.6), such Eurodollar Advance into a CD Rate Advance; or 

   (III) to
continue, on the last day of any Interest or Rental Period with respect to a CD Rate Advance, such CD Rate Advance for a subsequent Interest Period or Rental
Period; or 

provided
in each such case, the CD Rate Funding Condition remains satisfied at all times during such Interest Period and Rent Period. 

    (B) Timing of Notice. Each CD Rate Conversion/Continuation Request shall be submitted to and received by Bank prior to
12:00 noon (Portland, Oregon time) at least one (1) Business Day prior to the Pricing Conversion Date of any outstanding Loan Advance or Lease Advance to be converted into or continued as a CD
Rate Advance. 

    (C) Contents of Notice. The CD Rate Conversion/Continuation Request shall set forth the following information with
respect to the Loan or Lease Advance subject thereto: 

    (I) the
Pricing Conversion Date, which shall be a Business Day; 

    (II) the
amount of the Eurodollar Advance, Alternate Base Rate Advance or CD Rate Advance to be converted or continued; 

   (III) that
such Loan or Lease Advance is to be converted into/continued as a CD Rate Advance; and 

3

 

   (IV) The applicable Interest Period or Rental Period, which shall be a period equal to the lesser of (I) one month or (II) such shorter period as may
commence on the last day of the previous Interest Period or Rental Period and end on the Maturity Date. 

    (ii) Automatic Conversion—CD Rollover. If the Bank does not receive a timely CD Conversion/Continuation
Request under Section 3.4(f)(i), any outstanding CD Rate Advance shall automatically continue for a subsequent Interest Period equal to one month
(or such shorter period as may commence on the last day of the previous Interest Period or Rental Period and end on the Maturity Date), without notice to the Bank, effective on the last day of the
applicable Interest Period or Rental Period provided that the CD Rate Funding Condition remains satisfied at such time." 

    SECTION
2.2  CD Rate-based Interest Rates.  

    (a) The
following sentence is hereby added after the first sentence of Section 3.6(a) of the Participation Agreement: 

"Subject
to Section 3.6(b), each CD Rate Advance shall bear interest on the outstanding principal amount thereof from the date such CD Rate Advance is made until the date such Loan Advance
becomes due (or, if earlier, the date such Loan Advance is repaid) at a rate per annum equal to the CD Rate applicable thereto, as designated in accordance with  Section 3.4(f) hereof, plus the Applicable Margin. Any additional interest or other amounts
required to be paid under the terms of the promissory note evidencing such loan shall be payable as provided therein." 

    (b) Notwithstanding
anything to the contrary contained in the Investment Collateral Security Agreement or any other Operative Documents, any certificate of deposit
issued by Bank and pledged to Bank as required in order to satisfy the CD Rate Funding Condition with respect to any CD Rate Advance shall bear such rate of interest (if any) as may be agreed upon by
Bank and Lessee at the time such certificate of deposit is pledged. 

    SECTION
2.3.  Illegality.  The following paragraph is hereby added at the end of Section 13.9 of
the Participation Agreement: 

    If
the adoption of any applicable law, rule or regulation, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration thereof, or compliance by the Bank with any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall make it unlawful or impossible for the Bank to purchase, maintain or fund Loan or Lease Advances in any CD Rate Advance and the Bank shall so notify
the Lessee, whereupon until the circumstances giving rise to such suspension no longer exist, the obligation of the Bank to fund, convert or continue any Loan Advance or Lease Advance to such CD Rate
Advance shall be suspended. Before giving any notice pursuant to this Section, the Bank shall, if practicable, with the consent of the Lessee (which consent shall not unreasonably be withheld),
designate a different funding office (if one exists) if such designation will avoid the need for giving such notice and will not, in the judgment of the Bank, adversely affect the Bank. If such notice
is given (i) the Lessee shall be entitled upon its request to a reasonable explanation of the factors underlying such notice and (ii) each CD Rate Advance then outstanding shall begin to
bear interest or Basic Rent at the Alternate Base Rate either (a) on the last day of the then current Interest or Rental Period applicable to such Loan or Lease Advance if the Bank may lawfully
continue to maintain and fund such to such day or (b) immediately if the Bank shall determine that it may not lawfully continue to maintain and fund such Eurodollar Advance to such day. 

4

 

    SECTION
2.4.  Increased Cost and Reduced Return.  The following subsections (d), (e) and
(f) are hereby added to Section 13.10 of the Participation Agreement: 

    "(d)
In the event that any applicable law, rule or regulation, any interpretation or application thereof by any governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof or compliance by the Bank with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency
in each case whether now or hereafter in effect: 

     (i) does
or shall subject the Bank to any additional tax of any kind whatsoever with respect to any CD Rate Advance, or change the basis or the applicable rate of
taxation of payments due under the Operative Documents to the Bank or any other amount payable hereunder on account of any CD Rate Advance (except for the imposition of or change in any tax on or
measured by the overall net income of the Bank (other than any such tax imposed by means of withholding) or otherwise excluded from the tax indemnification in  Section 13.5); 

    (ii) does
or shall impose, modify or hold applicable any reserve, special deposit, insurance assessment, compulsory loan or similar requirement against assets held by,
or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of the Bank on account of any CD Rate
Advance (including, without limitation, if the Pledged Collateral which has been pledged to the Bank for the purpose of satisfying the CD Rate Funding Condition is deemed a "transaction account" under
Regulation "D" of the Board of Governors of the Federal Reserve System); or 

    (iii) does
or shall impose on the Bank any other condition with respect to any CD Rate Advances, 

and
the result of any of the foregoing is to increase the cost to the Bank of making, funding or maintaining any CD Rate Advance or to reduce any amount receivable hereunder with respect thereto, then
in any such case, the Lessee shall promptly pay the Bank, upon its demand, any additional amounts necessary to compensate the Bank for such increased cost or reduced amount receivable which the Bank
deems to be material. 

    (e) If
the Bank shall have determined that any applicable law, rule or regulation regarding capital adequacy, any interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or any request or directive regarding capital adequacy (whether or not having the
force of law) of any such authority,
central bank or comparable agency in each case whether now or hereafter in effect, has or would have the effect of reducing the rate of return on capital of the Bank (or any entity directly or
indirectly controlling the Bank) as a consequence of the Bank's obligations under the Operative Documents on account of any CD Rate Advance to a level below that which the Bank (or any entity directly
or indirectly controlling the Bank) could have achieved but for such law, rule, regulation, interpretation, administration, request or directive (taking into consideration its policies with respect to
capital adequacy) by an amount deemed by the Bank to be material, then from time to time, within fifteen (15) days after demand by the Bank, the Lessee shall pay to the Bank such additional
amount or amounts as will compensate the Bank (or its parent) for such reduction. 

    (f)  The
Bank will promptly notify the Lessee of any event of which it has knowledge which will entitle the Bank to compensation pursuant to subsection (d) and
(e) of this Section and will, if practicable, with the consent of the Lessee (which consent shall not unreasonably be withheld), designate a different funding office or take any other
reasonable action if such designation or 

5

 

action will avoid the need for, or reduce the amount of, such compensation and will not, in the judgment of the Bank, be otherwise disadvantageous to the Bank. A certificate of the Bank claiming
compensation under this Section and setting forth in reasonable detail its computation of the additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest
error. In determining such amount, the Bank may use any reasonable averaging and attribution methods. This Section shall survive the termination of this Participation Agreement and payment of the
outstanding Loan Advances." 

SECTION 3. 
CONDITIONS PRECEDENT TO AMENDMENT  

    SECTION
3.1.  Conditions Precedent.  The effectiveness of this First Amendment is subject to satisfaction
or waiver of the following conditions precedent: 

    (a) Operative Documents. Each of the Operative Documents shall be in full force and effect. No Loan Default, Loan Event
of Default, Lease Default or Lease Event of Default shall exist thereunder (both before and after giving effect to the transactions contemplated by this First Amendment). 

    (b) Requirements of Law. In the reasonable opinion of the Bank, or its counsel, the transactions contemplated by this
First Amendment do not and will not violate any Requirements of Law. 

    (c) The Lessee's Resolutions and Incumbency Certificate, etc. The Bank shall have received, in form and substance
satisfactory to Bank, (i) a certificate of the Secretary or an Assistant Secretary of the Lessee attaching and certifying as to (A) the resolutions of the Board of Directors duly
authorizing this First Amendment and (B) the incumbency and signature of persons authorized to execute and deliver this First Amendment on its behalf. 

    (d) Wolverine's Resolutions and Incumbency Certificate, etc. The Bank shall have received, in form and substance
satisfactory to Bank, (i) a certificate of the Secretary or an Assistant Secretary of Wolverine attaching and certifying as to (A) the resolutions of the Board of Directors duly
authorizing the execution, delivery and performance by Wolverine of this First Amendment, and (B) the incumbency and signature of persons authorized to execute and deliver this First Amendment
on its behalf. 

    (e) Matisse's Resolutions and Incumbency Certificate, etc. The Bank shall have received, in form and substance
satisfactory to Bank, a certificate of the Secretary or an Assistant Secretary of Matisse attaching and certifying as to (A) the resolutions of the Board of Directors duly authorizing the
execution, delivery and performance by Matisse of this First Amendment and (B) the incumbency and signature of persons authorized to execute and deliver on its behalf the Operative Documents to
which it is a party. 

    (f)  Representations and Warranties. On the date on which this First Amendment is to become effective, the
representations and warranties of the Lessee, Wolverine and Matisse contained in the Operative Documents shall be true and correct in all material respects as though made on and as of such date,
except to the extent such representations or warranties relate solely to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on
and as of such earlier date. For the foregoing purposes, any representation reflecting the absence of Lessor Liens shall not be violated as a result of any easement granted by Wolverine or Matisse at
the request of the Lessee in connection with the construction or operation of the Improvements described in the Participation Agreement or granted according to a supplemental declaration of delegation
dated June 30, 1997 and recorded December 11, 1997, or as a result of unpaid real estate taxes for the current year not yet due and payable. 

6

 

    (g) Title. Title to the Property shall conform to the representations and warranties set forth in  Section 8.4(c) of the
Participation Agreement. For the foregoing purposes, any representation requiring
the absence of Lessor Liens shall not be violated as a result of any easement granted by Wolverine or Matisse at the request of the Lessee in connection with the construction or operation of the
Improvements described in the Participation Agreement or granted according to a supplemental declaration of delegation dated June 30, 1997 and recorded December 11, 1997, or as a result
of unpaid real estate taxes for the current year not yet due and payable. 

SECTION 4.

REPRESENTATIONS  

    SECTION
4.1.  Representations of Wolverine.  Wolverine represents and warrants to the Bank and the Lessee
that all of its representations and warranties in the Operative Documents are true and correct in all material respects as though made on and as of the date hereof, except to the extent such
representations or warranties relate solely to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier
date. For the foregoing purposes, any representation concerning Lessor Liens shall not be violated as a result of any easement granted by Wolverine at the request of the Lessee in connection with the
construction or operation of the Improvements described in the Participation Agreement or granted according to a supplemental declaration of delegation dated June 30, 1997 and recorded
December 11, 1997, or as a result of unpaid real estate taxes for the current year not yet due and payable. Wolverine has no offset or defense to the payment and performance in full of its
obligations under the Operative Documents. 

    SECTION
4.2.  Representations of Matisse.  Matisse represents and warrants to the Bank and to the Lessee
that all of its representations in the Operative Documents are true and correct in all material respects as though made on and as of the date hereof, except to the extent such representations or
warranties relate solely to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date. For the
foregoing purposes, any representation concerning Lessor Liens shall not be violated as a result of any easement granted by Matisse at the request of the Lessee in connection with the construction or
operation of the Improvements described in the Participation Agreement or granted according to a supplemental declaration of delegation dated June 30, 1997 and recorded December 11,
1997, or as a result of unpaid real estate taxes for the current year not yet due and payable. Matisse has no offset or defense to the payment and performance in full of its obligations under the
Operative Documents. 

    SECTION
4.3.  Representations of the Lessee.  The Lessee represents and warrants to the Bank, Wolverine,
and Matisse that all of its representations in the Operative Documents are true and correct in all material respects as though made on and as of the date hereof, except to the extent such
representations or warranties relate solely to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects on and as of such earlier date. Lessee has no offset or defense to the payment and performance in full of its obligations under the
Operative Documents. 

SECTION 5

MISCELLANEOUS  

    SECTION
5.1.  Counterparts.  This First Amendment may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

7

 

    SECTION 5.2.  Effective Date.  The effective date of the amendments provided for herein shall occur on
the date on which all the conditions precedent thereto set forth in Section 3.1 hereof shall have been satisfied or waived by the applicable
parties as set forth therein. 

    SECTION
5.3.  No Other Amendment.  Each and every and all and singular of the terms, conditions and
covenants contained in the Operative Documents shall remain in full force and effect except as specifically amended herein, and no present or future rights, remedies, benefits or powers belonging or
accruing to Bank, arising out of the Operative Documents shall be affected, prejudiced, limited or restricted hereby. The parties thereto hereby jointly affirm and agree that the Wolverine/Matisse
Deed of Trust, Investment Collateral Security Agreement, Lease and all other Operative Documents providing for the grant of a lien or security interest in any property secure the full performance of
each and every obligation stated therein to be secured thereby, as the same may be modified by this First Amendment, and continue to be effective as, and to constitute, a first and prior lien and
charge on the property encumbered thereby to the full extent of all obligations secured thereby, as the same may be modified by this First Amendment. 

    SECTION
5.4.  Notice Address.  Schedule 2 to the Participation Agreement is hereby amended to
delete the previous notice addresses of Wolverine and Matisse and to substitute such addresses as follows: 

	Wolverine:	 	Wolverine Leasing Corp.
	 	 	15601 Dallas Parkway, Suite 400

Addison, TX 75001

Attention: Kristin S. Markham

Phone: 972-361-5000

Fax: 972-361-5906
	

Matisse:	
 	

Matisse Holding Company
	 	 	15601 Dallas Parkway, Suite 400

Addison, TX 75001

Attention: Kristin S. Markham

Phone: 972-361-5000

Fax: 972-361-5906

8

 

    IN
WITNESS WHEREOF, the undersigned have executed this First Amendment as of the day and year first hereinabove written. 

	MATISSE	 	MATISSE HOLDING COMPANY, a Texas corporation
	

 	
 	

By:	
 	

/s/ Kristin Markham

	 	 	Name:	 	Kristin Markham

	 	 	Its:	 	Vice President

	
LESSEE	
 	

TRIQUINT SEMICONDUCTOR, INC., a Delaware corporation
	

 	
 	

By:	
 	

/s/ Steven J. Sharp

	 	 	Name:	 	Steven J. Sharp

	 	 	Its:	 	President and CEO

	
WOLVERINE	
 	

WOLVERINE LEASING CORP., a Texas corporation
	

 	
 	

By:	
 	

/s/ Kristin Markham

	 	 	Name:	 	Kristin Markham

	 	 	Its:	 	Vice President

	
BANK	
 	

U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

/s/ Ross Beaton

	 	 	Name:	 	Ross Beaton

	 	 	Its:	 	Vice President

9

Exhibit A

CD RATE CONVERSION/CONTINUATION REQUEST

      , 2000  

United States National Bank of Oregon

111 S.W. Fifth Avenue, Suite 400

Portland, Oregon 97204 

Matisse
Holding Company

15601 Dallas Parkway

Suite 400

Addison, Texas 75001 

Wolverine
Leasing Corp.

15601 Dallas Parkway

Suite 400

Addison, Texas 75001 

Re:
Participation Agreement, dated as of May 17, 1996 (as amended by the First Amendment thereto, dated as of November 1, 2000, and as further amended, modified, supplemented, restated
or renewed from time to time, the "Participation Agreement"), among UNITED STATES NATIONAL BANK OF OREGON, a national banking association ("Bank"), TRIQUINT SEMICONDUCTOR, INC., a Delaware
corporation ("TriQuint"), WOLVERINE LEASING CORP., a Texas corporation ("Wolverine"), and MATISSE HOLDING COMPANY, a Texas corporation ("Matisse"). 

Ladies
and Gentlemen: 

    Any
capitalized term used in this CD Rate Conversion/Continuation Request without definition has the meanings specified in the above referenced Participation Agreement. 

    Pursuant
to Section 3.4(f) of the Participation Agreement, TriQuint hereby elects to convert or continue the Lease Advance
described in the attached Schedule 1 (the "Requested Lease Advance"). In connection therewith, TriQuint and the undersigned Responsible Officer
of TriQuint hereby certify to the Bank and Wolverine that: 

    (1)  Maximum Lease Advances.  The sum of all Lease Advances shall not, after giving effect to the
conversion/continuation of the Requested Lease Advance, exceed Forty-Five Million and No/100 Dollars ($45,000,000.00), as more fully described on  Schedule 1; 

    (2)  Representations and Warranties.  All representations and warranties of TriQuint contained in or made
pursuant to the Operative Documents, including those contained in Section 8 of the Participation Agreement, are true and correct as of the date
hereof and shall be true and correct on the Pricing Conversion Date, both before and after giving effect to the conversion/continuation of the Requested Lease Advance and as if made on such dates;
provided, that, for the foregoing purposes, any representation requiring the absence of Lessor Liens shall not be violated as a result of any easement granted by Wolverine or Matisse at the request of
the Lessee in connection with the construction or operation of the Improvements described in the Participation Agreement or granted according to a supplemental declaration of delegation dated
June 30, 1997 and recorded December 11, 1997, or as a result of unpaid real estate taxes for the current year not yet due and payable. 

    (3)  No Default/Event of Default.  No Lease Default or Lease Event of Default exists as of the date
hereof or will result from the conversion/continuation of the Requested Lease Advance; 

    (4)  CD Rate Funding Condition.  The CD Rate Funding Condition as defined in the Participation Agreement
is satisfied with respect to the Lease Advance to be continued or converted pursuant hereto; and 

    (5)  No Material Adverse Effect.  As of the date hereof, no material adverse change in TriQuint's capital
structure, ownership or consolidated assets, liabilities, results of operations, or financial condition from that set forth or contemplated in the financial statements of TriQuint dated
[December 31,  ], has occurred, nor has there been since such date any change in the senior management of TriQuint. 

	 	 	TRIQUINT

TRIQUINT SEMICONDUCTOR, INC., a

Delaware corporation
	

 	
 	

By:	
 	

    

	 	 	Name:	 	    

	 	 	Its:	 	    

Schedule 1
  to CD Rate Conversion/Continuation Request 

LEASE ADVANCE TO BE CONVERTED OR CONTINUED

    A.  All
conversions and continuations must be of a Lease Advance, or portion thereof, in a principal amount of $500,000 or in excess thereof. 

    B.  Conversions/continuations
to a CD Rate Advance are not permitted if the designated Interest Period terminates after the Maturity Date. 

	(1)
	Conversion of the following Eurodollar Advance or Alternate Base Rate Advance into a CD Rate Advance:

	Amount:	 	$                   
	Requested Pricing Conversion Date (which must be a Business Day at least one (1) Business Day after date of notice):	 	                   
	Last day of current Interest Period:	 	                   

	(2)
	Continuation of the following CD Rate Advance for a subsequent Interest Period:

	Amount:	 	$                   
	Requested Pricing Conversion Date (which must be the last date of the current Interest Period and which must be a Business Day at least one (1) Business Day after date of notice):	 	                   
	Requested Interest Period (not more than one month—See Section 3.4(f)(i)(C)(IV) of the Participation Agreement):	 	                   

QuickLinks

Exhibit 10.16.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]