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  Exhibit 10.14    
    

Stock Option No.             

  
 

  BRIDGEPOINT EDUCATION, INC.,
  2005 AMENDED AND RESTATED STOCK INCENTIVE PLAN
  NOTICE OF STOCK OPTION GRANT    
    

        You have been granted the following options to purchase common stock of Bridgepoint Education, Inc. (the "Company"): 

 

 

					
	Name of Optionee:	 	  

 
	
Number of Shares Granted:	
 	
 

  Under Time Vested Options
	

 	
 	
  

  Under Performance Vested Options
	

 	
 	
  

  Under Exit Options
	
Type of Option:	
 	
o    Incentive Stock Options
	

 	
 	
o    Non-Statutory Stock Options
	
Exercise Price Per Share:	
 	
$	
 	
 

 
	
Date of Grant:	
 	
  

 
	
Vesting Commencement Date:	
 	
 

 
	
Expiration Date:	
 	
  

 

 

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  Vesting Schedule:  

 

 

			
	

 Time Vested Options	 	Subject to Optionee's continued Service, as defined in Section 5 herein, Optionee's Time Vested Options shall vest as to (i) 25% of the Shares underlying such Time Vested Options on the one-year
anniversary of the vesting commencement date, (ii) as to an additional 2% of the Shares underlying such Time Vested Options on each monthly anniversary of the vesting commencement date over the subsequent 33-month period following such one-year
anniversary of the vesting commencement date, and (iii) an additional 3% of the Shares underlying such Time Vested Options on each of the 46th, 47th and 48th monthly anniversary of the vesting
commencement date; provided, however, in the event that Optionee's Service is terminated by the Company without Cause or as a result of his or her death or Disability, on the date of such termination, an additional number of Time Vested Options shall
vest equal to the number of Time Vested Options that would otherwise have vested (solely as a result of the passage of time) within the 12-month period immediately following the date of such termination.
	
Performance Vested Options	
 	
Except as provided in Section 21 herein, for each fiscal year of the Company beginning with fiscal year 2008 and ending with fiscal year 2011, 25% of the Shares underlying the Performance Vested
Options granted to Optionee shall be eligible to become vested and exercisable, to the extent that the Company's actual performance for any fiscal year results in achievement of the Annual Performance Targets for such fiscal year. If in any fiscal
year that either the Annual EBITDA Target or the Annual Revenue Target is not achieved (a "Missed Fiscal Year"), but in any subsequent fiscal year the Company's cumulative EBITDA and revenue performance from and including fiscal year 2008 results in
achievement of the Cumulative Performance Targets, Performance Vested Options otherwise eligible to vest during the Missed Fiscal Year(s) shall vest. All Performance Vested Options which have not vested in accordance with this paragraph shall expire
as of Optionee's termination of Service, as defined in Section 5 herein; provided, however, if Optionee's termination of Service is as a result of his or her death or Disability, notwithstanding Section 5 herein, the Performance Vested
Options eligible to vest in the fiscal year in which such termination occurs shall remain outstanding until such time that achievement of the Annual Performance Targets is determined, and to the extent achieved, such Performance Vested Options shall
vest as if Optionee had remained in Service through the date of such determination, and for purposes of Section 5 herein, with respect to such Performance Vested Options only, the date of termination of Service shall be deemed to be the
applicable vesting date.

 

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 Definitions for Performance Vested Options	 	"Annual EBITDA Target" means:

    (a) for fiscal year 2008, $5,880,000 or greater;

    (b) for fiscal year 2009, $19,921,000 or greater;

    (c) for fiscal year 2010, [***]; and

    (d) for fiscal year 2011, [***]
	

 	
 	
"Annual Performance Targets" means, collectively, the Annual EBITDA Target and the Annual Revenue Target.
	

 	
 	
"Annual Revenue Target" means:

    (a) for fiscal year 2008, $49,000,000;

    (b) for fiscal year 2009, $201,942,000;

    (c) for fiscal year 2010, [***]; and

    (d) for fiscal year 2011, [***]
	

 	
 	
"Cumulative EBITDA Target" means:

    (a) for fiscal year 2008, $5,880,000 or greater;

    (b) for fiscal year 2009, $25,801,000 or greater;

    (c) for fiscal year 2010, [***]; and

    (d) for fiscal year 2011, [***]
	

 	
 	
"Cumulative Performance Targets" means, collectively, the Cumulative EBITDA Target and the Cumulative Revenue Target.
	

 	
 	
"Cumulative Revenue Target" means:

    (a) for fiscal year 2008, $49,000,000;

    (b) for fiscal year 2009, $250,942,000;

    (c) for fiscal year 2010, [***]; and

    (d) for fiscal year 2011, [***]
	

 	
 	
"EBITDA" means, net income plus, without duplication and to the extent deducted in determining such consolidated net income, the sum of (i) consolidated interest expense (net of any
interest income), (ii) consolidated provisions for taxes based on income, profits or capital and commercial activity (or similar taxes) for such period, (iii) all amounts attributable to depreciation and amortization for such period, in
each case, determined in accordance with Generally Accepted Accounting Principles.
	

 	
 	
"Revenue" means, the sum of all net student tuition (excluding non-cash scholarships awards), matriculation fees, room and board and other charges recognized in accordance with Generally
Accepted Accounting Principles.
	

[***] Confidential portions of this document have been redacted and filed separately with the Commission.

 

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	Exit Options	 	Subject to Optionee's continued Service, as defined in Section 5 herein, through the date of an Exit Event, and provided that the Exit Factor is equal to or in excess of four, a number of Optionee's
Exit Options shall vest on such Exit Event equal to the aggregate number of Shares underlying such Exit Options multiplied by the Warburg Exit Percentage. All Exit Options which have not otherwise vested in connection with a Change of Control due to
the fact that the Exit Factor is not equal to or in excess of four (or have previously vested upon a prior Exit Event) shall expire as of the date of such Change in Control. All Exit Options which have not vested in accordance with this paragraph
shall expire as of the date of Optionee's termination of Service.
	

 Definitions for Exit Options	
 	
"Change in Control" means: (i) a change in ownership or control of the Company effected through a transaction or series of related transactions (other than an offering of Company's securities to
the general public through a registration statement filed with the Securities and Exchange Commission) whereby any "person" or related "group" of "persons" (as such terms are used in Sections 13(d) and 14(d)(2) of the Exchange Act), other than
an Affiliate of the Company or the Warburg Investors, directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of securities of the Company possessing more than fifty percent (50%) of the
total combined voting power of the Company's securities outstanding immediately after such acquisition; or (ii) the sale or conveyance of all or substantially all of the assets of the Company to a person who is not an Affiliate of the Company or
the Warburg Investors.
	

 	
 	
"Exit Event" means a Change in Control or a Liquidity Event, as applicable.
	

 	
 	
"Exit Factor" means, with respect to any Exit Event, a fraction, the numerator of which is equal to the aggregate proceeds received by the Warburg Investors in connection with such Exit Event,
excluding any amounts received as a result of the liquidation preference associated with such equity securities, if any, and the denominator of which is equal to the Warburg Exit Percentage multiplied by the aggregate purchase price paid by the
Warburg Investors in connection with their purchase of equity in the Company.
	

 	
 	
"Liquidity Event" means the sale by the Warburg Investors of any portion of their equity securities of the Company to another person or group (other than any Warburg Investor or any Affiliate
thereof) in which the Warburg Investors receive cash or marketable securities, and which does not otherwise constitute a Change in Control.

 

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 	 	"Warburg Exit Percentage" means:
	

 	 	 (a) in the case of a Liquidity Event, a percentage equal to 100 multiplied by the quotient of

	

 	 	 (i) the aggregate amount of equity securities of the Company that the Warburg Investors sell in connection with such Liquidity
Event (determined on a fully diluted basis),

	

 	 	 divided by

	

 	 	 (ii) the aggregate amount of equity securities of the Company acquired by the Warburg Investors in connection with their
purchase of equity in the Company, in each case, as adjusted for changes in capitalization; and

	

 	 	 (b) in the case of a Change in Control, 100% less the sum of each Warburg Exit Percentage applicable to any Liquidity
Event occurring prior to such Change in Control.

 

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        By
your signature and the signature of the Company's representative below, you and the Company agree that these options are granted under and governed by the terms and conditions of this
Notice of Stock Option Grant, the Stock Option Agreement, and the Bridgepoint Education, Inc. 2005 Stock Incentive Plan, both of which are attached to and made a part of this document. 

 

 

					
	OPTIONEE	 	BRIDGEPOINT EDUCATION, INC.
	
  

 	
 	
By:	
 	
    

 
	
  

  Print Name	
 	
Title:	
 	
 

 
	
 

  Social Security Number

	
 	

 	
 	

 

 

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  BRIDGEPOINT EDUCATION, INC.

AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT  

        1.    Definitions.    Unless otherwise defined herein, the terms defined in the Bridgepoint Education, Inc.
Amended and Restated 2005 Stock Incentive Plan (the "Plan") shall have the same defined meanings in this Stock Option Agreement. 

        2.    Grant of Options.    Pursuant to the terms and conditions set forth in the Notice of Stock Option Grant attached
hereto, this Agreement, and the Plan, Bridgepoint Education, Inc. (the "Company") grants to the optionee named in the Notice of Stock Option Grant ("Optionee") on the date of grant set forth in
the Notice of Stock Option Grant ("Date of Grant") the options to purchase, at the exercise price set forth in the Notice of Stock Option Grant ("Exercise Price"), the number of Shares set forth in
the Notice of Stock Option Grant. These options are intended to be Incentive Stock Options or Non-Statutory Stock Options, as provided in the Notice of Stock Option Grant. 

        3.    Exercise of Options.    Subject to the other conditions set forth in this Agreement, all or part of these
options may be exercised prior to their expiration at the time or times set forth in the Notice of Stock Option Grant; provided, however, that subject to the following sentence, the Optionee shall
cease vesting in these options on the Optionee's Termination Date. In the event that the Optionee is subject to an Involuntary Termination (defined below) within the 12 month period immediately
following a Change in Control, all Time Vested Options that have not previously become vested or exercisable shall vest and become exercisable as of the date of such Involuntary Termination. These
options may also become exercisable in accordance with Section 21 below. 

        The
term "Involuntary Termination" shall mean the Optionee's termination of Service by reason of: (i) the involuntary discharge of the Optionee by the Company (or the Related
Corporation employing him or her) for reasons other than Cause (excluding any termination as a result of the Optionee's death or Disability); or (ii) the voluntary resignation of the Optionee
following (A) a material adverse change in his or her title, stature, authority or responsibilities with the Company (or the Related Corporation employing him or her), (B) a material
reduction in his or her base salary or annual bonus opportunity, or (C) receipt of notice that his or her principal workplace will be relocated by more than 50 miles. 

        4.    Expiration of Options.    Subject to the provisions of Section 5 hereof, these option shall expire and
all rights to purchase Shares hereunder shall cease on the date set forth in the Notice of Stock Option Grant ("Expiration Date"). 

        5.    Termination of Options.    In the event that the Optionee's Service terminates for any reason other than due to
a Disability, death, or Cause, these options shall expire on the date that is three months following the Optionee's Termination Date, unless these options would expire pursuant to Section 4 at
an earlier date in which case these options will expire on the earlier Expiration Date. In the event that the Optionee's Service terminates due to a Disability, these options shall expire on the date
that is 12 months following the Optionee's Termination Date, unless these options would expire pursuant to Section 4 at an earlier date in which case these options will expire on the
earlier Expiration Date. In the event that the Optionee should die while in Service, these options shall expire on the date that is 12 months after the Optionee's death, unless these options
would expire pursuant to Section 4 at an earlier date in which case these options will expire on the earlier Expiration Date. In the event that the Optionee's Service terminates for Cause,
these options shall terminate on the Termination Date. 

        6.    Non-transferability of Options.    These options shall be non-transferable by the
Optionee other than by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of the Optionee only by the Optionee, or as to Non-Statutory Stock
Options also, by the Optionee's guardian or legal representative. After the death of the Optionee, these options may be exercised prior 

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to
their termination by the Optionee's legal representative, heir or legatee, to the extent permitted in the Plan. Upon any attempt to sell, transfer, assign, pledge, hypothecate or otherwise dispose
of this option (a "Transfer"), or of any right or privilege conferred hereby, contrary to the provisions hereof, or upon any attempted sale under any execution, attachment or similar process upon the
rights and privileges conferred hereby, these options and the rights and privileges conferred hereby shall immediately become null and void. Until written notice of any permitted passage of rights
under these options shall have been given to and received by the Secretary of the Company, the Company may, for all purposes, regard the Optionee as the holder of these options. 

        7.    Method of Exercise.    The rights granted under this Agreement may be exercised by the Optionee, or by the
person or persons to whom the Optionee's rights under this Agreement shall have passed under the provisions of Section 6 hereof, by delivering to the Company in care of its Secretary at the
Company's principal office, written notice of the number of Shares with respect to which the rights are being exercised, accompanied by this Agreement for appropriate endorsement by the Company, such
investment letter as may be required by Section 14 hereof, executed Stockholders Agreement described in Section 8 below, payment of the exercise price, and such other representations and
agreements as may be required by the Administrator. The exercise price may be paid in cash, check, or consideration received by the Company under a broker assisted sale and remittance program
acceptable to the Administrator. 

        8.    Stockholders Agreement.    Notwithstanding any other provision of this Agreement to the contrary, the initial
exercise of these options shall be further conditioned upon the execution and delivery by the Optionee and, if applicable, his/her spouse, of the Stockholders Agreement (in the form attached hereto as
Exhibit A), to the extent not already a party thereto. This provision shall terminate in the event of a Qualified Public Offering. 

        9.    Regulatory Compliance.    The issue and sale of Common Stock pursuant to this Agreement shall be subject to full
compliance with all then applicable requirements of law and the requirements of any stock exchange or interdealer quotation system upon which the Common Stock may be listed or traded. 

        10.    Legends.    The certificates evidencing the Common Stock issued upon exercise of these options, if any, shall
bear the following legend, if applicable, at the time of exercise: 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE AND MAY BE OFFERED AND
SOLD ONLY IF REGISTERED PURSUANT TO THE PROVISIONS OF SUCH ACT OR SUCH LAWS OR IF AN EXEMPTION FROM REGISTRATION IS AVAILABLE. 

In
addition, each certificate evidencing the Common Stock issued upon exercise of these options, if any, shall be endorsed with the following legend: 

THE
SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS AGREEMENT BETWEEN BRIDGEPOINT EDUCATION, INC., A DELAWARE CORPORATION (THE "COMPANY"), THE HOLDER OF THE SHARES
REPRESENTED BY THIS CERTIFICATE, AND CERTAIN OTHER INVESTORS. A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL BUSINESS OFFICE OF THE COMPANY. 

        11.    Modification and Termination.    The rights of the Optionee are subject to modification and termination in
certain events, as provided in the Plan. 

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        12.    Withholding Tax.    As a condition to the exercise of these options, the Optionee shall make such arrangements
as the Administrator may require for the satisfaction of any federal, state and local income, and employment tax withholding requirements that may arise in connection with such exercise. The Optionee
shall also make such arrangements as the Administrator may require for the satisfaction of any federal, state and local income, and employment tax withholding requirements that may arise in connection
with the disposition of Shares purchased by exercising these options. The Optionee shall pay to the Company an amount equal to the withholding amount (or the Company may withhold such amount from the
Optionee's salary) in cash or check. At the Administrator's election, the Optionee may pay the withholding amount with Shares (including previously vested Optioned Stock); provided, however, that
payment in Stock shall be limited to the withholding amount calculated using the minimum statutory withholding rates interpreted in accordance with applicable accounting requirements, or consideration
received by the Company under a broker assisted sale and remittance program acceptable to the Administrator. 

        13.    Holder of Shares.    Neither the Optionee nor the Optionee's legal representative, legatee or distributee shall
be, or be deemed to be, a holder of any Shares subject to these options unless and until such person has been issued a certificate or certificates therefor. No adjustment will be made for dividends or
other rights for which the record date is prior to the date such stock certificate or certificates are so issued. 

        14.    Investment Covenant.    The Optionee represents and agrees that if the Optionee exercises these options in
whole or in part at a time when there is not in effect under the Act, a registration statement relating to the Shares issuable upon exercise hereof and there is not available for delivery a prospectus
meeting the requirements of Section 10(a)(3) of such Act, (i) the Optionee will acquire the Shares upon such exercise for the purpose of investment and not with a view to the
distribution thereof, (ii) if requested by the Company, upon such exercise of these options, the Optionee will furnish to the Company an investment letter in form acceptable to it,
(iii) if requested by the Company, prior to selling or offering for sale any such Shares, the Optionee will furnish the Company with an opinion of counsel satisfactory to it to the effect that
such sale may lawfully be made and will furnish it with such certificates as to factual matters as it may reasonably request, and (iv) certificates representing such shares may be marked with
an appropriate legend describing such conditions precedent to sale or transfer. Any person or persons entitled to exercise these options under the provision of Section 6 hereof shall furnish to
the Company letters, opinions, and certificates to the same effect as would otherwise be required of the Optionee. 

        15.    Nondisclosure.    Optionee acknowledges that the grant and terms of these options are confidential and may not
be disclosed by Optionee to any other person, including other employees of the Company and other participants in the Plan, without the express written consent of the Company's President.
Notwithstanding the foregoing, the Optionee may disclose the grant and terms of these options to the Optionee's family member, financial advisor, and attorney. Any breach of this provision will be
deemed to be a material breach of this Agreement. 

        16.    Governing Law.    This Agreement shall be governed by and interpreted in accordance with the internal laws of
the State of Delaware. 

        17.    Successors.    This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
legal representatives, heirs, and permitted successors and assigns. 

        18.    Plan.    This Agreement is subject to all of the terms and provisions of the Plan, receipt of a copy of which
is hereby acknowledged by the Optionee. The Optionee further acknowledges receipt of a copy of the Stockholders Agreement. The Optionee hereby agrees to accept as binding, conclusive, and final all
decisions and interpretations of the Administrator upon any questions arising under the Plan, this Agreement, and Notice of Stock Option Grant. 

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        19.    Rights to Future Employment.    These options do not confer upon the Optionee any right to continue in the
Service of the Company or any Affiliate, nor does it limit the right of the Company to terminate the Service of the Optionee at any time. 

        20.    Market Stand-Off.    In connection with any underwritten public offering by the Company of its
equity securities pursuant to an effective registration statement filed under the Act, including the Company's initial public offering, the Optionee shall not directly or indirectly sell, make any
short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or
transfer, or agree to engage in any of the foregoing transactions with respect to, any Shares acquired under this Agreement without the prior written consent of the Company or its underwriters. Such
restriction (the "Market Stand-Off") shall be in effect for such period of time following the date of the final prospectus for the offering as may be requested by the Company or such
underwriters. In no event, however, shall such period exceed 180 days. In the event of the declaration of a stock dividend, a spin-off, a stock split, an adjustment in conversion
ratio, a recapitalization or a similar transaction affecting the Company's outstanding securities without receipt of consideration, any new, substituted or additional securities which are by reason of
such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become
convertible, shall immediately be subject to the Market Stand-Off. In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with
respect to the Shares acquired under this Agreement until the end of the applicable stand-off period. The Company's underwriters shall be beneficiaries of the agreement set forth in this
Section. This Section shall not apply to Shares registered in the public offering under the Act, and the Optionee shall be subject to this Section only if the directors and officers of the Company are
subject to similar arrangements. 

        21.    Merger, Consolidation, Reorganization, Liquidation, Etc.    If the Company shall become a party to any
corporate reorganization, merger, liquidation, spinoff, or agreement for the sale of substantially all of its assets and property, the Board shall attempt to make appropriate arrangements, which shall
be binding upon the Optionee, for the substitution of new options for any unexpired options then outstanding under this Agreement, or for the assumption of any such unexpired options, to the end that
the Optionee's proportionate interest shall be maintained as before the occurrence of such event. If the options granted hereunder are not substituted or assumed, then (i) the Time Vested
Options shall fully vest and become exercisable on the date that immediately proceeds the effective date of such event, and the Administrator shall notify the Optionee of their Options' exercisability
at least 21 days prior to the effective date of such event so that the Optionee can decide whether to exercise the Time Vested Options on the date that immediately precedes the effective date
of the event. Effective on the effective date of such event all unexercised Time Vested Options shall terminate; (ii) the Exit Options shall vest to the extent provided for under the Vesting
Schedule under Section 2 herein, and all Exit Options that have not otherwise vested shall expire in accordance with the Vesting Schedule; and (iii) the Performance Vested Options shall
vest to the extent the applicable transaction is an Exit Event and the Exit Factor is equal to or greater than four, but otherwise shall only vest to the extent that applicable performance targets, as
described in the Vesting Schedule under Section 2 herein, have been achieved, and all Performance Vested Options that have not otherwise vested shall expire on the effective date of the
applicable transaction. Notwithstanding the foregoing, the Company may cancel all outstanding options effective as of the date of the applicable transaction and deliver to Optionee in lieu thereof the
difference between the Fair Market Value of a Share on the date of the applicable transaction and the Exercise Price, multiplied by the number of vested Shares that Optionee would have received had
Optionee exercised the Option. For purposes of the preceding sentence, Optionee shall be deemed to be vested in a Share if such Share is not subject to the Company's right to repurchase at its
Exercise Price. Notwithstanding anything in this Agreement to the contrary, unless Section 280G Approval, as defined in the Plan, has been obtained, no acceleration of vesting or payment shall
occur under this Agreement to the extent that such acceleration or payment would, after 

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taking
into account any other payments in the nature of compensation to which the Optionee would have a right to receive from the Company and any other Person contingent upon the occurrence of such
Change in Control, result in a "parachute payment" as defined in Section 280G(b)(2) of the Code. 

        22.    Entire Agreement.    The Notice of Stock Option Grant, this Agreement, and the Plan constitute the entire
contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or
implied) which relate to the subject matter hereof. 

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QuickLinks

Exhibit 10.14

BRIDGEPOINT EDUCATION, INC., 2005 AMENDED AND RESTATED STOCK INCENTIVE PLAN NOTICE OF STOCK OPTION GRANTEXHIBIT
10.1

 

MTR Gaming Group, Inc.

 

12.625% Senior Secured Notes due
2014

 

fully and unconditionally
guaranteed as to the payment of principal, premium, if any, and interest by the

Guarantors listed on the
signature pages hereto

 

 

Exchange
and Registration Rights Agreement

 

August 12,
2009

 

Goldman, Sachs & Co.,

As representative of the several Initial Purchasers

named in Schedule I to
the Purchase Agreement

85 Broad Street

New York, New York 10004

 

Ladies and Gentlemen:

 

MTR
Gaming Group, Inc., a Delaware corporation (the “Company”),
proposes to issue and sell to the Initial Purchasers (as defined herein) upon
the terms set forth in the Purchase Agreement (as defined herein) $250,000,000
in aggregate principal amount of its 12.625% Senior Secured Notes due 2014,
which are irrevocably and unconditionally guaranteed by each of the subsidiary
guarantors listed on the signature page of this Agreement (the “Guarantors”).  As an
inducement to the Initial Purchasers to enter into the Purchase Agreement and
in satisfaction of a condition to the obligations of the Initial Purchasers
thereunder, the Company and the Guarantors agree with the Initial Purchasers
for the benefit of holders (as defined herein) from time to time of the
Registrable Securities (as defined herein) as follows:

 

1.             Certain Definitions.  For purposes of this Exchange and
Registration Rights Agreement (this “Agreement”),
the following terms shall have the following respective meanings:

 

“Applicable Period”
shall have the meaning assigned thereto in Section 2(a).

 

 “Base
Interest” shall mean the interest
that would otherwise accrue on the Securities under the terms thereof and the
Indenture, without giving effect to the provisions of this Agreement.

 

“broker-dealer” shall mean any broker or dealer registered
with the Commission under the Exchange Act.

 

“Business Day”
shall have the meaning set forth in Rule 13e-4(a)(3) promulgated by
the Commission under the Exchange Act, as the same may be amended or succeeded
from time to time.

 

 “Closing
Date” shall mean the date on
which the Securities are initially issued.

 

“Commission”
shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“EDGAR System”
means the EDGAR filing system of the Commission and the rules and
regulations pertaining thereto promulgated by the Commission in Regulation S-T
under the Securities Act and the Exchange Act, in each case as the same may be
amended or succeeded from time to time (and without regard to format).

 

1

 

“Effective Time,”
in the case of (i) an Exchange Registration, shall mean the time and date
as of which the Commission declares the Exchange Offer Registration Statement
effective or as of which the Exchange Offer Registration Statement otherwise
becomes effective and (ii) a Shelf Registration, shall mean the time and
date as of which the Commission declares the Shelf Registration Statement
effective or as of which the Shelf Registration Statement otherwise becomes
effective.

 

“Electing Holder”
shall mean any holder of Registrable Securities that has returned a completed
and signed Notice and Questionnaire to the Company in accordance with Section 3(d)(ii) or
Section 3(d)(iii) and the instructions set forth in the Notice and
Questionnaire.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated by the Commission thereunder, as the same may be
amended or succeeded from time to time.

 

“Exchange Offer”
shall have the meaning assigned thereto in Section 2(a).

 

“Exchange Registration”
shall have the meaning assigned thereto in Section 3(c).

 

“Exchange Offer Registration Statement”
shall have the meaning assigned thereto in Section 2(a).

 

“Exchange Securities”
shall have the meaning assigned thereto in Section 2(a).

 

“FINRA”
shall mean the Financial Industry Regulatory Authority, Inc.

 

“Guarantor”
shall have the meaning assigned thereto in the Indenture.

 

The
term “holder” shall mean each of the Initial
Purchasers and other persons who acquire Securities from time to time
(including any successors or assigns), in each case for so long as such person
owns any Securities.

 

“Indenture”
shall mean the Indenture, dated as of August 12, 2009, among the
Company, the Guarantors and Wilmington Trust FSB, as trustee and as
collateral agent, as the same may be amended from time to time.

 

“Initial Purchasers”
means Goldman, Sachs & Co. and Deutsche Bank Securities Inc.

 

“Liquidated Damages”
shall have the meaning assigned thereto in Section 2(c).

 

“Note Guarantee”
shall have the meaning assigned thereto in the definition of “Securities.”

 

 “Notice and
Questionnaire” means a Notice of
Registration Statement and Selling Securityholder Questionnaire substantially
in the form of Exhibit A hereto.

 

The
term “person” shall mean a corporation,
limited liability company, association, partnership, organization, business,
individual, government or political subdivision thereof or governmental agency.

 

“Purchase Agreement”
shall mean the Purchase Agreement, dated as of July 24, 2009, among
Goldman, Sachs & Co., as representative of the several purchasers
named therein, the Company and the Guarantors relating to the Securities.

 

“Registrable Securities”
mean the Securities; provided, however, that the Securities shall cease to be
Registrable Securities when (i) in the circumstances contemplated by Section 2(a),
an Exchange Offer Registration Statement with respect to such Securities shall
have been declared effective under the Securities Act and such Securities shall
have been disposed of pursuant to such effective Exchange Offer Registration
Statement, (ii) in the circumstances contemplated by Section 2(b), a
Shelf Registration Statement with respect to such Securities shall have been
declared effective under the Securities Act and such Securities shall have been
disposed of pursuant to such effective Shelf Registration Statement, (iii) such
Securities shall have ceased to be outstanding or (iv) the Exchange Offer
is consummated (except in the case of Securities purchased from the Company and
continued to be held by the Initial Purchasers).

 

“Registration Default”
shall have the meaning assigned thereto in Section 2(c).

 

2

 

“Registration Default Period”
shall have the meaning assigned thereto in Section 2(c).

 

“Registration Expenses”
shall have the meaning assigned thereto in Section 4.

 

 “Restricted
Holder” shall mean (i) a
holder that is an affiliate of the Company within the meaning of Rule 405,
(ii) a holder who acquires Exchange Securities outside the ordinary course
of such holder’s business, (iii) a holder who has arrangements or understandings
with any person to participate in the Exchange Offer for the purpose of
distributing Exchange Securities and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Securities received by such
broker-dealer pursuant to an Exchange Offer in exchange for Registrable
Securities acquired by the broker-dealer directly from the Company.

 

“Rule 144,” “Rule 405”, “Rule 415”, “Rule 424”,
“Rule 430B” and “Rule 433” shall mean, in each case, such rule promulgated
by the Commission under the Securities Act (or any successor provision), as the
same may be amended or succeeded from time to time.

 

 “Securities”
shall mean, collectively, the $250,000,000 in aggregate principal amount of the
Company’s 12.625% Senior Secured Notes due 2014 to be issued and sold to the
Initial Purchasers, and securities issued in exchange therefor or in lieu
thereof pursuant to the Indenture.  Each
Security is entitled to the benefit of the guarantees provided by the
Guarantors in the Indenture (the “Note Guarantees”)
and, unless the context otherwise requires, any reference herein to a “Security,”
an “Exchange Security” or a “Registrable Security” shall include a reference to
the related Note Guarantees.

 

“Securities Act”
shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated by the Commission thereunder, as the same may be
amended or succeeded from time to time.

 

“Shelf Registration”
shall have the meaning assigned thereto in Section 2(b).

 

“Shelf Registration Statement”
shall have the meaning assigned thereto in Section 2(b).

 

 “Trust
Indenture Act” shall mean the Trust
Indenture Act of 1939, as amended, and the rules and regulations
promulgated by the Commission thereunder, as the same may be amended or
succeeded from time to time.

 

“Trustee”
shall mean Wilmington Trust FSB, as trustee under the Indenture, together with
any successors thereto in such capacity.

 

Unless the context otherwise
requires, any reference herein to a “Section” or “clause” refers to a Section or
clause, as the case may be, of this Agreement, and the words “herein,” “hereof”
and “hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular Section or other subdivision.

 

1.     Registration Under the Securities Act.

 

(a)   Except
as set forth in Section 2(b) below, the Company and the Guarantors
agree to file under the Securities Act promptly, but no later than 90 days
after the Closing Date, a registration statement relating to an offer to
exchange (such registration statement, the “Exchange Offer
Registration Statement”, and such offer, the “Exchange
Offer”) any and all of the Securities for a like aggregate principal
amount of debt securities issued by the Company and guaranteed by the
Guarantors, which debt securities and guarantees are substantially identical to
the Securities and the related Note Guarantees, respectively (and are entitled
to the benefits of the Indenture), except that they have been registered
pursuant to an effective registration statement under the Securities Act and do
not contain provisions for Liquidated Damages contemplated in Section 2(c) below
(such new debt securities hereinafter called “Exchange
Securities”).  The Company and
the Guarantors agree to use their reasonable best efforts to cause the Exchange
Offer Registration Statement to become effective under the Securities Act
promptly, but no later than 180 days after the Closing Date, and will keep the
Exchange Offer Registration Statement effective until the consummation of the
Exchange Offer.  The Exchange Offer will
be registered under the Securities Act on the appropriate form and will comply
with all applicable tender offer rules and regulations under the Exchange
Act.  Unless the Exchange Offer would not
be permitted by applicable law or Commission policy, the Company and the
Guarantors further agree to use all reasonable best efforts to 

 

3

 

(i) commence
and complete the Exchange Offer promptly, but no later than 45 days after the
date on which the Exchange Offer Registration Statement has become effective, (ii) hold
the Exchange Offer open for not less than 30 days and (iii) exchange
Exchange Securities for all Registrable Securities that have been properly
tendered and not withdrawn on or prior to the expiration of the Exchange
Offer.  The Exchange Offer will be deemed
to have been “completed” only (i) if the debt securities and related
guarantees received by holders other than Restricted Holders in the Exchange
Offer for Registrable Securities are, upon receipt, transferable by each such
holder without restriction under the Securities Act and the Exchange Act and
without material restrictions under the blue sky or securities laws of a
substantial majority of the States of the United States of America and (ii) upon
the Company having exchanged, pursuant to the Exchange Offer, Exchange
Securities for all Registrable Securities that have been properly tendered and
not withdrawn before the expiration of the Exchange Offer, which shall be on a
date that is not less than 30 days following the commencement of the Exchange
Offer.  The Company and the Guarantors
agree (x) to include in the Exchange Offer Registration Statement a
prospectus for use in any resales by any holder of Exchange Securities that is
a broker-dealer and (y) to use their respective reasonable best efforts to
keep such Exchange Offer Registration Statement effective for a period of time
as such Persons must comply with such requirements in order to resell the
Exchange Securities beginning when Exchange Securities are first issued in the
Exchange Offer and ending upon such time as such broker dealers no longer own
any Registrable Securities (the “Applicable Period”).  With respect to such Exchange Offer
Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Subsections 6(a), (c), (d) and
(e).

 

(b)   If
(i) prior to the time the Exchange Offer is completed (A) existing
Commission interpretations are changed such that the Exchange Securities
received in the Exchange Offer would not in general be, upon receipt,
transferable by holders thereof without restrictions under the Securities Act
or (B) the interests of the holders, taken as a whole, would be materially
adversely affected by the consummation of the Exchange offer; (ii) the
Exchange Offer has not been completed within 225 days following the Closing
Date; or (iii) the Exchange Offer is not available to any holder of the
Securities, the Company and the Guarantors shall, in lieu of (or, in the case
of clause (iii), in addition to) conducting the Exchange Offer contemplated by Section 2(a),
file under the Securities Act, a “shelf” registration statement providing for
the registration of, and the sale on a continuous or delayed basis by the
holders of, all of the Registrable Securities, pursuant to Rule 415 or any
similar rule that may be adopted by the Commission (such filing, the “Shelf Registration” and such registration statement, the “Shelf Registration Statement”).  The Company and the Guarantors agree to file
the Shelf Registration Statement with the Commission as soon as practicable,
but no later than 30 days after the time that its obligation to file
arises.  The Company and the Guarantors
agree to use their reasonable best efforts to cause the Shelf Registration
Statement to become or be declared effective under the Securities Act no later
than 60 days after the date such Shelf Registration Statement is filed.  The Company and the Guarantors agree to use
their reasonable best efforts to keep such Shelf Registration Statement
continuously effective for a period ending on the earlier of the second
anniversary of the Effective Time or such time as all Registrable Securities
covered by the Shelf Registration have been sold or there are no longer any
Registrable Securities outstanding.  No
holder shall be entitled to be named as a selling securityholder in the Shelf
Registration Statement or to use the prospectus forming a part thereof for
resales of Registrable Securities unless such holder is an Electing
Holder.  The Company and the Guarantors
agree, after the Effective Time of the Shelf Registration Statement and
promptly upon the request of any holder of Registrable Securities that is not
then an Electing Holder, to use all commercially reasonable efforts to enable
such holder to use the prospectus forming a part thereof for resales of
Registrable Securities, including, without limitation, any action necessary to
identify such holder as a selling securityholder in the Shelf Registration
Statement (whether by post-effective amendment thereto or by filing a
prospectus pursuant to Rule 430B and 424(b) under the Securities Act
identifying such holder), provided, however,
that nothing in this sentence shall relieve any such holder of the obligation
to return a completed and signed Notice and Questionnaire to the Company in
accordance with Section 3(d)(iii).

 

(c)   In
the event that (i) the Company and the Guarantors have not filed the
Exchange Offer Registration Statement or the Shelf Registration Statement on or
before the date on which such registration statement is required to be filed
pursuant to Section 2(a) or Section 2(b), respectively, or (ii) such
Exchange Offer Registration Statement or Shelf Registration Statement has not
become effective or been declared effective by the Commission on or before the
date on which such registration statement is required to become or be declared
effective pursuant to Section 2(a) or Section 2(b),
respectively, or (iii) the Exchange Offer has not been completed within 45
Days after the Effective Time of the Exchange Offer Registration Statement
relating to the Exchange Offer (if the Exchange Offer is then required to be
made) or (iv) any Exchange Offer Registration Statement or Shelf Registration
Statement required by Section 2(a) or Section 2(b) is filed
and declared 

 

4

 

effective
but shall thereafter either be withdrawn by the Company or shall become subject
to an effective stop order issued pursuant to Section 8(d) of the
Securities Act suspending the effectiveness of such registration statement
(except as specifically permitted herein) without being succeeded within 30
days by an additional registration statement filed and declared effective (each
such event referred to in clauses (i) through (iv), a “Registration
Default” and each period during which a Registration Default has
occurred and is continuing, a “Registration Default
Period”), then, as liquidated damages for such Registration Default,
subject to the provisions of Section 9(b), liquidated damages (“Liquidated Damages”), in addition to the Base Interest,
shall accrue on all Registrable Securities then outstanding at an amount per
week per $1,000 principal amount of Registrable Securities equal to $0.05 for
the first 90 days of the Registration Default Period, increasing by an
additional $0.05 per week per $1,000 principal amount of Registrable Securities
with respect to each subsequent 90-day period, up to a maximum of $0.25 per
week per $1,000 principal amount of Registrable Securities.  All accrued Liquidated Damages shall be paid
by the Company and the Guarantors on each interest payment date to holders of
record for the payment of interest.

 

(d)   The
Company shall take, and shall cause the Guarantors to take, all actions
necessary or advisable to be taken by it to ensure that the transactions
contemplated herein are effected as so contemplated, including all actions
necessary or desirable to register the Note Guarantees under any Exchange Offer
Registration Statement or Shelf 
Registration Statement, as applicable.

 

(e)   Any
reference herein to a registration statement or prospectus as of any time shall
be deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time; and any reference herein to any
post-effective amendment to a registration statement or to any prospectus
supplement as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time.

 

2.             Registration Procedures.

 

If the Company and the
Guarantors file a registration statement pursuant to Section 2(a) or Section 2(b),
the following provisions shall apply:

 

(a)           At
or before the Effective Time of the Exchange Registration or any Shelf
Registration, whichever may occur first, the Company shall qualify the
Indenture under the Trust Indenture Act.

 

(b)           In
the event that such qualification would require the appointment of a new
trustee under the Indenture, the Company shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture.

 

(c)           In
connection with the Company’s and the Guarantors’ obligations with respect to
the registration of Exchange Securities as contemplated by Section 2(a) (the
“Exchange Registration”), if applicable,
the Company and the Guarantors shall:

 

(i)            prepare
and file with the Commission promptly, but no later than 90 days after the
Closing Date, an Exchange Offer Registration Statement on any form which may be
utilized by the Company and the Guarantors and which shall permit the Exchange
Offer and resales of Exchange Securities by broker-dealers during the
Applicable Period to be effected as contemplated by Section 2(a), and use
their reasonable best efforts to cause such Exchange Offer Registration
Statement to become effective no later than 180 days after the Closing Date;

 

(ii)           as
soon as practicable prepare and file with the Commission such amendments and
supplements to such Exchange Offer Registration Statement and the prospectus
included therein as may be necessary to effect and maintain the effectiveness
of such Exchange Offer Registration Statement for the periods and purposes
contemplated in Section 2(a) and as may be required by the applicable
rules and regulations of the Commission and the instructions applicable to
the form of such Exchange Offer Registration Statement, and promptly provide
each broker-dealer holding Exchange Securities with such number of copies of
the prospectus included therein (as then amended or supplemented), in
conformity in all material respects with the requirements of the Securities Act
and the Trust Indenture Act, as such broker-dealer reasonably may request prior
to the expiration of the Applicable Period, for use in connection with resales
of Exchange Securities;

 

5

 

(iii)          promptly
notify each broker-dealer that has requested or received copies of the
prospectus included in such Exchange Offer Registration Statement, and confirm
such advice in writing, (A) when such Exchange Offer Registration
Statement or the prospectus included therein or any prospectus amendment or
supplement or post-effective amendment has been filed, and, with respect to
such Exchange Offer Registration Statement or any post-effective amendment,
when the same has become effective, (B) of any comments by the Commission
and by the blue sky or securities commissioner or regulator of any state with
respect thereto or any request by the Commission for amendments or supplements
to such Exchange Offer Registration Statement or prospectus or for additional
information, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of such Exchange Offer Registration Statement or
the initiation or threatening of any proceedings for that purpose, (D) if
at any time the representations and warranties of the Company contemplated by Section 5
cease to be true and correct in all material respects, (E) of the receipt
by the Company of any notification with respect to the suspension of the
qualification of the Exchange Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (F) the
occurrence of any event that causes the Company to become an “ineligible issuer”
as defined in Rule 405, or (G) if at any time during the Applicable
Period when a prospectus is required to be delivered under the Securities Act,
that such Exchange Offer Registration Statement, prospectus, prospectus
amendment or supplement or post-effective amendment does not conform in all
material respects to the applicable requirements of the Securities Act and the
Trust Indenture Act or contains an untrue statement of a material fact or omits
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances under which
such statements were made;

 

(iv)          in
the event that the Company and the Guarantors would be required, pursuant to Section
3(c)(iii)(G), to notify any broker-dealers holding Exchange Securities,
promptly prepare and furnish to each such holder a reasonable number of copies
of a prospectus supplemented or amended so that, as thereafter delivered to
purchasers of such Exchange Securities during the Applicable Period, such
prospectus shall conform in all material respects to the applicable requirements
of the Securities Act and the Trust Indenture Act and shall not contain an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances under which such statements were made;

 

(v)           use
all commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of such Exchange Offer Registration Statement or
any post-effective amendment thereto at the earliest practicable date;

 

(vi)          use
all commercially reasonable efforts to (A) register or qualify the
Exchange Securities under the securities laws or blue sky laws, and other
applicable laws, of such jurisdictions as are contemplated by Section 2(a) no
later than the commencement of the Exchange Offer, to the extent required by
such laws, (B) keep such registrations or qualifications in effect and
comply with such laws so as to permit the continuance of offers, sales and
dealings therein in such jurisdictions until the expiration of the Applicable
Period, (C) take any and all other actions as may be reasonably necessary
or advisable to enable each broker-dealer holding Exchange Securities to
consummate the disposition thereof in such jurisdictions and (D) obtain
the consent or approval of each governmental agency or authority, whether
federal, state or local, which may be required to effect the Exchange
Registration, the Exchange Offer and the offering and sale of Exchange
Securities by broker-dealers during the Applicable Period; provided,
however, that neither the Company nor the Guarantors shall be
required for any such purpose to (1) qualify as a foreign corporation in
any jurisdiction wherein it would not otherwise be required to qualify but for
the requirements of this Section 3(c)(vi), (2) consent to general
service of process in any such jurisdiction or become subject to taxation in
any such jurisdiction or (3) make any changes to its certificate of
incorporation or by-laws or other governing documents or any agreement between
it and its stockholders;

 

(vii)         obtain
a CUSIP number for all Exchange Securities, not later than the applicable
Effective Time; and

 

(viii)        comply
with all applicable rules and regulations of the Commission, and make
generally available to its securityholders no later than eighteen months after
the Effective Time of such Exchange 

 

6

 

Offer
Registration Statement, an “earning statement” of the Company and its
subsidiaries complying with Section 11(a) of the Securities Act
(including, at the option of the Company, Rule 158 thereunder).

 

(d)           In
connection with the Company’s and the Guarantors’ obligations with respect to
the Shelf Registration, if applicable, the Company and the Guarantors shall:

 

(i)            prepare
and file with the Commission, within the time periods specified in Section 2(b),
a Shelf Registration Statement on any form which may be utilized by the Company
and which shall register all of the Registrable Securities for resale by the
holders thereof in accordance with such method or methods of disposition as may
be specified by the holders of Registrable Securities as, from time to time,
may be Electing Holders and use all commercially reasonable efforts to cause
such Shelf Registration Statement to become effective within the time periods
specified in Section 2(b);

 

(ii)           mail
the Notice and Questionnaire to the holders of Registrable Securities not less
than 30 days prior to the anticipated Effective Time of the Shelf Registration
Statement, and no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement, and no holder shall be
entitled to use the prospectus forming a part thereof for resales of
Registrable Securities at any time, unless and until such holder has returned a
completed and signed Notice and Questionnaire to the Company;

 

(iii)          after
the Effective Time of the Shelf Registration Statement, upon the request of any
holder of Registrable Securities that is not then an Electing Holder, promptly
send a Notice and Questionnaire to such holder; provided
that the Company shall not be required to take any action to name such holder
as a selling securityholder in the Shelf Registration Statement or to enable
such holder to use the prospectus forming a part thereof for resales of
Registrable Securities until such holder has returned a completed and signed
Notice and Questionnaire to the Company;

 

(iv)          as
soon as practicable prepare and file with the Commission such amendments and supplements
to such Shelf Registration Statement and the prospectus included therein as may
be necessary to effect and maintain the effectiveness of such Shelf
Registration Statement for the period specified in Section 2(b) and
as may be required by the applicable rules and regulations of the
Commission and the instructions applicable to the form of such Shelf
Registration Statement, and furnish to the Electing Holders copies of any such
supplement or amendment simultaneously with or prior to its being used or filed
with the Commission to the extent such documents are not publicly available on
the Commission’s EDGAR System;

 

(v)           comply
with the provisions of the Securities Act with respect to the disposition of
all of the Registrable Securities covered by such Shelf Registration Statement
in accordance with the intended methods of disposition by the Electing Holders
provided for in such Shelf Registration Statement;

 

(vi)          provide
the Electing Holders and not more than one counsel for all the Electing Holders
the opportunity to participate in the preparation of such Shelf Registration
Statement, each prospectus included therein or filed with the Commission and
each amendment or supplement thereto;

 

(vii)         for
a reasonable period prior to the filing of such Shelf Registration Statement,
and throughout the period specified in Section 2(b), make available at
reasonable times at the Company’s principal place of business or such other
reasonable place for inspection by the persons referred to in Section 3(d)(vi) who
shall certify to the Company that they have a current intention to sell the
Registrable Securities pursuant to the Shelf Registration such financial and
other information and books and records of the Company, and cause the officers,
employees, counsel and independent certified public accountants of the Company
to respond to such inquiries, as shall be reasonably necessary (and in the case
of counsel, not violate an attorney-client privilege, in such counsel’s
reasonable belief), in the judgment of the respective counsel referred to in Section 3(d)(vi),
to conduct a reasonable investigation within the meaning of Section 11 of
the Securities Act; provided, however,
that the foregoing inspection and information gathering on behalf of the
Electing Holders shall be conducted by one counsel designated by the holders of
at least a majority in aggregate principal 

 

7

 

amount
of the Registrable Securities held by the Electing Holders at the time
outstanding and provided further that each such
party shall be required to maintain in confidence and not to disclose to any
other person any information or records reasonably designated by the Company as
being confidential, until such time as (A) such information becomes a
matter of public record (whether by virtue of its inclusion in such Shelf
Registration Statement or otherwise), or (B) such person shall be required
so to disclose such information pursuant to a subpoena or order of any court or
other governmental agency or body having jurisdiction over the matter (subject
to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such requirement), or (C) such
information is required to be set forth in such Shelf Registration Statement or
the prospectus included therein or in an amendment to such Shelf Registration
Statement or an amendment or supplement to such prospectus in order that such
Shelf Registration Statement, prospectus, amendment or supplement, as the case
may be, complies with applicable requirements of the federal securities laws
and the rules and regulations of the Commission and does not contain an
untrue statement of a material fact or omit to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which such statements were made;

 

(viii)        promptly
notify each of the Electing Holders and confirm such advice in writing, (A) when
such Shelf Registration Statement or the prospectus included therein or any
prospectus amendment or supplement or post-effective amendment has been filed,
and, with respect to such Shelf Registration Statement or any post-effective
amendment, when the same has become effective, (B) of any comments by the
Commission and by the blue sky or securities commissioner or regulator of any
state with respect thereto or any request by the Commission for amendments or
supplements to such Shelf Registration Statement or prospectus or for additional
information, (C) of the issuance by the Commission of any stop order
suspending the effectiveness of such Shelf Registration Statement or the
initiation or threatening of any proceedings for that purpose, (D) if at
any time the representations and warranties of the Company set forth in Section 5
cease to be true and correct in all material respects, (E) of the receipt
by the Company of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose, (F) the
occurrence of any event that causes the Company to become an “ineligible issuer”
as defined in Rule 405, or (G) if at any time when a prospectus is
required to be delivered under the Securities Act, that such Shelf Registration
Statement, prospectus, prospectus amendment or supplement or post-effective
amendment does not conform in all material respects to the applicable
requirements of the Securities Act and the Trust Indenture Act or contains an
untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances under which such statements were made;

 

(ix)           use
all commercially reasonable efforts to obtain the withdrawal of any order
suspending the effectiveness of such Shelf Registration Statement or any
post-effective amendment thereto at the earliest practicable date;

 

(x)            if
requested by any Electing Holder, promptly incorporate in a prospectus
supplement or post-effective amendment such information as is required by the
applicable rules and regulations of the Commission and as such Electing
Holder specifies should be included therein relating to the terms of the sale
of such Registrable Securities, including information with respect to the
principal amount of Registrable Securities being sold by such Electing Holder,
the name and description of such Electing Holder, the offering price of such
Registrable Securities and any discount, commission or other compensation
payable in respect thereof and with respect to any other material terms of the
offering of the Registrable Securities to be sold by such Electing Holder; and
make all required filings of such prospectus supplement or post-effective
amendment promptly after notification of the matters to be incorporated in such
prospectus supplement or post-effective amendment;

 

(xi)           furnish
to each Electing Holder and the counsel referred to in Section 3(d)(vi) an
executed copy (or a conformed copy) of such Shelf Registration Statement, each
such amendment and supplement thereto (in each case including all exhibits
thereto (in the case of an Electing Holder of Registrable Securities, upon
request) and documents incorporated by reference therein) and such number of
copies of such Shelf Registration Statement (excluding exhibits thereto and
documents 

 

8

 

incorporated
by reference therein unless specifically so requested by such Electing Holder)
and of the prospectus included in such Shelf Registration Statement (including
each preliminary prospectus and any summary prospectus), in conformity in all
material respects with the applicable requirements of the Securities Act and
the Trust Indenture Act to the extent such documents are not available through
the Commission’s EDGAR System, and such other documents, as such Electing
Holder may reasonably request in order to facilitate the offering and
disposition of the Registrable Securities owned by such Electing Holder and to
permit such Electing Holder to satisfy the prospectus delivery requirements of
the Securities Act; and subject to Section 3(e), the Company hereby
consents to the use of such prospectus (including such preliminary and summary
prospectus) and any amendment or supplement thereto by each such Electing
Holder, in each case in the form most recently provided to such person by the
Company, in connection with the offering and sale of the Registrable Securities
covered by the prospectus (including such preliminary and summary prospectus)
or any supplement or amendment thereto;

 

(xii)          use
all commercially reasonable efforts to (A) register or qualify the
Registrable Securities to be included in such Shelf Registration Statement
under such securities laws or blue sky laws, and other applicable laws, of such
jurisdictions as any Electing Holder shall reasonably request, (B) keep
such registrations or qualifications in effect and comply with such laws so as
to permit the continuance of offers, sales and dealings therein in such
jurisdictions during the period the Shelf Registration Statement is required to
remain effective under Section 2(b) and for so long as may be
necessary to enable any such Electing Holder to complete its distribution of
Registrable Securities pursuant to such Shelf Registration Statement, (C) take
any and all other actions as may be reasonably necessary or advisable to enable
each such Electing Holder to consummate the disposition in such jurisdictions
of such Registrable Securities and (D) obtain the consent or approval of
each governmental agency or authority, whether federal, state or local, which
may be required to effect the Shelf Registration or the offering or sale in
connection therewith or to enable the selling holder or holders to offer, or to
consummate the disposition of, their Registrable Securities; provided, however, that neither the Company nor the
Guarantors shall be required for any such purpose to (1) qualify as a
foreign corporation in any jurisdiction wherein it would not otherwise be
required to qualify but for the requirements of this Section 3(d)(xii), (2) consent
to general service of process in any such jurisdiction or become subject to
taxation in any such jurisdiction or (3) make any changes to its
certificate of incorporation or by-laws or other governing documents or any
agreement between it and its stockholders;

 

(xiii)         unless
any Registrable Securities shall be in book-entry only form, cooperate with the
Electing Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be sold, which
certificates, if so required by any securities exchange upon which any
Registrable Securities are listed, shall be printed, penned, lithographed,
engraved or otherwise produced by any combination of such methods, on steel
engraved borders, and which certificates shall not bear any restrictive
legends;

 

(xiv)        obtain
a CUSIP number for all Securities that have been registered under the Securities
Act, not later than the applicable Effective Time;

 

(xv)         notify
in writing each holder of Registrable Securities of any proposal by the Company
to amend or waive any provision of this Agreement pursuant to Section 9(h) and
of any amendment or waiver effected pursuant thereto, each of which notices
shall contain the text of the amendment or waiver proposed or effected, as the
case may be; and

 

(xvi)        comply
with all applicable rules and regulations of the Commission, and make
generally available to its securityholders no later than eighteen months after
the Effective Time of such Shelf Registration Statement an “earning statement”
of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act (including, at the option of the Company, Rule 158
thereunder).

 

(e)           In
the event that the Company would be required, pursuant to Section 3(d)(viii)(G),
to notify the Electing Holders, the Company shall promptly prepare and furnish
to each of the Electing Holders a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of
Registrable Securities, such prospectus shall conform in all material respects
to the applicable requirements of 

 

9

 

the
Securities Act and the Trust Indenture Act and shall not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances under which such statements were made.  Each Electing Holder agrees that upon receipt
of any notice from the Company pursuant to Section 3(d)(viii)(G), such
Electing Holder shall forthwith discontinue the disposition of Registrable
Securities pursuant to the Shelf Registration Statement applicable to such
Registrable Securities until such Electing Holder shall have received copies of
such amended or supplemented prospectus, and if so directed by the Company,
such Electing Holder shall deliver to the Company (at the Company’s expense)
all copies, other than permanent file copies, of the prospectus covering such
Registrable Securities in such Electing Holder’s possession at the time of
receipt of such notice.

 

(f)            In
the event of a Shelf Registration, in addition to the information required to
be provided by each Electing Holder in its Notice and Questionnaire, the
Company may require such Electing Holder to furnish to the Company such
additional information regarding such Electing Holder and such Electing Holder’s
intended method of distribution of Registrable Securities as may be required in
order to comply with the Securities Act. 
Each such Electing Holder agrees to notify the Company as promptly as
practicable of any inaccuracy or change in information previously furnished by
such Electing Holder to the Company or of the occurrence of any event in either
case as a result of which any prospectus relating to such Shelf Registration
contains or would contain an untrue statement of a material fact regarding such
Electing Holder or such Electing Holder’s intended method of disposition of
such Registrable Securities or omits to state any material fact regarding such
Electing Holder or such Electing Holder’s intended method of disposition of
such Registrable Securities required to be stated therein or necessary to make
the statements therein not misleading in light of the circumstances under which
such statements were made, and promptly to furnish to the Company any
additional information required to correct and update any previously furnished
information or required so that such prospectus shall not contain, with respect
to such Electing Holder or the disposition of such Registrable Securities, an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances under which such statements were made.

 

(g)           Until
the expiration of one year after the Closing Date, the Company will not, and
will not permit any of its “affiliates” (as defined in Rule 144) to,
resell any of the Securities that have been reacquired by any of them except
pursuant to an effective registration statement, or a valid exemption from the
registration requirements, under the Securities Act.

 

(h)           As
a condition to its participation in the Exchange Offer, each holder of
Registrable Securities shall furnish, upon the request of the Company, a
written representation to the Company (which may be contained in the letter of
transmittal or “agent’s message” transmitted via The Depository Trust Company’s
Automated Tender Offer Procedures, in either case contemplated by the Exchange
Offer Registration Statement) to the effect that (A) it is not an “affiliate”
of the Company, as defined in Rule 405 of the Securities Act, or if it is
such an “affiliate”, it will comply with the registration and prospectus
delivery requirements of the Securities Act to the extent applicable, (B) it
is not engaged in and does not intend to engage in, and has no arrangement or
understanding with any person to participate in, a distribution of the Exchange
Securities to be issued in the Exchange Offer, (C) it is acquiring the
Exchange Securities in its ordinary course of business, (D) if it is a
broker-dealer that holds Securities that were acquired for its own account as a
result of market-making activities or other trading activities (other than
Securities acquired directly from the Company or any of its affiliates), it
will deliver a prospectus meeting the requirements of the Securities Act in
connection with any resales of the Exchange Securities received by it in the
Exchange Offer, (E) if it is a broker-dealer, that it did not purchase the
Securities to be exchanged in the Exchange Offer from the Company or any of its
affiliates, and (F) it is not acting on behalf of any person who could not
truthfully and completely make the representations contained in the foregoing
subclauses (A) through (E).

 

3.             Registration Expenses.

 

The Company agrees to bear
and to pay or cause to be paid promptly all expenses incident to the Company’s
performance of or compliance with this Agreement, including (a) all
Commission and any FINRA registration, filing and review fees in connection
with such registration, filing and review, (b) all fees and expenses in
connection with the qualification of the Registrable Securities and the
Exchange Securities, as applicable, for offering and sale under the State
securities and blue sky laws referred to in Section 3(d)(xii) and
determination of their eligibility for investment under the laws of such
jurisdictions as the Electing Holders may designate, including 

 

10

 

any reasonable fees and disbursements of
counsel for the Electing Holders in connection with such qualification and
determination, (c) all expenses relating to the preparation, printing,
production, distribution and reproduction of each registration statement
required to be filed hereunder, each prospectus included therein or prepared
for distribution pursuant hereto, each amendment or supplement to the
foregoing, the expenses of preparing the Securities or Exchange Securities, as
applicable, for delivery and the expenses of printing or producing any selling
agreements and blue sky or legal investment memoranda and all other documents
in connection with the offering, sale or delivery of Securities or Exchange
Securities, as applicable, to be disposed of (including certificates
representing the Securities or Exchange Securities, as applicable), (d) messenger,
telephone and delivery expenses relating to the offering, sale or delivery of
Securities or Exchange Securities, as applicable, and the preparation of
documents referred in clause (c) above, (e) fees and expenses of the
Trustee under the Indenture, any agent of the Trustee and any counsel for the
Trustee and of any collateral agent or custodian, (f) internal expenses
(including all salaries and expenses of the Company’s officers and employees
performing legal or accounting duties), (g) reasonable fees, disbursements
and expenses of counsel and independent certified public accountants of the
Company, (h) reasonable fees, disbursements and expenses of one counsel
for the Electing Holders retained in connection with a Shelf Registration, as
selected by the Electing Holders of at least a majority in aggregate principal
amount of the Registrable Securities held by Electing Holders (which counsel
shall be reasonably satisfactory to the Company), (i) any fees charged by
securities rating services for rating the Registrable Securities or the
Exchange Securities, as applicable, and (j) fees, expenses and
disbursements of any other persons, including special experts, retained by the
Company in connection with such registration (collectively, the “Registration Expenses”). 
To the extent that any Registration Expenses are incurred, assumed or
paid by any holder of Registrable Securities, Securities or Exchange
Securities, as applicable,  the Company
shall reimburse such person for the full amount of the Registration Expenses so
incurred, assumed or paid promptly after receipt of a request therefor.  Notwithstanding the foregoing, the holders of
the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions, if any, and transfer
taxes, if any, attributable to the sale of such Registrable Securities  and Exchange Securities, as applicable, and the fees and
disbursements of any counsel or other advisors or experts retained by such
holders (severally or jointly), other than the counsel and experts specifically
referred to above.

 

4.             Representations and Warranties.

 

Each of the Company and the
Guarantors, jointly and severally, represents and warrants to, and agrees with,
each Purchaser and each of the holders from time to time of Registrable
Securities that:

 

(a)           Each
registration statement covering Registrable Securities, Securities or Exchange
Securities, as applicable, and each prospectus (including any preliminary or
summary prospectus) contained therein or furnished pursuant to Section 3(c) or
Section 3(d) and any further amendments or supplements to any such
registration statement or prospectus, when it becomes effective or is filed
with the Commission, as the case may be, will conform in all material respects
to the requirements of the Securities Act and the Trust Indenture Act and will
not contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading; and at all times subsequent to the Effective Time when a
prospectus would be required to be delivered under the Securities Act, other
than from (i) such time as a notice has been given to holders of
Registrable Securities pursuant to Section 3(c)(iii)(G) or Section 3(d)(viii)(G) until
(ii) such time as the Company furnishes an amended or supplemented
prospectus pursuant to Section 3(c)(iv) or Section 3(e), each
such registration statement, and each prospectus (including any summary prospectus)
contained therein or furnished pursuant to Section 3(c) or Section 3(d),
as then amended or supplemented, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances under which such statements were
made; provided, however, that this representation
and warranty shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the Company by
a holder, or a holder’s representative, of Registrable Securities  expressly for use therein.

 

(b)           Any
documents incorporated by reference in any prospectus referred to in Section 5(a),
when they become or became effective or are or were filed with the Commission,
as the case may be, will conform or conformed in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and none
of such documents will contain or contained an untrue statement of a material
fact or will omit or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided,
however, that this representation 

 

11

 

and
warranty shall not apply to any statements or omissions made in reliance upon
and in conformity with information furnished in writing to the Company by a
holder of Registrable Securities expressly for use therein.

 

(c)           The
compliance by the Company with all of the provisions of this Agreement and the
consummation of the transactions herein contemplated will not (i) conflict
with or result in a breach or violation of any of the terms or provisions of,
or constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or any of its
subsidiaries is a party or by which the Company or any of its subsidiaries is
bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject, (ii) result in any violation of the provisions of
the certificate of incorporation, as amended, or the by-laws or other governing
documents, as applicable, of the Company or the Guarantors or (iii) 
result in any violation of any statute or any order, rule or regulation of
any court or governmental agency or body having jurisdiction over the Company
or any of its subsidiaries or any of their respective properties, except in the
case of (i) or (iii) above, as would not be reasonably expected to
have a material adverse effect on the business, condition (financial or
otherwise), results of operations, properties or prospects of the Company and
its subsidiaries, taken as a whole.  No
consent, approval, authorization, order, registration or qualification of or
with any such court or governmental agency or body is required for the
consummation by the Company and the Guarantors of the transactions contemplated
by this Agreement, except (x) the registration under the Securities Act of
the Registrable Securities and the Exchange Securities, as applicable, and
qualification of the Indenture under the Trust Indenture Act, (y) such
consents, approvals, authorizations, registrations or qualifications as may be
required under state securities or blue sky laws in connection with the
offering and distribution of the Registrable Securities and the Exchange
Securities, as applicable, and (z) such consents, approvals,
authorizations, registrations or qualifications that have been obtained and are
in full force and effect as of the date hereof or that are to be obtained
pursuant to Sections 3(c)(vi) or 3(d)(xii) hereof.

 

(d)           This
Agreement has been duly authorized, executed and delivered by the Company and
by the Guarantors.

 

5.             Indemnification and Contribution.

 

(a)           Indemnification by the Company and the Guarantors.  The
Company and the Guarantors, jointly and severally, will indemnify and hold
harmless each of the holders of Registrable Securities included in an Exchange
Offer Registration Statement and each of the Electing Holders as holders of
Registrable Securities included in a Shelf Registration Statement  against any losses, claims, damages or
liabilities, joint or several, to which such holder or such Electing Holder may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or alleged untrue statement of a material
fact contained in any Exchange Offer Registration Statement or any Shelf
Registration Statement, as the case may be, under which such Registrable
Securities or Exchange Securities were registered under the Securities Act, or
any preliminary, final or summary prospectus (including, without limitation,
any “issuer free writing prospectus” as defined in Rule 433) contained
therein or furnished by the Company to any such holder or any such Electing
Holder, or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not
misleading, and will reimburse each such holder and each such Electing Holder
for any and all legal or other expenses reasonably incurred by them in
connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however,
that neither the Company nor the Guarantors shall be liable to any such person
in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement, or
preliminary, final or summary prospectus (including, without limitation, any “issuer
free writing prospectus” as defined in Rule 433), or amendment or
supplement thereto, in reliance upon and in conformity with written information
furnished to the Company by such person expressly for use therein.

 

(b)           Indemnification by the Electing Holders.  The Company may require, as a condition to
including any Registrable Securities in any Shelf Registration Statement filed
pursuant to Section 2(b), that the Company shall have received an
undertaking reasonably satisfactory to it from each Electing Holder of
Registrable Securities included in such Shelf Registration Statement, severally
and not jointly, to (i) indemnify and hold harmless the Company, the
Guarantors and all other Electing Holders of Registrable Securities included in
such Shelf Registration Statement, against any losses, claims, damages or liabilities
to which the Company, the 

 

12

 

Guarantors
or such other Electing Holders may become subject, under the Securities Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon an untrue statement or
alleged untrue statement of a material fact contained in such registration
statement, or any preliminary, final or summary prospectus (including, without
limitation, any “issuer free writing prospectus” as defined in Rule 433)
contained therein or furnished by the Company to any Electing Holder, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each
case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by
such Electing Holder expressly for use therein, and (ii) reimburse the
Company and the Guarantors for any legal or other expenses reasonably incurred
by the Company and the Guarantors in connection with investigating or defending
any such action or claim as such expenses are incurred; provided,
however, that no such Electing Holder shall be required to undertake
liability to any person under this Section 6(b) for any amounts in
excess of the dollar amount of the proceeds to be received by such Electing
Holder from the sale of such Electing Holder’s Registrable Securities pursuant
to such registration.

 

(c)           Notices of Claims, Etc.  Promptly
after receipt by an indemnified party under subsection (a) or (b) above
of written notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against an indemnifying
party pursuant to the indemnification provisions of or contemplated by this Section 6,
notify such indemnifying party in writing of the commencement of such action;
but the omission so to notify the indemnifying party shall not relieve it from
any liability which it may have to any indemnified party otherwise than under
the indemnification provisions of or contemplated by Section 6(a) or Section 6(b).  In case any such action shall be brought
against any indemnified party and it shall notify an indemnifying party of the
commencement thereof, such indemnifying party shall be entitled to participate
therein and, to the extent that it shall wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the
indemnifying party), and, after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, such
indemnifying party shall not be liable to such indemnified party for any legal
expenses of other counsel or any other expenses, in each case subsequently
incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investigation. 
No indemnifying party shall, without the prior written consent of the
indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (i) includes
an unconditional release of the indemnified party from all liability arising
out of such action or claim and (ii) does not include a statement as to,
or an admission of, fault, culpability or a failure to act by or on behalf of
any indemnified party.

 

(d)           Contribution. 
If for any reason the
indemnification provisions contemplated by Section 6(a) or Section 6(b) are
unavailable to or insufficient to hold harmless an indemnified party in respect
of any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and the indemnified party in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations.  The relative fault of such indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.  The parties
hereto agree that it would not be just and equitable if contributions pursuant
to this Section 6(d) were determined by pro rata allocation (even if
the holders were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to in this Section 6(d). 
The amount paid or payable by an indemnified party as a result of the
losses, claims, damages, or liabilities (or actions in respect thereof)
referred to above shall be deemed to include any legal or other fees or
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 6(d),
no Electing Holder shall be required to contribute any amount in excess of the
amount by which the dollar amount of the proceeds received by such holder from
the 

 

13

 

sale
of any Registrable Securities (after deducting any fees, discounts and
commissions applicable thereto) exceeds the amount of any damages which such
holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
The holders’ obligations in this Section 6(d) to contribute
shall be several in proportion to the principal amount of Registrable
Securities registered by them and not joint.

 

(e)           The
obligations of the Company and the Guarantors under this Section 6 shall
be in addition to any liability which the Company or the Guarantors may
otherwise have and shall extend, upon the same terms and conditions, to each
officer, director and partner of each holder, each Electing Holder and each
person, if any, who controls any of the foregoing within the meaning of the
Securities Act; and the obligations of the holders and the Electing Holders
contemplated by this Section 6 shall be in addition to any liability which
the respective holder or Electing Holder may otherwise have and shall extend,
upon the same terms and conditions, to each officer and director of the Company
or the Guarantors (including any person who, with his consent, is named in any
registration statement as about to become a director of the Company or the
Guarantor) and to each person, if any, who controls the Company within the
meaning of the Securities Act, as well as to each officer and director of the
other holders and to each person, if any, who controls such other holders
within the meaning of the Securities Act.

 

6.             Underwritten Offerings.

 

Each holder of Registrable
Securities hereby agrees with the Company and each other such holder that no
holder of Registrable Securities may participate in any underwritten offering
hereunder unless (a) the Company gives its prior written consent to such
underwritten offering, (b) the managing underwriter or underwriters
thereof shall be designated by Electing Holders holding at least a majority in
aggregate principal amount of the Registrable Securities to be included in such
offering, provided that such designated managing underwriter or underwriters is
or are reasonably acceptable to the Company, (c) each holder of
Registrable Securities participating in such underwritten offering agrees to
sell such holder’s Registrable Securities on the basis provided in any
underwriting arrangements approved by the persons entitled selecting the
managing underwriter or underwriters hereunder and (d) each holder of
Registrable Securities participating in such underwritten offering completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.  The Company
hereby agrees with each holder of Registrable Securities that, to the extent it
consents to an underwritten offering hereunder, it will negotiate in good faith
and execute all indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements, including using all
commercially reasonable efforts to procure customary legal opinions and auditor
“comfort” letters.

 

7.             Rule 144.

 

(a)           Facilitation of Sales Pursuant to Rule 144.  The Company covenants to the holders of
Registrable Securities that to the extent it shall be required to do so under
the Exchange Act, the Company shall timely file the reports required to be
filed by it under the Exchange Act or the Securities Act (including the reports
under Sections 13 and 15(d) of the Exchange Act referred to in
subparagraph (c)(1) of Rule 144), and shall take such further action
as any holder of Registrable Securities may reasonably request, all to the
extent required from time to time to enable such holder to sell Registrable
Securities without registration under the Securities Act within the limitations
of the exemption provided by Rule 144. 
Upon the request of any holder of Registrable Securities in connection
with that holder’s sale pursuant to Rule 144, the Company shall deliver to
such holder a written statement as to whether it has complied with such
requirements.

 

(b)           Availability of Rule 144 Not Excuse for
Obligations under Section 2.  The fact that holders of Registrable Securities
may become eligible to sell such Registrable Securities pursuant to Rule 144
shall not (1) cause such Securities to cease to be Registrable Securities
or (2) excuse the Company’s and the Guarantors’ obligations set forth in Section 2
of this Agreement, including without limitation the obligations in respect of
an Exchange Offer, Shelf Registration and Liquidated Damages.

 

14

 

8.             Miscellaneous.

 

(a)           No Inconsistent Agreements.  The Company represents, warrants, covenants
and agrees that it has not granted, and shall not grant, registration rights
with respect to Registrable Securities, Exchange Securities or Securities, as
applicable, or any other securities which would be inconsistent with the terms
contained in this Agreement.

 

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Initial Purchasers and the holders from time
to time of the Registrable Securities may be irreparably harmed by any such
failure, and accordingly agree that the Initial Purchasers and such holders, in
addition to any other remedy to which they may be entitled at law or in equity,
shall be entitled to compel specific performance of the obligations of the
Company under this Agreement in accordance with the terms and conditions of
this Agreement, in any court of the United States or any State thereof having
jurisdiction.  Time shall be of the
essence in this Agreement.

 

(c)           Notices.  All notices, requests, claims, demands,
waivers and other communications hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, if delivered personally,
by facsimile or by courier, or three days after being deposited in the mail
(registered or certified mail, postage prepaid, return receipt requested) as
follows: If to the Company, to it at State Route 2 South, P.O. Box 356,
Chester, West Virginia, 26034, and if to a holder, to the address of such
holder set forth in the security register or other records of the Company, or
to such other address as the Company or any such holder may have furnished to
the other in writing in accordance herewith, except that notices of change of
address shall be effective only upon receipt.

 

(d)           Parties in Interest.  All the terms and provisions of this
Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable
by the parties hereto, the holders from time to time of the Registrable
Securities and the respective successors and assigns of the foregoing.  In the event that any transferee of any
holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be deemed
a beneficiary hereof for all purposes and such Registrable Securities shall be held
subject to all of the terms of this Agreement, and by taking and holding such
Registrable Securities such transferee shall be entitled to receive the
benefits of, and be conclusively deemed to have agreed to be bound by all of
the applicable terms and provisions of this Agreement.  If the Company shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.

 

(e)           Survival.  The respective indemnities, agreements,
representations, warranties and each other provision set forth in this
Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made
by or on behalf of any holder of Registrable Securities, any director, officer
or partner of such holder, or any controlling person of any of the foregoing,
and shall survive delivery of and payment for the Registrable Securities
pursuant to the Purchase Agreement, the transfer and registration of
Registrable Securities by such holder and the consummation of an Exchange
Offer.

 

(f)            Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

(g)           Headings.  The descriptive headings of the several
Sections and paragraphs of this Agreement are inserted for convenience only, do
not constitute a part of this Agreement and shall not affect in any way the
meaning or interpretation of this Agreement.

 

(h)           Entire Agreement; Amendments.  This Agreement and the other writings
referred to herein (including the Indenture and the form of Securities) or
delivered pursuant hereto which form a part hereof contain the entire
understanding of the parties with respect to its subject matter.  This Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter.  This Agreement may be amended
and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively) only by a written instrument duly executed by the Company and
the holders of at least a majority in aggregate principal amount of the
Registrable Securities at the time outstanding. 
Each holder of any Registrable Securities at the time or thereafter
outstanding shall be bound 

 

15

 

by
any amendment or waiver effected pursuant to this Section 9(h), whether or
not any notice, writing or marking indicating such amendment or waiver appears
on such Registrable Securities or is delivered to such holder.

 

(i)            Inspection.  For so long as this Agreement shall be in
effect, this Agreement and a complete list of the names and addresses of all
the record holders of Registrable Securities shall be made available for
inspection and copying on any Business Day by any holder of Registrable
Securities for proper purposes only (which shall include any purpose related to
the rights of the holders of Registrable Securities under the Securities, the
Indenture and this Agreement) at the offices of the Company at the address
thereof set forth in Section 9(c) and at the office of the Trustee
under the Indenture.

 

(j)            Counterparts.  This Agreement may be executed by the parties
in counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together constitute one and the same instrument.

 

(k)           Severability.  If any provision of this Agreement, or the
application thereof in any circumstance, is held to be invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of such provision in every other respect and of the remaining
provisions contained in this Agreement shall not be affected or impaired
thereby.

 

16

 

If the foregoing is in
accordance with your understanding, please sign and return to us one for the
Company, the Guarantors and the Representative plus one for each counsel
counterparts hereof, and upon the acceptance hereof by you, on behalf of each
of the Initial Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement between the Representative, the Guarantors and
the Company.  It is understood that your
acceptance of this letter on behalf of each of the Initial Purchasers is
pursuant to the authority set forth in a form of Agreement among Initial
Purchasers, the form of which shall be submitted to the Company for examination
upon request, but without warranty on your part as to the authority of the
signers thereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  MTR Gaming Group, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ Robert F. Griffin

  
	
   

  	
   

  	
  Name:

  	
  Robert F. Griffin

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Mountaineer Park, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ Robert F. Griffin

  
	
   

  	
   

  	
  Name:

  	
  Robert F. Griffin

  
	
   

  	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Presque Isle Downs, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ John W.
  Bittner, Jr.

  
	
   

  	
   

  	
  Name:

  	
  John. W. Bittner, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Scioto Downs, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ John W. Bittner, Jr.

  
	
   

  	
   

  	
  Name:

  	
  John W. Bittner, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 

Accepted as of the date hereof:

 

Goldman, Sachs & Co.

 

 

	
  By:

  	
  \s\ Goldman, Sachs & Co.

  	
   

  
	
   

  	
  (Goldman, Sachs &
  Co.)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  On behalf of each of
  the Initial Purchasers

  	
   

  

 

17

 

Exhibit A

 

MTR Gaming Group, Inc.

 

INSTRUCTION TO DTC
PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION
REQUESTED

 

DEADLINE
FOR RESPONSE:  [DATE] *

 

The Depository Trust
Company (“DTC”) has identified you as a DTC
Participant through which beneficial interests in the MTR Gaming Group, Inc.
(the “Company”) 12.625% Senior Secured Notes
due 2014 (the “Securities”) are held.

 

The Company is in the
process of registering the Securities under the Securities Act of 1933 for
resale by the beneficial owners thereof. 
In order to have their Securities included in the registration
statement, beneficial owners must complete and return the enclosed Notice of
Registration Statement and Selling Securityholder Questionnaire.

 

It is important that
beneficial owners of the Securities receive a copy of the enclosed materials as
soon as possible as their rights to have
the Securities included in the registration statement depend upon their
returning the Notice and Questionnaire by [Deadline For Response].  Please forward a copy of the enclosed
documents to each beneficial owner that holds interests in the Securities
through you.  If you require more copies
of the enclosed materials or have any questions pertaining to this matter,
please contact MTR Gaming Group, Inc., State Route 2 South, P.O. Box
356, Chester, West Virginia, 23064, (304) 387-8300.

 

*Not less than 28
calendar days from date of mailing.

 

A-1

 

MTR Gaming Group, Inc.

 

Notice of Registration
Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is hereby made
to the Exchange and Registration Rights Agreement (the “Exchange
and Registration Rights Agreement”) between MTR Gaming Group, Inc.
(the “Company”) and the Initial Purchasers
named therein.  Pursuant to the Exchange
and Registration Rights Agreement, the Company has filed or will file with the
United States Securities and Exchange Commission (the “Commission”)
a registration statement on Form [    ]
(the “Shelf Registration Statement”) for the
registration and resale under Rule 415 of the Securities Act of 1933, as
amended (the “Securities Act”), of the Company’s
12.625% Senior Secured Notes due 2014 (the “Securities”).  A copy of the Exchange and Registration
Rights Agreement has been filed as an exhibit to the Shelf Registration
Statement and can be obtained from the Commission’s website at www.sec.gov.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Exchange and
Registration Rights Agreement.

 

Each beneficial owner of
Registrable Securities (as defined below) is entitled to have the Registrable
Securities beneficially owned by it included in the Shelf Registration
Statement.  In order to have Registrable
Securities included in the Shelf Registration Statement, this Notice of
Registration Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”) must be completed, executed and
delivered to the Company’s counsel at the address set forth herein for receipt
ON OR BEFORE [Deadline for Response].  Beneficial owners of Registrable Securities
who do not properly complete, execute and return this Notice and Questionnaire
by such date (i) will not be named as selling securityholders in the Shelf
Registration Statement and (ii) may not use the Prospectus forming a part
thereof for resales of Registrable Securities.

 

Certain legal
consequences arise from being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus. 
Accordingly, holders and beneficial owners of Registrable Securities are
advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling securityholder in the Shelf
Registration Statement and related Prospectus.

 

The term “Registrable Securities” is defined in the Exchange and
Registration Rights Agreement.

 

A-2

 

ELECTION

 

The undersigned holder
(the “Selling Securityholder”) of Registrable
Securities hereby elects to include in the Shelf Registration Statement the
Registrable Securities beneficially owned by it and listed below in
Item (3).  The undersigned, by
signing and returning this Notice and Questionnaire, agrees to be bound with
respect to such Registrable Securities by the terms and conditions of this
Notice and Questionnaire and the Exchange and Registration Rights Agreement,
including, without limitation, Section 6 of the Exchange and Registration
Rights Agreement, as if the undersigned Selling Securityholder were an original
party thereto.

 

Pursuant to the Exchange
and Registration Rights Agreement, the undersigned has agreed to indemnify and
hold harmless the Company, its officers who sign any Shelf Registration
Statement, and each person, if any, who controls the Company within the meaning
of either Section 15 of the Securities Act or Section 20 of the
Exchange Act of 1934, as amended (the “Exchange Act”),
against certain loses arising out of an untrue statement, or the alleged untrue
statement, of a material fact in the Shelf Registration Statement or the
related prospectus or the omission, or alleged omission, to state a material
fact required to be stated in such Shelf Registration Statement or the related
prospectus, but only to the extent such untrue statement or omission, or
alleged untrue statement or omission, was made in reliance on and in conformity
with the information provided in this Notice and Questionnaire.

 

Upon any sale of
Registrable Securities pursuant to the Shelf Registration Statement, the Selling
Securityholder will be required to deliver to the Company and Trustee the
Notice of Transfer set forth in Appendix A to the Prospectus and as Exhibit B
to the Exchange and Registration Rights Agreement.

 

The Selling
Securityholder hereby provides the following information to the Company and
represents and warrants that such information is accurate and complete:

 

A-3

 

QUESTIONNAIRE

 

(1)   (a)       Full
legal name of Selling Securityholder:

 

 

(b)       Full
legal name of registered Holder (if not the same as in (a) above) of
Registrable Securities listed in Item (3) below:

 

 

(c)       Full
legal name of DTC Participant (if applicable and if not the same as (b) above)
through which Registrable Securities listed in Item (3) below are held:

 

 

(2)   Address
for notices to Selling Securityholder:

 

 

 

Telephone:

Fax:

Contact
Person:

E-mail
for Contact Person:

 

(3)   Beneficial
Ownership of Securities:

 

Except as set forth below in this
Item (3), the undersigned does not beneficially own any Securities.

 

(a)       Principal
amount of Registrable Securities beneficially owned:

            CUSIP
No(s). of such Registrable Securities:

 

(b)       Principal
amount of Securities other than Registrable Securities beneficially owned:

 

            CUSIP
No(s). of such other Securities:

 

(c)       Principal
amount of Registrable Securities that the undersigned wishes to be included in
the Shelf Registration Statement:

            CUSIP
No(s). of such Registrable Securities to be included in the Shelf Registration
Statement:

 

(4)   Beneficial
Ownership of Other Securities of the Company:

 

Except as set forth below in this
Item (4), the undersigned Selling Securityholder is not the beneficial or
registered owner of any other securities of the Company, other than the
Securities listed above in Item (3).

 

State any exceptions
here:

 

 

 

(5)   Individuals
who exercise dispositive powers with respect to the Securities:

 

If the Selling Securityholder is
not an entity that is required to file reports with the Commission pursuant to Section 13
or 15(d) of the Exchange Act (a “Reporting
Company”), then the Selling Securityholder must disclose
the name of the natural person(s) who exercise sole or shared dispositive
powers with respect to the Securities. 
Selling Securityholders should disclose the beneficial holders, not
nominee

 

A-4

 

holders or other such others of
record.  In addition, the Commission has
provided guidance that Rule 13d-3 of the Securities Exchange Act of 1934
should be used by analogy when determining the person or persons sharing voting
and/or dispositive powers with respect to the Securities.

 

(a)       Is
the holder a Reporting Company?

 

Yes             o                                                                 No             o                                                                 

 

If “No”, please answer Item
(5)(b).

 

(b)     List below the individual or individuals who exercise
dispositive powers with respect to the Securities:

 

 

 

Please
note that the names of the persons listed in (b) above will be included in
the Shelf Registration Statement and related Prospectus.

 

(6)   Relationships
with the Company:

 

Except as set forth below,
neither the Selling Securityholder nor any of its affiliates, officers,
directors or principal equity holders (5% or more) has held any position or
office or has had any other material relationship with the Company (or its
predecessors or affiliates) during the past three years.

 

State any exceptions
here:

 

 

 

(7)   Plan
of Distribution:

 

Except as set forth below, the undersigned
Selling Securityholder intends to distribute the Registrable Securities listed
above in Item (3) only as follows (if at all):  Such Registrable Securities may be sold from
time to time directly by the undersigned Selling Securityholder.  Such Registrable Securities may be sold in
one or more transactions at fixed prices, at prevailing market prices at the
time of sale, at varying prices determined at the time of sale, or at
negotiated prices.  Such sales may be
effected in transactions (which may involve crosses or block transactions) (i) on
any national securities exchange or quotation service on which the Registered
Securities may be listed or quoted at the time of sale, (ii) in the
over-the-counter market, (iii) in transactions otherwise than on such
exchanges or services or in the over-the-counter market, or (iv) through
the writing of options.  In connection
with sales of the Registrable Securities or otherwise, the Selling
Securityholder may enter into hedging transactions with broker-dealers, which
may in turn engage in short sales of the Registrable Securities in the course
of hedging the positions they assume. 
The Selling Securityholder may also sell Registrable Securities short
and deliver Registrable Securities to close out such short positions, or loan
or pledge Registrable Securities to broker-dealers that in turn may sell such
securities.

 

State any exceptions
here:

 

 

 

Note:  In no event may such method(s) of
distribution take the form of an underwritten offering of Registrable Securities
without the prior written agreement of the Company.

 

 

A-5

 

(8)   Broker-Dealers:

 

The
Commission requires that all Selling Securityholders that are registered
broker-dealers or affiliates of registered broker-dealers be so identified in
the Shelf Registration Statement.  In
addition, the Commission requires that all Selling Securityholders that are
registered broker-dealers be named as underwriters in the Shelf Registration
Statement and related Prospectus, even if they did not receive the Registrable
Securities as compensation for underwriting activities.

 

(a)       State
whether the undersigned Selling Securityholder is a registered broker-dealer:

 

Yes             o                                                                 No             o                                                                 

 

(b)       If
the answer to (a) is “Yes”, you must answer (i) and (ii) below,
and (iii) below if applicable.  Your answers to (i) and (ii) below, and (iii) below
if applicable, will be included in the Shelf Registration Statement and related
Prospectus.

 

(i)        Were
the Securities acquired as compensation for underwriting activities?

 

Yes             o                                                                 No             o                                                                 

 

If
you answered “Yes”, please provide a brief description of the transaction(s) in
which the Securities were acquired as compensation:

 

 

 

(ii)       Were
the Securities acquired for investment purposes?

 

Yes             o                                                                 No             o                                                                 

 

(iii)      If
you answered “No” to both (i) and (ii), please explain the Selling
Securityholder’s reason for acquiring the Securities:

 

 

 

(c)       State
whether the undersigned Selling Securityholder is an affiliate of a registered
broker-dealer and, if so, list the name(s) of the broker-dealer
affiliate(s):

 

Yes             o                                                                 No             o                                                                 

 

 

 

(d)       If
you answered “Yes” to question (c) above:

 

(i)        Did
the undersigned Selling Securityholder purchase Registrable Securities in the
ordinary course of business?

 

Yes             o                                                                 No             o                                                                 

 

If
the answer is “No” to question (d)(i), provide a brief explanation of the
circumstances in which the Selling Securityholder acquired the Registrable
Securities:

 

 

 

A-6

 

(ii)       At
the time of the purchase of the Registrable Securities, did the undersigned
Selling Securityholder have any agreements, understandings or arrangements,
directly or indirectly, with any person to dispose of or distribute the
Registrable Securities?

 

Yes             o                                                                 No             o                                                                 

 

If
the answer is “Yes” to question (d)(ii), provide a brief explanation of such
agreements, understandings or arrangements:

 

 

 

If the answer is
“No” to Item (8)(d)(i) or “Yes” to Item (8)(d)(ii), you will be named as
an underwriter in the Shelf Registration Statement and the related Prospectus.

 

(9)   Hedging
and short sales:

 

(a)       State
whether the undersigned Selling Securityholder has or will enter into “hedging
transactions” with respect to the Registrable Securities:

 

Yes             o                                                                 No             o                                                                 

 

If
“Yes”, provide below a complete description of the hedging transactions into
which the undersigned Selling Securityholder has entered or will enter and the
purpose of such hedging transactions, including the extent to which such
hedging transactions remain in place:

 

 

 

(b)       Set
forth below is Interpretation A.65 of the Commission’s July 1997 Manual of
Publicly Available Interpretations regarding short selling:

 

“An issuer filed a Form S-3 registration
statement for a secondary offering of common stock which is not yet
effective.  One of the selling
shareholders wanted to do a short sale of common stock “against the box” and
cover the short sale with registered shares after the effective date.  The issuer was advised that the short sale
could not be made before the registration statement becomes effective, because
the shares underlying the short sale are deemed to be sold at the time such
sale is made.  There would, therefore, be
a violation of Section 5 if the shares were effectively sold prior to the
effective date.”

 

By returning this Notice
and Questionnaire, the undersigned Selling Securityholder will be deemed to be
aware of the foregoing interpretation.

 

*              *              *              *              *

 

By signing below, the
Selling Securityholder acknowledges that it understands its obligation to
comply, and agrees that it will comply, with the provisions of the Exchange
Act, particularly Regulation M (or any successor rule or regulation).

 

The Selling
Securityholder hereby acknowledges its obligations under the Exchange and
Registration Rights Agreement to indemnify and hold harmless the Company and
certain other persons as set forth in the Exchange and Registration Rights
Agreement.

 

In the event that the
Selling Securityholder transfers all or any portion of the Registrable
Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

 

A-7

 

By signing below, the
Selling Securityholder consents to the disclosure of the information contained
herein in its answers to Items (1) through (9) above and the
inclusion of such information in the Shelf Registration Statement and related
Prospectus.  The Selling Securityholder
understands that such information will be relied upon by the Company in
connection with the preparation of the Shelf Registration Statement and related
Prospectus.

 

In accordance with the
Selling Securityholder’s obligation under Section 3(d) of the
Exchange and Registration Rights Agreement to provide such information as may
be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein which may occur
subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect and to provide such additional information that the
Company may reasonably request regarding such Selling Securityholder and the
intended method of distribution of Registrable Securities in order to comply
with the Securities Act.  Except as
otherwise provided in the Exchange and Registration Rights Agreement, all
notices hereunder and pursuant to the Exchange and Registration Rights
Agreement shall be made in writing, by hand-delivery, first-class mail, or air
courier guaranteeing overnight delivery as follows:

 

(i)    To the Company:

 

MTR Gaming Group, Inc.

State Route 2 South

P.O. Box 356

Chester, West Virginia 23064

 

(ii)   With a copy to:

 

Milbank, Tweed, Hadley & McCloy LLP

601 S. Figueroa Street, Suite 3000

Los Angeles, California 90017

 

Ruben & Aronson, LLP

4800 Montgomery Lane, Suite 150

Bethesda, Maryland 20814

 

Once this Notice and
Questionnaire is executed by the Selling Securityholder and received by the
Company’s counsel, the terms of this Notice and Questionnaire, and the
representations and warranties contained herein, shall be binding on, shall
inure to the benefit of and shall be enforceable by the respective successors,
heirs, personal representatives, and assigns of the Company and the Selling
Securityholder (with respect to the Registrable Securities beneficially owned
by such Selling Securityholder and listed in Item (3) above.  This Notice and Questionnaire shall be
governed in all respects by the laws of the State of New York.

 

A-8

 

IN WITNESS WHEREOF, the
undersigned, by authority duly given, has caused this Notice and Questionnaire
to be executed and delivered either in person or by its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  

 

 

	
   

  	
   

  
	
   

  	
  Selling Securityholder

  
	
   

  	
  (Print/type full legal
  name of beneficial owner of Registrable Securities)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

PLEASE RETURN THE
COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT:

 

 

 

 

A-9

 

Exhibit B

 

NOTICE OF TRANSFER
PURSUANT TO REGISTRATION STATEMENT

 

Wilmington Trust FSB

MTR Gaming Group, Inc.

c/o Wilmington Trust FSB

591 Broadway, Suite 2-A

New York, NY 10012-3249

Attention:  Trust Officer

 

Re:          MTR
Gaming Group, Inc. (the “Company”)

12.625%
Senior Secured Notes due 2014

 

Dear Sirs:

 

Please be advised that                                                      has
transferred $                                                      aggregate
principal amount of the above-referenced Notes pursuant to an effective
Registration Statement on Form [       ]
(File No. 333-       )
filed by the Company.

 

We hereby certify that
the prospectus delivery requirements, if any, of the Securities Act of 1933, as
amended, have been satisfied and that the above-named beneficial owner of the
Notes is named as a “Selling Holder” in the Prospectus dated [date] or in supplements thereto, and that the aggregate
principal amount of the Notes transferred are the Notes listed in such
Prospectus opposite such owner’s name.

 

Dated:

 

	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  (Authorized Signature)

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