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                                                                   EXHIBIT 10.2

                                PLEDGE AGREEMENT
                                ----------------

            THIS PLEDGE AGREEMENT (this "AGREEMENT"), dated as of July 26, 2004,
is made by EMPIRE RESORTS,  INC., a Delaware  corporation (the  "COMPANY"),  and
each of its Subsidiaries (such capitalized term and other capitalized terms used
but not defined herein having the meanings  respectively ascribed thereto in the
Security  Agreement  (as defined  below)) now or  hereafter  party  hereto (such
Subsidiaries,  together with Company, each, a "PLEDGOR" and,  collectively,  the
"PLEDGORS"),  in  favor of THE BANK OF NEW YORK  ("BNY"),  as  collateral  agent
(together with its  successor(s)  thereto in such  capacity,  "PLEDGEE") for the
Trustee and Holders, in light of the following:

                                    RECITALS:

            A. The Company and the other  Pledgors and BNY, as collateral  agent
and as trustee,  have entered into an  Indenture,  dated as of July 26, 2004 (as
amended,  restated,  supplemented  or otherwise  modified from time to time, the
"INDENTURE"), pursuant to which the Company has issued $65,000,000 of its 5 1/2%
Convertible Senior Notes due 2014 (and,  together with any additional notes that
may be issued by the Company from time to time thereunder or exchanged  therefor
or for  such  additional  notes,  the  "NOTES")  and  the  other  Pledgors  have
guaranteed  the  payment of the Notes and the other  Obligations  of the Company
thereunder.

            B. The  Pledgors  and the Pledgee  have  entered  into that  certain
Security  Agreement,   dated  as  of  July  26,  2004  (as  amended,   restated,
supplemented or otherwise modified from time to time, the "SECURITY AGREEMENT"),
pursuant to which the  Pledgors  have granted  security  interests in certain of
their assets (including the Collateral) as more fully described therein.

            C. One or more of the  Pledgors may after the date hereof enter into
the Credit Agreement.

            D. If the Credit Agreement is entered into, the Pledgors and lenders
under the Credit  Agreement  or their  agent may enter  into one or more  pledge
agreements (as amended, restated,  supplemented,  replaced or otherwise modified
from time to time, the "CREDIT AGREEMENT PLEDGE  AGREEMENT"),  pursuant to which
the Pledgors  will grant a security  interest in the  Collateral in favor of the
lenders under the Credit Agreement or their agent.

            E. If the Credit  Agreement  Pledge  Agreement is entered into,  the
Pledgee,  the lenders under the Credit Agreement or their agent and the Pledgors
may enter into an intercreditor agreement substantially in the form of Exhibit E
to the  Indenture  (as amended,  restated,  supplemented,  replaced or otherwise
modified from time to time, collectively,  the "INTERCREDITOR AGREEMENT"), which
agreement,  among other things,  will set forth,  as between the Pledgee and the
lenders  under the Credit  Agreement  or their agent,  the relative  priority of
their respective Liens in the Collateral and their rights with respect thereto.

            F. The Company  desires to secure its  Obligations  under the Notes,
the Indenture and each other  Indenture  Document to which it is or may become a
party and each other Pledgor desires to secure its Guarantee,  the Indenture and
each other  Indenture  Document to which it is or may become a party by granting

to the  Pledgee,  for the  benefit  of  itself  and the other  Secured  Parties,
security interests in the Collateral as set forth herein.

            G. To induce the  Initial  Purchaser  to  purchase  the Notes,  each
Holder  to hold the Notes to be held by it and BNY to act in its  capacities  as
trustee and collateral agent, each Pledgor desires to pledge,  grant,  transfer,
and assign to the  Pledgee,  for the  benefit  of itself  and the other  Secured
Parties,  a security  interest in the Collateral to secure the  Obligations,  as
provided herein.

            NOW,  THEREFORE,  in  consideration of the premises set forth above,
the  terms  and  conditions   contained  herein  and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
each  intending  to be bound  hereby,  the  Pledgee  and each  Pledgor  agree as
follows:

            1. SECURITY FOR  OBLIGATIONS.  This  Agreement is for the benefit of
the  Pledgee  and the other  Secured  Parties to secure the prompt and  complete
payment and performance when due of any and all of the Obligations.

            2. DEFINITION OF ISSUERS; CAPITAL STOCK; PLEDGED INTERESTS;  PLEDGED
COLLATERAL.  As used herein,  (A) the term "ISSUERS" shall mean, with respect to
each  Pledgor,  each of the Persons  identified as an Issuer on ANNEX A attached
hereto  of such  Pledgor  (or  any  addendum  or  supplement  thereto),  and any
successors  thereto,  whether  by merger  or  otherwise;  (B) the term  "PLEDGED
INTEREST"  means,  with respect to each Issuer,  the Capital Stock identified as
Pledged  Interests of such Issuer on ANNEX A attached hereto of the Pledgor that
is a holder of the Capital  Stock of such Issuer (or any addendum or  supplement
thereto);  and (C) the term "PLEDGED  COLLATERAL" means the "Pledged  Interests"
and the  "Future  Rights" as defined in and  acquired  pursuant  to SECTION  3.2
below,  collectively.  ANNEX A of any Pledgor may be  supplemented  from time to
time pursuant to SECTION 3.2 below; PROVIDED, HOWEVER, that "Pledged Collateral"
shall not  include any of the  Excluded  Assets.  Each  Pledgor  represents  and
warrants to the  Pledgee  for the  benefit of the Pledgee and the other  Secured
Parties  that on the date  hereof  (a) ANNEX A attached  hereto of such  Pledgor
correctly  identifies the Pledged Interests and the Pledged  Collateral owned by
such  Pledgor  with  respect to Issuers;  and (b) such  Pledgor is the holder of
record and sole beneficial and legal owner of such Pledged Interests and Pledged
Collateral.

            3. PLEDGE OF PLEDGED COLLATERAL AND OTHER COLLATERAL.

            3.1 PLEDGE.  (i) To secure the  Obligations and for the purposes set
forth in SECTION 1 hereof, each Pledgor hereby pledges and collaterally assigns,
and  grants a  security  interest  in and lien on, in favor of  Pledgee  for the
benefit of the  Pledgee and the other  Secured  Parties,  all of such  Pledgor's
right, title and interest in, to, and under (A) the Pledged Collateral,  (B) any
additional Pledged Collateral acquired pursuant to SECTION 3.2 below (whether by
purchase, dividend, merger,  consolidation,  sale of assets, split, spin-off, or

                                      -2-

any  other  dividend  or  distribution  of  any  kind  or  otherwise),  (C)  all
distributions,  dividends, cash, certificates, liquidation rights and interests,
options,  rights,  warrants,  instruments  or other  property  from time to time
received,  receivable or otherwise  distributed  in respect of or in exchange or
substitution for any and all of the Pledged Collateral, (D) such Pledgor's right
to vote the Pledged Collateral, and (E) all proceeds, products, replacements and
substitutions  for any of the  foregoing,  in each  case  whether  now  owned or
hereafter   acquired  by  such   Pledgor   (collectively,   the   "COLLATERAL").
Notwithstanding  the  foregoing,  "Collateral"  shall  not  include  any  of the
Excluded Assets.

            (ii) If the Pledged  Collateral is evidenced by  certificates,  then
such Pledgor  shall  concurrently  herewith  deposit  with the Pledgee,  for the
benefit of itself and the other Secured Parties, the Pledged Collateral owned by
such Pledgor on the date hereof and the  certificates  representing  the Pledged
Collateral  endorsed in blank by such Pledgor or  accompanied  by undated  stock
powers or instruments of transfer,  in each case, duly executed in blank by such
Pledgor;  PROVIDED,  HOWEVER,  that  such  Pledgor  need  not  comply  with  its
obligations  under this clause (ii) prior to the tenth day  following  the Issue
Date.

            (iii)  Whether  or  not  the  Pledged  Collateral  is  evidenced  by
certificates,  such Pledgor shall, and hereby  authorizes the Pledgee to, file a
Code  Financing  Statement  naming  such  Pledgor as debtor  and the  Pledgee as
secured party with respect to the Collateral in the applicable filing office and
in such form and  containing  such  substance as may be necessary to perfect the
security  interest of the Pledgee in the Pledged  Collateral  by the filing of a
Code Financing Statement;  PROVIDED,  HOWEVER,  that no such authorization shall
obligate  the Pledgee to make any such filing.  Notwithstanding  anything to the
contrary contained in this Agreement,  the Pledgee shall not as a result of this
Agreement be  responsible  or liable for any  obligations or liabilities of such
Pledgor  in such  Pledgor's  capacity  as a holder of any  Capital  Stock of any
Issuer,  and  the  Pledgee  shall  not be  deemed  to have  assumed  any of such
obligations or liabilities.

            3.2 SUBSEQUENTLY ACQUIRED PLEDGED COLLATERAL.  (i) If at any time or
from time to time after the date hereof during the term of this  Agreement,  any
Pledgor shall acquire any additional  Pledged  Interests,  including any further
stock,  or  equity  in each  Issuer  (whether  by  purchase,  dividend,  merger,
consolidation,  sale of  assets,  split,  spin-off,  or any  other  dividend  or
distribution of any kind or otherwise) (collectively, the "FUTURE RIGHTS").

            (ii) Such Pledgor will forthwith pledge and, if applicable,  deposit
such additional Pledged  Collateral with the Pledgee,  for the benefit of itself
and the other  Secured  Parties  and  deliver to the  Pledgee for the benefit of
itself and the other Secured  Parties,  certificates  or  instruments  therefor,
endorsed in blank by such  Pledgor or  accompanied  by undated  stock  powers or
instruments of transfer,  in each case,  duly executed in blank by such Pledgor,
and will promptly  thereafter deliver to the Pledgee,  for the benefit of itself
and the  other  Secured  Parties,  a  certificate  (which  shall  be  deemed  to
supplement  ANNEX A attached  hereto of such  Pledgor)  executed by such Pledgor
describing such Pledged  Collateral and the other Pledged  Collateral pledged to
the  Pledgee,  and  certifying  that the same have been  duly  pledged  with the
Pledgee hereunder.

                                       3

            (iii) Whether or not such additional Pledged Collateral is evidenced
by certificates,  such Pledgor shall, and hereby authorizes the Pledgee to, file
a Code  Financing  Statement  naming  such  Pledgor as debtor and the Pledgee as
secured party with respect to the additional Collateral in the applicable filing
office and in such form and  containing  such  substance  as may be necessary to
perfect the security interest of the Pledgee in the additional Collateral by the
filing  of  a  Code  Financing  Statement;   PROVIDED,  HOWEVER,  that  no  such
authorization shall obligate the Pledgee to make any such filing.

            3.3  UNCERTIFICATED  PLEDGED  COLLATERAL.  In  addition  to anything
contained in SECTIONS 3.1 AND 3.2 hereof, if any Pledged Collateral (whether now
owned or hereafter  acquired) is not  certificated or becomes an  uncertificated
security,  the applicable  Pledgor shall promptly notify the Pledgee thereof and
shall promptly take all actions required to perfect or improve the perfection of
the security  interest and pledge in favor of the Pledgee under  applicable  law
(including,  in any  event,  any  action  required  or  appropriate  under  this
Agreement or the Code).  Such Pledgor further agrees to take such actions as may
be  necessary  to permit the Pledgee to exercise  any of its rights and remedies
hereunder.

            4. VOTING,  ETC. Until the occurrence and continuance of an Event of
Default,  each  Pledgor  shall be  entitled  to vote any and all of the  Pledged
Collateral; PROVIDED, HOWEVER, that no vote shall be cast or any action taken by
such Pledgor with respect to any Pledged  Collateral  which would  violate or be
materially inconsistent with any of the terms of this Agreement,  the Indenture,
any other  Indenture  Document,  or which  would have the  effect of  materially
impairing  the position or interests of the Pledgee or which would  authorize or
effect  actions  prohibited  under the terms of the  Indenture or any  Indenture
Document.  All such rights of such Pledgor to vote any Pledged  Collateral shall
cease upon the occurrence and during the continuance of an Event of Default,  if
the Pledgee so directs and provides  notice to such Pledgor to do so;  PROVIDED,
HOWEVER,  that upon the cure or waiver of such Event of  Default,  all rights of
the Pledgee to vote any and all of the Pledged Collateral shall cease.

            5.  PAYMENTS  AND  OTHER  DISTRIBUTIONS.  Until the  occurrence  and
continuance of an Event of Default, all cash, dividends or distributions payable
in respect of the  Pledged  Collateral  (to the extent  such  payments  shall be
permitted  pursuant to the terms and provisions of the Indenture)  shall be paid
to the applicable Pledgor; PROVIDED, HOWEVER, upon the occurrence and during the
continuance of an Event of Default, all cash, dividends or distributions payable
in respect of the  Pledged  Collateral  shall be paid to the Pledgee as security
for the  Obligations  if the  Pledgee so  directs  and  provides  notice to such
Pledgor to that effect;  PROVIDED FURTHER,  that upon the cure or waiver of such
Event of Default, all cash dividends or distributions  payable in respect of the
Pledged Collateral shall be paid to such Pledgor.  The Pledgee shall be entitled
to receive directly, and to retain as part of the Collateral:

                        (a) all other or  additional  securities  or  investment
            property,  or  rights  to  subscribe  for  or  purchase  any  of the
            foregoing,  or property (other than cash) paid or distributed by way
            of dividend in respect of the Pledged Collateral; and

                                      -4-

                        (b)  all  other  or  additional  securities,  investment
            property or property (including cash) paid or distributed in respect
            of the  Pledged  Collateral  by way of  split,  spin-off,  split-up,
            reclassification, combination of shares or similar rearrangement.

            If at any  time any  Pledgor  shall  obtain  or  possess  any of the
foregoing Collateral described in this Section,  such Pledgor shall be deemed to
hold such Collateral in trust for the Pledgee for the benefit of the Pledgee and
the other Secured Parties, and such Pledgor shall promptly surrender and deliver
such Collateral to the Pledgee.

            6. REMEDIES IN CASE OF AN EVENT OF DEFAULT.  Upon the occurrence and
during the continuance of an Event of Default,  the Pledgee shall be entitled to
exercise all of the rights,  powers and remedies  (whether  vested in it by this
Agreement, the Indenture, any other Indenture Documents,  and/or in equity or by
law, and  including,  without  limitation,  all rights and remedies of a secured
party of a debtor in default under the Code) for the protection and  enforcement
of its rights in respect of the Pledged  Collateral,  and to the fullest  extent
permitted by  applicable  law, the Pledgee  shall be entitled  (but shall not be
obligated),  without  limitation,  to exercise the following rights,  which each
Pledgor hereby agrees to be commercially reasonable:

                        (a) to receive  all amounts  payable to such  Pledgor in
            respect of the  Pledged  Collateral  in  accordance  with  SECTION 5
            hereof;

                        (b)  to  transfer   all  or  any  part  of  the  Pledged
            Collateral  into the  Pledgee's  name or the name of its  nominee or
            nominees  for the  benefit  of the  Pledgee  and the  other  Secured
            Parties;

                        (c) to vote  all or any part of the  Pledged  Collateral
            and  otherwise  act  with  respect  thereto  as  though  it were the
            outright owner thereof in accordance with SECTION 4 hereof;

                        (d) at any time or from time to time to sell, assign and
            deliver,  or  grant  options  to  purchase,  all or any  part of the
            Pledged Collateral in one or more parcels,  or any interest therein,
            at any public or private sale at any exchange,  broker's board or at
            any of  the  Pledgee's  offices  or  elsewhere,  without  demand  of
            performance, advertisement or notice of intention to sell or of time
            or place of sale or adjournment  thereof or to redeem (all of which,
            except as may be required by mandatory provisions of applicable law,
            are hereby  expressly  and  irrevocably  waived by such Pledgor) for
            cash,  on credit  or for other  property,  for  immediate  or future
            delivery  without any  assumption of credit risk, and for such price
            or  prices  and on such  terms as the  Pledgee  in its  commercially
            reasonable  judgment may determine.  Such Pledgor agrees that to the
            extent  that  notice of sale shall be  required by law that at least
            ten (10)  calendar  days'  notice to such Pledgor of the time (which
            shall be during normal  business hours) and place of any public sale
            or the  time  after  which  any  private  sale is to be  made  shall
            constitute  reasonable  notification.   The  Pledgee  shall  not  be
            obligated  to make  any sale of  Pledged  Collateral  regardless  of
            notice of sale having been given. The Pledgee may adjourn any public
            or private  sale from time to time by  announcement  at the time and
            place fixed therefor, and any such sale may, without further notice,

                                      -5-

            be made at the time and  place  to which it was so  adjourned.  Such
            Pledgor hereby waives and releases to the fullest  extent  permitted
            by law any right or equity of redemption with respect to the Pledged
            Collateral,  whether before or after sale hereunder, and all rights,
            if any of marshalling the Pledged  Collateral and any other security
            for  the  Obligations  or  otherwise.   At  any  such  sale,  unless
            prohibited by  applicable  law, the Pledgee may bid for and purchase
            all or any part of the Pledged Collateral so sold free from any such
            right or equity of  redemption.  Neither  the Pledgee nor any of the
            other  Secured  Parties  shall be liable  for  failure to collect or
            realize upon any or all of the Pledged  Collateral  or for any delay
            in so doing  nor  shall the  Pledgee  nor any of the  other  Secured
            Parties be under any obligation to take any action  whatsoever  with
            regard thereto;

                        (e)  to  settle,  adjust,  compromise  and  arrange  all
            accounts, controversies, questions, claims and demands whatsoever in
            relation to all or any part of the Pledged Collateral;

                        (f) in respect of the Pledged Collateral, to execute all
            such contracts,  agreements,  deeds,  documents and instruments,  to
            bring,  defend and abandon all such actions,  suits and proceedings,
            and to  take  all  actions  in  relation  to all or any  part of the
            Pledged  Collateral as the Pledgee in its reasonable  discretion may
            determine;

                        (g)  to  appoint  managers,  sub-agents,   officers  and
            servants  for  any  of  the  purposes  mentioned  in  the  foregoing
            provisions  of this  Section  and to  dismiss  the same,  all as the
            Pledgee in its reasonable discretion may determine; and

                        (h)  generally,  to take all such  other  action  as the
            Pledgee in its reasonable  discretion may determine as incidental or
            conducive to any of the matters or powers mentioned in the foregoing
            provisions  of this  Section  and  which the  Pledgee  may or can do
            lawfully  and to use  the  name  of such  Pledgor  for the  purposes
            aforesaid and in any proceedings arising therefrom.

            7. REMEDIES,  ETC., CUMULATIVE.  Each right, power and remedy of the
Pledgee (for the benefit of the Pledgee and the other Secured Parties)  provided
for in this  Agreement,  the  Indenture,  any  Indenture  Document  or any other
security agreement, mortgage, guaranty or now or hereafter existing at law or in
equity or by statute shall be cumulative and concurrent and shall be in addition
to every other such right,  power or remedy.  The  exercise or  beginning of the
exercise  by the Pledgee  (for the benefit of the Pledgee and the other  Secured
Parties) of any one or more of the rights,  powers or remedies  provided  for in
this  Agreement,  the  Indenture,  or any  other  Indenture  Document  or now or
hereafter  existing  at law or in equity or by  statute or  otherwise  shall not
preclude  the  simultaneous  or later  exercise by the Pledgee of all such other
rights,  powers or remedies,  and no failure or delay on the part of the Pledgee
to exercise any such right, power or remedy shall operate as a waiver thereof.

            8. APPLICATION OF PROCEEDS. Subject to any mandatory requirements of
applicable  law and the terms of the  Indenture,  all  moneys  collected  by the
Pledgee (for the benefit of the Pledgee and the other Secured Parties) upon sale

                                      -6-

or other disposition of the Collateral,  together with all other moneys received
by the Pledgee  hereunder,  shall be turned over to the Trustee for distribution
in accordance with Section 6.10 of the Indenture.

            9. INDEMNITY.  Without  duplication of any amounts payable under any
other  similar  indemnity  provision  set  forth in the  Indenture  or any other
Indenture  Documents,  each Pledgor shall,  jointly and  severally:  (i) pay all
out-of-pocket  costs and expenses of the Pledgee incurred in connection with the
administration  of and in connection with the  preservation of rights under, and
enforcement of, and any renegotiation or restructuring of this Agreement and any
amendment,  waiver or consent relating thereto  (including,  without limitation,
the reasonable fees and disbursements of counsel for the Pledgee);  (ii) pay and
hold the Pledgee and the other Secured Parties harmless from and against any and
all  present  and  future  stamp or  documentary  taxes or any  other  excise or
property  taxes,  charges or similar  levies  which arise from any payment  made
hereunder or from the execution,  delivery or registration of, or otherwise with
respect to this  Agreement  and save the Pledgee and the other  Secured  Parties
harmless from and against any and all  liabilities  with respect to or resulting
from any delay or omission to pay any such taxes,  charges or levies;  and (iii)
indemnify the Pledgee and each of the other Secured  Parties,  and each of their
respective officers,  directors,  shareholders,  employees,  representatives and
agents from and hold each of them  harmless  against any and all costs,  losses,
liabilities,  claims,  obligations,  suits,  penalties,  judgments,  damages  or
expenses incurred by or asserted against any of them (whether or not any of them
is designated a party thereto)  arising out of or by reason of this Agreement or
any  transaction  contemplated  hereby  (including,   without  limitation,   any
investigation,  litigation  or  other  proceeding  related  to this  Agreement),
including,  without limitation, the reasonable fees and disbursements of counsel
incurred  in  connection  with  any  such  investigation,  litigation  or  other
proceeding.  Notwithstanding  anything in this  Agreement to the contrary,  such
Pledgor shall not be  responsible  to the Pledgee or any other Secured Party for
any costs, losses, damages,  liabilities or expenses which result from the gross
negligence  or  willful  misconduct  on the part of such  Pledgee  or any  other
Secured Party.  Each Pledgor's  obligations under this Section shall survive any
termination of this Agreement.

            10.  FURTHER  ASSURANCES.  Each Pledgor agrees that, at any time and
from time to time,  such Pledgor will join with the Pledgee in executing and, at
such  Pledgor's own expense,  will file and refile under the Code such financing
statements,  continuation  statements and other documents in such offices as may
be necessary  and wherever  required or permitted by law in order to perfect and
preserve  the  Pledgee's  security  interest  in  the  Collateral,   and  hereby
authorizes  the Pledgee to file  financing  statements  and  amendments  thereto
relative to all or any part of the Collateral  (PROVIDED,  HOWEVER, that no such
authorization shall obligate the Pledgee to make any such filing), and agrees to
do such  further  acts and things and to  promptly  execute  and  deliver to the
Pledgee such additional conveyances,  assignments, agreements and instruments as
may be required to carry into effect the purpose of this Agreement or to further
assure and confirm unto the Pledgee its rights, powers and remedies hereunder.

            11.  REASONABLE  CARE BY PLEDGEE.  Beyond the exercise of reasonable
care in the custody thereof, the Pledgee shall have no duty as to any Collateral
in its  possession  or control or in the  possession  or control of any agent or

                                      -7-

bailee or any income thereon or as to the  preservation  of rights against prior
parties or any other  rights  pertaining  thereto and the  Pledgee  shall not be
responsible for filing any financing or continuation statements or recording any
documents or  instruments in any public office at any time or times or otherwise
perfecting  or  maintaining  the  perfection  of any  security  interest  in the
Collateral. The Pledgee shall be deemed to have exercised reasonable care in the
custody of the  Collateral  in its  possession  if the  Collateral  is  accorded
treatment  substantially  equal to that which it accords  its own  property  and
shall not be liable or  responsible  for any loss or  diminution in the value of
any of the  Collateral,  by  reason  of the  act  or  omission  of any  carrier,
forwarding  agency or other  agent or bailee  selected  by the  Pledgee  in good
faith.

            The Pledgee shall not be responsible for the existence,  genuineness
or value of any of the Collateral or for the validity,  perfection,  priority or
enforceability  of the  Liens  in any of the  Collateral,  whether  impaired  by
operation  of law or by reason of any of any  action or  omission  to act on its
part hereunder,  except to the extent such action or omission  constitutes gross
negligence or willful misconduct on the part of the Pledgee, for the validity or
sufficiency of the Collateral or any agreement or assignment  contained therein,
for the validity of the title of the Pledgor to the Collateral, for insuring the
Collateral or for the payment of taxes,  charges,  assessments or Liens upon the
Collateral or otherwise as to the  maintenance  of the  Collateral.  The Pledgee
shall have no duty to ascertain or inquire as to the  performance  or observance
of any of the terms of this Pledge  Agreement or the Indenture  Documents by the
Pledgors.

            12.  TRANSFER BY EACH PLEDGOR.  Except as otherwise  permitted under
the  Indenture,  if at all,  the Pledgor  shall not Dispose of, grant any option
with respect to, or pledge or otherwise  encumber any of the  Collateral  or any
interest therein.

            13.  REPRESENTATIONS  AND  WARRANTIES OF EACH PLEDGOR.  Each Pledgor
hereby represents and warrants to the Pledgee for the benefit of the Pledgee and
the other Secured Parties,  which  representations  and warranties shall survive
the execution and delivery of this Agreement, as follows:

            13.1 VALIDITY,  PERFECTION AND PRIORITY. (a) The pledge and security
interests in the Pledged  Collateral granted to the Pledgee constitute valid and
continuing security interests in the Pledged Collateral.

            (b) The security  interests in the Collateral granted to the Pledgee
for the benefit of itself and the other  Secured  Parties  constitute  valid and
perfected  security interests therein superior and prior to the rights or claims
of any other person or entity therein.

            13.2 NO LIENS; OTHER FINANCING STATEMENTS.

            (a) Such Pledgor is the sole legal and beneficial  owner of, and has
good and marketable title to, the Pledged Collateral.

                                      -8-

            (b)  Except  for any  filing  made by the  lenders  under the Credit
Agreement or their  agent,  no  financing  statement  or other  evidence of lien
covering or purporting to cover any of the Pledged  Collateral is on file in any
public office.

            13.3 PLEDGED COLLATERAL.

            (a) The Pledged  Collateral  described in ANNEX A attached hereto of
such Pledgor is, and all other  Pledged  Collateral  in which such Pledgor shall
hereafter  grant a lien or security  interest  pursuant to SECTION 2 hereof will
be, duly authorized,  validly issued, and fully paid, and, except for the pledge
provided in SECTION  3.1 hereof in favor of Pledgee and in the Credit  Agreement
Pledge  Agreement  in favor of the lenders  under the Credit  Agreement or their
agent,  none of such  Pledged  Collateral  is or will be subject to any legal or
contractual  restriction.  The Pledged Collateral is, as of the date hereof, and
shall  be at all  times  hereafter  during  the term of this  Agreement,  freely
transferable  without  restriction or limitation (except as limited by the terms
of this Agreement).

            (b) The  Pledged  Collateral  described  in ANNEX A  hereto  of such
Pledgor constitutes all of the issued and outstanding  securities and investment
property legally and beneficially owned by such Pledgor on the date hereof in or
relating to each of the Issuers.

            13.4 POWER AND  AUTHORITY.  Such Pledgor has the power and authority
to pledge and collaterally assign all of the Pledged Collateral pursuant to this
Agreement.

            13.5 ARTICLE 8 SECURITIES.  The Pledged  Interests  that are Capital
Stock  in  general  partnerships,  limited  partnerships  or  limited  liability
companies  (i)  are  not  dealt  in or  traded  on  securities  exchanges  or in
securities  markets,  (ii) do not have terms  expressly  providing that they are
securities  governed  by  Article  8 of the Code,  and (iii) are not  investment
company securities,  and are not, therefore,  "securities" governed by Article 8
of the Code.

            13.6 LITIGATION.  There are no actions, suits or proceedings pending
or, to such  Pledgor's  best  knowledge,  threatened  against or involving  such
Pledgor before any court with respect to any of the transactions contemplated by
this Agreement or the ability of such Pledgor to perform any of the  obligations
of such Pledgor hereunder.

            13.7 STATE OF ORGANIZATION.  Such Pledgor's state of organization is
specified on ANNEX A of such Pledgor.

            13.8  CONTINUED   EXISTENCE.   Upon  any  transfer  of  the  Pledged
Collateral  to any  Person as  permitted  upon the  occurrence  and  during  the
continuance of an Event of Default in accordance with SECTION 6 hereof,  each of
the Issuers shall continue in existence.

            13.9 Neither the pledge of the Pledged  Collateral  pursuant to this
Agreement nor the extensions of credit  represented by the Obligations  violates
Regulation T, U or X of the Board of Governors of the Federal Reserve System.

                                      -9-

            13.10 Each direct  Subsidiary  of such Pledgor  (other than any such
Subsidiary that is an Immaterial  Subsidiary) is an Issuer of Pledged  Interests
that have been pledged hereunder.

            14.  COVENANTS OF EACH  PLEDGOR.  Each Pledgor  covenants and agrees
with  the  Pledgee  that on and  after  the date  hereof  and  until  all of the
Obligations  shall have been paid and  performed in full (other than  contingent
indemnification obligations) or the Collateral Release Event shall have occurred
and this Agreement terminates in accordance with its terms:

            14.1  COLLATERAL.   (a)  Such  Pledgor  will  use  its  commercially
reasonable efforts to defend the Pledgee's right, title and security interest in
and to the Collateral against the claims and demands of all Persons  whomsoever;
(b) such Pledgor will have good and marketable  title to and right to pledge any
other property at any time hereafter  constituting  Collateral and will likewise
use its commercially reasonable efforts to defend the right thereto and security
interest therein of the Pledgee;  and (c) such Pledgor will not, with respect to
any Pledged  Collateral,  enter into any  shareholder  type  agreements,  voting
agreements, voting trusts, trust deeds, irrevocable proxies or any other similar
agreements or instruments,  other than any shareholder type  agreements,  voting
agreements, voting trusts, trust deeds, irrevocable proxies or any other similar
agreements or instruments  which would not (x) be inconsistent with the terms of
this Agreement,  (y) materially and adversely  affect the Pledgee's  interest in
any of the Pledged Collateral or (z) have a Material Adverse Effect.

            14.2 RIGHT OF INSPECTION.  The Pledgee and its representatives shall
have  access  to all the  books,  correspondence  and  records  of such  Pledgor
relating to the Collateral,  if any, and the Pledgee and its representatives may
examine the same, take extracts therefrom and make photocopies thereof.

            14.3  COMPLIANCE  WITH  LAWS.  Such  Pledgor  will  comply  with all
requirements  of law  applicable to the Pledged  Collateral or any part thereof,
except  where the failure to comply could not  reasonably  be expected to have a
Material Adverse Effect.

            14.4 NO IMPAIRMENT. Such Pledgor will not take or permit to be taken
any action which could  materially  impair the  Pledgee's  rights in the Pledged
Collateral. Such Pledgor will not create, incur or permit to exist, will use its
commercially  reasonable  efforts to defend the Pledged  Collateral  against and
will take such other action as is  necessary to remove,  any lien or claim on or
to the  Pledged  Collateral,  other than the liens  created  hereby and liens in
favor of the lenders under the Credit Agreement or their agent, and will use its
commercially  reasonable  efforts to defend the right, title and interest of the
Pledgee in and to any of the Pledged  Collateral  against the claims and demands
of all Persons whomsoever.

            14.5 PERFORMANCE BY PLEDGEE OF SUCH PLEDGOR'S  OBLIGATIONS.  If such
Pledgor fails to perform or comply with any of the agreements  contained herein,
the Pledgee may, upon the occurrence  and during the  continuance of an Event of
Default,  without  notice to or  consent by such  Pledgor,  perform or comply or
cause performance or compliance therewith;  PROVIDED, HOWEVER, the Pledgee shall
not be under any obligation to take any such action.

                                      -10-

            14.6 FURTHER IDENTIFICATION OF PLEDGED COLLATERAL. Such Pledgor will
furnish to the Pledgee  from time to time such  reports in  connection  with the
Pledged Collateral as the Pledgee may reasonably request from time to time.

            14.7  CONTINUOUS  PERFECTION.  No  Pledgor  will  change  its  name,
organizational  identification  number,  state of organization or organizational
identity  unless such Pledgor  shall within ten Business Days of any such change
provide  written  notice to the  Pledgee of such  change and file any  financing
statements or  amendments  thereto  necessary to continue the  perfection of the
Liens of the Pledgee on the Collateral.

            14.8  STAY OR  EXTENSION  LAWS.  Such  Pledgor  will not at any time
claim,  take,  insist upon or invoke the benefit or advantage of or from any law
now or hereafter in force  providing  for the valuation or  appraisement  of the
Pledged Collateral prior to any sale or sales thereof to be made pursuant to the
provisions hereof or pursuant to the decree,  judgment, or order of any court of
competent  jurisdiction;  nor,  after such sale or sales,  claim or exercise any
right under any statute now or hereafter  made or enacted by any state to redeem
the  property so sold or any part  thereof,  and such Pledgor  hereby  expressly
waives (to the extent  not  prohibited  by  applicable  law),  on behalf of such
Pledgor and each and every person or entity  claiming by, through and under such
Pledgor,  all benefit and advantage of any such law or laws,  and covenants that
such  Pledgor  will not  invoke  or  utilize  any such law or laws or  otherwise
hinder,  delay or impede the  execution of any power,  right or remedy herein or
hereby  granted and  delegated to the  Pledgee,  but will  authorize,  allow and
permit the execution of every such power,  right or remedy as though no such law
or laws had been made or enacted.

            14.9 THE  ISSUERS'  RECORDS.  Such  Pledgor  shall cause each of the
Issuers to make a notation on its  respective  records  indicating  the interest
granted hereby in favor of the Pledgee.

            15. EACH PLEDGOR'S  OBLIGATIONS  ABSOLUTE,  ETC. The  obligations of
each  Pledgor  under this  Agreement  shall be  absolute  and  unconditional  in
accordance  with its terms and shall remain in full force and effect  (except as
otherwise  provided herein under SECTION 19) without regard to, and shall not be
released,  suspended,  discharged,  terminated  or  otherwise  affected  by, any
circumstance or occurrence whatsoever,  including,  without limitation:  (a) any
change in the time,  place or manner of payment of, or in any other term of, all
or any of the Obligations, any waiver, indulgence, renewal, extension, amendment
or modification of or addition, consent or supplement to or deletion from or any
other action or inaction under or in respect of this Agreement, the Indenture or
any other  Indenture  Document,  or any of the other  documents,  instruments or
agreements  relating to the  Obligations  or any other  instrument  or agreement
referred to therein or any  assignment or transfer of any thereof;  (b) any lack
of validity or enforceability of the Indenture, or any other Indenture Document,
or any other  documents,  instruments  or  agreement  referred to therein or any
assignment  or transfer of any thereof;  (c) any  furnishing  of any  additional
security or collateral to the Pledgee, for the benefit of the Pledgee and/or the
other Secured Parties; or its assignees or any acceptance thereof or any release
of any  security  by the Pledgee or its  assignees;  (d) any  limitation  on any

                                      -11-

party's  liability or obligations  under any such instrument or agreement or any
invalidity or  unenforceability,  in whole or in part, of any such instrument or
agreement or any term thereof; (e) any bankruptcy,  insolvency,  reorganization,
composition,  adjustment,  dissolution,  liquidation  or other  like  proceeding
relating to such Pledgor or any other Person, as applicable, or any action taken
with respect to this Agreement by any trustee or receiver,  or by any court,  in
any such proceeding,  whether or not such Pledgor shall have notice or knowledge
of any of the foregoing; (f) any exchange, release or nonperfection of any other
collateral,  or any  release,  or amendment or waiver of or consent to departure
from any guaranty or  security,  for all or any of the  Obligations;  or (g) any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, such Pledgor.

            16. NOTICES, ETC. Except as otherwise expressly provided herein, any
notice required or desired to be served,  given or delivered  hereunder shall be
in the form and manner,  and shall be  addressed to the parties set forth in the
Indenture.

            17.  POWER  OF  ATTORNEY.   Each  Pledgor   hereby   absolutely  and
irrevocably  constitutes and appoints the Pledgee for the benefit of the Pledgee
and the other  Secured  Parties  as such  Pledgor's  true and  lawful  agent and
attorney-in-fact  with full power of  substitution,  in the name of such Pledgor
upon the  occurrence and during the  continuance of an Event of Default:  (a) to
execute and do all such assurances,  acts and things which such Pledgor ought to
do but has failed to do under the  covenants  and  provisions  contained in this
Agreement;  (b) to take  any and all such  action  as may be  necessary  for the
purpose of maintaining preserving or protecting the security constituted by this
Agreement or any of the rights,  remedies,  powers or  privileges of the Pledgee
under this Agreement;  and (c) generally, in the name of such Pledgor,  exercise
all or any of the powers, authorities,  and discretions conferred on or reserved
to the Pledgee by or pursuant to this Agreement,  and (without  prejudice to the
generality of any of the  foregoing)  to deliver or otherwise  perfect any deed,
assurance,  agreement,  instrument or act as may be proper in or for the purpose
of  exercising  any of such powers,  authorities  or  discretions.  Such Pledgor
hereby ratifies and confirms, and hereby agrees to ratify and confirm,  whatever
lawful acts the Pledgee or any of the Pledgee's sub-agents or attorneys shall do
or purport to do in the exercise of the power of attorney granted to the Pledgee
pursuant  to this  Section,  which  power of  attorney,  being  coupled  with an
interest and given for security,  is irrevocable;  PROVIDED,  HOWEVER, that such
Pledgor  neither  ratifies  nor  confirms  any acts of the Pledgee or any of the
Pledgee's  sub-agents  or attorneys do in the exercise of this power of attorney
if such acts constitute the negligence,  bad faith or willful misconduct of such
Person.

            18. MISCELLANEOUS. Each Pledgor agrees with the Pledgee that each of
the  obligations  and  liabilities  of such  Pledgor to the  Pledgee  under this
Agreement may be enforced  against such Pledgor without the necessity of joining
any other Person as a party.  This Agreement shall create a continuing  security
interest in the Pledged Collateral and shall be binding upon the heirs and legal
beneficiaries,  and  permitted  successors  and  assigns,  of such  Pledgor,  as
applicable,  and shall inure to the benefit of and be enforceable by the Pledgee
and its successors and assigns; PROVIDED, HOWEVER, that no party may assign this
Agreement or any rights or duties  hereunder other than pursuant to the terms of
the Indenture.  Unless otherwise  defined herein,  terms defined in the Code are
used herein as therein  defined.  The headings and titles in this  Agreement are

                                      -12-

for  convenience  of  reference  only and shall not limit or define the  meaning
hereof.  This Agreement may be executed in any number of  counterparts,  each of
which shall be an original, but all of which shall constitute one instrument. If
any provision of this Agreement shall prove to be invalid or unenforceable, such
provision  shall be deemed to be  severable  from the other  provisions  of this
Agreement  which shall remain  binding on all parties  hereto.  No Pledgor shall
have any right of subrogation as to any of the Pledged Collateral until full and
complete  performance  and payment of the  Obligations  (other  than  contingent
indemnification  obligations) or the occurrence of the Collateral Release Event.
A signature  hereto  distributed by facsimile or electronic mail shall be deemed
to be as legally binding as a signed original.

            19.  TERMINATION;  RECOVERY  CLAIM.  This Agreement  shall terminate
after the Obligations  are paid in full (other than  contingent  indemnification
obligations)  or the  Collateral  Release  Event shall have  occurred.  Upon the
termination of this Agreement,  or as otherwise  provided in the Indenture,  the
Pledgee, at the request of any applicable Pledgor and at the cost and expense of
such  Pledgor,  will  promptly  execute and  deliver to such  Pledgor the proper
instruments  acknowledging  the  termination  of this Agreement and the security
interest and lien on the Pledged Collateral created hereby and will duly assign,
transfer and deliver to such Pledgor or to whomsoever shall be lawfully entitled
to receive the same (without recourse and without any representation or warranty
of any kind) such of the Pledged  Collateral as may be in the  possession of the
Pledgee  and has not  theretofore  been sold or  otherwise  applied or  released
pursuant to this Agreement.  Should a claim ("RECOVERY  CLAIM") be made upon the
Pledgee or any or all of the other  Secured  Parties at any time for recovery of
any amount received by the Pledgee or any or all of the other Secured Parties in
payment of the  Obligations  (whether  received such Pledgor or  otherwise)  and
should the Pledgee or any or all of the other Secured  Parties repay all or part
of said  amount by reason of (a) any  judgment,  decree or order of any court or
administrative  body having  jurisdiction  over the Pledgee or any or all of the
other Secured Parties or any of their respective property; or (b) any settlement
or compromise of any such Recovery  Claim  effected by the Pledgee or any or all
of the other Secured Parties with the claimant  (including,  without limitation,
such Pledgor),  this Agreement and the security interests granted to the Pledgee
for the benefit of the Pledgee and the other  Secured  Parties  hereunder  shall
continue in effect with respect to the amount so repaid to the same extent as if
such amount had never  originally  been received by the Pledgee or any or all of
the  other  Secured  Parties,  notwithstanding  any  prior  termination  of this
Agreement,  the return of this Agreement to such Pledgor, or the cancellation of
any note or other instrument evidencing the Obligations.

            20.  AMENDMENTS;   MARSHALLING,  ETC.  (a)  None  of  the  terms  or
provisions of this Agreement may be waived,  amended,  supplemented or otherwise
modified  except  by a  written  instrument  executed  by such  Pledgor  and the
Pledgee.

            (b) The Pledgee  shall be under no  obligation to marshal any assets
or  collateral in favor of such Pledgor or any other person or entity or against
or in payment of any or all of the Obligations. All indemnities set forth herein
shall survive the  execution  and delivery of this  Agreement and the making and
repayment of the Obligations or the occurrence of the Collateral  Release Event.
The  Secured  Parties  (other than the  Pledgee)  are the  intended  third party
beneficiaries of this Agreement.

                                      -13-

            21. REVIEW OF AGREEMENT BY EACH PLEDGOR.  Each Pledgor  acknowledges
that such Pledgor has  thoroughly  read and reviewed the terms and provisions of
this  Agreement,  and that such terms and provisions  are clearly  understood by
such  Pledgor,  and has been  fully  and  unconditionally  consented  to by such
Pledgor with the full benefit and advice of counsel chosen by such Pledgor,  and
that such  Pledgor  has freely and  voluntarily  signed this  Agreement  without
duress.

            22. WAIVER OF CLAIMS. Except as otherwise provided in this Agreement
or  prohibited  by law,  EACH  PLEDGOR  HEREBY  WAIVES,  TO THE  FULLEST  EXTENT
PERMITTED BY APPLICABLE LAW, NOTICE AND JUDICIAL  HEARING IN CONNECTION WITH THE
PLEDGEE'S TAKING  POSSESSION OR SALE OR THE PLEDGEE'S  DISPOSITION OF ANY OF THE
COLLATERAL,  INCLUDING, WITHOUT LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING
FOR ANY  PREJUDGMENT  REMEDY OR REMEDIES  AND ANY SUCH RIGHT WHICH SUCH  PLEDGOR
WOULD OTHERWISE HAVE UNDER THE  CONSTITUTION OR ANY STATUTE OF THE UNITED STATES
OR OF ANY STATE,  and each Pledgor hereby further waives (and releases any cause
of action and claim  against the Pledgee as a result of), to the fullest  extent
permitted  by law:  (a) all damages  occasioned  by such  taking of  possession,
collection  or sale  except  any  damages  which  are the  direct  result of the
Pledgee's gross negligence or willful misconduct;  (b) all other requirements as
to the time, place and terms of sale or other  requirements  with respect to the
enforcement  of the Pledgee's  rights  hereunder;  (c) demand of  performance or
other demand, notice of intent to demand or accelerate,  notice of acceleration,
presentment,  protest,  advertisement  or  notice  of any  kind to or upon  such
Pledgor  or any  other  person or  entity;  and (d) all  rights  of  redemption,
appraisement,  valuation,  diligence,  stay,  extension  or  moratorium  now  or
hereafter in force under any applicable law in order to delay the enforcement of
this Agreement.

            23. REVIVAL AND  REINSTATEMENT OF OBLIGATIONS.  If the incurrence or
payment of the  Obligations by any Pledgor or the transfer by any Pledgor to the
Pledgee of any property of such Pledgor  should for any reason  subsequently  be
declared  to be void or  voidable  under any state or federal  law  relating  to
creditors'  rights,  including  provisions  of the  Bankruptcy  Code relating to
fraudulent conveyances,  preferences,  or other voidable or recoverable payments
of money or transfers of property (collectively,  a "VOIDABLE TRANSFER"), and if
the  Pledgee is  required  to repay or  restore,  in whole or in part,  any such
Voidable Transfer, or elects to do so upon the reasonable advice of its counsel,
then, as to any such Voidable  Transfer,  or the amount thereof that the Pledgee
is  required  or elects to repay or  restore,  and as to all  reasonable  costs,
expenses,  and attorneys fees of the Pledgee related  thereto,  the liability of
such Pledgor automatically shall be revived,  reinstated, and restored and shall
exist as though such Voidable Transfer had never been made.

                                      -14-

            24. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK,  AS APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICT  OF  LAWS.  EACH  OF  THE  PARTIES  HERETO  AGREES  TO  SUBMIT  TO  THE
JURISDICTION  OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

            25. WAIVER OF TRIAL BY JURY. EACH PLEDGOR HEREBY IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY IN ANY ACTION
OR  PROCEEDING  ARISING  OUT OF OR IN  CONNECTION  WITH  THIS  AGREEMENT  OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

            26. INTEGRATION.  This Agreement,  together with the other Indenture
Documents,  reflects the entire understanding of the parties with respect to the
transactions  contemplated  hereby and shall not be contradicted or qualified by
any other agreement, oral or written, before the date hereof

            27. APPLICABLE GAMING LAW RESTRICTIONS.  All rights,  remedies,  and
powers  provided in this  Agreement  relative to the Pledged  Collateral  may be
exercised  only to the extent  that the  exercise  thereof  does not violate any
applicable  mandatory provision of the Applicable Gaming Laws and all provisions
of this Agreement  relative to the Pledged Collateral are intended to be subject
to all applicable  mandatory  provisions of the Applicable Gaming Laws and to be
limited  solely to the extent  necessary  to not render the  provisions  of this
Agreement invalid or unenforceable, in whole or in part.

            28. INTERCREDITOR  AGREEMENT.  If the Intercreditor  Agreement is in
effect,

            (a) the Liens  granted  hereunder  in favor of the  Pledgee  for the
benefit of itself and the other Secured Parties in respect of the Collateral and
the exercise of any right  related  thereto  thereby  shall be subject,  in each
case, to the terms of the Intercreditor Agreement;

            (b) in the event of any direct  conflict  between the express  terms
and provisions of this Agreement and of the Intercreditor  Agreement,  the terms
and provisions of the Intercreditor Agreement shall control; and

            (c)  notwithstanding  anything to the contrary herein, any provision
hereof that  requires any Pledgor to (i) deliver any  Collateral  to  Collateral
Agent  or (ii)  provide  that  the  Collateral  Agent  have  control  over  such
Collateral  may be  satisfied  by (A) the  delivery of such  Collateral  by such
Pledgor to the lenders under the Credit Agreement or their agent for the benefit
of the Collateral  Agent for the benefit of itself and the other Secured Parties
pursuant to Section 3.02 of the  Intercreditor  Agreement and (B) providing that
the lenders  under the Credit  Agreement or their agent be provided with control
with  respect  to  such  Collateral  of such  Pledgor  for  the  benefit  of the
Collateral  Agent for the  benefit  of  itself  and the  other  Secured  Parties
pursuant to Section 3.02 of the Intercreditor Agreement.

                                      -15-

            IN WITNESS  WHEREOF,  the  parties  hereto  have  caused this Pledge
Agreement to be duly executed and delivered as of the date first above written.

                                            EMPIRE RESORTS, INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  Chief Financial Officer

                                            GUARANTORS:

                                            ALPHA MONTICELLO, INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  President

                                            ALPHA CASINO MANAGEMENT INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  President

                                            PLEDGEE:

                                            THE BANK OF NEW YORK, as Collateral
                                              Agent

                                            By: /s/ Robert A. Massimillo
                                                --------------------------------
                                                Name:   Robert A. Massimillo
                                                Title:  Vice President

ACKNOWLEDGED AND AGREED:
-----------------------

            Each of the undersigned  hereby (i)  acknowledges  the pledge of the
Pledged  Collateral  described  above  pursuant  to the  terms  of  this  Pledge
Agreement and agrees to register such pledge in its books and records,  and (ii)
agrees, upon receipt of notice from Pledgee of the occurrence and continuance of
an Event of  Default,  to comply  with the written  instructions  originated  by
Pledgee,  without  further  consent  of the  registered  holder  of the  Pledged
Collateral,  including,  without  limitation,  instructions  to pay and remit to
Pledgee all  distributions  and other  amounts  payable to the Pledgor that is a
holder of its Capital Stock (upon  redemption,  termination  and  dissolution of
each of the  undersigned  or  otherwise),  and to transfer  to, and register the
Pledged  Collateral in the name of, Pledgee or its nominee,  and (iii) agrees to
promptly honor its payment obligations contained in this Pledge Agreement.

                                            EMPIRE RESORTS, INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  Chief Financial Officer

                                            GUARANTORS:

                                            ALPHA MONTICELLO, INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  President

                                            ALPHA CASINO MANAGEMENT INC.

                                            By: /s/ Scott A. Kaniewski
                                                --------------------------------
                                                Name:   Scott A. Kaniewski
                                                Title:  President

                           ANNEX A TO PLEDGE AGREEMENT
                 (Empire Resorts, Inc., a Delaware corporation)

                                      NO. OF                                      %
    ISSUER                            SHARES        CLASS         CERT. NO.    OWNERSHIP     JURISDICTION       CERT./UNCERT.

Alpha Monticello, Inc.                  100         Common            1           100%         Delaware             Cert.
Alpha Casino Management Inc.            200         Common            1           100%         Delaware             Cert.
Monticello Casino Management,           N/A           N/A            N/A           60%         New York            Uncert.
LLC
Mohawk Management, LLC                  N/A           N/A            N/A           60%         New York            Uncert.
Monticello Raceway Development          N/A           N/A            N/A          100%         New York            Uncert.
Company, LLC
Monticello Raceway Management,           60         Common            3            60%         New York             Cert.
Inc.
Alpha Gulf Coast, Inc.                  850         Common            1           100%         Delaware             Cert.
Alpha St. Regis, Inc.                   100         Common            1           100%         Delaware             Cert.
Alpha Missouri, Inc.                    100         Capital           1           100%         Delaware             Cert.
Alpha Rising Sun, Inc.                  850         Common            1           100%         Delaware             Cert.
Jubilation Lakeshore, Inc.           10,000         Common            1           100%         Mississippi          Cert.
Alpha Greenville Hotel, Inc.            100         Common            1           100%         Delaware             Cert.
Alpha Entertainment, Inc.               100         Common            1           100%         Delaware             Cert.
Alpha Peach Tree Corporation            100            1              1           100%         Delaware             Cert.
Alpha Florida Entertainment,            N/A           N/A            N/A          100%         Florida             Uncert.
L.L.C.
New York Gaming, LLC                    N/A           N/A            N/A          100%         Georgia             Uncert.

                           ANNEX A TO PLEDGE AGREEMENT
                (Alpha Monticello, Inc., a Delaware corporation)

                                      NO. OF                                      %
    ISSUER                            SHARES        CLASS         CERT. NO.    OWNERSHIP     JURISDICTION       CERT./UNCERT.

Mohawk Management, LLC                  N/A           N/A            N/A           40%         New York            Uncert.
Monticello Raceway                       40         Common             2           40%         New York              Cert.
  Management, Inc.

                           ANNEX A TO PLEDGE AGREEMENT
             (Alpha Casino Management Inc., a Delaware corporation)

                                      NO. OF                                      %
    ISSUER                            SHARES        CLASS         CERT. NO.    OWNERSHIP     JURISDICTION       CERT./UNCERT.

Monticello Casino                       N/A           N/A            N/A           40%         New York            Uncert.
Management, LLCsec document

                                                                   EXHIBIT 10.3

                          REGISTRATION RIGHTS AGREEMENT

            THIS  REGISTRATION  RIGHTS AGREEMENT (this  "AGREEMENT") is made and
entered  into as of July  26,  2004  among  Empire  Resorts,  Inc.,  a  Delaware
corporation  (the  "COMPANY"),  the  subsidiary  guarantors  party  hereto  (the
"GUARANTORS") and Jefferies & Company, Inc. (the "INITIAL PURCHASER").  In order
to induce the Initial Purchaser to enter into the purchase agreement, dated July
16, 2004 (the "PURCHASE  AGREEMENT"),  the Company and the  Guarantors  agree to
provide the  registration  rights set forth in this Agreement.  The execution of
this Agreement is a condition to the closing under the Purchase Agreement.

            The Company and the Guarantors agree with the Initial Purchaser, (i)
for its benefit as Initial  Purchaser and (ii) for the benefit of the beneficial
owners  (including  the  Initial  Purchaser)  from time to time of the Notes (as
defined herein),  and the beneficial  owners from time to time of the Underlying
Common Stock (as defined  herein)  issued upon  conversion of Notes (each of the
foregoing a "HOLDER" and together the "HOLDERS"), as follows:

            SECTION  1.  DEFINITIONS.  Capitalized  terms  used  herein  without
definition  shall  have  their  respective  meanings  set forth in the  Purchase
Agreement.  In  addition  to the  terms  that  are  defined  elsewhere  in  this
Agreement, the following terms shall have the following meanings:

            "AFFILIATE"  with respect to any specified  person,  has the meaning
specified in Rule 144.

            "BUSINESS DAY" means each Monday, Tuesday,  Wednesday,  Thursday and
Friday that is not a day on which banking  institutions  in The City of New York
are authorized or obligated by law or executive order to close.

            "COMMON  STOCK"  means any  shares of the  common  stock,  $0.01 par
value,  of the Company and any other  shares of common  stock as may  constitute
"Common  Stock" for purposes of the Indenture,  including the Underlying  Common
Stock.

            "CONVERSION  PRICE" means, as of any date of  determination,  $1,000
principal amount of Notes divided by the Conversion Rate as of such date, or, if
no Notes are then outstanding,  the Conversion Rate that would be in effect were
Notes then outstanding, in each case, subject to adjustment.

            "CONVERSION  RATE"  has the  meaning  assigned  to such  term in the
Indenture.

            "DAMAGES  ACCRUAL PERIOD" has the meaning  specified in SECTION 2(e)
hereof.

            "DAMAGES PAYMENT DATE" means each January 31 and July 31.

            "DEFERRAL NOTICE" has the meaning specified in SECTION 3(i) hereof.

            "DEFERRAL PERIOD" has the meaning specified in SECTION 3(i) hereof.

            "EFFECTIVENESS  DEADLINE DATE" has the meaning  specified in SECTION
2(a) hereof.

            "EFFECTIVENESS  PERIOD" means the period from the  effectiveness  of
the Initial Shelf  Registration  Statement to the earliest date of the following
to occur: (1) all of the Registrable Securities shall have been sold pursuant to
the Shelf Registration Statement;  (2) the Holders of the Registrable Securities
that are not  affiliates  of the Company  are able to sell all such  Registrable
Securities immediately pursuant to Rule 144(k) under the Securities Act, (3) the
date when all of the  Registrable  Securities  have ceased to be outstanding and
(4) the date that is two years, subject to specified blackout periods, following
the filing of the Shelf Registration Statement.

            "EVENT" has the meaning specified in SECTION 2(e) hereof.

            "EVENT  TERMINATION  DATE" has the meaning specified in SECTION 2(e)
hereof.

            "EVENT DATE" has the meaning specified in SECTION 2(e) hereof.

            "EXCHANGE  ACT"  means  the  Securities  Exchange  Act of  1934,  as
amended, and the rules and regulations of the SEC promulgated thereunder.

            "FILING  DEADLINE  DATE" has the meaning  specified  in SECTION 2(a)
hereof.

            "HOLDER" has the meaning  specified in the second  paragraph of this
Agreement.

            "INDENTURE"  means the Indenture dated as of the date hereof between
the Company,  the Guarantors and the Trustee, as trustee,  pursuant to which the
Notes are being issued.

            "INITIAL PURCHASER" shall have the meaning set forth in the preamble
to this Agreement.

            "INITIAL SHELF REGISTRATION  STATEMENT" has the meaning specified in
SECTION 2(a) hereof.

            "ISSUE DATE" means July 23, 2004.

            "LIQUIDATED  DAMAGES  AMOUNT" has the meaning  specified  in SECTION
2(e) hereof.

            "LOSSES" has the meaning specified in SECTION 6 hereof.

            "MATERIAL EVENT" has the meaning specified in SECTION 3(i) hereof.

            "NOTES" means the  Convertible  Senior Notes due 2014 of the Company
to be purchased pursuant to the Purchase Agreement.

            "NOTICE AND  QUESTIONNAIRE"  means a written notice delivered to the
Company  containing  substantially  the  information  called for by the  Selling
Securityholder  Notice and  Questionnaire  attached  as Annex A to the  Offering
Memorandum of the Company dated July 16, 2004 relating to the Notes.

                                       2

            "NOTICE  HOLDER" means on any date,  any Holder that has delivered a
Notice and Questionnaire to the Company on or prior to such date.

            "PROSPECTUS"  means  the  prospectus  included  in any  Registration
Statement   (including,   without   limitation,   a  prospectus  that  discloses
information  previously  omitted from a prospectus filed as part of an effective
registration   statement  in  reliance  upon  Rule  415  promulgated  under  the
Securities  Act),  as amended or  supplemented  by any  amendment or  prospectus
supplement,  including post-effective amendments, and all materials incorporated
by  reference  or  explicitly  deemed to be  incorporated  by  reference in such
Prospectus.

            "PURCHASE  AGREEMENT"  has the meaning  specified in the preamble of
this Agreement.

            "RECORD  HOLDER"  means with  respect to any  Damages  Payment  Date
relating  to any Note or  shares  of  Underlying  Common  Stock as to which  any
Liquidated  Damages Amount has accrued,  the  registered  holder of such Note or
such  shares of  Underlying  Common  Stock,  as the case may be, on the 15th day
immediately prior to the next succeeding Damages Payment Date.

            "REGISTRABLE  SECURITIES"  means the Notes and the Underlying Common
Stock until such  securities  have been converted or exchanged and, at all times
subsequent to any such conversion or exchange,  any securities into or for which
such securities  have been converted or exchanged,  and any security issued with
respect thereto upon any stock dividend,  split,  merger or similar event until,
in the case of any such security, the earliest of (i) its effective registration
under  the  Securities  Act and  resale  in  accordance  with  the  Registration
Statement  covering  it, (ii)  expiration  of the  holding  period that would be
applicable  thereto  under Rule 144(k) were it not held by an  Affiliate  of the
Company, or (iii) its sale to the public pursuant to Rule 144.

            "REGISTRATION  EXPENSES"  has the  meaning  specified  in  SECTION 5
hereof.

            "REGISTRATION  STATEMENT"  means any  registration  statement of the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement, including the Prospectus,  amendments and supplements to such
registration statement,  including post-effective  amendments, all exhibits, and
all materials  incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

            "RESTRICTED  SECURITIES"  has the  meaning  assigned to such term in
Rule 144.

            "RULE 144" means Rule 144 under the Securities Act, as such Rule may
be amended  from time to time,  or any similar or successor  rule or  regulation
hereafter adopted by the SEC having substantially the same effect as such Rule.

            "RULE 144A" means Rule 144A under the  Securities  Act, as such Rule
may be amended from time to time, or any similar or successor rule or regulation
hereafter adopted by the SEC having substantially the same effect as such Rule.

            "SEC" means the United States Securities and Exchange Commission.

                                       3

            "SECURITIES  ACT" means the Securities Act of 1933, as amended,  and
the rules and regulations promulgated by the SEC thereunder.

            "SHELF REGISTRATION  STATEMENT" has the meaning specified in SECTION
2(a) hereof.

            "SUBSEQUENT SHELF REGISTRATION  STATEMENT" has the meaning specified
in SECTION 2(b) hereof.

            "TAX EVENT" has the meaning assigned to such term in the Indenture.

            "TIA" means the Trust Indenture Act of 1939, as amended.

            "TRUSTEE" means the Bank of New York (or any successor entity),  the
Trustee under the Indenture.

            "UNDERLYING  COMMON  STOCK"  means the  Common  Stock into which the
Notes are convertible or issued upon any such conversion.

            "UNDERLYING  COMMON  STOCK VALUE" means the product of the number of
shares of Underlying Common Stock that are Registrable  Securities multiplied by
the Conversion Price.

            SECTION 2. SHELF REGISTRATION.

            (a) The Company and the  Guarantors  shall prepare and file or cause
to be prepared  and filed with the SEC no later than a date which is ninety (90)
days after the Issue Date (the "FILING DEADLINE DATE") a Registration  Statement
for an offering to be made on a delayed or continuous basis pursuant to Rule 415
of the Securities Act (a "SHELF REGISTRATION  STATEMENT") registering the resale
from time to time by Holders of all of the Registrable  Securities (the "INITIAL
SHELF REGISTRATION  STATEMENT").  The Initial Shelf Registration Statement shall
be on Form S-3 or  another  appropriate  form  permitting  registration  of such
Registrable Securities for resale by such Holders in accordance with the methods
of distribution  reasonably  elected by the Holders and set forth in the Initial
Shelf Registration  Statement;  PROVIDED that in no event will such method(s) of
distribution  take  the  form of an  underwritten  offering  of the  Registrable
Securities  without the prior agreement of the Company and the  Guarantors.  The
Company  and the  Guarantors  shall use  reasonable  best  efforts  to cause the
Initial  Shelf  Registration  Statement  to  be  declared  effective  under  the
Securities Act no later than the date (the  "EFFECTIVENESS  DEADLINE DATE") that
is  one-hundred  and fifty  (150)  days  after the Issue  Date,  and to keep the
Initial Shelf  Registration  Statement  (or any  Subsequent  Shelf  Registration
Statement)  continuously effective under the Securities Act until the expiration
of the Effectiveness Period. Each Holder that became a Notice Holder on or prior
to the date ten (10)  Business  Days  prior to the time that the  Initial  Shelf
Registration  Statement  became  effective shall be named as a selling  security
holder in the Initial Shelf Registration Statement and the related Prospectus in
such a manner as to permit such Holder to deliver such  Prospectus to purchasers
of Registrable  Securities in accordance  with the Securities Act and applicable

                                       4

state securities laws generally applicable to all such Holders.  Notwithstanding
the foregoing,  no Holder shall be entitled to have the  Registrable  Securities
held by it covered by such Shelf  Registration  Statement unless such Holder has
provided a Notice and  Questionnaire  in accordance  with SECTION 2(d) and is in
compliance  with SECTION 4. The Company and the Guarantors  shall not permit any
of the  Company's  security  holders  (other  than the  Holders  of  Registrable
Securities) to include any of the Company's securities in the Shelf Registration
Statement.

            (b) If the Initial Shelf  Registration  Statement or any  Subsequent
Shelf  Registration  Statement ceases to be effective for any reason at any time
during the  Effectiveness  Period,  the  Company  and the  Guarantors  shall use
reasonable best efforts to obtain the prompt  withdrawal of any order suspending
the  effectiveness  thereof,  and in any event shall within  thirty (30) days of
such  cessation of  effectiveness  amend the Shelf  Registration  Statement in a
manner  reasonably  expected  by the Company  and the  Guarantors  to obtain the
withdrawal  of the  order  suspending  the  effectiveness  thereof,  or  file an
additional Shelf  Registration  Statement covering all of the securities that as
of the date of such  filing are  Registrable  Securities  (a  "SUBSEQUENT  SHELF
REGISTRATION STATEMENT"). If a Subsequent Shelf Registration Statement is filed,
the Company and the Guarantors  shall use  reasonable  best efforts to cause the
Subsequent  Shelf  Registration  Statement to become effective as promptly as is
reasonably  practicable after such filing or, if filed during a Deferral Period,
after the  expiration of such  Deferral  Period,  and to keep such  Registration
Statement (or Subsequent Shelf Registration  Statement)  continuously  effective
until the end of the Effectiveness Period.

            (c) The Company and the  Guarantors  shall  supplement and amend the
Shelf  Registration   Statement  if  required  by  the  rules,   regulations  or
instructions  applicable  to the  registration  form used by the Company and the
Guarantors for such Shelf Registration  Statement, if required by the Securities
Act or, to the extent to which the Company and the  Guarantors do not reasonably
object,  as reasonably  requested by the Initial  Purchaser or by the Trustee on
behalf of the registered Holders.

            (d) Each Holder of Registrable Securities agrees that if such Holder
wishes to sell Registrable Securities pursuant to a Shelf Registration Statement
and related Prospectus,  it will do so only in accordance with this SECTION 2(d)
and SECTION 3(i) and SECTION 4. Each Holder of Registrable Securities wishing to
sell  Registrable  Securities  pursuant to a Shelf  Registration  Statement  and
related  Prospectus  agrees to deliver a Notice and Questionnaire to the Company
at  least  five  (5)  Business  Days  prior  to  any  intended  distribution  of
Registrable  Securities under the Shelf Registration  Statement.  From and after
the date the Initial Shelf  Registration  Statement is declared  effective,  the
Company and the Guarantors shall, as promptly as is reasonably practicable after
the date a Notice and Questionnaire is delivered,  (i) if required by applicable
law,  file with the SEC a  post-effective  amendment  to the Shelf  Registration
Statement or prepare and, if required by  applicable  law,  file a supplement to
the related Prospectus or a supplement or amendment to any document incorporated
therein by reference or file any other document  required by the SEC so that the
Holder  delivering such Notice and  Questionnaire is named as a selling security
holder in the Shelf Registration  Statement and the related Prospectus in such a
manner as to permit such Holder to deliver such  Prospectus to purchasers of the
Registrable  Securities in accordance  with the  Securities  Act and  applicable
state  securities  laws and,  if the  Company  and the  Guarantors  shall file a
post-effective  amendment to the Shelf  Registration  Statement,  use reasonable
best efforts to cause such  post-effective  amendment  to be declared  effective
under the Securities Act as promptly as is reasonably practicable;  (ii) provide
such Holder copies of any documents filed pursuant to SECTION 2(d)(i); and (iii)

                                       5

notify  such  Holder  as  promptly  as  is  reasonably   practicable  after  the
effectiveness  under the Securities Act of any  post-effective  amendment  filed
pursuant to SECTION 2(d)(i);  PROVIDED that if such Notice and  Questionnaire is
delivered  during a Deferral  Period,  the Company and the  Guarantors  shall so
inform the Holder  delivering such Notice and  Questionnaire  and shall take the
actions set forth in CLAUSES (i),  (ii) and (iii) above upon  expiration  of the
Deferral Period in accordance with SECTION 3(i); PROVIDED FURTHER, that if under
applicable  law the Company and the  Guarantors  have more than one option as to
the type or manner of making any such filing, they will make the required filing
or filings in the manner or of a type that is  reasonably  expected to result in
the earliest availability of the Prospectus for effecting resales of Registrable
Securities.  Notwithstanding  anything  contained  herein to the  contrary,  the
Company and the Guarantors  shall be under no obligation to name any Holder that
is not a  Notice  Holder  as a  selling  security  holder  in  any  Registration
Statement or related Prospectus; PROVIDED, HOWEVER, that any Holder that becomes
a Notice Holder  pursuant to the provisions of this SECTION 2(d) (whether or not
such  Holder  was a Notice  Holder at the time the  Registration  Statement  was
initially declared effective) shall be named as a selling security holder in the
Registration  Statement or related  Prospectus subject to and in accordance with
the requirements of this SECTION 2(d).

            (e) The  parties  hereto  agree  that  the  Holders  of  Registrable
Securities will suffer  damages,  and that it would not be feasible to ascertain
the extent of such damages with precision, if (i) the Initial Shelf Registration
Statement has not been filed on or prior to the Filing  Deadline Date,  (ii) the
Initial Shelf  Registration  Statement has not been declared effective under the
Securities  Act on or prior to the  Effectiveness  Deadline  Date,  or (iii) the
aggregate  duration of Deferral Periods in any period exceeds the number of days
permitted in respect of such period pursuant to SECTION 3(i) hereof (each of the
events of a type described in any of the foregoing CLAUSES (i) through (iii) are
individually  referred to herein as an "EVENT," and the Filing  Deadline Date in
the case of CLAUSE (i), the  Effectiveness  Deadline  Date in the case of CLAUSE
(ii),  and the date on which the aggregate  duration of Deferral  Periods in any
period  exceeds the number of days  permitted by SECTION 3(I) hereof in the case
of CLAUSE (iii),  being referred to herein as an "EVENT DATE").  Events shall be
deemed to  continue  until the  "EVENT  TERMINATION  DATE,"  which  shall be the
following  dates with respect to the  respective  types of Events:  the date the
Initial  Shelf  Registration  Statement  is filed in the case of an Event of the
type described in CLAUSE (i), the date the Initial Shelf Registration  Statement
is declared  effective  under the  Securities Act in the case of an Event of the
type described in CLAUSE (ii),  termination  of the Deferral  Period that caused
the limit on the aggregate duration of Deferral Periods in a period set forth in
SECTION 3(i) to be exceeded in the case of the  commencement  of an Event of the
type described in CLAUSE (iii).

            Accordingly, commencing on (and including) any Event Date and ending
on (but  excluding)  the next date after an Event  Termination  Date (a "DAMAGES
ACCRUAL  PERIOD"),  the Company and the  Guarantors  agree to pay, as liquidated
damages  and not as a penalty,  an amount  (the  "LIQUIDATED  DAMAGES  AMOUNT"),
payable on the Damages Payment Dates to Record Holders of then outstanding Notes
that are  Registrable  Securities  or of then  outstanding  shares of Underlying
Common Stock issued upon conversion of Notes that are Registrable Securities, as
the case may be,  accruing,  for each  portion of such  Damages  Accrual  Period
beginning on and  including a Damages  Payment Date (or, in respect of the first
time that the  Liquidation  Damages Amount is to be paid to Holders on a Damages
Payment Date as a result of the  occurrence of any  particular  Event,  from the
Event  Date) and ending on but  excluding  the first to occur of (A) the date of

                                       6

the end of the Damages Accrual Period or (B) the next Damages Payment Date, at a
rate that will accrue,  in addition to the  interest on the Notes,  at an amount
per week per $1,000  principal amount of Notes or per $1,000  Underlying  Common
Stock  Value,  as  applicable,  equal to $0.05  for the first  ninety  (90) days
immediately  following  the Event  Date,  with such  Liquidated  Damages  Amount
increasing by an additional  $0.05 per week per $1,000 principal amount of Notes
or per $1,000 Underlying Common Stock Value, as applicable, with respect to each
subsequent 90-day period, up to a maximum of $0.25 per week per $1,000 principal
amount of Notes or per $1,000 Underlying Common Stock Value, as applicable.  Any
Liquidated  Damages Amount  accrued with respect to any Note or portion  thereof
called for redemption on a redemption date or converted into  Underlying  Common
Stock on a conversion date prior to the Damages Payment Date, shall, in any such
event,  be paid instead to the Holder who submitted such Note or portion thereof
for  redemption or conversion on the  applicable  redemption  date or conversion
date,  as the case may be, on such date (or promptly  following  the  conversion
date, in the case of conversion).  Notwithstanding the foregoing,  no Liquidated
Damages Amounts shall accrue as to any  Registrable  Security from and after the
earlier of (x) the date such  security is no longer a  Registrable  Security and
(y)  expiration  of  the  Effectiveness  Period.  The  rate  of  accrual  of the
Liquidated  Damages  Amount with respect to any period shall not exceed the rate
provided  for in this  paragraph  notwithstanding  the  occurrence  of  multiple
concurrent Events. Following the cure of all Events requiring the payment by the
Company  and the  Guarantors  of  Liquidated  Damages  Amounts to the Holders of
Registrable  Securities  pursuant to this  Section,  the  accrual of  Liquidated
Damages  Amounts  will  cease  (without  in any way  limiting  the effect of any
subsequent  Event requiring the payment of the Liquidated  Damages Amount by the
Company and the Guarantors).

            The Trustee,  subject to the applicable provisions of the Indenture,
shall be entitled,  on behalf of Holders of Notes or Underlying Common Stock, to
seek any available  remedy for the enforcement of this Agreement,  including for
the payment of any Liquidated Damages Amount. Notwithstanding the foregoing, the
parties  agree that the sole  monetary  damages  payable for a violation  of the
terms of this Agreement with respect to which  liquidated  damages are expressly
provided  shall be such  liquidated  damages.  Nothing  shall  preclude a Notice
Holder or Holder of Registrable  Securities from pursuing or obtaining  specific
performance or other equitable relief with respect to this Agreement.

            All of the Company's and the  Guarantors'  obligations  set forth in
this SECTION 2(e) that are outstanding with respect to any Registrable  Security
at the time such  security  ceases to be a  Registrable  Security  shall survive
until such time as all such  obligations with respect to such security have been
satisfied in full  (notwithstanding  termination of this  Agreement  pursuant to
SECTION 8(k)).

            The parties hereto agree that the liquidated damages provided for in
this  SECTION 2(e)  constitute a reasonable  estimate of the damages that may be
incurred by Holders of  Registrable  Securities  by reason of the failure of the
Shelf Registration  Statement to be filed or declared effective or available for
effecting  resales of Registrable  Securities in accordance  with the provisions
hereof.

            SECTION  3.   REGISTRATION   PROCEDURES.   In  connection  with  the
registration  obligations  of the Company  and the  Guarantors  under  SECTION 2
hereof, the Company and the Guarantors shall:

                                       7

            (a) Before  filing any  Registration  Statement or Prospectus or any
amendments or supplements  (other than amendments or supplements that do nothing
more  substantive  than name one or more  Notice  Holders  as  selling  security
holders)  thereto with the SEC,  furnish to the Initial  Purchaser copies of all
such documents  proposed to be filed and use reasonable  best efforts to reflect
in each such  document  when so filed with the SEC such  comments as the Initial
Purchaser  reasonably  shall  propose  within  three  (3)  Business  Days of the
delivery of such copies to the Initial Purchaser.

            (b) Prepare and file with the SEC such amendments and post-effective
amendments  to each  Registration  Statement  as may be  necessary  to keep such
Registration   Statement   continuously  effective  for  the  applicable  period
specified in SECTION 2(a);  cause the related  Prospectus to be  supplemented by
any required Prospectus supplement,  and as so supplemented to be filed pursuant
to Rule 424 (or any similar  provisions then in force) under the Securities Act;
and use reasonable  best efforts to comply with the provisions of the Securities
Act applicable to it with respect to the  disposition of all securities  covered
by such  Registration  Statement during the  Effectiveness  Period in accordance
with the intended  methods of  disposition  by the sellers  thereof set forth in
such Registration Statement as so amended or such Prospectus as so supplemented.

            (c) As promptly as reasonably  practicable give notice to the Notice
Holders  and  the  Initial   Purchaser  (i)  when  any  Prospectus,   Prospectus
supplement, Registration Statement or post-effective amendment to a Registration
Statement  has been  filed  with the SEC and,  with  respect  to a  Registration
Statement  or any  post-effective  amendment,  when the  same has been  declared
effective (PROVIDED,  HOWEVER,  that the Company and the Guarantors shall not be
required by this CLAUSE (i) to notify (A) the Initial Purchaser of the filing of
a Prospectus supplement that does nothing more substantive than name one or more
Notice  Holders as  selling  security  holders  or (B) any Notice  Holder of the
filing of a Prospectus  supplement that does nothing more  substantive than name
one or more  other  Notice  Holders as selling  security  holders),  (ii) of any
request, following the effectiveness of the Initial Shelf Registration Statement
under the Securities Act, by the SEC or any other federal or state  governmental
authority for amendments or supplements to any Registration Statement or related
Prospectus or for  additional  information,  (iii) of the issuance by the SEC or
any  other  federal  or  state  governmental  authority  of any  stop  order  or
injunction   suspending  or  enjoining   the  use  of  any   Prospectus  or  the
effectiveness of any Registration  Statement or the initiation or threatening of
any  proceedings  for that  purpose,  (iv) of the  receipt by the Company or the
Guarantors  of  any   notification   with  respect  to  the  suspension  of  the
qualification  or  exemption  from  qualification  of  any  of  the  Registrable
Securities for sale in any  jurisdiction or the initiation or threatening of any
proceeding for such purpose,  (v) of the occurrence of (but not the nature of or
details concerning) a Material Event (PROVIDED,  HOWEVER,  that no notice by the
Company and the Guarantors shall be required  pursuant to this CLAUSE (v) in the
event that the Company and the  Guarantors  either  promptly  file a  Prospectus
supplement  to update the  Prospectus  or a Current  Report on Form 8-K or other
appropriate  Exchange  Act report that is  incorporated  by  reference  into the
Registration   Statement,   which,  in  either  case,   contains  the  requisite
information   with  respect  to  such  Material   Event  that  results  in  such
Registration  Statement no longer  containing  any untrue  statement of material
fact or  omitting  to state a material  fact  necessary  to make the  statements
contained  therein not misleading) and (vi) of the  determination by the Company

                                       8

and the Guarantors that a post-effective  amendment to a Registration  Statement
will be filed with the SEC,  which notice may, at the  discretion of the Company
and the  Guarantors  (or as required  pursuant to SECTION  3(i)),  state that it
constitutes  a Deferral  Notice,  in which event the  provisions of SECTION 3(i)
shall apply.

            (d) Use  reasonable  best  efforts to obtain the  withdrawal  of any
order suspending the effectiveness of a Registration Statement or the lifting of
any suspension of the qualification (or exemption from  qualification) of any of
the Registrable  Securities for sale in any jurisdiction in which they have been
qualified  for sale, in either case at the earliest  possible  moment or, if any
such order or suspension is made effective  during any Deferral  Period,  at the
earliest possible moment after the expiration of such Deferral Period.

            (e) If reasonably  requested by the Initial  Purchaser or any Notice
Holder,  as promptly  as  reasonably  practicable  incorporate  in a  Prospectus
supplement  or  post-effective   amendment  to  a  Registration  Statement  such
information as the Initial  Purchaser or such Notice Holder shall,  on the basis
of a  written  opinion  of  nationally-recognized  counsel  experienced  in such
matters (which opinion shall also be addressed to the Company),  determine to be
required to be included  therein by applicable law and make any required filings
of such Prospectus  supplement or such post-effective  amendment;  PROVIDED that
the Company and the  Guarantors  shall not be required to take any actions under
this  SECTION  3(e) that are not, in the  reasonable  opinion of counsel for the
Company and the Guarantors, in compliance with applicable law.

            (f) As promptly as reasonably  practicable  after the filing of such
documents with the SEC furnish to each Notice Holder and the Initial  Purchaser,
upon their request and without  charge,  at least one (1) conformed  copy of the
Registration   Statement  and  any  amendment   thereto,   including   financial
statements,  but excluding schedules, all documents incorporated or deemed to be
incorporated  therein by reference and all exhibits (unless requested in writing
to the Company by such Notice Holder or the Initial  Purchaser,  as the case may
be).

            (g) During the Effectiveness  Period,  deliver to each Notice Holder
in connection with any sale of Registrable Securities pursuant to a Registration
Statement,  without  charge,  as many copies of the  Prospectus or  Prospectuses
relating to such Registrable Securities (including each preliminary  prospectus)
and any  amendment or supplement  thereto as such Notice  Holder may  reasonably
request;  and the Company and the Guarantors  hereby consent (except during such
periods that a Deferral  Notice is outstanding  and has not been revoked) to the
use of such  Prospectus or each  amendment or supplement  thereto by each Notice
Holder in connection  with any offering and sale of the  Registrable  Securities
covered by such Prospectus or any amendment or supplement  thereto in the manner
set forth therein.

            (h)  Subject to SECTION  3(i),  prior to any public  offering of the
Registrable  Securities  pursuant  to  the  Shelf  Registration  Statement,  use
reasonable  best efforts to cooperate with the Notice Holders in connection with
the  registration  or  qualification  (or exemption  from such  registration  or
qualification)  of such  Registrable  Securities  for offer  and sale  under the
securities  or Blue Sky laws of such  jurisdictions  within the United States as
any Notice Holder reasonably  requests in writing (which request may be included
in the Notice and  Questionnaire),  it being agreed that no such registration or
qualification will be made unless so requested;  prior to any public offering of
the Registrable  Securities  pursuant to the Shelf Registration  Statement,  use

                                       9

reasonable  best efforts to keep each such  registration  or  qualification  (or
exemption  therefrom)  effective during the  Effectiveness  Period in connection
with such Notice Holder's offer and sale of Registrable  Securities  pursuant to
such registration or qualification  (or exemption  therefrom) and do any and all
other acts or things  necessary to enable the disposition in such  jurisdictions
of  such  Registrable  Securities  in the  manner  set  forth  in  the  relevant
Registration Statement and the related Prospectus; PROVIDED that the Company and
each  of the  Guarantors  will  not be  required  to (i)  qualify  as a  foreign
corporation  or as a dealer in  securities in any  jurisdiction  where it is not
otherwise  qualified  or (ii) take any action  that would  subject it to general
service of process in suits or to taxation in any such jurisdiction  where it is
not then so subject.

            (i) Upon (A) the issuance by the SEC of a stop order  suspending the
effectiveness  of  the  Shelf  Registration   Statement  or  the  initiation  of
proceedings with respect to the Shelf Registration  Statement under Section 8(d)
or 8(e) of the Securities  Act, (B) the occurrence of any event or the existence
of any fact (a "MATERIAL EVENT") as a result of which any Registration Statement
shall  contain  any untrue  statement  of a  material  fact or omit to state any
material fact required to be stated  therein or necessary to make the statements
therein not misleading,  or any Prospectus shall contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements  therein,  in the light of the circumstances
under which they were made,  not misleading  (including,  in any such case, as a
result of the non-availability of financial  statements),  or (C) the occurrence
or existence of any pending corporate development that, in the discretion of the
Company and the Guarantors,  makes it appropriate to suspend the availability of
the Shelf Registration Statement and the related Prospectus,  (i) in the case of
CLAUSE (B) above,  subject to the next  sentence,  as  promptly  as  practicable
prepare and file a post-effective  amendment to such Registration Statement or a
supplement  to the related  Prospectus or any document  incorporated  therein by
reference or file any other  required  document  that would be  incorporated  by
reference  into  such  Registration   Statement  and  Prospectus  so  that  such
Registration  Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, and such Prospectus does not contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
required to be stated  therein or necessary to make the statements  therein,  in
the light of the  circumstances  under which they were made, not misleading,  as
thereafter delivered to the purchasers of the Registrable  Securities being sold
thereunder,  and, in the case of a  post-effective  amendment to a  Registration
Statement, subject to the next sentence, use reasonable best efforts to cause it
to be declared effective as promptly as is reasonably practicable, and (ii) give
notice to the Notice  Holders that the  availability  of the Shelf  Registration
Statement is suspended (a "DEFERRAL  NOTICE")  and, upon receipt of any Deferral
Notice,  each  Notice  Holder  agrees  not to sell  any  Registrable  Securities
pursuant to the  Registration  Statement until such Notice  Holder's  receipt of
copies of the  supplemented  or amended  Prospectus  provided  for in CLAUSE (i)
above,  or until it is advised in writing by the Company and the Guarantors that
the  Prospectus  may be used,  and has  received  copies  of any  additional  or
supplemental  filings that are incorporated or deemed  incorporated by reference
in such  Prospectus.  The Company and the Guarantors  will use  reasonable  best
efforts to ensure that the use of the  Prospectus may be resumed (x) in the case
of CLAUSE (A) above,  as promptly as is  practicable,  (y) in the case of CLAUSE
(B) above,  as soon as, in the sole judgment of the Company and the  Guarantors,

                                       10

public disclosure of such Material Event would not be prejudicial to or contrary
to the  interests  of the Company and the  Guarantors  or, if necessary to avoid
unreasonable burden or expense, as soon as reasonably practicable thereafter and
(z) in the case of  CLAUSE  (C)  above,  as soon as,  in the  discretion  of the
Company and the Guarantors, such suspension is no longer appropriate. So long as
the period during which the availability of the  Registration  Statement and any
Prospectus is suspended (the "DEFERRAL  PERIOD") does not exceed forty-five (45)
days  during any three (3) month  period or one  hundred  and twenty  (120) days
during any twelve (12) month period,  the Company and the  Guarantors  shall not
incur any obligation to pay liquidated damages pursuant to SECTION 2(e).

            (j)  If  reasonably  requested  in  writing  in  connection  with  a
disposition of Registrable Securities pursuant to a Registration Statement, make
reasonably   available  for  inspection   during  normal  business  hours  by  a
representative  for the Notice  Holders of such  Registrable  Securities and any
broker-dealers,  attorneys and accountants  retained by such Notice Holders, all
relevant  financial  and  other  records,   pertinent  corporate  documents  and
properties  of the  Company  and its  subsidiaries,  and cause  the  appropriate
executive  officers,  directors and designated  employees of the Company and its
subsidiaries to make reasonably  available for inspection during normal business
hours all relevant  information  reasonably requested by such representative for
the Notice  Holders or any such  broker-dealers,  attorneys  or  accountants  in
connection with such disposition,  in each case as is customary for similar "due
diligence" examinations;  PROVIDED, HOWEVER, that such persons shall first agree
in writing  with the Company and the  Guarantors  that any  information  that is
reasonably   designated  by  the  Company  and  the  Guarantors  in  writing  as
confidential  at the  time  of  delivery  of  such  information  shall  be  kept
confidential  by such  persons  and shall be used  solely  for the  purposes  of
exercising   rights  under  this  Agreement,   unless  (i)  disclosure  of  such
information  is required by court or  administrative  order or is  necessary  to
respond  to  inquiries  of  regulatory  authorities,  (ii)  disclosure  of  such
information is required by law (including any disclosure  requirements  pursuant
to federal  securities  laws in connection  with the filing of any  Registration
Statement or the use of any  Prospectus  referred to in this  Agreement),  (iii)
such  information  becomes  generally  available  to the public  other than as a
result of a  disclosure  or failure to safeguard by any such person or (iv) such
information  becomes  available to any such person on a  non-confidential  basis
from a source other than the Company and the  Guarantors  and such source is not
bound by a confidentiality  agreement;  and PROVIDED FURTHER, that the foregoing
inspection and information  gathering shall, to the greatest extent possible, be
coordinated on behalf of all the Notice  Holders and the other parties  entitled
thereto by the counsel referred to in SECTION 5.

            (k) Comply with all applicable  rules and regulations of the SEC and
make generally available to its  securityholders  earning statements (which need
not be audited) satisfying the provisions of Section 11(a) of the Securities Act
and Rule 158  thereunder (or any similar rule  promulgated  under the Securities
Act) no later than forty-five (45) days after the end of any 12-month period (or
ninety (90) days after the end of any 12-month period if such period is a fiscal
year)  commencing  on the first day of the first  fiscal  quarter of the Company
commencing  after  the  effective  date  of  a  Registration  Statement,   which
statements shall cover said 12-month periods.

            (l)  Cooperate  with each  Notice  Holder to  facilitate  the timely
preparation and delivery of  certificates  representing  Registrable  Securities
sold pursuant to a Registration Statement, and cause such Registrable Securities
to be in such  denominations as are permitted by the Indenture and registered in

                                       11

such  names as such  Notice  Holder  may  request  in  writing at least five (5)
Business Days prior to any sale of such Registrable Securities.

            (m) Provide a CUSIP number for all Registrable Securities covered by
each  Registration   Statement  not  later  than  the  effective  date  of  such
Registration  Statement  and provide the Trustee for the Notes and the  transfer
agent for the Common Stock with certificates for the Registrable Securities that
are in a form eligible for deposit with The Depository Trust Company.

            (n)  Make  reasonable  effort  to  provide  such  information  as is
required for any filings  required to be made with the National  Association  of
Securities Dealers, Inc.

            (o) Upon (i) the filing of the Initial Shelf Registration  Statement
and (ii) the effectiveness of the Initial Shelf Registration Statement, announce
the same, in each case by release to Businesswire,  Reuters  Economic  Services,
Bloomberg Business News or any other means of dissemination  reasonably expected
to make such information known publicly.

            (p) Take all  actions  necessary,  or  reasonably  requested  by the
Holders of a majority of the  Registrable  Securities  being  sold,  in order to
expedite or facilitate disposition of such Registrable Securities; PROVIDED that
the  Company  and the  Guarantors  shall not be  required  to take any action in
connection with an underwritten offering without their consent; and

            (q) Cause the Indenture to be qualified under the TIA not later than
the effective date of any Registration  Statement;  and in connection therewith,
cooperate  with the Trustee to effect such  changes to the  Indenture  as may be
required for the  Indenture to be so qualified in  accordance  with the terms of
the TIA and  execute,  and use  reasonable  best efforts to cause the Trustee to
execute,  all documents as may be required to effect such changes, and all other
forms and documents required to be filed with the SEC to enable the Indenture to
be so qualified in a timely manner.

            SECTION 4. HOLDER'S OBLIGATIONS.  Each Holder agrees, by acquisition
of the Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable  Securities  pursuant to a Registration
Statement or to receive a Prospectus  relating  thereto,  unless such Holder has
furnished  the Company and the  Guarantors  with a Notice and  Questionnaire  as
required pursuant to SECTION 2(d) hereof (including the information  required to
be included in such Notice and  Questionnaire)  and the information set forth in
the next sentence.  Each Notice Holder agrees promptly to furnish to the Company
and the Guarantors all information required to be disclosed in order to make the
information  previously  furnished  to the  Company and the  Guarantors  by such
Notice Holder not misleading, any other information regarding such Notice Holder
and the  distribution  of such  Registrable  Securities as may be required to be
disclosed in the Registration  Statement under applicable law or pursuant to SEC
comments  and  any  information  otherwise  required  by  the  Company  and  the
Guarantors to comply with  applicable  law or  regulations.  Each Holder further
agrees, following termination of the Effectiveness Period, to notify the Company
within  ten (10)  Business  Days of a  request,  of the  amount  of  Registrable
Securities sold pursuant to the Registration  Statement and, in the absence of a
response,  the Company and the  Guarantors  may assume that all of the  Holder's
Registrable Securities were so sold.

                                       12

            SECTION 5.  REGISTRATION  EXPENSES.  The Company and the  Guarantors
shall bear all fees and expenses  incurred in connection with the performance by
the Company and the Guarantors of its obligations under SECTIONS 2 and 3 of this
Agreement  whether  or not  any  of the  Registration  Statements  are  declared
effective.  Such fees and expenses shall include,  without  limitation,  (i) all
registration and filing fees (including,  without limitation,  fees and expenses
(x) with respect to filings required to be made with the National Association of
Securities Dealers, Inc. and (y) of compliance with federal and state securities
or Blue Sky laws to the extent such filings or compliance are required  pursuant
to  this  Agreement   (including,   without  limitation,   reasonable  fees  and
disbursements  of the counsel  specified in the next sentence in connection with
Blue Sky  qualifications  of the Registrable  Securities  under the laws of such
jurisdictions as the Notice Holders of a majority of the Registrable  Securities
being sold pursuant to a Registration  Statement may designate)),  (ii) printing
expenses (including,  without limitation,  expenses of printing certificates for
Registrable  Securities in a form eligible for deposit with The Depository Trust
Company),  (iii)  duplication  expenses  relating to copies of any  Registration
Statement  or  Prospectus  delivered  to any  Holders  hereunder,  (iv) fees and
disbursements  of counsel for the Company and the Guarantors in connection  with
the Shelf Registration  Statement,  and (v) reasonable fees and disbursements of
the  Trustee and its counsel and of the  registrar  and  transfer  agent for the
Common  Stock.  In  addition,  the  Company  and the  Guarantors  shall  bear or
reimburse the Notice Holders for the reasonable  fees and  disbursements  of one
firm of legal counsel for the Holders,  which shall, upon the written consent of
the Initial  Purchaser  (which shall not be unreasonably  withheld),  be another
nationally  recognized law firm experienced in securities law matters designated
by the Company and the Guarantors.  In addition,  the Company and the Guarantors
shall pay the internal  expenses of the Company and the  Guarantors  (including,
without  limitation,  all  salaries  and  expenses  of  officers  and  employees
performing  legal or accounting  duties),  the expense of any annual audit,  the
fees and expenses  incurred in  connection  with the listing of the  Registrable
Securities  on any  securities  exchange  on which  the same  securities  of the
Company  are then  listed and the fees and  expenses  of any  person,  including
special experts, retained by the Company and the Guarantors.

            SECTION 6. INDEMNIFICATION; CONTRIBUTION.

            (a) The Company and the Guarantors,  jointly and severally, agree to
indemnify and hold harmless the Initial Purchaser and each Holder of Registrable
Securities  and each person,  if any, who controls the Initial  Purchaser or any
Holder of Registrable  Securities within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, as follows:

            (i) against any and all loss,  liability,  claim, damage and expense
      whatsoever,  as incurred,  arising out of any untrue  statement or alleged
      untrue  statement  of  a  material  fact  contained  in  the  Registration
      Statement  (or any amendment or  supplement  thereto),  or the omission or
      alleged  omission  therefrom  of a  material  fact  required  to be stated
      therein or necessary in order to make the statements  therein, in light of
      the  circumstances  under which they were made,  not misleading or arising
      out of any untrue statement or alleged untrue statement of a material fact
      included in any preliminary prospectus or the Prospectus (or any amendment
      or supplement thereto), or the omission or alleged omission therefrom of a

                                       13

      material fact required to be stated  therein or necessary in order to make
      the statements therein, in the light of the circumstances under which they
      were made, not misleading;

            (ii) against any and all loss, liability,  claim, damage and expense
      whatsoever,  as incurred,  to the extent of the  aggregate  amount paid in
      settlement of any litigation,  or any  investigation  or proceeding by any
      governmental  agency or body,  commenced  or  threatened,  or of any claim
      whatsoever based upon any such untrue  statement or omission,  or any such
      alleged  untrue  statement or omission,  PROVIDED that (subject to SECTION
      6(d) below) any such settlement is effected with the prior written consent
      of the Company and the Guarantors; and

            (iii)  subject to SECTION  6(c)  below,  against any and all expense
      whatsoever, as incurred (including the fees and disbursements of counsel),
      reasonably  incurred in investigating,  preparing or defending against any
      litigation,  or any investigation or proceeding by any governmental agency
      or body,  commenced or threatened,  or any claim whatsoever based upon any
      such untrue statement or omission, or any such alleged untrue statement or
      omission,  to the  extent  that any such  expense is not paid under (i) or
      (ii) above;

PROVIDED,  HOWEVER,  that this indemnity  agreement shall not apply to any loss,
liability,  claim,  damage or expense to the  extent  arising  out of any untrue
statement or omission or alleged  untrue  statement or omission made in reliance
upon and in conformity with written information furnished to the Company and the
Guarantors by or on behalf of the Initial Purchaser,  such Holder of Registrable
Securities  (which also  acknowledges  the indemnity  provisions  herein) or any
person,  if any,  who  controls  the  Initial  Purchaser  or any such  Holder of
Registrable  Securities expressly for use in the Registration  Statement (or any
amendment  thereto),  or any  preliminary  prospectus or the  Prospectus (or any
amendment  or  supplement  thereto);   PROVIDED  FURTHER,  that  this  indemnity
agreement shall not apply to any loss,  liability,  claim, damage or expense (1)
arising  from an  offer or sale of  Registrable  Securities  occurring  during a
Deferral  Period,  if a  Deferral  Notice  was  given to such  Notice  Holder in
accordance  with SECTION 8(c), or (2) if the Holder fails to deliver at or prior
to the written  confirmation of sale, the most recent Prospectus,  as amended or
supplemented,  and such  Prospectus,  as  amended  or  supplemented,  would have
corrected  such untrue  statement  or omission or alleged  untrue  statement  or
omission of a material fact and the delivery thereof was required by law.

            (b) In  connection  with any Shelf  Registration  in which a Holder,
including,  without limitation, the Initial Purchaser, of Registrable Securities
is  participating,   in  furnishing  information  relating  to  such  Holder  of
Registrable  Securities to the Company and the  Guarantors in writing  expressly
for  use  in  such  Registration  Statement,  any  preliminary  prospectus,  the
Prospectus  or any  amendments  or  supplements  thereto,  the  Holders  of such
Registrable  Securities agree,  severally and not jointly, to indemnify and hold
harmless the Initial Purchaser and each person, if any, who controls the Initial
Purchaser  within the  meaning of either  Section  15 of the  Securities  Act or
Section 20 of the Exchange Act and the Company, the Guarantors, and each person,
if any, who controls the Company or the Guarantors  within the meaning of either
such Section,  against any and all loss,  liability,  claim,  damage and expense
described in the  indemnity  contained in  SUBSECTION  (a) of this  Section,  as
incurred,  but only with respect to untrue  statements or omissions,  or alleged

                                       14

untrue  statements  or  omissions,  made in the  Registration  Statement (or any
amendment  thereto),  or any  preliminary  prospectus or the  Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information  furnished to the Company and the Guarantors by or on behalf of such
Holder  of  Registrable   Securities  (which  also  acknowledges  the  indemnity
provisions  herein) or any  person,  if any,  who  controls  any such  Holder of
Registrable  Securities expressly for use in the Registration  Statement (or any
amendment  thereto) or such  preliminary  prospectus or the  Prospectus  (or any
amendment or supplement thereto).

            (c)  Each  indemnified  party  shall  give  notice  as  promptly  as
reasonably  practicable to each  indemnifying  party of any action or proceeding
commenced against it in respect of which indemnity may be sought hereunder,  but
failure to so notify an indemnifying  party shall not relieve such  indemnifying
party from any liability hereunder to the extent it is not materially prejudiced
as a result  thereof and in any event  shall not  relieve it from any  liability
which it may have otherwise than on account of these indemnity  provisions.  The
indemnifying  party, upon request of the indemnified party, shall retain counsel
reasonably  satisfactory to the  indemnified  party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
shall pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding,  any indemnified  party shall have the right to retain a
separate  firm as its own  counsel,  but the fees and  expenses of such  counsel
shall be at the expense of such  indemnified  party unless (i) the  indemnifying
party and the  indemnified  party shall have mutually agreed to the retention of
such counsel or (ii) the named  parties to any such  proceeding  (including  any
impleaded parties) include both the indemnifying party and the indemnified party
and  representation  of both parties by the same counsel would be  inappropriate
due to actual or potential  differing  interests  between them. It is understood
that the  indemnifying  party shall not, in respect of the legal expenses of any
indemnified  party in connection  with any proceeding or related  proceedings in
the same  jurisdiction,  be liable for (a) the  reasonable  fees and expenses of
more than one firm (in addition to any local counsel) for the Initial Purchaser,
Holders of  Registrable  Securities,  and all  persons,  if any, who control the
Initial  Purchaser or Holders of  Registrable  Securities  within the meaning of
either  Section 15 of the  Securities Act or Section 20 of the Exchange Act, (b)
the reasonable fees and expenses of more than one firm (in addition to any local
counsel) for the Company and the Guarantors,  their directors,  and each person,
if any, who controls the Company and the Guarantors within the meaning of either
such Section, and that all such reasonable fees and expenses shall be reimbursed
as they are  incurred.  In the event a separate firm is retained for the Initial
Purchaser, Holders of Registrable Securities, and control persons of the Initial
Purchaser and Holders of Registrable  Securities,  such firm shall be designated
in writing by the Initial  Purchaser.  In the event a separate  firm is retained
for the Company and the  Guarantors,  and such  directors,  officers and control
persons of the  Company and the  Guarantors,  such firm shall be  designated  in
writing by the Company and the Guarantors.  No indemnifying party shall, without
the prior written  consent of the indemnified  parties,  settle or compromise or
consent to the entry of any  judgment  with  respect to any  litigation,  or any
investigation  or proceeding by any  governmental  agency or body,  commenced or
threatened,  or any claim  whatsoever  in  respect of which  indemnification  or
contribution  could  be  sought  under  this  SECTION  6  (whether  or  not  the
indemnified  parties  are actual or  potential  parties  thereto),  unless  such
settlement,  compromise or consent (i) includes an unconditional release of each
indemnified   party  from  all  liability   arising  out  of  such   litigation,

                                       15

investigation,  proceeding  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) If at any time an  indemnified  party  shall have  requested  an
indemnifying  party to reimburse the indemnified  party for fees and expenses of
counsel,  such  indemnifying  party  agrees  that it  shall  be  liable  for any
settlement of the nature  contemplated by SECTION 6(a)(ii)  effected without its
written  consent if (i) such  settlement is entered into more than 60 days after
receipt by such indemnifying party of aforesaid request,  (ii) such indemnifying
party  shall  have  received  notice  of the terms of such  settlement  at least
forty-five (45) days prior to such settlement  being entered into and (iii) such
indemnifying   party  shall  not  have  reimbursed  such  indemnified  party  in
accordance with such request prior to the date of such settlement; PROVIDED that
an  indemnifying  party  shall not be liable  for any such  settlement  effected
without its consent if such  indemnifying  party (1) reimburses such indemnified
party in accordance with such request to the extent it considers such request to
be  reasonable  and  (2)  provides  written  notice  to  the  indemnified  party
describing  any unpaid  balance it  believes  is  unreasonable  and the  reasons
therefor, in each case prior to the date of such settlement.

            (e) If the indemnification to which an indemnified party is entitled
under this SECTION 6 is for any reason  unavailable to or insufficient  although
applicable in accordance with its terms to hold harmless an indemnified party in
respect of any losses,  liabilities,  claims,  damages or  expenses  referred to
therein,  then each indemnifying  party shall contribute to the aggregate amount
of such  losses,  liabilities,  claims,  damages and  expenses  incurred by such
indemnified party, as incurred,  in such proportion as is appropriate to reflect
the relative fault of the  indemnifying  party or parties on the one hand and of
the  indemnified  party on the other hand in connection  with the  statements or
omissions  which  resulted  in such  losses,  liabilities,  claims,  damages  or
expenses, as well as any other relevant equitable considerations.

            The relative fault of the Company and the Guarantors on the one hand
and the Holders of the  Registrable  Securities or the Initial  Purchaser on the
other hand shall be determined by reference to, among other things,  whether any
such  untrue or alleged  untrue  statement  of a material  fact or  omission  or
alleged omission to state a material fact relates to information supplied by the
Company and the Guarantors or by the Holder of the Registrable Securities or the
Initial  Purchaser  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
contribution  pursuant  to  this  SECTION  6(e)  were  determined  by  pro  rata
allocation or by any other method of  allocation  which does not take account of
the  equitable  considerations  referred  to above  in this  SECTION  6(e).  The
aggregate amount of losses, liabilities,  claims, damages, and expenses incurred
by an  indemnified  party and  referred to above in this  SECTION  6(e) shall be
deemed to include any out-of-pocket  legal or other expenses reasonably incurred
by such indemnified party in  investigating,  preparing or defending against any
litigation,  or any  investigation or proceeding by any  governmental  agency or
body,  commenced  or  threatened,  or any claim  whatsoever  based upon any such
untrue or alleged untrue statement or omission or alleged omission.

            Notwithstanding the provisions of this SECTION 6, neither the Holder
of any Registrable  Securities nor the Initial  Purchaser,  shall be required to
indemnify  or  contribute  any amount in excess of the amount by which the total

                                       16

price at which the  Registrable  Securities  sold by such Holder of  Registrable
Securities or by the Initial  Purchaser,  as the case may be, and distributed to
the public were  offered to the public  exceeds  the amount of any damages  that
such Holder of  Registrable  Securities  or the Initial  Purchaser 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.

            For purposes of this SECTION 6(e), each person, if any, who controls
the Initial Purchaser or any Holder of Registrable Securities within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to  contribution  as the Initial  Purchaser or such Holder,  and
each person,  if any, who  controls  the Company and the  Guarantors  within the
meaning of Section 15 of the  Securities  Act or Section 20 of the  Exchange Act
shall have the same rights to contribution as the Company and the Guarantors.

            SECTION 7. INFORMATION REQUIREMENTS.  The Company and the Guarantors
covenant  that,  if at any time before the end of the  Effectiveness  Period the
Company and the Guarantors are not subject to the reporting  requirements of the
Exchange Act, they will cooperate with any Holder of Registrable  Securities and
take such further reasonable action as any Holder of Registrable  Securities may
reasonably  request in  writing  (including,  without  limitation,  making  such
reasonable  representations as any such Holder 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 Rule 144 and Rule 144A  under the  Securities  Act and  customarily  taken in
connection with sales pursuant to such  exemptions.  Upon the written request of
any Holder of  Registrable  Securities,  the  Company and the  Guarantors  shall
deliver to such Holder a written statement as to whether they have complied with
such  filing  requirements,  unless such a  statement  has been  included in the
Company's most recent report  required to be filed and filed pursuant to Section
13 or Section 15(d) of Exchange Act.  Notwithstanding the foregoing,  nothing in
this  SECTION 7 shall be deemed to require the  Company to  register  any of its
securities under any section of the Exchange Act.

            SECTION 8. MISCELLANEOUS.

            (a) NO  CONFLICTING  AGREEMENTS.  The Company and the Guarantors are
not, as of the date hereof,  parties to, nor shall they, on or after the date of
this  Agreement,  enter  into,  any  agreement  with  respect  to the  Company's
securities  that conflicts with the rights granted to the Holders of Registrable
Securities  in this  Agreement.  The Company and the  Guarantors  represent  and
warrant  that the  rights  granted  to the  Holders  of  Registrable  Securities
hereunder do not in any way conflict  with the rights  granted to the holders of
the Company's securities under any other agreements.

            (b)  AMENDMENTS  AND  WAIVERS.  The  provisions  of this  Agreement,
including  the  provisions  of this  sentence,  may not be amended,  modified or
supplemented,  and waivers or consents to departures from the provisions  hereof
may not be given,  unless the  Company  and the  Guarantors  have  obtained  the
written  consent of Holders of a  majority  of the then  outstanding  Underlying

                                       17

Common Stock constituting  Registrable  Securities (with Holders of Notes deemed
to be the Holders,  for purposes of this Section,  of the number of  outstanding
shares  of  Underlying  Common  Stock  into  which  such  Notes  are or would be
convertible or  exchangeable as of the date on which such consent is requested).
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof  with  respect  to a matter  that  relates  exclusively  to the rights of
Holders of Registrable  Securities whose securities are being sold pursuant to a
Registration  Statement  and that does not  directly  or  indirectly  affect the
rights of other Holders of Registrable  Securities may be given by Holders of at
least a  majority  of the  Registrable  Securities  being  sold by such  Holders
pursuant to such  Registration  Statement;  PROVIDED that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence. Each Holder of Registrable
Securities  outstanding  at  the  time  of  any  such  amendment,  modification,
supplement,  waiver  or  consent  or  thereafter  shall  be  bound  by any  such
amendment, modification, supplement, waiver or consent effected pursuant to this
SECTION  8(b),  whether or not any notice,  writing or marking  indicating  such
amendment,   modification,   supplement,   waiver  or  consent  appears  on  the
Registrable Securities or is delivered to such Holder.

            (c) NOTICES.  All notices and other  communications  provided for or
permitted hereunder shall be made in writing by hand delivery, by telecopier, by
courier  guaranteeing  overnight delivery or by first-class mail, return receipt
requested,  and shall be deemed given (i) when made,  if made by hand  delivery,
(ii) upon confirmation,  if made by telecopier, (iii) one (1) Business Day after
being deposited with such courier,  if made by overnight  courier or (iv) on the
date  indicated on the notice of receipt,  if made by  first-class  mail, to the
parties as follows:

            (A) if to a Holder of  Registrable  Securities  that is not a Notice
Holder,  at the  address for such Holder then  appearing  in the  Registrar  (as
defined in the Indenture);

            (B) if to a Notice Holder, at the most current address given by such
Holder to the Company in a Notice and Questionnaire or any amendment thereto;

                if to the Company and the Guarantors, to:

                                    Empire Resorts, Inc.
                                    c/o Monticello Raceway, Route 17B
                                    Monticello, NY  12701
                                    Telephone No.  (845) 794-4100
                                    Facsimile No.  [________]
                                    Attention: President

                                       18

                        and

                                   Olshan Grundman Frome Rosenzwig & Wolosky LLP
                                   Park Avenue Tower
                                   65 East 55th Street
                                   New York, NY  10022
                                   Telephone No.  (212) 451-2220
                                   Facsimile No.  (212) 451-2222
                                   Attention: Robert H. Friedman

                        and

                        if to the Initial Purchaser, to:

                                   Jefferies & Company, Inc.
                                   650 Poydras Street, Suite 2215
                                   New Orleans, LA  70130
                                   Telephone No.  (504) 681-5710
                                   Facsimile No.  (504) 681-5768
                                   Attention: Steve Croxton

                        and

                                   Mayer, Brown, Rowe and Maw LLP
                                   1675 Broadway
                                   New York, NY  10019
                                   Telephone No.  (212) 506-2500
                                   Facsimile No.  (212) 262-9190
                                   Attention: Ronald S. Brody

or to such other address as such person may have  furnished to the other persons
identified in this SECTION 8(c) in writing in accordance herewith.

            (d) APPROVAL OF HOLDERS. Whenever the consent or approval of Holders
of a specified  percentage  of  Registrable  Securities  is required  hereunder,
Registrable  Securities  held  by  the  Company  and  the  Guarantors  or  their
Affiliates  (other  than  the  Initial   Purchaser  or  subsequent   Holders  of
Registrable  Securities  if  such  subsequent  Holders  are  deemed  to be  such
affiliates  solely by reason of their holdings of such  Registrable  Securities)
shall not be counted in  determining  whether such consent or approval was given
by the Holders of such required percentage.

            (e)  SUCCESSORS  AND  ASSIGNS.  This  Agreement  shall  inure to the
benefit of and be binding upon the successors and assigns of each of the parties
and, without requiring any express assignment, shall inure to the benefit of and
be binding upon each Holder of any Registrable Securities.

                                       19

            (f)  COUNTERPARTS.  This  Agreement may be executed in any number of
counterparts and by the parties hereto in separate  counterparts,  each of which
when so executed  shall be deemed to be original and all of which taken together
shall constitute one and the same agreement.

            (g) HEADINGS.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

            (h) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

            (i) SEVERABILITY. If any term, provision, covenant or restriction of
this  Agreement  is held to be  invalid,  illegal,  void or  unenforceable,  the
remainder of the terms, provisions,  covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected,  impaired
or invalidated  thereby,  and the parties hereto shall use their best efforts to
find and employ an alternative  means to achieve the same or  substantially  the
same  result  as  that  contemplated  by  such  term,  provision,   covenant  or
restriction,  it being  intended  that all of the rights and  privileges  of the
parties shall be enforceable to the fullest extent permitted by law.

            (j) ENTIRE AGREEMENT. This Agreement is intended by the parties as a
final  expression  of their  agreement  and is  intended  to be a  complete  and
exclusive  statement of the agreement and understanding of the parties hereto in
respect of the  subject  matter  contained  herein and the  registration  rights
granted by the  Company  and the  Guarantors  with  respect  to the  Registrable
Securities.  Except  as  provided  in  the  Purchase  Agreement,  there  are  no
restrictions,  promises, warranties or undertakings,  other than those set forth
or referred to herein,  with respect to the  registration  rights granted by the
Company and the  Guarantors  with respect to the  Registrable  Securities.  This
Agreement  supersedes all prior  agreements and  undertakings  among the parties
with respect to such registration rights.

            (k)  TERMINATION.  This Agreement and the obligations of the parties
hereunder shall terminate upon the end of the Effectiveness  Period,  except for
any liabilities or obligations under SECTIONS 4, 5 or 6 hereof,  the obligations
to make payments of and provide for liquidated damages under SECTION 2(e) hereof
to the extent such damages accrue prior to the end of the Effectiveness  Period,
each of which shall remain in effect in accordance with its terms.

                                       20

            IN WITNESS  WHEREOF,  the parties have  executed  this  Registration
Rights Agreement as of the date first written above.

                                         Very truly yours,

                                         EMPIRE RESORTS, INC.

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  Chief Financial Officer

                                         ALPHA MONTICELLO, INC.

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  President

                                         ALPHA CASINO MANAGEMENT INC.

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  President

                                         MOHAWK MANAGEMENT, LLC

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  President

                                         MONTICELLO CASINO MANAGEMENT, LLC

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  Manager

                                         MONTICELLO RACEWAY DEVELOPMENT COMPANY,
                                         LLC

                                         By /s/ Scott A. Kaniewski
                                            ------------------------------------
                                            Name:   Scott A. Kaniewski
                                            Title:  Manager

                                         MONTICELLO RACEWAY MANAGEMENT, INC.

                                         By /s/ Thomas W. Aro
                                            ------------------------------------
                                            Name:   Thomas W. Aro
                                            Title:  President

Accepted as of the date
first above written:

JEFFERIES & COMPANY, INC.

By:/s/ M. Brent Stevens
   -----------------------
   Name:  M. Brent Stevens
   Title: Executive Vice President

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