Document:

Amended & Restated Credit Agreement 9-23-05

    

      EXECUTION
        COPY

      

      

      

      

      AMENDED
AND
        RESTATED

      CREDIT
        AGREEMENT

      

      DATED
        AS OF SEPTEMBER 23, 2005

      

      AMONG

      

      CHURCHILL
        DOWNS INCORPORATED,

      

      THE
        LENDERS,

      

      THE
        GUARANTORS,

      

      AND

      

      JPMORGAN
        CHASE BANK, N.A.

      (successor
        by merger to Bank One, NA)

      AS
        AGENT AND COLLATERAL AGENT

      

      WITH

      

      PNC
        BANK, NATIONAL ASSOCIATION

      AS
        SYNDICATION AGENT

      

      AND

      

      NATIONAL
        CITY BANK OF KENTUCKY

      AS
        DOCUMENTATION AGENT

      

      _______________________________________________________________

      

      J.P.
        MORGAN SECURITIES INC. AND PNC CAPITAL MARKETS, INC.

      AS
        CO-LEAD ARRANGERS AND JOINT BOOK RUNNERS

      

      

      

      

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      TABLE
        OF CONTENTS

      

       

      ARTICLE
        I. DEFINITIONS 

       

      ARTICLE
        II. THE CREDITS 

      2.1 Revolving
        Loan Commitment

      2.2 Swing
        Line Loans.

      2.2.1 Amount
        of
        Swing Line Loans.

      2.3.2 Borrowing
        Notice.

      2.2.3 Making
        of
        Swing Line Loans.

      2.2.4 Repayment
        of Swing Line Loans

      2.2.5 Working
        Cash Sweep Rider

      2.3 Letter
        of
        Credit Subfacility.

      2.3.1 Issuance.

      2.3.2 Participations.

      2.3.3 Notice

      2.3.4 LC
        Fees

      2.3.5 Administration;
        Reimbursement by Lenders

      2.3.6
         Reimbursement
        by Borrower

      2.3.7 Obligations
        Absolute

      2.3.8
         Actions
        of LC Issuer

      2.3.9 Indemnification

      2.3.10 Lenders'
        Indemnification

      2.3.11 Facility
        LC Collateral Account

      2.3.12 Rights
        as
        a Lender

      2.4 Required
        Payments; Termination

      2.5 Ratable
        Loans

      2.6 Types
        and
        Number of Eurodollar Advances

      2.7 Commitment
        Fee; Reductions in Aggregate Commitment

      2.8 Minimum
        Amount of Each Advance

      2.9 Optional
        Principal Payments

      2.10 Method
        of
        Selecting Types and Interest Periods for New Advances

      2.11 Conversion
        and Continuation of Outstanding Advances

      2.12 Changes
        in Interest Rate, etc

      2.13 Rates
        Applicable After Default

      2.14 Method
        of
        Payment

      2.15 Noteless
        Agreement; Evidence of Indebtedness

      2.16 Telephonic
        Notices

      2.17 Interest
        Payment Dates; Interest and Fee Basis

      2.18 Notification
        of Advances, Interest Rates, Prepayments and Commitment Reductions

      2.19 Lending
        Installations

      2.20 Non-Receipt
        of Funds by the Agent

      2.21 Replacement
        of Lender

      2.22 Increase
        in Commitments

      2.22.1
         Amount
        of
        Increase in Commitments

      2.22.2
         Eligibility

      2.22.3
         Notice

      2.22.4 Minimum
        Amount

      2.22.5 Implementation
        of Increase

       

      ARTICLE
        III. YIELD PROTECTION; TAXES 

      3.1 Yield
        Protection

      3.2 Changes
        in Capital Adequacy Regulations

      3.3 Availability
        of Types of Advances

      3.4 Funding
        Indemnification

      3.5 Taxes

      3.6 Lender
        Statements; Survival of Indemnity

       

      ARTICLE
        IV. CONDITIONS PRECEDENT 

      4.1. Initial
        Credit Extension

      4.2 Each
        Credit Extension

       

      ARTICLE
        V. REPRESENTATIONS AND WARRANTIES 

      5.1 Existence
        and Standing

      5.2 Authorization
        and Validity

      5.3 No
        Conflict; Government Consent

      5.4 Financial
        Statements

      5.5 Material
        Adverse Change

      5.6 Taxes

      5.7 Litigation and
        Contingent Obligations

      5.8 Subsidiaries

      5.9 ERISA

      5.10 Accuracy
        of Information

      5.11 Regulation
        U

      5.12 Material
        Agreements

      5.13 Compliance
        With Laws

      5.14 Ownership
        of Properties

      5.15 Plan
        Assets; Prohibited Transactions

      5.16 Environmental
        Matters

      5.17 Investment
        Company Act

      5.18 Public
        Utility Holding Company Act

      5.19 Post-Retirement
        Benefits

      5.20 Insurance

      5.21 Solvency

      5.22 Intellectual
        Property

      5.23 Properties

      5.24 Operating
        Locations

      5.25 Certain
        Licenses.

      5.26 Predecessor
        Entities of the Loan Parties

       

      ARTICLE
        VI. COVENANTS 

      6.1 Financial
        Reporting

      6.2 Use
        of
        Proceeds

      6.3 Notice
        of
        Default

      6.4 Conduct
        of Business

      6.5 Taxes

      6.6 Insurance

      6.7 Compliance
        with Laws

      6.8 Maintenance
        of Properties

      6.9 Inspection

      6.10 Indebtedness

      6.11 Merger

      6.12 Sale
        of
        Assets

      6.13 Investments
        and Acquisitions

      6.14 Subsidiaries

      6.15 Certain
        Transactions

      6.16. Liens

      6.17. Intentionally
        Omitted51

      6.18. Rentals

      6.19. Affiliates

      6.20 No
        Prepayment of Material Indebtedness

      6.21 Recordation
        of Calder Mortgage

      6.22 Financial
        Contracts

      6.23 Sale
        and
        Leaseback Transactions and other Off-Balance Sheet Liabilities

      6.24. Financial
        Covenants

      6.25 Loan
        Parties shall enter into Collateral Documents

      6.26 Maintenance
        of Patents, Trademarks, Etc.

      6.27 Plans
        and
        Benefit Arrangements

      6.28 Compliance
        with Laws

      6.29 Further
        Assurances

      6.30 Subordination
        of Intercompany Loans

      6.31 Plans
        and
        Benefit Arrangements

      6.32 Issuance
        of Stock

      6.33 Changes
        in Organizational Documents

      6.35 Other
        Agreements

      6.36 Preservation
        of Existence.

       

      ARTICLE
        VII. DEFAULTS 

       

      ARTICLE
        VIII. ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES 

      8.1 Acceleration;
        Facility LC Collateral Accounts

      8.2 Amendments

      8.3 Preservation
        of Rights

       

      ARTICLE
        IX. GENERAL PROVISIONS 

      9.1 Survival
        of Representations

      9.2 Governmental
        Regulation

      9.3 Headings

      9.4 Entire
        Agreement

      9.5 Several
        Obligations; Benefits of this Agreement

      9.6 Expenses;
        Indemnification

      9.7 Numbers
        of Documents

      9.8 Accounting

      9.9 Severability
        of Provisions

      9.10 Nonliability
        of Lenders

      9.11 Confidentiality

      9.12 Nonreliance

      9.13 Disclosure

      9.14 Joinder
        of Guarantors

      9.15 Business
        Days

      9.16 No
        Course
        of Dealing

      9.17 Waivers
        by the Borrower

      9.18 Incorporation
        by Reference

      9.19
         USA
        Patriot Act Notification

       

      ARTICLE
        X. THE AGENT 

      10.1 Appointment;
        Nature of Relationship

      10.2 Powers

      10.3 General
        Immunity

      10.4 No
        Responsibility for Loans, Recitals, etc.

      10.5 Action
        on
        Instructions of Lenders

      10.6 Employment
        of Agents and Counsel

      10.7 Reliance
        on Documents; Counsel

      10.8 Agent's
        Reimbursement and Indemnification

      10.9 Notice
        of
        Default

      10.10 Rights
        as
        a Lender

      10.11 Lender
        Credit Decision

      10.12 Successor
        Agent

      10.13 Agent
        and
        Arranger Fees.

      10.14 Delegation
        to Affiliates

      10.15 Execution
        of Collateral Documents

      10.16 Collateral
        Releases

      10.17. Co-Agents,
        Documentation Agent, Syndication Agent, etc

       

      ARTICLE
        XI. SETOFF; RATABLE PAYMENTS 

      11.1 Setoff

      11.2 Ratable
        Payments

       

      ARTICLE
        XII. BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS 

      12.1 Successors
        and Assigns

      12.2 Participations

      12.2.1 Permitted
        Participants; Effect

      12.2.2 Voting
        Rights

      12.2.3 Benefit
        of Certain Provisions

      12.3 Assignments

      12.3.1 Permitted
        Assignments

      12.3.2 Consents

      12.3.3 Effect;
        Effective Date

      12.3.4 Register

      12.4 Dissemination
        of Information

      12.5 Tax
        Treatment

       

      ARTICLE
        XIII. NOTICES 

      13.1 Notices

      13.2 Change
        of
        Address

       

      ARTICLE
        XIV. COUNTERPARTS; INTEGRATION; EFFECTIVENESS 

       

      ARTICLE
        XV. CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
        TRIAL 

      15.1 Choice
        of
        Law

      15.2 Consent
        to Jurisdiction

      15.3 Waiver
        of
        Jury Trial

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Exhibit
        A Borrower’s
        Counsel Opinion Requirements

      Exhibit
        B Compliance
        Certificate

      Exhibit
        C Form
        of Assignment and Assumption Agreement

      Exhibit
        D Loan/Credit
        Related Money Transfer Instructions

      Exhibit
        E Form
        of Note

      Exhibit
        F Form
        of Notice of Acquisition

      Exhibit
        G Intentionally
        Omitted

      Exhibit
        H Form
        of Intercompany Subordination Agreement 

      Exhibit
        I Forms
        of Mortgages and Deeds of Trust

      Exhibit
        J Form
        of Negative Pledge Agreement

      Exhibit
        K Form
        of Pledge and Security Agreement

      Exhibit
        L Form
        of Lender Joinder

      Exhibit
        M Form
        of Acquisition Compliance Certificate

      Exhibit
        N Form
        of Guarantor Joinder

      Exhibit
        O Form
        of Investment Compliance Certificate

      Exhibit
        P Form
        of Certificate of Chief Financial Officer

      Exhibit
        Q Form
        of Reimbursement Agreement

      Exhibit
        R Form
        of Borrowing Notice

      Exhibit
        S Form
        of Notice of Continuation / Conversion

      Schedule
        1 Subsidiaries
        and other Investments

      Schedule
        2 Indebtedness
        and Liens

      Schedule
        3 Less
        Than 100% Subsidiaries

      Schedule
        4.1(i)(p) Jurisdiction
        for Personal Property Searches

      Schedule
        4.1(i)(q) Certain
        Required Third Party Consents

      Schedule
        5.22 Intellectual
        Property

      Schedule
        5.23 Real
        Property

      Schedule
        5.24 Operating
        Locations

      Schedule
        5.25 Licenses

      Schedule
        5.26 Predecessor
        Entities

      Schedule
        6(a) Louisiana
        Mortgages

      Schedule
        6.22 Existing
        Rate Management Transactions

      
        
          
          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

      

      

      

      AMENDED
        AND RESTATED CREDIT AGREEMENT

      

      This
        Amended and Restated Credit Agreement, dated as of September 23, 2005, is
        among
        CHURCHILL DOWNS INCORPORATED, the GUARANTORS party hereto, the LENDERS party
        hereto, the DEPARTING LENDERS, if any, party hereto and JPMORGAN CHASE BANK,
        N.A. (successor by merger to Bank One, NA), a national banking association,
        as
        AGENT and as COLLATERAL AGENT to amend and restate the Previous Credit
        Agreement, which is hereby amended and restated in its entirety.

      

      WHEREAS,
        the Borrower has requested, and the Agent, the Collateral Agent, the Departing
        Lenders and the Lenders have agreed, to amend the Previous Credit
        Agreement;

       

      WHEREAS,
        the Borrower, the Lenders, the Departing Lenders, the Collateral Agent and
        the
        Agent have agreed (a) to enter into this Agreement in order to (i) amend
        and
        restate the Previous Credit Agreement in its entirety; (ii) re-evidence the
        Obligations, which shall be repayable in accordance with the terms of this
        Agreement; and (iii) set forth the terms and conditions under which the Lenders
        will, from time to time, make loans and extend other financial accommodations
        to
        or for the benefit of the Borrower and (b) that each Departing Lender shall
        cease to be a party to the Previous Credit Agreement, as evidenced by its
        execution and delivery of its Departing Lender Signature Page; and

       

      WHEREAS,
        it is the intention of the parties to this Agreement that this Agreement
        not
        constitute a novation and that, from and after the Closing Date, the Previous
        Credit Agreement shall be amended and restated hereby and all references
        herein
        to “hereunder,”“hereof,” or words of like import and all references in any other
        Loan Document to the “Credit Agreement” or words of like import shall mean and
        be a reference to the Previous Credit Agreement as amended and restated hereby
        (and any section references to the Previous Credit Agreement shall refer
        to the
        applicable equivalent provision set forth herein although the section number
        thereof may have changed);

       

      NOW,
        THEREFORE, in consideration of the terms and conditions contained herein,
        and of
        any loans or extensions of credit heretofore, now or hereafter made to or
        for
        the benefit of the Borrower by the Lenders and the Agent, the parties hereto
        agree as follows:

       

      ARTICLE
        I

      

      DEFINITIONS

      

      

      
        	1.1  	
                Certain
                  Defined Terms.
                  As used in this Agreement:

              

      

       

      "Acquisition"
        means any transaction, or any series of related transactions, consummated
        on or
        after the date of this Agreement, by which the Borrower or any other Loan
        Party
        (i) acquires any going business or all or substantially all of the assets
        of any
        Person, or division thereof, whether through purchase of assets, merger or
        otherwise or (ii) directly or indirectly acquires (in one transaction or
        as the
        most recent transaction in a series of transactions) at least a majority
        (in
        number of votes) of the securities of a corporation which have ordinary voting
        power for the election of directors (other than securities having such power
        only by reason of the happening of a contingency) or a majority (by percentage
        or voting power) of the outstanding ownership interests of a partnership
        or
        limited liability company.

      

      "Acquisition
        Compliance Certificate" has the meaning given it in Section 6.13.

      

      “Adjusted
        EBITDA” of any person for any period means the EBITDA for that Person for that
        period adjusted on a pro forma basis for the EBITDA of acquired or divested
        operations, provided
        that any
        EBITDA of Churchill Downs Louisiana Horseracing Company, L.L.C., Churchill
        Downs
        Louisiana Video Poker Company, L.L.C. and Video Services, Inc. (whether positive
        or negative) for any period prior to October 14, 2004 will not be included
        in
        the Adjusted EBITDA of those entities.

      

      "Advance"
        means a borrowing hereunder, (i) made by the Lenders on the same Borrowing
        Date,
        or (ii) converted or continued by the Lenders on the same date of conversion
        or
        continuation, consisting, in either case, of the aggregate amount of the
        several
        Loans of the same Type and, in the case of Eurodollar Loans, for the same
        Interest Period. The term "Advance" shall include Swing Line Loans unless
        otherwise expressly provided.

      

      "Affected
        Lender" has the meaning given it in Section 2.21.

      

      "Affiliate"
        of any Person means any other Person directly or indirectly controlling,
        controlled by or under common control with such Person. A Person shall be
        deemed
        to control another Person if the controlling Person owns 10% or more of any
        class of voting securities (or other ownership interests) of the controlled
        Person or possesses, directly or indirectly, the power to direct or cause
        the
        direction of the management or policies of the controlled Person, whether
        through ownership of stock, by contract or otherwise.

      

      "Agent"
        means JPMorgan in its capacity as contractual representative of the Lenders
        pursuant to Article X, and not in its individual capacity as a Lender, and
        any
        successor Agent appointed pursuant to Article X.

      

      "Aggregate
        Commitment" means the aggregate of the Commitments of all the Lenders, as
        reduced or increased from time to time pursuant to the terms
        hereof.

      

      "Aggregate
        Outstanding Credit Exposure" means, at any time, the aggregate of the
        Outstanding Credit Exposure of all the Lenders.

      

      "Agreement"
        means this Amended and Restated Credit Agreement, as it may be amended or
        modified and in effect from time to time.

      

      "Agreement
        Accounting Principles" means generally accepted accounting principles as
        in
        effect from time to time, applied in a manner consistent with that used in
        preparing the financial statements referred to in Section 5.4.

      

      "Alternate
        Base Rate" means, for any day, a rate of interest per annum equal to the
        higher
        of (a) the Prime Rate in effect for such date and (b) the sum of the Federal
        Funds Effective Rate in effect for such day plus 1/2% per annum. 

      

      "Applicable
        Fee Rate" means, at any time, the percentage rate per annum at which the
        Commitment Fee is accruing on the unused portion of the Aggregate Commitment
        at
        such time as set forth in the Pricing Schedule.

      

      "Applicable
        Margin" means, with respect to Advances of any Type at any time, the percentage
        rate per annum which is applicable at such time with respect to Advances
        of such
        Type as set forth in the Pricing Schedule.

      

      "Approved
        Fund" means any Fund that is administered or managed by (a) a Lender, (b)
        an
        Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
        administers or manages a Lender.

      

      "Arranger"
        means collectively, J.P. Morgan Securities Inc., and its successors, and
        PNC
        Capital Markets, Inc., a Pennsylvania corporation, and its successors, in
        their
        capacity as Co-Lead Arrangers and Joint Book Runners.

      

      "Assignment
        of Patents, Trademarks and Copyrights" shall mean the Assignment of Patents,
        Trademarks and Copyrights from time to time executed by the Loan Parties
        in
        favor of the Collateral Agent, as amended, restated, supplemented or otherwise
        modified from time to time.

      

      "Article"
        means an article of this Agreement unless another document is specifically
        referenced.

      

      "Authorized
        Officer" means any of the chief
        executive officer, chief financial officer, any executive vice president,
        any
        senior vice president, the treasurer, and any other officer designated as
        such
        by the board of directors of the Borrower,
        acting
        singly.

      

      "Available
        Aggregate Commitment" means, at any time, the Aggregate Commitment then in
        effect minus the Aggregate Outstanding Credit Exposure at such
        time.

      

      "Benefit
        Arrangement" shall mean at any time an "employee benefit plan," within the
        meaning of Section 3(3) of ERISA, which is neither a Plan nor a
        Multiemployer Plan and which is maintained, sponsored or otherwise contributed
        to by any member of the Controlled Group.

      

      "Borrower"
        means Churchill Downs Incorporated, a Kentucky corporation, and its successors
        and assigns. 

      

      "Borrowing
        Date" means a date on which an Advance is made hereunder.

      

      "Borrowing
        Notice" is defined in Section 2.10, and shall be in a form satisfactory to
        the
        Agent, generally in the form of Exhibit
        R.

      

      "Business
        Day" means (i) with respect to any borrowing, payment or rate selection of
        Eurodollar Advances, a day (other than a Saturday or Sunday) on which banks
        generally are open in Louisville and New York City for the conduct of
        substantially all of their commercial lending activities, interbank wire
        transfers can be made on the Fedwire system and dealings in United States
        dollars are carried on in the London interbank market and (ii) for all other
        purposes, a day (other than a Saturday or Sunday) on which banks generally
        are
        open in Louisville for the conduct of substantially all of their commercial
        lending activities and interbank wire transfers can be made on the Fedwire
        system.

      

      "CDMC"
        shall mean Churchill Downs Management Company, a Kentucky corporation, and
        wholly owned subsidiary of the Borrower.

      

      "Calder"
        means Calder Race Course, Inc., a Florida corporation.

       

      “Calder
        Financing Statements” is defined in Section 6.21.

       

      "Calder
        Mortgage" means the Mortgage executed by Calder in favor of the Collateral
        Agent
        with respect to the Real Property owned by Calder. Calder executed the Calder
        Mortgage and delivered such Calder Mortgage to the Agent on the Previous
        Closing
        Date in a form sufficient for recordation and the Agent may hereafter record
        such Mortgage at any time pursuant to Section 6.21.

       

      "Capitalized
        Lease" of a Person means any lease of Property by such Person as lessee which
        would be capitalized on a balance sheet of such Person prepared in accordance
        with Agreement Accounting Principles.

      

      "Capitalized
        Lease Obligations" of a Person means the amount of the obligations of such
        Person under Capitalized Leases which would be shown as a liability on a
        balance
        sheet of such Person prepared in accordance with Agreement Accounting
        Principles.

      

      "Cash
        Equivalent Investments" means (i) short-term obligations of, or fully guaranteed
        by, the United States of America, (ii) commercial paper rated A-1 or better
        by
        S&P or P-1 or better by Moody's, (iii) demand deposit accounts maintained in
        the ordinary course of business, and (iv) certificates of deposit issued
        by and
        time deposits with commercial banks (whether domestic or foreign) having
        capital
        and surplus in excess of $100,000,000; provided
        in each
        case that the same provides for payment of both principal and interest (and
        not
        principal alone or interest alone) and is not subject to any contingency
        regarding the payment of principal or interest.

      

      "Change
        in Control" means the occurrence of any of the following: Any person (as
        such
        term is used in Section 13(d) and Section 14(d)(2) of the Exchange
        Act
        as in effect on the date of the Closing Date) or related Persons constituting
        a
        group (as such term is used in Rule 13d-5 under the Exchange Act),
        other
        than a group including, and under the general supervision of, the Excluded
        Group:
        (i)
        become the "beneficial owners" (as such term is used in Rule 13d-3
        under
        the Exchange Act as in effect on the date of the Closing Date), directly
        or
        indirectly, of more than 50% of the total voting power of all classes then
        outstanding of the voting stock or membership or other equity interests of
        the
        Borrower, or (ii)
        acquire after the date of the Closing Date (x) the power to elect, appoint
        or
        cause the election or appointment of at least a majority of the members of
        the
        board of directors of the Borrower, through beneficial ownership of the capital
        stock of the Borrower or otherwise, or (y) all or substantially all of the
        properties and assets of the Borrower.

      

      "Change"
        has the meaning given it in Section 3.2.

      

      "Closing
        Date" means September 23, 2005.

      

      "Code"
        means the Internal Revenue Code of 1986, as amended, reformed or otherwise
        modified from time to time.

      

      "Collateral"
        means and includes, collectively but without limitation, all property and
        assets
        in which the Loan Parties grant the Collateral Agent for the benefit of the
        Lenders an interest as collateral or other security for all or any of the
        Secured Obligations, whether real or personal property, whether granted directly
        or indirectly, whether granted now or in the future, and whether granted
        in the
        form of a security interest, mortgage, deed of trust, assignment, pledge,
        chattel mortgage, chattel trust, factor's lien, equipment trust, conditional
        sale, trust receipt, lien, charge, lien or title retention, contract, lease
        or
        consignment agreement intended as a security device, or any other security
        or
        lien interest whatsoever, whether created by law, contract or otherwise and
        is
        intended to and shall include all real and personal property, tangible and
        intangible, of the Loan Parties; provided,
        however,
        the
        term Collateral shall not include (i) the Horseman's Account, (ii) the bond
        issued under the Master Plan Bond Transaction and payments owed by one Loan
        Party to another Loan Party in connection with the Master Plan Bond Transaction,
        (iii) ownership interests of any Loan Party in any (a) Excluded Subsidiary,
        (b)
        any Excluded Entity, and (c) those Persons listed on Schedule
        3
        hereto
        in which, as of the Closing Date, a Loan Party directly or indirectly owns
        less
        than 100% of the outstanding interest of such Person and in which the
        organizational agreements governing such Person prohibit the applicable Loan
        Party from granting a security interest in such ownership interest, and (iv)
        any
        chattel paper, contract rights or other general intangibles which are now
        held
        or hereafter acquired by any Loan Party to the extent that such chattel paper,
        contract rights or other general intangibles (including, but not limited
        to,
        licenses) are not assignable or capable of being encumbered (a) as a matter
        of
        law or (b) under the terms of any agreement applicable thereto (but solely
        to
        the extent that any such restriction is enforceable and not ineffective under
        applicable law) without the consent of the other party to such agreement
        where
        such consent has not been obtained after the applicable Loan Party has made
        a
        reasonably diligent effort satisfactory to the Agent to obtain such
        consent.

      

      "Collateral
        Agent" means JPMorgan in its capacity as contractual representative of the
        Lenders as Collateral Agent hereunder, and not in its individual capacity
        as a
        Lender.

      

      “Collateral
        Documents” means, collectively, all of the instruments, documents and agreements
        executed in connection with this Agreement or the Previous Credit Agreement
        by
        which any Person grants a security interest in Collateral, including without
        limitation, those documents referenced in Section 6.25 of this Agreement,
        which
        in turn includes without limitation, the Pledge and Security Agreement, the
        Mortgages, the Negative
        Pledge Agreement, the Assignment of Patents, Trademarks and Copyrights, the
        Intercompany Subordination Agreement, the 2004B Collateral Documents, and
        all
        other documents or instruments executed as security for the Secured Obligations
        from time to time, including, without limitation, those entered into pursuant
        to
        Section 6.29 of this Agreement.

      

      "Collateral
        Shortfall Amount" is defined in Section 8.1.

      

      "Commitment"
        means, for each Lender, the obligation of such Lender to make Revolving Loans
        to, and participate in Facility LCs issued upon the application of, the Borrower
        in an aggregate amount not exceeding the amount set forth opposite its signature
        below, as it may be modified as a result of any assignment that has become
        effective pursuant to Section 12.3.2 or as otherwise modified from time to
        time
        pursuant to the terms hereof.

      

      "Commitment
        Fee" is defined in Section 2.7.

      

      "Consolidated
        Adjusted EBITDA" for
        any
        Period means the consolidated Adjusted EBITDA of all of the Loan Parties
        for
        that period, consolidated in accordance with Agreement Accounting Principles.
        The EBITDA of the Excluded Subsidiaries shall not be included in Consolidated
        Adjusted EBITDA, but EBITDA attributable to the Borrower’s interest in Wagerco
        shall be included in Consolidated Adjusted EBITDA in an amount not to exceed
        the
        amount of dividends and other similar distributions actually received in
        cash by
        a Loan Party from Wagerco.

      

      "Consolidated
        Funded Indebtedness" means at any time the aggregate dollar amount of
        Consolidated Indebtedness which has actually been funded and is outstanding
        at
        such time, whether or not such amount is due or payable at such
        time.

       

      "Consolidated
        Indebtedness" means at any time the Indebtedness of the Loan Parties calculated
        on a consolidated basis as of such time in accordance with Agreement Accounting
        Principles.

      

      "Consolidated
        Interest Expense" means, with reference to any period, the interest expense
        of
        the Loan Parties calculated on a consolidated basis for such period in
        accordance with Agreement Accounting Principles. The interest expense paid
        by an
        Excluded Subsidiary shall not be included in Consolidated Interest
        Expense.

      

      "Consolidated
        Net Income" means, with reference to any period, the net income (or loss)
        of all
        of the Loan Parties calculated on a consolidated basis for such period in
        accordance with Agreement Accounting Principles.

       

      "Consolidated
        Net Worth" means as of any date of determination total stockholders' equity
        of
        all of the Loan Parties as of such date determined and consolidated in
        accordance with Agreement Accounting Principles.

      

      "Consolidated
        Rentals" means, with reference to any period, the Rentals of the Loan Parties
        calculated on a consolidated basis for such period in accordance with Agreement
        Accounting Principles.

      

      "Contingent
        Obligation" of a Person means any agreement, undertaking or arrangement by
        which
        such Person assumes, guarantees, endorses, contingently agrees to purchase
        or
        provide funds for the payment of, or otherwise becomes or is contingently
        liable
        upon, the obligation or liability of any other Person, or agrees to maintain
        the
        net worth or working capital or other financial condition of any other Person,
        or otherwise assures any creditor of such other Person against loss, including,
        without limitation, any guaranty, comfort letter, operating agreement,
        take-or-pay contract or the obligations of any such Person as general partner
        of
        a partnership with respect to the liabilities of the partnership.

      

      "Controlled
        Group" means all members of a controlled group of corporations or other business
        entities and all trades or businesses (whether or not incorporated) under
        common
        control which, together with the Borrower or any of its Subsidiaries, are
        treated as a single employer under Section 414 of the Code.

      

      "Conversion/Continuation
        Notice" is defined in Section 2.11, and shall be in a form satisfactory to
        this
        Agent, generally in the form of Exhibit
        S.

      

      "Credit
        Extension" means the making of an Advance or the issuance of a Facility LC
        hereunder.

      

      "Credit
        Extension Date" means the Borrowing Date for an Advance or the issuance date
        for
        a Facility LC.

      

      "Current
        Fields of Enterprise" means those fields of enterprise that each Loan Party
        is
        engaged in as of the date of this Agreement, and activities related thereto,
        including, but not limited to the acquisition of Persons that provide wagering
        platforms, and shall not
        include
        any mode of gambling other than pari-mutuel wagering on horse racing and
        Permitted Alternative Gaming which, in each case, is conducted in full
        compliance with applicable law. 

      

      "Default"
        means one or more of the events described in Article VII.

      

      “Departing
        Lender” means each lender under the Previous Credit Agreement that executes and
        delivers to the Agent a Departing Lender Signature Page.

       

      “Departing
        Lender Signature Page” means each signature page to this Agreement on which it
        is indicated that the Departing Lender executing the same shall cease to
        be a
        party to the Previous Credit Agreement on the Closing Date.

       

      “EBITDA”
        for any Person for any period of determination means that Person’s net income
plus,
        to the
        extent deducted from revenues in determining net income, (i) interest expense,
        (ii) expense for taxes paid or accrued, (iii) depreciation, (iv) amortization,
        (v) extraordinary losses incurred other than in the ordinary course of business,
        (vi) the one-time contribution by the Borrower of up to $10,000,000 to the
        Churchill Downs Foundation and (vii) in the case of Ellis Park Race Course,
        Inc., the lesser
        of (1)
        the one-time non-cash impairment charge, if any, deducted from the net income
        of
        Ellis Park Race Course, Inc. with respect to either the third fiscal quarter
        2004 or the fourth fiscal quarter 2004 (but not both quarters), or
        (2)
        $6,200,000.00; minus,
        to the
        extent included in net income, that Person’s extraordinary gains realized other
        than in the ordinary course of business and other than extraordinary gains
        arising from “business interruption” insurance proceeds in connection with the
        Fair Grounds Race Course and its related operations, in each case for such
        period determined, in accordance with Agreement Accounting
        Principles.

       

      "Environmental
        Laws" means all applicable federal,
        provincial, state
        and
        local laws, rules, regulations, reported and publicly available orders, reported
        judicial determinations, and reported and publicly available decisions of
        an
        executive body or any governmental or quasi-governmental entity, whether
        in the
        past, the present or the future, pertaining to health and/or the environment
        in
        effect in any and all jurisdictions in which the Borrowers are at any time
        leasing equipment pursuant to a Lease or otherwise doing business. The
        Environmental Laws shall include, but shall not be limited to, the following:
        (1) the Comprehensive Environmental Response, Compensation, and Liability
        Act,
        42 U.S.C. Sections 9601, et
        seq.;
        the
        Superfund Amendments and Reauthorization Act, Public Law 99-499, 100 Stat.
        1613;
        the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901,
et
        seq.;
        the
        National Environmental Policy Act, 42 U.S.C. Section 4321; the Safe Drinking
        Water Act, 42 U.S.C. Sections 300F, et
        seq.;
        the
        Toxic Substances Control Act, 15 U.S.C. Section 2601; the Hazardous Materials
        Transportation Act, 49 U.S.C. Section 1801; the Federal Water Pollution Control
        Act, 33 U.S.C. Sections 1251; et
        seq.;
        the
        Clean Air Act, 42 U.S.C. Section 7401, et
        seq.;
        and
        the regulations promulgated in connection therewith; and (2) Environmental
        Protection Agency regulations pertaining to asbestos (including 40 C.F.R.
        Part
        61, Subpart M); Occupational Safety and Health Administration regulations
        pertaining to asbes-tos (including 29 C.F.R. Sections 1910.1001 and 1926.58);
        and any state, province and local laws and regulations pertaining to Hazardous
        Materials and/or asbestos. 

       

      "ERISA"
        means the Employee Retirement Income Security Act of 1974, as amended from
        time
        to time, and any rule or regulation issued thereunder.

      

      "Eurodollar
        Advance" means an Advance which, except as otherwise provided in Section
        2.13,
        bears interest at the applicable Eurodollar Rate.

      

      "Eurodollar
        Base Rate" means, with respect to a Eurodollar Advance for the relevant Interest
        Period, the applicable British Bankers' Association LIBOR rate for deposits
        in
        U.S. dollars as reported on Page 3750 of the Dow Jones Market Service or,
        if
        such service is not available, by any other generally recognized financial
        information service as of 11:00 a.m. (London time) two Business Days prior
        to
        the first day of such Interest Period, and having a maturity equal to such
        Interest Period, provided
        that, if
        no such British Bankers' Association LIBOR rate is available to the Agent,
        the
        applicable Eurodollar Base Rate for the relevant Interest Period shall instead
        be the rate determined by the Agent to be the rate at which JPMorgan or one
        of
        its Affiliate banks offers to place deposits in U.S. dollars with first-class
        banks in the London interbank market at approximately 11:00 a.m. (London
        time)
        two Business Days prior to the first day of such Interest Period, in the
        approximate amount of JPMorgan's relevant Eurodollar Loan and having a maturity
        equal to such Interest Period.

      

      "Eurodollar
        Loan" means a Loan which, except as otherwise provided in Section 2.13, bears
        interest at the applicable Eurodollar Rate.

      

      "Eurodollar
        Rate" means, with respect to a Eurodollar Advance for the relevant Interest
        Period, the sum of (i) the quotient of (a) the Eurodollar Base Rate applicable
        to such Interest Period, divided by (b) one minus the Reserve Requirement
        (expressed as a decimal) applicable to such Interest Period, plus (ii) the
        Applicable Margin.

      

      "Exchange
        Act" means the Securities Exchange Act of 1934.

      

      "Excluded
        Entities" means any corporation, partnership, limited liability company or
        other
        Person in which the Loan Parties hold an ownership interest, either directly
        or
        indirectly, and which is not a Loan Party.

       

      “Excluded
        Group” means and includes Duchossois Industries, Inc. and its
        Affiliates.

       

      “Excluded
        Subsidiaries” means any Excluded Entity which is a Subsidiary of the Borrower.
        The Excluded Subsidiaries on the Closing Date are Hoosier Park, L.P., Churchill
        Downs Pennsylvania Company (formerly known as Churchill Downs California
        Foodservices Company), Tracknet, LLC, Churchill Downs California Company,
        Churchill Downs California Fall Operating Company, Anderson Park, Inc. Fair
        Grounds International Ventures, L.L.C., a Louisiana limited liability company,
        and F.G. Staffing Services, Inc., a Louisiana corporation.

      

      "Excluded
        Taxes" means, in the case of each Lender or applicable Lending Installation
        and
        the Agent, taxes imposed on its overall net income, and franchise taxes imposed
        on it, by (i) the jurisdiction under the laws of which such Lender or the
        Agent
        is incorporated or organized or (ii) the jurisdiction in which the Agent's
        or
        such Lender's principal executive office or such Lender's applicable Lending
        Installation is located.

      

      "Exhibit"
        refers to an exhibit to this Agreement, unless another document is specifically
        referenced.

      

      "Facility
        LC" is defined in Section 2.3.1.

      

      "Facility
        LC Application" is defined in Section 2.3.3.

      

      "Facility
        LC Collateral Account" is defined in Section 2.3.11.

      

      "Facility
        Termination Date" means September 23, 2010, or any earlier date on which
        the
        Aggregate Commitment is reduced to zero or otherwise terminated pursuant
        to the
        terms hereof.

      

      “Fair
        Grounds Acquisition” shall have the meaning given it in Recital C of the 2004B
        Amendment.

      

      “Fair
        Grounds Acquisition Documents” shall mean all of the documents through which the
        Fair Grounds Acquisition is consummated, including, without limitation, (a)
        the
        Third Amended Plan of Reorganization, filed in the United States Bankruptcy
        Court for the Eastern District of Louisiana, Bankruptcy Case No 03-16222,
        by
        Fair Grounds Corporation, as Debtor and Debtor-in-possession; (b) the Order,
        dated September 28, 2004, entered by the United States Bankruptcy Court for
        the
        Eastern District of Louisiana in Bankruptcy Case No 03-16222, confirming
        the
        Third Amended Plan of Reorganization of Fair Grounds Corporation; (c) the
        Asset
        Purchase Agreement, dated as of August 31, 2004, as amended by the First
        Amendment, dated as September 17, 2004, among the Borrower, on behalf of
        one of
        its wholly owned subsidiary to be formed, Fair Grounds Corporation and the
        Borrower; (d) the Asset Purchase Agreement, dated as of October 14, 2004,
        between Churchill Downs Louisiana Horseracing Company, L.L.C. and Finish
        Line
        Management Corp.; and (e) the Stock Purchase Agreement, dated October 14,
        2004,
        between Churchill Downs Louisiana Video Poker Company, L.L.C. and Steven
        M.
        Rittvo, Ralph Capitelli, T. Carey Wicker III and Louisiana Ventures,
        Inc..

      

      “Fair
        Grounds Assignment and Subordination of Lease and Management Agreement” shall
        mean the Assignment and Subordination of Lease and Management Agreement,
        dated
        as of October 14, 2004, between Churchill Downs Louisiana Horseracing Company,
        L.L.C., as Landlord, and Fair Grounds Corporation, as Tenant.

      

      "Federal
        Funds Effective Rate" means, for any day, an interest rate per annum equal
        to
        the weighted average of the rates on overnight Federal funds transactions
        with
        members of the Federal Reserve System arranged by Federal funds brokers on
        such
        day, as published on the next succeeding day (or, if such day is not a Business
        Day, for the immediately preceding Business Day) by the Federal Reserve Bank
        of
        New York, or, if such rate is not so published for any day which is a Business
        Day, the average of the quotations at approximately 10:00 a.m. (Louisville
        time)
        on such day on such transactions received by the Agent from three Federal
        funds
        brokers of recognized standing selected by the Agent in its sole discretion.
        

      

      "Financial
        Contract" of a Person means (i) any exchange-traded or over-the-counter futures,
        forward, swap or option contract or other financial instrument with similar
        characteristics, and/or (ii) any Rate Management Transaction. 

      

      “First
        Amendment” means the 2004A Amendment to Loan Documents, dated as of June 1, 2004
        among the Agent, the Guarantors party thereto and the Borrower.

       

      "Floating
        Rate" means, for any day, a rate per annum equal to (i) the Alternate Base
        Rate
        for such day plus (ii) the Applicable Margin, in each case changing when
        and as
        the Alternate Base Rate changes.

      

      "Floating
        Rate Advance" means an Advance which, except as otherwise provided in Section
        2.13, bears interest at the Floating Rate.

      

      "Floating
        Rate Loan" means a Loan which, except as otherwise provided in Section 2.13,
        bears interest at the Floating Rate.

      

      "Fund"
        means any Person (other than a natural person) that is (or will be) engaged
        in
        making, purchasing, holding or otherwise investing in commercial loans and
        similar extensions of credit in the ordinary course of its
        business.

      

      "Guarantor
        Joinder" is defined in Section 9.14.

      

      "Guarantors"
        means, subject to Section 6.12(iii) collectively, Churchill Downs Management
        Company, Churchill Downs Investment Company, Churchill Downs Simulcast
        Productions, LLC, Charlson Industries, Inc., Racing Corporation of America,
        Calder Race Course, Inc., Tropical Park, Inc., Arlington Park Racecourse,
        LLC,
        Arlington Management Services, LLC, Arlington OTB Corp., Quad City Downs,
        Inc.,
        CDIP, LLC, CDIP Holdings, LLC, Ellis Park Race Course, Inc., Churchill Downs
        Louisiana Horseracing Company, L.L.C., Churchill Downs Louisiana Video Poker
        Company, L.L.C., Video Services, Inc., any Person who becomes a Guarantor
        under
        Section 9.14, and the successors and assigns of any of them, and "Guarantor"
        means any one or more of these.

      

      "Guaranty"
        means that certain Amended and Restated Guaranty dated as of the Closing
        Date,
        executed by the Guarantors in favor of the Collateral Agent, entered into
        pursuant to this Agreement, as amended, restated, supplemented or otherwise
        modified and in effect from time to time.

       

      "Hazardous
        Materials" means any substance, chemical, wastes (medical or otherwise),
        or
        con-taminants, including, without limitation, asbestos, polychlorinated
        biphenyls (“PCBs”), paint containing lead, gasoline or other petroleum products,
        radioactive material, urea formaldehyde foam insulation, and discharges of
        sewage or effluent that is designated or defined (either by inclusion in
        a list
        of materials or by reference to exhibited characteristics) as hazardous,
        toxic
        or dangerous, or as a designated or prohibited substance, in any federal,
        state,
        provincial, municipal or local law, by-law, code having the force of law,
        or
        ordinance, including, without limitation, the applicable Environmental Laws,
        now
        existing or hereafter in effect, and all rules having the force of law and
        regulations promulgated thereunder. 

      

      "Horseman’s
        Account" means refundable deposits and amounts held by a Loan Party for the
        benefit of horsemen, ownership of which deposits and amounts is vested in
        such
        horsemen.

      

      "Indebtedness"
        of a Person means such Person's (i) obligations for borrowed money, (ii)
        obligations representing the deferred purchase price of Property or services
        (other than accounts payable arising in the ordinary course of such Person's
        business payable on terms customary in the trade), (iii) obligations, whether
        or
        not assumed, secured by Liens or payable out of the proceeds or production
        from
        Property now or hereafter owned or acquired by such Person, (iv) obligations
        which are evidenced by notes, acceptances, or other instruments, (v) obligations
        of such Person to purchase securities or other Property arising out of or
        in
        connection with the sale of the same or substantially similar securities
        or
        Property, (vi) Capitalized Lease Obligations, (vii) LC Obligations, (viii)
        aggregate undrawn stated amount under Letters of Credit that are not Facility
        LCs, plus the aggregate amount of all reimbursement obligations in connection
        therewith, and (ix) any other obligation for borrowed money or other financial
        accommodation which in accordance with Agreement Accounting Principles would
        be
        shown as a liability on the consolidated balance sheet of such Person, but
        the
        term "Indebtedness" does not include trade payables and accrued expenses,
        deferred revenue related to the annual running of the Kentucky Derby, deferred
        revenue from the leasing or licensing of personal seat licenses, and obligations
        not exceeding $3,000,000 under outstanding pari-mutuel tickets that are payable
        with respect to races run not more than one year prior to the date of
        determination which were incurred in the ordinary course of business, which
        are
        not represented by a promissory note or other evidence of indebtedness and
        (other than pari-mutuel tickets) which are not more than thirty (30) days
        past
        due, all determined in accordance with Agreement Accounting
        Principles.

      

      "Indemnity
        Agreement" shall mean the Environmental Indemnity Agreement, dated as of
        the
        Previous Closing Date, among the Agent, the Borrower and the Guarantors party
        thereto.

      

      "Intercompany
        Subordination Agreement" shall mean a subordination agreement among the Loan
        Parties in the form attached hereto as Exhibit
        H.

      

      “Interest
        Coverage Ratio” means, as of any date of calculation, the ratio of (a)
        Consolidated Adjusted EBITDA to (b) Consolidated Interest Expense, in each
        instance computed as provided in Section 6.24.1 and in accordance with Agreement
        Accounting Principles.

       

      "Interest
        Period" means, with respect to a Eurodollar Advance, a period of one, two,
        three
        or six months commencing on a Business Day selected by the Borrower pursuant
        to
        this Agreement. Such Interest Period shall end on the day which corresponds
        numerically to such date one, two, three or six months thereafter, provided,
        however,
        that if
        there is no such numerically corresponding day in such next, second, third
        or
        sixth succeeding month, such Interest Period shall end on the last Business
        Day
        of such next, second, third or sixth succeeding month. If an Interest Period
        would otherwise end on a day which is not a Business Day, such Interest Period
        shall end on the next succeeding Business Day, provided,
        however,
        that if
        said next succeeding Business Day falls in a new calendar month, such Interest
        Period shall end on the immediately preceding Business Day. 

      

      "Investment"
        of a Person means any loan, advance (other than commission, travel and similar
        advances to officers and employees made in the ordinary course of business),
        extension of credit (other than accounts receivable arising in the ordinary
        course of business on terms customary in the trade) or contribution of capital
        by such Person; stocks, bonds, mutual funds, partnership interests, notes,
        debentures or other securities owned by such Person; any deposit accounts
        and
        certificate of deposit owned by such Person; and structured notes, derivative
        financial instruments and other similar instruments or contracts owned by
        such
        Person.

      

      “Jazz
        Fest Subordination Agreement and Estoppel” shall mean the Subordination,
        Non-Disturbance and Attornment Agreement dated October 13, 2004, between
        The New
        Orleans Jazz and Heritage Foundation, Inc., as Tenant, and the Collateral
        Agent
        as mortgagee under the Mortgage defined therein, together with the Estoppel
        Certificate by The New Orleans Jazz and Heritage Foundation, Inc. in favor
        of
        the Agent and the Collateral Agent.

      

      “JPMorgan”
        means JPMorgan Chase Bank, N.A. (successor by merger to Bank One, NA), a
        national banking association, in its individual capacity, and its
        successors.

      

      "LC
        Fee"
        is defined in Section 2.3.4.

      

      "LC
        Issuer" means PNC Bank (or any subsidiary or affiliate of PNC Bank designated
        by
        PNC Bank) in its capacity as issuer of Facility LCs hereunder.

      

      "Investment
        Compliance Certificate" is defined in Section 6.13(ii)(c).

      

      "LC
        Obligations" means, at any time, the sum, without duplication, of (i) the
        aggregate undrawn stated amount under all Facility LCs outstanding at such
        time
        (including without limitation increases, if any, in the stated amount provided
        in any Facility LC, whether or not the time for such increase has occurred)
        plus
        (ii) the aggregate unpaid amount at such time of all Reimbursement
        Obligations.

      

      "LC
        Payment Date" is defined in Section 2.3.5.

      

      “LC
        Reimbursement Agreement” is defined in Section 2.3.3.

      

      "Lenders"
        means the lending institutions (other than the Departing Lenders) listed
        on the
        signature pages of this Agreement and their respective successors and assigns,
        together with any lending institution that becomes a Lender under Section
        12.3.
        Unless otherwise specified, the term "Lenders" includes PNC Bank in its capacity
        as Swing Line Lender.

      

      "Lending
        Installation" means, with respect to a Lender or the Agent, the office, branch,
        subsidiary or Affiliate of such Lender or the Agent listed on the signature
        pages hereof or on a Schedule or otherwise selected by such Lender or the
        Agent
        pursuant to Section 2.19. 

      

      "Letter
        of Credit" of a Person means a letter of credit or similar instrument which
        is
        issued upon the application of such Person or upon which such Person is an
        account party or for which such Person is in any way liable.

      

      "Leverage
        Ratio" means, as of any date of calculation, the ratio of (i) Consolidated
        Funded Indebtedness outstanding on such date to (ii) Consolidated Adjusted
        EBITDA, in each instance computed in accordance with Section 6.24.2 and
        Agreement Accounting Principles.

      

      "Lien"
        means any lien (statutory or other), mortgage, pledge, hypothecation,
        assignment, deposit arrangement, encumbrance or preference, priority or other
        security agreement or preferential arrangement of any kind or nature whatsoever
        (including, without limitation, the interest of a vendor or lessor under
        any
        conditional sale, Capitalized Lease or other title retention
        agreement).

      

      "Loan"
        means a Revolving Loan or a Swing Line Loan.

      

      "Loan
        Documents" means this Agreement, the Facility LC Applications, the LC
        Reimbursement Agreement, any Notes issued pursuant to Section 2.15, the
        Collateral Documents, the Guaranty, and all other documents (excluding the
        Working Cash Sweep Rider) and/or instruments executed and delivered pursuant
        to
        and/or in connection with the Previous Credit Agreement or this
        Agreement.

      

      "Loan
        Parties" means the Borrower and the Guarantors from time to time.

      

      “Louisiana
        Mortgages” means the Mortgages, Assignments of Rents and Security Agreements and
        the Leasehold Mortgages, Assignments of Rents and Security Agreements and
        Deeds
        of Trust encumbering the Loan Parties’ fee or leasehold interest in those
        properties listed on 6(a)
        of the
        2004B Amendment and delivered by each of the applicable Loan Parties with
        respect to each of the parcels of real property listed on Schedule
        6(a)
        to the
        Collateral Agent for the benefit of the Lenders, as they may be amended and/or
        supplemented from time to time.

      

      "Master
        Plan Bond Rentals" means rentals payable under the Master Plan Bond
        Transaction.

      

      "Master
        Plan Bond Transaction" means the transaction through which the City of
        Louisville, Kentucky (n/k/a Louisville/Jefferson County Metro Government)
        Taxable Industrial Building Revenue Bond, Series 2002 (Churchill Downs
        Incorporated Project) was issued. 

      

      "Material
        Adverse Effect" means a material adverse effect on (i) the business, Property,
        condition (financial or otherwise), results of operations, or prospects,
        of the
        Loan Parties taken as a whole, (ii) the ability of the Borrower to perform
        its
        obligations under the Loan Documents to which it is a party, or (iii) the
        validity or enforceability of any of the Loan Documents or the rights or
        remedies of the Agent, the LC Issuer, the Collateral Agent or the Lenders
        thereunder.

      

      "Material
        Indebtedness" means Indebtedness in an outstanding principal amount of
        $3,000,000.00 or
        more
        in the aggregate (or the equivalent thereof in any currency other than U.S.
        dollars), but does not include the Indebtedness under the Convertible Promissory
        Note in the principal amount of $16,669,379.87 dated October 19, 2004 payable
        to
        Brad M. Kelley. 

      

      "Material
        Indebtedness Agreement" means any agreement under which any Material
        Indebtedness was created or is governed or which provides for the incurrence
        of
        Indebtedness in an amount which would constitute Material Indebtedness (whether
        or not an amount of Indebtedness constituting Material Indebtedness is
        outstanding thereunder).

      

      "Modify"
        and "Modification" are defined in Section 2.3.1.

      

      "Moody's"
        means Moody's Investors Service, Inc.

      

      "Mortgages"
        shall mean the Mortgages and Deeds of Trust in substantially the form of
        collective Exhibit
        I
        previously executed and delivered by each of the applicable Loan Parties
        with
        respect to each of the parcels of Real Property Collateral to the Collateral
        Agent for the benefit of the Lenders. The Calder Mortgage with respect to
        the
        Real Property in Florida was not recorded on the Previous Closing Date, but
        the
        Agent may cause the Collateral Agent to record the Calder Mortgage at any
        time
        pursuant to Section 6.21.

      

      "Multiemployer
        Plan" means a Plan maintained pursuant to a collective bargaining agreement
        or
        any other arrangement to which the Borrower or any member of the Controlled
        Group is a party to which more than one employer is obligated to make
        contributions.

      

      "Negative
        Pledge Agreement" means that certain Negative Pledge Agreement in substantially
        the form of Exhibit
        J
        executed
        and delivered by Calder and all the Loan Parties in favor of the Agent with
        respect to all interest of the Loan Parties in any Property of Calder, including
        without limitation any Property subject to the Calder Mortgage and/or any
        Calder
        Financing Statements.

      

      "Non-U.S.
        Lender" is defined in Section 3.5(iv).

      

      "Note"
        is
        defined in Section 2.15(iv).

      

      "Notice
        of Acquisition" is defined in Section 6.13(iii)(b).

      

      "Obligations"
        means, collectively, all unpaid principal of and accrued and unpaid interest
        on
        the Loans, all obligations, contingent or otherwise, under and/or in connection
        with any Notes and/or to or for the benefit of any Lender and/or the LC Issuer
        under and/or in connection with the other Loan Documents, all Reimbursement
        Obligations, all accrued and unpaid fees and all expenses, reimbursements,
        indemnities and other obligations of the Borrower to the Lenders or to any
        Lender, the Agent, the Collateral Agent for the benefit of any Lender or
        the LC
        Issuer, the LC Issuer or any indemnified party arising under the Loan Documents,
        whether they exist on the date of this Agreement or the Previous Credit
        Agreement, or arise or are created or acquired after the date of this Agreement
        or the Previous Credit Agreement.

      

      "Off-Balance
        Sheet Liability" of a Person means (i) any repurchase obligation or liability
        of
        such Person with respect to accounts or notes receivable sold by such Person,
        (ii) any liability under any Sale and Leaseback Transaction which is not
        a
        Capitalized Lease, (iii) any liability under any so-called "synthetic lease"
        transaction entered into by such Person, or (iv) any obligation arising with
        respect to any other transaction which is the functional equivalent of or
        takes
        the place of borrowing but which does not constitute a liability on the balance
        sheets of such Person, but excluding from this clause (iv) Operating
        Leases.

      

      "Operating
        Lease" of a Person means any lease of Property (other than a Capitalized
        Lease)
        by such Person as lessee which has an original term (including any required
        renewals and any renewals effective at the option of the lessor) of one year
        or
        more.

      

      "Other
        Taxes" is defined in Section 3.5(ii).

      

      "Outstanding
        Credit Exposure" means, as to any Lender at any time, the sum of (i) the
        aggregate principal amount of its Loans outstanding at such time, plus (ii)
        an
        amount equal to its Pro Rata Share of the LC Obligations at such time, plus
        (iii) an amount equal to its Pro Rata Share of the aggregate principal amount
        of
        Swing Line Loans outstanding at such time.

      .

      "Participants"
        is defined in Section 12.2.1.

      

      "Payment
        Date" means the last day of each calendar quarter. 

      

      "PBGC"
        means the Pension Benefit Guaranty Corporation, or any successor
        thereto.

      

      "Permitted
        Acquisitions" has the meaning given it in Section 6.13(iii).

      

      "Permitted
        Alternative Gaming" means slot machines and/or video lottery terminals and/or
        electronic gaming machines operated by one or more of the Loan Parties at
        a
        facility owned or leased by, and operated by one or more of the Loan Parties,
        and at which either (1) live horse racing is underway at that facility and
        pari-mutuel wagering is being conducted with respect to those races; and/or
        (2)
        live horse racing is being simulcast at that facility and pari-mutuel wagering
        is being conducted with respect to those races.

      

      “Permitted
        Investment” means a possible investment of up to $50,000,000 in
        Wagerco.

      

      "Permitted
        Liens" is defined in Section 6.16.

      

      "Permitted
        Secured Rate Management Transaction" has the meaning given it in Section
        6.16(vii).

      

      "Person"
        means any natural person, corporation, firm, joint venture, partnership,
        limited
        liability company, association, enterprise, trust or other entity or
        organization, or any government or political subdivision or any agency,
        department or instrumentality thereof.

      

      "Plan"
        means an employee pension benefit plan which is covered by Title IV of ERISA
        or
        subject to the minimum funding standards under Section 412 of the Code as
        to
        which the Borrower or any member of the Controlled Group may have any
        liability.

      

      "Pledge
        and Security Agreement" means the Amended and Restated Pledge and Security
        Agreement in substantially the form of Exhibit
        K
        dated as
        of the Closing Date and executed and delivered by each of the applicable
        Loan
        Parties to the Collateral Agent for the ratable benefit of the Lenders, as
        amended, restated, supplemented or otherwise modified and in effect from
        time to
        time.

      

      "PNC
        Bank" means PNC Bank, National Association, a national banking association
        having its principal office in Pittsburgh, Pennsylvania, and having an office
        in
        Louisville, Kentucky, in its individual capacity, and its
        successors.

      

      “Previous
        Closing Date” means April 3, 2003.

      

      “Previous
        Credit Agreement” means that certain Credit Agreement dated as of April 3, 2003
        by and among the Borrower, the Guarantors party thereto, the Lenders party
        thereto and the Agent, as the same has been amended prior to the Closing
        Date.

      

      “Pricing
        Schedule” means the Pricing Schedule attached to this Agreement.

      

      "Prime
        Rate" means the rate of interest per annum publicly announced from time to
        time
        by JPMorgan as its prime rate in effect at its principal office in New York
        City; each change in the Prime Rate shall be effective from and including
        the
        date such change is publicly announced as being effective.

      

      "Prohibited
        Transaction" shall mean any prohibited transaction as defined in
        Section 4975 of the Internal Revenue Code or Section 406 of
        ERISA for
        which neither an individual nor a class exemption has been issued by the
        United
        States Department of Labor.

      

      "Pro
        Rata
        Share" means, with respect to a Lender, a portion equal to a fraction the
        numerator of which is such Lender's Commitment and the denominator of which
        is
        the Aggregate Commitment.

      "Property"
        of a Person means any and all property, whether real, personal, tangible,
        intangible, or mixed, of such Person, or other assets owned, leased or operated
        by such Person.

      

      “PSL”
        means any agreement between any Loan Party and a Person providing for a right
        to
        purchase or otherwise use seating accommodations in certain seating locations
        at
        the Borrower's Property located on Central Avenue in Louisville, Kentucky,
        known
        as the Churchill Downs racetrack facility, and which agreement does not conflict
        with any of the Loan Documents, and/or result in a Default or Unmatured Default,
        and expressly does not result in, or require, the creation or imposition
        of any
        Lien in, leasehold interest in, rights in, claim to, easement or easement
        by
        estoppel over, or similar rights or interests in any Property of any such
        Loan
        Party, or result in, or require, the creation or imposition of any right
        to
        possess specific property (other than the contractual right to purchase or
        otherwise use the subject seating accommodations subject to the terms of
        such
        agreement).

      

      “PSL
        Buyback/Guarantee” means any promise to repurchase or buy back, guarantee or
        otherwise provide credit support, directly or indirectly, given by any Loan
        Party in favor of any financial institution or other Person in connection
        with
        an obligation arising under a PSL Financing. 

      

      “PSL
        Financing” means any instance in which, pursuant to a PSL Financing Program, a
        PSL Purchaser finances its obligations under a PSL, in whole or in part,
        and
        which does not conflict with any of the Loan Documents, and/or result in
        a
        Default or Unmatured Default.

      

      “PSL
        Financing Program” means a financing arrangement program established by any Loan
        Party with a financial institution or other Person pursuant to which such
        financial institution or other Person agrees to finance, in whole or in part,
        PSL Purchasers’ obligations under the PSLs, and which arrangement does not
        conflict with any of the Loan Documents, and/or result in a Default or Unmatured
        Default. 

      

      “PSL
        Purchaser” means the Person who enters into a PSL with any Loan
        Party.

      

      "Purchasers"
        is defined in Section 12.3.1.

      

      "Rate
        Management Obligations" of a Person means any and all obligations of such
        Person, whether absolute or contingent and howsoever and whensoever created,
        arising, evidenced or acquired (including all renewals, extensions and
        modifications thereof and substitutions therefor), under (i) any and all
        Rate
        Management Transactions, and (ii) any and all cancellations, buy backs,
        reversals, terminations or assignments of any Rate Management Transactions.
        

      

      "Rate
        Management Transaction" means any transaction (including an agreement with
        respect thereto) now existing including, without limitation, those transactions
        described on Schedule
        6.22
        or
        hereafter entered by the Borrower which is a rate swap, basis swap, forward
        rate
        transaction, commodity swap, commodity option, equity or equity index swap,
        equity or equity index option, bond option, interest rate option, foreign
        exchange transaction, cap transaction, floor transaction, collar transaction,
        forward transaction, currency swap transaction, cross-currency rate swap
        transaction, currency option or any other similar transaction (including
        any
        option with respect to any of these transactions) or any combination thereof,
        whether linked to one or more interest rates, foreign currencies, commodity
        prices, equity prices or other financial measures. 

      "Real
        Property" means, collectively, each of the parcels of owned and/or leased
        real
        property of any of the Loan Parties, all of which is listed on Schedule
        5.23.

       

      "Real
        Property Collateral" means each of the parcels of owned Real Property listed
        on
Schedule
        5.23
        except
        as set forth on such Schedule.

       

      "Recorded
        Mortgages" means each of the Mortgages, except for the Calder Mortgage, but
        if
        the Calder Mortgage is subsequently recorded in accordance with Section 6.21,
        Recorded Mortgage shall include such Calder Mortgage on and after the date
        of
        such recordation. 

      

      “Refinanced
        Indebtedness” means the Indebtedness and all other monetary obligations under
        the Borrower’s “Term Notes” as defined in the Previous Credit
        Agreement.

      

      "Regulation
        D" means Regulation D of the Board of Governors of the Federal Reserve System
        as
        from time to time in effect and any successor thereto or other regulation
        or
        official interpretation of said Board of Governors relating to reserve
        requirements applicable to member banks of the Federal Reserve
        System.

      

      "Regulation
        U" means Regulation U, T, G or X of the Board of Governors of the Federal
        Reserve System as from time to time in effect and any successor or other
        regulation or official interpretation of said Board of Governors relating
        to the
        extension of credit by banks for the purpose of purchasing or carrying margin
        stocks applicable to member banks of the Federal Reserve System.

      

      "Reimbursement
        Obligations" means, at any time, the aggregate of all obligations of the
        Borrower then outstanding under Section 2.3 to reimburse the LC Issuer for
        amounts paid by the LC Issuer in respect of any one or more drawings under
        Facility LCs.

      

      "Rentals"
        of a Person means the aggregate fixed amounts payable by such Person under
        any
        Operating Lease but shall not include Master Plan Bond Rentals or Tote Rentals
        or rental or lease payments for the lease of Louisiana Downs or some
        other
        facility for the conduct of the Fair Grounds winter 2005-2006
        meet.

      

      "Reportable
        Event" means a reportable event as defined in Section 4043 of ERISA and the
        regulations issued under such section, with respect to a Plan, excluding,
        however, such events as to which the PBGC has by regulation waived the
        requirement of Section 4043(a) of ERISA that it be notified within 30 days
        of
        the occurrence of such event, provided,
        however,
        that a
        failure to meet the minimum funding standard of Section 412 of the Code and
        of
        Section 302 of ERISA shall be a Reportable Event regardless of the issuance
        of
        any such waiver of the notice requirement in accordance with either Section
        4043(a) of ERISA or Section 412(d) of the Code.

      

      "Reports"
        is defined in Section 9.6.

      

      "Required
        Lenders" means Lenders in the aggregate having at least fifty-one percent
        (51%)
        of the Aggregate Outstanding Credit Exposure, or if the Aggregate Commitment
        has
        been terminated, Lenders in the aggregate holding at least fifty-one percent
        (51%) of the aggregate principal amount of all of the Loans plus all of the
        LC
        Obligations. 

      

      "Reserve
        Requirement" means, with respect to an Interest Period, the maximum aggregate
        reserve requirement (including all basic, supplemental, marginal and other
        reserves) which is imposed under Regulation D on Eurocurrency
        liabilities.

      

      "Restricted
        Assets" has the meaning given it in Section 6.13.

      

      "Revolving
        Loan" means, with respect to a Lender, such Lender's Loan made pursuant to
        its
        Commitment to lend set forth in Section 2.1 (or any conversion or continuation
        thereof) and includes any “Revolving Loan” made pursuant to the Previous Credit
        Agreement and outstanding on the Closing Date.

      

      "Risk-Based
        Capital Guidelines" has the meaning given it in Section 3.2

       

      "S&P"
        means Standard and Poor's Ratings Services, a division of The McGraw Hill
        Companies, Inc.

      

      "Sale
        and
        Leaseback Transaction" means any sale or other transfer of Property by any
        Person with the intent to lease such Property as lessee.

      

      "Schedule"
        refers to a specific schedule to this Agreement, unless another document
        is
        specifically referenced.

      

      “SEC”
        means
        the Securities and Exchange Commission, or any governmental authority succeeding
        to any of its principal functions.

      

      "Section"
        means a numbered section of this Agreement, unless another document is
        specifically referenced.

      

      "Secured
        Obligations" means, collectively, (i) all Obligations, (ii) all Rate Management
        Obligations owing to one or more Lenders or any affiliate of any Lender,
        and
        (iii) any and all other indebtedness and/or obligations to or for the benefit
        of
        the Agent and/or one or more Lenders and/or the LC Issuer secured by and/or
        in
        all or any of the Collateral Documents, in each case whether they exist on
        the
        date of this Agreement, or arise or are created or acquired after the date
        of
        this Agreement.

      

      "Single
        Employer Plan" means a Plan maintained by the Borrower or any member of the
        Controlled Group for employees of the Borrower or any member of the Controlled
        Group.

      

      "Subsidiary"
        of a Person means (i) any corporation more than 50% of the outstanding
        securities having ordinary voting power of which shall at the time be owned
        or
        controlled, directly or indirectly, by such Person or by one or more of its
        direct or indirect Subsidiaries or by such Person and one or more of its
        direct
        or indirect Subsidiaries, or (ii) any partnership, limited liability company,
        association, joint venture or similar business organization more than 50%
        of the
        ownership interests having ordinary voting power of which shall at the time
        be
        so owned or controlled. Unless otherwise expressly provided, all references
        herein to a "Subsidiary" shall mean a Subsidiary of the Borrower.

      

      "Swing
        Line Borrowing Notice" is defined in Section 2.2.2.

      

      "Swing
        Line Commitment" means the obligation of the Swing Line Lender in Section
        2.2 to
        make Swing Line Loans up to a maximum principal amount of
        $15,000,000.

      

      "Swing
        Line Lender" means PNC Bank, or such other Lender which may succeed to its
        rights and obligations as Swing Line Lender pursuant to the terms of this
        Agreement.

      

      "Swing
        Line Loan" means a Loan made available to the Borrower by the Swing Line
        Lender
        pursuant to Section 2.2.3 and includes any “Swing Line Loan” made pursuant to
        the Previous Credit Agreement and outstanding on the Closing Date.

      

      "Taxes"
        means any and all present or future taxes, duties, levies, imposts, deductions,
        charges or withholdings, and any and all liabilities with respect to the
        foregoing, but excluding
        Excluded
        Taxes and Other Taxes.

      

      "Term
        Substantial Portion" means, with respect to the Property of the Borrower
        and the
        other Loan Parties, collectively, Property which represents 20% or more of
        Consolidated Net Worth or Property which is responsible for 20% of the
        Consolidated Net Income, in each case, as would be shown in the consolidated
        financial statements of the Loan Parties as at the end of the fiscal month
        next
        preceding the Closing Date (or if financial statements have not been delivered
        hereunder for that month, then the financial statements delivered hereunder
        for
        the quarter ending immediately prior to that month). For purposes of determining
        Term Substantial Portion of the Property of the Borrower and the other Loan
        Parties, the value of any Property of Ellis Park Race Course, Inc. and/or
        Racing
        Corporation of America sold, transferred or otherwise disposed of in connection
        with the sale, transfer or other disposition of Ellis Park Race Course, Inc.
        or
        Racing Corporation of America in compliance with this Agreement shall not
        be
        considered. 

      

      "Title
        Insurer" is defined in Section 4.1.

      

      "Tote
        Rentals" means all amounts paid by a Person for rental of equipment and/or
        the
        provision of services under any agreement between such Person and a totalisator
        company.

      

      "Transferee"
        is defined in Section 12.4.

      

      "Twelve
        Month Substantial Portion" means, with respect to the Property of the Borrower
        and the other Loan Parties, collectively, Property which represents 10% or
        more
        of Consolidated Net Worth or Property which is responsible for 10% of the
        Consolidated Net Income, in each case, as would be shown in the consolidated
        financial statements of the Loan Parties as at the beginning of the twelve-month
        period ending with the month in which such determination is made (or if
        financial statements have not been delivered hereunder for that month which
        begins the twelve-month period, then the financial statements delivered
        hereunder for the quarter ending immediately prior to that month). For purposes
        of determining Twelve Month Substantial Portion of the Property of the Borrower
        and the other Loan Parties, the value of any Property of Ellis Park Race
        Course,
        Inc., and/or Racing Corporation of America sold, transferred or otherwise
        disposed of in connection with the sale, transfer or other disposition of
        Ellis
        Park Race Course, Inc. or Racing Corporation of America, in compliance with
        this
        Agreement shall not be considered. 

      

      “2004B
        Amendment” means the 2004B Amendment to Loan Documents, dated as of October 14,
        2004, among the Agent, the Guarantors party thereto and the
        Borrower.

      

      “2004B
        Amendment to Pledge and Security Agreement” means the 2004B Amendment to Pledge
        and Security Agreement, dated as of October 14, 2004, among the applicable
        Loan
        Parties and the Collateral Agent, as they may be amended and/or supplemented
        from time to time.

      

      “2004B
        Assignments of Patent, Trademarks and Copyrights” shall mean the Assignment of
        Patent, Trademarks and Copyrights, dated as of October 14, 2004, executed
        by
        CDIP, L.L.C. in favor of the Collateral Agent and the Assignment of Patent,
        Trademarks and Copyrights, dated as of October 14, 2004, executed by Churchill
        Downs Louisiana Horseracing Company, L.L.C. in favor of the Collateral
        Agent.

      

      “2004B
        Collateral Documents” means, collectively, all of the instruments, documents and
        agreements by which any Person grants a security interest in any Collateral
        pursuant to the 2004B Amendment, including without limitation, those documents
        referenced in Sections 6.25 and 6.29 of this Agreement, which in turn includes
        without limitation, the 2004B Amendment to the Pledge and Security Agreement,
        the 2004B Louisiana Addendum to Pledge and Security Agreement (as defined
        in the
        2004B Amendment to Pledge and Security Agreement), the 2004B Consent Joinder
        and
        Reaffirmation, the Louisiana Mortgages, the 2004B Assignments of Patents,
        Trademarks and Copyrights, the Fair Grounds Assignment and Subordination
        of
        Lease and Management Agreement, the Jazz Fest Subordination Agreement and
        Estoppel, and all other documents or instruments executed as security for
        the
        Secured Obligations in connection with the 2004B Amendment from time to time,
        as
        they may be amended and/or supplemented from time to time.

      

      “2004B
        Consent Joinder and Reaffirmation” shall mean the Consent Joinder and
        Reaffirmation, dated October 14, 2004, among the Collateral Agent, the Borrower
        and the Guarantors party thereto.

      

      “2004B
        Guarantor Joinder” shall mean the Guarantor Joinder, dated October 14, 2004,
        among the Collateral Agent, the Borrower and the Guarantors party
        thereto.

      

      "Type"
        means, with respect to any Advance, its nature as a Floating Rate Advance
        or a
        Eurodollar Advance and with respect to any Loan, its nature as a Floating
        Rate
        Loan or a Eurodollar Loan. 

      

      "Unfunded
        Liabilities" means the amount (if any) by which the present value of all
        vested
        and unvested accrued benefits under all Single Employer Plans exceeds the
        fair
        market value of all such Plan assets allocable to such benefits, all determined
        as of the then most recent valuation date for such Plans using PBGC actuarial
        assumptions for single employer plan terminations. 

      

      "Unmatured
        Default" means an event which but for the lapse of time or the giving of
        notice,
        or both, would constitute a Default.

      

      “Wagerco”
        means an entity or entities existing or to be formed to consolidate racing
        signals, wagering rights, account wagering and related businesses of the
        Borrower and its Subsidiaries and third parties.

      

      "Wholly-Owned
        Subsidiary" of a Person means (i) any Subsidiary all of the outstanding voting
        securities of which shall at the time be owned or controlled, directly or
        indirectly, by such Person or one or more Wholly-Owned Subsidiaries of such
        Person, or by such Person and one or more Wholly-Owned Subsidiaries of such
        Person, or (ii) any partnership, limited liability company, association,
        joint
        venture or similar business organization 100% of the ownership interests
        having
        ordinary voting power of which shall at the time be so owned or
        controlled.

      

      "Working
        Cash Sweep Rider" is defined in Section 2.2.5.

      

      The
        foregoing definitions shall be equally applicable to both the singular and
        plural forms of the defined terms.

      

      1.2  Amendment
        and Restatement of Previous Credit Agreement.
        The
        parties to this Agreement agree that, upon (i) the execution and delivery
        by
        each of the parties hereto of this Agreement and (ii) satisfaction of the
        conditions set forth in Sections
        4.1
        and
4.2,
        the
        terms and provisions of the Previous Credit Agreement shall be and hereby
        are
        amended, superseded and restated in their entirety by the terms and provisions
        of this Agreement. This Agreement is not intended to and shall not constitute
        a
        novation. All Loans made and Secured Obligations incurred under the Previous
        Credit Agreement which are outstanding on the Closing Date shall continue
        as
        Loans and Secured Obligations under (and shall be governed by the terms of)
        this
        Agreement. Without limiting the foregoing, upon the effectiveness hereof:
        (a)
        all Letters of Credit issued (or deemed issued) under the Previous Credit
        Agreement which remain outstanding on the Closing Date shall continue as
        Facility LCs under (and shall be governed by the terms of) this Agreement,
        (b)
        all Secured Obligations constituting Rate Management Obligations with any
        Lender
        or any Affiliate of any Lender which are outstanding on the Closing Date
        shall
        continue as Secured Obligations under this Agreement and the other Loan
        Documents, (c) the Agent shall make such reallocations of each Lender’s
“Outstanding Credit Exposure” under the Previous Credit Agreement as are
        necessary in order that each such Lender’s Outstanding Credit Exposure hereunder
        reflects such Lender’s Pro Rata Share of the outstanding Aggregate Outstanding
        Credit Exposure and (d) the Previous Revolving Loans (as defined in Section
        2.1)
        of each Departing Lender shall be repaid in full (accompanied by any accrued
        and
        unpaid interest and fees thereon), each Departing Lender’s “Commitment” under
        the Previous Credit Agreement shall be terminated and each Departing Lender
        shall not be a Lender hereunder.

       

      

      ARTICLE
        II

      

      THE
        CREDITS

      

      

      2.1  Revolving
        Loan Commitment.
        Prior
        to the Closing Date, revolving loans were previously made to the Borrower
        under
        the Previous Credit Agreement which remain outstanding as of the date of
        this
        Agreement (such outstanding revolving loans being hereinafter referred to
        as the
“Previous Revolving
        Loans”).
        Subject to the terms and conditions set forth in this Agreement, the Borrower
        and each of the Lenders agree that on the Closing Date but subject to the
        satisfaction of the conditions precedent set forth in Section 4.1 and 4.2
        (as
        applicable), the Previous Revolving Loans shall be reevidenced as Revolving
        Loans under this Agreement, the terms of the Previous Revolving Loans shall
        be
        restated in their entirety and shall be evidenced by this Agreement. From
        and
        including the date of this Agreement and prior to the Facility Termination
        Date,
        each Lender severally agrees, on the terms and conditions set forth in this
        Agreement, to make Loans to the Borrower from time to time in amounts not
        to
        exceed in the aggregate at any one time outstanding the amount of its
        Commitment. On the date of this Agreement, the amount of the Aggregate
        Commitment is $200,000,000. Subject to the terms of this Agreement, the Borrower
        may borrow, repay and reborrow at any time prior to the Facility Termination
        Date. The Commitments to lend hereunder shall expire on the Facility Termination
        Date. The Aggregate Commitment may be increased up to a total of $250,000,000
        upon compliance with Section 2.22 below. No Lender shall have any obligation
        to
        increase its Commitment; any such increase shall be at the sole discretion
        of
        such Lender.

       

      2.2  Swing
        Line Loans.

       

      2.2.1  Amount
        of Swing Line Loans.
        Upon
        the satisfaction of the conditions precedent set forth in Section 4.2 and,
        if
        such Swing Line Loan is to be made on the date of the initial Advance hereunder,
        the satisfaction of the conditions precedent set forth in Section 4.1 as
        well,
        from and including the date of this Agreement and prior to the Facility
        Termination Date, the Swing Line Lender agrees, on the terms and conditions
        set
        forth in this Agreement, to make Swing Line Loans to the Borrower from time
        to
        time in an aggregate principal amount not to exceed the Swing Line Commitment,
        provided
        that the
        Aggregate Outstanding Credit Exposure (including without limitation Swing
        Line
        Loans) shall not at any time exceed the Aggregate Commitment, and provided
        further
        that at
        no time shall the sum of (i) the Swing Line Lender's Pro Rata Share of the
        Swing
        Line Loans, plus
        (ii) the
        outstanding Revolving Loans made by the Swing Line Lender pursuant to Section
        2.1, exceed the Swing Line Lender's Commitment at such time. Subject to the
        terms of this Agreement, the Borrower may borrow, repay and reborrow Swing
        Line
        Loans at any time prior to the Facility Termination Date.

       

      2.2.2  Borrowing
        Notice.
        The
        Borrower shall deliver to the Agent and the Swing Line Lender irrevocable
        notice
        (a "Swing Line Borrowing Notice") not later than noon (Louisville time) on
        the
        Borrowing Date of each Swing Line Loan, specifying (i) the applicable Borrowing
        Date (which date shall be a Business Day), and (ii) the aggregate amount
        of the
        requested Swing Line Loan which shall be an amount not less than $100,000.
        The
        Swing Line Loans shall bear interest at a rate per annum equal to the prime
        rate
        of interest announced by the Swing Line Lender from time to time, plus the
        Applicable Margin set forth in the Pricing Schedule for the Floating Rate
        at
        that time. 

       

      2.2.3  Making
        of Swing Line Loans.
        Promptly after receipt of a Swing Line Borrowing Notice, the Agent shall
        notify
        each Lender by fax, or other similar form of transmission, of the requested
        Swing Line Loan. Not later than 2:00 p.m. (Louisville time) on the applicable
        Borrowing Date, the Swing Line Lender shall make available the Swing Line
        Loan,
        in funds immediately available in Louisville, to the Agent at its address
        specified pursuant to Article XIII. The Agent will promptly make the funds
        so
        received from the Swing Line Lender available to the Borrower on the Borrowing
        Date at the Agent's aforesaid address.

       

      2.2.4  Repayment
        of Swing Line Loans.
        Each
        Swing Line Loan shall be paid in full by the Borrower on or before the fifth
        (5th) Business Day after the Borrowing Date for such Swing Line Loan. In
        addition, the Swing Line Lender (i) may at any time in its sole discretion
        with
        respect to any outstanding Swing Line Loan, or (ii) shall, except when a
        Working
        Cash Sweep Rider is in effect, on the fifth (5th) Business Day after the
        Borrowing Date of any Swing Line Loan, require each Lender (including the
        Swing
        Line Lender) to make a Revolving Loan in the amount of such Lender's Pro
        Rata
        Share of such Swing Line Loan (including, without limitation, any interest
        accrued and unpaid thereon), for the purpose of repaying such Swing Line
        Loan.
        Not later than noon (Louisville time) on the date of any notice received
        pursuant to this Section 2.2.4, each Lender shall make available its required
        Revolving Loan, in funds immediately available in Louisville to the Agent
        at its
        address specified pursuant to Article XIII. Revolving Loans made pursuant
        to
        this Section 2.2.4 shall initially be Floating Rate Loans and thereafter
        may be
        continued as Floating Rate Loans or converted into Eurodollar Loans in the
        manner provided in Section 2.11 and subject to the other conditions and
        limitations set forth in this Article II. Unless a Lender shall have notified
        the Swing Line Lender, prior to its making any Swing Line Loan, that any
        applicable condition precedent set forth in Sections 4.1 or 4.2 had not then
        been satisfied, such Lender's obligation to make Revolving Loans pursuant
        to
        this Section 2.2.4 to repay Swing Line Loans shall be unconditional, continuing,
        irrevocable and absolute and shall not be affected by any circumstance,
        including, without limitation, (a) any setoff, counterclaim, recoupment,
        defense
        or other right which such Lender may have against the Agent, the Swing Line
        Lender or any other Person, (b) the occurrence or continuance of a Default
        or
        Unmatured Default, (c) any adverse change in the condition (financial or
        otherwise) of the Borrower, or (d) any other circumstance, happening or event
        whatsoever. In the event that any Lender fails to make payment to the Agent
        of
        any amount due under this Section 2.2.4, the Agent shall be entitled
        to
        receive, retain and apply against such obligation the principal and interest
        otherwise payable to such Lender hereunder until the Agent receives such
        payment
        from such Lender or such obligation is otherwise fully satisfied. In addition
        to
        the foregoing, if for any reason any Lender fails to make payment to the
        Agent
        of any amount due under this Section 2.2.4, such Lender shall be deemed,
        at the
        option of the Agent, to have unconditionally and irrevocably purchased from
        the
        Swing Line Lender, without recourse or warranty, an undivided interest and
        participation in the applicable Swing Line Loan in the amount of such Revolving
        Loan, and such interest and participation may be recovered from such Lender
        together with interest thereon at the Federal Funds Effective Rate for each
        day
        during the period commencing on the date of demand and ending on the date
        such
        amount is received. On the Facility Termination Date, the Borrower shall
        repay
        in full the outstanding principal balance of the Swing Line Loans.

       

      2.2.5 Working
        Cash Sweep Rider.
        Any
        provision of this Section 2.2 to the contrary notwithstanding, the Agent
        and
        each Lender acknowledges that, at the request of the Borrower, the Swing
        Line
        Lender has linked the Swing Line Loans to the Borrower’s demand deposit account
        with the Swing Line Lender. The Agent and the Lenders further acknowledge
        that
        the Borrower has entered into a Working Cash, Line of Credit, Investment
        Sweep
        Rider (“Working Cash Sweep Rider”) with the Swing Line Lender, pursuant to which
        certain cash management activities, including the making of Swing Line Loans,
        will occur automatically in amounts that may be less than the stated minimum
        Swing Line Loan set forth in Section 2.2.2 above, and without the need for
        a
        Swing Line Borrowing Notice. Each Lender agrees that it shall be obligated,
        pursuant to and in accordance with Section 2.2.4, to fund such Lender’s Pro Rata
        Share of any such automatically-made Swing Line Loans on the fifth
        (5th)
        Business Day following the day such advances are made, unless the Agent shall
        have given the Swing Line Lender written notice prior to the date the Swing
        Line
        Loan was made that any applicable condition precedent set forth in Sections
        4.1
        or 4.2 had not then been satisfied, and the Swing Line Lender has had a
        reasonable amount of time, not to exceed two (2) Business Days from such
        notice,
        within which to act. In the event of termination of the Working Cash Sweep
        Rider
        by either the Borrower or the Swing Line Lender, the Swing Line Lender will
        promptly notify the Agent of such termination.

      

      2.3  Letter
        of Credit Subfacility.

       

      2.3.1  Issuance.
        The LC
        Issuer hereby agrees, on the terms and conditions set forth in this Agreement,
        to issue standby and commercial letters of credit (each such Letter of Credit,
        together with each Letter of Credit issued or deemed to be issued pursuant
        to
        the Previous Credit Agreement and outstanding on the Closing Date, a "Facility
        LC") and to renew, extend, increase, decrease or otherwise modify each Facility
        LC ("Modify," and each such action a "Modification"), from time to time from
        and
        including the date of this Agreement and prior to the Facility Termination
        Date
        upon the request of the Borrower; provided
        that
        immediately after each such Facility LC is issued or Modified, (i) the aggregate
        amount of the outstanding LC Obligations shall not exceed $25,000,000 and
        (ii)
        the Aggregate Outstanding Credit Exposure shall not exceed the Aggregate
        Commitment. No Facility LC shall have an expiry date later than the earlier
        of
        (x) the fifth Business Day prior to the Facility Termination Date and (y)
        one
        year after its issuance; provided
        that any
        Facility LC with an expiry date one year after issuance may provide for the
        renewal thereof for additional one-year periods (which shall in no event
        extend
        beyond the date referred to in clause (x) above).

       

      2.3.2  Participations.
        Upon
        (a) the Closing Date with respect to each Facility LC issued and outstanding
        under the Previous Credit Agreement and (b) the issuance or Modification
        by the
        LC Issuer of each other Facility LC in accordance with this Section 2.3,
        the LC
        Issuer shall be deemed, without further action by any party hereto, to have
        unconditionally and irrevocably sold to each Lender, and each Lender shall
        be
        deemed, without further action by any party hereto, to have unconditionally
        and
        irrevocably purchased from the LC Issuer, a participation in such Facility
        LC
        (and each Modification thereof) and the related LC Obligations in proportion
        to
        its Pro Rata Share.

       

      2.3.3  Notice.
        Subject
        to Section 2.3.1, the Borrower shall give the LC Issuer and the Agent notice
        prior to 10:00 a.m. (Louisville time) at least three Business Days, or such
        shorter period of time as may be acceptable to the LC Issuer in its discretion,
        prior to the proposed date of issuance or Modification of each Facility LC,
        specifying the beneficiary, the proposed date of issuance (or Modification)
        and
        the expiry date of such Facility LC, and describing the proposed terms of
        such
        Facility LC and the nature of the transactions proposed to be supported thereby.
        Upon Agent’s receipt of such notice, the Agent shall promptly notify the LC
        Issuer if the proposed amount of such Facility LC will cause the Aggregate
        Outstanding Credit Exposure to equal or exceed the Aggregate Commitment.
        The
        issuance or Modification by the LC Issuer of any Facility LC shall, in addition
        to the conditions precedent set forth in Article IV (the satisfaction of
        which
        the LC Issuer shall have no duty to ascertain), be subject to the conditions
        precedent that such Facility LC shall be satisfactory to the LC Issuer and
        that
        the Borrower shall have executed and delivered a Reimbursement Agreement
        (“LC
        Reimbursement Agreement”) in the form of Exhibit
        Q,
        and
        such application agreement and/or such other instruments and agreements relating
        to such Facility LC as the LC Issuer shall have reasonably requested (each,
        a
        "Facility LC Application"). The terms of the LC Reimbursement Agreement and
        Facility LC Application shall supplement the terms of this Agreement, but
        in the
        event of any conflict between the terms of this Agreement and the terms of
        any
        LC Reimbursement Agreement and/or any Facility LC Application, the terms
        of this
        Agreement shall control. On the date of issuance or Modification by the LC
        Issuer of any Facility LC, the LC Issuer shall notify the Agent, and the
        Agent
        shall promptly notify each Lender of the issuance or Modification of each
        Facility LC, specifying the beneficiary, the date of issuance (or Modification)
        and the expiry date of such Facility LC, the terms of the Facility LC and
        the
        nature of the transactions supported by the Facility LC. 

       

      2.3.4  LC
        Fees.
        The
        Borrower shall pay to the Agent, for the account of the Lenders ratably in
        accordance with their respective Pro Rata Shares, with respect to each Facility
        LC, a letter of credit fee at a per annum rate equal to the Applicable Margin
        for Eurodollar Loans in effect from time to time on the average daily undrawn
        stated amount under such Facility LC, such fee to be payable in arrears on
        each
        Payment Date, and such fee to be payable on the date of such issuance or
        increase (each such fee described in this sentence an "LC Fee"). In addition,
        the Borrower shall pay to the LC Issuer for its own account a fronting fee
        equal
        to 12.5 basis points (0.125%) multiplied by the daily average Letters of
        Credit
        Outstanding, payable quarterly in arrears commencing on the first Business
        Day
        of each October, January, April and July following issuance of each Facility
        LC
        and on the Facility Termination Date. As used herein, “Letters of Credit
        Outstanding” means the aggregate amount available to be drawn on all Facility
        LCs issued and outstanding (including any amounts drawn thereunder and not
        reimbursed, regardless of the existence or satisfaction of any conditions
        or
        limitations on drawing).

       

      2.3.5  Administration;
        Reimbursement by Lenders.
        Upon
        receipt from the beneficiary of any Facility LC of any demand for payment
        in
        connection with a presentation of documents under such Facility LC, the LC
        Issuer shall notify the Agent and the Agent shall promptly notify the Borrower
        and each other Lender as to the amount to be paid by the LC Issuer as a result
        of such demand and the proposed payment date (the "LC Payment Date"). The
        responsibility of the LC Issuer to the Borrower and each Lender shall be
        only to
        determine that the documents (including each demand for payment) delivered
        under
        each Facility LC in connection with such presentment shall be in conformity
        in
        all material respects with such Facility LC. The LC Issuer shall endeavor
        to
        exercise the same care in the issuance and administration of the Facility
        LCs as
        it does with respect to letters of credit in which no participations are
        granted, it being understood that in the absence of any gross negligence
        or
        willful misconduct by the LC Issuer, each Lender shall be unconditionally
        and
        irrevocably liable without regard to the occurrence of any Default or any
        condition precedent whatsoever, to reimburse the LC Issuer on demand for
        (i)
        such Lender's Pro Rata Share of the amount of each payment made by the LC
        Issuer
        under each Facility LC to the extent such amount is not reimbursed by the
        Borrower pursuant to Section 2.3.6 below, plus (ii) interest on the foregoing
        amount to be reimbursed by such Lender, for each day from the date of the
        LC
        Issuer's demand for such reimbursement (or, if such demand is made after
        11:00
        a.m. (Louisville time) on such date, from the next succeeding Business Day)
        to
        the date on which such Lender pays the amount to be reimbursed by it, at
        a rate
        of interest per annum equal to the Federal Funds Effective Rate for the first
        three days and, thereafter, at a rate of interest equal to the rate applicable
        to Floating Rate Advances. 

       

      2.3.6  Reimbursement
        by Borrower.
        The
        Borrower shall be irrevocably and unconditionally obligated to reimburse
        the LC
        Issuer on or before the applicable LC Payment Date for any amounts to be
        paid by
        the LC Issuer upon any drawing under any Facility LC, without presentment,
        demand, protest or other formalities of any kind; provided
        that
        neither the Borrower nor any Lender shall hereby be precluded from asserting
        any
        claim for direct (but not consequential) damages suffered by the Borrower
        or
        such Lender to the extent, but only to the extent, caused by the willful
        misconduct or gross negligence of the LC Issuer in determining whether a
        request
        presented under any Facility LC issued by it complied with the terms of such
        Facility LC. All such amounts paid by the LC Issuer and remaining unpaid
        by the
        Borrower shall bear interest, payable on demand, for each day until paid
        at a
        rate per annum equal to (x) the rate applicable to Floating Rate Advances
        for
        such day if such day falls on or before the applicable LC Payment Date and
        (y)
        the sum of 2% plus the rate applicable to Floating Rate Advances for such
        day if
        such day falls after such LC Payment Date. The LC Issuer will pay to each
        Lender
        ratably in accordance with its Pro Rata Share all amounts received by it
        from
        the Borrower for application in payment, in whole or in part, of the
        Reimbursement Obligation in respect of any Facility LC issued by the LC Issuer,
        but only to the extent such Lender has made payment to the LC Issuer in respect
        of such Facility LC pursuant to Section 2.3.5. Subject to the terms and
        conditions of this Agreement (including without limitation the submission
        of a
        Borrowing Notice in compliance with Section 2.10 and the satisfaction of
        the
        applicable conditions precedent set forth in Article IV), the Borrower may
        request an Advance hereunder for the purpose of satisfying any Reimbursement
        Obligation. 

       

      2.3.7  Obligations
        Absolute.
        The
        Borrower's obligations under this Section 2.3 shall be absolute and
        unconditional under any and all circumstances and irrespective of any setoff,
        counterclaim or defense to payment which the Borrower may have or have had
        against the LC Issuer, any Lender or any beneficiary of a Facility LC. The
        Borrower further agrees with the LC Issuer and the Lenders that the LC Issuer
        and the Lenders shall not be responsible for, and the Borrower's Reimbursement
        Obligation in respect of any Facility LC shall not be affected by, among
        other
        things, the validity or genuineness of documents or of any endorsements thereon,
        even if such documents should in fact prove to be in any or all respects
        invalid, fraudulent or forged, or any dispute between or among the Borrower,
        any
        of its Affiliates, the beneficiary of any Facility LC or any financing
        institution or other party to whom any Facility LC may be transferred or
        any
        claims or defenses whatsoever of the Borrower or of any of its Affiliates
        against the beneficiary of any Facility LC or any such transferee. The LC
        Issuer
        shall not be liable for any error, omission, interruption or delay in
        transmission, dispatch or delivery of any message or advice, however
        transmitted, in connection with any Facility LC. The Borrower agrees that
        any
        action taken or omitted by the LC Issuer or any Lender under or in connection
        with each Facility LC and the related drafts and documents, if done without
        gross negligence or willful misconduct, shall be binding upon the Borrower
        and
        shall not put the LC Issuer or any Lender under any liability to the Borrower.
        Nothing in this Section 2.3.7 is intended to limit the right of the Borrower
        to
        make a claim against the LC Issuer for damages as contemplated by the proviso
        to
        the first sentence of Section 2.3.6.

       

      2.3.8  Actions
        of LC Issuer.
        The LC
        Issuer shall be entitled to rely, and shall be fully protected in relying,
        upon
        any Facility LC, draft, writing, resolution, notice, consent, certificate,
        affidavit, letter, cablegram, telegram, telecopy, telex or teletype message,
        statement, order or other document believed by it to be genuine and correct
        and
        to have been signed, sent or made by the proper Person or Persons, and upon
        advice and statements of legal counsel, independent accountants and other
        experts selected by the LC Issuer. The LC Issuer shall be fully justified
        in
        failing or refusing to take any action under this Agreement unless it shall
        first have received such advice or concurrence of the Required Lenders as
        it
        reasonably deems appropriate or it shall first be indemnified to its reasonable
        satisfaction by the Lenders against any and all liability and expense which
        may
        be incurred by it by reason of taking or continuing to take any such action.
        Notwithstanding any other provision of this Section 2.3, the LC Issuer shall
        in
        all cases be fully protected in acting, or in refraining from acting, under
        this
        Agreement in accordance with a request of the Required Lenders, and such
        request
        and any action taken or failure to act pursuant thereto shall be binding
        upon
        the Lenders and any future holders of a participation in any Facility
        LC.

       

      2.3.9  Indemnification.
        The
        Borrower hereby agrees to indemnify and hold harmless each Lender, the LC
        Issuer
        and the Agent, and their respective directors, officers, agents and employees
        from and against any and all claims and damages, losses, liabilities, costs
        or
        expenses which such Lender, the LC Issuer or the Agent may incur (or which
        may
        be claimed against such Lender, the LC Issuer or the Agent by any Person
        whatsoever) by reason of or in connection with the issuance, execution and
        delivery or transfer of or payment or failure to pay under any Facility LC
        or
        any actual or proposed use of any Facility LC, including, without limitation,
        any claims, damages, losses, liabilities, costs or expenses which the LC
        Issuer
        may incur by reason of or in connection with (i) the failure of any
        other
        Lender to fulfill or comply with its obligations to the LC Issuer hereunder
        (but
        nothing herein contained shall affect any rights the Borrower may have against
        any defaulting Lender) or (ii) by reason of or on account of the LC
        Issuer
        issuing any Facility LC which specifies that the term "Beneficiary" included
        therein includes any successor by operation of law of the named Beneficiary,
        but
        which Facility LC does not require that any drawing by any such successor
        Beneficiary be accompanied by a copy of a legal document, satisfactory to
        the LC
        Issuer, evidencing the appointment of such successor Beneficiary; provided
        that the
        Borrower shall not be required to indemnify any Lender, the LC Issuer or
        the
        Agent for any claims, damages, losses, liabilities, costs or expenses to
        the
        extent, but only to the extent, caused by the willful misconduct or gross
        negligence of the LC Issuer in determining whether a request presented under
        any
        Facility LC complied with the terms of such Facility LC. Nothing in
        this Section
        2.3.9 is intended to limit the obligations of the Borrower under any other
        provision of this Agreement.

       

      2.3.10  Lenders'
        Indemnification.
        Each
        Lender shall, ratably in accordance with its Pro Rata Share, indemnify the
        LC
        Issuer, its affiliates and their respective directors, officers, agents and
        employees (to the extent not reimbursed by the Borrower) against any cost,
        expense (including reasonable counsel fees and disbursements), claim, demand,
        action, loss or liability (except such as result from such indemnitees' gross
        negligence or willful misconduct) that such indemnitees may suffer or incur
        in
        connection with this Section 2.3 or any action taken or omitted by such
        indemnitees hereunder.

       

      2.3.11  Facility
        LC Collateral Account.
        The
        Borrower agrees that it will, upon the request of the Agent or the Required
        Lenders and until the final expiration date of any Facility LC and thereafter
        as
        long as any amount is payable to the LC Issuer or the Lenders in respect
        of any
        Facility LC, maintain a special collateral account pursuant to arrangements
        satisfactory to the Agent (the "Facility LC Collateral Account") at the Agent's
        office at the address specified pursuant to Article XIII, in the name of
        the
        Borrower but under the sole dominion and control of the Agent, for the benefit
        of the Lenders and the LC Issuer and in which the Borrower shall have no
        interest other than as set forth in Section 8.1. The Borrower hereby pledges,
        assigns and grants to the Agent, on behalf of and for the ratable benefit
        of the
        Lenders, and the LC Issuer, a security interest in all of the Borrower's
        right,
        title and interest in and to all funds which may from time to time be on
        deposit
        in the Facility LC Collateral Account to secure the prompt and complete payment
        and performance of the Obligations. The Agent will invest any funds on deposit
        from time to time in the Facility LC Collateral Account in certificates of
        deposit of JPMorgan having a maturity not exceeding 30 days. Nothing in this
        Section 2.3.11 shall either obligate the Agent to require the Borrower to
        deposit any funds in the Facility LC Collateral Account or limit the right
        of
        the Agent to release any funds held in the Facility LC Collateral Account
        in
        each case other than as required by Section 8.1.

       

      2.3.12  Rights
        as a Lender.
        In its
        capacity as a Lender, the LC Issuer shall have the same rights and obligations
        as any other Lender.

       

      2.4  Required
        Payments; Termination.
        Any
        outstanding Advances and all other unpaid Obligations shall be paid in full
        by
        the Borrower on the Facility Termination Date.

       

      2.5  Ratable
        Loans.
        Each
        Advance hereunder shall consist of Loans made from the several Lenders ratably
        according to their Pro Rata Shares.

       

      2.6  Types
        and Number of Eurodollar Advances.
        The
        Advances may be Floating Rate Advances or Eurodollar Advances, or a combination
        thereof, selected by the Borrower in accordance with Sections 2.10 and 2.11,
        or
        Swing Line Loans selected by Borrower in accordance with Section 2.2. The
        Borrower may have no more than six (6) Eurodollar Advances outstanding at
        any
        one time.

       

      2.7  Commitment
        Fee; Reductions in Aggregate Commitment.
        The
        Borrower agrees to pay to the Agent for the account of each Lender according
        to
        its Pro Rata Share a commitment fee (the "Commitment Fee") in arrears at
        a per
        annum rate equal to the Applicable Fee Rate in effect from time to time on
        the
        average daily Available Aggregate Commitment of such Lender from the date
        hereof
        to and including the Facility Termination Date, payable on each Payment Date
        hereafter and on the Facility Termination Date. Swing Line Loans shall not
        count
        as usage of any Lender's Commitment for the purpose of calculating the
        commitment fee due hereunder. In addition, on the Closing Date, the Borrower
        shall pay to the Agent for the ratable account of the lenders then party
        to the
        Previous Credit Agreement, the accrued and unpaid commitment fees under the
        Previous Credit Agreement through Closing Date. The Borrower may permanently
        reduce the Aggregate Commitment in whole, or in part ratably among the Lenders
        in integral multiples of $5,000,000, upon at least one Business Days' written
        notice to the Agent, which notice shall specify the amount of any such
        reduction, provided,
        however,
        that the
        amount of the Aggregate Commitment may not be reduced below the Aggregate
        Outstanding Credit Exposure. All accrued Commitment Fees shall be payable
        on the
        effective date of any termination of the obligations of the Lenders to make
        Credit Extensions hereunder.

       

      2.8  Minimum
        Amount of Each Advance.
        Each
        Eurodollar Advance shall be in the minimum amount of $500,000 (and in multiples
        of $100,000 if in excess thereof), and each Floating Rate Advance (other
        than an
        advance to repay Swing Line Loans) shall be in the minimum amount of $500,000
        (and in multiples of $100,000 if in excess thereof), provided,
        however,
        that any
        Floating Rate Advance may be in the amount of the Available Aggregate
        Commitment.

       

      2.9  Optional
        Principal Payments.
        The
        Borrower may from time to time pay, without penalty or premium, all outstanding
        Floating Rate Advances (other than Swing Line Loans), or, in a minimum aggregate
        amount of $1,000,000 or any integral multiple of $1,000,000 in excess thereof,
        any portion of the outstanding Floating Rate Advances (other than Swing Line
        Loans) upon one Business Day's prior notice to the Agent. The Borrower may
        at
        any time pay, without penalty or premium, all outstanding Swing Line Loans,
        or,
        in a minimum amount of $100,000 and increments of $50,000 in excess thereof,
        any
        portion of the outstanding Swing Line Loans, with notice to the Agent and
        the
        Swing Line Lender by 11:00 a.m. (Louisville Time) on the date of repayment.
        The
        Borrower may from time to time pay, subject to the payment of any funding
        indemnification amounts required by Section 3.4 but without penalty or premium,
        all outstanding Eurodollar Advances or any portion of the outstanding Eurodollar
        Advances upon three (3) Business Days' prior notice to the Agent. 

       

      2.10  Method
        of Selecting Types and Interest Periods for New Advances.
        Each
        Type of Advance shall bear interest according to its Type, from the date
        the
        Advance is made until it is repaid. The Borrower shall select the Type of
        Advance and, in the case of each Eurodollar Advance, the Interest Period
        applicable thereto from time to time. The Borrower shall give the Agent
        irrevocable notice (a "Borrowing Notice") not later than 11:00 a.m. (Louisville
        time) at least one Business Day before the Borrowing Date of each Floating
        Rate
        Advance and three Business Days before the Borrowing Date for each Eurodollar
        Advance, specifying:

       

      (i)  the
        Borrowing Date, which shall be a Business Day, of such Advance,

      

      (ii)  the
        aggregate amount of such Advance,

      

      (iii)  the
        Type
        of Advance selected, and

      

      (iv)  in
        the
        case of each Eurodollar Advance, the Interest Period applicable
        thereto.

      

      Not
        later
        than 1:00 p.m. (Louisville time) on each Borrowing Date, each Lender shall
        make
        available its Loan or Loans in funds immediately available in Louisville
        to the
        Agent at its address specified pursuant to Article XIII. The Agent will make
        the
        funds so received from the Lenders available to the Borrower at the Agent's
        aforesaid address. 

      

      2.11  Conversion
        and Continuation of Outstanding Advances.
        Floating Rate Advances (other than Swing Line Loans) shall continue as Floating
        Rate Advances unless and until such Floating Rate Advances are converted
        into
        Eurodollar Advances pursuant to this Section 2.11 or are repaid in accordance
        with Section 2.9. Each Eurodollar Advance shall continue as a Eurodollar
        Advance
        until the end of the then applicable Interest Period therefor, at which time
        such Eurodollar Advance shall be automatically converted into a Floating
        Rate
        Advance unless (x) such Eurodollar Advance is or was repaid in accordance
        with
        Section 2.9 or (y) the Borrower shall have given the Agent a
        Conversion/Continuation Notice (as defined below) requesting that, at the
        end of
        such Interest Period, such Eurodollar Advance continue as a Eurodollar Advance
        for the same or another Interest Period. Subject to the terms of Section
        2.10,
        the Borrower may elect from time to time to convert all or any part of a
        Floating Rate Advance (other than a Swing Line Loan) into a Eurodollar Advance.
        The Borrower shall give the Agent irrevocable notice (a "Conversion/Continuation
        Notice") of each conversion of a Floating Rate Advance into a Eurodollar
        Advance
        or continuation of a Eurodollar Advance not later than 11:00 a.m. (Louisville
        time) at least three Business Days prior to the date of the requested conversion
        or continuation, specifying:

      

      (i)  the
        requested date, which shall be a Business Day, of such conversion or
        continuation,

      

      (ii)  the
        aggregate amount and Type of the Advance which is to be converted or continued,
        and

      

      (iii)  the
        amount of such Advance which is to be converted into or continued as a
        Eurodollar Advance and the duration of the Interest Period applicable
        thereto.

      

      2.12  Changes
        in Interest Rate, etc.
        Each
        Floating Rate Advance (other than a Swing Line Loan) shall bear interest
        on the
        outstanding principal amount thereof, for each day from and including the
        date
        such Advance is made or is automatically converted from a Eurodollar Advance
        into a Floating Rate Advance pursuant to Section 2.11, to but excluding the
        date
        it is paid or is converted into a Eurodollar Advance pursuant to Section
        2.11
        hereof, at a rate per annum equal to the Floating Rate for such day. Each
        Swing
        Line Loan shall bear interest on the outstanding principal amount thereof,
        for
        each day from and including the day such Swing Line Loan is made to but
        excluding the date it is paid, at a rate per annum equal to the Floating
        Rate
        for such day. Changes in the rate of interest on that portion of any Advance
        maintained as a Floating Rate Advance will take effect simultaneously with
        each
        change in the Alternate Base Rate. Each Eurodollar Advance shall bear interest
        on the outstanding principal amount thereof from and including the first
        day of
        the Interest Period applicable thereto to (but not including) the last day
        of
        such Interest Period at the interest rate determined by the Agent as applicable
        to such Eurodollar Advance based upon the Borrower's selections under Sections
        2.10 and 2.11 and otherwise in accordance with the terms hereof. No Interest
        Period may end after the Facility Termination Date. 

       

      2.13  Rates
        Applicable After Default.
        Notwithstanding anything to the contrary contained in Section 2.10, 2.11
        or
        2.12, during the continuance of a Default or Unmatured Default the Required
        Lenders may, at their option, by notice to the Borrower (which notice may
        be
        revoked at the option of the Required Lenders notwithstanding any provision
        of
        Section 8.2 requiring unanimous consent of the Lenders to changes in interest
        rates), declare that no Advance may be made as, converted into or continued
        as a
        Eurodollar Advance. During the continuance of a Default the Required Lenders
        may, at their option, by notice to the Borrower (which notice may be revoked
        at
        the option of the Required Lenders notwithstanding any provision of Section
        8.2
        requiring unanimous consent of the Lenders to changes in interest rates),
        declare that (i) each Eurodollar Advance shall bear interest for the remainder
        of the applicable Interest Period at the rate otherwise applicable to such
        Interest Period plus 2% per annum, and (ii) each Floating Rate Advance shall
        bear interest at a rate per annum equal to the Floating Rate in effect from
        time
        to time plus 2% per annum and (iii) the LC Fee shall be increased by 2% per
        annum, provided
        that,
        during the continuance of a Default under Section 7.6 or 7.7, the interest
        rates
        set forth in clauses (i) and (ii) above and the increase in the LC Fee set
        forth
        in clause (iii) above shall be applicable to all Credit Extensions without
        any
        election or action on the part of the Agent or any Lender. 

       

      2.14  Method
        of Payment.
        All
        payments of the Obligations hereunder shall be made, without setoff, deduction,
        or counterclaim, in immediately available funds to the Agent at the Agent's
        address specified pursuant to Article XIII, or at any other Lending Installation
        of the Agent specified in writing by the Agent to the Borrower, by noon (local
        time) on the date when due and shall (except with respect to repayments of
        Swing
        Line Loans, and in the case of Reimbursement Obligations for which the LC
        Issuer
        has not been fully indemnified by the Lenders, or as otherwise specifically
        required hereunder) be applied ratably by the Agent among the Lenders. Each
        payment delivered to the Agent for the account of any Lender shall be delivered
        promptly by the Agent to such Lender, in the same type of funds that the
        Agent
        received, at such Lender's address specified pursuant to Article XIII or
        at any
        Lending Installation specified in a notice received by the Agent from such
        Lender. The Agent is hereby authorized to charge the account of the Borrower
        maintained with JPMorgan for each payment of principal, interest Reimbursement
        Obligations and fees as it becomes due hereunder. Each
        reference to the Agent in this Section 2.14 shall also be deemed to refer,
        and
        shall apply equally, to the LC Issuer, in the case of payments required to
        be
        made by the Borrower to the LC Issuer pursuant to Section 2.3.6.

       

      2.15  Noteless
        Agreement; Evidence of Indebtedness.
        

       

      
        	(i)  	
                Each
                  Lender shall maintain in accordance with its usual practice an
                  account or
                  accounts evidencing the indebtedness of the Borrower to such Lender
                  resulting from each Loan made by such Lender from time to time,
                  including
                  the amounts of principal and interest payable and paid to such
                  Lender from
                  time to time hereunder.

              

      

       

      
        	(ii)  	
                The
                  Agent shall also maintain accounts in which it will record (a)
                  the amount
                  of each Loan made hereunder, the Type thereof and the Interest
                  Period (if
                  applicable) with respect thereto, (b) the amount of any principal
                  or
                  interest due and payable or to become due and payable from the
                  Borrower to
                  each Lender hereunder, (c) the original stated amount of each Facility
                  LC
                  and the amount of LC Obligations outstanding at any time, and (d)
                  the
                  amount of any sum received by the Agent hereunder from the Borrower
                  and
                  each Lender's share thereof.

              

      

       

      
        	(iii)  	
                The
                  entries maintained in the accounts maintained pursuant to paragraphs
                  (i)
                  and (ii) above shall be prima
                  facie
                  evidence of the existence and amounts of the Obligations therein
                  recorded;
                  provided,
                  however, that
                  the failure of the Agent or any Lender to maintain such accounts
                  or any
                  error therein shall not in any manner affect the obligation of
                  the
                  Borrower to repay the Obligations in accordance with their
                  terms.

              

      

       

      
        	(iv)  	
                Any
                  Lender may request that its Loans be evidenced by a promissory
                  note or, in
                  the case of the Swing Line Lender, promissory notes representing
                  its
                  Revolving Loans and Swing Line Loans, respectively, substantially
                  in the
                  form of Exhibit
                  E,
                  with appropriate changes for notes evidencing Swing Line Loans
                  (each, a
                  "Note"). In such event, the Agent shall prepare and forward to
                  the
                  Borrower for execution and delivery to such Lender a Note or Notes
                  payable
                  to the order of such Lender. Thereafter, the Loans evidenced by
                  each such
                  Note and interest thereon shall at all times (prior to any assignment
                  pursuant to Section 12.3) be represented by one or more Notes payable
                  to
                  the order of the payee named therein, except to the extent that
                  any such
                  Lender subsequently returns any such Note for cancellation and
                  requests
                  that such Loans once again be evidenced as described in paragraphs
                  (i) and
                  (ii) above.

              

      

       

      2.16  Telephonic
        Notices.
        The
        Borrower hereby authorizes the Lenders and the Agent to extend, convert or
        continue Advances, effect selections of Types of Advances and to transfer
        funds
        based on telephonic notices made by any person or persons the Agent or any
        Lender in good faith believes to be acting on behalf of the Borrower, it
        being
        understood that the foregoing authorization is specifically intended to allow
        Borrowing Notices and Conversion/Continuation Notices to be given
        telephonically. The Borrower agrees to deliver promptly to the Agent a written
        confirmation signed by an Authorized Officer, if such confirmation is requested
        by the Agent or any Lender, of each telephonic notice. If the written
        confirmation differs in any material respect from the action taken by the
        Agent
        and the Lenders, the records of the Agent and the Lenders shall govern absent
        manifest error.

       

      2.17  Interest
        Payment Dates; Interest and Fee Basis.
        Interest accrued on each Floating Rate Advance shall be payable on each Payment
        Date, commencing with the first such date to occur after the date hereof,
        on
        each date set forth in the Working Cash Sweep Rider, on any date on which
        the
        Floating Rate Advance is prepaid, whether due to acceleration or otherwise,
        and
        on the Facility Termination Date. Interest accrued on that portion of the
        outstanding principal amount of any Floating Rate Advance converted into
        a
        Eurodollar Advance on a day other than a Payment Date shall be payable on
        the
        date of conversion. Interest accrued on each Eurodollar Advance shall be
        payable
        on the last day of its applicable Interest Period, on any date on which the
        Eurodollar Advance is prepaid, whether by acceleration or otherwise, and
        on the
        Facility Termination Date. Interest accrued on each Eurodollar Advance having
        an
        Interest Period longer than three months shall also be payable on the last
        day
        of each three-month interval during such Interest Period. Interest, Commitment
        Fees and LC Fees shall be calculated for actual days elapsed on the basis
        of a
        360-day year, except for interest payable on Advances at the Alternate Base
        Rate
        which shall accrue on the basis of the actual number of days elapsed over
        a year
        of 365 or 366 days, as appropriate. Interest shall be payable for the day
        an
        Advance is made but not for the day of any payment on the amount paid if
        payment
        is received prior to noon (local time) at the place of payment. If any payment
        of principal of or interest on an Advance shall become due on a day which
        is not
        a Business Day, such payment shall be made on the next succeeding Business
        Day
        and, in the case of a principal payment, such extension of time shall be
        included in computing interest in connection with such payment.

       

      2.18  Notification
        of Advances, Interest Rates, Prepayments and Commitment
        Reductions.
        Promptly after receipt thereof, the Agent will notify each Lender of the
        contents of each Aggregate Commitment reduction notice, Borrowing Notice,
        Conversion/Continuation Notice, and repayment notice received by it hereunder.
        Promptly after notice from the LC Issuer, the Agent will notify each Lender
        of
        the contents of each request for issuance of a Facility LC hereunder. The
        Agent
        will notify each Lender of the interest rate applicable to each Eurodollar
        Advance promptly upon determination of such interest rate and will give each
        Lender prompt notice of each change in the Alternate Base Rate.

       

      2.19  Lending
        Installations.
        Each
        Lender may book its Loans and its participation in any LC Obligations and
        the LC
        Issuer may book the Facility LCs at any Lending Installation selected by
        such
        Lender or the LC Issuer, as the case may be, and may change its Lending
        Installation from time to time. All terms of this Agreement shall apply to
        any
        such Lending Installation and the Loans, Facility LCs, participations in
        LC
        Obligations and any Notes issued hereunder shall be deemed held by each Lender
        or the LC Issuer, as the case may be, for the benefit of any such Lending
        Installation. Each Lender and the LC Issuer may, by written notice to the
        Agent
        and the Borrower in accordance with Article XIII, designate replacement or
        additional Lending Installations through which Loans will be made by it or
        Facility LCs will be issued by it and for whose account Loan payments or
        payments with respect to Facility LCs are to be made.

       

      2.20  Non-Receipt
        of Funds by the Agent.
        Unless
        the Borrower or a Lender, as the case may be, notifies the Agent prior to
        the
        date on which it is scheduled to make payment to the Agent of (i) in the
        case of
        a Lender, the proceeds of a Loan or (ii) in the case of the Borrower, a payment
        of principal, interest or fees to the Agent for the account of the Lenders,
        that
        it does not intend to make such payment, the Agent may assume that such payment
        has been made. The Agent may, but shall not be obligated to, make the amount
        of
        such payment available to the intended recipient in reliance upon such
        assumption. If such Lender or the Borrower, as the case may be, has not in
        fact
        made such payment to the Agent, the recipient of such payment shall, on demand
        by the Agent, repay to the Agent the amount so made available together with
        interest thereon in respect of each day during the period commencing on the
        date
        such amount was so made available by the Agent until the date the Agent recovers
        such amount at a rate per annum equal to (x) in the case of payment by a
        Lender,
        the Federal Funds Effective Rate for such day for the first three days and,
        thereafter, the interest rate applicable to the relevant Loan or (y) in the
        case
        of payment by the Borrower, the interest rate applicable to the relevant
        Loan.

       

      2.21  Replacement
        of Lender.
        If the
        Borrower is required pursuant to Section 3.1, 3.2 or 3.5 to make any additional
        payment to any Lender or if any Lender's obligation to make or continue,
        or to
        convert Floating Rate Advances into, Eurodollar Advances shall be suspended
        pursuant to Section 3.3 (any Lender so affected an "Affected Lender"), the
        Borrower may elect, if such amounts continue to be charged or such suspension
        is
        still effective, to replace such Affected Lender as a Lender party to this
        Agreement, provided
        that no
        Default or Unmatured Default shall have occurred and be continuing at the
        time
        of such replacement, and provided
        further
        that,
        concurrently with such replacement, (i) another bank or other entity which
        is
        reasonably satisfactory to the Borrower and the Agent shall agree, as of
        such
        date, to purchase for cash the Advances and other Obligations due to the
        Affected Lender pursuant to an assignment substantially in the form of
Exhibit
        C
        and to
        become a Lender for all purposes under this Agreement and to assume all
        obligations of the Affected Lender to be terminated as of such date and to
        comply with the requirements of Section 12.3 applicable to assignments, and
        (ii)
        the Borrower shall pay to such Affected Lender in same day funds on the day
        of
        such replacement (A) all interest, fees and other amounts then accrued but
        unpaid to such Affected Lender by the Borrower hereunder to and including
        the
        date of termination, including without limitation payments due to such Affected
        Lender under Sections 3.1, 3.2 and 3.5, and (B) an amount, if any, equal
        to the
        payment which would have been due to such Lender on the day of such replacement
        under Section 3.4 had the Loans of such Affected Lender been prepaid on such
        date rather than sold to the replacement Lender.

       

      2.22  Increase
        in Commitments. 

       

      2.22.1  Amount
        of Increase in Commitments.
        The
        Borrower may at any time, with the consent of the Agent but without the consent
        of the Lenders except as provided in Sections 2.22.2 and 2.22.5(i), increase
        the
        Aggregate Commitment up to an amount not to exceed $250,000,000, subject
        to
        satisfaction of each and all of the requirements contained in this
        Section 2.22.

       

      2.22.2  Eligibility.
        Each
        Lender who provides an increase in the Aggregate Commitment (each a "New
        Commitment Provider") shall be either an existing Lender at the time of the
        increase (each an "Existing Lender") or a financial institution reasonably
        acceptable to the Agent and the Borrower (and the Borrower’s acceptance shall
        not be unreasonably withheld) that is not then currently a Lender (each a
        "New
        Lender") provided, that the Borrower shall first offer any increase in the
        Commitments to the Existing Lenders by giving notice thereof to each of the
        Existing Lenders and fifteen (15) Business Days to respond to such notice
        (failure to respond on a timely basis shall be deemed a rejection).
        Any
        notice given hereunder shall not be deemed to be a request for, or requirement
        of, consent from any Existing Lender who is not a New Commitment Provider
        to the
        increase in the Aggregate Commitment.

       

      2.22.3  Notice.
        The
        Borrower and the Agent jointly shall notify the Lenders at least fifteen
        (15)
        Business Days before the date ("Commitment Increase Effective Date") any
        increase in the Aggregate Commitment shall become effective. Such notice
        shall
        state the amount of the increase in the Aggregate Commitment, the names of
        the
        Lenders providing the additional Commitments and the Commitment Increase
        Effective Date. 

       

      2.22.4  Minimum
        Amount.
        Any
        increase in the Aggregate Commitment provided by any individual Lender shall
        be
        in an amount not less than $5,000,000 and integral multiples of $1,000,000
        in
        excess thereof.

       

      2.22.5  Implementation
        of Increase.
        On the
        Commitment Increase Effective Date:

       

      
        	(i)  	
                Joinder.
                  Each New Commitment Provider shall execute and deliver to the Agent
                  two
                  Business Days prior to the Commitment Increase Effective Date a
                  Joinder in
                  the form attached as Exhibit
                  L
                  ("Lender Joinder"), which shall become effective on the Commitment
                  Increase Effective Date. The Lender Joinder shall set forth the
                  Commitment
                  provided by the New Commitment Provider if it is a New Lender and
                  the new
                  amount of the Commitment and the increase in the Commitment to
                  be provided
                  if it is an Existing Lender. If the New Commitment Provider is
                  a New
                  Lender it shall on the Effective Date join and become a party to
                  this
                  Agreement and the other Loan Documents as a Lender for all purposes
                  hereunder and thereunder, subject to the provisions of this Section
                  2.22,
                  having a Commitment as set forth in the Lender Joinder tendered
                  by the
                  same.
                  Any Lender whose Commitment shall remain unaffected shall be deemed
                  to
                  have consented and agreed to such Lender
                  Joinder.

              

      

       

      
        	(ii)  	
                Floating
                  Rate Loans.
                  Each New Commitment Provider shall (i) purchase from the other
                  Lenders
                  such New Commitment Provider's Pro Rata Share in any Floating Rate
                  Loans
                  outstanding on the Commitment Increase Effective Date, and (ii)
                  share
                  ratably in all Floating Rate Loans borrowed by the Borrower after
                  the
                  Commitment Increase Effective Date.

              

      

       

      
        	(iii)  	
                Eurodollar
                  Rate Loans.
                  Each New Commitment Provider shall (a) purchase from the
                  other
                  Lenders such New Commitment Provider's Pro Rata Share in each outstanding
                  Eurodollar Loan on the date on which the Borrower either renews
                  its
                  Eurodollar Loan election with respect to the Eurodollar Loan in
                  question
                  or converts such Eurodollar Loan to a Floating Rate Loan, provided
                  that
                  the New Commitment Providers shall not purchase an interest in
                  such Loans
                  from the other Lenders on the Commitment Increase Effective Date
                  (unless
                  the Commitment Increase Effective Date is a renewal or conversion
                  date, as
                  applicable, in which case the preceding sentence shall apply),
                  and (b)
                  shall participate in all new Eurodollar Loans borrowed by the Borrower
                  on
                  and after the Commitment Increase Effective
                  Date.

              

      

       

      
        	(iv)  	
                Facility
                  LCs.
                  Each New Commitment Provider shall participate in all Facility
                  LCs
                  outstanding on the Commitment Increase Effective Date according
                  to its Pro
                  Rata Share
                  and in accordance with the terms of this
                  Agreement.

              

      

       

      
        	(v)  	
                Limit
                  on Amount.
                  Any increase in the Commitments pursuant to this Section 2.22 may
                  not
                  cause the total amount of the Commitments to exceed
                  $250,000,000.

              

      

       

      
        	(vi)  	
                No
                  Default or Unmatured Default;
                  Representations and Warranties.
                  There shall exist no Default or Unmatured Default on the Commitment
                  Increase Effective Date. Without limiting that sentence, the
                  representations and warranties contained in Article V must be true
                  and
                  correct in all material respects as of such Commitment Increase
                  Effective
                  Date except to the extent any such representation is stated to
                  relate
                  solely to an earlier date, in which case such representation shall
                  have
                  been true and correct on and as of such earlier date. If a Default
                  or
                  Unmatured Default exists on such Commitment Increase Effective
                  Date, or
                  such representations and warranties are not true and correct to
                  the extent
                  and as required in the second sentence of this Section 2.22.5(vi),
                  the
                  Borrower shall not request an increase of, and may not increase,
                  the
                  Aggregate Commitment.

              

      

       

      
        	(vii)  	
                No
                  Obligation.
                  No Existing Lender shall be required to increase its Commitment
                  in the
                  event that the Borrower asks such Existing Lender to provide all
                  or a
                  portion of any increase in the Aggregate Commitment desired by
                  the
                  Borrower.

              

      

       

      

      

      ARTICLE
        III

      

      YIELD
        PROTECTION; TAXES

      

      

      3.1 Yield
        Protection.
        If, on
        or after the date of this Agreement, the adoption of any law or any governmental
        or quasi-governmental rule, regulation, policy, guideline or directive (whether
        or not having the force of law), or any change in the interpretation or
        administration thereof by any governmental or quasi-governmental authority,
        central bank or comparable agency charged with the interpretation or
        administration thereof, or compliance by any Lender or applicable Lending
        Installation or the LC Issuer with any request or directive (whether or not
        having the force of law) of any such authority, central bank or comparable
        agency:

      

      
        	(i)  	
                subjects
                  any Lender or any applicable Lending Installation or the LC Issuer
                  to any
                  Taxes, or changes the basis of taxation of payments (other than
                  with
                  respect to Excluded Taxes) to any Lender or the LC Issuer in respect
                  of
                  its Eurodollar Loans, Facility LCs or participations therein,
                  or

              

      

      

      
        	(ii)  	
                imposes
                  or increases or deems applicable any reserve, assessment, insurance
                  charge, special deposit or similar requirement against assets of,
                  deposits
                  with or for the account of, or credit extended by, any Lender or
                  any
                  applicable Lending Installation or the LC Issuer (other than reserves
                  and
                  assessments taken into account in determining the interest rate
                  applicable
                  to Eurodollar Advances), or

              

      

      

      
        	(iii)  	
                imposes
                  any other condition the result of which is to increase the cost
                  to any
                  Lender or any applicable Lending Installation or the LC Issuer
                  of making,
                  funding or maintaining its Eurodollar Loans, or of issuing or
                  participating in Facility LCs, or reduces any amount receivable
                  by any
                  Lender or any applicable Lending Installation or the LC Issuer
                  in
                  connection with its Eurodollar Loans, Facility LCs or participations
                  therein, or requires any Lender or any applicable Lending Installation
                  or
                  the LC Issuer to make any payment calculated by reference to the
                  amount of
                  Eurodollar Loans, Facility LCs or participations therein held or
                  interest
                  received by it, by an amount deemed material by such Lender or
                  the LC
                  Issuer, as the case may be,

              

      

      

      and
        the
        result of any of the foregoing is to increase the cost to such Lender or
        applicable Lending Installation Lender or the LC Issuer, as the case may
        be, of
        making or maintaining its Eurodollar Loans or Commitment or of issuing or
        participating in Facility LCs or to reduce the return received by such Lender
        or
        applicable Lending Installation or the LC Issuer, as the case may be, in
        connection with such Eurodollar Loans, Commitment, Facility LCs or
        participations therein, then, within 15 days of demand by such Lender or
        the LC
        Issuer, as the case may be, the Borrower shall pay such Lender or the LC
        Issuer,
        as the case may be, such additional amount or amounts as will compensate
        such
        Lender, or the LC Issuer, as the case may be, for such increased cost or
        reduction in amount received.

      

      3.2 Changes
        in Capital Adequacy Regulations.
        If a
        Lender or the LC Issuer determines the amount of capital required or expected
        to
        be maintained by such Lender or the LC Issuer, any Lending Installation of
        such
        Lender or the LC Issuer or any corporation controlling such Lender or the
        LC
        Issuer is increased as a result of a Change, then, within 15 days of demand
        by
        such Lender or the LC Issuer, the Borrower shall pay such Lender or the LC
        Issuer the amount necessary to compensate for any shortfall in the rate of
        return on the portion of such increased capital which such Lender or the
        LC
        Issuer determines is attributable to this Agreement, its Outstanding Credit
        Exposure or its Commitment to make Loans and issue or participate in Facility
        LCs, as the case may be, hereunder (after taking into account such Lender
        or the
        LC Issuer's policies as to capital adequacy). "Change" means (i) any change
        after the date of this Agreement in the Risk-Based Capital Guidelines or
        (ii)
        any adoption of or change in any other law, governmental or quasi-governmental
        rule, regulation, policy, guideline, interpretation, or directive (whether
        or
        not having the force of law) after the date of this Agreement which affects
        the
        amount of capital required or expected to be maintained by any Lender or
        the LC
        Issuer or any Lending Installation or any corporation controlling any Lender
        or
        the LC Issuer. "Risk-Based Capital Guidelines" means (i) the risk-based capital
        guidelines in effect in the United States on the date of this Agreement,
        including transition rules, and (ii) the corresponding capital regulations
        promulgated by regulatory authorities outside the United States implementing
        the
        July 1988 report of the Basle Committee on Banking Regulation and Supervisory
        Practices Entitled "International Convergence of Capital Measurements and
        Capital Standards," including transition rules, and any amendments to such
        regulations adopted prior to the date of this Agreement.

      

      3.3 Availability
        of Types of Advances.
        If any
        Lender determines that maintenance of its Eurodollar Loans at a suitable
        Lending
        Installation would violate any applicable law, rule, regulation, or directive,
        whether or not having the force of law, or if the Required Lenders determine
        that (i) deposits of a type and maturity appropriate to match fund Eurodollar
        Advances are not available or (ii) the interest rate applicable to Eurodollar
        Advances does not accurately reflect the cost of making or maintaining
        Eurodollar Advances, then the Agent shall suspend the availability of Eurodollar
        Advances and require any affected Eurodollar Advances to be repaid or converted
        to Floating Rate Advances, subject to the payment of any funding indemnification
        amounts required by Section 3.4.

      

      3.4 Funding
        Indemnification.
        If any
        payment of a Eurodollar Advance occurs on a date which is not the last day
        of
        the applicable Interest Period, whether because of acceleration, prepayment
        or
        otherwise, or a Eurodollar Advance is not made on the date specified by the
        Borrower for any reason other than default by the Lenders, the Borrower will
        indemnify each Lender for any loss or cost incurred by it resulting therefrom,
        including, without limitation, any loss or cost in liquidating or employing
        deposits acquired to fund or maintain such Eurodollar Advance.

      

      3.5 Taxes.
        

      

      
        	(i)  	
                All
                  payments by the Borrower to or for the account of any Lender, the
                  LC
                  Issuer or the Agent hereunder or under any Note or Facility LC
                  Application
                  shall be made free and clear of and without deduction for any and
                  all
                  Taxes. If the Borrower shall be required by law to deduct any Taxes
                  from
                  or in respect of any sum payable hereunder to any Lender, the LC
                  Issuer or
                  the Agent, (a) the sum payable shall be increased as necessary
                  so that
                  after making all required deductions (including deductions applicable
                  to
                  additional sums payable under this Section 3.5) such Lender, the
                  LC Issuer
                  or the Agent (as the case may be) receives an amount equal to the
                  sum it
                  would have received had no such deductions been made, (b) the Borrower
                  shall make such deductions, (c) the Borrower shall pay the full
                  amount
                  deducted to the relevant authority in accordance with applicable
                  law and
                  (d) the Borrower shall furnish to the Agent the original copy of
                  a receipt
                  evidencing payment thereof within 30 days after such payment is
                  made.

              

      

      

      
        	(ii)  	
                In
                  addition, the Borrower hereby agrees to pay any present or future
                  stamp or
                  documentary taxes and any other excise or property taxes, charges
                  or
                  similar levies which arise from any payment made hereunder or under
                  any
                  Note or Facility LC Application or from the execution or delivery
                  of, or
                  otherwise with respect to, this Agreement or any Note or any Facility
                  LC
                  Application ("Other Taxes").

              

      

      

      
        	(iii)  	
                The
                  Borrower hereby agrees to indemnify the Agent, the LC Issuer and
                  each
                  Lender for the full amount of Taxes or Other Taxes (including,
                  without
                  limitation, any Taxes or Other Taxes imposed on amounts payable
                  under this
                  Section 3.5) paid by the Agent, the LC Issuer or such Lender as
                  a result
                  of its Commitment, any Loans made by it hereunder, or otherwise
                  in
                  connection with its participation in this Agreement and any liability
                  (including penalties, interest and expenses) arising therefrom
                  or with
                  respect thereto. Payments due under this indemnification shall
                  be made
                  within 30 days of the date the Agent, the LC Issuer or such Lender
                  makes
                  demand therefor pursuant to Section
                  3.6.

              

      

      

      
        	(iv)  	
                Each
                  Lender that is not incorporated under the laws of the United States
                  of
                  America or a state thereof (each a "Non-U.S. Lender") agrees that
                  it will,
                  not more than ten Business Days after the date of this Agreement,
                  (i)
                  deliver to the Agent two duly completed copies of United States
                  Internal
                  Revenue Service Form W-8BEN or W-8ECI, certifying in either case
                  that such
                  Lender is entitled to receive payments under this Agreement without
                  deduction or withholding of any United States federal income taxes,
                  and
                  (ii) deliver to the Agent a United States Internal Revenue Form
                  W-8 or
                  W-9, as the case may be, and certify that it is entitled to an
                  exemption
                  from United States backup withholding tax. Each Non-U.S. Lender
                  further
                  undertakes to deliver to each of the Borrower and the Agent (x)
                  renewals
                  or additional copies of such form (or any successor form) on or
                  before the
                  date that such form expires or becomes obsolete, and (y) after
                  the
                  occurrence of any event requiring a change in the most recent forms
                  so
                  delivered by it, such additional forms or amendments thereto as
                  may be
                  reasonably requested by the Borrower or the Agent. All forms or
                  amendments
                  described in the preceding sentence shall certify that such Lender
                  is
                  entitled to receive payments under this Agreement without deduction
                  or
                  withholding of any United States federal income taxes, unless
                  an
                  event (including without limitation any change in treaty, law or
                  regulation) has occurred prior to the date on which any such delivery
                  would otherwise be required which renders all such forms inapplicable
                  or
                  which would prevent such Lender from duly completing and delivering
                  any
                  such form or amendment with respect to it and such Lender advises
                  the
                  Borrower and the Agent that it is not capable of receiving payments
                  without any deduction or withholding of United States federal income
                  tax.

              

      

      

      
        	(v)  	
                For
                  any period during which a Non-U.S. Lender has failed to provide
                  the
                  Borrower with an appropriate form pursuant to clause (iv), above
                  (unless
                  such failure is due to a change in treaty, law or regulation, or
                  any
                  change in the interpretation or administration thereof by any governmental
                  authority, occurring subsequent to the date on which a form originally
                  was
                  required to be provided), such Non-U.S. Lender shall not be entitled
                  to
                  indemnification under this Section 3.5 with respect to Taxes imposed
                  by
                  the United States; provided
                  that, should a Non-U.S. Lender which is otherwise exempt from or
                  subject
                  to a reduced rate of withholding tax become subject to Taxes because
                  of
                  its failure to deliver a form required under clause (iv), above,
                  the
                  Borrower shall take such steps as such Non-U.S. Lender shall reasonably
                  request to assist such Non-U.S. Lender to recover such
                  Taxes.

              

      

      

      
        	(vi)  	
                Any
                  Lender that is entitled to an exemption from or reduction of withholding
                  tax with respect to payments under this Agreement or any Note pursuant
                  to
                  the law of any relevant jurisdiction or any treaty shall deliver
                  to the
                  Borrower (with a copy to the Agent), at the time or times prescribed
                  by
                  applicable law, such properly completed and executed documentation
                  prescribed by applicable law as will permit such payments to be
                  made
                  without withholding or at a reduced
                  rate.

              

      

      

      
        	(vii)  	
                If
                  the U.S. Internal Revenue Service or any other governmental authority
                  of
                  the United States or any other country or any political subdivision
                  thereof asserts a claim that the Agent did not properly withhold
                  tax from
                  amounts paid to or for the account of any Lender (because the appropriate
                  form was not delivered or properly completed, because such Lender
                  failed
                  to notify the Agent of a change in circumstances which rendered
                  its
                  exemption from withholding ineffective, or for any other reason),
                  such
                  Lender shall indemnify the Agent fully for all amounts paid, directly
                  or
                  indirectly, by the Agent as tax, withholding therefor, or otherwise,
                  including penalties and interest, and including taxes imposed by
                  any
                  jurisdiction on amounts payable to the Agent under this subsection,
                  together with all costs and expenses related thereto (including
                  attorneys
                  fees and time charges of attorneys for the Agent, which attorneys
                  may be
                  employees of the Agent). The obligations of the Lenders under this
                  Section
                  3.5(vii) shall survive the payment of the Obligations and termination
                  of
                  this Agreement. 

              

      

      

      3.6 Lender
        Statements; Survival of Indemnity.
        To the
        extent reasonably possible, each Lender shall designate an alternate Lending
        Installation with respect to its Eurodollar Loans to reduce any liability
        of the
        Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the
        unavailability of Eurodollar Advances under Section 3.3, so long as such
        designation is not, in the judgment of such Lender, disadvantageous to such
        Lender. Each Lender shall deliver a written statement of such Lender to the
        Borrower (with a copy to the Agent) as to the amount due, if any, under Section
        3.1, 3.2, 3.4 or 3.5. Such written statement shall set forth in reasonable
        detail the calculations upon which such Lender determined such amount and
        shall
        be final, conclusive and binding on the Borrower in the absence of manifest
        error. Determination of amounts payable under such Sections in connection
        with a
        Eurodollar Loan shall be calculated as though each Lender funded its Eurodollar
        Loan through the purchase of a deposit of the type and maturity corresponding
        to
        the deposit used as a reference in determining the Eurodollar Rate applicable
        to
        such Loan, whether in fact that is the case or not. Unless otherwise provided
        herein, the amount specified in the written statement of any Lender shall
        be
        payable on demand after receipt by the Borrower of such written statement.
        The
        obligations of the Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive
        payment of the Obligations and termination of this Agreement.

      

      

      ARTICLE
        IV

      

      CONDITIONS
        PRECEDENT

      

      

      4.1. Initial
        Credit Extension.
        The
        effectiveness of this Agreement and the obligation of the Lenders to make
        the
        initial Credit Extension hereunder, which initial Credit Extension shall
        occur
        no later than September 23, 2005, shall be subject to the satisfaction of
        the
        following conditions precedent and, if applicable, the delivery by the Borrower
        to the Agent with sufficient copies for the Lenders of the
        following:

      
        	(i)  	
                the
                  Borrower has furnished to the Agent, with sufficient copies for
                  the
                  Lenders, the following, in each case satisfactory to the Agent,
                  in its
                  discretion, and its counsel:

              

      

      

      
        	(a)  	
                Copies
                  of the articles or certificate of incorporation of the Borrower
                  and each
                  other Loan Party, together with all amendments, and a certificate
                  of good
                  standing (or comparable certificate in the case of those governmental
                  offices which do not issue good standing certificates), each certified
                  by
                  the appropriate governmental officer in its jurisdiction of incorporation
                  or formation.

              

      

      

      
        	(b)  	
                Copies,
                  certified by the Secretary or Assistant Secretary (or Person serving
                  an
                  equivalent function) of the Borrower and each other Loan Party,
                  of its
                  by-laws or operating agreement, as applicable, and of its board
                  of
                  directors' resolutions and of resolutions or actions of any other
                  body
                  authorizing the execution of the Loan Documents to which the Borrower
                  and
                  each other Loan Party is a party.

              

      

      

      
        	(c)  	
                An
                  incumbency certificate, executed by the Secretary or Assistant
                  Secretary
                  (or Person serving an equivalent function) of, as applicable, the
                  Borrower
                  and each other Loan Party, which shall identify by name and title
                  and bear
                  the signatures of the Authorized Officers and any other officers
                  or
                  Persons of the Borrower and each other Loan Party authorized to
                  sign the
                  Loan Documents to which, as applicable, the Borrower and each other
                  Loan
                  Party is a party, upon which certificate the Agent and the Lenders
                  shall
                  be entitled to rely until informed of any change in writing by
                  the
                  Borrower and each other Loan Party.

              

      

      

      
        	(d)  	
                A
                  certificate, signed by the chief financial officer of the Borrower,
                  in the
                  form of Exhibit
                  P
                  stating that on the initial Credit Extension Date no Default or
                  Unmatured
                  Default has occurred and is
                  continuing.

              

      

      

      
        	(e)  	
                A
                  written opinion of the Borrower's and the Guarantors' counsel,
                  addressed
                  to the Lenders in substantially the form of Exhibit
                  A.

              

      

      

      
        	(f)  	
                Any
                  Notes requested by a Lender pursuant to Section 2.15 payable to
                  the order
                  of each such requesting Lender.

              

      

      

      
        	(g)  	
                Written
                  money transfer instructions from the Borrower, in substantially
                  the form
                  of Exhibit
                  D,
                  addressed to the Agent and signed by an Authorized Officer, together
                  with
                  such other related money transfer authorizations as the Agent may
                  have
                  reasonably requested.

              

      

      

      
        	(h)  	
                If
                  the initial Credit Extension will be the issuance of a Facility
                  LC, a
                  properly completed Facility LC
                  Application.

              

      

      

      
        	(i)  	
                All
                  Collateral Documents and other Loan Documents executed by the Borrower
                  or
                  the Guarantors, as the case may be, including without limitation
                  any
                  amendments, reaffirmations or supplements to the Pledge and Security
                  Agreement, the Guaranty, the Mortgages, the Negative
                  Pledge Agreement, the Indemnity Agreement, the Assignment of Patents,
                  Trademarks and Copyrights and the Intercompany Subordination Agreement
                  requested by the Collateral Agent to be executed and delivered
                  on the
                  Closing Date.

              

      

      

      
        	(j)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(k)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(l)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(m)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(n)  	
                The
                  insurance certificate described in Section 5.20 and
                  6.6(ii).

              

      

      

      
        	(o)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(p)  	
                Reports
                  of searches of personal property of records from the appropriate
                  reporting
                  agencies listed on Schedule
                  4.1(i)(p).
                  The Agent may obtain such reports but the Borrower shall pay all
                  costs
                  associated with obtaining them. The reports of searches of the
                  personal
                  property of records shall not disclose any security interest in
                  the Loan
                  Parties' personal property prior to the Collateral Agent's security
                  interest therein other than Permitted
                  Liens.

              

      

      

      
        	(q)  	
                All
                  material third-party consents required to effectuate the transactions
                  under the Loan Documents, including without limitation those described
                  on
                  Schedule
                  4.1(i)(q).

              

      

      

      
        	(r)  	
                Evidence
                  satisfactory to the Agent that no action, proceeding, investigation,
                  regulation or legislation shall have been instituted, threatened
                  or
                  proposed before any court, governmental agency or legislative body
                  to
                  enjoin, restrain or prohibit, or to obtain damages in respect of,
                  this
                  Agreement, the other Loan Documents or the consummation of the
                  transactions contemplated hereby or thereby or which, in the Agent's
                  sole
                  discretion, would make it inadvisable to consummate the transactions
                  contemplated by this Agreement or any of the other Loan
                  Documents.

              

      

      

      
        	(s)  	
                Evidence
                  satisfactory to the Agent with respect to the proper perfection
                  and
                  priority of all of the Liens created in favor of the Collateral
                  Agent
                  securing all of the Secured Obligations.

              

      

      

      
        	(t)  	
                Evidence
                  satisfactory to the Agent that prior to, or simultaneously with
                  the
                  closing of the transactions described herein, the Borrower has
                  paid all of
                  the Refinanced Indebtedness and shall have delivered to the Agent
                  a copy
                  of a payoff letter, in a form satisfactory to the Agent, in its
                  discretion, signed by the “Term Note Purchasers” as defined in the
                  Previous Credit Agreement and evidencing the payoff and termination
                  of
                  such Refinanced Indebtedness, as well as termination of their interest
                  in
                  any Liens in connection therewith.

              

      

      

      
        	(u)  	
                Intentionally
                  Omitted.

              

      

      

      
        	(v)  	
                Unqualified
                  audited financial statements for the Borrower dated as of December
                  31,
                  2004.

              

      

      

      
        	(w)  	
                A
                  certificate in the form of Exhibit
                  P
                  signed by the chief financial officer of the Borrower stating that
                  at the
                  initial Credit Extension no Material Adverse Effect has occurred
                  since
                  December 31, 2004 or is occurring, and all of the representations
                  and
                  warranties made by or on behalf of any of the Loan Parties relating
                  to
                  this Agreement and/or any of the other Loan Documents remain true,
                  correct
                  and complete.

              

      

      

      
        	(x)  	
                Payment
                  or reimbursement of expenses as and to the extent required under
                  Section
                  9.6 and payment of fees under Section
                  10.13.

              

      

      

      
        	(y)  	
                Such
                  other documents as the Agent, any Lender or their counsel may have
                  reasonably requested.

              

      

      

      
        	 	
                (ii)

              	
                The
                  Agent and the Lenders shall have determined to their
                  satisfaction:

              

      

      

      
        	(a)  	
                There
                  exists no Default or Unmatured
                  Default.

              

      

      

      
        	(b)  	
                No
                  Material Adverse Effect shall have occurred since December 31,
                  2004.

              

      

      

      
        	(c)  	
                The
                  Loan Parties have complied with all applicable requirements of
                  Regulation
                  U.

              

      

      

      
        	(d)  	
                All
                  legal and regulatory matters (including those relating to taxes)
                  are
                  satisfactory.

              

      

      

      
        	(e)  	
                No
                  injunctions or temporary restraining orders against any Loan Party
                  exist
                  which would prohibit a Credit
                  Extension.

              

      

      

      
        	(f)  	
                No
                  existing or potential environmental liability with respect to any
                  Loan
                  Party and/or any Collateral exists that would have a Material Adverse
                  Effect.

              

      

      

      4.2 Each
        Credit Extension.
        The
        Lenders shall not be required to make any Credit Extension unless on the
        applicable Credit Extension Date:

      

      
         

        
          	(i)  	
                  There
                    exists no Default or Unmatured
                    Default.

                

        

         

      

      
        	(ii)  	
                The
                  representations and warranties contained in Article V are true
                  and correct
                  in all material respects as of such Credit Extension Date except
                  to the
                  extent any such representation or warranty is stated to relate
                  solely to
                  an earlier date, in which case such representation or warranty
                  shall have
                  been true and correct on and as of such earlier
                  date.

              

      

      

      
        	(iii)  	
                All
                  legal matters incident to the making of such Credit Extension shall
                  be
                  satisfactory to the Lenders and their
                  counsel.

              

      

      

      Each
        Borrowing Notice or request for issuance of a Facility LC with respect to
        each
        such Credit Extension shall constitute a representation and warranty by the
        Borrower that the conditions contained in Sections 4.2(i) and (ii) have been
        satisfied. 

      

      ARTICLE
        V

      

      REPRESENTATIONS
        AND WARRANTIES

      

      

      The
        Loan
        Parties jointly and severally represent and warrant to the Agent and the
        Lenders
        that:

      

      5.1 Existence
        and Standing.
        Each of
        the Loan Parties and its Subsidiaries is a corporation, partnership (in the
        case
        of Subsidiaries only) or limited liability company duly and properly
        incorporated or organized, as the case may be, validly existing and (to the
        extent such concept applies to such entity) in good standing under the laws
        of
        its jurisdiction of incorporation or organization and has all requisite
        authority to conduct its respective business in each jurisdiction in which
        its
        respective business is conducted and where the failure to do so would cause
        a
        Material Adverse Effect.

      

      5.2 Authorization
        and Validity.
        Each
        Loan Party has the power and authority and legal right to execute and deliver
        the Loan Documents to which it is a party and to perform its obligations
        thereunder. The execution and delivery by the Loan Party of the Loan Documents
        to which it is a party and the performance of its obligations thereunder
        have
        been duly authorized by proper corporate proceedings, and the Loan Documents
        to
        which the Loan Party is a party constitute legal, valid and binding obligations
        of the applicable Loan Party enforceable against the applicable Loan Party
        in
        accordance with their terms, except as enforceability may be limited by
        bankruptcy, insolvency or similar laws affecting the enforcement of creditors'
        rights generally.

      

      5.3 No
        Conflict; Government Consent.
        Neither
        the execution and delivery by a Loan Party of the Loan Documents to which
        it is
        a party, nor the consummation by it of the transactions therein contemplated,
        nor compliance with the provisions thereof by it will violate (i) any law,
        rule,
        regulation, order, writ, judgment, injunction, decree or award binding on
        any
        such Loan Party or (ii) any such Loan Party's articles or certificate of
        incorporation, partnership agreement, certificate of partnership, articles
        or
        certificate of organization, by-laws, or operating or other management
        agreement, as the case may be, or (iii) the provisions of any indenture,
        instrument or agreement to which any such Loan Party is a party or is subject,
        or by which it, or its Property, is bound, or conflict with or constitute
        a
        default thereunder, or except for the Liens required by the terms of Loan
        Documents, result in, or require, the creation or imposition of any Lien
        in, of
        or on the Property of any such Loan Party pursuant to the terms of any such
        indenture, instrument or agreement. Except for the recordation of any applicable
        Collateral Documents with any applicable governmental authority, no order,
        consent, adjudication, approval, license, authorization, or validation of,
        or
        filing, recording or registration with, or exemption by, or other action
        in
        respect of any governmental or public body or authority, or any subdivision
        thereof, which has not been obtained by any Loan Party, is required to be
        obtained by any Loan Party in connection with the execution and delivery
        of the
        Loan Documents, the borrowings under this Agreement, the payment and performance
        by the Borrower of the Obligations or the legality, validity, binding effect
        or
        enforceability of any of the Loan Documents. Notwithstanding anything in
        this
        Agreement or the other Loan Documents to the contrary, the parties to this
        Agreement and the other Loan Documents acknowledge that (i) the transfer,
        assignment, change of ownership or interest, foreclosure or realization on
        any
        of the Collateral or the stock of Churchill Downs Management Company or (ii)
        any
        transfer, assignment, or change of ownership or interest in any pari-mutuel
        permits or licenses must comply with applicable law, which may require prior
        approval by the Florida Division of Pari-Mutuel Wagering or comparable
        governmental authority in the applicable State. 

      

      5.4 Financial
        Statements.
        The
        December 31, 2004 consolidated financial statements of the Loan Parties
        heretofore delivered to the Lenders were prepared in accordance with generally
        accepted accounting principles in effect on the date such statements were
        prepared and fairly present the consolidated financial condition and operations
        of the Loan Parties at such date and the consolidated results of their
        operations for the period then ended. 

      

      5.5 Material
        Adverse Change.
        Since
        December 31, 2004 there has been no change in the business, Property, prospects,
        condition (financial or otherwise) or results of operations of the Loan Parties
        taken as a whole, which could reasonably be expected to have a Material Adverse
        Effect.

      

      5.6 Taxes.
        Each
        Loan Party has filed all United States federal tax returns and all other
        tax
        returns which are required to be filed and has paid all taxes due pursuant
        to
        said returns or pursuant to any assessment received by such Loan Party, except
        such taxes, if any, as are being contested in good faith and as to which
        adequate reserves have been provided in accordance with Agreement Accounting
        Principles and as to which no Lien exists. The United States income tax returns
        of each Loan Party and the other Loan Parties have been audited by the Internal
        Revenue Service through the fiscal year ended December 31, 2000. No tax liens
        have been filed and no claims are being asserted with respect to any such
        taxes.
        The charges, accruals and reserves on the books of each Loan Party in respect
        of
        any taxes or other governmental charges are adequate. 

      

      5.7 Litigation
        and Contingent Obligations.
        There
        is no litigation, arbitration, governmental investigation, proceeding or
        inquiry
        pending or, to the knowledge of any of their officers, threatened against
        or
        affecting any Loan Party which could reasonably be expected to have a Material
        Adverse Effect or which seeks to prevent, enjoin or delay the making of any
        Credit Extensions. Other than any liability incident to any litigation,
        arbitration or proceeding which could not reasonably be expected to have
        a
        Material Adverse Effect, the Loan Parties have no material contingent
        obligations not provided for or disclosed in the financial statements referred
        to in Section 5.4.

      

      5.8 Subsidiaries.
        Schedule
        1
        contains
        an accurate list of all Subsidiaries of the Loan Parties as of the date of
        this
        Agreement, setting forth their respective jurisdictions of organization and
        the
        percentage of their respective capital stock or other ownership interests
        owned
        by each Loan Party. All of the issued and outstanding shares of capital stock
        or
        other ownership interests of such Subsidiaries have been (to the extent such
        concepts are relevant with respect to such ownership interests) duly authorized
        and issued and are fully paid and non-assessable.

      

      5.9 ERISA.
        Except
        for any Multiemployer Plan, none
        of
        the Loan Parties sponsors or contributes to a Plan that is covered by Title
        IV
        of ERISA or that is subject to the minimum funding standards under Section
        412
        of the Code. Neither
        any Loan Party nor any other member of the Controlled Group has incurred,
        or is
        reasonably expected to incur, any withdrawal liability to Multiemployer Plans
        in
        excess of $10,000,000.00 in the aggregate. No Loan Party has any knowledge
        that
        any Plan fails to comply in all material respects with all applicable
        requirements of law and regulation. Neither the Borrower nor any other member
        of
        the Controlled Group has withdrawn from any Plan or initiated steps to do
        so,
        and no steps have been taken to reorganize or terminate any Plan.

      

      5.10 Accuracy
        of Information.
        No
        information, exhibit or report furnished by the Borrower or any of the other
        Loan Parties to the Agent or to any Lender in connection with the negotiation
        of, or compliance with, the Loan Documents contained any misstatement of
        material fact or omitted to state a material fact necessary to make the
        statements contained therein not misleading.

      

      5.11 Regulation
        U.
        Margin
        stock (as defined in Regulation U) constitutes less than 25% of the value
        of
        those assets of the Loan Parties which are subject to any limitation on sale,
        pledge, or other restriction hereunder.

      

      5.12 Material
        Agreements.
        Neither
        the Borrower nor any Subsidiary is a party to any agreement or instrument
        or
        subject to any charter or other corporate restriction which could reasonably
        be
        expected to have a Material Adverse Effect. Neither the Borrower nor any
        Subsidiary is in default in the performance, observance or fulfillment of
        any of
        the obligations, covenants or conditions contained in (i) any agreement to
        which
        it is a party, which default could reasonably be expected to have a Material
        Adverse Effect or (ii) any agreement or instrument evidencing or governing
        Indebtedness.

      

      5.13 Compliance
        With Laws.
        The
        Loan Parties have complied with all applicable statutes, rules, regulations,
        orders and restrictions of any domestic or foreign government or any
        instrumentality or agency thereof having jurisdiction over the conduct of
        their
        respective businesses or the ownership of their respective Property except
        for
        any failure to comply with any of the foregoing which could not reasonably
        be
        expected to have a Material Adverse Effect.

      

      5.14 Ownership
        of Properties.
        Except
        as set forth on Schedule
        2,
        on the
        date of this Agreement, the Loan Parties will have good title, free of all
        Liens
        other than Permitted Liens, to all of the Property and assets reflected in
        the
        Borrower's most recent consolidated financial statements provided to the
        Agent
        as owned by the Loan Parties. Except for the Permitted Liens, liens granted
        to
        the Collateral Agent for the benefit of the Lenders pursuant to the Mortgages
        do
        constitute and will constitute valid first priority Liens under applicable
        law.
        Borrower will take all such action as will be necessary or advisable to
        establish such Lien of the Collateral Agent and its priority as described
        in the
        preceding sentence at or prior to the time required for such purpose, and
        there
        will be as of the date of execution and delivery of the Mortgages no necessity
        for any further action in order to protect, preserve and continue such Lien
        and
        such priority except for (i) the filing of continuation statements to continue
        financing statements (filed as fixture filings) upon the expiration thereof
        and
        (ii) for the recordation of the Calder Mortgage and for the recording of
        the
        Mortgages (other than the Calder Mortgage) all of which recordation of such
        Mortgages (other than the Calder Mortgage and Mortgages entered into after
        the
        Previous Closing Date) shall have occurred on the Previous Closing Date (or
        within one Business Day following the Previous Closing Date provided
        that the
        title insurance policy relating to such Mortgages (other than the Calder
        Mortgage and Mortgages entered into after the Previous Closing Date) provides
        coverage as of the Previous Closing Date based on pro forma policies delivered
        and accepted on or before the Previous Closing Date).

       

      5.15 Plan
        Assets; Prohibited Transactions.
        The
        Borrower (a) is not an entity deemed to hold "plan assets" within the meaning
        of
        29 C.F.R. § 2510.3-101 of an employee benefit plan (as defined in Section 3(3)
        of ERISA) which is subject to Title I of ERISA or any plan (within the meaning
        of Section 4975 of the Code), and assuming
        the source of the Loans does not in any case include the assets of any employee
        benefit plan, neither
        the execution of this Agreement nor the making of Credit Extensions hereunder
        gives rise to a prohibited transaction within the meaning of Section 406
        of
        ERISA or Section 4975 of the Code, and (b) the Borrower is an "operating
        company" as defined in 29 C.F.R 2510-101 (c) or "benefit plan investors"
        (as
        defined in 29 C.F.R. § 2510.3-101(f)) do not own 25% or more of the value of any
        class of equity interests in the Borrower.

      

      5.16 Environmental
        Matters.
        In the
        ordinary course of its business, the officers of the Borrower consider the
        effect of Environmental Laws on the business of the Loan Parties, in the
        course
        of which they identify and evaluate potential risks and liabilities accruing
        to
        the Borrower due to Environmental Laws. On the basis of this consideration,
        the
        Borrower has concluded that Environmental Laws cannot reasonably be expected
        to
        have a Material Adverse Effect. Neither the Borrower nor any Subsidiary has
        received any notice to the effect that its operations are not in material
        compliance with any of the requirements of applicable Environmental Laws
        or are
        the subject of any federal or state investigation evaluating whether any
        remedial action is needed to respond to a release of any toxic or hazardous
        waste or substance into the environment, which non-compliance or remedial
        action
        could reasonably be expected to have a Material Adverse Effect.

      

      5.17 Investment
        Company Act.
        Neither
        the Borrower nor any Subsidiary is an "investment company" or a company
        "controlled" by an "investment company", within the meaning of the Investment
        Company Act of 1940, as amended.

      

      5.18 Public
        Utility Holding Company Act.
        Neither
        the Borrower nor any Subsidiary is a "holding company" or a "subsidiary company"
        of a "holding company", or an "affiliate" of a "holding company" or of a
        "subsidiary company" of a "holding company", within the meaning of the Public
        Utility Holding Company Act of 1935, as amended.

      

      5.19 Post-Retirement
        Benefits.
        The
        present value of the expected cost of post-retirement medical and insurance
        benefits payable by the Loan Parties to their employees and former employees,
        as
        estimated by the Borrower in accordance with procedures and assumptions deemed
        reasonable by the Required Lenders, does not exceed $10,000,000.00.

      

      5.20 Insurance.
        The
        certificate signed by the President or chief financial officer of the Borrower,
        that attests to the existence and adequacy of, and summarizes, the property
        and
        casualty insurance program carried by the Borrower with respect to itself
        and
        the other Loan Parties and that has been furnished by the Borrower to the
        Agent
        and the Lenders, is complete and accurate. This summary includes the insurer's
        or insurers' name(s), policy number(s), expiration date(s), amount(s) of
        coverage, type(s) of coverage, exclusion(s), and deductibles. This summary
        also
        includes similar information, and describes any reserves, relating to any
        self-insurance program that is in effect.

      

      5.21 Solvency.
        (i)
        Immediately after the consummation of the transactions to occur on the date
        hereof and immediately following the making of each Loan, if any, made on
        the
        date hereof and after giving effect to the application of the proceeds of
        such
        Loans, (a) the fair value of the assets of the Loan Parties on a consolidated
        basis, at a fair valuation, will exceed the debts and liabilities, subordinated,
        contingent or otherwise, of the Loan Parties on a consolidated basis; (b)
        the
        present fair saleable value of the Property of the Loan Parties on a
        consolidated basis will be greater than the amount that will be required
        to pay
        the probable liability of the Loan Parties on a consolidated basis on their
        debts and other liabilities, subordinated, contingent or otherwise, as such
        debts and other liabilities become absolute and matured; (c) the Loan Parties
        on
        a consolidated basis will be able to pay their debts and liabilities,
        subordinated, contingent or otherwise, as such debts and liabilities become
        absolute and matured; and (d) the Loan Parties on a consolidated basis will
        not
        have unreasonably small capital with which to conduct the businesses in which
        they are engaged as such businesses are now conducted and are proposed to
        be
        conducted after the date hereof.

      

      (ii) The
        Borrower does not intend to, or to permit any of the other Loan Parties to,
        and
        does not believe that it or any of the other Loan Parties will, incur debts
        beyond such Person's ability to pay such debts as they mature, taking into
        account the timing of and amounts of cash to be received by it or any such
        Loan
        Party and the timing of the amounts of cash to be payable on or in respect
        of
        its Indebtedness or the Indebtedness of any such Loan Party. 

      

      5.22 Intellectual
        Property.
        Schedule
        5.22
        sets
        forth a true and complete list, differentiated by each Loan Party, of all
        of the
        patents, trademarks, licenses not included in Schedule 5.25, copyrights and
        other intellectual property owned by any of the Loan Parties or which any
        of
        them has an interest.

      

      5.23 Properties.
        Schedule
        5.23
        sets
        forth a true and complete list, differentiated by each Loan Party, of the
        addresses of all Real Property.

      

      5.24 Operating
        Locations.
        Schedule
        5.24
        sets
        forth a true and complete list, differentiated by each Loan Party, of the
        street
        addresses of each of the Loan Parties' operating locations.

      

      5.25 Certain
        Licenses.
        Schedule
        5.25
        sets
        forth a true and complete list, differentiated by each Loan Party of all
        licenses or other authorities under which any Loan Party is a licensee from
        any
        racing commission or authority or holder of other racing rights.

      

      5.26 Predecessor
        Entities of the Loan Parties.
        Schedule
        5.26
        sets
        forth a list of any and all predecessors and/or prior names of any Loan Party
        within the past five (5) years, including any entity or entities which may
        no
        longer exist, whether by reason of merger, acquisition, consolidation, sale
        of
        its material assets, dissolution, bankruptcy, reorganization, which may have
        or
        had an interest in the Collateral or any part thereof, together with such
        predecessor's (1) state of incorporation, (2) the jurisdictional location
        of all
        of such entities offices and locations and (3) all jurisdictional locations
        where any Collateral may have been kept. 

      

      

      ARTICLE
        VI

      

      COVENANTS

      

      

      From
        and
        after the date of this Agreement, unless the Required Lenders shall otherwise
        consent in writing:

      

      6.1 Financial
        Reporting.
        The
        Borrower will maintain, for itself and each Subsidiary, a system of accounting
        established and administered in accordance with Agreement Accounting Principles,
        and furnish to the Lenders:

      

      
        	 	
                (i) 
                  

              	
                Within
                  ninety (90) days after the close of each of Borrower's fiscal years,
                  an
                  unqualified (except for qualifications relating to changes in Agreement
                  Accounting Principles or practices reflecting changes in generally
                  accepted accounting principles and required or approved by the
                  Borrower's
                  independent certified public accountants) audit report certified
                  by
                  PriceWaterhouseCoopers or such other independent certified public
                  accountants acceptable to the required Lenders, prepared in accordance
                  with Agreement Accounting Principles on a consolidated basis for
                  itself
                  and the other Loan Parties, including consolidated balance sheets
                  as of
                  the end of such period, related consolidated profit and loss and
                  reconciliation of surplus statements, and a consolidated statement
                  of cash
                  flows, accompanied by any management letter prepared by said accountants,
                  provided
                  that satisfaction of the requirements of this Section 6.1(i) shall
                  be
                  deemed to have been met by delivery within the time frame specified
                  above
                  of (a) copies of the Borrower's Annual Report on Form 10-K for
                  such fiscal
                  year prepared in accordance with the requirements therefor and
                  filed with
                  the SEC, and (b) the financial statements and reports otherwise
                  required
                  in this Section 6.1(i), consolidated as to the Borrower and the
                  other Loan
                  Parties, except that such financial statements and reports need
                  not be
                  audited and may be internally
                  prepared.

              

      

      

      
        	(ii)  	
                Within
                  forty-five (45) days after the close of the first three quarterly
                  periods
                  of each of its fiscal years, for itself and the other Loan Parties,
                  consolidated unaudited balance sheets as at the close of each such
                  period
                  and consolidated profit and loss statements and a consolidated
                  statement
                  of cash flows for the period from the beginning of such fiscal
                  year to the
                  end of such quarter, all certified by its chief financial officer,
                  provided
                  that satisfaction of the requirements of this Section 6.1(ii) shall
                  be
                  deemed to have been met by delivery within the time frame specified
                  above
                  of copies of (a) the Borrower's Quarterly Report on Form 10-Q prepared
                  in
                  accordance with the requirements therefor and filed with the SEC,
                  and (b)
                  the financial statements and reports otherwise required in this
                  Section
                  6.1(ii), consolidated as to the Borrower and the other Loan
                  Parties.

              

      

      

      
        	(iii)  	
                As
                  soon as available, but in any event within ninety (90) days after
                  the
                  beginning of each fiscal year of the Borrower, a copy of the plan
                  and
                  budget (including, at a minimum, a projected consolidated balance
                  sheet
                  for the following fiscal year end and projected quarterly income
                  statements) of the Borrower and the other Loan Parties for such
                  fiscal
                  year.

              

      

      

      
        	(iv)  	
                Together
                  with the financial statements required under Sections 6.1(i) and
                  (ii), a
                  compliance certificate, in substantially the form of Exhibit
                  B
                  attached hereto, signed by its chief financial officer or treasurer
                  showing the calculations necessary to determine compliance with
                  this
                  Agreement and stating that no Default or Unmatured Default exists,
                  or if
                  any Default or Unmatured Default exists, stating the nature and
                  status
                  thereof.

              

      

      

      
        	(v)  	
                Within
                  two hundred seventy (270) days after the close of each fiscal year,
                  a
                  statement of the Unfunded Liabilities of each Single Employer Plan,
                  if
                  any, certified as correct by an actuary enrolled under
                  ERISA.

              

      

      

      
        	(vi)  	
                If
                  the Borrower has established a Plan, as soon as possible and in
                  any event
                  within 10 days after the Borrower knows that any Reportable Event
                  has
                  occurred with respect to any Plan, a statement, signed by the chief
                  financial officer of the Borrower, describing said Reportable Event
                  and
                  the action which the Borrower proposes to take with respect
                  thereto.

              

      

      

      
        	(vii)  	
                As
                  soon as possible and in any event within 10 days after receipt
                  by the
                  Borrower, a copy of (a) any notice or claim to the effect that
                  the
                  Borrower or any of the other Loan Parties is or may be liable to
                  any
                  Person as a result of the release by the Borrower, any of the other
                  Loan
                  Parties, or any other Person of any Hazardous Materials into the
                  environment, and (b) any notice alleging any violation of any
                  Environmental Laws by the Borrower or any of the other Loan Parties,
                  which, in either case, could reasonably be expected to have a Material
                  Adverse Effect.

              

      

      

      
        	(viii)  	
                Promptly
                  upon request, copies of all annual reports to shareholders (including
                  without limitation annual reports to shareholders, if any, prepared
                  pursuant to Rule 14a-3 under the Exchange Act), financial statements,
                  reports and proxy statements so furnished and which are not otherwise
                  available on the SEC’s Edgar (or its successor)
                  system.

              

      

      

      
        	(ix)  	
                Promptly
                  upon request, copies of all registration statements and annual,
                  quarterly,
                  monthly or other regular reports which any of the Loan Parties
                  files with
                  the SEC and which are not otherwise available on the SEC’s Edgar (or its
                  successor) system.

              

      

      

      
        	(x)  	
                Such
                  other information (including non-financial information) as the
                  Agent or
                  any Lender may from time to time reasonably
                  request.

              

      

      

      6.2 Use
        of
        Proceeds.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary to,
        use
        the proceeds of the Credit Extensions to (a) repay in full the Refinanced
        Indebtedness outstanding on or prior to the Closing Date (without giving
        effect
        to the initial Credit Extensions hereunder) and expenses incurred in connection
        with such repayment and (b) for general corporate purposes, including for
        working capital and Acquisition needs. The Borrower will not, nor will it
        permit
        any Subsidiary to, use any of the proceeds of the Advances to purchase or
        carry
        any "margin stock" (as defined in Regulation U). 

      

      6.3 Notice
        of Default.
        The
        Borrower and each other Loan Party will give prompt notice in writing to
        the
        Agent of the occurrence of any Default or Unmatured Default and of any other
        development, financial or otherwise, which could reasonably be expected to
        have
        a Material Adverse Effect.

      

      6.4 Conduct
        of Business.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary (other
        than the Excluded Subsidiaries) to, carry on and conduct its respective business
        in substantially the same manner and in substantially the Current Fields
        of
        Enterprise, and in any other mode of gambling, including pari-mutuel wagering
        on
        horse racing and Permitted Alternative Gaming which, in each case, is conducted
        in full compliance with applicable law, and do all things necessary to remain
        duly incorporated or organized, validly existing and (to the extent such
        concept
        applies to such entity) in good standing as a domestic corporation, partnership
        or limited liability company in its jurisdiction of incorporation or
        organization, as the case may be, and maintain all requisite authority to
        conduct its business in each jurisdiction in which its respective business
        is
        conducted in each case in which the failure to so maintain such authority
        would
        have a Material Adverse Effect.

      

      6.5 Taxes.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary to,
        timely file complete and correct United States federal and applicable foreign,
        state and local tax returns required by law and pay when due all taxes,
        assessments and governmental charges and levies upon such Loan Party or such
        Loan Party's income, profits or Property, except those which are being contested
        in good faith by appropriate proceedings and with respect to which adequate
        reserves have been set aside in accordance with Agreement Accounting
        Principles.

      

      6.6 Insurance.
        

      

      
        	 	
                (i)

              	
                The
                  Borrower and each other Loan Party will, and will cause each Subsidiary
                  to, maintain with financially sound and reputable insurance companies
                  insurance on all their Property in such amounts and covering such
                  risks as
                  is consistent with sound business practice, and the Borrower will
                  furnish
                  to any Lender upon request full information as to the insurance
                  carried.

              

      

      

      
        	 	
                (ii)

              	
                All
                  insurance which the Loan Parties are required to maintain shall
                  be
                  satis-factory to the Agent in form, amount and insurer. Such insur-ance
                  shall provide that any loss thereun-der shall be payable notwithstanding
                  any action, inaction, breach of warranty or condition, breach of
                  declarations, misrepresentation or negligence of any of the Loan
                  Parties.
                  Each policy shall contain an agreement by the insurer that,
                  notwithstanding lapse of a policy for any reason, or right of cancellation
                  by the insurer or any cancellation by any Loan Party such policy
                  shall
                  continue in full force for the benefit of the Collateral Agent
                  for at
                  least thirty (30) days after written notice thereof to the Agent
                  and the
                  applicable Loan Party, and no alteration in any such policy shall
                  be made
                  except upon thirty (30) days written notice of such proposed alteration
                  to
                  the Agent and the applicable Loan Party and written approval by
                  the Agent.
                  At or before the making of the first Credit Extension, each Loan
                  Party
                  shall provide the Agent with certificates evidencing its due compliance
                  with the requirements of this
                  Section.

              

      

      

      6.7 Compliance
        with Laws.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary to,
        comply with all laws, rules, regulations, orders, writs, judgments, injunctions,
        decrees or awards to which such party may be subject including, without
        limitation, all Environmental Laws,
        provided
        that it
        shall not be deemed to be a violation of this Section 6.7 if any failure
        to
        comply with any law would not result in fines, penalties, remediation costs,
        other similar liabilities or injunctive relief which in the aggregate would
        constitute a Material Adverse Effect.

       

      6.8 Maintenance
        of Properties.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary (other
        than the Excluded Subsidiaries) to, do all things necessary to maintain,
        preserve, protect and keep its Property in good repair, working order and
        condition, normal wear and tear excepted and taking into account the age
        and
        condition of such Property and make all necessary and proper repairs, renewals
        and replacements so that its business carried on in connection therewith
        may be
        properly conducted at all times.

      

      6.9 Inspection.
        The
        Borrower and each other Loan Party will, and will cause each Subsidiary to,
        permit the Agent, the Collateral Agent and the Lenders, by their respective
        representatives and agents, to inspect any of the Property, books and financial
        records of the Borrower and each Subsidiary, to examine and make copies of
        the
        books of accounts and other financial records of the Borrower and each
        Subsidiary, and to discuss the affairs, finances and accounts of the Borrower
        and each Subsidiary with, and to be advised as to the same by, their respective
        officers at such reasonable times and intervals as the Agent, the Collateral
        Agent or any Lender may designate; provided,
        however,
        so long
        as no Default or Unmatured Default has occurred or is continuing, no such
        inspections, examinations, or discussions shall occur during the two week
        period
        preceding, or on the day of, the running of the [i] Kentucky Derby or [ii]
        Breeder's Cup, if the Breeder's Cup is to be held at Churchill
        Downs.

      

      6.10 Indebtedness.
        The
        Borrower and the other Loan Parties will not, nor will they permit any
        Subsidiary (other than Excluded Subsidiaries) to, create, incur or suffer
        to
        exist any Indebtedness, except:

      

        
          	(i)  	
                  The
                    Loans and the Reimbursement
                    Obligations.

                

        

        

        
          	(ii)  	
                  Indebtedness
                    existing on the date hereof and described in Schedule
                    2.

                

        

        

        
          	(iii)  	
                  Indebtedness
                    arising under Rate Management Transactions related to the Loans
                    to the
                    extent
                    permitted under Section 6.22.

                

        

        

        
          	(iv)  	
                  Indebtedness
                    secured by any purchase money security interests not exceeding
                    $5,000,000;

                

        

        

        
          	(v)  	
                  Capitalized
                    Lease Obligations in an amount not exceeding $5,000,000;

                

        

        

        
          	(vi)  	
                  Indebtedness
                    to sellers in connection with Permitted Acquisitions in an aggregate
                    amount not to exceed $10,000,000 provided
                    that such Indebtedness is subordinated to the Indebtedness hereunder
                    pursuant to subordination provisions acceptable to the Required
                    Lenders in
                    the Required Lenders’ reasonable discretion;

                

        

        

        
          	(vii)  	
                  Indebtedness
                    secured by any Lien permitted pursuant to Section 6.16;
                    

                

        

        

        
          	(viii)  	
                  Intentionally
                    Omitted;

                

        

        

        
          	(ix)  	
                  Indebtedness
                    of not greater than $153,000,000 under the Master Plan Bond
                    Transaction;

                

        

        

        
          	(x)  	
                  Indebtedness
                    permitted under Section 6.15, reduced by the amounts of Indebtedness
                    actually outstanding at any time that is described in or subject
                    to
                    clauses (iv), (v) and/or (vi) of this Section
                    6.10.

                

        

      

       

    

    

    6.11 Merger.
      Without
      the consent of the Required Lenders, the Borrower will not, nor will it permit
      any Subsidiary (other than the Excluded Subsidiaries) to, merge or consolidate
      with or into any other Person, except that a Loan Party may merge into the
      Borrower or a Wholly-Owned Subsidiary that is or becomes a Loan Party
provided
      that at
      least ten (10) Business Days before the date of such consolidation or merger,
      the applicable parties shall have delivered to the Agent all of the new
      Mortgages, amendments to Mortgages, financing statements, amendments thereto
      and
      other amendments to the Loan Documents and the schedules thereto required to
      reflect such consolidation or merger and to perfect or confirm the Liens of
      the
      Collateral Agent for the benefit of the Lenders in the assets of the Loan
      Parties which are parties thereto.

    

    6.12 Sale
      of Assets.
      

    

    
      	 	
              (i)

            	
              The
                Borrower will not, nor will it permit any Subsidiary (other than
                the
                Excluded Subsidiaries (including, without limitation, the sale of
                the
                assets and facilities commonly known as Hollywood Park)) to, lease,
                sell
                or otherwise dispose of its Property to any other Person,
                except:

            

    

    

    
      	(a)  	
              Sales
                of inventory in the ordinary course of
                business.

            

    

    

    
      	(b)  	
              Leases,
                sales or other dispositions of its Property (including ownership
                interests
                in Guarantors described in Subsection 6.12(iii)(a) and/or (b)) that,
                together with all other Property of the Loan Parties previously leased,
                sold or disposed of (other than inventory in the ordinary course
                of
                business) as permitted by this Section, in the aggregate, (1) during
                the
                twelve-month period ending with the month in which any such lease,
                sale or
                other disposition occurs, do not constitute a Twelve Month Substantial
                Portion of the Property of the Loan Parties, or (2) from and after
                the
                Closing Date does not constitute a Term Substantial Portion of the
                Property of the Loan Parties, in each case (subject to subsection
                (ii)
                below); provided
                that prior to and upon completion of such lease, sale or other disposition
                no Default or Unmatured Default would exist, including after giving
                effect
                to such sale, transfer or other
                disposition.

            

    

    

    
      	(c)  	
              Without
                regard to, and in addition to the limits of Section 6.12(i)(b), the
                sale,
                transfer or other disposition of the assets of, or ownership interests
                in,
                Ellis Park Race Course and/or Racing Corporation of America, provided
                that prior to and upon completion of such sale, transfer or other
                disposition no Default or Unmatured Default would exist, including
                after
                giving effect to such sale, transfer or other disposition, and
                provided
                further
                that the full amount of the cash proceeds realized on such sale,
                transfer
                or other disposition are applied to reduce the Aggregate Outstanding
                Credit Exposure. 

            

    

    

    
      	(ii)  	
              Intentionally
                Omitted.

            

    

    

    
      	(iii)  	
              (a)    Upon
                the sale of Property permitted under and in accordance with Subsection
                6.12(i)(c) above, the Agent is hereby authorized by the Lenders to
                instruct the Collateral Agent to cause Racing Corporation of America
                and
                Ellis Park Race Course, Inc. to be released from their obligations
                under
                the Guaranty without the need for any further authorization from
                the
                Lenders.

            

    

    

    
      	 	
              (b)

            	
              Upon
                consummation of the sale or other disposition of Property that (1)
                consists of (A) all of the interests of all Loan Parties in a Guarantor,
                including, without limitation, all of the capital stock, LLC or
                partnership (as applicable) and other equity interests in that Guarantor,
                or (B) all of the Property of a Guarantor, and (2) is permitted under
                and
                consummated in accordance with Subsections 6.12(i)(b) and (ii) above,
                the
                Agent is hereby authorized by the Lenders to instruct the Collateral
                Agent
                to cause that particular Guarantor to be released from its obligations
                under the Guaranty without the need for any further authorization
                from the
                Lenders, provided
                that no Default or Unmatured Default shall exist and be continuing
                or
                result from that sale or other disposition of that Property and/or
                the
                release of that Guarantor from its obligations under the
                Guaranty.

            

    

    

    Notwithstanding
      the foregoing provisions of this Section 6.12, nothing contained in this Section
      6.12 or this Agreement shall prevent the Borrower nor any other Loan Party
      or
      any Subsidiary from conducting its revenue producing activities in the ordinary
      course of its respective business, including, but not limited to, the (a)
      leasing or licensing of parking facilities, banquet facilities, boxes, suites
      or
      other facilities to the patrons of the Borrower, each Loan Party and each
      Subsidiary (collectively, the "Patrons"), (b) granting of personal suite
      licenses to Patrons, (c) granting of licenses to Patrons to use space in the
      "marquee village" and other similar facilities, and (d) the license or use
      for a
      fee of simulcast signals, trademarks, copyrights, and other similar assets,
      and
      (e) prepaying and/or forgiving any amounts owed under or canceling the bond
      or
      the Lease issued or entered into in connection with the Master Plan Bond
      Transaction.

    

    6.13 Investments
      and Acquisitions.
      The
      Borrower will not, nor will it permit any other Loan Party to, make or suffer
      to
      exist any Investments (including without limitation, loans and advances to,
      and
      other Investments in, Subsidiaries), or commitments therefor, or to create
      any
      Subsidiary or to become or remain a partner in any partnership or joint venture,
      or to make any Acquisition of any Person, except:

    

    
      	(i)  	
              (a)
                Cash Equivalent Investments and (b) Permitted
                Investments.

            

    

    

    
      	(ii)  	
              Any
                Investment (a) in existence on the date hereof (including without
                limitation existing Investments in Subsidiaries) and described in
                Schedule
                1,
                (b) in any Subsidiary that is a Loan Party if such Investment is
                not an
                Acquisition, and (c) so long as no Default or Unmatured Default has
                occurred and is continuing, in an Excluded Entity that is not an
                Acquisition if, but only if, the aggregate amount of all Investments
                in
                all Excluded Entities under this clause (ii)(c) after the date of
                this
                Agreement, when aggregated with all of the Acquisitions and/or Investments
                under clauses (iii)(d)(4), (iii)(e) and (iii)(f) of this Section
                6.13 made
                after the date of this Agreement (including such proposed Investment),
                shall not exceed 20% of Consolidated Net Worth at the time of the
                proposed
                Investment in such Excluded Entity. The Loan Parties shall demonstrate,
                including in appropriate circumstances determined by and acceptable
                to the
                Agent, through representations by the Loan Parties, that they shall
                be in
                compliance with all provisions of this Agreement after giving effect
                to
                any Investment permitted by this clause 6.13 (ii)(c) by delivering,
                at
                least five (5) Business Days prior to making or closing such Investment
                a
                certificate in the form of Exhibit
                O
                (each an "Investment Compliance Certificate") evidencing such
                compliance.

            

    

    

    
      	(iii)  	
              The
                Borrower or any Loan Party may effect an Acquisition through a merger,
                consolidation or by purchase, lease or otherwise of the capital stock
                or
                ownership interest of another Person, or of Property of another Person
                (each a "Permitted Acquisition"), to the extent, but only to the
                extent,
                such Loan Party shall have complied with all of the applicable following
                provisions: 

            

    

    

    
      	(a)  	
              In
                the case of a Permitted Acquisition by the Borrower, the Borrower
                shall be
                the surviving entity in any merger or
                consolidation.

            

    

    

    
      	(b)  	
              At
                least thirty (30) Business Days before the date of the proposed
                Acquisition, the Borrower shall have delivered to the Agent a notice
                of
                acquisition substantially in the form of Exhibit
                F
                attached hereto (a "Notice of Acquisition") describing in detail
                the
                proposed Acquisition.

            

    

    

    
      	(c)  	
              (1)
                Such Person is either (A) an existing Guarantor or (B) has executed
                a
                Guarantor Joinder to join this Agreement as a Guarantor pursuant
                to
                Section 9.14, or shall have done so on or before the date of such
                Permitted Acquisition, or, (2) in the alternative, upon request provided
                in the Notice of Acquisition of the Loan Party acquiring such Person,
                on
                or before the date of closing of such Permitted Acquisition, the
                Required
                Lenders shall have consented, in their discretion, in writing, to
                permit
                such acquired Person to be an Excluded
                Entity.

            

    

    

    
      	(d)  	
              If
                the Person to be acquired is not to be an Excluded Entity, then clauses
                (1), (2), (3) and (4) of this subsection apply:

            

    

    

    
      	(1)  	
              The
                Loan Party which acquires such ownership interest in such Person
                shall
                pledge such ownership interests to the Collateral Agent pursuant
                to the
                Pledge and Security Agreement and Section 9.14 on or before the date
                of
                the closing of such Permitted Acquisition, except as provided in
                clauses
                (iii)(d)(3) or (iii)(e) below; and such Person shall, on or before
                the
                date of the closing of such Permitted Acquisition execute and deliver
                a
                Guarantor Joinder and otherwise comply with the requirements of Section
                9.14; 

            

    

    

    
      	(2)  	
              No
                Default or Unmatured Default shall exist prior to and/or after giving
                effect to such Permitted
                Acquisition;

            

    

    

    
      	(3)  	
              If
                such Person is engaged in a Current Field of Enterprise and applicable
                laws relating to horse racing or gaming prohibit the pledge of the
                ownership interests of such Person or the grant of Liens in one or
                more
                assets of such Person (such stock and assets, collectively, the
                "Restricted Assets"), such Person and its owners shall not be obliged
                to
                grant Liens in the Restricted Assets, provided
                that the Loan Parties shall use their best efforts with respect to
                the
                matters within their respective control to obtain, within ninety
                (90) days
                after the date of such Permitted Acquisition (A) the consent of the
                applicable regulatory authority to the pledge or grant of first and
                prior
                Liens in the Restricted Assets of such Person to the Collateral Agent,
                or
                (B) the acknowledgement by such regulatory authority that such a
                pledge or
                grant of security interests does not require such consent; and the
                applicable Loan Parties shall within ten (10) days after receiving
                any
                such acknowledgement or consent take all steps necessary or appropriate
                to
                pledge and grant first and prior Liens, other than Permitted Liens,
                in
                favor of the Collateral Agent in, as applicable, the Restricted Assets
                pursuant to the Pledge and Security Agreement and any other applicable
                Collateral Documents, other Loan Documents, and/or other documents
                in the
                form of the Collateral Documents except for the name of the applicable
                Loan Party and the description of the Property; and
                

            

    

    

    
      	(4)  	
              If
                such Person is not engaged in a Current Field of Enterprise, the
                aggregate
                consideration paid for the Acquisition of and Investment in that
                Person,
                together with all other Acquisitions under this clause (iii)(d)(4)
                previous to the Acquisition in question, when aggregated with all
                of the
                Investments under clause(ii)(c) and Acquisitions under clauses (iii)(e)
                and (iii)(f) of this Section 6.13, shall not exceed 20% of Consolidated
                Net Worth at the time of the proposed Acquisition of such
                Person.

            

    

    

    
      	(e)  	
              If
                the acquired Person is to be an Excluded Entity, then clauses (1),
                (2),
                (3) and (4) of this subsection
                apply:

            

    

    

    
      	(1)  	
              The
                board of directors or other equivalent governing body of such Person
                shall
                have approved such Permitted Acquisition and, if the Loan Parties
                shall
                use any portion of the Loans to fund such Permitted Acquisition,
                the Loan
                Parties shall also have delivered to the Lenders written evidence
                of the
                approval of the board of directors (or equivalent body) of such Person
                for
                such Permitted Acquisition;

            

    

    

    
      	(2)  	
              No
                Default or Unmatured Default shall exist prior to and/or after giving
                effect to such Permitted Acquisition;

            

    

    

    
      	(3)  	
              The
                Loan Parties shall have delivered to the Agent at least five (5)
                Business
                Days before such Permitted Acquisition copies of any agreements entered
                into or proposed to be entered into by such Loan Parties in connection
                with such Permitted Acquisition and shall deliver to the Agent for
                its
                review such other information about such Person or its Property as
                the
                Agent may reasonably require; and 

            

    

    

    
      	(4)  	
              The
                aggregate consideration paid for the Acquisition of and Investment
                in all
                Persons pursuant to this clause (iii)(e) of this Section 6.13, when
                aggregated with all other consideration paid for the Acquisition
                of and
                Investments in any Person under this clause (iii)(e) and when aggregated
                with all Investments under clause (ii)(c) and all Acquisitions under
                clauses (iii)(d)(4) and (iii)(f) of this Section, shall not exceed
                20% of
                Consolidated Net Worth at the time of the Proposed Acquisition of
                such
                Person. 

            

    

    

    
      	(f)  	
              If
                the Permitted Acquisition is through purchase, lease or other acquisition
                of Property of a Person by a Loan Party, then clauses (1), (2) and
                (3) of
                this subsection apply:

            

    

    

    
      	(1)  	
              No
                Default or Unmatured Default shall exist prior to and/or after giving
                effect to such Permitted
                Acquisition.

            

    

    

    
      	(2)  	
              That
                Loan Party shall pledge such Property pursuant to the Pledge and
                Security
                Agreement and/or Mortgage(s), as appropriate, and Section 6.29, unless
                such Loan Party is engaged in a Current Field of Enterprise and applicable
                laws relating to horse racing or gaming cause the Property, or some
                part
                of it, being acquired to be Restricted Assets, in which case such
                Loan
                Party shall not be obliged to grant Liens in the Restricted Assets,
                provided
                that the Loan Parties shall use their best efforts with respect to
                the
                matters within their respective control to obtain, within ninety
                (90)
                after the date of such Permitted Acquisition (A) the consent of the
                applicable regulatory authority to the pledge or grant of first and
                prior
                Liens, other than Permitted Liens, in the Restricted Assets of such
                Loan
                Party to the Collateral Agent, or (B) the acknowledgement by such
                regulatory authority that such a pledge or grant of security interests
                does not require such consent, and that Loan Party shall within ten
                (10)
                days after receiving any such acknowledgement or consent take all
                steps
                necessary or appropriate to pledge and grant first and prior Liens,
                other
                than Permitted Liens, in favor of the Collateral Agent in, as applicable,
                the Restricted Assets pursuant to the Pledge and Security Agreement
                and
                any other applicable Collateral Documents, other Loan Documents,
                and/or
                documents consistent with the Collateral Documents.
                

            

    

     

    
      	(3)  	
              If
                that Loan Party is not engaged in a Current Field of Enterprise both
                before and after the Permitted Acquisition, the aggregate consideration
                paid for the Acquisition of Property of such Person by such Loan
                Party
                pursuant to this clause (iii)(f) of this Section 6.13, when aggregated
                with all other consideration paid for the Investment in any Person
                under
                clause (ii)(c) and when further aggregated with all other Acquisitions
                and
                Investments under clauses (iii)(d)(4) and (iii)(e) of this Section,
                shall
                not exceed 20% of Consolidated Net Worth at the time of the proposed
                Acquisition of such Property. 

            

    

    

    
      	(g)  	
              The
                Loan Parties shall demonstrate, including, in appropriate circumstances
                determined by and acceptable to the Agent, through representations
                by the
                Loan Parties, that they shall be in compliance with (i) the covenants
                contained in Sections 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 6.18,
                6.19, 6.23, 6.24, 6.25, 6.26, 6.30, 6.32, 6.33 and 6.34 (including
                in such
                computation Indebtedness, Contingent Obligations, Sale and Leaseback
                Transactions and all other liabilities and/or obligations assumed
                or
                incurred by a Loan Party or such Person in connection with such Permitted
                Acquisition), and (ii) all other provisions of this Agreement after
                giving
                effect to any Permitted Acquisition, by delivering at least five
                (5)
                Business Days prior to such Permitted Acquisition a certificate in
                the
                form of Exhibit
                M
                hereto (each an “Acquisition Compliance Certificate”) evidencing such
                compliance.

            

    

    

    6.14 Subsidiaries.
      Each
      Loan Party shall not, and shall not permit any of its Subsidiaries to, own
      or
      create, directly or indirectly, any Subsidiaries other than (a) any Subsidiary
      on the Closing Date, and (b) any Subsidiary formed or acquired after the Closing
      under this Agreement pursuant to a Permitted Acquisition. Unless the Subsidiary
      so acquired is an Excluded Entity with respect to which the Loan Parties have
      complied with Section 6.13, such newly formed or acquired Subsidiary and the
      applicable Loan Party, as applicable, shall grant and cause to be perfected
      first and prior Liens (other than Permitted Liens) in favor of the Collateral
      Agent in the assets held by, and stock of or other ownership interest in, such
      Subsidiary, subject to Section 6.13(iii)(d)(3). Except as otherwise permitted
      under Section 6.13 of this Agreement, each of the Loan Parties shall not become
      or agree to become (1) a general or limited partner in any general or limited
      partnership, except that Loan Parties may be general or limited partners in
      other Loan Parties, (2) become a member or manager of, or hold a limited
      liability company interest in, a limited liability company, except that the
      Loan
      Parties may be members or managers of, or hold limited liability company
      interest in, other Loan Parties, or (3) become a joint venturer or hold a joint
      venture interest in any joint venture. 

    

    6.15  Certain
      Transactions.
      Except
      for the Sale and Leaseback Transaction that is a part of the Master Plan Bond
      Transaction, the Borrower and the other Loan Parties collectively, in the
      aggregate, may not incur Indebtedness under Sections 6.10(x) or Off Balance
      Sheet Liabilities under Section 6.23 (ii), which, at any one time, aggregate
      for
      the Borrower and all of the other Loan Parties, collectively, in an amount
      more
      than $40,000,000.00.

    

    6.16  Liens.
      The
      Borrower will not, nor will it permit any Subsidiary to, create, incur, or
      suffer to exist any Lien in, of or on the Property of the Borrower or any of
      its
      Subsidiaries, except (collectively, "Permitted Liens"):

    

    
      	(i)  	
              Liens
                for taxes, assessments or governmental charges or levies on such
                Loan
                Party's Property if the same shall not at the time be delinquent
                or
                thereafter can be paid without penalty, or are being contested in
                good
                faith and by appropriate proceedings and for which adequate reserves
                in
                accordance with Agreement Accounting Principles shall have been set
                aside
                on such Loan Party's books.

            

    

    

    
      	(ii)  	
              Liens
                imposed by law, such as carriers', warehousemen's and mechanics'
                liens and
                other similar Liens arising in the ordinary course of business which
                secure payment of obligations not more than sixty (60) days past
                due or
                which are being contested in good faith by appropriate proceedings
                and for
                which adequate reserves in accordance with Agreement Accounting Principles
                shall have been set aside on such Loan Party's
                books.

            

    

    

    
      	(iii)  	
              Liens
                arising out of pledges or deposits under worker's compensation laws,
                unemployment insurance, old age pensions, or other social security
                or
                retirement benefits, or similar
                legislation.

            

    

    

    
      	(iv)  	
              Utility
                easements, building restrictions and such other encumbrances or charges
                against real property as are of a nature generally existing with
                respect
                to properties of a similar character and which do not in any material
                way
                affect the marketability of the same or interfere with the use thereof
                in
                the business of the Borrower or its
                Subsidiaries.

            

    

    

    
      	(v)  	
              Liens
                existing on the date hereof and described in Schedule
                2
                and any Lien filed or which arises, at any time solely against Property
                of
                any Excluded Subsidiary.

            

    

    

    
      	(vi)  	
              Liens
                in favor of the Collateral Agent, for the benefit of the Lenders,
                granted
                pursuant to any Collateral
                Document.

            

    

    

    
      	(vii)  	
              Liens,
                security interests and mortgages for the benefit of any individual
                Lender
                which provides a Rate Management Transaction permitted under Section
                6.22
                (each a "Permitted Secured Lender Rate Management Transaction") between
                one or more of the Loan Parties and such Lender, provided
                that any such Liens shall be pari passu with the Liens securing the
                other
                Secured Obligations hereunder. The parties to a "Permitted Secured
                Rate
                Management Transaction" shall state in the documentation governing
                such
                agreement that such agreement is intended to be a "Permitted Secured
                Rate
                Management Transaction" hereunder, and upon doing so such agreement
                shall
                be treated as a "Permitted Secured Rate Management Transaction" for
                all
                purposes hereunder and under each of the other Loan Documents and
                such
                agreement shall be entitled to share in the Collateral as more fully
                provided for herein and therein.

            

    

    

    
      	(viii)  	
              Liens
                created in connection with assets leased under Capitalized Leases
                described in and permitted under Section 6.10(v).
                

            

    

    

    
      	(ix)  	
              Purchase
                money security interests described in and permitted under Section
                6.10(iv).

            

    

    

    
      	(x)  	
              So
                long as, (A)  the validity or amount thereof is being contested
                in
                good faith by appropriate and lawful proceedings diligently conducted
                and
                so long as levy and execution thereon have been stayed and continue
                to be
                stayed or (B) if a final judgment is entered, such judgment
                is
                discharged within thirty (30) days of entry, and in either case they
                do
                not in the aggregate, materially impair the ability of the Borrower
                to
                perform its Obligations hereunder and under the other Loan Documents,
                then
                the following:

            

    

    

    
      	(a)  	
              Claims
                or Liens for taxes, assessments or charges due and payable and subject
                to
                interest or penalty, provided
                that the applicable Loan Party maintains such reserves or other
                appropriate provisions as shall be required by Agreement Accounting
                Principles and pays all such taxes, assessments or charges forthwith
                upon
                the commencement of proceedings to foreclose any such Lien provided
                that, notwithstanding any such reserves, the Loan Parties shall pay
                any
                Liens related to recording or related taxes (including documentary
                stamp
                taxes or intangible taxes), immediately upon the existence of any
                Default
                or immediately upon the request of the Agent if the Collateral Agent
                has
                recorded or is recording a Mortgage with respect to such realty;
                

            

    

    

    
      	(b)  	
              Claims,
                Liens or encumbrances upon, and defects of title to, real or personal
                property other than the Collateral, including any attachment of personal
                or real property or other legal process prior to adjudication of
                a dispute
                on the merits;

            

    

    

    
      	(c)  	
              Claims
                or Liens of mechanics, materialmen, warehousemen, carriers, or other
                statutory nonconsensual Liens; or

            

    

    

    
      	(d)  	
              Claims
                or Liens resulting from judgments or orders which, in the aggregate,
                do
                not exceed $5,000,000.00.

            

    

    

    
      	(xi)  	
              Liens
                permitted under the title policies referred to in Section 4.1(i)
                hereof.

            

    

    

    6.17 Intentionally
      Omitted.
      

    

    6.18 Rentals.
      The
      Borrower will not, nor will it permit any Loan Party to, create, incur or suffer
      to exist obligations for Consolidated Rentals in excess of $10,000,000.00 in
      any
      one fiscal year for the Borrower and its Subsidiaries in the
      aggregate.

    

    6.19 Affiliates.
      The
      Borrower will not, and will not permit any Subsidiary to, enter into any
      transaction (including, without limitation, the purchase or sale of any Property
      or service) with, or make any payment or transfer to, any Affiliate except
      (i)
      in the ordinary course of business and pursuant to the reasonable requirements
      of the Borrower's or such Subsidiary's business and (ii) upon fair and
      reasonable terms no less favorable to the Borrower or such Subsidiary than
      the
      Borrower or such Subsidiary would obtain in a comparable arms-length
      transaction.

    

    6.20 No
      Prepayment of Material Indebtedness.
      The
      Loan Parties shall not, nor will any of them permit any Subsidiary to, prepay,
      anticipate, defease, purchase, redeem or acquire any Material Indebtedness
      (other than Obligations hereunder), either in whole or in part, directly or
      indirectly, prior to the scheduled maturity thereof, except for payment of
      regularly scheduled installments of principal and/or interest thereon as and
      when those installments come due in the regular course, and not by acceleration
      thereof, provided that nothing in this Section 6.20 shall prohibit an Excluded
      Subsidiary to prepay any Indebtedness with respect to which it, but not any
      Loan
      Party, is obligated. 

    

    6.21 Recordation
      of Calder Mortgage.
      The
      Agent may, and at the direction of the Required Lenders shall, direct the
      Collateral Agent to record the Calder Mortgage; and appropriate UCC fixture
      filings. The other financing statements for filing in Florida (the “Calder
      Financing Statements”) have been filed concurrently with the Previous Closing
      Date. The Loan Parties shall take all such steps as the Agent, the Collateral
      Agent or the Required Lenders request and shall otherwise cooperate in
      connection with the recordation of the Calder Mortgage, and related documents
      pursuant to the preceding sentence, including (i) obtaining title insurance
      for
      the benefit of the Collateral Agent and the Lenders in an amount not less than
      the appraised value of the property covered by such Calder Mortgage (which
      the
      Loan Parties shall be required to pay for) and (ii) if a Default exists at
      the
      time of such recordation or if a Default should occur following such
      recordation, the Loan Parties shall pay (or reimburse the Agent for) all
      documentary stamp taxes, intangible asset taxes or other fees and expenses
      associated with such recordation. The Calder Mortgage shall be treated as a
      "Recorded Mortgage" for purposes of this Agreement including the warranty in
      Section 5.14 relating to the Recorded Mortgages. 

     

    6.22 Financial
      Contracts.
      The
      Borrower has entered into the transactions of the type described in the
      definition of “Rate Management Transactions” described on Schedule
      6.22,
      and may
      enter into one or more transactions of the type described in the definition
      of
      "Rate Management Transactions" with one or more of the Lenders after the date
      of
      this Agreement, but the Borrower shall not, nor will it permit any Subsidiary
      to
      enter into or remain liable under any Financial Contract that is speculative
      in
      nature.

    

    6.23 Sale
      and Leaseback Transactions and other Off-Balance Sheet
      Liabilities.
      The
      Borrower will not, nor will it permit any Subsidiary to, enter into or suffer
      to
      exist any (i) Sale and Leaseback Transaction except the Sale and Leaseback
      Transaction that is a part of the Master Plan Bond Transaction or (ii) any
      other
      transaction pursuant to which it incurs or has incurred Off-Balance Sheet
      Liabilities, except for (a) Rate Management Obligations permitted to be incurred
      under the terms of Section 6.22 and (b) as provided in Section
      6.15.

    

    6.24 Financial
      Covenants.

    

    6.24.1 Interest
      Coverage Ratio.
      The
      Borrower will maintain the Interest Coverage Ratio, determined as of the end
      of
      each of its fiscal quarters for the then most-recently ended four fiscal
      quarters, of (i) Consolidated Adjusted EBITDA, to (ii) Consolidated Interest
      Expense, all calculated for the Loan Parties on a consolidated basis and in
      accordance with Agreement Accounting Principles, to be greater than 3.5 to
      1.0.

    

    6.24.2 Leverage
      Ratio.
      The
      Borrower will not permit the Leverage Ratio, determined as of the end of each
      of
      its fiscal quarters, of (i) Consolidated Funded Indebtedness to (ii)
      Consolidated Adjusted EBITDA for the then most-recently ended four fiscal
      quarters to be greater than 3.25 to 1.0.

    

    6.24.3 Minimum
      Net Worth.
      The
      Borrower will at all times maintain Consolidated Net Worth of not less than
      (a)
      $190,000,000 as of the Closing Date, and (b) beginning with Borrower's fiscal
      year ending December 31, 2005, the sum of (i) $190,000,000 plus (ii) 50% of
      Consolidated Net Income earned in each fiscal year (without deduction for
      losses), plus (iii) 100% of the proceeds from any public and/or private offering
      and/or sale of any common and/or preferred stock and/or other equity security,
      and/or any note, debenture, or other security convertible, in whole or in part,
      to common and/or preferred stock and/or other equity security, net of reasonable
      expenses, commissions and fees associates with such sale, from and after the
      date of this Agreement. 

    

    6.25 Loan
      Parties shall enter into Collateral Documents.
      The
      Borrower and each of the other Loan Parties shall grant to the Collateral Agent,
      for the benefit of the Lenders, a first priority perfected security interest
      in
      all of the Property of the Borrower and each of the Loan Parties, provided
      that (i)
      recordation of the Calder Mortgage and UCC fixture filings for filing in Florida
      may be delayed pursuant to and in accordance with Section 6.21, and (ii) Racing
      Corporation of America, Churchill Downs Simulcast Productions, LLC, Charlson
      Industries, Inc. and Ellis Park Race Course, Inc. shall not, so long as the
      assets of such Subsidiaries are not pledged or otherwise subject to any lien
      for
      the benefit of any other creditors, be required to execute or deliver any
      Collateral Document other than the Guaranty. To that end, each of the Loan
      Parties shall duly authorize, execute and promptly deliver the Guaranty to
      the
      Agent and deliver to the Collateral Agent the Mortgages, the Pledge and Security
      Agreement, the Assignments of Patents, Trademarks and Copyrights, the
      Intercompany Subordination Agreement and any and all other Collateral Documents,
      including without limitation all documents or instruments necessary or
      appropriate to create and/or perfect or otherwise protect the Liens in the
      Collateral in favor of the Collateral Agent for the benefit of the Lenders.
      

    

    6.26 Maintenance
      of Patents, Trademarks, Etc.
      Each
      Loan Party shall, and shall cause each of its Subsidiaries (except for the
      Excluded Subsidiaries) to, maintain in full force and effect all patents,
      trademarks, service marks, trade names, copyrights, licenses, franchises,
      permits and other authorizations necessary for the ownership and operation
      of
      its properties and business if the failure so to maintain the same would
      constitute a Material Adverse Effect.

     

    6.27 Plans
      and Benefit Arrangements.
      The
      Borrower shall, and shall cause each other member of the Controlled Group to,
      comply with ERISA, the Code and other applicable Laws applicable to Plans,
      or
      Benefit Arrangements except where such failure, alone or in conjunction with
      any
      other failure, would not result in a Material Adverse Effect. Without limiting
      the generality of the foregoing, the Borrower shall make, and cause each member
      of the Controlled Group to make, in a timely manner, all contributions due
      to
      Plans, Benefit Arrangements and Multiemployer Plans.

     

    6.28 Compliance
      with Laws.
      Each
      Loan Party shall, and shall cause each of its Subsidiaries to, comply with
      all
      applicable all applicable statutes, rules, regulations, orders and restrictions
      of any domestic or foreign government or any instrumentality or agency thereof
      having jurisdiction over the conduct of their respective businesses or the
      ownership of their respective Property, including all Environmental Laws, in
      all
      respects, provided
      that it
      shall not be deemed to be a violation of this Section 6.28 if any failure
      to comply with any of the foregoing would not result in fines, penalties,
      remediation costs, other similar liabilities or injunctive relief which in
      the
      aggregate would constitute a Material Adverse Effect.

     

    6.29 Further
      Assurances.
      Each
      Loan Party shall, from time to time, at its expense, (i) take such steps as
      may
      be necessary and/or appropriate to faithfully preserve and protect the Lien
      in
      favor of the Collateral Agent, for the benefit of the Lenders, on and security
      interest in the Collateral more fully described in the Collateral Documents
      as a
      continuing first priority perfected Lien, subject only to Permitted Liens,
      (ii)
      shall do such other acts and things as the Agent in its sole discretion may
      deem
      necessary or advisable from time to time in order to preserve, perfect and
      protect the Liens granted under the Loan Documents and to exercise and enforce
      its rights and remedies thereunder with respect to the Collateral (including
      without limitation the execution and/or delivery of such amendments and
      supplements to the Collateral Documents and related instruments and documents
      to
      the extent, and within such time periods, as are reasonably requested by the
      Collateral Agent), and (iii) as Property is acquired and as required by the
      other provisions of this Agreement, enter into additional documents from time
      to
      time in the form of the Collateral Documents (except as to the applicable Loan
      Party and the Property subject thereto) and take such other steps to grant
      and
      perfect first priority Liens on those assets to the Collateral Agent, for the
      benefit of the Lenders.

     

    6.30 Subordination
      of Intercompany Loans.
      Each
      Loan Party shall cause any intercompany Indebtedness, and loans or advances
      owed
      by any Loan Party to any other Loan Party to be subordinated pursuant to the
      terms of the Intercompany Subordination Agreement.

     

    6.31 Plans
      and Benefit Arrangements.
      Each of
      the Loan Parties shall not, and shall not permit any of its Subsidiaries
      to:

     

    
      	(i)  	
              engage
                in a Prohibited Transaction with any Plan, Benefit Arrangement or
                Multiemployer Plan which, alone or in conjunction with any other
                circumstances or set of circumstances resulting in liability under
                ERISA,
                would constitute a Material Adverse
                Effect;

            

    

     

    
      	(ii)  	
              fail
                to make when due any contribution to any Multiemployer Plan that
                the
                Borrower or any member of the Controlled Group may be required to
                make
                under any agreement relating to such Multiemployer Plan, or any Law
                pertaining thereto;

            

    

     

    
      	(iii)  	
              withdraw
                (completely or partially) from any Multiemployer Plan where any such
                withdrawal is likely to result in a material liability under Section
                4063
                of ERISA of the Borrower or any member of the Controlled Group that
                would
                constitute a Material Adverse
                Effect;

            

    

     

    
      	(iv)  	
              terminate,
                or institute proceedings to terminate, any Plan, where such termination
                is
                likely to result in a material liability to the Borrower or any member
                of
                the Controlled Group that would constitute a Material Adverse
                Effect;

            

    

     

    
      	(v)  	
              make
                any amendment to any Plan with respect to which security is required
                under
                Section 307 of ERISA;

            

    

     

    
      	(vi)  	
              fail
                to give any and all notices and make all disclosures and governmental
                filings required under ERISA or the Code, where such failure is likely
                to
                result
                in a Material Adverse Effect; or

            

    

     

    
      	(vii)  	
              create
                or enter into any Plan subject to the minimum funding requirements
                of
                ERISA, without the prior written consent of the Required
                Lenders.

            

    

     

    6.32 Issuance
      of Stock.
      Except
      as may be permitted in Section 6.13, each of the Loan Parties other than the
      Borrower shall not issue any additional shares of such Loan Party's capital
      stock or any options, warrants or other rights in respect thereof to any Person
      not a Loan Party, provided
      that the
      Borrower shall deliver stock powers and the original certificates evidencing
      such new shares in such Loan Party and shall take any other steps necessary
      to
      grant security interests in such shares in favor of the Collateral Agent prior
      to issuing such shares.

     

    6.33 Changes
      in Organizational Documents.
      Except
      as provided in the next sentence, each of the Loan Parties shall not, and shall
      not permit any of its Subsidiaries to, amend in any respect its certificate
      of
      incorporation (including any provisions or resolutions relating to capital
      stock), by-laws, certificate of limited partnership, partnership agreement,
      articles or certificate of formation, limited liability company agreement or
      other organizational documents without providing at least ten (10) calendar
      days' prior written notice to the Agent and, in the event such change would
      be
      materially adverse to the Lenders as determined by the Agent in its sole
      discretion, obtaining the prior written consent of the Required Lenders. The
      Borrower may amend its articles of incorporation to do any or all of the
      following: (1) in connection with a public offering of shares of its capital
      stock to provide for an increase in the number of authorized shares of such
      stock or (2) in connection with such a public offering to increase the total
      number of shares issuable as Series 1998 Preferred Stock to reflect the increase
      in the number of shares of the Borrower's common stock outstanding, and (3)
      delete any provisions related to cumulative voting by shareholders in the
      election or removal of directors.

     

    6.34 Contingent
      Obligations.
      The
      Borrower will not, nor will it permit any Subsidiary (except for the Excluded
      Subsidiaries) to, make or suffer to exist any Contingent Obligation (including,
      without limitation, any Contingent Obligation with respect to the obligations
      of
      a Subsidiary), except (i) by endorsement of instruments for deposit or
      collection in the ordinary course of business, (ii) the Reimbursement
      Obligations, (iii) for the Guaranty; (iv) for PSL Buyback/Guarantee(s) not
      to
      exceed $20,000,000 at any one time in the aggregate for all such PSL
      Buyback/Guarantees; (v) guaranties of the obligations of Loan Parties not to
      exceed $10,000,000 at any one time in the aggregate for all such guaranties;
      and
      (vi) potential withdrawal liability under Multiemployer Plans related to the
      Hollywood Park operation in an aggregate amount not to exceed
      $10,000,000.

    

    6.35 Other
      Agreements.
      The Loan
      Parties will not enter into any agreement containing any provision which would
      be violated or breached by the performance of their obligations hereunder or
      under any instrument or document delivered or to be delivered by them hereunder
      or in connection herewith.

    

    6.36 Preservation
      of Existence.
      Each
      Loan Party shall, and shall cause each of its Subsidiaries (other than the
      Excluded Subsidiaries) to maintain its legal existence as a corporation, limited
      partnership or limited liability company and its license or qualification and
      good standing in each jurisdiction in which its ownership or lease of property
      or the nature of its business makes such license or qualification necessary,
      except (i) as otherwise may be expressly be permitted in Sections 6.11, 6.12.
      6.13 and/or 6.14, (ii) upon a sale of Ellis Park Race Course, Inc., Racing
      Corporation of America, or their respective assets as contemplated in Section
      6.12(i)(c), Racing Corporation of America and/or Ellis Park Race Course, Inc.
      would no longer be subject to the requirements and/or limitations of this
      Section 6.36, and (iii) where such failure to do so shall not have a Material
      Adverse Effect.

    

    

    

    ARTICLE
      VII

    

    DEFAULTS

    

    

    The
      occurrence of any one or more of the following events shall constitute a
      Default:

    

    7.1  Any
      representation or warranty made or deemed made by or on behalf of the Loan
      Parties to the Lenders or the Agent under or in connection with this Agreement,
      any Credit Extension, or any certificate or information delivered in connection
      with this Agreement or any other Loan Document shall be materially false on
      the
      date as of which made.

     

    7.2  Nonpayment
      of principal of any Loan when due, or nonpayment of any Reimbursement Obligation
      in or of any interest upon any Loan or Reimbursement Obligation within one
      Business Day after the same becomes due, or of any commitment fee, LC Fee or
      other obligations under any of the Loan Documents within five days after the
      same becomes due.

     

    7.3  The
      breach by the Borrower and/or any Loan Party of any of the terms or provisions
      of Sections 6.2, 6.3, 6.10, 6.11, 6.12, 6.13, 6.14, 6.15, 6.16, 6.18, 6.19,
      6.20, 6.22, 6.23, 6.24, 6.25, 6.26, 6.27, 6.28, 6.29, 6.30, 6.31, 6.32, 6.33,
      6.34, 6.35 and/or 6.36. 

     

    7.4  The
      breach by the Borrower and/or any Loan Party (other than a breach which
      constitutes a Default under another Section of this Article VII) of any of
      the
      terms or provisions of this Agreement and/or any other Loan Document which
      is
      not remedied within five days after written notice from the Agent or any
      Lender.

     

    7.5  Failure
      of the Borrower or any of the other Loan Parties to pay when due any Material
      Indebtedness; or the default by the Borrower or any of the other Loan Parties
      in
      the performance (beyond the applicable grace period with respect thereto, if
      any) of any term, provision or condition contained in any Material Indebtedness
      Agreement, or any other event shall occur or condition exist, the effect of
      which default, event or condition is to cause, or to permit the holder(s) of
      such Material Indebtedness or the lender(s) under any Material Indebtedness
      Agreement to cause, such Material Indebtedness to become due prior to its stated
      maturity or any commitment to lend under any Material Indebtedness Agreement
      to
      be terminated prior to its stated expiration date; or any Material Indebtedness
      of the Borrower or any of the other Loan Parties shall be declared to be due
      and
      payable or required to be prepaid or repurchased (other than by a regularly
      scheduled payment) prior to the stated maturity thereof; or the Borrower or
      any
      of its Subsidiaries or any Guarantor shall not pay, or admit in writing its
      inability to pay, its debts generally as they become due.

     

    7.6  The
      Borrower or any of the other Loan Parties shall (i) have an order for relief
      entered with respect to it under the Federal bankruptcy laws as now or hereafter
      in effect, (ii) make an assignment for the benefit of creditors, (iii) apply
      for, seek, consent to, or acquiesce in, the appointment of a receiver,
      custodian, trustee, examiner, liquidator or similar official for it or any
      Term
      Substantial Portion or Twelve Month Substantial Portion of its Property, (iv)
      institute any proceeding seeking an order for relief under the Federal
      bankruptcy laws as now or hereafter in effect or seeking to adjudicate it a
      bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
      reorganization, arrangement, adjustment or composition of it or its debts under
      any law relating to bankruptcy, insolvency or reorganization or relief of
      debtors or fail to file an answer or other pleading denying the material
      allegations of any such proceeding filed against it, (v) take any corporate
      or
      partnership action to authorize or effect any of the foregoing actions set
      forth
      in this Section 7.6 or (vi) fail to contest in good faith any appointment or
      proceeding described in Section 7.7.

     

    7.7  Without
      the application, approval or consent of the Borrower or any of the other Loan
      Parties, a receiver, trustee, examiner, liquidator or similar official shall
      be
      appointed for the Borrower or any of the other Loan Parties or any Term
      Substantial Portion or Twelve Month Substantial Portion of its Property, or
      a
      proceeding described in Section 7.6(iv) shall be instituted against the Borrower
      or any of the other Loan Parties and such appointment continues undischarged
      or
      such proceeding continues undismissed or unstayed for a period of 60 consecutive
      days.

     

    7.8  Any
      court, government or governmental agency shall condemn, seize or otherwise
      appropriate, or take custody or control of, all or any portion of the Property
      of any of the Loan Parties which, when taken together with all other Property
      of
      the Loan Parties so condemned, seized, appropriated, or taken custody or control
      of, during the twelve-month period ending with the month in which any such
      action occurs, constitutes a Term Substantial Portion or Twelve Month
      Substantial Portion.

     

    7.9  The
      Borrower or any of the other Loan Parties shall fail within thirty (30) days
      to
      pay, bond or otherwise discharge one or more (i) judgments or orders for the
      payment of money in excess of $5,000,000.00 (or the equivalent thereof in
      currencies other than U.S. Dollars) in the aggregate, or (ii) nonmonetary
      judgments or orders which, individually or in the aggregate, could reasonably
      be
      expected to have a Material Adverse Effect, which judgment(s), in any such
      case,
      is/are not stayed on appeal or otherwise being appropriately contested in good
      faith.

     

    7.10  Nonpayment
      by the Borrower or any Loan Party of any Rate Management Obligation when due
      or
      the breach by the Borrower or any Subsidiary of any term, provision or condition
      contained in any Rate Management Transaction or any transaction of the type
      described in the definition of "Rate Management Transactions," whether or not
      any Lender or Affiliate of a Lender is a party thereto.

     

    7.11  Any
      Change in Control shall occur.

     

    7.12  The
      Borrower or any other member of the Controlled Group shall have been notified
      by
      the sponsor of a Multiemployer Plan that it has incurred withdrawal liability
      to
      such Multiemployer Plan in an amount which, when aggregated with all other
      amounts required to be paid to Multiemployer Plans by the Borrower or any other
      member of the Controlled Group as withdrawal liability (determined as of the
      date of such notification), exceeds $10,000,000.00 or requires payments
      exceeding $10,000,000.00 per annum.

     

    7.13  The
      Borrower or any other member of the Controlled Group shall have been notified
      by
      the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
      reorganization or is being terminated, within the meaning of Title IV of ERISA,
      if as a result of such reorganization or termination the aggregate annual
      contributions of the Borrower and the other members of the Controlled Group
      (taken as a whole) to all Multiemployer Plans which are then in reorganization
      or being terminated have been or will be increased over the amounts contributed
      to such Multiemployer Plans for the respective plan years of each such
      Multiemployer Plan immediately preceding the plan year in which the
      reorganization or termination occurs by an amount exceeding
      $10,000,000.00.

     

    7.14  The
      Borrower or any of the other Loan Parties shall (i) be the subject of any
      proceeding or investigation pertaining to the release by the Borrower, any
      of
      the other Loan Parties or any other Person of any toxic or hazardous waste
      or
      substance into the environment, or (ii) violate any Environmental Law, which,
      in
      the case of an event described in clause (i) or clause (ii), could reasonably
      be
      expected to have a Material Adverse Effect.

     

    7.15  The
      occurrence of any "default," as defined in any Loan Document (other than this
      Agreement) or the breach of any of the terms or provisions of any Loan Document
      (other than this Agreement), which default or breach continues beyond any period
      of grace therein provided.

     

    7.16  Any
      Guaranty shall fail to remain in full force or effect or any action shall be
      taken to discontinue or to assert the invalidity or unenforceability of any
      Guaranty, or any Guarantor shall fail to comply with any of the terms or
      provisions of any Guaranty to which it is a party, or any Guarantor shall deny
      that it has any further liability under any Guaranty to which it is a party,
      or
      shall give notice to such effect.

     

    7.17  Any
      Collateral Document shall for any reason fail to create a valid and perfected
      first priority security interest in any Collateral purported to be covered
      thereby, except as permitted by the terms of any Collateral Document, or any
      Collateral Document shall fail to remain in full force or effect or any action
      shall be taken to discontinue or to assert the invalidity or unenforceability
      of
      any Collateral Document, or the Borrower shall fail to comply with any of the
      terms or provisions of any Collateral Document.

     

    7.18  The
      representations and warranties set forth in Section 5.15 (Plan Assets;
      Prohibited Transactions) shall at any time not be true and correct.

     

    7.19  The
      Borrower or any Loan Party shall fail to pay when due any Operating Lease
      Obligation, obligation with respect to a Letter of Credit, obligation under
      a
      Sale and Leaseback Transaction or Contingent Obligation which in any of those
      cases involves a Material Indebtedness.

     

    7.20  Intentionally
      Omitted.

     

    7.21  The
      occurrence of any default under or breach of any of the terms or provisions
      of
      the applicable documents in the Master Plan Bond Transaction, which default
      or
      breach continues beyond any period of grace therein provided. 

     

    ARTICLE
      VIII

    

    ACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES

    

    

    8.1 Acceleration;
      Facility LC Collateral Account.
      

    

    
      	(i)  	
              If
                any Default described in Section 7.6 or 7.7 occurs with respect to
                the
                Borrower, the obligations of the Lenders to make Loans hereunder
                and the
                obligation and power of the LC Issuer to issue Facility LCs shall
                automatically terminate and the Obligations shall immediately become
                due
                and payable without any election or action on the part of the Agent,
                the
                Collateral Agent, the LC Issuer or any Lender and the Borrower will
                be and
                become thereby unconditionally obligated, without any further notice,
                act
                or demand, to pay to the Collateral Agent an amount in immediately
                available funds, which funds shall be held in the Facility LC Collateral
                Account, equal to the difference of (x) the amount of LC Obligations
                at
                such time, less (y) the amount on deposit in the Facility LC Collateral
                Account at such time which is free and clear of all rights and claims
                of
                third parties and has not been applied against the Obligations (such
                difference, the "Collateral Shortfall Amount"). If any other Default
                occurs, the Required Lenders (or the Agent with the consent of the
                Required Lenders) may (a) terminate or suspend the obligations of
                the
                Lenders to make Loans hereunder and the obligation and power of the
                LC
                Issuer to issue Facility LCs, or declare the Obligations to be due
                and
                payable, or both, whereupon the Obligations shall become immediately
                due
                and payable, without presentment, demand, protest or notice of any
                kind,
                all of which the Borrower hereby expressly waives, and (b) upon notice
                to
                the Borrower and in addition to the continuing right to demand payment
                of
                all amounts payable under this Agreement, make demand on the Borrower
                to
                pay, and the Borrower will, forthwith upon such demand and without
                any
                further notice or act, pay to the Collateral Agent the Collateral
                Shortfall Amount, which funds shall be deposited in the Facility
                LC
                Collateral Account.

            

    

    

    
      	(ii)  	
              If
                at any time while any Default is continuing, the Agent determines
                that the
                Collateral Shortfall Amount at such time is greater than zero, the
                Agent
                may make demand on the Borrower to pay, and the Borrower will, forthwith
                upon such demand and without any further notice or act, pay to the
                Collateral Agent the Collateral Shortfall Amount, which funds shall
                be
                deposited in the Facility LC Collateral
                Account.

            

    

    

    
      	(iii)  	
              The
                Collateral Agent may at any time or from time to time after funds
                are
                deposited in the Facility LC Collateral Account, apply such funds
                to the
                payment of the Obligations and any other amounts as shall from time
                to
                time have become due and payable by the Borrower to the Lenders or
                the LC
                Issuer.

            

    

    

    
      	(iv)  	
              At
                any time while any Default is continuing, neither the Borrower nor
                any
                Person claiming on behalf of or through the Borrower shall have any
                right
                to withdraw any of the funds held in the Facility LC Collateral Account.
                After all of the Obligations have been indefeasibly paid in full
                and the
                Aggregate Commitment has been terminated, any funds remaining in
                the
                Facility LC Collateral Account shall be distributed to Borrower or
                paid to
                whomever may be legally entitled thereto at such
                time.

            

    

    

    
      	(v)  	
              If,
                within 30 days after acceleration of the maturity of the Obligations
                or
                termination of the obligations of the Lenders to make Loans and the
                obligation and power of the LC Issuer to issue Facility LCs hereunder
                as a
                result of any Default (other than any Default as described in Section
                7.6
                or 7.7 with respect to the Borrower) and before any judgment or decree
                for
                the payment of the Obligations due shall have been obtained or entered,
                the Required Lenders (in their sole discretion) shall so direct,
                the Agent
                shall, by notice to the Borrower, rescind and annul such acceleration
                and/or termination.

            

    

    

    
      	 	
              (vi)
                 

            	
              The
                Collateral Agent shall have the right to exercise the remedies and
                other
                rights with respect to the Collateral provided in and subject to
                the
                Collateral Documents.

            

    

    

    8.2 Amendments.
      Subject
      to the provisions of this Section 8.2, the Required Lenders (or the Agent with
      the consent in writing of the Required Lenders) and the Borrower may enter
      into
      agreements supplemental hereto for the purpose of adding or modifying any
      provisions to the Loan Documents or changing in any manner the rights of the
      Lenders or the Borrower hereunder or waiving any Default hereunder; provided,
      however,
      that no
      such supplemental agreement shall, without the consent of all of the
      Lenders:

    

    
      	 	
              (i)
                 

            	
              Extend
                the final maturity of any Loan, or extend the expiry date of any
                Facility
                LC to a date after the Facility Termination Date or postpone any
                regularly
                scheduled payment of principal of any Loan or forgive all or any
                portion
                of the principal amount thereof or any Reimbursement Obligation related
                thereto, or reduce the rate or extend the time of payment of interest
                or
                fees thereon or Reimbursement Obligation related
                thereto.

            

    

    

    
      	(ii)  	
              Reduce
                the percentage specified in the definition of Required
                Lenders.

            

    

    

    
      	(iii)  	
              Extend
                the Facility Termination Date, or reduce the amount or extend the
                payment
                date for, the mandatory payments required under Section 2.4, or increase
                the amount of the Aggregate Commitment, except as provided in Section
                2.22, or of the Commitment of any Lender hereunder or the commitment
                to
                issue Facility LCs, or permit the Borrower to assign its rights under
                this
                Agreement.

            

    

    

    
      	(iv)  	
              Amend
                this Section 8.2.

            

    

    

    
      	(v)  	
              Release
                any Guarantor except as provided in Section 6.12(iii) or, except
                as
                provided in the Collateral Documents, agree to subordinate the Lenders'
                Liens with respect to all or substantially all of the Collateral.
                

            

    

    

    
      	(vi)  	
              Release
                substantially all of the Collateral, provided
                that the Lenders acknowledge that the Agent may alone instruct the
                Collateral Agent to release any Collateral as and to the extent provided
                in Section 10.16.

            

    

    

    No
      amendment of any provision of this Agreement relating to the Agent shall be
      effective without the written consent of the Agent, and no amendment of any
      provision relating to the LC Issuer shall be effective without the written
      consent of the LC Issuer. The Agent may (i) waive payment of the fee required
      under Section 12.3.3 and (ii) implement any flex pricing provisions contained
      in
      the fee letter described in Section 10.13 or any commitment letter delivered
      in
      connection with the transaction which is the subject of this Agreement without
      obtaining the consent of any other party to this Agreement so long as, in the
      case of any implementation of any flex-pricing provisions, the Agent's actions
      would not require consent of all of the Lenders pursuant to the foregoing
      provisions of this Section.

    

    8.3 Preservation
      of Rights.
      No
      delay or omission of the Lenders, the LC Issurer, the Agent or the Collateral
      Agent to exercise any right under the Loan Documents shall impair such right
      or
      be construed to be a waiver of any Default or an acquiescence therein, and
      the
      making of a Credit Extension notwithstanding the existence of a Default or
      the
      inability of the Borrower to satisfy the conditions precedent to such Credit
      Extension shall not constitute any waiver or acquiescence. Any single or partial
      exercise of any such right shall not preclude other or further exercise thereof
      or the exercise of any other right, and no waiver, amendment or other variation
      of the terms, conditions or provisions of the Loan Documents whatsoever shall
      be
      valid unless in writing signed by the Lenders required pursuant to Section
      8.2,
      and then only to the extent in such writing specifically set forth. All remedies
      contained in the Loan Documents or by law afforded shall be cumulative and
      all
      shall be available to the Agent, the LC Issuer, the Lenders and the Collateral
      Agent until the Secured Obligations have been paid in full.

    

    

    ARTICLE
      IX

    

    GENERAL
      PROVISIONS

    

    9.1 Survival
      of Representations.
      All
      representations and warranties of the Borrower contained in this Agreement
      shall
      survive the making of the Credit Extensions herein contemplated.

    

    9.2 Governmental
      Regulation.
      Anything contained in this Agreement to the contrary notwithstanding, neither
      the LC Issuer nor any Lender shall be obligated to extend credit to the Borrower
      in violation of any limitation or prohibition provided by any applicable statute
      or regulation.

    

    9.3 Headings.
      Section
      headings in the Loan Documents are for convenience of reference only, and shall
      not govern the interpretation of any of the provisions of the Loan
      Documents.

    

    9.4 Entire
      Agreement.
      The
      Loan Documents embody the entire agreement and understanding among the Borrower,
      the Agent, the Collateral Agent, the LC Issuer and the Lenders and supersede
      all
      prior agreements and understandings among the Borrower, the Agent, the LC Issuer
      and the Lenders relating to the subject matter thereof other than those
      contained in the fee letter described in Section 10.13 and any flex pricing
      provisions contained in any commitment letter entered into in connection with
      the transactions that are the subject of this Agreement, all of which survives
      and remains in full force and effect during the term of this
      Agreement.

    

    9.5 Several
      Obligations; Benefits of this Agreement.
      The
      respective obligations of the Lenders hereunder are several and not joint and
      no
      Lender shall be the partner or agent of any other (except to the extent to
      which
      the Agent is authorized to act as such). The failure of any Lender to perform
      any of its obligations hereunder shall not relieve any other Lender from any
      of
      its obligations hereunder. This Agreement shall not be construed so as to confer
      any right or benefit upon any Person other than the parties to this Agreement
      and their respective successors and assigns, provided,
      however,
      that the
      parties hereto expressly agree that the Arranger shall enjoy the benefits of
      the
      provisions of Sections 9.6, 9.10 and 10.11 to the extent specifically set forth
      therein and shall have the right to enforce such provisions on its own behalf
      and in its own name to the same extent as if it were a party to this
      Agreement.

    

    9.6 Expenses;
      Indemnification.
      

    

    
      	(i)  	
              The
                Borrower shall reimburse the Agent (the term “Agent” in this Section 9.6
                also being used to refer to the Agent in its capacity as Collateral
                Agent)
                and J.P. Morgan Securities Inc. for any costs, internal charges and
                out-of-pocket expenses (including reasonable attorneys' fees and
                time
                charges of attorneys for the Agent, which attorneys may be employees
                of
                the Agent) paid or incurred by the Agent or the Arranger in connection
                with the preparation, negotiation, execution, delivery, syndication,
                distribution (including, without limitation, via the internet), review,
                amendment, modification, and administration of the Loan Documents.
                The
                Borrower also agrees to reimburse the Agent, J.P. Morgan Securities
                Inc.,
                the LC Issuer and the Lenders for any costs, internal charges and
                out-of-pocket expenses (including reasonable attorneys' fees and
                time
                charges of attorneys for the Agent, J.P. Morgan Securities Inc.,
                the LC
                Issuer and the Lenders, which attorneys may be employees of the Agent,
                J.P. Morgan Securities Inc., or the Lenders) paid or incurred by
                the
                Agent, J.P. Morgan Securities Inc., the LC Issuer or any Lender in
                connection with the collection and enforcement of the Loan Documents.
                Expenses being reimbursed by the Borrower under this Section include,
                without limitation, the cost and expense of obtaining an appraisal,
                if
                any, of any parcel of real property or interest in real property
                described
                in any relevant Collateral Documents which appraisal, if any, shall
                be in
                conformity with the applicable requirements of any law or any governmental
                rule, regulation, policy, guideline or directive (whether or not
                having
                the force of law), or any interpretation thereof, including, without
                limitation, the provisions of Title XI of the Financial Institutions
                Reform, Recovery and Enforcement Act of 1989, as amended, reformed
                or
                otherwise modified from time to time, and any rules promulgated to
                implement such provisions and costs and expenses incurred in connection
                with the Reports described in the following sentence. The Borrower
                acknowledges that from time to time the Agent may prepare and may
                distribute to the Lenders (but shall have no obligation or duty to
                prepare
                or to distribute to the Lenders) certain audit reports (the "Reports")
                and/or the Collateral Agent may prepare and distribute Reports to
                the
                Agent (but the Collateral Agent shall have no obligation or duty
                to
                prepare or distribute such Reports, nor shall the Agent have any
                obligation or duty to distribute such Reports to the Lenders as it
                may
                receive from the Collateral Agent) pertaining to the Borrower's Property
                for internal use by the Agent from information furnished to it by
                or on
                behalf of the Borrower, after the Agent or the Collateral Agent has
                exercised its rights of inspection pursuant to this
                Agreement.

            

    

    

    
      	(ii)  	
              The
                Borrower hereby further agrees to indemnify the Agent, the Arranger,
                the
                LC Issuer and each Lender, their respective affiliates, and each
                of their
                directors, officers and employees against all losses, claims, damages,
                penalties, judgments, liabilities and expenses (including, without
                limitation, all expenses of litigation or preparation therefor whether
                or
                not the Agent, the Arranger, the LC Issuer any Lender or any affiliate
                is
                a party thereto) which any of them may pay or incur arising out of
                or
                relating to this Agreement, the other Loan Documents, the transactions
                contemplated hereby or the direct or indirect application or proposed
                application of the proceeds of any Credit Extension hereunder except
                to
                the extent that they are determined in a final non-appealable judgment
                by
                a court of competent jurisdiction to have resulted from the gross
                negligence or willful misconduct of the party seeking indemnification.
                

            

    

    

    
      	(iii)  	
              The
                Agent and the Lenders shall not be liable for, and the Loan Parties
                agree
                that they shall immediately pay to the Agent and the Lenders when
                incurred
                and shall indemnify, defend and hold the Lenders harmless from and
                against, all loss, cost, liability, damage and expense (including,
                without
                limitation, reasonable attorneys' fees and costs incurred in the
                investigation, defense and settlement of claims) that the Agent or
                the
                Lenders may suffer or incur as mortgagees as a result of, or in connection
                in any way with any applicable Environmental Laws (including the
                assertion
                that any lien existing pursuant to the Environmental Laws takes priority
                over the lien or security interests of the Collateral Agent or Lenders),
                or any environmental assessment or study from time to time reasonably
                undertaken or requested by the Agent or any Lenders or breach of
                any
                covenant or undertaking by the Loan Parties. The
                obligations of the Loan Parties under this Section 9.6 shall survive
                the
                termination of this Agreement.

            

    

    

    9.7 Numbers
      of Documents.
      All
      statements, notices, closing documents, and requests hereunder shall be
      furnished to the Agent with sufficient counterparts so that the Agent may
      furnish one to each of the Lenders.

    

    9.8 Accounting.
      Except
      as provided to the contrary herein, all accounting terms used herein shall
      be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with Agreement Accounting Principles, except that any calculation
      or
      determination which is to be made on a consolidated basis shall be made for
      the
      Borrower and the other Loan Parties.

    

    9.9 Severability
      of Provisions.
      Any
      provision in any Loan Document that is held to be inoperative, unenforceable,
      or
      invalid in any jurisdiction shall, as to that jurisdiction, be inoperative,
      unenforceable, or invalid without affecting the remaining provisions in that
      jurisdiction or the operation, enforceability, or validity of that provision
      in
      any other jurisdiction, and to this end the provisions of all Loan Documents
      are
      declared to be severable.

    

    9.10 Nonliability
      of Lenders.
      The
      relationship between the Borrower on the one hand and the Lenders, the LC Issuer
      and the Agent on the other hand shall be solely that of borrower and lender.
      Neither the Agent, the Arranger, the LC Issuer nor any Lender shall have any
      fiduciary responsibilities to the Borrower. Neither the Agent, the Arranger,
      the
      LC Issuer nor any Lender undertakes any responsibility to the Borrower to review
      or inform the Borrower of any matter in connection with any phase of the
      Borrower's business or operations. The Borrower agrees that neither the Agent,
      the Collateral Agent, the Arranger, the LC Issuer nor any Lender shall have
      liability to the Borrower (whether sounding in tort, contract or otherwise)
      for
      losses suffered by the Borrower in connection with, arising out of, or in any
      way related to, the transactions contemplated and the relationship established
      by the Loan Documents, or any act, omission or event occurring in connection
      therewith, unless it is determined in a final nonappealable judgment by a court
      of competent jurisdiction that such losses resulted from the gross negligence
      or
      willful misconduct of the party from which recovery is sought. Neither the
      Agent, the Collateral Agent, the Arranger, the LC Issuer nor any Lender shall
      have any liability with respect to, and the Borrower hereby waives, releases
      and
      agrees not to sue for, any special, indirect, consequential or punitive damages
      suffered by the Borrower in connection with, arising out of, or in any way
      related to the Loan Documents or the transactions contemplated
      thereby.

    

    9.11 Confidentiality.
      Each
      Lender agrees to, and to cause its Affiliates to, hold any confidential
      information which it may receive from the Borrower pursuant to this Agreement
      in
      confidence, except for disclosure (i) to its Affiliates and to other Lenders
      and
      their respective Affiliates, (ii) to legal counsel, accountants, and other
      professional advisors to such Lender or to a Transferee, (iii) to regulatory
      officials, (iv) to any Person as requested pursuant to or as required by law
      or
      regulation, (v) to any Person in connection with any legal proceeding to which
      such Lender is a party, to the extent required by law or legal process,
provided
      that
      such
      Lender shall have used its best reasonable efforts to provide notice to the
      Borrower of the legal process requesting disclosure of such confidential
      information prior to disclosure, (vi) to such Lender's direct or indirect
      contractual counterparties in swap agreements or to legal counsel, accountants
      and other professional advisors to such counterparties, provided that
      such
      Lender is a party to a Rate Management Transaction with the Borrower, (vii)
      permitted by Section 12.4, and (viii) to rating agencies if requested or
      required by such agencies in connection with a rating relating to the Advances
      hereunder.

    

    9.12 Nonreliance.
      Each
      Lender hereby represents that it is not relying on or looking to any margin
      stock (as defined in Regulation U of the Board of Governors of the Federal
      Reserve System) for the repayment of the Credit Extensions provided for
      herein.

    

    9.13 Disclosure.
      The
      Borrower and each Lender hereby acknowledge and agree that the Agent and/or
      its
      Affiliates from time to time may hold investments in, make other loans to or
      have other relationships with the Borrower and its Affiliates.

    

    9.14 Joinder
      of Guarantors.
      If a
      Subsidiary is required to join this Agreement as a Guarantor pursuant to Section
      6.14 (regarding Subsidiaries) and/or 6.13 (regarding Permitted Acquisitions)
      then (a) such Subsidiary shall execute and deliver to the Agent (1) a Guarantor
      Joinder in substantially the form attached hereto as Exhibit
      N
      (a
      "Guarantor Joinder") pursuant to which it shall join as a Guarantor each of
      the
      documents to which the Guarantors are parties; (2) documents in the forms
      described in Section 4.1 modified as appropriate to relate to such Subsidiary,
      including opinions of counsel with respect to each Subsidiary; (3) documents
      necessary to grant and perfect first and prior Liens (other than Permitted
      Liens) in favor of the Collateral Agent in all property and assets held by
      such
      Subsidiary and in the ownership interests in such Subsidiary, and (b) to the
      extent required under this Agreement, the Loan Party which holds the ownership
      interest in such Subsidiary shall take such steps as are necessary to pledge
      such interests pursuant to the Pledge and Security Agreement and grant to the
      Collateral Agent first and prior Liens (other than Permitted Liens) therein,
      except to the extent such grant of security interests is excused or delayed
      under Section 6.13(iii)(d)(3) of this Agreement. In the case of any Subsidiary
      formed after the date of this Agreement, the Loan Parties shall deliver such
      Guarantor Joinder and related documents to the Agent within five (5) business
      days after the date of the filing of such Subsidiary's Articles of Incorporation
      if the Subsidiary is a corporation, the date of the filing of its certificate
      of
      limited partnership if it is a limited partnership, or the date of its
      organization if it is an entity other than a limited partnership or corporation,
      or the closing date of the acquisition agreement in the case of a Permitted
      Acquisition.

    

    9.15 Business
      Days.
      Except
      as provided in the definition of "Interest Period" in Article I above, if any
      provision of this Agreement or any of the other Loan Documents requires that
      the
      Borrower perform any act (other than to make a payment) on a day that is not
      a
      Business Day, then the action shall be deemed to be due on the first day
      thereafter that is a Business Day; and in the case of a payment, shall be due
      on
      the last Business Day prior to the date that is not a Business Day but upon
      which the payment is due. 

    

    9.16 No
      Course of Dealing.
      No
      course of dealing between the Borrower and the Lenders, the Agent or the
      Collateral Agent shall operate as a waiver of any of the rights of the Lenders,
      the Agent and the Collateral Agent under any of the Loan Documents.

    

    9.17 Waivers
      by the Borrower.
      The
      Borrower hereby waives, to the extent permitted by applicable law, (a) all
      presentments, demands for performances, notices of nonperformance (except to
      the
      extent specifically required by this Agreement or any other of the Loan
      Documents), protests, notices of protest and notices of dishonor in connec-tion
      with this Agreement or any Notes, (b) any requirement of diligence or
      promptness on the part of any Lender in enforcement of rights under the
      provisions of any of the Loan Documents, and (c) any requirement of
      marshaling assets or proceed-ing against Persons or assets in any particular
      order.

    

    9.18 Incorporation
      by Reference.
      All
      schedules, annexes or other attachments to this Agreement are incorporated
      into
      this Agreement as if set out in full at the first place in this Agreement that
      reference is made thereto. 

    

    9.19 USA
      Patriot Act Notification.
      The
      following notification is provided to the Borrower pursuant to Section 326
      of
      the USA Patriot Act of 2001, 31 U.S.C. Section 5318:

    

    IMPORTANT
      INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the government
      of the United States of America fight the funding of terrorism and money
      laundering activities, Federal law requires all financial institutions to
      obtain, verify, and record information that identifies each Person that opens
      an
      account, including any deposit account, treasury management account, loan,
      other
      extension of credit, or other financial services product. Accordingly, when
      the
      Borrower opens an account, the Agent and the Lenders will ask for the Borrower's
      name, tax identification number, business address, and other information that
      will allow the Agent and the Lenders to identify the Borrower. The Agent and
      the
      Lenders may also ask to see the Borrower's legal organizational documents or
      other identifying documents.

    

    

    ARTICLE
      X

     

    THE
      AGENT

    

    

    10.1 Appointment;
      Nature of Relationship.
      JPMorgan is hereby re-appointed by each of the Lenders as its contractual
      representative and as Collateral Agent (herein referred to collectively in
      this
      Article X as the "Agent") hereunder and under each other Loan Document, and
      each
      of the Lenders irrevocably authorizes the Agent to act as the contractual
      representative of such Lender with the rights and duties expressly set forth
      herein and in the other Loan Documents. The Agent agrees to act as such
      contractual representative upon the express conditions contained in this Article
      X. Notwithstanding the use of the defined term "Agent," it is expressly
      understood and agreed that the Agent shall not have any fiduciary
      responsibilities to any Lender by reason of this Agreement or any other Loan
      Document and that the Agent is merely acting as the contractual representative
      of the Lenders with only those duties as are expressly set forth in this
      Agreement and the other Loan Documents. In its capacity as the Lenders'
      contractual representative, the Agent (i) does not hereby assume any fiduciary
      duties to any of the Lenders, and (ii) is acting as an independent contractor,
      the rights and duties of which are limited to those expressly set forth in
      this
      Agreement and the other Loan Documents. Each of the Lenders hereby agrees to
      assert no claim against the Agent on any agency theory or any other theory
      of
      liability for breach of fiduciary duty, all of which claims each Lender hereby
      waives. Except as expressly set forth herein, the Agent shall not have any
      duty
      to disclose, and shall not be liable for the failure to disclose, any
      information relating to the Borrower or any other Loan Party that is
      communicated to or obtained by the bank servicing as Agent or any of its
      Affiliates in any capacity.

    

    10.2 Powers.
      The
      Agent shall have and may exercise such powers under the Loan Documents as are
      specifically delegated to the Agent by the terms of each thereof, together
      with
      such powers as are reasonably incidental thereto. The Agent shall have no
      implied duties to the Lenders, or any obligation to the Lenders to take any
      action thereunder except any action specifically provided by the Loan Documents
      to be taken by the Agent.

    

    10.3 General
      Immunity.
      Neither
      the Agent nor any of its directors, officers, agents or employees shall be
      liable to the Borrower, the Lenders or any Lender for any action taken or
      omitted to be taken by it or them hereunder or under any other Loan Document
      or
      in connection herewith or therewith except to the extent such action or inaction
      is determined in a final non-appealable judgment by a court of competent
      jurisdiction to have arisen from the gross negligence or willful misconduct
      of
      such Person.

    

    10.4 No
      Responsibility for Loans, Recitals, etc
      Neither
      the Agent nor any of its directors, officers, agents or employees shall be
      responsible for or have any duty to ascertain, inquire into, or verify (a)
      any
      statement, warranty or representation made in connection with any Loan Document
      or any borrowing hereunder; (b) the performance or observance of any of the
      covenants or agreements of any obligor under any Loan Document, including,
      without limitation, any agreement by an obligor to furnish information directly
      to each Lender; (c) the satisfaction of any condition specified in Article
      IV,
      except receipt of items required to be delivered solely to the Agent; (d) the
      existence or possible existence of any Default or Unmatured Default; (e) the
      validity, enforceability, effectiveness, sufficiency or genuineness of any
      Loan
      Document or any other instrument or writing furnished in connection therewith;
      (f) the value, sufficiency, creation, perfection or priority of any Lien in
      any
      collateral security; or (g) the financial condition of the Borrower or any
      Guarantor of any of the Obligations or of any of the Borrower's or any such
      Guarantor's respective Subsidiaries. The Agent shall have no duty to disclose
      to
      the Lenders information that is not required to be furnished by the Borrower
      to
      the Agent at such time, but is voluntarily furnished by the Borrower to the
      Agent (either in its capacity as Agent, or as Collateral Agent, or in its
      individual capacity).

    

    10.5 Action
      on Instructions of Lenders.
      The
      Agent shall in all cases be fully protected in acting, or in refraining from
      acting, hereunder and under any other Loan Document in accordance with written
      instructions signed by the Required Lenders, and such instructions and any
      action taken or failure to act pursuant thereto shall be binding on all of
      the
      Lenders. The Lenders hereby acknowledge that the Agent shall be under no duty
      to
      take any discretionary action permitted to be taken by it pursuant to the
      provisions of this Agreement or any other Loan Document unless it shall be
      requested in writing to do so by the Required Lenders. The Agent shall be fully
      justified in failing or refusing to take any action hereunder and under any
      other Loan Document unless it shall first be indemnified to its satisfaction
      by
      the Lenders pro rata against any and all liability, cost and expense that it
      may
      incur by reason of taking or continuing to take any such action.

    

    10.6 Employment
      of Agents and Counsel.
      The
      Agent may execute any of its duties as Agent hereunder and under any other
      Loan
      Document by or through employees, agents, and attorneys-in-fact and shall not
      be
      answerable to the Lenders, except as to money or securities received by it
      or
      its authorized agents, for the default or misconduct of any such agents or
      attorneys-in-fact selected by it with reasonable care. The Agent shall be
      entitled to advice of counsel concerning the contractual arrangement between
      the
      Agent and the Lenders and all matters pertaining to the Agent's duties hereunder
      and under any other Loan Document.

    

    10.7 Reliance
      on Documents; Counsel.
      The
      Agent shall be entitled to rely upon any Note, notice, consent, certificate,
      affidavit, letter, telegram, statement, paper or document believed by it to
      be
      genuine and correct and to have been signed or sent by the proper person or
      persons, and, in respect to legal matters, upon the opinion of counsel selected
      by the Agent, which counsel may be employees of the Agent.

    

    10.8 Agent's
      Reimbursement and Indemnification.
      The
      Lenders agree to reimburse and indemnify the Agent ratably in proportion to
      their respective Commitments (or, if the Commitments have been terminated,
      in
      proportion to their Commitments immediately prior to such termination) (i)
      for
      any amounts not reimbursed by the Borrower for which the Agent is entitled
      to
      reimbursement by the Borrower under the Loan Documents, (ii) for any other
      expenses incurred by the Agent on behalf of the Lenders, in connection with
      the
      preparation, execution, delivery, administration and enforcement of the Loan
      Documents (including, without limitation, for any expenses incurred by the
      Agent
      in connection with any dispute between the Agent and any Lender or between
      two
      or more of the Lenders) and (iii) for any liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind and nature whatsoever which may be imposed on, incurred by or
      asserted against the Agent in any way relating to or arising out of the Loan
      Documents or any other document delivered in connection therewith or the
      transactions contemplated thereby (including, without limitation, for any such
      amounts incurred by or asserted against the Agent in connection with any dispute
      between the Agent and any Lender or between two or more of the Lenders), or
      the
      enforcement of any of the terms of the Loan Documents or of any such other
      documents, provided
      that (i)
      no Lender shall be liable for any of the foregoing to the extent any of the
      foregoing is found in a final non-appealable judgment by a court of competent
      jurisdiction to have resulted from the gross negligence or willful misconduct
      of
      the Agent and (ii) any indemnification required pursuant to Section 3.5(vii)
      shall, notwithstanding the provisions of this Section 10.8, be paid by the
      relevant Lender in accordance with the provisions thereof. The obligations
      of
      the Lenders under this Section 10.8 shall survive payment of the Obligations
      and
      termination of this Agreement.

    

    10.9 Notice
      of Default.
      The
      Agent shall not be deemed to have knowledge or notice of the occurrence of
      any
      Default or Unmatured Default hereunder unless the Agent has received written
      notice from a Lender or the Borrower referring to this Agreement describing
      such
      Default or Unmatured Default and stating that such notice is a "notice of
      default". In the event that the Agent receives such a notice, the Agent shall
      give prompt notice thereof to the Lenders.

    

    10.10 Rights
      as a Lender.
      In the
      event the Agent is a Lender, the Agent shall have the same rights and powers
      hereunder and under any other Loan Document with respect to its Commitment
      and
      its Loans as any Lender and may exercise the same as though it were not the
      Agent, and the term "Lender" or "Lenders" shall, at any time when the Agent
      is a
      Lender, unless the context otherwise indicates, include the Agent in its
      individual capacity. The Agent and its Affiliates may accept deposits from,
      lend
      money to, and generally engage in any kind of trust, debt, equity or other
      transaction, in addition to those contemplated by this Agreement or any other
      Loan Document, with the Borrower or any of its Subsidiaries in which the
      Borrower or such Subsidiary is not restricted hereby from engaging with any
      other Person. The Agent, in its individual capacity, is not obligated to be
      remain a Lender.

    

    10.11 Lender
      Credit Decision.
      Each
      Lender acknowledges that it has, independently and without reliance upon the
      Agent, the Arranger or any other Lender and based on the financial statements
      prepared by the Borrower and such other documents and information as it has
      deemed appropriate, made its own credit analysis and decision to enter into
      this
      Agreement and the other Loan Documents. Each Lender also acknowledges that
      it
      will, independently and without reliance upon the Agent, the Arranger or any
      other Lender and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own credit decisions in taking
      or
      not taking action under this Agreement and the other Loan
      Documents.

    

    10.12 Successor
      Agent.
      The
      Agent may resign at any time by giving written notice thereof to the Lenders
      and
      the Borrower, such resignation to be effective upon the appointment of a
      successor Agent or, if no successor Agent has been appointed, forty-five days
      after the retiring Agent gives notice of its intention to resign. Upon any
      such
      resignation, the Required Lenders shall have the right to appoint, on behalf
      of
      the Borrower and the Lenders, a successor Agent. If no successor Agent shall
      have been so appointed by the Required Lenders within thirty days after the
      resigning Agent's giving notice of its intention to resign, then the resigning
      Agent may appoint, on behalf of the Borrower and the Lenders, a successor Agent.
      Notwithstanding the previous sentence, the Agent may at any time without the
      consent of the Borrower or any Lender, appoint any of its Affiliates which
      is a
      commercial bank as a successor Agent hereunder. If the Agent has resigned and
      no
      successor Agent has been appointed, the Lenders may perform all the duties
      of
      the Agent hereunder and the Borrower shall make all payments in respect of
      the
      Obligations to the applicable Lender and for all other purposes shall deal
      directly with the Lenders. No successor Agent shall be deemed to be appointed
      hereunder until such successor Agent has accepted the appointment. Any such
      successor Agent shall be a commercial bank having capital and retained earnings
      of at least $100,000,000. Upon the acceptance of any appointment as Agent
      hereunder by a successor Agent, such successor Agent shall thereupon succeed
      to
      and become vested with all the rights, powers, privileges and duties of the
      resigning Agent. Upon the effectiveness of the resignation of the Agent, the
      resigning Agent shall be discharged from its duties and obligations hereunder
      and under the Loan Documents. After the effectiveness of the resignation of
      an
      Agent, the provisions of this Article X shall continue in effect for the benefit
      of such Agent in respect of any actions taken or omitted to be taken by it
      while
      it was acting as the Agent hereunder and under the other Loan Documents. In
      the
      event that there is a successor to the Agent by merger, or the Agent assigns
      its
      duties and obligations to an Affiliate pursuant to this Section 10.12, then
      the
      term "Prime Rate" as used in this Agreement shall mean the prime rate, base
      rate
      or other analogous rate of the new Agent.

    

    10.13 Agent
      and Arranger Fees.
      The
      Borrower agrees to pay to the Agent and the Arranger, for their respective
      accounts, the fees agreed to by the Borrower, the Agent and the Arranger
      pursuant to that certain letter agreement dated August 26, 2005, or as otherwise
      agreed from time to time. 

    

    10.14 Delegation
      to Affiliates.
      The
      Borrower and the Lenders agree that the Agent may delegate any of its duties
      under this Agreement to any of its Affiliates. Any such Affiliate (and such
      Affiliate's directors, officers, agents and employees) which performs duties
      in
      connection with this Agreement shall be entitled to the same benefits of the
      indemnification, waiver and other protective provisions to which the Agent
      is
      entitled under Articles IX and X.

    

    10.15 Execution
      of Collateral Documents.
      The
      Lenders hereby empower and authorize the Agent to cause the Collateral Agent,
      to
      execute and deliver to the Borrower on their behalf the Security Agreement(s)
      and all related financing statements and any financing statements, agreements,
      documents or instruments as shall be necessary or appropriate to effect the
      purposes of the Security Agreement(s).

    

    10.16 Collateral
      Releases.
      The
      Lenders acknowledge that the Collateral Agent is authorized to execute and
      deliver to the Borrower on their behalf any agreements, documents or instruments
      as shall be necessary or appropriate to effect any releases of Collateral which
      shall be permitted by the terms of this Agreement (including, for example,
      lease, sale or other disposition of Property permitted in Section 6.12) or
      of
      any other Loan Document or which shall otherwise have been approved by the
      Required Lenders (or, if required by the terms of Section 8.2, all of the
      Lenders) in writing, without further authorization or consent from the Lenders;
      and without limiting any other consents or authorizations provided by the
      Lenders, the Lenders hereby consent to the Collateral Agent having and
      exercising that authority.

    

    10.17 Co-Agents,
      Documentation Agent, Syndication Agent, etc.
      Neither
      any of the Lenders identified in this Agreement as a "co-agent" nor the
      Documentation Agent or the Syndication Agent shall have any right, power,
      obligation, liability, responsibility or duty under this Agreement other than
      those applicable to all Lenders as such. Without limiting the foregoing, none
      of
      such Lenders shall have or be deemed to have a fiduciary relationship with
      any
      Lender. Each Lender hereby makes the same acknowledgments with respect to such
      Lenders as it makes with respect to the Agent in Section 10.11.

    

    

    ARTICLE
      XI

    

    SETOFF;
      RATABLE PAYMENTS

    

    

    11.1 Setoff.
      In
      addition to, and without limitation of, any rights of the Lenders under
      applicable law, if the Borrower becomes insolvent, however evidenced, or any
      Default occurs, any and all deposits (including all account balances, whether
      provisional or final and whether or not collected or available, but not
      including funds held by a Loan Party which are held by that Loan Party only
      as
      custodian or trustee (and in which that Loan Party does not have a beneficial
      interest) such as, (by way of example and not limitation), Horseman’s Accounts,
      and which are clearly labeled to indicate that such funds are so held by the
      Loan Party) and any other Indebtedness at any time held or owing by any Lender
      or any Affiliate of any Lender to or for the credit or account of the Borrower
      may be offset and applied toward the payment of the Obligations owing to such
      Lender, whether or not the Obligations, or any part thereof, shall then be
      due.

    

    11.2. Ratable
      Payments.
      If any
      Lender, whether by setoff or otherwise, has payment made to it upon its
      Outstanding Credit Exposure (other than payments received pursuant to Section
      3.1, 3.2, 3.4 or 3.5) in a greater proportion than that received by any other
      Lender, such Lender agrees, promptly upon demand, to purchase a portion of
      the
      Aggregate Outstanding Credit Exposure held by the other Lenders so that after
      such purchase each Lender will hold its Pro Rata Share of the Aggregate
      Outstanding Credit Exposure. If any Lender, whether in connection with setoff
      or
      amounts which might be subject to setoff or otherwise, receives collateral
      or
      other protection for its Obligations or such amounts which may be subject to
      setoff, such Lender agrees, promptly upon demand, to take such action necessary
      such that all Lenders share in the benefits of such collateral ratably in
      proportion to their respective Pro Rata Shares of the Aggregate Outstanding
      Credit Exposure. In case any such payment is disturbed by legal process, or
      otherwise, appropriate further adjustments shall be made.

    

    

    ARTICLE
      XII

    

    BENEFIT
      OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

    

     

    12.1 Successors
      and Assigns.
      The
      terms and provisions of the Loan Documents shall be binding upon and inure
      to
      the benefit of the Borrower, each other Loan Party and the Lenders and their
      respective successors and assigns permitted hereby, except that (i) the Borrower
      shall not have the right to assign its rights or obligations under the Loan
      Documents without the prior written consent of each Lender, (ii) any assignment
      by any Lender must be made in compliance with Section 12.3, and (iii) any
      transfer by Participation must be made in compliance with Section 12.2. Any
      attempted assignment or transfer by any party not made in compliance with this
      Section 12.1 shall be null and void, unless such attempted assignment or
      transfer is treated as a participation in accordance with Section 12.3.3. The
      parties to this Agreement acknowledge that clause (ii) of this Section 12.1
      relates only to absolute assignments and this Section 12.1 does not prohibit
      assignments creating security interests, including, without limitation, (x)
      any
      pledge or assignment by any Lender of all or any portion of its rights under
      this Agreement and any Note to a Federal Reserve Bank or (y) in the case of
      a
      Lender which is a Fund, any pledge or assignment of all or any portion of its
      rights under this Agreement and any Note to its trustee in support of its
      obligations to its trustee; provided,
      however, that
      no
      such pledge or assignment creating a security interest shall release the
      transferor Lender from its obligations hereunder unless and until the parties
      thereto have complied with the provisions of Section 12.3. The Agent may treat
      the Person which made any Loan or which holds any Note as the owner thereof
      for
      all purposes hereof unless and until such Person complies with Section 12.3;
      provided,
      however,
      that the
      Agent may in its discretion (but shall not be required to) follow instructions
      from the Person which made any Loan or which holds any Note to direct payments
      relating to such Loan or Note to another Person. Any assignee of the rights
      to
      any Loan or any Note agrees by acceptance of such assignment to be bound by
      all
      the terms and provisions of the Loan Documents. Any request, authority or
      consent of any Person, who at the time of making such request or giving such
      authority or consent is the owner of the rights to any Loan (whether or not
      a
      Note has been issued in evidence thereof), shall be conclusive and binding
      on
      any subsequent holder or assignee of the rights to such Loan.

    

    12.2 Participations.

    

    12.2.1 Permitted
      Participants; Effect.
      Any
      Lender may at any time sell to one or more banks or other entities
      ("Participants") participating interests in any Outstanding Credit Exposure
      of
      such Lender, any Note held by such Lender, any Commitment of such Lender or
      any
      other interest of such Lender under the Loan Documents. In the event of any
      such
      sale by a Lender of participating interests to a Participant, such Lender's
      obligations under the Loan Documents shall remain unchanged, such Lender shall
      remain solely responsible to the other parties hereto for the performance of
      such obligations, such Lender shall remain the owner of its Outstanding Credit
      Exposure and the holder of any Note issued to it in evidence thereof for all
      purposes under the Loan Documents, all amounts payable by the Borrower under
      this Agreement shall be determined as if such Lender had not sold such
      participating interests, and the Borrower, the Agent and the Collateral Agent
      shall continue to deal solely and directly with such Lender in connection with
      such Lender's rights and obligations under the Loan Documents.

    

    12.2.2 Voting
      Rights.
      Each
      Lender shall retain the sole right to approve, without the consent of any
      Participant, any amendment, modification or waiver of any provision of the
      Loan
      Documents other than any amendment, modification or waiver with respect to
      any
      Credit Extension or Commitment in which such Participant has an interest which
      would require consent of all of the Lenders pursuant to the terms of Section
      8.2
      or of any other Loan Document.

    

    12.2.3 Benefit
      of Certain Provisions.
      The
      Borrower agrees that each Participant shall be deemed to have the right of
      setoff provided in Section 11.1 in respect of its participating interest in
      amounts owing under the Loan Documents to the same extent as if the amount
      of
      its participating interest were owing directly to it as a Lender under the
      Loan
      Documents, provided
      that
      each Lender shall retain the right of setoff provided in Section 11.1 with
      respect to the amount of participating interests sold to each Participant.
      The
      Lenders agree to share with each Participant, and each Participant, by
      exercising the right of setoff provided in Section 11.1, agrees to share with
      each Lender, any amount received pursuant to the exercise of its right of
      setoff, such amounts to be shared in accordance with Section 11.2 as if each
      Participant were a Lender. The Borrower further agrees that each Participant
      shall be entitled to the benefits of and bound by the provisions of Section
      2.21
      and Sections 3.1, 3.2, 3.4 and 3.5 to the same extent as if it were a Lender
      and
      had acquired its interest by assignment pursuant to Section 12.3, provided
      that (i)
      a Participant shall not be entitled to receive any greater payment under Section
      3.1, 3.2 or 3.5 than the Lender who sold the participating interest to such
      Participant would have received had it retained such interest for its own
      account, unless the sale of such interest to such Participant is made with
      the
      prior written consent of the Borrower, and (ii) any Participant not incorporated
      under the laws of the United States of America or any State thereof agrees
      to
      comply with the provisions of Section 3.5 to the same extent as if it were
      a
      Lender.

     

    
    

    12.3 Assignments.

    

    12.3.1 Permitted
      Assignments.
      Any
      Lender may at any time assign to one or more banks or other entities
      ("Purchasers") all or any part of its rights and obligations under the Loan
      Documents. Such assignment shall be substantially in the form of Exhibit
      C
      or in
      such other form as may be agreed to by the parties thereto. Each such assignment
      with respect to a Purchaser which is not a Lender or an Affiliate of a Lender
      or
      an Approved Fund shall either be in an amount equal to the entire applicable
      Commitment and Loans of the assigning Lender or (unless each of the Borrower
      and
      the Agent otherwise consents) be in an aggregate amount not less than
      $5,000,000. The amount of the assignment shall be based on the Commitment or
      outstanding Loans (if the Commitment has been terminated) subject to the
      assignment, determined as of the date of such assignment or as of the "Trade
      Date," if the "Trade Date" is specified in the assignment.

    

          12.3.2 Consents.
      The
      consent of the Borrower shall be required prior to an assignment becoming
      effective unless the Purchaser is a Lender, an Affiliate of a Lender or an
      Approved Fund, provided
      that the
      consent of the Borrower shall not be required if a Default has occurred and
      is
      continuing. The consent of the Agent shall be required for each assignment.
      Any
      consent required under this Section 12.3.2 shall not be unreasonably withheld
      or
      delayed.

    

    12.3.3 Effect;
      Effective Date.
      Upon
      (i) delivery to the Agent of an assignment, together with any consents required
      by Sections 12.3.1 and 12.3.2, and (ii) payment of a $3,500 fee to the Agent
      (payable by a party other than a Loan Party) for processing such assignment
      (unless such fee is waived by the Agent), such assignment shall become effective
      on the effective date specified in such assignment. The assignment shall contain
      a representation by the Purchaser to the effect that none of the consideration
      used to make the purchase of the Commitment and Outstanding Credit Exposure
      under the applicable assignment agreement constitutes "plan assets" as defined
      under ERISA and that the rights and interests of the Purchaser in and under
      the
      Loan Documents will not be "plan assets" under ERISA. On and after the effective
      date of such assignment, such Purchaser shall for all purposes be a Lender
      party
      to this Agreement and any other Loan Document executed by or on behalf of the
      Lenders and shall have all the rights and obligations of a Lender under the
      Loan
      Documents, to the same extent as if it were an original party thereto, and
      the
      transferor Lender shall be released with respect to the Commitment and
      Outstanding Credit Exposure assigned to such Purchaser without any further
      consent or action by the Borrower, the Lenders or the Agent. In the case of
      an
      assignment covering all of the assigning Lender's rights and obligations under
      this Agreement, such Lender shall cease to be a Lender hereunder but shall
      continue to be entitled to the benefits of, and subject to, those provisions
      of
      this Agreement and the other Loan Documents which survive payment of the
      Obligations and termination of the applicable agreement. Any assignment or
      transfer by a Lender of rights or obligations under this Agreement that does
      not
      comply with this Section 12.3 shall be treated for purposes of this Agreement
      as
      a sale by such Lender of a participation in such rights and obligations in
      accordance with Section 12.2. Upon the consummation of any assignment to a
      Purchaser pursuant to this Section 12.3.3, the transferor Lender, the Agent
      and
      the Borrower shall, if the transferor Lender or the Purchaser desires that
      its
      Loans be evidenced by Notes, make appropriate arrangements so that new Notes
      or,
      as appropriate, replacement Notes are issued to such transferor Lender and
      new
      Notes or, as appropriate, replacement Notes, are issued to such Purchaser,
      in
      each case in principal amounts reflecting their respective Commitments, as
      adjusted pursuant to such assignment.

    

          12.3.4 Register.
      The
      Agent, acting solely for this purpose as an agent of the Borrower, shall
      maintain at one of its offices in Louisville, Kentucky a copy of each Assignment
      and Assumption delivered to it and a register for the recordation of the names
      and addresses of the Lenders, and the Commitments of, and principal amounts
      of
      the Loans owing to, each Lender pursuant to the terms hereof from time to time
      (the "Register"). The entries in the Register shall be conclusive, and the
      Borrower, the Agent and the Lenders may treat each Person whose name is recorded
      in the Register pursuant to the terms hereof as a Lender hereunder for all
      purposes of this Agreement, notwithstanding notice to the contrary. The Register
      shall be available for inspection by the Borrower and any Lender, at any
      reasonable time and from time to time upon reasonable prior notice.

    

    12.4 Dissemination
      of Information.
      The
      Borrower authorizes each Lender to disclose to any Participant or Purchaser
      or
      any other Person acquiring an interest in the Loan Documents by operation of
      law
      (each a "Transferee") and any prospective Transferee any and all information
      in
      such Lender's possession concerning the creditworthiness of the Borrower and
      its
      Subsidiaries, including without limitation any information contained in any
      Reports; provided
      that
      each Transferee and prospective Transferee agrees to be bound by Section 9.11
      of
      this Agreement. 

    

    12.5 Tax
      Treatment.
      If any
      interest in any Loan Document is transferred to any Transferee which is not
      incorporated under the laws of the United States or any State thereof, the
      transferor Lender shall cause such Transferee, concurrently with the
      effectiveness of such transfer, to comply with the provisions of Section
      3.5(iv).

    

    

    ARTICLE
      XIII

    

    NOTICES

    

    

    13.1 Notices.
      Except
      as otherwise permitted by Section 2.10 with respect to borrowing notices, all
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including electronic transmission, facsimile transmission or similar
      writing) and shall be given to such party: (x) in the case of the Borrower,
      any
      other Loan Party, or the Agent, at the address of Borrower or facsimile number
      of Borrower set forth on the signature pages hereof, (y) in the case of any
      Lender, at its address or facsimile number set forth below its signature hereto,
      or (z) in the case of any party, at such other address or facsimile number
      as
      such party may hereafter specify for the purpose by notice to the Agent and
      the
      Borrower in accordance with the provisions of this Section 13.1. Each such
      notice, request or other communication shall be effective (i) if given by
      facsimile transmission, when transmitted to the facsimile number specified
      in
      this Section and confirmation of receipt is received, (ii) if given by mail,
      72
      hours after such communication is deposited in the mails with first class
      postage prepaid, addressed as aforesaid, or (iii) if given by any other means,
      when delivered (or, in the case of electronic transmission, received) at the
      address specified in this Section; provided
      that
      notices to the Agent under Article II shall not be effective until
      received.

    

    13.2 Change
      of Address.
      The
      Borrower, any other Loan Party, the Agent and any Lender may each change the
      address for service of notice upon it by a notice in writing to the other
      parties hereto.

    

    

    ARTICLE
      XIV

    

    COUNTERPARTS;
      INTEGRATION; EFFECTIVENESS 

    

     

    This
      Agreement may be executed in counterparts (and by different parties hereto
      in
      different counterparts), each of which shall constitute an original, but all
      of
      which when taken together shall constitute a single contract. Except as provided
      in Article IV, this Agreement shall become effective when it shall have been
      executed by the Borrower, the Agent, the Collateral Agent, the LC Issuer, the
      Lenders and the Departing Lenders and when the Agent shall have received
      counterparts hereof which, when taken together, bear the signatures of each
      of
      such parties hereto, and thereafter shall be binding upon and inure to the
      benefit of the parties hereto and their respective successors and assigns.
      Delivery of an executed counterpart of a signature page of this Agreement by
      telecopy shall be effective as delivery of a manually executed counterpart
      of
      this Agreement.

     

    

    

    ARTICLE
      XV

    

    CHOICE
      OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

    

    

    15.1 CHOICE
      OF LAW.
      THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF
      LAW
      PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT
      REGARD TO THE CONFLICT OF LAWS PROVISIONS) OF THE COMMONWEALTH OF KENTUCKY,
      BUT
      GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL
      BANKS.

    

    15.2 CONSENT
      TO JURISDICTION.
      THE BORROWER HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF
      ANY
      UNITED STATES FEDERAL OR COMMONWEALTH OF KENTUCKY COURT SITTING IN LOUISVILLE,
      KENTUCKY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN
      DOCUMENTS AND THE BORROWER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
      OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT
      AND
      IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE
      OF
      ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT
      IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT,
      THE
      COLLATERAL AGENT, THE LC ISSUER OR ANY LENDER TO BRING PROCEEDINGS AGAINST
      THE
      BORROWER IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY
      THE
      BORROWER AGAINST THE AGENT, THE LC ISSUER OR ANY LENDER OR ANY AFFILIATE OF
      THE
      AGENT, THE LC ISSUER OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
      IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT
      SHALL
      BE BROUGHT ONLY IN A COURT IN LOUISVILLE, KENTUCKY.

    

    15.3 WAIVER
      OF JURY TRIAL.
      THE BORROWER, THE AGENT, THE LC ISSUER AND EACH LENDER HEREBY WAIVE TRIAL BY
      JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
      (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,
      RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
      THEREUNDER.

    

    

    [THE
      BALANCE OF THIS PAGE IS BLANK

    AND
      SIGNATURES BEGIN ON THE FOLLOWING PAGE.]

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    

    IN
      WITNESS WHEREOF, the Borrower, the Guarantors, the Lenders, the Departing
      Lenders, the LC Issuer, the Collateral Agent and the Agent have executed this
      Agreement as of the date first above written.

    

    

    
      	 	
              CHURCHILL
                DOWNS INCORPORATED

            
	 	 
	 	 
	 	
              By  
                /s/Michael E. Miller

            
	 	        
              Michael E.
              Miller
	 	
              Title   
                Executive Vice President & CFO

            
	 	
                         
                700 Central Avenue

                  Louisville,
                Kentucky 40208

              Attention:
                General Counsel 

                  Telephone:
                (502) 636-4501

                  FAX:
                (502) 636-4439

            
	 	 

    

    

    

    
      	 	
              GUARANTORS:

            

    

    

    
      	 	
              CHURCHILL
                DOWNS MANAGEMENT COMPANY 

            
	 	 
	 	
              By    /s/
                Michael W. Anderson

            
	 	     Michael
              W.
              Anderson
	 	
              Title:   Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              CHURCHILL
                DOWNS INVESTMENT COMPANY 

            
	 	 
	 	
              By     /s/Michael
                W. Anderson

            
	 	     Michael
              W.
              Anderson
	 	
              Title:     
                Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              CHURCHILL
                DOWNS SIMULCAST PRODUCTIONS, LLC

            
	 	 
	 	
              By     /s/
                Michael W. Anderson

            
	 	     Michael
              W.
              Anderson
	 	
              Title:     
                Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              CHARLSON
                INDUSTRIES, INC.

            
	 	 
	 	
              By    /s/
                Michael W. Anderson

            
	 	     Michael
              W.
              Anderson
	 	
              Title:  Treasurer

            
	 	
                   700
                Central
                Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    
      	 	
              RACING
                CORPORATION OF AMERICA

            
	 	 
	 	
              By    /s/
                Michael W. Anderson

            
	 	     
              Michael W.
              Anderson
	 	
              Title:  Treasurer

            
	 	
                 700
                Central
                Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    
      	 	
              CALDER
                RACE COURSE, INC.

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:     
                Vice President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              TROPICAL
                PARK, INC.

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:   Vice
                President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              ARLINGTON
                PARK RACECOURSE, LLC

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:  Vice
                President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              ARLINGTON
                MANAGEMENT SERVICES, LLC

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:   Vice
                President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              ARLINGTON
                OTB CORP.

            
	 	 
	 	
              By    /s/
                Debra A. Wood

            
	 	     Debra
              A.
              Wood
	 	
              Title:   Secretary

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              QUAD
                CITY DOWNS, INC.

            
	 	 
	 	
              By    /s/
                Debra A. Wood

            
	 	     Debra
              A.
              Wood
	 	
              Title:  Secretary

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              CDIP,
                LLC

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:   Vice
                President

            
	 	
                  700
                Central Avenue

            
	     	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              CDIP
                HOLDINGS, LLC

            
	 	 
	 	
              By   /s/
                Michael E.
                Miller

            
	 	     
              Michael E.
              Miller
	 	
              Title:   Vice
                President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              ELLIS
                PARK RACE COURSE, INC.

            
	 	 
	 	
              By   /s/
                Michael E.
                Miller

            
	 	   
Michael
              E. Miller
	 	
              Title:
                 Vice
                President

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              CHURCHILL
                DOWNS LOUISIANA HORSERACING COMPANY, L.L.C.

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	     Michael
              E.
              Miller
	 	
              Title:   Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              CHURCHILL
                DOWNS LOUISIANA VIDEO POKER COMPANY, L.L.C.

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	    Michael
              E. Miller
	 	
              Title:    Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    
      	 	
              VIDEO
                SERVICES, INC.

            
	 	 
	 	
              By    /s/
                Michael E. Miller

            
	 	    Michael
              E. Miller
	 	
              Title:    Treasurer

            
	 	
                  700
                Central Avenue

            
	 	
                  Louisville,
                Kentucky 40208

            
	 	
              Attention:
                General Counsel 

            
	 	
                  Telephone:
                (502) 636-4501

            
	 	
                  FAX:
                (502) 636-4439

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    Commitment

    

    
      	
              $30,000,000

            	
              JPMORGAN
                CHASE BANK, N.A. (successor by merger to Bank One,
                NA),

            
	 	
              Individually,
                as a Lender and as Agent

            
	 	 
	 	
              By    /s/
                H. Joseph
                Brenner

            
	 	
                  H.
                Joseph Brenner

            
	 	
                  First
                Vice President

            
	 	
                  416
                W.
                Jefferson Street

            
	 	
                  Louisville,
                Kentucky 40202

            
	 	
              Attention:
                H. Joseph Brenner

            
	 	
                  Telephone:     (502)
                566-2789

            
	 	
                  FAX:         (502)
                566-8339

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              JPMORGAN
                CHASE BANK, N.A. (successor by merger to Bank One,
                NA),

            
	 	
              as
                Collateral Agent

            
	 	 
	 	
              By   /s/
                H. Joseph
                Brenner

            
	 	
                  H.
                Joseph Brenner

            
	 	
                  First
                Vice President

            
	 	
                  416
                W.
                Jefferson Street

            
	 	
                  Louisville,
                Kentucky 40202

            
	 	
              Attention:
                H. Joseph Brenner

            
	 	
                  Telephone:     (502)
                566-2789

            
	 	
                  FAX:        (502)
                566-8339

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Commitment

    

    
      	
              $30,000,000

            	
              PNC
                BANK, NATIONAL ASSOCIATION

            
	 	
              As
                a Lender, as LC Issuer and as Syndication Agent

            
	 	 
	 	
              By   /s/
                Richard M.
                Ellis

            
	 	
                  Richard
                M. Ellis

            
	 	
                  Senior
                Vice President

            
	 	
                  500
                West Jefferson Street, 2nd
                Floor

            
	 	
                  Louisville,
                Kentucky 40296

            
	 	
              Attention:
                Shelly Stephenson, Vice President

            
	 	
                  Telephone:    (502)
                581-4522

            
	 	
                  FAX:        (502)
                581-3355

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Commitment

    

    
      	
              $25,000,000

            	
              NATIONAL
                CITY BANK OF KENTUCKY

            
	 	
              As
                a Lender and as Documentation Agent

            
	 	 
	 	
              By   /s/
                Rob
                King

            
	 	
                  Rob
                King

            
	 	
                  Senior
                Vice President

            
	 	
                  101
                South Fifth Street, 37th
                Floor

            
	 	
                  Louisville,
                Kentucky 40202

            
	 	
              Attention:
                Rob King

            
	 	
                  Telephone:     (502)
                581-4024

            
	 	
                  FAX:         (502)
                581-6454

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    Commitment

    

    
      	
              $22,500,000

            	
              FIFTH
                THIRD BANK, KENTUCKY, INC.

            
	 	 
	 	
              By   /s/
                Jeffery G.
                Goodwin

            
	 	
                  Jeffery
                G. Goodwin

            
	 	
                  Vice
                President

            
	 	
                  401
                South 4th
                Avenue

            
	 	
                  Louisville,
                Kentucky 40202-3411

            
	 	
              Attention:
                Jeffery G. Goodwin

            
	 	
                  Telephone:     (502)
                562-8228

            
	 	
                  FAX:         (502)
                562-5540

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    

    Commitment

    

    
      	
              $18,500,000

            	
              BRANCH
                BANKING & TRUST COMPANY

            
	 	 
	 	
              By   /s/
                Johnny L.
                Perry

            
	 	
                  Johnny
                L. Perry

            
	 	
                  Senior
                Vice President

            
	 	
                  P.O.
                Box 1101

            
	 	
                  Louisville,
                Kentucky 40201

            
	 	
              Attention:
                Johnny L. Perry

            
	 	
                  Telephone:  (502)
                562-5877

            
	 	
                  FAX:  (502)
                562-6990

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Commitment

    

    
      	
              $18,500,000

            	
              COMERICA
                BANK

            
	 	 
	 	
              By   /s/
                Heather A.
                Whiting

            
	 	
                  Heather
                A. Whiting

            
	 	
                  Account
                Officer

            
	 	
                  500
                Woodward Avenue

            
	 	
                  MC
                3269
                - 9th
                Floor

            
	 	
                  Detroit,
                Michigan 48214

            
	 	
              Attention:
                Heather A. Whiting

            
	 	
                  Telephone:    (313)
                222-7046

            
	 	
                  FAX:      
(313)
                222-9516

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Commitment

    

    
      	
              $18,500,000

            	
              U.S.
                BANK NATIONAL ASSOCIATION

            
	 	 
	 	
              By   /s/
                David
                Wombwell

            
	 	
                  David
                Wombwell

            
	 	
                  Senior
                Vice President

            
	 	
                  One
                Financial Square

            
	 	
                  Louisville,
                Kentucky 40202-3322

            
	 	
              Attention:
                David Wombwell

            
	 	
                  Telephone:    (502)
                565-6685

            
	 	
                  FAX:      
 (502)
                565-6460

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    Commitment

    

    
      	
              $18,500,000

            	
              SUN
                TRUST BANK

            
	 	 
	 	
              By   /s/
                Anson
                Lewis

            
	 	
                  Anson
                Lewis

            
	 	
                  Vice
                President

            
	 	
                  201
                4th
                Avenue N., 3rd
                Floor

            
	 	
                  Nashville,
                Tennessee 37219

            
	 	
              Attention:
                Anson Lewis

            
	 	
                  Telephone:    (615)
                748-4108

            
	 	
                  FAX:      
 (615)
                748-5269

            

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Commitment

    

    
      	
              $18,500,000

            	
              BANK
                OF AMERICA

            
	 	 
	 	
              By   /s/
                Brian
                Sallee

            
	 	
                  Brian
                Sallee

            
	 	
                  Vice
                President

            
	 	
                  414
                Union Street

            
	 	
                  TN1-100-04-04

            
	 	
                  Nashville,
                Tennessee 37239

            
	 	
              Attention:
                Brian Sallee

            
	 	
                  Telephone:    (615)
                749-3769

            
	 	
                  FAX:      
 (615)
                749-4762

            

    

    

    

    

    

    

    

    
      
        
          Signature
            Page to

          Amended
            and Restated Credit Agreement

          Churchill
            Downs Incorporated et
            al

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    
 

    

      Exhibits
        and schedules to Exhibit 10.1, other than the Pricing Schedule, have been
        intentionally omitted because they are not material. The registrant agrees
        to
        furnish such omitted exhibits and schedules supplementally to the Commission
        upon request.

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    
 

    

    

    PRICING
      SCHEDULE

    

    
      	
               

              Applicable
                Margin

               

            	
               

              Level
                I Status

               

            	
               

              Level
                II Status

               

            	
               

              Level
                III Status

               

            	
               

              Level
                IV Status

               

            
	
               

              Eurodollar
                Rate

               

            	
               

              .75%

               

            	
               

              1.00%

               

            	
               

              1.25%

               

            	
               

              1.50%

               

            
	
               

              Floating
                Rate

               

            	
               

              0%

               

            	
               

              0%

               

            	
               

              0%

               

            	
               

              0%

               

            

    

    

    
      	
               

              Applicable
                Fee Rate

               

            	
               

              Level
                I Status

               

            	
               

              Level
                II Status

               

            	
               

              Level
                III Status

               

            	
               

              Level
                IV Status

               

            
	
               

              Commitment
                Fee

               

            	
               

              .15%

               

            	
               

              .20%

               

            	
               

              .25%

               

            	
               

              .375%

               

            

    

    

    

    For
      the
      purposes of this Schedule, the following terms have the following meanings,
      subject to the final paragraph of this Schedule:

    

    “Financials”
      means the annual or quarterly financial statements of the Borrower delivered
      pursuant to Section 6.1(i) or (ii).

    

    “Level
      I
      Status” exists at any date if, as of the last day of the fiscal quarter of the
      Borrower referred to in the most recent Financials, the Leverage Ratio is less
      than 1.00 to 1.00.

    

    “Level
      II
      Status” exists at any date if, as of the last day of the fiscal quarter of the
      Borrower referred to in the most recent Financials, (i) the Borrower has not
      qualified for Level I Status and (ii) the Leverage Ratio is less than 2.00
      to
      1.00.

    

    “Level
      III Status” exists at any date if, as of the last day of the fiscal quarter of
      the Borrower referred to in the most recent Financials, (i) the Borrower has
      not
      qualified for Level I Status or Level II Status and (ii) the Leverage Ratio
      is
      less than 3.00 to 1.00.

    

    “Level
      IV
      Status” exists at any date if the Borrower has not qualified for Level I Status,
      Level II Status or Level III Status.

    

    “Status”
      means either Level I Status, Level II Status, Level III Status and Level IV
      Status.

    

    The
      Applicable Margin and Applicable Fee Rate shall be determined in accordance
      with
      the foregoing table based on the Borrower's Status, adjusted quarterly and
      measured on the most recent four fiscal quarters ending on the determination
      date as reflected in the then most recent Financials. Adjustments, if any,
      to
      the Applicable Margin or Applicable Fee Rate shall be effective five Business
      Days after the Agent has received the applicable Financials. If the Borrower
      fails to deliver the Financials to the Agent at the time required pursuant
      to
      Section 6.1, then the Applicable Margin and Applicable Fee Rate shall be the
      highest Applicable Margin and Applicable Fee Rate set forth in the foregoing
      table until five days after such Financials are so delivered.Letter Agreement 9-23-05

    

       

      September 23,
        2005

      

      

      Churchill
        Downs California Company

      c/o
        Churchill Downs Incorporated

      700
        Central Avenue

      Louisville,
        KY 40208

      Attn:
        Rebecca C. Reed

       

      Re Final
        Modifications to Asset Purchase Agreement 

       

      Ladies
        and Gentlemen:

       

      Reference
        is made to that certain Asset Purchase Agreement dated as of July 6,
        2005,
        as modified by those certain letter agreements dated August 1, 2005,
        August 8, 2005, August 12, 2005 and September 7, 2005 (as so
        amended
        and assigned and as in effect on the date hereof, the "APA"),
        between Hollywood Park Land Company, LLC ("Buyer")
        and
        Churchill Downs California Company ("Seller").
        Capitalized terms not defined herein shall have the meanings ascribed thereto
        in
        the APA.

       

      Pursuant
        to Section 13.4 of the APA, Buyer and Seller agree to amend the APA
        as
        follows:

       

      Changes
        to HSR Provisions

       

      1. Deletion
        of Certain HSR Provisions:
        The
        following provisions are hereby deleted in their entirety: (i) Section 3.7.1(f),
        (ii) clause (i) of Section 4.4, (iii) Section 8.1.1 and (iv) Section
        8.2.1.

       

      2. Modification
        to Section 5.4:
        Section
        5.4 is hereby revised, in its entirety, to read as follows:

       

      "5.4 Approvals.
        Except
        as set forth in Section 5.4 of the Disclosure Schedule, no approval,
        authorization, consent or order or action of or filing with any Governmental
        Authority is required to be obtained by Buyer for the execution and delivery
        by
        Buyer of the Transaction Documents to which it is a party or the consummation
        by
        it of the Transactions. Buyer has received all required consents from its
        lender(s) necessary for Buyer to execute this Agreement and consummate the
        Transactions. To the knowledge of Buyer, there are no facts relating to the
        identity or circumstances of Buyer that would prevent or materially delay
        obtaining any of the required consents."

       

      3. Modification
        to Section 8.1.4:
        Section
        8.1.4 is hereby revised, in its entirety, to read as follows:

       

      "8.1.4 Actions
        or Proceedings.
        There
        shall not be instituted or pending any action or proceeding by any Person
        before
        any Governmental Authority, (i) seeking to restrain, prohibit or otherwise
        interfere with the ownership or operation by Buyer or any of its Affiliates
        of
        all or any material portion of the Assets or the Racetrack Business or assets
        of
        Buyer or any of its Affiliates or to compel Buyer or any of its Affiliates
        to
        dispose of all or any material portion of the Assets or of Buyer or any of
        its
        Affiliates or (ii) seeking to require divestiture by Buyer or any of its
        Affiliates of any Assets or any portion of the Racetrack Business. There
        shall
        not be any action taken, or any Laws enacted, enforced, promulgated, issued
        or
        deemed applicable to the purchase of the Assets, by any Governmental Authority,
        that, in the reasonable judgment of Buyer could, directly or indirectly,
        result
        in any of the consequences referred to in subsections (i) and (ii) of this
        Section; provided that Buyer acknowledges the application of this Section
        to
        Laws in effect as of the date hereof would not have such
        consequences."

       

      4. New
        Buyer Representation:
        A new
        Section 5.11 is hereby added to the Buyer's representations:

       

      "5.11. HSR
        Representation.
        The
        California Public Employees Retirement System ("CalPERS"),
        Buyer’s
        ultimate parent entity for purposes of the HSR Act, is a unit of the State
        and
        Consumer Services Agency of the State of California. Counsel for CalPERS
        confirmed a conversation between counsel and the Federal Trade Commission,
        Bureau of Competition, Premerger Notification Office ("PNO"),
        wherein the PNO advised counsel for CalPERS that, so long as CalPERS itself
        is
        not a separate corporation (which it is not), CalPERS is deemed an agency
        or
        political subdivision of a state government for purposes of the HSR Act and,
        as
        such, is not an "entity" so far as the HSR Act is concerned. As a result,
        CalPERS, is not a "person" required to file notification under the HSR Act.
        All
        of the entities directly or indirectly controlled by CalPERS, and which will
        directly or indirectly control the Assets upon consummation of the transaction,
        including Buyer, are unincorporated entities."

       

      Changes
        to Purchase Price

       

      5. Purchase
        Price Reduction: Section
        3.3.1(c) is hereby deleted and replaced in its entirety with the
        following:

       

      "(c)
        $2,500,000, the amount of the reduction referenced in Section 12.2.
        "

       

      Changes
        to Jensen Box Clean-up Obligations

       

      6. Changes
        to Section 3.4.10:
        Section
        3.4.10 is hereby deleted and replaced in its entirety with the
        following:

      

      "3.4.10
        Certain
        Environmental Liabilities.
        Any and
        all
        liabilities, claims, demands, losses, costs, damages, injuries, obligations,
        judgments, actions, causes of action, fines, assessments, penalties or expenses,
        including consultants’ and attorneys’ fees resulting from (a) the direct or
        indirect disposal or arrangement for the disposal of Hazardous Substances
        from
        the Real Property to, at or onto a location other than the Real Property
        from
        September 10, 1999 through the Closing Date, including without
        limitation to the Dominguez Channel Watershed/Consolidated Slip, or (b) any
        property owned, leased or operated by Seller (other than the Real
        Property).

      

      7. Changes
        to Section 3.3.2(e):
        Section
        3.3.2(e) of the APA is hereby amended by adding, at the end thereof, the
        following clause (5) (and the word "and" is moved from the end of clause
        (3) to
        the end of clause (4)):

      

      "(5)
        claims for the disposal, depositing, placing, presence, storage, dumping
        or
        other release of any material or substance in, to, at, onto, from or under
        any
        waste pits located at the northeast corner of the training track on the Real
        Property prior to or subsequent to the Closing Date including, without
        limitation, any related investigation,
        remediation, clean-up, removal, disposal, transportation of waste and closure
        activities relating
        to the contamination identified in the sampling conducted of the waste pits
        in
        July 2005."

       

      8. Deletion
        of Section 9.3.6:
        Section
9.3.6
        of
        the
        APA is hereby deleted.

       

      Changes
        to Working Capital Provisions

       

      9. Changes
        to Section 3.7.3:
        Section
        3.7.3 is hereby deleted and replaced in its entirety with the
        following:

       

      "3.7.3 Closing
        Statement.

       

      (a) At
        least
        one (1) business day prior to the Closing Date, Seller in good faith shall
        prepare and deliver to Buyer a preliminary closing statement, consistent
        with
        the provisions of Section 3.7.2 (the “Preliminary
        Closing Statement”)
        and
        otherwise consistent with this Agreement, that shows the working capital
        needs
        of the Racetrack Business (based on current assets and liabilities) (the
        “Required
        Working Capital”)
        and
        includes a statement of each component of Working Capital as of the Closing,
        giving effect to the transfer of the Assets and assumption of the Assumed
        Liabilities (the “Final
        Working Capital”)
        together with a representation that the Final Working Capital was determined
        in
        accordance with GAAP applied on a basis consistent with those used in
        preparation of the Transaction Financial Statements and Balance Sheet (except
        as
        required to comply with the definition of Working Capital). 

       

      (b) The
        Required Working Capital and Final Working Capital as agreed to by the parties
        on the Closing Date is as set forth in Exhibit
        3.7.3(b)
        (attached hereto), and there shall be no further rights of dispute or
        adjustments from the amounts so agreed to by the parties as of the Closing
        Date,
        unless arising out of any breach of a representation contained in the
        APA.

       

      At
        Closing Seller will either contribute or provide a credit in immediately
        available funds to working capital in the amounts of (a) $2,493,609.00 and
        (b)
        $100,000 for remediation costs on the waste pit, each as shown on Exhibit
        3.73(b).

       

      Changes
        to Calculation Period for Withdrawal Liability

       

      10. Modification
        to Section 11.2.3:
        The
        last sentence of 11.2.3 is hereby revised to read as follows:

       

      "The
        Withdrawal Liability Cap shall be calculated in good faith in accordance
        with
        ERISA and agreed upon by Buyer and Seller no later than June 30,
        2006."

       

      Eual
        Wyatt Retention Bonus

       

      11. Changes
        to 2.2.6:
        Section
        2.2.6 is hereby amended by adding, at the end thereof, the
        following:

       

      "Buyer
        agrees to make any retention payments payable to Eual Wyatt promptly after
        the
        Closing, provided that Seller will reimburse Buyer for the unfulfilled portion
        of Mr. Wyatt's employment agreement in the event that Mr. Wyatt terminates
        his
        employment with Buyer prior to the end of the Fall 2008 racing season.

       

      Miscellaneous

       

      12. Confirmation
        of APA:
        Except
        as expressly provided above, the APA is hereby ratified and confirmed and
        shall
        remain in full force and effect and nothing contained in this letter agreement
        shall be deemed to waive, alter or otherwise amend any provision of the APA
        (other than to the extent expressly provided herein).

       

      13. Merger:
        This
        letter agreement and the APA constitute the entire agreement between the
        parties
        with respect to the subject matter of this letter agreement and supersedes
        all
        prior agreements and understandings, both oral and written, between the parties
        with respect to the subject matter of this letter agreement.

       

      12. Governing
        Law:
        This
        letter agreement shall be governed by and construed in accordance with the
        law
        of the State of California.

       

      13. Execution
        by Counteparts.
        This
        letter agreement may be executed in two or more counterparts, each of which
        shall be an original, but all of which shall constitute one and the same
        letter
        of instructions.

       

       

      [Signatures
        Follow on Next Page]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      

      
        	 	
                HOLLYWOOD
                  PARK LAND COMPANY, LLC,

              
	 	
                a
                  Delaware limited liability company

              
	 	 
	 	 
	 	
                By:     /s/Kristin
                  Gardner

              
	 	
                  Name:
                  Kristin
                  Gardner

              
	 	
                  Title:
                  Vice
                  President

              

      

      

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                CHURCHILL
                  DOWNS CALIFORNIA COMPANY, 

              	 
	
                a
                  Kentucky corporation

              	 
	 	 
	 	 
	
                By:     /s/
                  Michael E. Miller

              	 
	
                  Name:
                  Michael E.
                  Miller

              	 
	
                  Title:
                  Vice
                  President

              	 

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                cc:

              	
                Darren
                  Drake

              

      

      Stockbridge
        Capital Partners, LLC

      712
        5th
        Avenue, 21st Floor

      New
        York,
        NY 10019

      

      Thomas
        Patrick Dore, Jr., Esq.

      Davis
        Polk & Wardwell

      450
        Lexington Avenue

      New
        York,
        NY 10017

      

      D.
        Eric
        Remensperger, Esq.

      Gibson,
        Dunn & Crutcher, LLP

      333
        So.
        Grand Avenue

      Los
        Angeles, CA 90071

       

      
        
          

        

      

       

      

        In
          addition, as of the closing, the parties agreed that Seller would
          retain
          certain immaterial liabilities and certain simulcast receivables and payables.
          

      

       

       

      
        

      

    

     

    
      

        The
          exhibits and schedules to Exhibit 10.2 have been intentionally omitted
          because
          they are not material. The registrant agrees to furnish such omitted exhibits
          and schedules supplementally to the Commission upon
          request.

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