Document:

Exhibit
10.16

 

FIFTH
AMENDMENT TO THIRD

AMENDED
AND RESTATED CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Fifth
Amendment”) is made and entered into as of the 24th day of
September, 2004, by and among MTR GAMING GROUP, INC., a Delaware corporation (“MTRI”),
MOUNTAINEER PARK, INC., a West Virginia corporation (“MPI”), SPEAKEASY GAMING
OF LAS VEGAS, INC., a Nevada corporation (“SGLVI”), SPEAKEASY GAMING OF RENO,
INC., a Nevada corporation (“SGRI”), PRESQUE ISLE DOWNS, INC., a Pennsylvania
corporation (“PIDI”), SCIOTO DOWNS, INC., an Ohio corporation (“SDI”),
successor by merger to RACING ACQUISITION, INC., an Ohio corporation and
SPEAKEASY GAMING OF FREMONT, INC., a Nevada corporation (“SGFI” and together
with MTRI, MPI, SGLVI, SGRI, PIDI and SDI, collectively referred to as the “Borrowers”),
WELLS FARGO BANK, National Association, NATIONAL CITY BANK OF PENNSYLVANIA,
BRANCH BANKING AND TRUST COMPANY and THE CIT GROUP/EQUIPMENT FINANCING, INC.
(each individually a “Lender” and collectively the “Lenders”), WELLS FARGO
BANK, National Association, as the swingline lender (herein in such capacity,
together with its successors and assigns, the “Swingline Lender”), WELLS FARGO
BANK, National Association, as the issuer of letters of credit (in such
capacity, together with it successors and assigns, the “L/C Issuer”), and WELLS
FARGO BANK, National Association, as administrative and collateral agent for
the Lenders, Swingline Lender and L/C Issuer (herein, in such capacity, called
the “Agent Bank” and, together with the Lenders, Swingline Lender and L/C
Issuer collectively referred to as the “Banks”).

 

R_E_C_I_T_A_L_S:

 

WHEREAS:

 

A.            MTRI,
MPI, SGLVI, SGRI, PIDI and SDI, as borrowers, and Banks entered into a Third
Amended and Restated Credit Agreement dated as of March 28, 2003, as
amended by First Amendment to Amended and Restated Credit Agreement dated as of
June 18, 2003, as further amended by Second Amendment to Amended and
Restated Credit Agreement dated as of November 12, 2003, as further amended by
Third Amendment to Third Amended and Restated Credit Agreement dated as of
February 25, 2004, and as further amended by Fourth Amendment to Third Amended
and Restated Credit Agreement dated as of June 4, 2004 (collectively, the “Existing
Credit Agreement”) for the purpose of establishing a revolving line of credit
in the

 

principal amount of Fifty Million Dollars ($50,000,000.00), including
subfacilities for the funding of swingline advances and issuance of Letters of
Credit.

 

B.            The
Borrower Consolidation has requested Banks to amend the Existing Credit
Agreement for the purpose of revising the rating requirements for the issuers
of insurance in accordance with Section 5.09 of the Existing Credit
Agreement.

 

C.            Subject
to the terms and conditions hereinafter set forth Requisite Lenders have
approved the amendments requested as set forth above.

 

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree to the amendments and modifications to the Existing
Credit Agreement as specifically hereinafter provided as follows:

 

1.             Definitions.  As of the Effective Date, Section 1.01
of the Existing Credit Agreement entitled “Definitions” shall be and is hereby
amended to include the following definitions. 
Those terms which are currently defined by Section 1.01 of the
Existing Credit Agreement and which are also defined below shall be superseded
and restated by the applicable definition set forth below:

 

“Credit
Agreement” shall mean the Existing Credit Agreement as amended by the Fifth
Amendment, together with all Schedules, Exhibits and other attachments thereto,
as it may be further amended, modified, extended, renewed or restated from time
to time.

 

“Existing
Credit Agreement” shall have the meaning set forth in Recital Paragraph A
of the Fifth Amendment.

 

“Fifth
Amendment” shall mean the Fifth Amendment to Third Amended and Restated Credit
Agreement dated as of September 24, 2004.

 

“Fifth
Amendment Effective Date” shall mean September 24, 2004, subject to the
satisfaction of each of the Conditions Precedent set forth in Paragraph 3
of the Fifth Amendment.

 

2.             Amendment
of Section 5.09(m).  As of the
Fifth Amendment Effective Date, the first sentence of Section 5.09(m) of
the Existing Credit Agreement entitled “Ratings” shall be and is hereby deleted
in its entirety and the following is substituted as a full restatement thereof:

 

2

“All policies indicated above shall be written with insurance companies
licensed and admitted to do business in all states where the Borrower
Consolidation, or any of them, is operating and shall be rated no lower than “A XII”
in the most recent addition of A.M. Best’s and “AA-” in the most recent edition
of Standard & Poor’s, or such other carrier reasonably acceptable to Agent
Bank.”

 

3.             Conditions
Precedent to Fifth Amendment Effective Date.  The occurrence of the Fifth Amendment
Effective Date is subject to Agent Bank having received the following documents
and payments, in each case in a form and substance reasonably satisfactory to
Agent Bank, and the occurrence of each other condition precedent set forth
below on or before August 31, 2004:

 

a.             due execution by Borrowers and Agent Bank of six (6)
duplicate originals of this Fifth Amendment;

 

b.             reimbursement to Agent Bank by
Borrowers for all reasonable fees and out-of-pocket expenses incurred by Agent
Bank in connection with the Fifth Amendment, but not limited to, reasonable
attorneys’ fees of Henderson & Morgan, LLC and all other like expenses
remaining unpaid as of the Fifth Amendment Effective Date; and

 

c.             such other documents, instruments or conditions as may
be reasonably required by Agent Bank.

 

4.             Representations
of Borrowers.  Borrowers hereby
represent to the Banks, which representations shall survive the Fifth Amendment
Effective Date and be deemed incorporated into Article IV of the Credit
Agreement, that:

 

a.             the representations and warranties
contained in Article IV of the Existing Credit Agreement and contained in each
of the other Loan Documents (other than representations and warranties which
expressly speak only as of a different date, which shall be true and correct in
all material respects as of such date) are true and correct on and as of the
Fifth Amendment Effective Date in all material respects as though such
representations and warranties had been made on and as of the Fifth Amendment
Effective Date, except to the extent that such representations and warranties
are not true and correct as a result of a change which is permitted by the
Credit Agreement or by any other Loan Document or which has been otherwise
consented to by Agent Bank or, where applicable, the Requisite Lenders;

 

b.             since the date of the most recent financial statements
referred to in Section 5.08 of the Existing Credit Agreement, no Material
Adverse Change has

 

3

occurred and no event or circumstance
which could reasonably be expected to result in a Material Adverse Change has
occurred;

 

c.             no event has occurred and is continuing which
constitutes a Default or Event of Default under the terms of the Credit
Agreement; and

 

d.             the execution, delivery and
performance of this Fifth Amendment has been duly authorized by all necessary
action of Borrowers and this Fifth Amendment constitutes the valid, binding and
enforceable obligation of Borrowers.

 

5.             Incorporation
by Reference.  This Fifth Amendment
shall be and is hereby incorporated in and forms a part of the Existing Credit
Agreement.

 

6.             Governing
Law.  This Fifth Amendment to Credit
Agreement shall be governed by the internal laws of the State of Nevada without
reference to conflicts of laws principles.

 

7.             Counterparts.  This Fifth Amendment may be executed in any
number of separate counterparts with the same effect as if the signatures
hereto and hereby were upon the same instrument.  All such counterparts shall together
constitute one and the same document.

 

8.             Continuance
of Terms and Provisions.  All of the
terms and provisions of the Credit Agreement shall remain unchanged except as
specifically modified herein.

 

4

IN WITNESS
WHEREOF, Borrowers and the Agent Bank (acting on behalf of the Lenders pursuant
to Section 10.11 of the Credit Agreement) have executed this Fifth
Amendment as of the day and year first above written.

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  MTR GAMING
  GROUP, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  
	
   

  	
  MOUNTAINEER
  PARK, INC.,

  
	
   

  	
  A West
  Virginia corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF LAS VEGAS,

  INC., a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF RENO,

  INC., a Nevada corporation 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  	
   

  
					

 

S-1

 

	
   

  	
  PRESQUE ISLE
  DOWNS, INC.,

  a Pennsylvania corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SCIOTO
  DOWNS, INC., an Ohio corporation,

  successor by merger to RACING

  ACQUISITION, INC.,

  an Ohio corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF FREMONT, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  	
   

  

 

S-2

	
   

  	
  AGENT BANK:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK,

  National Association,

  Agent Bank, on behalf of the Lenders,

  Swingline Lender and L/C Issuer 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Rochanne Hackett

  	
   

  
	
   

  	
   

  	
  Rochanne
  Hackett,

  Vice President

  	
   

  
					

 

S-3Exhibit 10.17

 

SIXTH
AMENDMENT TO THIRD

AMENDED
AND RESTATED CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Sixth
Amendment”) is made and entered into as of the 29th day of
September, 2004, by and among MTR GAMING GROUP, INC., a Delaware corporation (“MTRI”),
MOUNTAINEER PARK, INC., a West Virginia corporation (“MPI”), SPEAKEASY GAMING
OF LAS VEGAS, INC., a Nevada corporation (“SGLVI”), SPEAKEASY GAMING OF RENO,
INC., a Nevada corporation (“SGRI”), PRESQUE ISLE DOWNS, INC., a Pennsylvania
corporation (“PIDI”), SCIOTO DOWNS, INC., an Ohio corporation (“SDI”),
successor by merger to RACING ACQUISITION, INC., an Ohio corporation and
SPEAKEASY GAMING OF FREMONT, INC., a Nevada corporation (“SGFI” and together
with MTRI, MPI, SGLVI, SGRI, PIDI and SDI, collectively referred to as the “Borrowers”),
WELLS FARGO BANK, National Association, NATIONAL CITY BANK OF PENNSYLVANIA,
BRANCH BANKING AND TRUST COMPANY and THE CIT GROUP/EQUIPMENT FINANCING, INC.
(each individually a “Lender” and collectively the “Lenders”), WELLS FARGO
BANK, National Association, as the swingline lender (herein in such capacity,
together with its successors and assigns, the “Swingline Lender”), WELLS FARGO
BANK, National Association, as the issuer of letters of credit (in such
capacity, together with it successors and assigns, the “L/C Issuer”), and WELLS
FARGO BANK, National Association, as administrative and collateral agent for
the Lenders, Swingline Lender and L/C Issuer (herein, in such capacity, called
the “Agent Bank” and, together with the Lenders, Swingline Lender and L/C
Issuer collectively referred to as the “Banks”).

 

R_E_C_I_T_A_L_S:

 

WHEREAS:

 

A.            MTRI,
MPI, SGLVI, SGRI, PIDI and SDI, as borrowers, and Banks entered into a Third
Amended and Restated Credit Agreement dated as of March 28, 2003, as
amended by First Amendment to Amended and Restated Credit Agreement dated as of
June 18, 2003, as further amended by Second Amendment to Amended and
Restated Credit Agreement dated as of November 12, 2003, as further amended by
Third Amendment to Third Amended and Restated Credit Agreement dated as of
February 25, 2004, as further amended by Fourth Amendment to Third Amended and
Restated Credit Agreement dated as of June 4, 2004 and as further amended
by Fifth Amendment to Third Amended and Restated Credit Agreement dated as of
September 24, 2004 (collectively, the “Existing Credit Agreement”) for the
purpose of

 

 

establishing a revolving line of credit in
the principal amount of Fifty Million Dollars ($50,000,000.00), including
subfacilities for the funding of swingline advances and issuance of Letters of
Credit.

 

B.            International
Paper Company, a New York corporation (“International Paper”), as seller, and
Tecnica Development Corp., a Pennsylvania corporation (“Tecnica”), as
purchaser, entered into an Agreement of Sale dated March 9, 2004 (the “IP Sale
Agreement”) under the terms of which International Paper agreed to sell to
Tecnica and Tecnica agreed to purchase from International Paper on the terms and
subject to the conditions set forth therein, approximately two hundred fifteen
(215) acres of land more particularly described on Exhibit A to the IP
Sale Agreement (the “IP Site”).  Tecnica
has assigned to PIDI and PIDI has assumed all of Tecnica’s rights, obligations
and responsibilities under the IP Sale Agreement pursuant to an Assignment and
Assumption of Purchase Agreement dated as of September 7, 2004.

 

C.            PIDI and
International Paper have or are about to enter into a Consent Order and
Agreement (“Consent Order”) with the Commonwealth of Pennsylvania, Department
of Environmental Protection (“DEP”) concerning the remediation of the “Identified
Contamination” described in the Consent Order in accordance with a remediation
plan to be proposed by PIDI.

 

D.            PIDI is
considering the development of the IP Site as a thoroughbred racetrack, gaming
and entertainment complex, including clubhouse, hotels and amenities,
exhibition halls, restaurants, retail outlets, recreation and entertainment
facilities, boating and related facilities, along with related supporting
animal care and receiving barns, stables, jockey motel complex and parking
facilities (collectively, the “Erie Project”). 
Development of the Erie Project at the IP Site is contingent upon,
amongst other factors, the Pennsylvania Racing Commission approving the
location of the race track and related gaming facilities at the IP Site.

 

E.             The
Borrower Consolidation has requested Banks to amend the Existing Credit
Agreement for the purpose of evidencing certain consents and modifications
relating to the acquisition by PIDI of the IP Site in accordance with the terms
of the IP Sale Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree to the amendments and modifications to the Existing
Credit Agreement as specifically hereinafter provided as follows:

 

1.             Definitions.  As of the Effective Date, Section 1.01
of the Existing Credit Agreement entitled “Definitions” shall be and is hereby
amended to include the

 

2

 

following definitions.  Those terms which are currently defined by
Section 1.01 of the Existing Credit Agreement and which are also defined
below shall be superseded and restated by the applicable definition set forth
below:

 

“Consent Order” shall have the meaning ascribed to such term in Recital
Paragraph C of the Sixth Amendment.

 

“Credit Agreement” shall mean the Existing Credit Agreement as amended
by the Sixth Amendment, together with all Schedules, Exhibits and other
attachments thereto, as it may be further amended, modified, extended, renewed
or restated from time to time.

 

“DEP” shall have the meaning ascribed to such term in Recital Paragraph
C.

 

“Erie Project” shall have the meaning ascribed to such term in Recital
Paragraph D of the Sixth Amendment.

 

“Existing Credit Agreement” shall have the meaning set forth in Recital
Paragraph A of the Sixth Amendment.

 

“International Paper” shall have the meaning ascribed to such term in
Recital Paragraph B of the Sixth Amendment.

 

“IP Sale Agreement” shall have the meaning ascribed to such term in
Recital Paragraph B of the Sixth Amendment.

 

“IP Site” shall have the meaning ascribed to such term in Recital
Paragraph B of the Sixth Amendment.

 

“Sixth Amendment” shall mean the Sixth Amendment to Third Amended and
Restated Credit Agreement dated as of September 29, 2004.

 

“Sixth Amendment Effective Date” shall mean September 30, 2004, subject
to the satisfaction of each of the Conditions Precedent set forth in
Paragraph 4 of the Sixth Amendment.

 

“Tecnica” shall have the meaning ascribed to such term in Recital
Paragraph B of the Sixth Amendment.

 

2.             Restatement
of Section 6.08.  As of the
Sixth Amendment Effective Date, Section 6.08 of the Existing Credit
Agreement entitled “Investment Restrictions”

 

3

 

shall be and is hereby deleted in its
entirety and the following is substituted as a full restatement thereof:

 

“Section 6.08.  Investment Restrictions.  Other than Investments permitted hereinbelow
or approved in writing by Requisite Lenders, the Borrower Consolidation shall
not make any Investments (whether by way of loan, stock purchase, capital
contribution, or otherwise) other than the following:

 

a.             Cash, Cash Equivalents and direct
obligations of the United States Government;

 

b.             Prime commercial
paper (AA rated or better);

 

c.             Certificates of
Deposit or Repurchase Agreement issued by a commercial bank having capital
surplus in excess of One Hundred Million Dollars ($100,000,000.00);

 

d.             Money market or
other funds of nationally recognized institutions investing solely in
obligations described in (a), (b) and (c) above;

 

e.             Insider Cash Loans
not exceeding One Million Five Hundred Thousand Dollars ($1,500,000.00) in the
aggregate during any Fiscal Year, provided that each of such Insider Cash Loans
shall bear interest at a rate no less than the Prime Rate plus one percent (1.0%)
per annum and shall in each instance be fully due and payable on or before two
(2) years from the date such Insider Cash Loan is advanced by any member of the
Borrower Consolidation;

 

f.              Insider Non-Cash Loans to the
extent permitted by Law;

 

g.             the amounts owing to SGRI under the
terms of the RRLLC Note and SGRI Loan Documents;

 

h.             Capital
Expenditures to the extent permitted under Section 6.06;

 

i.              Share Repurchases
up to the maximum cumulative aggregate amount of Thirty Million Dollars
($30,000,000.00) during the

 

4

 

period commencing on the Closing Date and
ending at Credit Facility Termination;

 

j.              New Venture
Investments, exclusive of the acquisition of the Horseshoe Property as provided
in subparagraph k below, but including, without limitation, the Scioto Merger
and all Alternative Payments which may be made under the terms thereof
following the Scioto Merger Effective Date, the exercise of the option to
acquire the Green Shingle Property or any other Acquisition made in connection
with the SDI Facility, the PIDI Facility or any New Venture, no greater than
the cumulative maximum aggregate amount of Fifty Million Dollars
($50,000,000.00) through Credit Facility Termination, so long as (except with
respect to the IP Site as provided in Subparagraph (n) below:

 

(i)            in
each instance the New Venture or assets acquired by such New Venture Investment
is concurrently pledged as additional Collateral securing the Bank Facilities;

 

(ii)           each of the New
Acquisition Certifications are made and delivered by Borrowers with respect to
any real property to be added as Collateral; and

 

(iii)          no
Default or Event of Default shall have occurred and remains continuing;

 

k.             Acquisition of the
Horseshoe Property pursuant to the terms of the HHLV Purchase Agreement and
Joint Operating Agreement, so long as:

 

(i)            concurrently with
the Horseshoe Acquisition Date and the effective date of the Joint Operating
Agreement, SGFI’s right to all payments to be paid to SGFI under the Joint
Operating Agreement, including, without limitation, the “Speakeasy’s Remittance
Amounts,” as therein defined, be collaterally assigned to and a security
interest perfected in favor of Agent Bank, on behalf of the Banks;

 

(ii)           Agent Bank is
designated with SGFI as an additional loss payee and party insured pursuant to
Section 7.02 of the Joint Operating Agreement, under the policies of
insurance

 

5

 

maintained pursuant to Section 7.01 of
the Joint Operating Agreement; and

 

(iii)          no
Default or Event of Default shall have occurred and remains continuing;

 

l.              the Green Shingle Loan up to the
maximum amount of Two Million Six Hundred Thousand Dollars ($2,600,000.00),
subject to compliance with the requirements of Section 3.21(c);

 

m.            Investments made in
MTR Harness up to the maximum cumulative aggregate amount of Ten Million
Dollars ($10,000,000.00); and

 

n.             Acquisition of the
IP Site pursuant to the terms of the IP Sale Agreement  may be consummated by PIDI without complying
with the requirements of Subparagraphs (j) (i) and (ii) above, so long as:
(x) on or before the date upon which PIDI acquires title to the IP Site,
International Paper and PIDI obtain the environmental insurance coverage
described in Paragraph 17(f) of the IP Sale Agreement in an aggregate
amount no less than Ten Million Dollars ($10,000,000.00) for a term no less
than ten (10) years naming Agent Bank as an additional  insured, and (y) the Borrower Consolidation
does not expend in excess of the cumulative aggregate amount of Six Million
Dollars ($6,000,000.00) for the acquisition, remediation and development of the
IP Site without the prior written consent of Requisite Lenders.  In no event shall Borrowers permit any Lien
to be filed against or to encumber the IP Site, except in favor of Agent Bank
as provided in Section 5.32 hereinbelow.

 

3.             Addition
of Section 5.32 regarding IP Site Acquisition Date Requirements.  As of the Sixth Amendment Effective Date,
Section 5.32 entitled “IP Site Acquisition Date Requirements” shall be and
is hereby added to the Existing Credit Agreement as follows:

 

“Section 5.32.  Post IP Site Acquisition Date Requirements.  At such time as the Borrower Consolidation
has complied or caused compliance with each requirement and environmental
remediation set forth in the Consent Order as applicable to Borrowers,
Borrowers shall give written notice of such full compliance to Agent Bank.  Following receipt of such written notice,
Agent Bank may request, in its sole and absolute discretion, compliance with
Section 6.08(j)(i) and (ii) with respect

 

6

 

to the IP Site.  Upon receipt of such request Borrowers shall
and do hereby agree to cause PIDI to promptly:

 

a.             complete any
remaining remediations and/or recommended actions necessary for the issuance of
a certificate of closure or completion from the DEP under the Consent Order
which shall be deemed sufficient for the execution of a New Acquisition
Certification with respect to the IP Site in accordance with the requirements
set forth in (c) of the definition of New Acquisition Certifications, which New
Acquisition Certifications shall be delivered to Agent Bank;

 

b.             execute all
security instruments deemed necessary by Agent Bank to cause the IP Site and
all other leases and assets then owned or controlled by PIDI at the IP Site to
be pledged with a first priority Lien as additional Collateral securing the
Bank Facilities; and

 

c.             cause the insurance
company or companies that issued the environmental insurance coverages
described in Section 6.08(n)(x) above to issue
endorsements to such coverages naming Agent Bank as the mortgagee, loss payee
and additional insured, and an endorsement providing that in the event that
Agent Bank acquires ownership of all or any portion of the IP Site by
foreclosure or deed in lieu of foreclosure that Agent Bank shall be a named
insured thereunder.”

 

4.             Conditions
Precedent to Sixth Amendment Effective Date.  The occurrence of the Sixth Amendment
Effective Date is subject to Agent Bank having received the following documents
and payments, in each case in a form and substance reasonably satisfactory to
Agent Bank, and the occurrence of each other condition precedent set forth
below on or before September 30, 2004:

 

a.     due execution by Borrowers and Agent Bank of six (6) duplicate
originals of this Sixth Amendment;

 

b.     reimbursement to Agent Bank by Borrowers
for all reasonable fees and out-of-pocket expenses incurred by Agent Bank in
connection with the Sixth Amendment, but not limited to, reasonable attorneys’
fees of Henderson & Morgan, LLC and all other like expenses remaining
unpaid as of the Sixth Amendment Effective Date; and

 

c.     such other documents, instruments or conditions as may be
reasonably required by Agent Bank.

 

7

 

5.             Representations
of Borrowers.  Borrowers hereby
represent to the Banks, which representations shall survive the Sixth Amendment
Effective Date and be deemed incorporated into Article IV of the Credit
Agreement, that:

 

a.     the representations and warranties
contained in Article IV of the Existing Credit Agreement and contained in each
of the other Loan Documents (other than representations and warranties which
expressly speak only as of a different date, which shall be true and correct in
all material respects as of such date) are true and correct on and as of the
Sixth Amendment Effective Date in all material respects as though such
representations and warranties had been made on and as of the Sixth Amendment
Effective Date, except to the extent that such representations and warranties
are not true and correct as a result of a change which is permitted by the
Credit Agreement or by any other Loan Document or which has been otherwise consented
to by Agent Bank or, where applicable, the Requisite Lenders;

 

b.     since the date of the most recent financial statements referred
to in Section 5.08 of the Existing Credit Agreement, no Material Adverse Change
has occurred and no event or circumstance which could reasonably be expected to
result in a Material Adverse Change has occurred;

 

c.     the IP Sale Agreement and the Consent Order
delivered to the Agent Bank as of the Sixth Amendment Effective Date have not
been further revised or modified;

 

d.     after giving effect to the Sixth Amendment,
no event has occurred and is continuing which constitutes a Default or Event of
Default under the terms of the Credit Agreement; and

 

e.     the execution, delivery and performance of
this Sixth Amendment has been duly authorized by all necessary action of
Borrowers and this Sixth Amendment constitutes the valid, binding and
enforceable obligation of Borrowers.

 

6.             Incorporation
by Reference.  This Sixth Amendment
shall be and is hereby incorporated in and forms a part of the Existing Credit
Agreement.

 

7.             Governing
Law.  This Sixth Amendment to Credit
Agreement shall be governed by the internal laws of the State of Nevada without
reference to conflicts of laws principles.

 

8.             Counterparts.  This Sixth Amendment may be executed in any
number of separate counterparts with the same effect as if the signatures
hereto and

 

8

 

hereby were upon the same
instrument.  All such counterparts shall
together constitute one and the same document.

 

9.             Continuance
of Terms and Provisions.  All of the
terms and provisions of the Credit Agreement shall remain unchanged except as
specifically modified herein.

 

9

 

IN WITNESS
WHEREOF, Borrowers and the Agent Bank (acting on behalf of the Lenders pursuant
to Section 10.11 of the Credit Agreement) have executed this Sixth
Amendment as of the day and year first above written.

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  MTR GAMING
  GROUP, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  MOUNTAINEER
  PARK, INC.,

  a West Virginia corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF LAS VEGAS,

  INC., a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF RENO,

  INC., a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
							

 

S-1

 

	
   

  	
  PRESQUE ISLE
  DOWNS, INC.,

  a Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  SCIOTO
  DOWNS, INC., an Ohio corporation,

  successor by merger to RACING

  ACQUISITION, INC.,

  an Ohio corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF FREMONT, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R.
  Arneault,

  President

  
						

 

S-2

 

	
   

  	
  AGENT BANK:

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK,

  National Association,

  Agent Bank, on behalf of the Lenders,

  Swingline Lender and L/C Issuer 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Rochanne Hackett

  	
   

  
	
   

  	
   

  	
  Rochanne
  Hackett,

  Vice President

  

 

S-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]