Document:

Exhibit 10.3

REVOLVING
CREDIT NOTE

(First Restated)

	
  $15,000,000.00

  	
   

  	
  June 19, 2007

  

 

FOR VALUE
RECEIVED, the undersigned, MTR GAMING GROUP, INC., a Delaware corporation,
MOUNTAINEER PARK, INC., a West Virginia corporation, SPEAKEASY GAMING OF LAS
VEGAS, INC., a Nevada corporation, PRESQUE ISLE DOWNS, INC., a Pennsylvania
corporation, SCIOTO DOWNS, INC., an Ohio corporation and SPEAKEASY GAMING OF
FREMONT, INC., a Nevada corporation (collectively the “Borrowers”) jointly and
severally promise to pay to the order of PNC BANK, National Association (the “Lender”)
such sums as Lender has loaned and
may hereafter loan or advance or re-loan to the Borrowers from time to time
pursuant to the Credit Facility as described in the Credit Agreement,
hereinafter defined up to the maximum principal sum of Fifteen Million Dollars
($15,000,000.00) (or such lesser amount of such loans and advances made by
Lender as may be outstanding from time to time), the unpaid balance of which
shall not exceed in the aggregate the Lender’s Pro Rata Share of the Aggregate
Commitment at any time, together with interest on the principal balance
outstanding from time to time at the rate or rates set forth in the Credit
Agreement.

A.            Incorporation of Credit Agreement.

1.             Reference is made to the Fifth
Amended and Restated Credit Agreement dated September 22, 2006, as amended by First Amendment to Fifth Amended and
Restated Credit Agreement dated concurrently herewith (as may be further
amended, modified, extended, renewed or restated from time to time, the “Credit
Agreement”), executed by and among the Borrowers and the Lender and the other
financial institutions from time to time parties thereto (collectively, the “Lenders”),
the Swingline Lender and L/C Issuer therein named, and Wells Fargo Bank,
National Association, as administrative and collateral agent for itself and for
the Lenders (the “Agent Bank”).  Terms
defined in the Credit Agreement and not otherwise defined herein are used
herein with the meanings defined for those terms in the Credit Agreement.  This Revolving
Credit Note is a restatement of the Revolving Credit Note payable to Lender
dated September 22, 2006 and is a Replacement Note, as defined in the
Credit Agreement, and collectively with each other Replacement Note and the
Revolving Credit Note payable to the order of Agent Bank, constitutes the Revolving Credit Note
referred to in the Credit Agreement, and any holder hereof (in accordance with
the Credit Agreement) is entitled to all of the rights, remedies, benefits and

 1
 

privileges provided for
in the Credit Agreement as originally executed or as it may from time to time
be supplemented, modified or amended. 
The Credit Agreement, among other things, contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
upon the terms and conditions therein specified.

2.             The outstanding principal
indebtedness evidenced by this Revolving Credit Note shall be payable as
provided in the Credit Agreement and in any event on September 27, 2011, the
Maturity Date.

3.             Interest shall be payable on the
outstanding daily unpaid principal amount of each Borrowing hereunder from the
date thereof until payment in full and shall accrue and be payable at the rates
and on the dates set forth in the Credit Agreement both before and after
Default and before and after maturity and judgment, with interest on overdue
interest to bear interest at the Default Rate, to the fullest extent permitted
by applicable law.

4.             The amount of each payment hereunder
shall be made to the Agent Bank at the Agent Bank’s office as specified in the
Credit Agreement for the account of the Lenders at the time or times set forth
therein, in lawful money of the United States of America and in immediately
available funds.

5.             Borrowings hereunder shall be made
in accordance with the terms, provisions and procedures set forth in the Credit
Agreement.

B.                                     Default.  The “Late Charges and Default Rate”
provisions contained in Section 2.10 and the “Events of Default”
provisions contained in Article VII of the Credit Agreement are hereby
incorporated by this reference as though fully set forth herein.  Upon the occurrence of a Default or Event of
Default, Borrowers’ right to convert or exercise its Interest Rate Option for a
LIBOR Loan, or the continuation thereof at the expiration of the then current
Interest Period, shall immediately, without notice or demand, terminate for so
long as a Default or Event of Default is continuing.

C.                                     Waiver.  Borrowers
waive diligence, demand, presentment for payment, protest and notice of
protest.

D.                                    Collection
Costs.  In the event of the
occurrence of an Event of Default, the Borrowers agree to pay all reasonable
costs of collection, including reasonable attorneys fees, in addition to and at
the time of the payment of such sum of money and/or the performance of such
acts as may be required to cure such default. 
In the event legal action is commenced for the collection of any sums
owing hereunder the undersigned agrees that any judgment issued as a
consequence of such action against Borrowers shall bear interest at a rate
equal to the Default Rate until fully paid.

 2
 

E.             Interest Rate Limitation.  Notwithstanding any provision herein or in
any document or instrument now or hereafter securing this Revolving Credit
Note, the total liability for payments in the nature of interest shall not
exceed the limits now imposed by the applicable laws of the State of Nevada or
the United States of America.

F.                                      Security.  This Revolving Credit Note is secured by the
Security Documentation described in the Credit Agreement.

G.                                     Governing
Law.  This Revolving Credit Note has
been delivered in Reno, Nevada, and shall be governed by and construed in
accordance with the laws of the State of Nevada.

H.                                    Partial
Invalidity.  If any provision of this
Revolving Credit Note shall be prohibited by or invalid under any applicable
law, such provision shall be in­effective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
of any other provision of this Revolving Credit Note.

I.                                         No
Conflict with Credit Agreement.  This
Revolving Credit Note is issued under, and subject to, the terms, covenants and
conditions of the Credit Agreement, which Credit Agreement is by this reference
incorporated herein and made a part hereof. 
No reference herein to the Credit Agreement and no provision of this
Revolving Credit Note or the Credit Agreement shall alter or impair the
obligations of Borrowers, which are absolute and unconditional, to pay the
principal of and interest on this Revolving Credit Note at the place, at the
respective times, and in the currency prescribed in the Credit Agreement.  If any provision of this Revolving Credit
Note conflicts or is inconsistent with any provision of the Credit Agreement,
the provisions of the Credit Agreement shall govern.

 3
 

IN
WITNESS WHEREOF, this Revolving Credit Note has been executed as of the date
first hereinabove 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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 4
 

 

	
  

  	
   

  	
  PRESQUE ISLE DOWNS, INC.,

  a Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SCIOTO DOWNS, INC.,

  an Ohio corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPEAKEASY GAMING OF FREMONT, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  

 

 5Exhibit 10.4

REVOLVING CREDIT NOTE

	
  $15,000,000.00

  	
   

  	
  June 19, 2007

  

 

FOR VALUE
RECEIVED, the undersigned, MTR GAMING GROUP, INC., a Delaware corporation,
MOUNTAINEER PARK, INC., a West Virginia corporation, SPEAKEASY GAMING OF LAS VEGAS,
INC., a Nevada corporation, PRESQUE ISLE DOWNS, INC., a Pennsylvania
corporation, SCIOTO DOWNS, INC., an Ohio corporation and SPEAKEASY GAMING OF
FREMONT, INC., a Nevada corporation (collectively the “Borrowers”) jointly and
severally promise to pay to the order of COMMERZBANK AG, New York and Grand
Cayman Branches (the “Lender”) such sums as Lender may hereafter loan or
advance or re-loan to the Borrowers from time to time pursuant to the Credit
Facility as described in the Credit Agreement, hereinafter defined up to the
maximum principal sum of Fifteen Million Dollars ($15,000,000.00) (or such
lesser amount of such loans and advances made by Lender as may be outstanding
from time to time), the unpaid balance of which shall not exceed in the aggregate
the Lender’s Pro Rata Share of the Aggregate Commitment at any time, together
with interest on the principal balance outstanding from time to time at the
rate or rates set forth in the Credit Agreement.

A.            Incorporation of Credit Agreement.

1.             Reference is made to the Fifth
Amended and Restated Credit Agreement dated September 22, 2006, as amended by
First Amendment to Fifth Amended and Restated Credit Agreement dated
concurrently herewith (as may be further amended, modified, extended, renewed
or restated from time to time, the “Credit Agreement”), executed by and among
the Borrowers and the Lender and the other financial institutions from time to
time parties thereto (collectively, the “Lenders”), the Swingline Lender and
L/C Issuer therein named, and Wells Fargo Bank, National Association, as
administrative and collateral agent for itself and for the Lenders (the “Agent
Bank”).  Terms defined in the Credit
Agreement and not otherwise defined herein are used herein with the meanings
defined for those terms in the Credit Agreement.  This is a Replacement Note, as defined in the
Credit Agreement, and collectively with each other Replacement Note and the
Revolving Credit Note payable to the order of Agent Bank, constitutes the
Revolving Credit Note referred to in the Credit Agreement, and any holder
hereof (in accordance with the Credit Agreement) is entitled to all of the
rights, remedies, benefits and privileges provided for in the Credit Agreement
as originally executed or as it may from time to time be supplemented, modified
or amended.  The Credit Agreement, among
other things, contains provisions for acceleration of the maturity hereof upon
the happening of certain stated events upon the terms and conditions therein specified.

 1
 

2.             The outstanding principal
indebtedness evidenced by this Revolving Credit Note shall be payable as
provided in the Credit Agreement and in any event on September 27, 2011, the
Maturity Date.

3.             Interest shall be payable on the
outstanding daily unpaid principal amount of each Borrowing hereunder from the
date thereof until payment in full and shall accrue and be payable at the rates
and on the dates set forth in the Credit Agreement both before and after
Default and before and after maturity and judgment, with interest on overdue interest
to bear interest at the Default Rate, to the fullest extent permitted by
applicable law.

4.             The amount of each payment
hereunder shall be made to the Agent Bank at the Agent Bank’s office as
specified in the Credit Agreement for the account of the Lenders at the time or
times set forth therein, in lawful money of the United States of America and in
immediately available funds.

5.             Borrowings hereunder shall be made
in accordance with the terms, provisions and procedures set forth in the Credit
Agreement.

B.                                     Default.  The “Late Charges and Default Rate”
provisions contained in Section 2.10 and the “Events of Default”
provisions contained in Article VII of the Credit Agreement are hereby
incorporated by this reference as though fully set forth herein.  Upon the occurrence of a Default or Event of
Default, Borrowers’ right to convert or exercise its Interest Rate Option for a
LIBOR Loan, or the continuation thereof at the expiration of the then current
Interest Period, shall immediately, without notice or demand, terminate for so
long as a Default or Event of Default is continuing.

C.                                     Waiver.  Borrowers
waive diligence, demand, presentment for payment, protest and notice of
protest.

D.                                    Collection
Costs.  In the event of the
occurrence of an Event of Default, the Borrowers agree to pay all reasonable
costs of collection, including reasonable attorneys fees, in addition to and at
the time of the payment of such sum of money and/or the performance of such
acts as may be required to cure such default. 
In the event legal action is commenced for the collection of any sums
owing hereunder the undersigned agrees that any judgment issued as a
consequence of such action against Borrowers shall bear interest at a rate
equal to the Default Rate until fully paid.

E.                                      Interest
Rate Limitation.  Notwithstanding any
provision herein or in any document or instrument now or hereafter securing
this Revolving Credit Note, the total liability for payments in the nature of
interest shall not exceed the limits now imposed by the applicable laws of the
State of Nevada or the United States of America.

 2
 

F.                                      Security.  This Revolving Credit Note is secured by the
Security Documentation described in the Credit Agreement.

G.                                     Governing
Law.  This Revolving Credit Note has
been delivered in Reno, Nevada, and shall be governed by and construed in
accordance with the laws of the State of Nevada.

H.                                    Partial
Invalidity.  If any provision of this
Revolving Credit Note shall be prohibited by or invalid under any applicable
law, such provision shall be in­effective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
of any other provision of this Revolving Credit Note.

I.                                         No
Conflict with Credit Agreement.  This
Revolving Credit Note is issued under, and subject to, the terms, covenants and
conditions of the Credit Agreement, which Credit Agreement is by this reference
incorporated herein and made a part hereof. 
No reference herein to the Credit Agreement and no provision of this
Revolving Credit Note or the Credit Agreement shall alter or impair the
obligations of Borrowers, which are absolute and unconditional, to pay the
principal of and interest on this Revolving Credit Note at the place, at the
respective times, and in the currency prescribed in the Credit Agreement.  If any provision of this Revolving Credit
Note conflicts or is inconsistent with any provision of the Credit Agreement,
the provisions of the Credit Agreement shall govern.

 3
 

IN
WITNESS WHEREOF, this Revolving Credit Note has been executed as of the date
first hereinabove 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

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 4
 

 

	
  

  	
   

  	
  PRESQUE ISLE DOWNS, INC.,

  a Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SCIOTO DOWNS, INC.,

  an Ohio corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPEAKEASY GAMING OF FREMONT, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /S/ Edson R. Arneault

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  

 

 5

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