Document:

Prepared by MERRILL CORPORATION

 

Exhibit 10.25

 

 

SECOND

AMENDMENT TO

AMENDED AND

RESTATED CREDIT AGREEMENT

 

 

                                THIS SECOND AMENDMENT TO AMENDED AND RESTATED

CREDIT AGREEMENT ("Second Amendment"), dated as of the 16th

day of October, 2001, is entered into with reference to that certain Amended

and Restated Credit Agreement dated as of August 15, 2000 (the "Original

Credit Agreement"), as amended by First Amendment to Amended and Restated

Credit Agreement dated as of July 30, 2001 (the "First

Amendment" and together with the Original Credit Agreement, collectively

the "Existing Credit Agreement") executed by and among MTR GAMING

GROUP, INC., a Delaware corporation, MOUNTAINEER PARK, INC., a West Virginia

corporation, SPEAKEASY GAMING OF LAS VEGAS, INC., a Nevada corporation, SPEAKEASY

GAMING OF RENO, INC., a Nevada corporation and PRESQUE ISLE DOWNS, INC., a

Pennsylvania corporation (collectively referred to as the

"Borrowers"), WELLS FARGO BANK, National Association, PNC BANK, N.A.,

BANK OF SCOTLAND and NATIONAL CITY BANK OF PENNSYLVANIA (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") and

WELLS FARGO BANK, National Association, as administrative and collateral agent

for the Lenders and Swingline Lender (herein, in such capacity, called the

"Agent Bank" and, together with the Lenders and Swingline Lender

collectively referred to as the "Banks").  Capitalized terms used herein not otherwise defined shall have

the meaning set forth for such terms in the Existing Credit Agreement.

 

                                Borrowers and Agent Bank, acting with the

consent of the Requisite Lenders as required under Section 10.01 of the

Existing Credit Agreement and acting on behalf of the Banks as authorized under

Section 10.11 of the Existing Credit Agreement, agree as follows:

1.             Restatement of Share Repurchases

Limitations.  Section 6.08(i)

of the Existing Credit Agreement shall be and is hereby amended and restated in

its entirety, effective as of September 27, 2001, as follows:

                                                "i.            Other than during each Expanded

Share Repurchase Period as described below, Share Repurchases shall be limited

to the maximum cumulative aggregate amount of Three Million Dollars ($3,000,000.00)

during the period commencing on December 20, 1999 and ending at Credit

Facility Termination.  Provided,

however, that: (i) in the event the Borrower Consolidation achieves EBITDA

of Forty Million Dollars ($40,000,000.00), or more, during any fiscal period

consisting of four (4) consecutive Fiscal Quarters, the limitation for Share

Repurchases shall be increased to the maximum cumulative aggregate amount of

Eight Million Dollars ($8,000,000.00) during the Fiscal Quarter immediately

following such four (4) consecutive Fiscal Quarter period, and (ii) in the

event the Borrower Consolidation achieves EBITDA of Fifty Million Dollars

($50,000,000.00), or more, during any fiscal period consisting of four (4)

consecutive Fiscal Quarters, the limitation for Share Repurchases shall be

increased to the maximum cumulative aggregate amount of Ten Million Dollars

($10,000,000.00) during the Fiscal Quarter immediately following such four

(4)consecutive Fiscal Quarter period.  The

Fiscal Quarter immediately following any such four (4) consecutive Fiscal

Quarter period in which the Borrower Consolidation has achieved EBITDA in

excess of Forty Million Dollars ($40,000,000.00) or Fifty Million Dollars

($50,000,000.00) as provided above, shall herein be referred to as an "Expanded

Share Repurchase Period".  Share

Repurchases made during any Expanded Share Repurchase Period which result in

the cumulative aggregate amount of Share Repurchases to exceed Three Million

Dollars ($3,000,000.00) shall be deemed made in compliance with the provisions

contained in this Section 6.08(i) so long as made within the limitations

set forth above.  In the event EBITDA of

the Borrower Consolidation falls below Forty Million Dollars ($40,000,000.00)

for any four (4) consecutive Fiscal Quarter period and as of the end of such

four (4) Fiscal Quarter period the Borrower Consolidation has made Share

Repurchases in excess of the cumulative aggregate amount of Three Million

Dollars ($3,000,000.00), no further Share Repurchases may be made until the Borrower

Consolidation again achieves EBITDA for a four (4) consecutive Fiscal Quarter

period in excess of Forty Million Dollars ($40,000,000.00), at which time Share

Repurchases shall be permitted in accordance with the provisions set forth

above; and"

2.             Modification of Definitions.  Section 1.01 of the Existing Credit

Agreement 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 defined as set forth below:

                                                "Compliance Certificate" shall mean

a compliance certificate as described in Section 5.08(b) and (d) which is

more particularly described on "Exhibit D", affixed to the

Second Amendment and by this reference incorporated herein and made a part

hereof, which shall fully restate and supersede the "Compliance

Certificate" affixed as Exhibit D to the Existing Credit Agreement.

 

                                                "Credit Agreement" shall mean the

Existing Credit Agreement as amended by the Second Amendment, 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 the Preamble to the Second Amendment.

 

                                                "First Amendment" shall have the

meaning set forth in the Preamble to the Second Amendment.

 

                                                "Original Credit Agreement" shall

have the meaning set forth in the Preamble to the Second Amendment.

 

                                                "Second Amendment" shall have the

meaning set forth in the Preamble of the Second Amendment to Amended and

Restated Credit Agreement dated as of September 27, 2001, executed by Borrowers

and Agent Bank on behalf of the Banks.

3.             Conditions Precedent to Second

Amendment.  The effectiveness of

this Second Amendment 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:

                                                a.             due

execution by Borrowers and Agent Bank of six (6) duplicate originals of this

Second Amendment;

 

                                                b.             an

original Certificate of Corporate Resolution for each of the Borrowers

authorizing each respective Borrower to enter into this Second Amendment and

further authorizing and empowering the officer or officers who will execute

such documents and agreements with the authority and power to execute such

documents and agreements on behalf of each respective corporation;

 

                                                c.             payment

to Agent Bank for the account of the Lenders of a non-refundable fee (the

"Amendment Fee") in the following amounts:

 

                                                (i)            a

non-refundable fee to the Lenders which have expressly consented to this Second

Amendment in the amount of eight-tenths of one percent (0.08%) based on their

respective proportionate shares of the Aggregate Commitment under the Existing

Credit Agreement.

 

                                                d.             reimbursement

to Agent Bank by Borrowers for all reasonable fees and out-of-pocket expenses

incurred by Agent Bank in connection with the Second Amendment, but not limited

to, reasonable attorneys' fees of Henderson & Morgan, LLC; and

 

                                                e.             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 execution and delivery of the Second

Amendment and shall 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 execution and delivery of the Second

Amendment in all material respects as though such representations and

warranties had been made on and as of the execution and delivery of the Second

Amendment, 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.             after giving effect to the Second Amendment, 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 Second Amendment has been duly

authorized by all necessary action of Borrowers and this Second Amendment and

each of the related documents constitute valid, binding and enforceable

obligation of Borrowers.

5.              Incorporation by Reference.  This Second Amendment shall be and is hereby

incorporated in and forms a part of the Existing Credit Agreement.

6.             Governing Law.  This Second Amendment shall be governed by

the internal laws of the State of Nevada without reference to conflicts of laws

principles.

7.             Counterparts.  This Second 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.

9.             Replacement Exhibit Attached.  The following additional and replacement

Exhibit is attached hereto and incorporated herein and made a part of the

Credit Agreement as follows:

                                                Exhibit D -  

Compliance Certificate - Form

 

                                IN WITNESS WHEREOF, Borrowers and Agent Bank

on behalf of the Banks have executed this Second Amendment as of the day and

year first above written by their duly authorized representatives.

 

	

   

  	

  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

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  PRESQUE ISLE DOWNS, INC.,

  
	

   

  	

  a Pennsylvania corporation

  
	

   

  	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Edson R. Arneault 

  	

   

  
	

   

  	

   

  	

  Edson R. Arneault, 

  
	

   

  	

   

  	

  President

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  AGENT BANK:

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  WELLS FARGO BANK,

  
	

   

  	

  National Association

  
	

   

  	

   

  	

   

  
	

   

  	

  By 

  	

  /s/ Virginia Christenson

  	

   

  
	

   

  	

   

  	

  Virginia Christenson, 

  
	

   

  	

   

  	

  Vice PresidentPrepared by MERRILL CORPORATION

CONSULTING AGREEMENT

 

 

                AGREEMENT made as

of this 3rd day of July 2001, between Tekgraf Inc. (“TKGF”) with offices

located at 980 Corporate Woods Parkway Vernon Hills, Illinois 60061 and

Piedmont Consulting, Inc. with offices at 3131 Piedmont Road, Suite #205,

Atlanta, Georgia 30305 (the “Consultant”).

 

                WHEREAS, TKGF is a

publicly held corporation, and

 

                WHEREAS, TKGF

desires to retain Consultant to provide public and investor relations services

for TKGF.

 

                NOW, THEREFORE, in

consideration of the premises and the mutual covenants hereinafter set forth,

Consultant and TKGF hereby agrees as follows:

 

1.             TERM;

TERMINATION. This Agreement shall commence on the date hereof

and shall extend thereafter for a period of 1 year.  Thereafter, the parties hereto may renew this Agreement by mutual

consent.

 

2.             CONSULTING

SERVICES.  During the

term of this Agreement, Consultant shall provide public and investor relations

services (collectively, the “Services”) to TKGF, which Services shall be geared

to result in improved stock trading volume, higher stock price multiples, a

broader following by analysts and institutions and new investment

recommendations and providing directly, or managing the delivery of, a wide

range of services, including, but not limited to:

(a)   Proactive marketing of TKGF’s common stock

directly to influential security analysts, stockbrokers and portfolio managers

and investors selected from Consultant’s proprietary database of investment

leaders across the country and abroad.

(b)   Arranging meetings between TKGF’s management

and current and/or potential investors, either in small groups or on a

one-to-one basis, to establish ongoing relationships; and periodically

supplementing these meetings with presentations at investment industry

sponsored forums, through quarterly conference calls, and by quarterly mailings

of our corporate profile.

(c)   Assisting the companies in gaining media

coverage both locally where the companies have operations nationally.  Consultant will also target certain

Internet, advisory services as well as monitor various other Internet

activities.

(d)   Establishing a VIP list of analysts, brokers,

portfolio managers, and investors that receive facsimiles and email addresses

of news releases, facsimile notification of conference calls and mailings of

TKGF’s 10K’s and 10Q’s plus annual and any corporate updates. 

(e)   Establishing a broader news distribution list

for direct facsimile and email addresses of TKGF.

(f)    Assisting and/or advising in the authoring

of press releases, including monitoring wire service coverage of TKGF for

accuracy and pickup.

(g)   Preparing presentations relating to TKGF for

meetings with analysts, stock brokers, portfolio managers, and any large

investors, as well as any sponsored forums.

(h)   Assisting in preparing information kits about

TKGF in response to press and/or investor inquiries.

(i)    Advising with TKGF’s management concerning

marketing ideas, investor profile information, methods of expanding TKGF’s

investor support and increasing investor awareness of TKGF and their products

and/or services.

(j)    Creating literature (including layout,

printing and distribution to Consultant’s list of investors and stockbrokers)

describing TKGF’s business, products, marketing plans and financial potential.

(k)   Providing such other Services and assistance

as Consultant and TKGF shall deem necessary or appropriate to enhance TKGF’s

business.

3.             APPROVAL OF INFORMATION.  All information disseminated by Consultant

regarding TKGF shall be derived from information provided by TKGF to Consultant

(the “Information”).  Consultant will

obtain TKGF’s prior approval to distribution or dissemination of all

Information.

4.             COMPENSATION.  Subject to Consultant’s compliance with the terms and conditions

herein set forth, and in full consideration of the Services provided by

Consultant hereunder, TKGF shall pay to Consultant, as its consulting fee (the

“Fee”), and Consultant shall accept as full payment thereof, a fee consisting

of:

(a)   TKGF agrees to pay Piedmont Consulting, Inc.

a $6,000 monthly consulting fee to cover expenses.

(b)   TKGF agrees to issue 60,000 Class A Common

Shares of TKGF (“TKGF Common Shares”) resalable pursuant to Rule 144 to

Piedmont Consulting, Inc. as follows:

1.    Within the term of the Agreement, 30,000

shares will be issued upon the stock trading at $1.00 or higher for 10 trading

days and the remaining 30,000 will be issued upon the stock trading at $1.50 or

higher for 10 trading days. 

 

2.     If the stock does not trade above $1.00 as

described above (or maintain NASD listing) Piedmont would not receive these

shares unless term of Agreement extended by TKGF.

 

3.     If issued, TKGF will grant standard

piggyback registration rights.

 

4.     All TKGF Common Shares shall be re-saleable

pursuant to Rule 144 (after the lapse of the applicable holding period).

 

 

(c)   TKGF agrees to issue warrants, exercisable at

$1.15 per TKGF Common Share, for the purchase of 60,000 TKGF Common Shares,

subject to the following:

(i)            The warrants shall carry a two (2)

year term;

(ii)           The TKGF Common Shares subject to the

warrants shall be resalable pursuant to Rule 144

(iii)          All shares issued shall contain

standard piggyback registration rights.

(d)   TKGF agrees

to pay Piedmont Consulting, Inc. a “finders fee” equal to 2% of any successful

financing or successful acquisition directly referred by Piedmont Consulting,

Inc.

5.             PERSONNEL.  Consultant is, and shall be, an independent

contractor, and no personnel utilized by Consultant in providing Services

hereunder (the “Personnel”) shall be deemed to be an employee or agent of TKGF.

Moreover, neither

consultant nor any such Personnel shall be empowered hereunder to act on behalf

of TKGF.  Consultant shall have sole and

exclusive responsibility and liability for, and to, such Personnel, and Consultant

alone shall be responsible to make, and shall make, all necessary or

appropriate employee contributions, withholdings and payments for all taxes,

insurance premiums, and social security contributions to be collected,

withheld, filed and paid with respect to all such Personnel; whether pursuant

to any social security, unemployment insurance, worker’s compensation law or

other federal, state, or local law now in force and effect, or hereinafter

enacted.

6.             NON-ASSIGNABILITY.  The rights, obligations and benefits

established by this Agreement shall not be assignable by either party

hereto.  This Agreement shall, however,

be binding upon and shall inure to the benefits of the parties and their

successors. 

7.             CONFIDENTIALITY.  Neither Consultant nor any of the Personnel,

its consultants, other employees, or officers or directors shall disclose any

knowledge or information it has, or they have obtained in the course of

performing the Services provided for herein, which knowledge or information

concerns the confidential affairs of TKGF with respect to TKGF’s business or

finances.

8.             COMPLIANCE

AND GOVERNING LAW. 

Consultant, together with its agents, employees and associates, shall

take all necessary, appropriate and reasonable steps to provide the Services in

accordance with both the securities laws of the United States and the several

States, and pursuant to the rules and regulations promulgated thereunder, as

well as in accordance with the rules and regulations of the National

Association of Securities Dealers, and Consultant agrees to indemnify and hold

harmless TKGF for any violation of the foregoing.  The terms and provisions of this Agreement will be enforced in

accordance with the laws of the State of Georgia, without regard to its

conflicts of law principles.

9.             NOTICE.  Notice hereunder shall be in writing and

shall be deemed to have been given (a) at a time when deposited for mailing in

a receptacle under the control of the United States Postal Service, by

registered or certified mail, prepaid, return receipt requested, or (b) on the

business day following deposit with a reputable overnight courier for overnight

delivery; each addressed to the respective party at the address as such party

may fix by notice given pursuant to this paragraph.

10.           NO OTHER AGREEMENTS.  This Agreement supersedes all prior

understandings, written or orally given including without limitation the

agreement dated April 30, 2001, which is hereby terminated and constitutes the

entire Agreement between the parties hereto with respect to the subject matter

hereof.  No waiver, modification or

termination of this Agreement shall be valid unless in writing signed by each

of the parties hereto.

                IN WITNESS

THEREOF, the parties have hereunto set their hands and seal the day

and year first above written.

 

 

 

	

  PIEDMONT

  CONSULTING, INC.

  	

  TEKGRAF

  INC.

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Keith Fetter

  	

   

  	

  By:

  	

  /s/ Tom Mason

  
	

   

  	

  Keith Fetter, President

  	

  Tom Mason, CFO

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