Document:

Exhibit 10.15  

MTR GAMING GROUP, INC.  

$130,000,000 93/4% Senior Notes due 2010  

PURCHASE AGREEMENT  

        March 19, 2003 

JEFFERIES &
COMPANY, INC.

WELLS FARGO SECURITIES, LLC

c/o Jefferies & Company, Inc.

11100 Santa Monica Boulevard

10th Floor 

Los Angeles, California 90025 

Ladies
and Gentlemen: 

        Each
of MTR Gaming Group, Inc., a Delaware corporation (the "Company"), and each Guarantor (as defined below) hereby agrees with
you as follows: 

        1.    Issuance of Securities. The Company proposes to issue and sell to the initial purchasers listed on  Schedule 1 hereto (each, an "Initial Purchaser" and, together, the
"Initial Purchasers"), and the Initial Purchasers propose to purchase, $130,000,000 aggregate principal amount of the Company's 93/4%
Senior Notes due 2010, Series A (the "Series A Notes"). The Series A Notes will be issued pursuant to an indenture (the
"Indenture"), to be dated as of the Closing Date (as defined below), among the Company, the Guarantors, and Wells Fargo Bank Minnesota, National
Association, as trustee (the "Trustee"). The Series A Notes and the Series B Notes (as defined below), each with the Guarantee (as defined
below) endorsed thereon, are collectively referred to herein as the "Notes." 

        Each
of the entities listed on Schedule 2 hereto and any future subsidiary guarantors party to the Indenture (such entities and
such future subsidiary guarantors, each a "Guarantor" and collectively the "Guarantors") will fully and
unconditionally guarantee on a senior unsecured basis the obligations under the Notes and the Indenture (the "Guarantees"), including the payment of
principal, interest, premium, if any, and Liquidated Damages (as defined in the Offering Circular), if any, on the Notes. The Company and the Guarantors are sometimes collectively referred to herein
as the "Company Entities." 

        The
Series A Notes will be offered and sold to the Initial Purchasers pursuant to an exemption from the registration requirements under the Securities Act of 1933, as amended (the
"Act"). The Company and the Guarantors have prepared a preliminary offering circular, dated March 10, 2003 (the
"Preliminary Offering Circular"), and a final offering circular, dated March 20, 2003 (the "Offering
Circular"), relating to the offer and sale of the Series A Notes (the "Offering"). 

        Upon
original issuance thereof, and until such time as the same is no longer required under the Indenture or the applicable requirements of the Act, the Series A Notes shall bear
the following legend: 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY, PRIOR TO THE DATE WHICH IS TWO YEARS (OR SUCH OTHER PERIOD THAT MAY
HEREAFTER BE PROVIDED UNDER RULE 144(k) UNDER THE SECURITIES ACT AS PERMITTING RESALES OF 

 

RESTRICTED SECURITIES BY NON-AFFILIATES WITHOUT RESTRICTION) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH EITHER OF THE COMPANY OR ANY AFFILIATE OF THE
COMPANY WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) (THE "RESALE RESTRICTION TERMINATION DATE") ONLY (A) TO THE COMPANY, (B) PURSUANT TO A REGISTRATION STATEMENT
WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A) THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (a)(1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THIS SECURITY FOR ITS OWN ACCOUNT, OR FOR THE
ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT OR
(F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (E) OR (F) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING
CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE AND IN EACH CASE IN ACCORDANCE WITH APPLICABLE SECURITIES LAWS OF
ANY U.S. STATE OR ANY OTHER APPLICABLE JURISDICTION. THE HOLDER OF THIS SECURITY AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
THIS LEGEND. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 

        2.    Agreements to Sell and Purchase. On the basis of the representations, warranties and agreements contained herein, and
subject to the terms and conditions hereof, the Company shall issue and sell to each of the Initial Purchasers (and, in order to induce the Initial Purchasers to purchase the Series A Notes,
the Guarantors shall enter into the Guarantees, and each of the Initial Purchasers, severally and not jointly, shall purchase from the Company, the principal amount of  Series A Notes set forth
opposite the name of such Initial Purchaser on Schedule 1 hereto. The purchase price for the Series A
Notes shall be 95.931% of the principal amount thereof. 

        3.    Terms of Offering. The Initial Purchasers have advised the Company that the Initial Purchasers will make offers to sell
(the "Exempt Resales") the Series A Notes purchased by the Initial Purchasers hereunder on the terms set forth in the Offering Circular, as
amended or supplemented, solely to persons whom the Initial Purchasers reasonably believe to be (a)"qualified institutional buyers," as defined in Rule 144A under the Act
("QIBs"), (b) persons permitted to purchase Series A Notes in offshore transactions in reliance upon Regulation S under the Act
(each, a "Regulation S Purchaser") or (c) a limited number of institutional "accredited investors," as defined in Rule 501(a)(1),
(2), (3) or (7) under the Act that make certain representations and warranties to the Company as set forth in the 

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Accredited Investor Letter attached as Annex A to the Offering Circular ("Accredited Investors" and, together with QIBs and Regulation S
Purchasers, "Eligible Purchasers"). 

        Holders
of the Series A Notes (including subsequent transferees) will have the registration rights set forth in the registration rights agreement (the
"Registration Rights Agreement"), to be executed on and dated as of the Closing Date. Pursuant to the Registration Rights Agreement, the Company and the
Guarantors will agree, among other things, to file with the Securities and Exchange Commission (the "Commission") under the circumstances set forth
therein (a) a registration statement under the Act (the "Exchange Offer Registration Statement") relating to, among other things, the
93/4% Senior Notes due 2010, Series B, of the Company (the "Series B Notes"), identical in all material respects to the
Series A Notes, including with respect to the Guarantees thereof (except that the Series B Notes shall have been registered pursuant to such registration statement), to be offered in
exchange for the Series A Notes (such offer to exchange being referred to as the "Registered Exchange Offer"), and (b) under certain
circumstances, a shelf registration statement pursuant to Rule 415 under the Act (the "Shelf Registration Statement") relating to the resale by
certain holders of the Series A Notes. 

        In
addition, in connection with the Offering, (i) the Company shall repay on the Closing Date with a portion of the proceeds from the Offering all amounts owed under its Second
Amended and Restated Credit Agreement with Wells Fargo, National Association (the "Existing Credit Facility"); and (ii) concurrently with or
shortly after the Closing Date, the Company expects to enter into a Third Amended and Restated Credit Agreement with Wells Fargo, National Association (the "New Credit
Facility"). 

        This
Agreement, the Indenture, the Registration Rights Agreement, the Notes and the Guarantees collectively are referred to herein as the "Operative
Documents." The New Credit Facility, together with the Operative Documents and all other documents or instruments executed by either of the Company or any of the Subsidiaries
in connection with the transactions contemplated thereby or by the Operative Documents, collectively are referred to herein as the "Transaction
Documents." The transactions contemplated by the Transaction Documents, including, without limitation, the Offering and the application of the proceeds therefrom as described
in the Offering Circular (including the repayment of all amounts owed under the Existing Credit Facility), the issuance and sale of the Notes in accordance with this Agreement and the borrowing (if
any) under the New Credit Facility, collectively are referred to herein as the "Transactions." 

        4.    Delivery and Payment. Delivery to the Initial Purchasers of and payment for the Series A Notes shall be made at a
Closing (the "Closing") to be held at 9:00 a.m., New York City time, on March 25, 2003, (such time and date, the
"Closing Date") at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036. The Closing Date and the
location of delivery of and the form of payment for the Series A Notes may be varied by agreement between the Initial Purchasers and the Company. 

        The
Company shall deliver to the Initial Purchasers one or more certificates representing the Series A Notes (the "Global
Securities"), each in definitive form, registered in the name of Cede & Co., as nominee of The Depository Trust Company
("DTC"), or such other names as the Initial Purchasers may request upon at least two Business Day's notice to the Company, in an amount corresponding to
the aggregate principal amount of the Series A Notes sold pursuant to Exempt Resales to QIBs and to Accredited Investors, respectively, in each case against payment by the Initial Purchasers of
the purchase price therefore by immediately available Federal funds bank wire transfer to such bank account as the Company shall designate to the Initial Purchasers at least two Business Days prior to
the Closing. "Business Day" means any day other than a Saturday, a Sunday or a day on which banking institutions in The City of New York or at a place
of payment are authorized by law, regulation or executive order to remain closed. 

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        The
Global Securities in definitive form shall be made available to the Initial Purchasers for inspection at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times
Square, New York, New York 10036 (or such other place as shall be acceptable to the Initial Purchasers) not later than 9:30 a.m., New York City time, one Business Day immediately preceding the
Closing Date. 

        5.    Agreements of the Company Entities. Each of the Company Entities, jointly and severally, hereby agrees: 

        (a)  Certain Events. To (i) advise the Initial Purchasers promptly after obtaining knowledge (and, if requested by the
Initial Purchasers, confirm such advice in writing) of (A) the issuance by any state securities commission of any stop order suspending the qualification or exemption from qualification of any
of the Series A Notes for offer or sale in any jurisdiction, or the initiation of any proceeding for such purpose by any state securities commission or other regulatory authority, and
(B) the happening of any event that makes any statement of a material fact made in the Offering Circular untrue or that requires the making of any additions to or changes in the Offering
Circular in order to make the statements therein, in the light of the circumstances under which they are made, not misleading, (ii) use its best efforts to prevent the issuance of any stop
order or order suspending the qualification or exemption from qualification of any of the Notes under any state securities or Blue Sky laws, and (iii) if at any time any state securities
commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of any of the Series A Notes under any such laws, use its best efforts
to obtain the withdrawal or lifting of such order at the earliest possible time. 

        (b)  Offering Circular. At any time prior to the completion of the resale by the Initial Purchasers of all of the
Series A Notes pursuant to Exempt Resales, to (i) furnish the Initial Purchasers and those persons identified by the Initial Purchasers to the Company, without charge, as many copies of
the Preliminary Offering Circular and the Offering Circular, and any amendments or supplements thereto, as the Initial Purchasers may reasonably request, and (ii) promptly prepare, upon the
Initial Purchasers' request, any
amendment or supplement to the Offering Circular that the Initial Purchasers deem may be necessary in connection with Exempt Resales (and the Company Entities hereby consent, subject to the Initial
Purchasers' compliance with their representations and warranties set forth in Section 7, to the use of the Preliminary Offering Circular and the Offering Circular, and any amendments and
supplements thereto, by the Initial Purchasers in connection with Exempt Resales). 

        (c)  Notice of Amendment or Supplement. Not to amend or supplement the Offering Circular prior to the Closing Date, or at any
time prior to the completion of the resale by the Initial Purchasers of all of the Series A Notes, unless the Initial Purchasers shall previously have been advised thereof and shall not have
objected thereto within three Business Days after being furnished a copy thereof. 

        (d)  Preparation of Amendments and Supplements. At any time prior to the completion of the resale by the Initial Purchasers of
all of the Series A Notes pursuant to Exempt Resales, (i) if any event shall occur as a result of which, in the reasonable judgment of the Company or the Initial Purchasers or their
respective counsel, it becomes necessary or advisable to amend or supplement the Offering Circular in order to make the statements therein, in the light of the circumstances under which they were made
and when such Offering Circular is delivered to an Eligible Purchaser, not misleading, or if it is necessary to amend or supplement the Offering Circular to comply with Applicable Law (as defined
below), forthwith to prepare an appropriate amendment or supplement to the Offering Circular (in form and substance satisfactory to the Initial Purchasers) so that as so amended or supplemented,
(A) the Offering Circular will not include an untrue statement of material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made and when such 

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Offering Circular is so delivered, not misleading, and (B) the Offering Circular will comply with Applicable Law, and (ii) if it becomes necessary or advisable to amend or supplement
the Offering Circular so that the Offering Circular will contain all of the information specified in, and meet the requirements of, Rule 144A(d)(4) under the Act, forthwith to prepare an
appropriate amendment or supplement to the Offering Circular (in form and substance satisfactory to the Initial Purchasers) so that the Offering Circular, as so amended or supplemented, will contain
the information specified in, and meet the requirements of, such Rule. 

        (e)  Qualification of Securities. Prior to the completion of the resale by the Initial Purchasers of all of the
Series A Notes pursuant to Exempt Resales, to cooperate with the Initial Purchasers and the Initial Purchasers' counsel in connection with the qualification of the Series A Notes under
the securities or Blue Sky laws of such jurisdictions as the Initial Purchasers may request and continue such qualification in effect so long as reasonably required for Exempt Resales, and to file
such consents to service of process or other documents as may be necessary in order to effect such qualification; provided, that none of the Company
Entities shall be required in connection therewith to file any general consent to service of process or to register or qualify as a foreign corporation in any jurisdiction where it is not now so
qualified or to subject itself to general taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject. 

        (f)    Costs and Expenses. Whether or not any of the Transactions are consummated or this Agreement is terminated, to pay
(i) all costs, expenses, fees and taxes incident to and in connection with the performance of the obligations of the Company Entities under this Agreement, including: (A) the
preparation, printing and distribution of the Preliminary Offering Circular and the Offering Circular and all amendments and supplements thereto (including, without limitation, financial statements
and exhibits), and all preliminary and final Blue Sky memoranda and all other agreements, memoranda, correspondence and other documents prepared and delivered in connection herewith (including the
furnishing of copies of the foregoing to the Initial Purchasers and such other persons as the Initial Purchasers may designate), (B) the printing, processing and distribution (including,
without limitation, word processing and duplication costs) and delivery of, and performance under, each of the Transaction Documents and any other agreements or documents in connection with the
Transactions, (C) the preparation, issuance and delivery of the Notes, including the fees and expenses of the Trustee (including reasonable fees and expenses of its counsel) and the cost of
their respective personnel, and all costs and expenses related to the delivery of the Notes to the Initial Purchasers and pursuant to Exempt Resales, including any transfer or other taxes payable
thereon, and (D) the qualification of the Notes for offer and sale under the securities or Blue Sky laws of the several states (including, without limitation, filing fees and reasonable fees
and disbursements of the Initial Purchasers' counsel relating to such registration or qualification and the preparation of memoranda related thereto); (ii) all fees and expenses of the counsel
and accountants of the Company Entities; (iii) all expenses and listing fees in connection with the application for quotation of the Series A Notes in The Portal Market
("PORTAL") of the National Association of Securities Dealers, Inc. (the "NASD"); (iv) all
fees and expenses (including fees and expenses of counsel) of the Company in connection with approval of the Notes by DTC for "book-entry" transfer; (v) all fees charged by rating
agencies in connection with the rating of the Notes; (vi) the costs and charges of any transfer agent, registrar and/or depositary (including DTC); (vii) all costs and expenses of the
Registered Exchange Offer, the Exchange Offer Registration Statement and any Shelf Registration Statement, as set forth in the Registration Rights Agreement; (viii) all fees and expenses
(including reasonable fees and expenses of counsel, subject to any limitations set forth in the engagement letter between the Company and the Initial Purchasers) incurred by the Initial Purchasers in
connection with the preparation, negotiation and execution of the Transaction Documents and the consummation of the Transactions; and (ix) all other costs and expenses incident and necessary to
the performance 

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of the obligations of the Company Entities for which provision is not otherwise made in this section. 

        (g)  Use of Proceeds. To use its reasonable best efforts to use the proceeds from the sale of the Series A Notes in the
manner described in the Offering Circular under the caption "Use of Proceeds." 

        (h)  Waiver of Certain Laws. To the extent it may lawfully do so, not to insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension usury or other law, wherever enacted, now or at any time hereafter in force, that would prohibit or forgive the payment of all or any portion
of the principal of or interest on the Notes, or that may affect the covenants or the performance of the Indenture (and, to the extent it may lawfully do so, the Company hereby expressly waives all
benefit or advantage of any such law, and covenants that it shall not, by resort to any such law, hinder, delay or impede the execution of any power granted to the Trustee in the Indenture but shall
suffer and permit the execution of every such power as though no such law had been enacted). 

        (i)    Integration. Not to, and to ensure that no affiliate (as defined in Rule 501(b) under the Act) of any of the
Company Entities will, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any "security" (as defined in the Act) that would be integrated with the sale of the
Series A Notes in a manner that would require the registration under the Act of the sale to the Initial Purchasers or of the offers or sales of Series A Notes pursuant to Exempt Resales. 

        (j)    Rule 144A Information. For so long as any of the Series A Notes remain outstanding, during any period in
which the Company is not subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to make
available, upon request, to any holder of the Notes in connection with any sale thereof and any prospective Eligible Purchaser of such Notes from such holder, the information required by
Rule 144A(d)(4) under the Act. 

        (k)  DTC. To obtain the approval of DTC for "book entry" transfer of the Notes, and to comply with the representation letter
of the Company and the Guarantors to DTC relating to the approval of the Notes by DTC for "book entry" transfer. 

        (l)    PORTAL. To use its best efforts to effect the inclusion of the Series A Notes in PORTAL and to use its best
efforts to maintain the listing of the Series A Notes on PORTAL for so long as the Series A Notes are outstanding. 

        (m)  Reporting Requirements. For so long as any of the Notes are outstanding, and whether or not required to do so by the
rules and regulations of the Commission, (i) to furnish to the Trustee and deliver or cause to be delivered to the holders of the Notes and the Initial Purchasers, within 15 days after
the Company is or would have been required to file such with the Commission, (i) all quarterly and annual financial information that would be required to be contained in a filing with the
Commission on Forms 10-Q and 10-K if the Company were required to file such Forms, including for each a "Management's Discussion and Analysis of Financial Condition and Results
of Operations" and, with respect to the annual information only, a report thereon by the Company's independent certified public accountants and (B) all information that would be required to be
contained in a filing with the Commission on Form 8-K if the Company were required to file such reports, and (ii) from and after the time the Exchange Offer Registration
Statement or the Shelf Registration Statement (or other registration statement under the Act with respect to the Notes) is filed with the Commission, to file such information with the Commission so
long as the Commission will accept such filings. 

        (n)  No Selling Efforts or General Solicitation. Except in connection with the Registered Exchange Offer or the filing of the
Shelf Registration Statement, not to, and not to authorize or permit any person acting on its behalf to, (i) distribute any offering material in connection with the 

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offer and sale of the Series A Notes other than the Preliminary Offering Circular and the Offering Circular and any amendments and supplements to the Offering Circular prepared in compliance
with Section 5(d), or (ii) solicit any offer to buy or offer to sell the Series A Notes by means of any form of general solicitation or general advertising (including, without
limitation, as such terms are used in
Regulation D under the Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Act. 

        (o)  No Similar Offerings. Not to, and to ensure that no affiliate (as defined in Rule 501(b) of the Act) of the
Company will, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any "security" (as defined in the Act) that would be integrated with the sale of the Series A
Notes in a manner that would require the registration under the Act of the sale to the Initial Purchasers or to the Eligible Purchasers of the Series A Notes. 

        (p)  ERISA. At any time prior to the completion of the resale by the Initial Purchasers of the Series A Notes, to
notify the Initial Purchasers promptly in writing if any of the Company Entities or any of their Affiliates becomes a party in interest or a disqualified person with respect to any employee benefit
plan, other than any plan set forth in Schedule 6(jj) hereto, and to identify such plans. The terms "ERISA," "Affiliates," "party in interest,"
"disqualified person" and "employee benefit plan" shall have the meanings as set forth in Section 6(jj) hereof. 

        (q)  Performance of Agreements. To comply with all of its agreements set forth in the Transaction Documents in all material
respects, and to use its reasonable best efforts to do and perform all things required or necessary to be done and performed under the Operative Documents by it prior to the Closing Date and to
satisfy all conditions precedent to the delivery of the Series A Notes and the Guarantees. 

        6.    Representations and Warranties of the Company Entities. Each of the Company Entities, jointly and severally, represents
and warrants to the Initial Purchasers that: 

        (a)  Offering Circular. The Preliminary Offering Circular as of its date did not, and the Offering Circular, as of its date
does not and as of the Closing Date will not, and each supplement or amendment thereto as of its date will not, contain any untrue statement of a material fact or omit to state any material fact
(except, in the case of the Preliminary Offering Circular, for pricing terms and other financial terms intentionally left blank) necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The foregoing representation and warranty made in this Section 6(a) shall not apply to any statements or omissions made in reliance on
and in conformity with information relating to the Initial Purchasers furnished in writing to the Company by the Initial Purchasers specifically for inclusion in the Preliminary Offering Circular or
the Offering Circular. The parties hereto acknowledge that for purposes of this Agreement (including this Section 6(a) and Section 8) the only information furnished in writing to the
Company by the Initial Purchasers specifically for inclusion in the Preliminary Offering Circular or the Offering Circular is the information set forth (i) on the cover page of the Offering
Circular with respect to the price of the Notes, (ii) in the 3rd paragraph on page 110 of the Offering Circular concerning offering the Notes for resale by the Initial Purchasers,
(iii) in the 4th paragraph on page 110 of the Offering Circular concerning
market-making by the Initial Purchasers, (iv) in the 5th paragraph on page 110 of the Offering Circular concerning stabilization by the Initial Purchaser and (v) in the
7th paragraph on page 111 of the Offering Circular concerning the affiliation of the Initial Purchasers and their respective affiliates with the Company and its affiliates (such
information described in the immediately preceding clauses (i) through (v) of this Section 6(a), the "Furnished Information"). Each
of the Preliminary Offering Circular and the Offering Circular, as of their respective dates contained, and the Offering Circular, as of the Closing Date and as amended or supplemented, will contain,
all of the information specified in, and meet the requirements of, Rule 144A(d)(4) under the Act. Each of 

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the Transaction Documents, as executed and delivered, and each of the Transactions conforms to the description thereof in the Offering Circular. 

        (b)  144A Eligibility. When the Series A Notes and the Guarantees are issued and delivered pursuant to this Agreement,
neither the Series A Notes nor the Subsidiary Guarantees will be of the same class (within the meaning of Rule 144A under the Act) as any security of the Company or the Guarantors that
is listed on a national securities exchange registered under Section 6 of the Exchange Act or that is quoted in a United States automated inter-dealer quotation system. 

        (c)  Due Organization; Good Standing. Each of the Company Entities (i) has been duly organized, is validly existing and
is in good standing under the laws of its jurisdiction of organization, (ii) has all requisite power and authority to conduct and carry on its business and to own, lease, use and operate its
properties and assets as described in the Offering Circular, and (iii) is duly qualified or licensed to do business and is in good standing as a foreign corporation, authorized to do business
in each jurisdiction in which the nature of its business or the ownership, leasing, use or operation of its properties and assets requires such qualification or licensing, except where the failure to
be so qualified or licensed would not, singly or in the aggregate, have a material adverse effect on (A) the properties, business, operations, earnings, assets, liabilities or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole, (B) the ability of any of the Company Entities to perform its obligations under any of the Transaction Documents
or (C) the validity of any of the Transaction Documents or the consummation of any of the Transactions (each, a "Material Adverse Effect"). 

        (d)  Subsidiaries. Immediately following the Closing, the only subsidiaries of the Company will be the direct or indirect
subsidiaries of the Company listed on Schedule 6(d) hereto (collectively, the "Subsidiaries" and
each, a "Subsidiary") and the Company will directly own 100% of the outstanding shares of capital stock in each Subsidiary, in each case, free and clear
of all Liens (as defined in the Offering Circular), except Permitted Liens (as defined in the Offering Circular). Except as disclosed in the Offering Circular, there are no outstanding
(i) securities convertible into or exchangeable for any capital stock of any of the Company Entities or any of the Subsidiaries, (ii) options, warrants or other rights to purchase or
subscribe for any capital stock or any securities convertible into or exchangeable for any capital stock of any of the Company Entities or (iii) contracts, commitments, agreements,
understandings, arrangements, undertakings, rights, calls or claims of any kind relating to the issuance of any capital stock of any of the Company Entities or any of the Subsidiaries, any such
convertible or exchangeable securities or any such options, warrants or rights. Except as set forth above, immediately following the Closing, none of the Company Entities will directly or indirectly
own any capital stock of or other equity interest in any person. 

        (e)  Capitalization. All of the outstanding shares of capital stock of each of the Company and each of the Subsidiaries have
been duly authorized, are validly issued, fully paid and nonassessable, and were not issued in violation of, and are not subject to, any preemptive or similar rights. The table under the caption
"Capitalization" in the Offering Circular (including the footnotes thereto) sets forth, as of its date, the pro forma capitalization of the Company and the Subsidiaries, on a consolidated basis, after
giving effect to the Transactions. Immediately following the Closing, except as set forth in such table, neither of the Company nor any of the Subsidiaries will have any liabilities, absolute,
accrued, contingent or otherwise other than: (i) liabilities that are reflected in the Company Financial Statements (as defined below), (ii) loans made under the New Credit Facility or
(iii) liabilities incurred subsequent to September 30, 2002, in the ordinary course of business, consistent with past practice, that would not, singly or in the aggregate, have a
Material Adverse Effect.). 

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        (f)    No Other Registration Rights. Except for this Agreement and the Registration Rights Agreement and, except for
(i) agreements between the Company and its directors and officers relating to the registration of shares underlying stock options granted in the ordinary course of the Company's business and
(ii) registration of Track Contingent Earnout Payments (as defined in the Offering Circular) in connection with the Company's acquisition of Scioto Downs, Inc., there are no contracts,
commitments, agreements, arrangements, understandings or undertakings of any kind to which any of the Company Entities or any of the Subsidiaries is a party, or by which any of them is bound, granting
to any person the right (i) to require either of the Company or any Subsidiary to file a registration statement under the Act with respect to any securities of either of the Company of
any Subsidiary or requiring either of the Company or any Subsidiary to include such securities with the Notes registered pursuant to any registration statement, or (ii) to purchase or offer to
purchase any securities of any of the Company Entities or any of their respective affiliates. 

        (g)  Power and Authority. Each of the Company Entities has all requisite power and authority to execute and deliver, and to
perform its obligations under, the Transaction Documents to which it is a party and to consummate the Transactions. 

        (h)  Authorization of this Agreement. This Agreement and the Transactions contemplated hereby (including, without limitation,
the Offering and the issuance and sale of the Notes in accordance with this Agreement) have been duly authorized by each of the Company Entities, and this Agreement has been validly executed and
delivered by, and is the legal, valid and binding obligation of, each of the Company Entities, enforceable against each of the Company Entities in accordance with its terms, except that
(i) such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally, (ii) any rights of acceleration and the availability of
equitable remedies may be subject to general principles of equity (whether considered in a proceeding in equity or at law), and (iii) the enforceability of the provisions of Section 8
providing for the indemnification of or contribution to a party with respect to a liability may be limited if such provisions violate or are contrary to public policy under applicable law. 

        (i)    Authorization of Indenture. The Indenture and the Transactions contemplated thereby have been duly authorized by each of
the Company and the Guarantors and, on the Closing Date, the Indenture will have been validly executed and delivered by, and will be the legal, valid and binding obligation of, each of the Company and
the Guarantors, enforceable against each of the Company and the Guarantors in accordance with its terms, except that (i) such enforceability may be limited by applicable bankruptcy, insolvency
or similar laws affecting creditors' rights generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles of equity (whether
considered in a proceeding in equity or at law). On the Closing Date, the Indenture will conform to the requirements of the Trust Indenture Act of 1939, as amended (the
"TIA"), applicable to an indenture that is required to be qualified under the TIA. 

        (j)    Authorization of Registration Rights Agreement. The Registration Rights Agreement and the Transactions contemplated
thereby have been duly authorized by each of the Company and the Guarantors and, on the Closing Date, the Registration Rights Agreement will have been validly executed and delivered by, and will be
the legal, valid and binding obligation of, each of the Company and the Guarantors, enforceable against each of the Company and the Guarantors in accordance with its terms, except that (i) such
enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights generally, (ii) any rights of acceleration and the availability of equitable
remedies may be subject to general principles of equity (whether considered in a proceeding in equity or at law), and (iii) the enforceability of the provisions of Section 8 thereof
providing for the indemnification of or contribution to a party with 

9

 

respect to a liability may be limited if such provisions violate or are contrary to public policy under applicable law. 

        (k)  Authorization of Series A Notes. The Series A Notes have been duly authorized by the Company for issuance
and sale to the Initial Purchasers pursuant to this Agreement and, on the Closing Date, will have been validly executed, authenticated, issued and delivered by the Company in accordance with the terms
of this Agreement and the Indenture. When the Series A Notes have been issued, executed and authenticated in accordance with the terms of the Indenture and delivered to and paid for by the
Initial Purchasers in accordance with the terms of this Agreement, the Series A Notes will be legal, valid and binding obligations of the Company, entitled to the benefits of the Indenture and
enforceable against the Company in accordance with their terms, except to the extent that (i) such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting
creditors' rights generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles of equity (whether considered in a proceeding in
equity or at law). The Series A Notes rank and will rank on a parity with all senior Indebtedness (as defined in the Offering Circular) of the Company that is outstanding on the date hereof or
that may be incurred hereafter and senior to all subordinated Indebtedness of the Company that is outstanding on the date hereof or that may be incurred hereafter. 

        (l)    Authorization of Series B Notes. The Series B Notes have been duly authorized by the Company and, when
issued in the Registered Exchange Offer, (A) will have been validly executed, authenticated, issued and delivered in accordance with the terms of the Indenture, the Registration Rights
Agreement and the Registered Exchange Offer and (B) will be legal, valid and binding obligations of the Company,
entitled to the benefits of the Indenture and enforceable against the Company in accordance with their terms, except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles
of equity (whether considered in a proceeding in equity or at law). The Series B Notes rank and will rank on a parity with all senior Indebtedness of the Company that is outstanding on the date
hereof or that may be incurred hereafter and senior to all subordinated Indebtedness of the Company that is outstanding on the date hereof or that may be incurred hereafter. 

        (m)  Authorization of Guarantees of Series A Notes. The Guarantee to be endorsed on the Series A Notes by each
Guarantor has been duly authorized by each such Guarantor and, on the Closing Date, will have been validly executed and delivered by each such Guarantor in accordance with the terms of the Indenture.
When the Series A Notes have been issued, executed and authenticated in accordance with the terms of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the
terms of this Agreement, the Guarantee of each Guarantor endorsed on the Series A Notes will be the legal, valid and binding obligation of each such Guarantor, enforceable against each such
Guarantor in accordance with its terms, except to the extent that (i) such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles of equity (whether considered in a proceeding in equity or at law).
The Guarantees to be endorsed on the Series A Notes rank and will rank on a parity with all senior Indebtedness of the Guarantors that is outstanding on the date hereof or that may be incurred
hereafter and senior to all subordinated Indebtedness of the Guarantors that is outstanding on the date hereof or that may be incurred hereafter. 

        (n)  Authorization of Guarantees of Series B Notes. The Guarantee to be endorsed on the Series B Notes by each
Guarantor has been duly authorized by each such Guarantor and, when the Series B Notes are issued, will have been validly executed and delivered by each such 

10

 

Guarantor in accordance with the terms of the Indenture, the Registration Rights Agreement and the Registered Exchange Offer. When the Series B Notes have been issued, executed and
authenticated in accordance with the terms of the Registered Exchange Offer and the Indenture, the Guarantee of each Guarantor endorsed on the Series B Notes will be the legal, valid and
binding obligation of each such Guarantor, enforceable against each such Guarantor in accordance with its terms, except to the extent that (i) such enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting creditors' rights generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles
of equity (whether considered in a proceeding in equity or at law). The Guarantees to be endorsed on the Series B Notes will rank on a parity with all senior Indebtedness of the Guarantors that
is outstanding on the date hereof or that may be incurred hereafter and senior to all Subordinated Indebtedness of the Guarantors that is outstanding on the date hereof or that may be incurred
hereafter. 

        (o)  Authorization of the New Credit Facility. The New Credit Facility and the Transactions contemplated thereby have been
duly authorized by the Company and each Guarantor party thereto, and when the New Credit Facility is entered into, the New Credit Facility will have been validly executed and delivered by the Company
and each Guarantor party thereto. When the New Credit Facility has been
executed and delivered by the Company and each Guarantor party thereto, and assuming the due authorization, execution and delivery of the New Credit Facility by parties thereto other than the Company
and the Guarantors party thereto, the New Credit Facility will be the legal, valid and binding obligation of, the Company and each Guarantor party thereto, enforceable against the Company and each
Guarantor party thereto in accordance with its terms, except that (i) such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors' rights
generally and (ii) any rights of acceleration and the availability of equitable remedies may be subject to general principles of equity (whether considered in a proceeding in equity or at law). 

        (p)  No Violation. The Company is not in violation of its certificate of incorporation or bylaws (the
"Company Charter Documents"), and none of the Guarantors is in violation of its certificate of incorporation or bylaws (the
"Guarantor Charter Documents" and, collectively with the Company Charter Documents, the "Charter
Documents"). Neither the Company nor any of the Subsidiaries is (i) in violation of any federal, state, local or foreign statute, law or ordinance, or any judgment,
decree, rule, regulation or order, including, without limitation, the West Virginia Racing Commission, the West Virginia Lottery Commission, the Nevada Gaming Commission, the Nevada State Gaming
Control Act, the Pennsylvania State Horse Racing Commission and the Ohio State Racing Commission, in each case including the rules and regulations promulgated thereunder (collectively,
"Applicable Law"), of any government, governmental or regulatory agency or body (including, without limitation, the West Virginia Racing Commission, the
West Virginia Lottery Commission, the Nevada Gaming Commission, the Nevada State Gaming Control Board, the Pennsylvania State Horse Racing Commission, the Ohio State Racing Commission or other
applicable gaming authority (each, a "Gaming/Racing Authority")), court, arbitrator or self-regulatory organization, domestic or foreign
(each, a "Governmental Authority"), other than violations that would not, singly or in the aggregate, have a Material Adverse Effect, or (ii) in
breach of or default under any bond, debenture, note or other evidence of indebtedness, indenture, mortgage, deed of trust, lease or any other agreement or instrument to which any such person is a
party or by which any of them or any of their respective property is bound (collectively, "Applicable Agreements"), other than breaches or defaults that
would not, singly or in the aggregate, have a Material Adverse Effect. There exists no condition that, with the passage of time or otherwise, would (x) constitute a violation of such Charter
Documents or Applicable Laws or (y) constitute a breach of or default under any Applicable Agreement or (z) result in the imposition of any penalty or the acceleration of any
indebtedness, other than, in the case of the 

11

 

immediately preceding clauses (y) and (z), such breaches, penalties or defaults that would not, singly or in the aggregate, have a Material Adverse Effect. All Applicable Agreements are in
full force and effect and are legal, valid and binding obligations, and no default has occurred or is continuing thereunder, other than such defaults that would not, singly or in the aggregate, have a
Material Adverse Effect. 

        (q)  No Conflict. None of the execution, delivery or performance of any of the Transaction Documents, nor the compliance with
the terms and provisions thereof, nor the consummation of any of the Transactions shall conflict with, violate, constitute a breach of or a default (with the passage of time or otherwise) under,
result in the imposition of a Lien on any assets or capital stock of or membership interests in either of the Company or any of the Subsidiaries (except as created by the Indenture), or result in an
acceleration of indebtedness under or pursuant to, (i) the Charter Documents, (ii) any Applicable Agreement or (iii) any Applicable Law. After giving effect to the Transactions,
no Default or Event of Default (each, as defined in the Offering Circular) will exist. 

        (r)  Permits. No permit, certificate, authorization, approval, consent, license or order of, or filing, registration,
declaration or qualification with, any Governmental Authority or any other person (collectively, "Permits") is required in connection with, or as a
condition to, the execution, delivery or performance of any of the Transaction Documents, the compliance with the terms and provisions thereof or the consummation of any of the Transactions, other
than (i) such Permits as have been made or obtained on or prior to the Closing Date, which Permits are in full force and effect on the Closing Date, (ii) the filing and approval of
(A) the Exchange Offer Registration Statement and, if required by the Registration Rights Agreement, the Shelf Registration Statement and (B) the Guarantee of the Series B Notes
by Speakeasy Gaming of Las Vegas, Inc., with the Nevada Gaming Commission and the Nevada Gaming Control Board, (iii) the order of the Commission declaring the Exchange Offer Registration
Statement or the Shelf Registration Statement, as the case may be, effective (the Permits described in clause (ii) and (iii) of this Section 6(r), collectively, the
"Post-Closing Permits") and (iv) such Permits the failure of which to make or obtain would not, singly or in the aggregate, have a
Material Adverse Effect. 

        (s)  No Proceedings. Except as disclosed in the Offering Circular, there is no action, claim, suit, demand, hearing, notice of
violation or deficiency, or proceeding (including, without limitation, any investigation or partial proceeding, such as a deposition), domestic or foreign (collectively,
"Proceedings"), pending or, to the knowledge of the Company Entities, threatened (i) either with respect to any of the Company Entities in
connection with, or that seeks to restrain, enjoin, prevent the consummation of, or otherwise challenge, any of the Transaction Documents or any of the Transactions, or (ii) that could, singly
or in the aggregate, have a Material Adverse Effect. None of the Company Entities is subject to any judgment, order, decree, rule or regulation of any Governmental Authority that could, singly or in
the aggregate, have a Material Adverse Effect. No injunction or order has been issued and no Proceeding is pending or, to the knowledge of the Company Entities, threatened that (i) asserts that
the offer, sale and delivery of the Series A Notes and the Guarantees to the Initial Purchasers pursuant to this Agreement or the initial resale of the Series A Notes and the Guarantees
by the Initial Purchasers in the manner contemplated by this Agreement is subject to the registration requirements of the Act, or (ii) would prevent or suspend the issuance or sale of the
Notes, including the Exempt Resales, or the use of the Preliminary Offering Circular, the Offering Circular, or any amendment or supplement thereto, in any jurisdiction. 

        (t)    Regulated Persons. Except with respect to planned operations in Pennsylvania and Ohio, each of the Company Entities and
each of their respective directors, members, managers, officers, employees and agents (each of the Company Entities and each of such other persons, a "Regulated
Person" and, collectively, the "Regulated Persons") has, and is in compliance with the terms and 

12

 

conditions of, all Permits (including, without limitation, Permits with respect to engaging in gaming and/or racing operations, as applicable and, if required, Permits from the Ohio State Racing
Commission), necessary or advisable to own, lease, use and operate the properties and assets and to conduct and carry on the businesses described in the Offering Circular, other than (i) such
Permits the failure of which to have would not, singly or in the aggregate, have a Material Adverse Effect and (ii) Post-Closing Permits. All such Permits are valid and in full
force and effect. Each of the Regulated Persons is in compliance with the terms and conditions of all Permits (including, without limitation, Permits with respect to engaging in gaming and/or racing
operations, as applicable) necessary or advisable to own, lease, use and operate the properties and assets and to conduct and carry on the
businesses described in the Offering Circular, other than where such failure to be in compliance would not, singly or in the aggregate, have a Material Adverse Effect. None of the execution, delivery
or performance of any of the Transaction Documents, nor the compliance with the terms and provisions thereof, nor the consummation of any of the Transactions will allow or result in, and no event has
occurred which allows or results in, or after notice or lapse of time would allow or result in, the imposition of any material penalty under, or the revocation or termination of, any such Permit or
any material impairment of the rights of the holder of any such Permit. None of the Company Entities has any reason to believe that any issuer is considering limiting, conditioning, suspending,
modifying, revoking or not renewing any such Permit. 

        (u)  No Investigations of Regulated Persons. To the knowledge of the Company Entities, (i) no Governmental Authority is
investigating any Regulated Person, and (ii) there is no basis for any of the Gaming/Racing Authorities to deny the renewal of the current Permits held by any of the Regulated Persons, except
for (A) customary investigations of Nevada-regulated Company Entities by the Nevada State Gaming Control Board and the Nevada Gaming Commission in connection with a new application process to
obtain necessary Permits for gaming operations following the expiration of the current limited Permits in October 2003 or (B) ordinary course investigations. 

        (v)  Title to Assets. Immediately following the Closing, each of the Company and the Subsidiaries (i) will have good
and marketable title, free and clear of all Liens (other than Permitted Liens), to all property and assets described in the Offering Circular as being owned by it, (ii) will enjoy peaceful and
undisturbed possession under all leases to which it is a party as lessee and (iii) will hold a valid leasehold interest with respect to each such lease. 

        (w)  Sufficiency and Condition of Assets. The assets of each of the Company and the Subsidiaries include all of the assets and
properties necessary or required in, or otherwise material to, the conduct of the businesses of each of them as currently conducted and as proposed to be conducted, and such assets are in working
condition, except where the failure of such assets to be in working condition would not, singly or in the aggregate, have a Material Adverse Effect. 

        (x)  Insurance. Each of the Company and the Subsidiaries maintains reasonably adequate insurance covering its properties,
operations, personnel and businesses against losses and risks in accordance with customary industry practice. All such insurance is outstanding and duly in force. 

        (y)  Real Property. No condemnation, eminent domain, or similar proceeding exists, is pending or, to the knowledge of the
Company Entities, is threatened, with respect to or that could affect any properties or assets of either of the Company or any of the Subsidiaries, except for such proceedings as would not, singly or
in the aggregate, have a Material Adverse Effect. Other than as set forth in Schedule 6(y), no owned real property of either of the Company or
any of the Subsidiaries is subject to any sales contract, option, right of first refusal or similar agreement or arrangement with any third party. There is no real property currently under contract or
subject to an option in favor of any of the Company or any of the Subsidiaries, except for (i) real property 

13

 

which the failure of the Company or any of the Subsidiaries to acquire, would not, singly or in the aggregate, have a Material Adverse Effect, and (ii) the real property listed on  Schedule 6(y) hereto. 

        (z)  Related Party Transactions. Except as adequately disclosed in the Offering Circular, there are no material related party
transactions between any of the Company Entities and (i) any director (or nominee for election as a director) or executive officer of any of the Company Entities, (ii) any beneficial or
record owner of more than five percent of any class of the Company's voting securities or (iii) any member of the immediate family of any of the foregoing persons. 

        (aa)
Taxes. All tax returns required to be filed by either of the Company or by any of the Subsidiaries in any jurisdiction (including
foreign jurisdictions) have been filed and, when filed, all such returns were accurate in all material respects, and all taxes, assessments, fees and other charges (including, without limitation,
withholding taxes, penalties and interest) due or claimed to be due from either of the Company or from any of the Subsidiaries have been paid, other than those being contested in good faith by
appropriate proceedings, or those that are currently payable without penalty or interest and, in each case, for which an adequate reserve or accrual has been established on the books and records of
the Company or the Subsidiaries, as applicable, in accordance with generally accepted accounting principles of the United States, consistently applied
("GAAP"). There are no actual or proposed additional tax assessments for any tax period against either of the Company or against any of the Subsidiaries
that could, singly or in the aggregate, have a Material Adverse Effect. The charges, accruals and reserves on the books and records of the Company and the Subsidiaries, as applicable, in respect of
any tax liability for any tax periods not finally determined are adequate to meet any assessments of tax or re-assessments of additional tax for any such period. 

        (bb)
Intellectual Property. Other than as would not, singly or in the aggregate, have a Material Adverse Effect, the Company and the
Subsidiaries own, possess or are licensed under, and have the right to use, all patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other
unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names (collectively, "Intellectual
Property") currently used in, or necessary for the conduct of, their businesses, free and clear of all Liens, other than Permitted Liens. To the knowledge of the Company
Entities, no claims have been asserted by any person challenging the use of any such Intellectual Property by any of the Company or the Subsidiaries or questioning the validity or effectiveness of any
license or agreement related thereto, and there is no valid basis for any such claim, and the use of such Intellectual Property by the Company and the Subsidiaries will not infringe on the
Intellectual Property rights of any other person. 

        (cc)
Accounting Controls. Each of the Company and the Subsidiaries maintains a system of internal accounting controls sufficient to
provide reasonable assurance that (i) material transactions are executed in accordance with management's general or specific authorization, (ii) material transactions are recorded as
necessary to permit preparation of financial statements in conformity with GAAP, and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's
general or specific authorization, and (iv) the recorded accountability for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any material differences. 

        (dd)
Financial Statements. The audited historical consolidated financial statements and related notes of the Company and the Subsidiaries
contained in the Offering Circular (the "Company Audited Financial Statements") and the unaudited condensed consolidated financial statements and
related notes of the Company and the Subsidiaries contained in the Offering Circular (the "Company Interim Financial Statements" and, together with the
Company Audited Financial 

14

 

Statements, the "Company Financial Statements") present fairly the consolidated financial position, results of operations and cash flows of the Company
and the Subsidiaries, as of the respective dates and for the respective periods to which they apply, and have been prepared in accordance with GAAP consistently applied throughout the periods involved
and the requirements of Regulation S-X that would be applicable if the Offering Circular were a prospectus included in a registration statement on Form S-1 filed
under the Act (the "S-X Requirements"). The summary historical financial data included in the Offering Circular for the Company and the
Subsidiaries have been prepared on a basis consistent with that of the Company Financial Statements and present fairly the financial position and results of operations of the Company and the
Subsidiaries, on a consolidated basis, as of the respective dates and for the respective periods indicated. 

        All
other financial, statistical and market and industry related data included in the Offering Circular are fairly and accurately presented in all material respects and are based on or
derived from sources the Company believe to be reliable and accurate. Ernst & Young LLP are independent public accountants with respect to the Company. 

        (ee)
No Material Adverse Change. Subsequent to the respective dates as of which information is given in the Offering Circular, except as
adequately disclosed in the Offering Circular, (i) neither of the Company nor any of the Subsidiaries has incurred any liabilities, direct or contingent, that are material, singly or in the
aggregate, to any of them, or has entered into any material transactions not in the ordinary course of business, (ii) there has not been any decrease in the capital stock, or any material
increase in long-term indebtedness or any material increase in short-term indebtedness of any of the Company or the Subsidiaries, or any payment of or declaration to pay any
dividends or any other distribution with respect to any of the Company or the Subsidiaries (other than dividends or distributions between the Company and any of the Guarantors), and (iii) there
has not been any material adverse change in the properties, business, prospects, operations, earnings, assets, liabilities or condition (financial or otherwise) of the Company and the Subsidiaries
taken as a whole (each of clauses (i), (ii) and (iii), a "Material Adverse Change"). Except as disclosed in the Offering Circular, there is no
event that has occurred or that is reasonably likely to occur which, if it were to occur, could reasonably be expected, singly or in the aggregate, to have a Material Adverse Effect or result in a
Material Adverse Change. 

        (ff)  Ratings. No "nationally recognized statistical rating organization" as such term is defined for purposes of Rule 436(g)(2)
under the Act (i) has imposed (or has informed either of the Company or any Guarantor that it is considering imposing) any condition (financial or otherwise) on the Company's
or any Guarantor's retaining any rating assigned to any securities of either of the Company or any Guarantor, or (ii) has indicated to either of the Company or any Guarantor that it is
considering (A) the downgrading, suspension, or withdrawal of, or any review for a possible change that does not indicate the direction of the possible change in, any rating so assigned, or
(B) any change in the outlook for any rating of any securities of either of the Company or any Guarantor. 

        (gg)  Solvency. Each of the Company and each Guarantor is incurring its respective indebtedness under the Series A Notes and the
Guarantees for proper purposes and in good faith. Immediately before and after giving effect to the issuance of the Series A Notes, (i) the assets of the Company and the Subsidiaries
(including the Guarantors), considered as a whole and as a going concern, at a fair valuation, will exceed the sum of their debts, taken as a whole; (ii) the present fair salable value of the
assets of the Company and the Subsidiaries (including the Guarantors), considered as a whole and as a going concern, will exceed the amount required to pay their liability on their debts, taken as a
whole; (iii) the Company will have adequate capital with which to conduct its present and anticipated businesses; and (iv) neither the Company nor any Guarantor will intend to incur or
believe or reasonably should believe that it will incur debts beyond its ability to pay as those debts become due. The Company is not aware of any reason why 

15

 

it would be inappropriate to consider, for purposes of clauses (i) and (ii) above, the Company and the Subsidiaries as a going concern. For purposes of this paragraph, "debts" includes
contingent and unliquidated debts. 

        (hh)  No Solicitation. Neither of the Company nor any of their affiliates nor anyone acting on their behalf has (i) taken, directly
or indirectly, any action designed to cause or to result in, or that has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of the Notes or
to facilitate the sale or resale of any of the Notes, (ii) sold, bid for, purchased, or paid anyone any compensation for soliciting purchases of, any of the Notes, or (iii) paid or
agreed to pay to any person any compensation for soliciting another to purchase any other securities of either of the Company. 

        (ii)  No Registration. Without limiting clause (r) above, no registration under the Act, and no qualification of the Indenture under
the TIA is required for the sale of the Series A Notes and the Guarantees to the Initial Purchasers as contemplated hereby or for the Exempt Resales, assuming (i) that the purchasers in
the Exempt Resales are Eligible Purchasers, (ii) the accuracy of the Initial Purchasers' representations contained in Section 7, and (iii) the accuracy of the representations made
by each Accredited Investor who purchases the Series A Notes pursuant to an Exempt Resale as set forth in the letter of representation in the form of Annex A to the Offering Circular. No form
of general solicitation or general advertising (including, without limitation, as such terms are defined in Regulation D under the Act) was used by either of the Company or any of their
respective affiliates or any of their respective representatives in connection with the offer and sale of any of the Series A Notes or in connection with Exempt Resales. No securities of the
same class as the Series A Notes have been offered, issued or sold by either of the Company or any of their respective affiliates within the six-month period immediately prior to
the date hereof. 

        (jj)
ERISA. Except as set forth in Schedule 6(jj) hereto, neither of the Company
nor any of their respective "Affiliates" maintains a plan that is intended to qualify under Section 401(a) of the Code, or is a "party in interest" or a "disqualified person" with respect to
any employee benefit plans. No condition exists or event or transaction has occurred in connection with any employee benefit plan that could result in either of the Company or any such "Affiliate"
incurring any liability, fine or penalty that could, singly or in the aggregate, have a Material Adverse Effect. Neither of the Company nor any trade or business under common control with the Company
(for purposes of Section 414(c) of the Code) maintains any employee pension benefit plan that is subject to Title IV of the Employee Retirement Income Act of 1974, as amended, or the rules and
regulations promulgated thereunder ("ERISA"). 

        The
terms "employee benefit plan," "employee pension benefit plan," and "party in interest" shall have the meanings assigned to such terms in Section 3 of ERISA. The term
"Affiliate" shall have the meaning assigned to such term in Section 407(d)(7) of ERISA, and the term "disqualified person" shall have the meaning assigned to such term in section 4975 of
the Internal Revenue Code of 1986, as amended, or the rules, regulations and published interpretations promulgated thereunder (collectively the "Code"). 

        (kk)
Investment Company Act and Other Federal Regulations. None of the Company nor any of the Subsidiaries has taken, and none of them
will take, any action that may cause this Agreement or the issuance of the Series A Notes to, and none of the Transactions will, violate or result in a violation of Section 7 of the
Exchange Act (including, without limitation, Regulation T (12 C.F.R. Part 220), Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224) of the
Board of Governors of the Federal Reserve System). Neither of the Company or any of the Subsidiaries is subject to regulation, or shall become subject to regulation upon the consummation of the
Offering and sale of the Series A Notes and the application of the net proceeds thereof as described in the 

16

 

Offering Circular, or the consummation of any of the other Transactions, under the Investment Company Act of 1940, as amended, and the rules and regulations and interpretations promulgated
thereunder, or under any other Federal or state statute or regulation limiting its ability to incur or assume indebtedness for borrowed money. 

        (ll)
No Brokers. Neither of the Company nor any of the Subsidiaries has dealt with any broker, finder, commission agent or other person
(other than the Initial Purchasers) in connection with the Transactions and neither of the Company or any of the Subsidiaries is under any obligation to pay any broker's fee or commission in
connection with the Transactions (other than commissions and fees to the Initial Purchasers as set forth in the Offering Circular). 

        (mm)
No Labor Disputes. To the knowledge of the Company Entities, none of the Company Entities is engaged in any unfair labor practice.
There is (i) no unfair labor practice complaint or other proceeding pending or, to the knowledge of the Company Entities, threatened against either of the Company or any of the Subsidiaries
before the National Labor Relations Board or any state, local or foreign labor relations board or any industrial tribunal, and no grievance or arbitration proceeding arising out of or under any
collective bargaining agreement is so pending or, to the knowledge of the Company Entities,
threatened, (ii) no strike, labor dispute, slowdown or stoppage pending or, to the knowledge of the Company Entities, threatened against either of the Company or any of the Subsidiaries, and
(iii) no union representation question existing with respect to the employees of either of the Company or any of the Subsidiaries, and, to the knowledge of the Company Entities, no union
organizing activities are taking place that, in the case of each of clauses (i), (ii) and (iii) above, would, singly or in the aggregate, have a Material Adverse Effect. 

        (nn)
Environmental Laws. Except as disclosed in the Offering Circular or as otherwise would not, singly or in the aggregate, have a
Material Adverse Effect or otherwise require disclosure in the Offering Circular, (i) neither of the Company nor any of the Subsidiaries has been or is in violation of any federal, state or
local laws and regulations relating to pollution or protection of human health or the environment, including, without limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of toxic or hazardous substances, materials or wastes, or petroleum and petroleum products ("Materials of Environmental Concern"),
or otherwise relating to the protection of human health and safety, or the use, treatment, storage, disposal, transport or handling of Materials of Environmental Concern (collectively,
"Environmental Laws"), which violation includes, but is not limited to, noncompliance with, or lack of, any permits or other environmental
authorizations; (ii) there are no circumstances, either past, present or that are reasonably foreseeable, that may lead to any such violation in the future; (iii) neither of the Company
nor any of the Subsidiaries has received any communication (written or oral), whether from a Governmental Authority or otherwise, alleging any such violation; (iv) there is no pending or, to
the knowledge of the Company Entities, threatened claim, action, investigation, notice (written or oral) or other Proceeding by any person or entity alleging potential liability of either of the
Company or any of the Subsidiaries (or against any person or entity for whose acts or omissions the Company or any of the Subsidiaries is or may reasonably be expected to be liable, either
contractually or by operation of law) for investigatory, cleanup, or other response costs, or natural resources or property damages, or personal injuries, attorney's fees or penalties relating to
(A) the presence, or release into the environment, of any Materials of Environmental Concern at any location, or (B) circumstances forming the basis of any violation or potential
violation, of any Environmental Law (collectively, "Environmental Claims"); and (v) there are no past or present actions, activities,
circumstances, conditions, events or incidents that could form the basis of any Environmental Claim. 

        Each
of the Company and the Subsidiaries, as the Company reasonably believes to be necessary and appropriate, (i) has conducted a review of the effect of Environmental Laws on the 

17

 

business, operations and properties of each of the Company and the Subsidiaries, in the course of which, or as a result of which, the Company has identified and evaluated associated costs and
liabilities (including, without limitation, any capital or operating expenditures required for cleanup, closure of properties or compliance with Environmental Laws or any permit, license or approval,
any related constraints on operating activities, and any potential liabilities to third parties); and (ii) has conducted, as necessary and appropriate, environmental investigations of, and, in
any case, has reviewed reasonably available information regarding, the business, properties and operations of each of the Company and the Subsidiaries, and of other properties within the vicinity
(consistent with ASTM or other applicable industry standards with respect to such offsite properties) of their business, properties and operations, as the Company reasonably believes to be necessary
and appropriate for the circumstances of each such property and operation; on the basis of such reviews, investigations and inquiries, the Company has reasonably concluded that any costs and
liabilities associated with such matters would not have,
singularly or in the aggregate, a Material Adverse Effect or otherwise require disclosure in the Offering Circular. 

        (oo)  Directed Selling Efforts. None of the Company Entities nor any of their respective affiliates or any person acting on its or their
behalf (other than the Initial Purchasers, as to whom the Company Entities make no representation) has engaged or will engage in any directed selling efforts within the meaning of Regulation S
under the Act ("Regulation S") with respect to the Series A Notes or the Guarantees. 

        (pp)
Offshore Transactions. The Series A Notes offered and sold in reliance on Regulation S have been and will be offered
and sold only in offshore transactions, as such term is defined in Regulation S ("Offshore Transactions"). 

        (qq)
No Plan or Scheme. The sale of the Series A Notes pursuant to Regulation S is not part of a plan or scheme to evade the
registration provisions of the Act. 

        (rr)
Regulation S Offering Restrictions. The Company Entities and their respective affiliates and all persons acting on their
behalf (other than the Initial Purchasers, as to whom the Company Entities make no representation) have complied with and will comply with the offering restrictions requirements of Regulation S
in connection with the offering of the Series A Notes outside the United States. 

        (ss)
Restricted Period. The Series A Notes sold in reliance on Regulation S will be represented upon issuance by a temporary
global security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period referred to in Rule 903(b)(3) of the Act and only upon
certification of beneficial ownership of such Series A Notes by non-U.S. persons or U.S. persons who purchased such Series A Notes in transactions that were exempt from the
registration requirements of the Act. 

        (tt)  Representations and Warranties. Each certificate signed by any officer of any of the Company Entities and delivered to the Initial
Purchasers or counsel for the Initial Purchasers in connection with the Transactions shall be deemed to be a representation and warranty by such Company Entities to the Initial Purchasers as to the
matters covered thereby. 

        7.    Representations and Warranties of the Initial Purchasers. Each Initial Purchaser, severally but
not jointly, represents and warrants to the Company and the Guarantors that: 

        (a)  QIB or Accredited Investor. It is either a QIB or an Accredited Investor, in either case, with such knowledge and
experience in financial and business matters as is necessary in order to evaluate the merits and risks of an investment in the Series A Notes. 

        (b)  Eligible Purchasers. It (i) is not acquiring the Series A Notes with a view to any distribution thereof
that would violate the Act or the securities laws of any state of the United 

18

 

States or any other applicable jurisdiction, and (ii) will be soliciting offers for the Series A Notes only from, and will be reoffering and reselling the Series A Notes only to,
persons in the United States whom it reasonably believes to be (A) QIBs in reliance on the exemption from the registration requirements of the Act provided by Rule 144A under the Act,
(B) Accredited Investors that execute and deliver to each of the Company and the Initial Purchasers a letter containing certain representations and agreements in the form attached as Annex A to
the Offering Circular or (C) Regulation S Purchasers in Offshore Transactions in reliance upon Regulation S under the Act. 

        (c)  No General Solicitation. No form of general solicitation or general advertising within the meaning of
Section 502(c) of the Act has been or will be used by the Initial Purchaser or any of its representatives in connection with the offer and sale of any of the Series A Notes. 

        (d)  Representations of Eligible Purchasers. In connection with the Exempt Resales, it will solicit offers to buy the
Series A Notes only from, and will offer and sell the Series A Notes only to, persons whom it reasonably believes to be Eligible Purchasers, who, in purchasing such Series A
Notes, will be deemed to have represented and agreed that (i) if such Eligible Purchaser is a QIB that it is purchasing the Series A Notes for its own account or for the account of
another QIB; (ii) such Series A Notes have not been registered under the Act or any other applicable securities law, and may not be offered, sold or otherwise transferred prior to the
date which is two years (or such other period that may hereafter be provided under Rule 144(k) under the Act as permitting resales of restricted securities by non-affiliates without
restriction) after the later of the original issue date of the Series A Notes and the last date on which the Company or any affiliate of the Company was the owner of the Series A Notes
(or any predecessor of the Series A Notes) only (A) to the Company pursuant to the indenture governing the Notes, (B) pursuant to a registration statement which has been declared
effective under the Act, (C) for so long as the Series A Notes are eligible for resale pursuant to Rule 144A under the Act, to a person who the seller reasonably believes is a QIB
that purchases for its own account or the account of a QIB to whom notice is given that the transfer is being made in reliance on Rule 144A under the Act, (D) outside the United States
in an Offshore Transaction in accordance with Rule 904 under the Act, (E) to an institutional "accredited investor" within the meaning of subparagraph (a)(1), (2), (3) or
(7) of Rule 501 under the Act that is acquiring the Series A Notes for its own account or the account of such an institutional "accredited investor," for investment purposes and
not with a view to, or for offer or sale in connection with, any distribution in violation of the Act or (E) pursuant to another available exemption from the registration requirements of the
Act, subject to the Company's and the Trustee's right prior to any such offer, sale or transfer pursuant to clause (E) or (F) above to require the delivery of an opinion of counsel,
certifications and/or other information satisfactory to each of them, and in each of the foregoing cases, a certificate of transfer in the form appearing on the Series A Notes is completed and
delivered by the transferor to the Trustee and in each case in accordance with applicable securities laws of any U.S. state or any other applicable jurisdiction; and (iii) that the holder
will, and each subsequent holder is required to, notify any purchaser from it of the Series A Notes of the resale restrictions set forth in clause (ii) above. 

        (e)  Power and Authority. It has all requisite power and authority to enter into, deliver and perform its obligations under
this Agreement and the Registration Rights Agreement and each of this Agreement and the Registration Rights Agreement has been duly and validly authorized by it. 

        (f)    Directed Selling Efforts. Such Initial Purchaser and its affiliates or any person acting on its or their behalf have not
engaged and will not engage in any directed selling efforts within the meaning of Regulation S with respect to the Series A Notes or the Guarantees. 

19

  

        (g)  Offshore Transactions. The Series A Notes offered and sold by such Initial Purchaser pursuant hereto in reliance
on Regulation S have been and will be offered and sold only in Offshore Transactions. 

        (h)  No Plan or Scheme. The sale of the Series A Notes offered and sold by such Initial Purchaser pursuant hereto in
reliance on Regulation S is not part of a plan or scheme to evade the registration provisions of the Act. 

        (i)    Regulation S Offering Restrictions. Such Initial Purchaser agrees that it has not offered or sold and will not
offer or sell the Series A Notes in the United States or to, or for the benefit or account of, a U.S. Person (other than a distributor), in each case, as defined in Rule 902 under the
Act (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the offering of the Series A Notes pursuant hereto
and the Closing Date, other than in accordance with Regulation S of the Act or another exemption from the registration requirements of the Act. Such Initial Purchaser agrees that, during such
40-day restricted period, it will not cause any advertisement with respect to the Series A Notes (including any "tombstone" advertisement) to be published in any newspaper or
periodical or posted in any public place and will not issue any circular relating to the Series A Notes, except such advertisements as permitted by and include the statements required by
Regulation S. 

        (j)    Notice Required. Such Initial Purchaser agrees that, at or prior to confirmation of a sale of Series A Notes by it
to any distributor, dealer or person receiving a selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903(b)(3) under the Act, it
will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following effect: 

"The
Series A Notes covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not
be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of your distribution at any time or (ii) otherwise until 40 days
after the later of the commencement of the Offering and the Closing Date, except in either case in accordance with Regulation S under the Securities Act (or Rule 144A under the
Securities Act or to institutional "accredited investors," as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) in transactions that are exempt from the
registration requirements of the Securities Act), and in connection with any subsequent sale by you of the Series A Notes covered hereby in reliance on Regulation S during the period
referred to above to any distributor, dealer or person receiving a selling concession, fee or other remuneration, you must deliver a notice to substantially the foregoing effect. Terms used above have
the meanings assigned to them in Regulation S." 

        (k)  Regulation S Security. Such Initial Purchaser agrees that the Series A Notes offered and sold in reliance
on Regulation S will be represented upon issuance by a global security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period
referred to in Rule 903(b)(3) of the Act and only upon certification of beneficial ownership of such Series A Notes by non-U.S. persons or U.S. persons who purchased such
Series A Notes in transactions that were exempt from the registration requirements of the Act. 

        8.
Indemnification.

        (a)  Indemnification of Initial Purchasers. Each of the Company Entities shall, jointly and severally, without limitation as
to time, indemnify and hold harmless each of the Initial Purchasers and each person, if any, who controls (within the meaning of Section 15 of the Act or Section 20(a) of the Exchange
Act) any of the Initial Purchasers (any of such persons being hereinafter referred to as a "controlling person"), and the respective officers,
directors, partners, 

20

 

employees, representatives and agents of any of the Initial Purchasers and any such controlling person (collectively, the "Purchaser Indemnified
Parties"), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and
reasonable attorneys' fees) and expenses (including, without limitation, costs and expenses incurred in connection with investigating, preparing, pursuing or defending against any of the foregoing)
(collectively, "Losses"), as incurred, directly or indirectly caused by, related to, based upon, arising out of or in connection with (i) any
untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Circular or the Offering Circular (or any amendment or supplement thereto) or (ii) any
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided, that neither of the Company nor any Guarantor shall be liable under the indemnity provided in this Section 8(a) to any
Purchaser Indemnified Party for any Losses that (A) result solely from an untrue statement of a material fact contained in, or the omission of a material fact from, any Preliminary Offering
Circular, which untrue statement or omission was corrected in the Offering Circular (as then amended or supplemented) if it shall have been determined by a court of competent jurisdiction by final and
nonappealable judgment that (1) such Purchaser Indemnified Party sold the Notes to the person alleging such Loss and failed to send or give, at or prior to the written confirmation of such
sale, a copy of the Offering Circular (as then amended or supplemented), if required by law to have so delivered it, and (2) the Company had previously furnished copies of the corrected
Offering Circular to such Purchaser Indemnified Party within a reasonable amount of time prior to such sale or such confirmation, and (3) the corrected Offering Circular, if delivered, would
have been a complete defense against the person asserting such Loss; or (B) are based on an untrue statement or omission or alleged untrue statement or omission made in reliance on and in
conformity with the Furnished Information. The parties hereto agree that the only information furnished in writing to the Company by the Initial Purchasers specifically for inclusion in the
Preliminary Offering Circular or the Offering Circular is the Furnished Information. The Company shall notify the Initial Purchasers promptly of the institution, threat or assertion of any Proceeding
of
which either of the Company or any Subsidiary is aware in connection with the matters addressed by this Agreement which involves either of the Company, any of the Subsidiaries or any of the Purchaser
Indemnified Parties. 

        (b)  Actions Against Parties; Notification. If any Proceeding shall be brought or asserted against any person entitled to
indemnification hereunder (an "Indemnified Party"), such Indemnified Party shall give prompt written notice to the party or parties from which such
indemnification is sought (the "Indemnifying Parties" and each, an "Indemnifying Party");  provided, that the
failure to so notify the Indemnifying Parties shall not relieve any of the Indemnifying Parties from any obligation or liability
except to the extent (but only to the extent) that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal) that such Indemnifying Party has
been prejudiced materially by such failure. 

        The
Indemnifying Parties shall have the right, exercisable by giving written notice to an Indemnified Party, within 20 Business Days after receipt of written notice from such Indemnified
Party of such Proceeding, to assume, at their expense, the defense of any such Proceeding; provided, that an Indemnified Party shall have the right to
employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or parties unless:
(i) the Indemnifying Parties have agreed to pay such fees and expenses; (ii) the Indemnifying Parties shall have failed promptly to assume the defense of such Proceeding or shall have
failed to employ counsel reasonably satisfactory to such Indemnified Party; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified
Party and one or more Indemnifying Parties (or any affiliates or controlling persons of any of the Indemnifying Parties), and such Indemnified Party shall have been advised by counsel that there 

21

 

may be one or more defenses available to such Indemnified Party that are in addition to, or in conflict with, those defenses available to the indemnifying party or such affiliate or controlling
person (in which case, if such Indemnified Party notifies the Indemnifying Parties in writing that it elects to employ separate counsel at the expense of the Indemnifying Parties, the Indemnifying
Parties shall not have the right to assume the defense thereof and the reasonable fees and expenses of such counsel shall be at the expense of the Indemnifying Parties; it being understood, however,
that, the Indemnifying Parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same
general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such Indemnified Party). 

        None
of the Indemnifying Parties shall, without the prior written consent of the Indemnified Party, consent to entry of any judgment in or enter into any settlement of any pending or
threatened Proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not any Indemnified Party is a party thereto) unless such judgment or settlement includes,
as an unconditional term thereof, the giving by the claimant or plaintiff to each Indemnified Party of a release, in form and substance reasonably satisfactory to the Indemnified Party, from all
Losses that may arise from such Proceeding or the subject matter thereof (whether or not any Indemnified Party is a party thereto). 

        (c)  Indemnification of the Company Entities. Each of the Initial Purchasers shall, severally but not jointly, indemnify and
hold harmless each of the Company Entities and each of their controlling persons and the respective members, managers, officers, directors, partners, employees, representatives and agents of the
Company Entities and any such controlling person to the same extent as the foregoing indemnity from the Company Entities to each of the Purchaser Indemnified Parties stated in Section 8(a), but
only with respect to Losses that are caused by an untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with the Furnished Information. The parties
hereto agree that the only information furnished in writing to the Company by the Initial Purchasers specifically for inclusion in the Preliminary Offering Circular or the Offering Circular is the
Furnished Information. Notwithstanding the foregoing, any liability of an Initial Purchaser hereunder shall be limited to an amount not to exceed the excess (such excess, the
"Aggregate Amount") of (i) the aggregate gross proceeds received by such Initial Purchaser from the sale of the Series A Notes over
(ii) the sum of (A) the aggregate price at which such Initial Purchaser purchased the Series A Notes from the Company and (B) the amount of any Losses that such Initial
Purchaser or such Initial Purchaser's Purchaser Indemnified Parties otherwise have been required to pay by reason of such untrue or alleged untrue statement of such omission or alleged omission. 

        (d)  Contribution. If the indemnification provided for in this Section 8 is unavailable to an Indemnified Party or is
insufficient to hold such Indemnified Party harmless for any Losses in respect of which this Section 8 would otherwise apply by its terms (other than by reason of exceptions provided in this
Section 8), then each indemnifying party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses
(i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Subsidiaries, on the one hand, and the Initial Purchasers, on the other hand, from the
Offering or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company Entities, on the one hand, and the Initial Purchasers, on the other hand, in connection with the actions, statements
or omissions that resulted in such Losses, as well as any other relevant equitable considerations. The relative benefits received by the Company Entities, on the one hand, and the Initial Purchasers,
on the other hand, shall be deemed to be in the same proportion as the total net proceeds from the 

22

 

Offering (before deducting expenses) received by the Company Entities, on the one hand, and the total discounts and commissions received by the Initial Purchasers, on the other hand, bear to the
total price of the Series A Notes in Exempt Resales as set forth on the cover page of the Offering Circular. The relative fault of the Company Entities, on the one hand, and the Initial
Purchasers, on the other hand, shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company or any Subsidiary, on the one hand, or the Initial Purchasers, on the other hand, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid or payable by an Indemnified Party as a result of any Losses shall be deemed to include any legal or other
fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this
Section 8 was available to such party. 

        Each
party hereto agrees that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation or by any other method of
allocation that does not
take account of the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 8(d), the Initial Purchasers shall not be
required to contribute, in the aggregate, any amount in excess of the Aggregate Amount. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall
be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

        (e)  Nonexclusive Remedy. The indemnity and contribution agreements contained in this Section 8 are in addition to any
liability that any of the Indemnifying Parties may otherwise have to the Indemnified Parties, and do not limit in any way rights or remedies which may otherwise be available at law or in equity. 

        9.    Conditions. 

        (a)  Conditions to Obligations of Initial Purchasers. The obligations of the Initial Purchasers to purchase the
Series A Notes under this Agreement are subject to the satisfaction or waiver of each of the following conditions: 

          (i)  Representations and Warranties of Company Entities. All the representations and warranties of each of the Company
Entities in this Agreement and in each of the Transaction Documents to which it is a party shall be true and correct in all material respects (other than representations and warranties with a Material
Adverse Effect qualifier or other materiality qualifier, which shall be true and correct as written) at and as of the Closing Date after giving effect to the Transactions with the same force and
effect as if made on and as of such date. On or prior to the Closing Date, each of the Company and the Subsidiaries and, to the knowledge of the Company Entities, each other party to the Transaction
Documents (other than the Initial Purchasers) shall have performed or complied in all material respects with all of the agreements and satisfied in all material respects all conditions on their
respective parts to be performed, complied with or satisfied pursuant to the Operative Documents. 

        (ii)  Contents of Offering Circular. The Preliminary Offering Circular as of its date did not, and the Offering Circular, as
of its date did not and, without giving effect to any amendment or supplement thereto, as of the Closing Date does not, and each supplement or amendment thereto as of its date did not, contain any
untrue statement of a material fact or omit to state any material fact (except, in the case of the Preliminary Offering Circular, for pricing terms, other financial terms intentionally left blank and
other changes in the structure of the transaction described in the Preliminary Offering Circular which arose after the date of the Preliminary Offering Circular) necessary in order to make the
statements therein, in the light of the circumstances under which 

23

 

they were made, not misleading; provided, that the foregoing shall not apply to any statements or omissions made by the Company in reliance on and in
conformity with the Furnished Information. 

        (iii)  Availability of Offering Circular. The Offering Circular shall have been printed and copies made available to the
Initial Purchasers not later than 12:00 noon, New York City time, on the first Business Day following the date of this Agreement or at such later date and time as the Initial Purchasers may approve. 

        (iv)  No Injunction. No injunction, restraining order or order of any nature by a Governmental Authority shall have been
issued as of the Closing Date that would prevent or interfere with the issuance and sale of the Series A Notes and the Guarantees or the consummation of any of the Transactions; and no stop
order suspending the qualification or exemption from qualification of any of the Series A Notes in any jurisdiction shall have been issued and no Proceeding for that purpose shall have been
commenced or be pending or contemplated. 

        (v)  No Proceedings. No action shall have been taken and no Applicable Law shall have been enacted, adopted or issued that
would, as of the Closing Date, prevent the consummation of any of the Transactions. No Proceeding shall be pending or threatened other than Proceedings that (A) if adversely determined would
not, singly or in the aggregate, adversely affect the issuance or marketability of the Series A Notes, and (B) would not, singly or in the aggregate, have a Material Adverse Effect. 

        (vi)  No Material Adverse Change. Since the date as of which information is given in the Offering Circular (without giving
effect to any amendment thereto or supplement thereto), there shall not have been any Material Adverse Change. 

      (vii)  PORTAL. The Notes shall have (A) been designated PORTAL securities in accordance with the rules and regulations
adopted by the NASD relating to trading in the PORTAL market, and (B) received a rating of "B+" and "B2" from Standard & Poor's Corporation and Moody's Investors Services, Inc.,
respectively. 

      (viii)  Maintenance of Rating. As of the Closing Date, (i) there shall not have occurred any downgrading, suspension
or withdrawal of, nor shall any notice have been given of any potential or intended downgrading, suspension or withdrawal of, or of any review (or of any potential or intended review) for a possible
change that does not indicate the direction of the possible change in, any rating of any securities of either of the Company (including, without limitation, the placing of any of the foregoing ratings
on credit watch with negative or developing implications or under review with an uncertain direction) by any "nationally recognized statistical rating organization" as such term is defined for
purposes of Rule 436(g)(2) under the Act, (ii) there shall not have occurred any change, nor shall any notice have been given of any potential or intended change, in the outlook for any
rating of any
securities of either of the Company by any such rating organization and (iii) no such rating organization shall have given notice that it has assigned (or is considering assigning) a lower
rating to the Notes than that on which the Notes were marketed. 

        (ix)  Officers', Secretary's and Solvency Certificates. The Initial Purchasers shall have received on the Closing Date
(A) certificates dated the Closing Date, signed by (1) the Chief Executive Officer, and (2) the principal financial or accounting officer of each of the Company Entities, on
behalf of such Company Entity, confirming the matters set forth in paragraphs (i), (ii), (iv), (v), (vi), (viii) and (xiv) of this Section 9(a), (B) a certificate, dated
the Closing Date, signed by the (1) Chief Executive Officer and (2) the principal financial or accounting officer of each of the Company Entities, on behalf of each such Company Entity,
stating that the industry, statistical and market-related data included in the Offering Circular has been reviewed by such persons and, to the best knowledge of such persons, subject to the risks and
limitations described in the Preliminary Offering Circular and the Offering Circular, is true and accurate in all material 

24

 

respects and is based on or derived from sources which the Company believe to be reliable and accurate, which certificate shall be in form and substance satisfactory to counsel for the Initial
Purchasers, (C) a certificate, dated the Closing Date, signed by the Secretary of each of the Company Entities, certifying such matters as the Initial Purchasers may reasonably request, and
(D) a certificate of solvency, dated the Closing Date, signed by the principal financial or accounting officer of the Company Entities substantially in the form previously approved by the
Initial Purchasers. 

        (x)  Opinions of Counsel. The Initial Purchasers shall have received, a favorable opinion (in form and substance satisfactory
to the Initial Purchasers and counsel to the Initial Purchasers), dated the Closing Date, of each of the following: (A) Ruben & Aronson, LLP, special counsel to the Company Entities,
containing opinions substantially to the effect of the opinions set forth in Exhibit A hereto; (B) Jackson & Kelly, special West
Virginia counsel to Mountaineer Park, Inc., containing the opinions substantially to the effect of the opinions set forth in Exhibit B  hereto; (C) Jones Vargas, special Nevada counsel to
Speakeasy Gaming of Las Vegas, Inc. and Speakeasy Gaming of Reno, Inc. containing the opinions
substantially to the effect of the opinions set forth in Exhibit C hereto; (D) DKW Law Group, special Pennsylvania counsel to Presque Isle
Downs, Inc., containing the opinions substantially to the effect of the opinions set forth in Exhibit D hereto; (E) Crabbe,
Brown & James, special Ohio counsel to Racing Acquisition, Inc., containing the opinions substantially to the effect of the opinions set forth in Exhibit E  hereto; and (F)
 Skadden, Arps, Slate, Meagher & Flom LLP, special counsel to the Initial Purchasers. 

        (xi)  Accountants' Comfort Letters. The Initial Purchasers shall have received from Ernst & Young LLP, independent
public accountants with respect to the Company, (1) a customary comfort letter, dated as of the date of the Offering Circular, in form and substance satisfactory to the Initial Purchasers,
containing the information and statements of the type ordinarily included in accountants' "comfort letters," with respect to the financial statements of the Company and the Subsidiaries and certain
financial information with respect to the Company and the Subsidiaries contained in the Offering Circular and (2) a customary comfort letter, dated the Closing Date, in form and substance
satisfactory to the Initial Purchasers, to the effect that Ernst & Young LLP reaffirms the statements made in its letter furnished pursuant to clause (1) above, except that the specified
date referred to shall be a date not more than five days prior to the Closing Date. 

      (xii)  Execution and Delivery of Documents. The Operative Documents shall have been executed and delivered by all parties
thereto and the Initial Purchasers shall have received a fully executed original of each Operative Document. 

      (xiii)  Additional Transaction Documents. The Initial Purchasers or their counsel shall have received copies of all opinions,
certificates, letters and other documents delivered under or in connection with the Operative Documents. 

      (xiv)  Consummation of Transactions. Each of the Transactions shall have been consummated on terms that conform to the
description thereof in the Offering Circular. The terms of each Document shall conform in all material respects to the description thereof in the Offering Circular. 

      (xv)  Permits. All Permits required to be obtained from, and all notices or declarations required to be made with, any
Gaming/Racing Authority or other Governmental Authority to permit the issuance and sale of the Series A Notes and the Guarantees in accordance with the terms of, and in the aggregate principal
amount set forth in, this Agreement shall have been obtained and made, in each case free of any conditions other than those set forth in this Agreement; and all Permits (other than the
Post-Closing Permits) required to be obtained from, and all notices or declarations required to be made with, any Gaming/Racing Authority or other Governmental Authority to consummate the
other Transactions contemplated by the Transaction Documents shall have been 

25

 

obtained and made, in each case free of any conditions other than those set forth in such Transaction Documents or as described in the Offering Circular. 

      (xvi)  Filing of Form 8-K. The Company shall have filed with the Commission a Form 8-K
containing (A) a "Management's Discussion and Analysis of Financial Condition and Results of Operations" for the year ended December 31, 2002 compared to the year ended
December 31, 2001 and (B) audited financial statements and notes thereto as of December 31, 2001 and 2002, and for each of the years in the three-year period ended
December 31, 2002 (including a report of Ernst & Young LLP thereon), that, in the case of each of (A) and (B), are substantially identical to those set forth in the Offering
Circular. 

    (xvii)  Additional Documents. Counsel to the Initial Purchasers shall have been furnished with such documents as they may
reasonably require for the purpose of enabling them to review or pass upon the matters referred to in this Section 9 and in order to evidence the accuracy, completeness and satisfaction of the
representations, warranties and conditions contained in this Agreement. 

        (b)  Conditions to the Company's and the Guarantors' Obligations. The obligations of the Company to sell, and the obligations
of the Guarantors to guarantee, the Series A Notes under this Agreement are subject to the satisfaction or waiver of each of the following conditions: 

          (i)  Payment. The Initial Purchasers shall have delivered payment to the Company for the Series A Notes pursuant to
Sections 2 and 4 of this Agreement and shall have complied in all material respects with all other obligations and agreements required to be complied with by it hereunder on or prior to the Closing
Date. 

        (ii)  Representations and Warranties. All of the representations and warranties of the Initial Purchasers in this Agreement
shall be true and correct in all material respects at and as of the Closing Date, with the same force and effect as if made on and as of such date. 

        (iii)  No Injunctions. No injunction, restraining order or order of any nature by a Governmental Authority shall have been
issued as of the Closing Date that would prevent or interfere with the issuance and sale of the Series A Notes; and no stop order suspending the qualification or exemption from qualification of
any of the Series A Notes in any jurisdiction shall have been issued and no Proceeding for that purpose shall have been commenced or be pending or contemplated as of the Closing Date. 

        10.  Termination. This Agreement shall become effective upon the execution and delivery of this Agreement by the parties
hereto. The Initial Purchasers may terminate this Agreement at any time prior to the Closing Date by written notice to the Company if any of the following has occurred: 

        (a)  Material Adverse Effect. Since the date as of which information is given in the Offering Circular, any Material Adverse
Effect or any Material Adverse Change that could, in the Initial Purchasers' judgment, (i) make it impracticable or inadvisable to proceed with the Offering or delivery of the Series A
Notes, including the Exempt Resales, on the terms and in the manner contemplated in the Offering Circular or (ii) materially impair the investment quality of the Notes. 

        (b)  Failure to Satisfy Conditions. The failure of any of the Company Entities to satisfy the conditions contained in
Section 9(a) on or prior to the Closing Date. 

        (c)  Outbreak of Hostilities. Any outbreak or escalation of hostilities, any declaration of war by the United States, any
other calamity, emergency or crisis, any material adverse change in economic conditions in or the financial markets of the United States or elsewhere or any change or development involving a
prospective change in national or international political, financial or economic conditions, in each case the effect of which could make it, in the Initial Purchasers' judgment, impracticable or
inadvisable to market or proceed with the offering or delivery of the 

26

 

Series A Notes on the terms and in the manner contemplated in the Offering Circular or to enforce contracts for the sale of any of the Series A Notes. 

        (d)  Suspension of Trading. The suspension or limitation of trading generally in securities on the New York Stock Exchange,
the American Stock Exchange or the Nasdaq National Market or any setting of limitations on prices for securities on any such exchange or on the Nasdaq National Market. 

        (e)  Enactment of Adverse Law. The enactment, publication, decree or other promulgation after the date hereof of any
Applicable Law that in the Initial Purchasers' opinion materially and adversely affects, or could materially and adversely affect, the properties, business, prospects, operations, earnings, assets,
liabilities or condition (financial or otherwise) of either of the Company or any of the Subsidiaries. 

        (f)    Downgrade of Securities. On or after the date hereof, (i) there shall not have occurred any downgrading,
suspension or withdrawal of, nor shall any notice have been given of any potential or intended downgrading, suspension or withdrawal of, or of any review (or of any potential or intended review) for a
possible change that does not indicate the direction of the possible change in, any rating of any of the Company Entities or any securities of any of the Company Entities (including, without
limitation, the placing of any of the foregoing ratings on credit watch with negative or developing implications or under review with an uncertain direction) by any "nationally recognized statistical
rating organization" as such term is defined for purposes of Rule 436(g)(2) under the Act, (ii) there shall not have occurred any change, nor shall any notice have been given of any
potential or intended change, in the outlook for any rating of any of the Company Entities or any securities of any of the Company Entities (by any such rating organization and (iii) no such
rating organization shall have given notice that it has assigned (or is considering assigning) a lower rating to the Notes than that on which the Notes were marketed. 

        (g)  Banking Moratorium. The declaration of a banking moratorium by any Governmental Authority; or the taking of any action by
any Governmental Authority after the date hereof in respect of its monetary or fiscal affairs that in the Initial Purchasers' opinion could have a material adverse effect on the financial markets in
the United States or elsewhere. 

        The
respective indemnities, contribution and expense reimbursement provisions and agreements, and representations, warranties and other statements of the Company Entities and the Initial
Purchasers set forth in or made pursuant to this Agreement shall remain operative and in full force and effect, and will survive, regardless of (i) any investigation, or statement as to the
results thereof, made by or on
behalf of the Initial Purchasers or any of the Company Entities, or any of their respective officers, directors, members or managers or any of their respective controlling persons,
(ii) acceptance of the Notes, and payment for them hereunder, and (iii) any termination of this Agreement (including, without limitation, any termination pursuant to this
Section 10). Without limiting the foregoing, notwithstanding any termination of this Agreement, the Company Entities shall be and shall remain jointly and severally liable (i) for all
expenses that they have agreed to pay pursuant to Section 5(f), and (ii) pursuant to Section 8. 

        11.  Default of Initial Purchasers. If one of the Initial Purchasers defaults in its obligations to purchase Notes hereunder
and the aggregate principal amount of the Notes that such defaulting Initial Purchaser agreed but failed to purchase does not exceed 10% of the total principal amount of the Notes, the
non-defaulting Initial Purchaser may make arrangements satisfactory to the Company for the purchase of such Notes by other persons, including the non-defaulting Initial
Purchaser, but if no such arrangements are made by the Closing Date, the non-defaulting Initial Purchaser shall be obligated to purchase the Notes that such defaulting Initial Purchaser
agreed but failed to purchase. If one Initial Purchaser so defaults and the aggregate principal amount of the Notes with respect to which such default occurs exceeds 10% of the total principal amount
of the Notes and arrangements satisfactory to 

27

 

the non-defaulting Initial Purchaser and the Company for the purchase of such Notes by other persons are not made within 36 hours after such default, this Agreement will terminate
without liability on the part of the non-defaulting Initial Purchaser or the Company, except as provided in Section 10 hereof. As used in this Agreement, the term "Initial
Purchaser" includes any person substituted for an Initial Purchaser under this Section 9. Nothing herein will relieve a defaulting Initial Purchaser from liability for its default. 

        12.  Miscellaneous. 

        (a)  Notices. Notices given pursuant to any provision of this Agreement shall be addressed as follows: (i) if to any of
the Company Entities, to MTR Gaming Group, Inc., State Route 2 South, P.O. Box 358, Chester, West Virginia 26034, facsimile number (304) 387-8302, Attention: Chief
Financial Officer, with a copy to Ruben & Aronson, LLP, 3299 K Street, N.W., Suite 403, Washington, D.C. 20007, facsimile number (202) 965-3700, Attention: Robert L. Ruben,
Esq., and (ii) if to the Initial Purchasers, c/o Jefferies & Company, Inc., 11100 Santa Monica Boulevard, 10th Floor, Los Angeles, California 90025, Attention: Lloyd Feller, Esq.,
with a copy to Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite 3400, Los Angeles, California 90071, facsimile number (213) 687-5600, Attention:
Nicholas P. Saggese, Esq. (provided, that any notice pursuant to Section 8 hereof will be mailed, delivered, telegraphed or sent by facsimile and
confirmed to the party to be notified and its counsel), or in any case to such other address as the person to be notified may have requested in writing. 

        (b)  Successors and Assigns. This Agreement has been and is made solely for the benefit of and shall be binding upon each of
the Company Entities, the Initial Purchasers and, to the extent provided in Section 8, the controlling persons, officers, directors, partners, employees, representatives and agents referred to
in Section 8, and their respective heirs, executors, administrators, successors and assigns, all as and to the extent provided in this Agreement, and no other person shall acquire or have any
right
under or by virtue of this Agreement. The term "successors and assigns" shall not include a purchaser of any of the Series A Notes from the Initial Purchasers merely because of such purchase.
Notwithstanding the foregoing, it is expressly understood and agreed that each purchaser who purchases Series A Notes from the Initial Purchasers is intended to be a beneficiary of the
Company's covenants contained in the Registration Rights Agreement to the same extent as if the Notes were sold and those covenants were made directly to such purchaser by the Company, and each such
purchaser shall have the right to take action against the Company to enforce, and obtain damages for any breach of, those covenants. 

        (c)  GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED, AND THE RIGHTS OF THE PARTIES SHALL BE DETERMINED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAWS AND RULE 327(b) OF THE NEW
YORK CIVIL PRACTICE LAWS AND RULES. EACH OF THE COMPANY ENTITIES HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK
OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXTENT PERMITTED BY LAW, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. EACH OF THE COMPANY ENTITIES IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING
BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR 

28

 

PROCEEDINGS BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE COMPANY ENTITIES IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TO
THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY OR SUCH
GUARANTOR, AS THE CASE MAY BE, AT THE ADDRESS SET FORTH HEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE INITIAL PURCHASERS TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY OF THE COMPANY ENTITIES IN ANY OTHER JURISDICTION. 

        (d)  Counterparts. This Agreement may be signed in various counterparts which together shall constitute one and the same
instrument. 

        (e)  Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. When a reference is made in this Agreement to a Section, paragraph, subparagraph, Schedule or Exhibit, such reference shall mean a Section, paragraph, subparagraph, Schedule or
Exhibit to this Agreement unless otherwise indicated. 

        (f)    Interpretation. The words "include,"
"includes," and "including" when used in this Agreement shall be deemed in each case to be followed by
the words "without limitation." The phrases "the date of this Agreement," "the
date hereof," and terms of similar import, unless the context otherwise requires, shall be deemed to refer to March 19, 2003. The words
"hereof," "herein," "herewith,"
"hereby" and "hereunder" and words of similar import shall, unless otherwise stated, be construed to
refer to this Agreement as a whole and not to any particular provision of this Agreement. The phrase "to the knowledge of the Company Entities" means
the actual knowledge, after due inquiry, of any of the directors or officers of any of the Company Entities. Unless the context otherwise requires, defined terms shall include the singular and plural
and the conjunctive and disjunctive forms of the terms defined. 

        (g)  Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        (h)  Amendment. This Agreement may be amended, modified or supplemented, and waivers or consents to departures from the
provisions hereof may be given, provided that the same are in writing and signed by each of the signatories hereto. 

[signature pages follow]

29

 

        Please
confirm that the foregoing correctly sets forth the agreement between the Company and the Initial Purchasers. 

	 	 	Very truly yours,
	

 	
 	
MTR GAMING GROUP, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
MOUNTAINEER PARK, INC
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
SPEAKEASY GAMING OF LAS VEGAS, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
PRESQUE ISLE DOWNS, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
RACING ACQUISITION, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
SPEAKEASY GAMING OF RENO, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President

	

ACCEPTED AND AGREED TO:
	
JEFFERIES & COMPANY, INC.
	

By:	
 	

/s/

	
WELLS FARGO SECURITIES, LLC
	

By:	
 	

/s/

30Exhibit 10.16  

MTR GAMING GROUP, INC.  

$130,000,000 93/4% Senior Notes due 2010  

REGISTRATION RIGHTS AGREEMENT  

March 25, 2003 

JEFFERIES &
COMPANY, INC.

WELLS FARGO SECURITIES, LLC

c/o Jefferies & Company, Inc.

11100 Santa Monica Boulevard, 10th Floor

Los Angeles, California 90025 

Ladies
and Gentlemen: 

        MTR
Gaming Group, Inc., a Delaware corporation (the "Company"), is issuing and selling to Jefferies & Company, Inc.
and Wells Fargo Securities, LLC (the "Initial Purchasers"), upon the terms set forth in a purchase agreement, dated as of March 19, 2003 (the
"Purchase Agreement"), $130,000,000 aggregate principal amount at maturity of the Company's 93/4% Senior Notes due 2010, Series A,
including the Guarantees (as defined below) endorsed thereon (the "Notes"). As an inducement to the Initial Purchasers to enter into the Purchase
Agreement, the Company and each of the guarantors (the "Guarantors") signatory to the Purchase Agreement jointly and severally agrees
with the Initial Purchasers, for the benefit of the holders of the Securities (as defined below) (including, without limitation, the Initial Purchasers), as follows: 

1.  Definitions.

        Capitalized
terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement. As used in this Agreement, the following terms shall have the
following meanings: 

        Advice:    See the last paragraph of Section 6. 

        Agreement:    This Registration Rights Agreement. 

        Applicable Period:    See Section 2(f). 

        Business Day:    Any day, other than a Saturday, a Sunday or a day on which banking institutions in the City of New York or at a
place of payment are authorized or obligated by law, regulation or executive order to be closed. 

        Closing Date:    March 25, 2003. 

        controlling person:    See Section 8(a). 

        DTC:    See Section 6(i). 

        Effectiveness Date:    The 135th day following the Closing Date. 

        Effectiveness Period:    See Section 3(a). 

        Event:    See Section 4(a). 

        Event Date:    See Section 4(a). 

        Exchange Act:    The Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated
thereunder. 

        Exchange Offer:    See Section 2(a). 

        Exchange Offer Registration Statement:    See Section 2(a). 

 

        Exchange Securities:    The 93/4% Senior Notes due 2010, Series B, of the Company, including the
guarantees endorsed or to be endorsed thereon, identical in all respects to the Notes and the Guarantees, except for references to series and restrictive legends. 

        Filing Date:    The 60th day following the Closing Date. 

        Guarantees:    The full and unconditional guarantee, on a senior basis by the Guarantors, as to payment of principal, interest,
premium, if any, and the Weekly Liquidated Damages Amount, if any, with respect to the Notes. 

        Holder:    Each holder of Registrable Securities. 

        Holder Indemnified Parties:    See Section 8(a). 

        indemnified party:    See Section 8(c). 

        indemnifying parties:    See Section 8(c). 

        Indenture:    The Indenture, dated as of the date hereof, by and among the Company, the Guarantors and Wells Fargo Bank
Minnesota, National Association, as trustee, pursuant to which the Notes are being issued, as amended or supplemented from time to time, in accordance with the terms thereof. 

        Initial Shelf Registration:    See Section 3(a). 

        Losses:    See Section 8(a). 

        Maximum Contribution Amount:    See Section 8(d). 

        NASD:    The National Association of Securities Dealers, Inc. 

        Participating Broker-Dealer:    See Section 2(f). 

        Person:    An individual, trustee, corporation, limited liability company, partnership, limited liability partnership, joint
stock company, joint venture, trust, unincorporated organization or association, government or any agency or political subdivision thereof, union, business association, firm or other entity. 

        Private Exchange:    See Section 2(g). 

        Private Exchange Securities:    See Section 2(g). 

        Prospectus:    The prospectus included in a Registration Statement at the time that such Registration Statement is declared
effective (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon
Rule 430A under the Securities Act), as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Securities covered by such
Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 

        Registrable Securities:    Any of the Notes, the Private Exchange Securities and the Exchange Securities received in the
Exchange Offer that may not be sold without restriction under federal or state securities law. 

        Registration Statement:    Any registration statement of the Company that covers any of the Securities and that is filed
pursuant to the provisions of this Agreement, including the Prospectus included therein, all amendments and supplements to such registration statement and Prospectus 

2

 

(including post-effective amendments), all exhibits thereto and all material incorporated by reference or deemed to be incorporated by reference therein. 

        Rule 144:    Rule 144 under the Securities Act, as such rule may be amended from time to time, or any similar rule
(other than Rule 144A) or regulation hereafter adopted by the SEC. 

        Rule 144A:    Rule 144A under the Securities Act, as such rule may be amended from time to time, or any similar
rule (other than Rule 144) or regulation hereafter adopted by the SEC. 

        Rule 415:    Rule 415 under the Securities Act, as such rule may be amended from time to time, or any similar rule
or regulation hereafter adopted by the SEC. 

        SEC:    The Securities and Exchange Commission. 

        Securities:    The Notes, the Private Exchange Securities and the Exchange Securities, collectively. 

        Securities Act:    The Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder. 

        Shelf Effectiveness Date:    With respect to a Shelf Registration, the 60th day after the filing of such Shelf
Registration. 

        Shelf Filing Date:    With respect to a Shelf Registration, the 30th day following (i) in the case of an
Initial Shelf Registration, delivery of the Shelf Notice triggering the obligation to file such Initial Shelf Registration, and (ii) in the case of a Subsequent Shelf Registration, the
cessation of effectiveness of the prior Shelf Registration. 

        Shelf Notice:    See Section 2(i). 

        Shelf Registration:    The Initial Shelf Registration and any Subsequent Shelf Registration. 

        Special Counsel:    Counsel chosen by the holders of a majority in aggregate principal amount of Securities. 

        Subsequent Shelf Registration:    See Section 3(b). 

        TIA:    The Trust Indenture Act of 1939, as amended. 

        Trustee:    The trustee under the Indenture and, if any, the trustee under any indenture governing the Exchange Securities or
the Private Exchange Securities. 

        Underwritten Registration or Underwritten Offering: A registration in which securities of
the Company are sold to an underwriter for reoffering to the public. 

        Weekly Liquidated Damages Amount:    With respect to any Event, an amount per week per $1,000 principal amount of Registrable
Securities equal to $0.05 for the first 90-day period immediately following the applicable Event Date, increasing by an additional $0.05 per week per $1,000 principal amount of Registrable
Securities with respect to each subsequent 90-day period, up to a maximum amount of $0.25 per week per $1,000 principal amount of Registrable Securities. 

2.  Exchange Offer.

        (a)  The
Company and the Guarantors shall: 

          (i)  prepare
and file with the SEC promptly after the date hereof, but in no event later than the Filing Date, a registration statement (the
"Exchange Offer Registration Statement") on an appropriate form under the Securities Act with respect to a proposed offer (the
"Exchange Offer") to the Holders to issue and deliver to such Holders, in exchange for the Notes, a like aggregate principal amount of Exchange
Securities; 

3

 

        (ii)  use
their respective reasonable best efforts to cause the Exchange Offer Registration Statement to become effective as promptly as practicable after the filing thereof,
but in no event later than the Effectiveness Date; 

        (iii)  use
their respective reasonable best efforts to keep the Exchange Offer Registration Statement effective until the consummation of the Exchange Offer pursuant to its
terms; and 

        (iv)  unless
the Exchange Offer would not be permitted by a policy of the SEC, commence the Exchange Offer and use their respective reasonable best efforts to, on or prior to
30 days after the Exchange Offer Registration Statement is declared effective, consummate the Exchange Offer and issue Exchange Securities in exchange for all Notes tendered prior thereto in
the Exchange Offer. 

The
Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not violate applicable law or any applicable interpretation of the staff of the SEC. 

        (b)  The
Exchange Securities shall be issued under, and entitled to the benefits of, the Indenture or a trust indenture that is identical to the Indenture (other than such
changes as are necessary to comply with any requirements of the SEC to effect or maintain the qualification thereof under the TIA). 

        (c)  In
connection with the Exchange Offer, the Company and the Guarantors shall: 

          (i)  mail
to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal that is an
exhibit to the Exchange Offer Registration Statement, and any related documents; 

        (ii)  keep
the Exchange Offer open for not less than 30 days after the date notice thereof is mailed to the Holders (or longer if required by applicable law); 

        (iii)  utilize
the services of a depositary for the Exchange Offer with an address in the Borough of Manhattan, The City of New York; 

        (iv)  permit
Holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer shall remain
open; and 

        (v)  otherwise
comply with all laws applicable to the Exchange Offer. 

        (d)  As
soon as practicable after the close of the Exchange Offer, the Company and the Guarantors shall: 

          (i)  accept
for exchange all Notes validly tendered and not validly withdrawn pursuant to the Exchange Offer; 

        (ii)  deliver
to the Trustee for cancellation all Notes so accepted for exchange; and 

        (iii)  cause
the Trustee promptly to authenticate and deliver to each Holder of Notes, Exchange Securities equal in aggregate principal amount to the Notes of such Holder so
accepted for exchange. 

        (e)  Interest
on each Exchange Security and each Private Exchange Security will accrue from the last interest payment date on which interest was paid on the Notes surrendered
in exchange therefor or, if no interest has been paid on the Notes, from the date of original issue of the Notes. Each Exchange Security and each Private Exchange Security shall bear interest at the
rate set forth thereon; provided, that interest with respect to the period prior to the issuance thereof shall accrue at the rate or rates borne by the
Notes surrendered in exchange therefor from time to time during such period. 

        (f)    The
Company and the Guarantors shall include within the Prospectus contained in the Exchange Offer Registration Statement a section entitled "Plan of Distribution,"
containing a summary statement of the positions taken or policies made by the staff of the SEC with respect to the potential "underwriter" status of any broker-dealer that is the beneficial owner (as
defined in Rule 13d-3 under 

4

 

the Exchange Act) of Exchange Securities received by such broker-dealer in the Exchange Offer (a "Participating Broker-Dealer"). Such "Plan of
Distribution" section shall also allow the use of the Prospectus by all Persons subject to the prospectus delivery requirements of the Securities Act, including (without limitation) all Participating
Brokers-Dealers, and include a statement describing the means by which Participating Broker-Dealers may resell the Exchange Securities. The Company and the Guarantors shall use their respective
reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective and to amend and supplement the Prospectus to be lawfully delivered by all Persons subject to the
prospectus delivery requirement of the Securities Act for the shorter of: (i) such period of time as such Persons must comply with such requirements in order to resell the Exchange Securities
and (ii) the period ending when all Registrable Securities covered by the Exchange Offer Registration Statement have been sold pursuant thereto (the "Applicable
Period"). 

        (g)  If,
prior to consummation of the Exchange Offer, any Initial Purchaser holds any Notes acquired by it and having the status as an unsold allotment in the initial
distribution of the Notes, the Company and the Guarantors shall, upon the request of such Initial Purchaser, simultaneously with the delivery of the Exchange Securities in the Exchange Offer, issue
(pursuant to the same indenture as the Exchange Securities and subject to transfer restrictions thereon) and deliver to the Initial Purchaser, in exchange for the Notes held by such Initial Purchaser
(the "Private Exchange"), a like principal amount of debt securities of the Company, including guarantees endorsed thereon, that are identical to the
Exchange Securities (the "Private Exchange Securities"). The Private Exchange Securities shall bear the same CUSIP number as the Exchange Securities. 

        (h)  The
Company may require each Holder participating in the Exchange Offer to represent to the Company and the Guarantors that, at the time of the consummation of the
Exchange Offer: (i) any Exchange Securities received by such Holder in the Exchange Offer will be acquired in the ordinary course of its business; (ii) such Holder will have no
arrangement or understanding with any Person to participate in the distribution of the Exchange Securities within the meaning of the Securities Act or resale of the Exchange Securities in violation of
the Securities Act; (iii) if such Holder is not a broker-dealer, that it is not engaged in and does not intend to engage in, the distribution of the Exchange Securities; (iv) if such
Holder is a broker-dealer that will receive Exchange Securities for its own account in exchange for Notes that were acquired as a result of market-making or other trading activities, that it will
deliver a prospectus, as required by law, in connection with any resale of such Exchange Securities; and (v) if such Holder is an affiliate of the Company, that it will comply with the
registration and prospectus delivery requirements of the Securities Act applicable to it. 

        (i)    If:
(i) prior to the consummation of the Exchange Offer, the Company or the Holders of a majority in aggregate principal amount of Registrable Securities
determines in its or their reasonable judgment that (A) the Exchange Securities would not, upon receipt, be tradeable by the Holders thereof without restriction under the Securities Act and the
Exchange Act and without material restrictions under applicable Blue Sky or state securities laws or (B) the interests of the Holders under this Agreement, taken as a whole, would be materially
adversely affected by the consummation of the Exchange Offer;
(ii) applicable interpretations of the staff of the SEC would not permit the consummation of the Exchange Offer prior to the Effectiveness Date; (iii) subsequent to the consummation of
the Private Exchange, any Holder of Private Exchange Securities so requests; (iv) the Exchange Offer is not consummated within 165 days of the Closing Date for any reason; or
(v) in the case of (A) any Holder prohibited by law or SEC policy from participating in the Exchange Offer, (B) any Holder participating in the Exchange Offer that receives
Exchange Securities that may not be sold without restriction under state and federal securities laws (other than due solely to the status of such Holder as an affiliate of the Company within the
meaning of the Securities Act) or (C) any broker-dealer that holds Notes acquired directly from the Company or any of their respective affiliates and, in each such case contemplated by this
clause (v), such Holder notifies the Company within 20 Business Days (provided that if a Holder has delivered a notice within such time period, any other Holder meeting the requirements set
forth in clause (v)(A), (B) or (C) may thereafter submit a notice 

5

 

up to and including the date that is 20 Business Days following the Shelf Filing Date) of consummation of the Exchange Offer, then the Company shall promptly (and in any event within five Business
Days) deliver to the Holders (or in the case of an occurrence of any event described in clause (v) of this Section 2(i), to any such Holder) and the Trustee notice thereof (the
"Shelf Notice") and shall as promptly as possible thereafter (but in no event later than the Shelf Filing Date) file an Initial Shelf Registration
pursuant to Section 3; provided, that no Holder (other than the Initial Purchasers) shall be entitled to have Securities held by it covered by
such Shelf Registration unless such Holder agrees to be bound by all of the provisions of this Agreement applicable to such Holder. 

3.
Shelf Registration.

        If
a Shelf Notice is required to be delivered pursuant to clause (i), (ii), (iii) or (iv) of Section 2(i), then this Section 3 shall apply to all
Registrable Securities. Otherwise, upon consummation of the Exchange Offer in accordance with Section 2, the provisions of this Section 3 shall apply solely with respect to
(i) Notes held by any Holder thereof not permitted to participate in the Exchange Offer, (ii) Notes held by any broker-dealer that acquired such Notes directly from the Company or any of
their respective affiliates, and (iii) Exchange Securities that are not freely tradeable, in each case, as contemplated by clause (v) of Section 2(i). 

        (a)  Initial Shelf Registration. The Company and the Guarantors shall prepare and file with the SEC a Registration Statement
for an offering to be made on a continuous basis pursuant to Rule 415 covering all of the Registrable Securities (the "Initial Shelf
Registration") subject to the Company's right pursuant to Section 3(c) to exclude the Registrable Securities of Holders that have not provided the information required
to be furnished by such Holders pursuant to Section 3(c) hereof. The Company and the Guarantors shall file with the SEC the Initial Shelf Registration as promptly as possible following the
occurrence of the event described in Section 2(i) which triggered such filing obligation, but in no event later than the Shelf Filing Date. The Initial Shelf Registration shall be on
Form S-1 or another appropriate form permitting registration of such Registrable Securities for resale by such Holders in the manner or manners designated by them (including,
without limitation, one or more underwritten offerings). The Company and the Guarantors (i) shall not permit any securities other than the Registrable Securities to be included in any Shelf
Registration, and (ii) shall use their respective best efforts to cause the Initial Shelf Registration to be declared effective under the Securities Act as promptly as practicable after the
filing thereof (but in no event later than the Shelf Effectiveness Date)
and to keep the Initial Shelf Registration continuously effective under the Securities Act until the date that is 24 months after the date it is declared effective (subject to extension
pursuant to the last paragraph of Section 6) (the "Effectiveness Period"), or such shorter period ending when (i) all Registrable
Securities covered by the Initial Shelf Registration have been sold in the manner set forth and as contemplated in the Initial Shelf Registration, (ii) a Subsequent Shelf Registration covering
all of the Registrable Securities has been declared effective under the Securities Act, (iii) such Registrable Securities are eligible for resale pursuant to Rule 144(k) under the
Securities Act or (iv) there ceases to be any outstanding Registrable Securities. 

        (b)  Subsequent Shelf Registrations. If any Shelf Registration ceases to be effective for any reason at any time during the
Effectiveness Period (other than because of the sale of all of the Registrable Securities registered thereunder), the Company and the Guarantors shall use their respective reasonable best efforts to
obtain the prompt withdrawal of any order suspending the effectiveness thereof, and in any event shall within 30 days of such cessation of effectiveness file an amendment to the Shelf
Registration in a manner reasonably expected to obtain the withdrawal of the order suspending the effectiveness thereof, or file an additional "shelf" Registration Statement pursuant to
Rule 415 covering all of the Registrable Securities (a "Subsequent Shelf Registration"). If a Subsequent Shelf Registration is filed, the Company
and the Guarantors shall use their respective reasonable best efforts to cause the Subsequent Shelf Registration to be declared effective as promptly as practicable after such filing and to keep such
Subsequent Shelf Registration continuously effective for a period 

6

 

equal to the number of days in the Effectiveness Period less the aggregate number of days during which the Initial Shelf Registration, and any previously filed Subsequent Shelf Registration, was
previously effective. 

        (c)  Provision of Information. The Company and the Guarantors may exclude from any Shelf Registration the Registrable
Securities of any Holder who, without a reasonable basis, fails to furnish to the Company in writing, within 20 days after receipt of a written request therefor, the information specified in
Item 507 or 508, as applicable, of Regulation S-K under the Securities Act for use in connection with any Shelf Registration or Prospectus or preliminary prospectus included
therein. No such Holder shall be entitled to liquidated damages pursuant to Section 4 unless and until such Holder shall have provided such information. Each Holder whose Registrable Securities
are to be included in a Shelf Registration Statement agrees to promptly furnish to the Company all additional information required to be disclosed in order to make the information previously furnished
to the Company by such Holder not materially misleading. 

4.
Liquidated Damages.

        (a)  The
Company and the Guarantors acknowledge and agree that the Holders will suffer damages, and that it would not be feasible to ascertain the extent of such damages with
precision, if the Company and the Guarantors fail to fulfill their respective obligations hereunder. Accordingly, in the event of
such failure, the Company and the Guarantors jointly and severally agree to pay liquidated damages to each Holder under the circumstances and to the extent set forth below: 

          (i)  if
the Exchange Offer Registration Statement has not been filed with the SEC on or prior to the Filing Date; 

        (ii)  if
the Exchange Offer Registration Statement is not declared effective by the SEC on or prior to the Effectiveness Date; or 

        (iii)  if
the Company and the Guarantors have not exchanged Exchange Securities for all Notes validly tendered in accordance with the terms of the Exchange Offer within
30 days after the date on which the Exchange Offer Registration Statement is declared effective by the SEC; 

        (iv)  if
obligated to file an Initial Shelf Registration and the Company and the Guarantors fail to file such Initial Shelf Registration with the SEC on or prior to Shelf
Filing Date; 

        (v)  if
an Initial Shelf Registration is filed and such Initial Shelf Registration is not declared effective on or prior to the Shelf Effectiveness Date; or 

        (vi)  if
a Shelf Registration is filed and declared effective by the SEC but thereafter ceases to be effective without being succeeded within 30 days by a Subsequent
Shelf Registration filed and declared effective; 

(each
of the foregoing an "Event," and the date on which the Event occurs being referred to herein as an "Event
Date"). 

        Upon
the occurrence of any Event, the Company shall pay, or cause to be paid (and the Guarantors hereby guarantee the payment of), in addition to amounts otherwise due under the
Indenture and the Registrable Securities, as liquidated damages, and not as a penalty, to each Holder for each weekly period beginning on the Event Date an amount equal to the Weekly Liquidated
Damages Amount per $1,000 principal amount of Registrable Securities held by such Holder; provided, that such liquidated damages will, in each case,
cease to accrue (subject to the occurrence of another Event) on the date on which all Events have been cured. An Event under clause (i) above shall be cured on the date that the Exchange Offer
Registration Statement (or, if an Initial Shelf Registration is required to be filed pursuant to clause (i), (ii) or (iii) of Section 2(i), the date that such Initial Shelf
Registration) is filed with
the SEC; an Event under clause (ii) above shall be cured on the date that the Exchange Offer Registration Statement (or, if an Initial Shelf Registration is required to be filed 

7

 

pursuant to clause (i), (ii) or (iii) of Section 2(i), the date that such Initial Shelf Registration) is declared effective by the SEC; an Event under clause (iii)
above shall be cured on the earlier of the date (A) the Exchange Offer is consummated with respect to all Notes validly tendered or (B) the Company delivers a Shelf Notice to the Holders
and the Trustee pursuant to clause (i), (ii) or (iii) of Section 2(i); an Event under clause (iv) above shall be cured on the date that such Initial Shelf
Registration is filed with the SEC; an Event under clause (v) above shall be cured on the date that such Initial Shelf Registration is declared effective by the SEC; and an Event under
clause (vi) above shall be cured on the earlier of (1) the date on which the applicable Shelf Registration is no longer subject to an order suspending the effectiveness thereof or
proceedings relating thereto or (2) a new Subsequent Shelf Registration is declared effective. 

        (b)  The
Company shall notify the Trustee within five Business Days after each Event Date. The Company shall pay the liquidated damages due on the Registrable Securities by
depositing with the Trustee, in trust, for the benefit of the Holders thereof, by 12:00 noon, New York City time, on or before the applicable semi-annual interest payment date for the
Registrable Securities, immediately available funds in sums sufficient to pay the liquidated damages then due. The liquidated damages amount due shall be payable in the same manner as interest
payments on the Notes on each interest payment date to the record Holder entitled to receive the interest payment to be made on such date as set forth in the Indenture. 

5.
Gaming Consents.

        Prior
to consummating the Exchange Offer or filing the Initial Shelf Registration, as the case may be, the Company and the Guarantors shall make or obtain all Permits necessary or
desirable for the consummation of the transactions contemplated hereby, including without limitation, the Exchange Offer, and the required approvals of the West Virginia Gaming Commission, the West
Virginia Lottery Commission, Nevada Gaming Commission, the Nevada State Gaming Control Board, and any other applicable gaming authorities (including the Pennsylvania State Horse Racing Commission and
the Ohio State Racing Commission). 

6.
Registration Procedures.

        In
connection with the registration of any Securities pursuant to Sections 2 or 3, the Company and the Guarantors shall effect such registrations to permit the sale of such Securities in
accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company and the Guarantors shall: 

        (a)  Prepare
and file with the SEC, as soon as practicable after the date hereof but in any event on or prior to the Filing Date, with respect to an Exchange Offer
Registration Statement, and on or prior to the Shelf Filing Date, with respect to a Shelf Registration, as prescribed by Sections 2 and 3, respectively, and use their respective reasonable best
efforts to cause each such Registration Statement to become effective and remain continuously effective as provided in this Agreement; provided, that if
(i) such filing is pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant to Section 2 is required to be delivered
under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, before filing any Registration Statement or Prospectus or any amendments
or supplements thereto, (A) the Company shall notify the Holders of the Registrable Securities covered by such Registration Statement, their Special Counsel, each Participating Broker-Dealer,
the managing underwriters, if any, and their counsel of such filing at least five Business Days prior to making such filing, (B) if requested, the Company and the Guarantors shall furnish to
and afford the Holders of the Registrable Securities covered by such Registration Statement, their Special Counsel, each Participating Broker-Dealer, the managing underwriters, if any, and their
counsel a reasonable opportunity to review, and shall make available for inspection by such Persons, copies of all such documents (including copies of any documents to be incorporated by reference
therein and all exhibits thereto) proposed to be filed and 

8

 

such financial and other information and books and records of the Company and the Guarantors, as shall be necessary, in the opinion of Special Counsel and the respective counsels to such
Participating Broker-Dealers and underwriters, to conduct a reasonable due diligence investigation within the meaning of the Securities Act, and (C) the Company and the Guarantors shall cause
the members, managers, officers, directors and employees of the Company and the Guarantors, and counsel and independent certified public accountants of the Company and the Guarantors, to respond to
such inquiries, as shall be necessary, in the opinion of Special Counsel and the respective counsels to such Participating Broker-Dealers and underwriters, to conduct a reasonable due diligence
investigation within the meaning of the Securities Act. The Company and the Guarantors may require each Holder to agree in writing to keep confidential any non-public information relating
to the Company and the Guarantors received by such Holder to refrain from using such information as the basis for any market transactions in the Securities of the Company and not to disclose such
information (other than to an affiliate or prospective purchaser who agrees in writing to respect the confidentiality provisions of this Section 6(a)) until such information has been made
generally available to the public unless the release of such information is required by law or necessary to respond to inquiries of regulatory authorities. The Company and the Guarantors shall not
file any Registration Statement or Prospectus or any amendments or supplements thereto which the Holders must be afforded an opportunity to review prior to the filing of such document, if the Holders
of a majority in aggregate principal amount of the Registrable Securities covered by such Registration Statement, their Special Counsel, any Participating Broker-Dealer or the managing underwriters,
if any, or their counsel shall reasonably object to such filing within five Business Days after receipt of the Company's notice of filing described above in this Section 6(a). A Holder shall be
deemed to have reasonably objected to such filing if such Registration Statement, amendment, Prospectus or supplement, as applicable, as proposed to be filed, contains an untrue statement of a
material fact or omits to state any material fact necessary to make the statements therein not misleading or fails to comply with the applicable requirements of the Securities Act. 

        (b)  Provide
an indenture trustee for the Registrable Securities or the Exchange Securities, as the case may be, and cause the Indenture (or other indenture relating to the
Registrable Securities) to be qualified under the TIA not later than the effective date of the first Registration Statement; in connection therewith, effect such changes to such indenture as may be
required for such indenture to be so qualified in accordance with the terms of the TIA; and execute, and use their respective reasonable best efforts to cause such trustee to execute, all documents as
may be required to effect
such changes, and all other forms and documents required to be filed with the SEC to enable such indenture to be so qualified in a timely manner. 

        (c)  Prepare
and file with the SEC such pre-effective amendments and post-effective amendments to the Registration Statement as may be necessary in
order to cause the Registration Statement to become effective and to keep such Registration Statement continuously effective for the time periods required hereby; cause the related Prospectus to be
supplemented by any Prospectus supplement required by Applicable Law, and as so supplemented to be filed pursuant to Rule 424 (or any similar provisions then in force) under the Securities Act,
and comply fully with Rules 424, 430A and 462, as applicable, under the Securities Act in a timely manner; and comply in all material respects with the provisions of the Securities Act and the
Exchange Act applicable thereto with respect to the disposition of all securities covered by such Registration Statement, as so amended, or in such Prospectus, as so supplemented, in accordance with
the intended methods of distribution set forth in such Registration Statement, as so amended, and such Prospectus, as so supplemented. 

        (d)  Furnish
to such selling Holders and Participating Broker-Dealers who so request (i) upon the Company's and the Guarantors' receipt, a copy of the order of the SEC
declaring such Registration Statement and any post-effective amendment thereto effective, (ii) such reasonable number of copies of such Registration Statement and of each amendment
and supplement thereto (in each case including any documents incorporated therein by reference and all exhibits (including exhibits incorporated by reference) to such Registration Statement and each
such amendment and supplement), (iii) such 

9

 

reasonable number of copies of the Prospectus included in such Registration Statement (including each preliminary prospectus and each supplement thereto), and such reasonable number of copies of the
final Prospectus as filed by the Company and the Guarantors pursuant to Rule 424(b) under the Securities Act, in conformity with the requirements of the Securities Act, and (iv) such
other documents (including any amendments and supplements required to be filed pursuant to Section 6(c) and any documents incorporated therein by reference and all exhibits thereto, including
exhibits incorporated by reference), as any such Person may reasonably request. The Company and the Guarantors hereby consent to the use of the Prospectus by each of the selling Holders of Registrable
Securities and by each such Participating Broker-Dealer, as the case may be, and the underwriters or agents, if any, and dealers (if any), in connection with the offering and sale of the Registrable
Securities covered by, or the sale by Participating Broker-Dealers of the Exchange Securities pursuant to, such Prospectus and any amendment or supplement thereto. 

        (e)  If
(A) a Shelf Registration is filed pursuant to Section 3 or (B) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, notify the selling
Holders of Registrable Securities, their Special Counsel, each Participating Broker-Dealer and the managing underwriters, if any, promptly (but in any event within five Business Days), and, if
requested by such Person, confirm such notice in writing, (i) when a Prospectus or any Prospectus supplement or Registration Statement or post-effective amendment has been filed,
and, with respect to a Registration Statement or any post-effective amendment, when the same has become effective under the Securities Act, (ii) of the issuance by the SEC of any
stop order suspending the effectiveness of a Registration Statement or of any order preventing or suspending the use of any Prospectus or the initiation of any proceedings for that purpose,
(iii) if, at any time when a Prospectus
is required by the Securities Act to be delivered in connection with sales of the Registrable Securities, the representations and warranties of the Company and the Guarantors contained in any
agreement (including any underwriting agreement) contemplated by Section 6(n) below cease to be true and correct in any material respect, (iv) of the receipt by the Company or any of the
Guarantors of any notification with respect to the suspension of the qualification or exemption from qualification of a Registration Statement or any of the Registrable Securities or the Exchange
Securities to be sold by any Participating Broker-Dealer for offer or sale in any jurisdiction, or the contemplation, initiation or threatening of any proceeding for such purpose, (v) of the
happening of any event that makes any statement made in such Registration Statement or related Prospectus or any document incorporated or deemed to be incorporated therein by reference to be untrue in
any material respect or that requires the making of any additions to or changes in such Registration Statement, Prospectus or documents so that it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which such statements were made, not misleading,
(vi) of the Company's and the Guarantors' reasonable determination that a post-effective amendment to a Registration Statement would be appropriate, and (vii) of any request
by the SEC for amendments to the Registration Statement or supplements to the Prospectus or for additional information relating thereto. 

        (f)    Use
their respective reasonable best efforts to register or qualify, and, if applicable, to cooperate with the selling Holders of Registrable Securities, the
underwriters, if any, and their respective counsel in connection with the registration or qualification (or exemption from such registration or qualification) of, Registrable Securities to be included
in a Registration Statement for offer and sale under the securities or Blue Sky laws of such jurisdictions within the United States as any selling Holder, Participating Broker-Dealer or the managing
underwriters reasonably request in writing; and, if Securities are offered other than through an Underwritten Offering, the Company and the Guarantors shall cause their respective counsel to perform
Blue Sky investigations and file registrations and qualifications required to be filed pursuant to this Section 6(f) at the expense of the Company and the Guarantors; keep each such
registration or qualification (or exemption therefrom) 

10

 

effective during the period such Registration Statement is required to be kept effective and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions
of the Securities covered by the applicable Registration Statement; provided, however, that none of the
Company or the Guarantors shall be required to (i) register or qualify generally to do business in any jurisdiction where it is not then so qualified, (ii) take any action that would
subject it to general service of process in any jurisdiction where it is not then so subject or (iii) take any action that would subject it to general taxation in respect of doing business in
any such jurisdiction where it is not then so subject. 

        (g)  Use
their respective reasonable best efforts to prevent the issuance of any order suspending the effectiveness of a Registration Statement or preventing or suspending
the use of a Prospectus or suspending the qualification (or exemption from qualification) of any of the Securities for sale in any jurisdiction, and, if any such order is issued, use their respective
best efforts to obtain the withdrawal or lifting of any such order at the earliest possible time. 

        (h)  If
(i) a Shelf Registration is filed pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable
Period, and if requested by the managing underwriters, if any, such Participating Broker-Dealer or the Holders of a majority in aggregate principal amount of the Registrable Securities,
(A) promptly incorporate in a Prospectus supplement or post-effective amendment such information as the managing underwriters, if any, or such Holders reasonably request to be
included therein as required to comply with any Applicable Law and (B) make all required filings of such Prospectus supplement or such post-effective amendment as soon as
practicable after the Company and the Guarantors have received notification of such matters required by Applicable Law to be incorporated in such Prospectus supplement or post-effective
amendment. 

        (i)    If
(i) a Shelf Registration is filed pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, cooperate with the
selling Holders, such Participating Broker-Dealer and the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be
sold, which certificates shall not bear any restrictive legends and shall be in a form eligible for deposit with The Depository Trust Company ("DTC");
and enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters, if any, such Participating Broker-Dealer or the Holders may request. 

        (j)    If
(i) a Shelf Registration is filed pursuant to Section 3 or (ii) a Prospectus contained in an Exchange Offer Registration Statement filed pursuant
to Section 2 is required to be delivered under the Securities Act by any Participating Broker-Dealer who seeks to sell Exchange Securities during the Applicable Period, upon the occurrence of
any event contemplated by Section 6(e)(v), 6(e)(vi) or 6(e)(vii), as promptly as practicable prepare a post-effective amendment to the Registration Statement, a supplement to
the related Prospectus or a supplement or amendment to any such document incorporated or deemed to be incorporated therein by reference, or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Securities being sold thereunder or to the purchasers of the Exchange Securities to whom such Prospectus will be delivered by a Participating
Broker-Dealer, such Prospectus will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and, if SEC review is required, use their respective reasonable best efforts to cause such post-effective amendment
to be declared effective as soon as practicable. 

        (k)  Use
their respective reasonable best efforts to cause the Securities covered by a Registration Statement to be rated with the appropriate rating agencies, if
appropriate, and if so requested by the 

11

 

holders of a majority in aggregate principal amount of Securities covered by such Registration Statement or the managing underwriters, if any. 

        (l)    Prior
to the effective date of the first Registration Statement relating to the Securities, (i) provide the applicable trustee with printed certificates for the
Securities in a form eligible for deposit with DTC and (ii) provide a CUSIP number for each of the Securities. 

        (m)  Use
their respective reasonable best efforts to cause all Securities covered by such Registration Statement to be listed on each securities exchange, if any, on which
similar debt securities issued by the Company are then listed. 

        (n)  If
a Shelf Registration is filed pursuant to Section 3, enter into such agreements (including an underwriting agreement in form, scope and substance as is
customary in Underwritten Offerings) and take all such other actions in connection therewith (including those reasonably requested by the managing underwriters, if any, or the Holders of a majority in
aggregate principal amount of Registrable Securities being sold) in order to expedite or facilitate the registration or the disposition of such Registrable Securities, and in such connection, whether
or not an underwriting agreement is entered into and whether or not the registration is an Underwritten Registration, (i) make such representations and warranties to the Holders and the
underwriters, if any, with respect to the business of the Company and their respective subsidiaries, if any, and the Registration Statement, Prospectus and documents, if any, incorporated or deemed to
be incorporated by reference therein, in each case, in form, substance and scope as are customarily made by Company to underwriters in Underwritten Offerings, and confirm the same if and when
reasonably requested; (ii) obtain opinions of counsel to the Company and the Guarantors and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the managing underwriters, if any, and the Holders of a majority in aggregate principal amount of the Registrable Securities being sold), addressed to each selling Holder and each of
the underwriters, if any, covering the matters customarily covered in opinions requested in Underwritten Offerings; (iii) obtain "cold comfort" letters and updates thereof (which letters and
updates (in form, scope and substance) shall be reasonably satisfactory to the managing underwriters) from the independent certified public accountants of the Company and the Guarantors (and, if
necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed to each of the underwriters and each selling Holder, such letters to be in customary form and covering matters of the type
customarily covered in "cold comfort" letters in connection with Underwritten Offerings and such other matters as reasonably requested by underwriters; and (iv) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority in principal amount of the Registrable Securities being sold and the managing underwriters, if any, to evidence the continued
validity of the representations and warranties of the Company and the Guarantors and their respective subsidiaries, if any, made pursuant to clause (i) above and to evidence compliance with any
conditions contained in the underwriting agreement or other similar agreement entered into by the Company and the Guarantors. 

        (o)  Comply
with all applicable rules and regulations of the SEC and make generally available to their respective security holders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act) no later than 45 days after the end of any
12-month period (or 90 days after the end of any 12-month period if such period is a fiscal year) (i) commencing on the first day of the fiscal quarter following
each fiscal quarter in which Registrable Securities are sold to underwriters in a firm commitment or best efforts underwritten offering and (ii) if not sold to underwriters in such an offering,
commencing on the first day of the first fiscal quarter of the Company after the effective date of a Registration Statement, which statements shall cover said 12-month periods. 

12

 

        (p)  Upon
consummation of an Exchange Offer or Private Exchange, obtain an opinion of counsel to the Company and the Guarantors (in form, scope and substance reasonably
satisfactory to the Initial Purchasers), addressed to all Holders participating in the Exchange Offer or Private Exchange, as the case may be, to the effect that (i) the Company and the
Guarantors have duly authorized, executed and delivered the Exchange Securities or the Private Exchange Securities, as the case may be, and the Indenture, (ii) the Exchange Securities or the
Private Exchange Securities, as the case may be, and the Indenture constitute legal, valid and binding obligations of the Company and the Guarantors, enforceable against the Company and the Guarantors
in accordance with their respective terms, except as such enforcement may be subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally and (B) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law), and (iii) all obligations of
the Company and the Guarantors under the Exchange Securities or the Private Exchange Securities, as the case may be, and the Indenture are secured by Liens (as defined in the Indenture) on the assets
securing the obligations of the Company and the Guarantors under the Notes and the Indenture immediately prior to the consummation of such Exchange Offer or Private Exchange, as the case may be. 

        (q)  If
an Exchange Offer or Private Exchange is to be consummated, upon delivery of the Registrable Securities by such Holders to the Company and the Guarantors (or to such
other Person as directed by the Company and the Guarantors) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company and the Guarantors shall mark,
or caused to be marked, on such Registrable Securities that such Registrable Securities are being cancelled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may
be, and in no event shall such Registrable Securities be marked as paid or otherwise satisfied. 

        (r)  Cooperate
with each seller of Registrable Securities covered by any Registration Statement and each underwriter, if any, participating in the disposition of such
Registrable Securities and their respective counsel in connection with any filings required to be made with the NASD. 

        (s)  Use
their respective reasonable best efforts to take all other steps necessary to effect the registration of the Registrable Securities covered by a Registration
Statement contemplated hereby. 

        Each
Holder and each Participating Broker-Dealer agrees by acquisition of such Registrable Securities or Exchange Securities that, upon receipt of written notice from the Company and the
Guarantors of the happening of any event of the kind described in Section 6(e)(ii), 6(e)(iv), 6(e)(v), 6(e)(vi) or 6(e)(vii), such Holder will forthwith discontinue disposition (in the
jurisdictions specified in a notice of a 6(e)(iv) event, and elsewhere in a notice of a 6(e)(ii), 6(e)(v), 6(e)(vi) or 6(e)(vii) event) of such Securities covered by such
Registration Statement or Prospectus until the earlier of (i) such Holder's receipt of the copies of the amended or supplemented Prospectus contemplated by Section 6(j); or
(ii) the time such Holder is advised in writing (the "Advice") by the Company and the Guarantors that offers or sales in a particular
jurisdiction may be resumed, or that the use of the applicable Prospectus may be resumed, as the case may be, and has received copies of any amendments or supplements thereto. If so directed by the
Company in such notice, each Holder and each Participating Broker-Dealer will deliver to the Company (at the Company's expense) all copies of the Prospectus covering
such Securities that was current at the time of such Holder's or Participating Broker-Dealer's receipt of such notice. If the Company and the Guarantors shall give such notice, each of the
Effectiveness Period and the Applicable Period shall be extended by the number of days during such periods from and including the date of the giving of such notice to and including the date when each
seller of such Securities covered by such Registration Statement shall have received (x) the copies of the amended or supplemented Prospectus contemplated by Section 6(j) or
(y) the Advice. 

13

   
7. Registration Expenses.

        (a)  All
fees and expenses incident to the performance of or compliance with this Agreement by the Company and the Guarantors shall be borne by the Company and the Guarantors
whether or not the Exchange Offer is consummated or the Exchange Offer Registration Statement or a Shelf Registration is filed or becomes effective, including, without limitation: 

          (i)  all
registration and filing fees (including, without limitation, (A) fees with respect to filings required to be made with the NASD and (B) fees and
expenses of compliance with state securities or Blue Sky laws (including, without limitation, reasonable fees and disbursements of counsel in connection with Blue Sky qualifications of the Registrable
Securities or Exchange Securities and determination of the eligibility of the Registrable Securities or Exchange Securities for investment under the laws of such jurisdictions (x) where the
Holders are located, in the case of the Exchange Securities, or (y) as provided in Section 6(f), in the case of Registrable Securities or Exchange Securities to be sold by a
Participating Broker-Dealer during the Applicable Period)); 

        (ii)  printing
expenses (including, without limitation, expenses of printing certificates for Registrable Securities or Exchange Securities in a form eligible for deposit
with DTC and of printing prospectuses if the printing of prospectuses is requested by the managing underwriters, if any, or, in respect of Registrable Securities or Exchange Securities to be sold by a
Participating Broker-Dealer during the Applicable Period, by the Holders of a majority in aggregate principal amount of the Registrable Securities included in any Registration Statement or of such
Exchange Securities, as the case may be); 

        (iii)  messenger,
telephone, duplication, word processing and delivery expenses incurred by the Company and the Guarantors in the performance of their obligations hereunder; 

        (iv)  fees
and disbursements of counsel for the Company, the Guarantors and, subject to Section 7(b), the Holders; 

        (v)  fees
and disbursements of all independent certified public accountants referred to in Section 6(n)(iii) (including, without limitation, the expenses of any
special audit and "cold comfort" letters required by or incident to such performance); 

        (vi)  fees
and expenses of any "qualified independent underwriter" or other independent appraiser participating in an offering pursuant to Section 3 of
Schedule E to the By-laws of the NASD, but only where the need for such a "qualified independent underwriter" arises due to a relationship with the Company and the Guarantors; 

      (vii)  Securities
Act liability insurance, if the Company and the Guarantors so desire such insurance 

      (viii)  fees
and expenses of all other Persons, including special experts, retained by the Company or the Guarantors; internal expenses of the Company and the Guarantors
(including, without limitation, all salaries and expenses of their respective officers and employees performing legal or accounting duties), and the expenses of any annual audit; and 

        (ix)  rating
agency fees and the fees and expenses incurred in connection with the listing of the Securities to be registered on any securities exchange. 

        (b)  The
Company and the Guarantors shall reimburse the Holders for the reasonable fees and disbursements of not more than one counsel (in addition to appropriate local
counsel) chosen by the Holders of a majority in aggregate principal amount of the Registrable Securities to be included in any Registration Statement and other reasonable and necessary
out-of-pocket expenses of the Holders incurred in connection with the registration of the Registrable Securities. 

14

 

8.
Indemnification.

        (a)  Indemnification by the Company and the Guarantors. The Company and the Guarantors, jointly and severally, shall, without
limitation as to time, indemnify and hold harmless each Holder and each Participating Broker-Dealer, each Person who controls (within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act (any of such persons being hereinafter referred to as a "controlling person")) each such Holder and any such
Participating Broker-Dealer and the members, managers, officers, directors, partners, employees, representatives and agents of each such Holder, Participating Broker-Dealer and controlling person
(collectively, the "Holder Indemnified
Parties"), to the fullest extent lawful, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, costs of preparation and
reasonable attorneys' fees) and expenses (including, without limitation, costs and expenses incurred in connection with investigating, preparing, pursuing or defending against any of the foregoing)
(collectively, "Losses"), as incurred, directly or indirectly caused by, related to, based upon, arising out of or in connection with any untrue or
alleged untrue statement of a material fact contained in any Registration Statement, preliminary prospectus, Prospectus or form of prospectus, or in any amendment or supplement thereto, or any
omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading, except insofar as such Losses are based upon information relating to such Holder or Participating Broker-Dealer and furnished in writing to the Company and the Guarantors by such
Holder or Participating Broker-Dealer expressly for use therein; provided, that neither of the Company nor any Guarantor shall be liable under the
indemnity provided in this Section 8(a) to any Holder Indemnified Party for any Losses that (A) result solely from an untrue statement of a material fact contained in, or the omission of
a material fact from, any preliminary prospectus, which untrue statement or omission was corrected in the Prospectus (as then amended or supplemented) if it shall have been determined by a court of
competent jurisdiction by final and nonappealable judgment that (1) such Holder Indemnified Party sold the Securities to the person alleging such Loss and failed to send or give, at or prior to
the written confirmation of such sale, a copy of the Prospectus (as then amended or supplemented), if required by law to have so delivered it, and (2) the Company had previously furnished
copies of the corrected Prospectus to such Holder Indemnified Party within a reasonable amount of time prior to such sale or such confirmation, and (3) the corrected Prospectus, if delivered,
would have been a complete defense against the person asserting such Loss. The Company and each of the Guarantors shall also indemnify underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, their members, managers, officers, directors, agents and employees and each of their respective controlling persons to the same
extent as provided above with respect to the indemnification of the Holder Indemnified Parties. 

        (b)  Indemnification by Holders of Registrable Securities. In connection with any Registration Statement, preliminary
prospectus, Prospectus or form of prospectus, or any amendment or supplement thereto, in which a Holder is participating, such Holder shall furnish to the Company and the Guarantors in writing such
information as the Company and the Guarantors reasonably request for use in connection with any such Registration Statement, preliminary prospectus, Prospectus or form of prospectus, any amendment or
supplement thereto, and shall, severally and not jointly, without limitation as to time, indemnify and hold harmless the Company and the Guarantors, their respective members, managers, directors,
officers, agents and employees, each controlling person of the Company or any of the Guarantors and the members, managers, directors, officers, agents or employees of such controlling persons, to the
fullest extent lawful, from and against any and all Losses, as incurred, arising out of or based upon any untrue or alleged untrue statement of a material fact contained in any such Registration
Statement, preliminary prospectus, Prospectus or form of prospectus, or any amendment or supplement thereto, or any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading to the extent, but only to the extent, that such untrue statement 

15

 

or alleged untrue statement of a material fact or omission or alleged omission of a material fact is contained in or omitted from any information so furnished in writing by such Holder to the Company
and the Guarantors expressly for use in any Registration Statement, preliminary prospectus, Prospectus or form of prospectus, or any amendment or supplement thereto. In no event shall the liability of
any selling Holder be greater in amount than such Holder's Maximum Contribution Amount (as defined below). 

        (c)  Conduct of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to
indemnification hereunder (an "indemnified party"), such indemnified party shall promptly notify the party or parties from which such indemnification is
sought (the "indemnifying parties") in writing; provided, that the failure to so notify the indemnifying
parties shall not relieve the indemnifying parties from any obligation or liability except to the extent (but only to the extent) that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal) that the indemnifying parties have been prejudiced materially by such failure. 

        The
indemnifying parties shall have the right, exercisable by giving written notice to an indemnified party, within 20 Business Days after receipt of written notice from such indemnified
party of such Proceeding, to assume, at their expense, the defense of any such Proceeding; provided, that an indemnified party shall have the right to
employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless:
(i) the indemnifying parties have agreed to pay such fees and expenses; (ii) the indemnifying parties shall have failed promptly to assume the defense of such Proceeding or shall have
failed to employ counsel reasonably satisfactory to such indemnified party; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such indemnified
party and one or more indemnifying parties (or any affiliates or controlling persons of any of the indemnifying parties), and such indemnified party shall have been advised by counsel that there may
be one or more defenses available to such indemnified party that are in addition to, or in conflict with, those defenses available to the indemnifying party or such affiliate or controlling person (in
which case, if such indemnified party notifies the indemnifying parties in writing that it elects to employ separate counsel at the expense of the indemnifying parties, the indemnifying parties shall
not have the right to assume the defense thereof and the reasonable fees and expenses of such counsel shall be at the expense of the indemnifying parties; it being understood, however, that, the
indemnifying parties shall not, in connection with any one such Proceeding or separate but substantially similar or related Proceedings in the same jurisdiction, arising out of the same general
allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (together with appropriate local counsel) at any time for such indemnified party). 

        No
indemnifying party shall be liable for any settlement of any such Proceeding effected without its written consent, but if settled with its written consent, or if there be a final
judgment for the plaintiff in any such Proceeding, each indemnifying party jointly and severally agrees, subject to the exceptions and limitations set forth above, to indemnify and hold harmless each
indemnified party from and against any and all Losses by reason of such settlement or judgment. The indemnifying party shall not consent to the entry of any judgment or enter into any settlement that
does not include as an unconditional term thereof the giving by the claimant or plaintiff to each indemnified party of a release, in form and substance reasonably satisfactory to the indemnified
party, from all liability in respect of such Proceeding for which such indemnified party would be entitled to indemnification hereunder (whether or not any indemnified party is a party thereto). 

        (d)  Contribution. If the indemnification provided for in this Section 8 is unavailable to an indemnified party or is
insufficient to hold such indemnified party harmless for any Losses in respect of which this Section 8 would otherwise apply by its terms (other than by reason of exceptions provided in this
Section 8), then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall have a joint and several obligation to contribute to the amount paid or payable by
such 

16

 

indemnified party as a result of such Losses, (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the sale of Registrable Securities, or (ii) if the allocation provided by clause (i) above is not permitted by Applicable Law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of
such indemnifying party, on the one hand, and indemnified party, on the other hand, shall be determined by reference to, among other things, whether any untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates to information supplied by such indemnifying party or indemnified party, and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent any such statement or omission. The amount paid or payable by an indemnified party as a result of any Losses shall be deemed to include any
legal or other fees or expenses incurred by such party in connection with any Proceeding, to the extent such party would have been indemnified for such fees or expenses if the indemnification provided
for in Section 8(a) or 8(b) was available to such party. 

        The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 8(d) were determined by pro rata allocation or by any other method of
allocation that does not take account of the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 8(d), an indemnifying
party that is a selling Holder shall not be required to contribute, in the aggregate, any amount in excess of such Holder's Maximum Contribution Amount. A selling Holder's
"Maximum Contribution Amount" shall equal the excess, if any, of (i) the aggregate proceeds received by such Holder pursuant to the sale of the
Registrable Securities giving rise to such indemnification obligation over (ii) the aggregate amount of damages that such Holder has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders' obligations to contribute pursuant to this Section 8(d) are several in proportion to the
respective principal amount of the Registrable Securities held by each Holder hereunder and not joint. The Company's obligations to contribute pursuant to this Section 8(d) are joint and
several. 

        The
indemnity and contribution agreements contained in this Section 8 are in addition to any liability that the indemnifying parties otherwise may have to the indemnified parties. 

9.
Rule 144 and Rule 144A.

        Each
of the Company covenants that (a) during any period that it is required to file reports under the Securities Act or the Exchange Act, it shall file all reports required to be
filed by it in a timely manner in order to permit resales of Registrable Securities pursuant to Rule 144 under the Securities Act and (b) during any period that it is not required to
file such reports, it shall, upon the request of any Holder, make available to each Holder or beneficial owner of Registrable Securities and to any
prospective purchaser of Registrable Securities designated by such Holder or beneficial owner the information required by Rule 144A(d)(4) under the Securities Act to permit resales of
Registrable Securities pursuant to Rule 144A. The Company shall take such further action as any Holder may reasonably request, all to the extent required from time to time to enable such Holder
to sell Registrable Securities without registration under the Securities Act pursuant to the exemptions provided by Rule 144 and Rule 144A. Upon the request of any Holder, each of the
Company and the Guarantors shall deliver to such Holder a written statement as to whether such Issuer or Guarantor has complied with such information requirements. Nothing in this Section 9
shall be deemed to require the Company to register any Securities pursuant to the Exchange Act. 

17

 

10.  Underwritten Registrations.

        If
any of the Registrable Securities covered by any Shelf Registration are to be sold in an Underwritten Offering, the investment banker or investment bankers and manager or managers
that will manage the offering will be selected by the Holders of a majority in aggregate principal amount of such Registrable Securities included in such offering with the consent of the Company,
which consent shall not be unreasonably withheld or delayed. 

        No
Holder may participate in any Underwritten Registration hereunder unless such Holder (a) agrees to sell such Holder's Registrable Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements and (b) completes and executes all questionnaires, powers of attorney, underwriting agreements
and other documents reasonably required under the terms of such underwriting arrangements. 

11.
Miscellaneous.

        (a)  Remedies. In the event of a breach by the Company or any of the Guarantors of any of their respective obligations under
this Agreement, each Holder, in addition to being entitled to exercise all rights provided herein, in the Indenture or, in the case of the Initial Purchasers, in the Purchase Agreement, or granted by
law, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and the Guarantors agree that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by the Company or any of the Guarantors of any of the provisions of this Agreement and hereby further agree that, in the event of any action
for specific performance in respect of such breach, the Company and the Guarantors shall waive the defense that a remedy at law would be adequate. 

        (b)  No Inconsistent Agreements. The Company and the Guarantors have not entered into, as of the date hereof, and shall not
enter into, after the date of this Agreement, any agreement with respect to any of
their respective securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. For the avoidance of doubt, nothing in this
Agreement shall limit the Company's and the Guarantors' ability to register shares underlying stock options granted to the Company's directors, officers and employees in the ordinary course of the
Company's business or register Track Contingent Earnout Payments (as defined in the Indenture). 

        (c)  Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of Holders of at least a majority of
the then outstanding aggregate principal amount of Registrable Securities; provided, that Sections 4(a) and 8 shall not be amended, modified or
supplemented, and waivers or consents to departures from this proviso may not be given, unless the Company have obtained the written consent of each Holder. Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose securities are being sold pursuant to a Registration Statement and that
does not directly or indirectly affect the rights of other Holders may be given by Holders of at least a majority in aggregate principal amount of the Registrable Securities being sold by such Holders
pursuant to such Registration Statement; provided that the provisions of this sentence may not be amended, modified or supplemented except in accordance
with the provisions of the immediately preceding sentence. 

        (d)  Notices. All notices and other communications (including, without limitation, any notices or other communications to the
Trustee) provided for or permitted hereunder shall be made in writing by hand-delivery, certified first-class mail with return receipt requested, next-day air courier or
facsimile: 

          (i)  if
to a Holder, at the most current address given by such Holder to the Company in accordance with the provisions of this Section 11(d), which address initially
is, with respect to each Holder, the address of such Holder maintained by the Registrar (as defined in the Indenture), with 

18

 

a copy to Skadden, Arps, Slate, Meagher & Flom LLP, 300 South Grand Avenue, Suite 3400, Los Angeles, California 90071, facsimile number (213) 687-5600, Attention: Nicholas
P. Saggese, Esq.; and 

        (ii)  if
to the Company or any of the Guarantors, initially at MTR Gaming Group, Inc., State Route 2 South, P.O. Box 358, Chester, West Virginia 26034,
facsimile number (304) 387-2167, Attention: Chief Financial Officer, with a copy to Ruben & Aronson, LLP, 3299 K Street, N.W., Suite 403, Washington, D.C. 20007, facsimile
number (202) 965-3700, Attention: Robert L. Ruben, Esq., and thereafter at such other address, notice of which is given in accordance with the provisions of this
Section 11(d). 

        All
such notices and communications shall be deemed to have been duly given: when delivered by hand, if personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if
mailed; one Business Day after being timely delivered to a next-day air courier, if sent by next-day air courier; and when receipt is acknowledged by the addressee, if sent by
facsimile. 

        Copies
of all such notices, demands or other communications shall be concurrently delivered by the Person giving the same to the Trustee under the Indenture at the address specified in
the Indenture. 

        (e)  Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties hereto, including without limitation and without the need for an express assignment, subsequent Holders; provided, that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable Securities in violation of the terms hereof or of the Purchase Agreement or the Indenture. If any
transferee of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to be bound by and to perform all of the terms and provisions of this
Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such Person shall be entitled to receive the benefits hereof. 

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

        (g)  Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. When a reference is made in this Agreement to a Section, paragraph, subparagraph, Schedule or Exhibit, such reference shall mean a Section, paragraph, subparagraph, Schedule or
Exhibit to this Agreement unless otherwise indicated. The words "include," "includes," and
"including" when used in this Agreement shall be deemed in each case to be followed by the words "without
limitation." The phrases "the date of this Agreement," "the date hereof," and
terms of similar import, unless the context otherwise requires, shall be deemed to refer to March 25, 2003. The words "hereof,"
"herein," "herewith," "hereby" and
"hereunder" and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement. 

        (h)  GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED, AND THE RIGHTS OF THE PARTIES SHALL BE DETERMINED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND RULE 327(b) OF NEW YORK
CIVIL PRACTICE LAWS AND RULES. THE COMPANY AND EACH GUARANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK OR
ANY FEDERAL COURT SITTING IN THE 

19

 

BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. THE COMPANY AND EACH GUARANTOR IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW,
TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION
OR PROCEEDING BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE COMPANY AND EACH GUARANTOR IRREVOCABLY CONSENTS, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW,
TO THE SERVICE OF PROCESS OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY OR SUCH
GUARANTOR, AS THE CASE MAY BE, AT ITS ADDRESS SET FORTH HEREIN, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE INITIAL PURCHASER TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY OR ANY OF THE GUARANTORS IN ANY OTHER JURISDICTION. 

        (i)    Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no
way be affected, impaired or invalidated, and the parties hereto shall use their respective best efforts to find and employ an alternative means to achieve the same or substantially the same result as
that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

        (j)    Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement, and is intended to
be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein, with respect to the registration rights granted by the Company and the Guarantors in respect of securities sold pursuant to the Purchase
Agreement. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 

        (k)  Attorneys' Fees. In any Proceeding brought to enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the prevailing party, as determined by the courts, shall be entitled to recover reasonable attorneys' fees in addition to its costs and expenses and any other available
remedy. 

        (l)    Securities Held by the Company or its Affiliates. Whenever the consent or approval of Holders of a specified percentage
of the principal amount of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its affiliates (as such term is defined in Rule 405 under the Securities Act) (other than Holders deemed to be such affiliates solely by reason of
their holdings of such Registrable Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

[signature pages follow this page]

20

 

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

	 	 	MTR Gaming Group, Inc.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
MOUNTAINEER PARK, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault Title: President
	

 	
 	
SPEAKEASY GAMING OF LAS VEGAS, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
SPEAKEASY GAMING OF RENO, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	

 	
 	
PRESQUE ISLE DOWNS, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President
	
 	
 	

RACING ACQUISITION, INC.
	

 	
 	

By:	
 	

/s/  EDSON R. ARNEAULT      
 Name: Edson R. Arneault

Title: President

	

ACCEPTED AND AGREED TO:
	
 JEFFERIES & COMPANY, INC.
	

By:	
 	

/s/

	
 WELLS FARGO SECURITIES, LLC
	

By:	
 	

/s/

21

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