Document:

EXHIBIT 4.26

 Exhibit 4.26 
 SUPPLEMENTAL INDENTURE No. 1 
 6 1/8% Senior Notes due 2013 
 SUPPLEMENTAL INDENTURE No. 1 (this “Supplemental Indenture”), dated as of August 4, 2006, among Mohegan Ventures-Northwest, LLC (the “Subsidiary Guarantor”), a subsidiary of
the Mohegan Tribal Gaming Authority (or its permitted successor), (the “Authority”), the Authority, the other Subsidiary Guarantors (as defined in the Indenture referred to herein) and U.S. Bank National Association, as trustee
under the Indenture referred to below (the “Trustee”).  
 W I T N E S S E T H: 
 WHEREAS, the Authority has heretofore executed and delivered to
the Trustee an indenture (the “Indenture”), dated as of February 8, 2005 providing for the issuance of an aggregate principal amount of up to $250,000,000 of 6 1/8% Senior Notes due 2013 (the “Notes”); 
 WHEREAS, the Indenture provides that under certain circumstances the Subsidiary Guarantor shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Subsidiary Guarantor shall unconditionally guarantee all of the Authority’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Subsidiary
Guarantee”); and 
 WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this
Supplemental Indenture. 
 NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the Subsidiary Guarantor and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 
 1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 
 2. INDENTURE PROVISION PURSUANT TO WHICH GUARANTEE IS GIVEN. This Supplemental Indenture is being executed and delivered pursuant to Section 4.20 of
the Indenture. 
 3. AGREEMENT TO GUARANTEE. The Subsidiary Guarantor hereby agrees as follows: 
 (a) The Subsidiary Guarantor, jointly and severally with all other Subsidiary Guarantors, if any, unconditionally guarantees to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, the Notes or the obligations of the Authority hereunder or thereunder, that: 
 (i) the principal of and interest on the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes, if any, if lawful, and all other obligations of the Authority to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and 

 (ii) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. Failing payment when due of any amount so guaranteed
or any performance so guaranteed for whatever reason, the Subsidiary Guarantors shall be jointly and severally obligated to pay the same immediately, in each case to the extent lawful. 
 Notwithstanding the foregoing, in the event that this Subsidiary Guarantee would constitute or result in a violation of any applicable fraudulent
conveyance or similar law of any relevant jurisdiction, the liability of such Subsidiary Guarantor under this Supplemental Indenture and its Subsidiary Guarantee shall be limited to such amount as will not, after giving effect thereto, and to all
other liabilities of such Subsidiary Guarantor, result in such amount constituting a fraudulent transfer or conveyance. 
 4. EXECUTION AND
DELIVERY OF SUBSIDIARY GUARANTEE. 
 (a) To evidence its Subsidiary Guarantee set forth in this Supplemental Indenture, the Subsidiary
Guarantor hereby agrees that a notation of such Subsidiary Guarantee shall be endorsed by an officer of such Subsidiary Guarantor on each Note authenticated and delivered by the Trustee after the date hereof. 
 (b) Notwithstanding the foregoing, the Subsidiary Guarantor hereby agrees that its Subsidiary Guarantee set forth herein shall remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such Subsidiary Guarantee. 
 (c) If an officer whose signature is
on this Supplemental Indenture or on the Subsidiary Guarantee no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall be valid nevertheless. 

(d) The delivery of the Note by the Trustee, after the authentication thereof under the Indenture, shall constitute due delivery of the Subsidiary
Guarantee set forth in this Supplemental Indenture on behalf of the Subsidiary Guarantor. 
 (e) The Subsidiary Guarantor hereby agrees that
its obligations hereunder shall be unconditional, regardless of the validity, regularity or enforceability of the Notes or the Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to
any provisions hereof or thereof, the recovery of any judgment against the Authority, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor in each case to
the extent lawful. 
 (f) The Subsidiary Guarantor hereby waives, to the extent lawful, diligence, presentment, demand of payment, filing of
claims with a court in the event of insolvency or bankruptcy of the Authority, any right to require a proceeding first against the Authority, protest, notice and all demands whatsoever and covenants that its Subsidiary Guarantee made pursuant to

  

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 this Supplemental Indenture will not be discharged except by complete performance of the obligations contained in the
Notes and the Indenture or pursuant to Section 5(b) of this Supplemental Indenture. 
 (g) If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Supplemental Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then, and in every such case,
subject to any determination in such proceeding, the Subsidiary Guarantor, the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Subsidiary
Guarantor, the Trustee and the Holders shall continue as though no such proceeding had been instituted. 
 (h) The Subsidiary Guarantor
hereby waives and will not in any manner whatsoever claim or take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights against the Authority or any other Subsidiary Guarantor as a result of any
payment by such Subsidiary Guarantor under its Subsidiary Guarantee. The Subsidiary Guarantor further agrees that, as between the Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the other hand: 
 (i) in each case, to the extent lawful, the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 6 of
the Indenture for the purposes of the Subsidiary Guarantees made pursuant to this Supplemental Indenture, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby; and

 (ii) in the event of any declaration of acceleration of such obligations as provided in Article 6, such obligations
(whether or not due and payable) shall forthwith become due and payable by each Subsidiary Guarantor for the purpose of the Subsidiary Guarantee made pursuant to this Supplemental Indenture, in each case to the extent lawful. 
 (i) The Subsidiary Guarantor shall have the right to seek contribution from any other nonpaying Subsidiary Guarantor, if any, so long as the exercise of
such right does not impair the rights of the Holders under the Subsidiary Guarantee made pursuant to this Supplemental Indenture. 
 (j) The
Subsidiary Guarantor covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the performance of the Indenture or this Subsidiary Guarantee; and the Subsidiary Guarantor (to the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

  

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 5. SUBSIDIARY GUARANTOR MAY CONSOLIDATE, ETC., ON CERTAIN TERMS. 
 (a) Nothing contained in the Indenture, this Supplemental Indenture or in the Notes shall prevent any consolidation or merger of a Subsidiary Guarantor
with or into the Authority or any other Subsidiary Guarantor or shall prevent any transfer, sale or conveyance of the property of a Subsidiary Guarantor as an entirety or substantially as an entirety, to the Authority or any other Subsidiary
Guarantor. 
 (b) Except as set forth in Article 5 of the Indenture, upon the sale or disposition of all of the Capital Stock of a Subsidiary
Guarantor by the Authority or a Subsidiary of the Authority, or upon the consolidation or merger of a Subsidiary Guarantor with or into any Person, or if a Subsidiary Guarantor is designated as an Unrestricted Subsidiary, or the sale of all or
substantially all of the assets of a Subsidiary Guarantor (in each case, other than with or to an Affiliate of the Authority), or upon a legal defeasance or covenant defeasance of the Notes, such Subsidiary Guarantor shall be deemed automatically
and unconditionally released and discharged from all obligations under this Subsidiary Guarantee without any further action required on the part of the Trustee or any Holder if no Default shall have occurred and be continuing; provided that
in the event of an Asset Sale, the Net Cash Proceeds therefrom are treated in accordance with Section 4.10 of the Indenture and provided further that in the event of a redesignation of a Subsidiary, the transaction is in compliance
with Section 4.07 of the Indenture. Except with respect to transactions set forth in the preceding sentence, the Authority and the Subsidiary Guarantor covenant and agree that upon any such consolidation, merger or transfer of assets, the
performance of all covenants and conditions of this Supplemental Indenture to be performed by such Subsidiary Guarantor shall be expressly assumed by supplemental indenture satisfactory in form to the Trustee, by the corporation formed by such
consolidation, or into which such Subsidiary Guarantor shall have merged, or by the corporation which shall have acquired such property. Upon receipt of an Officers’ Certificate of the Authority or a Subsidiary Guarantor, as the case may be, to
the effect that the Authority or such Subsidiary Guarantor has complied with the first sentence of this Section 5(b), the Trustee shall execute any documents reasonably requested by the Authority or such Subsidiary Guarantor, at the cost of the
Authority or such Subsidiary Guarantor, as the case may be, in order to evidence the release of such Subsidiary Guarantor from its obligations under its Subsidiary Guarantee endorsed on the Notes and under the Indenture and this Supplemental
Indenture. 
 6. NEW YORK LAW TO GOVERN. The internal law of the State of New York shall govern and be used to construe this Supplemental
Indenture. 
 7. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. 
 8. EFFECT OF READINGS. The Section headings herein are for convenience
only and shall not effect the construction hereof. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and
attested, all as of the date first above written. 
 Dated: August 4, 2006. 
  

			
	MOHEGAN VENTURES-NORTHWEST, LLC
		
	By:	 	 /s/ Mitchell Grossinger Etess

	Name:	 	Mitchell Grossinger Etess
	Title:	 	President
	
	MOHEGAN COMMERCIAL VENTURES PA, LLC
		
	By:	 	 /s/ Leo M. Chupaska

	Name:	 	Leo M. Chupaska
	Title:	 	Chief Financial Officer
	
	DOWNS RACING, L.P.
By Mohegan Commercial Ventures
PA, LLC, its general partner
		
	By:	 	 /s/ Leo M. Chupaska

	Name:	 	Leo M. Chupaska
	Title:	 	Chief Financial Officer
	
	BACKSIDE, L.P.
By Mohegan Commercial Ventures
PA, LLC, its general partner
		
	By:	 	 /s/ Leo M. Chupaska

	Name:	 	Leo M. Chupaska
	Title:	 	Chief Financial Officer

  

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	MILL CREEK LAND, L.P.
By Mohegan Commercial Ventures
PA, LLC, its general partner
		
	By:	 	 /s/ Leo M. Chupaska

	Name:	 	Leo M. Chupaska
	Title:	 	Chief Financial Officer
	
	NORTHEAST CONCESSIONS, L.P.
By Mohegan Commercial Ventures
PA, LLC, its general partner
		
	By:	 	 /s/ Leo M. Chupaska

	Name:	 	Leo M. Chupaska
	Title:	 	Chief Financial Officer
	
	MOHEGAN TRIBAL GAMING AUTHORITY
		
	By:	 	 /s/ Mitchell Grossinger Etess

	Name:	 	Mitchell Grossinger Etess
	Title:	 	President
	
	MOHEGAN BASKETBALL CLUB LLC
		
	By:	 	 /s/ Mitchell Grossinger Etess

	Name:	 	Mitchell Grossinger Etess
	Title:	 	President
	
	U.S. BANK NATIONAL ASSOCIATION,
as Trustee
		
	By:	 	 /s/ Cauna M. Silva

		 	Authorized Signatory

  

 6EXHIBIT 10.4

 Exhibit 10.4 
 SECOND AMENDMENT TO PURCHASE AGREEMENT AND 
 RELEASE OF CLAIMS 
 THIS SECOND AMENDMENT TO PURCHASE AGREEMENT AND RELEASE OF CLAIMS (the “Amendment”) dated as of August 7, 2006 is made and entered
into by and among PNGI Pocono, Inc., a Delaware corporation (“PNGI Pocono”), successor to PNGI Pocono, Corp. and PNGI, LLC (together, the “Sellers”), and the Mohegan Tribal Gaming Authority, an instrumentality of The Mohegan
Tribe of Indians of Connecticut (the “Buyer”), and is joined in by Penn National Gaming, Inc., a Pennsylvania corporation (the “Parent”) for the limited purposes described below. 
 WHEREAS, Sellers and Buyer entered into that certain Purchase Agreement dated as of October 14, 2004 (as amended through the date hereof, the
“Purchase Agreement”) with respect to the purchase and sale of certain entities owning, among other assets, the assets comprising the harness racing track formerly known as Pocono Downs Race Track and now known as Mohegan Sun at Pocono
Downs; 
 WHEREAS, on January 25, 2005, pursuant to the Purchase Agreement, Buyer and its subsidiary, Mohegan Commercial Ventures PA
LLC, acquired all of the LP Interests and GP Interests in the Partnership Subsidiaries and Pocono Downs (as each such term is defined in the Purchase Agreement); 
 WHEREAS, subsequent to the Closing, Buyer has raised potential claims against Sellers relating to real estate taxes and environmental matters; 
 WHEREAS, subsequent to the Closing, Sellers were each liquidated and dissolved and their assets, subject to all unpaid liabilities (including, without
limitation, all liabilities and obligations arising under the Purchase Agreement), were transferred to PNGI Pocono; and 
 WHEREAS, PNGI
Pocono and Buyer now desire to amend certain provisions of the Purchase Agreement as described herein. 
 NOW, THEREFORE, for and in
consideration of good and valuable consideration, the receipt and sufficiency of which are acknowledged hereby, and intending to be legally bound hereby, PNGI Pocono and Buyer agree as follows: 
 1. Definitions. All capitalized terms used herein and not otherwise defined herein shall have the meanings given to them in the Purchase Agreement.

 2. Environmental Matters. 
 (a) Section 10.1.1(iv) of the Purchase Agreement hereby is deleted in its entirety. 

 (b) Section 10.9.2 of the Purchase Agreement hereby is deleted in its entirety and the following is
substituted in its place: 
 10.9.2 Environmental Costs Cap. The aggregate amount of costs to be borne by Sellers as a
result of corrective actions undertaken pursuant to Section 7.5.1, Remediation required in accordance with Section 7.5 hereof, claims for indemnification by Buyer for breach of Sellers’ representations under Section 5.24 hereof,
or Environmental Claims shall not exceed One Million Dollars ($1,000,000), all of which previously has been paid. 
 (c) It is acknowledged
and agreed that Buyer is now managing, and shall hereafter continue to manage, all Remediation and corrective actions which are ongoing pursuant to Section 7.5 of the Purchase Agreement and any remaining Remediation or corrective actions
pursued by Buyer shall be at Buyer’s sole cost and expense. From and after the date hereof, neither PNGI Pocono nor Buyer shall have any further obligations to the other of any kind with respect to such corrective actions or Remediation
(whether currently ongoing or undertaken in the future) pursuant to Section 7.5 of the Purchase Agreement or otherwise, and if any governmental agency or instrumentality requires completion of such Remediation or other corrective action, Buyer
agrees that it shall have no claim against PNGI Pocono under the Purchase Agreement with respect thereto. 
 (d) Section 10.2.1(iv) of
the Purchase Agreement hereby is deleted in its entirety and the following is substituted in its place: 
 (iv) Hazardous Materials arising
from or relating to any activity occurring, omission to act or other matter initiated after the Closing. 
 3. Put Option. 

 (a) Buyer acknowledges that Buyer never exercised any rights provided by Section 11.5 of the Purchase Agreement. 
 (b) Section 11.5 of the Purchase Agreement hereby is deleted in its entirety. 
 4. Release of Claims. 
 (a) Except as
described in Section 4(b) hereof, claims relating to the indemnification obligations of Sellers described in Section 10.1.1(iii) of the Purchase Agreement and the representations and warranties relating to Taxes and Tax Returns (as defined
in Section 5.15 of the Purchase Agreement) shall continue to survive the Closing for the periods described in Sections 10.1.1(iii) and 10.4(a) of the Purchase Agreement, respectively (collectively, the “Reserved Claims”). Except for
the Reserved Claims, Buyer hereby releases any and all other claims against Parent and all of its direct and indirect subsidiaries and affiliates, including without limitation PNGI Pocono, for Losses arising out of or relating to the Purchase
Agreement. As of the date hereof, Buyer has no actual current knowledge of any facts which may give rise to a Reserved Claim. 
 (b)
Notwithstanding the reservation by Buyer of the right to pursue Reserved Claims as described in Section 4(a), Buyer hereby withdraws its claim for indemnification described in 

  

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Buyer’s letter to Sellers dated February 6, 2006 pursuant to Section 10.7 of the Purchase Agreement in connection with the litigation styled
as Wilkes-Barre Area School District v. Luzerne County Board of Assessments Appeals and Pocono Downs, Inc. No. 7793-C of 2001 (the “Tax Appeal Litigation”). Buyer hereby releases Parent and all of its direct and indirect
subsidiaries and affiliates, including without limitation PNGI Pocono, from any and all claims under the Purchase Agreement which it may have previously asserted or may now or hereafter have arising out of or in any way related to the Tax Appeal
Litigation. 
 5. Claims Payment. In consideration of the release of claims pursuant to Sections 2 and 4 of this Amendment and the
termination of Buyer’s rights under Section 11.5 of the Purchase Agreement pursuant to Section 3 of this Amendment, PNGI Pocono shall refund to Buyer an aggregate of Thirty Million Dollars ($30,000,000) (the “Claims
Payment”) of the Purchase Price in installments on the following payment dates: Seven Million Dollars ($7,000,000) on the first (1st) anniversary of the date upon which slot machine operations are opened to the public at Mohegan Sun at Pocono Downs (the “Initial Payment Date”); Seven Million Dollars ($7,000,000) on the first (1st) anniversary of the Initial Payment Date; Six Million Five Hundred Thousand Dollars ($6,500,000) on the second
(2nd) anniversary of the Initial Payment Date; Six Million Dollars ($6,000,000) on the third (3rd) anniversary of the Initial Payment Date; and Three Million Five Hundred Thousand Dollars ($3,500,000) on the fourth
(4th) anniversary of the Initial Payment Date. Buyer or Pocono Downs shall notify PNGI Pocono and Parent (in
accordance with the notice provisions of the Purchase Agreement) of the date upon which slot machine operations are opened to the public at Mohegan Sun at Pocono Downs and thereafter each installment of the Claims Payment shall be made on the dates
set forth above without the necessity of any further notice of any kind. 
 6. Confirmation of Termination of Transition Services.
Buyer hereby acknowledges that the transition services (“Transition Services”) contemplated by Section 7.7 of the Purchase Agreement and that separate Transition Services Agreement by and between the Parent and Downs Racing, L.P.
dated January 25, 2005 have been completed and there exists no further obligation on the part of the Parent or any of its subsidiaries to perform Transition Services. 
 7. Governing Law. This Amendment shall be governed by and interpreted and enforced in accordance with the internal laws of the Commonwealth of
Pennsylvania. 
 8. Counterparts. This Amendment may be executed in any number of counterparts and any Party hereto may execute any
such counterpart, each of which when executed and delivered shall be deemed to be an original and all of which counterparts taken together shall constitute but one and the same instrument. This Amendment shall become binding when one or more
counterparts taken together shall have been executed and delivered by the Parties. It shall not be necessary in making proof of this Amendment or any counterpart hereof to produce or account for any of the other counterparts. Any facsimile signature
shall be deemed to be an original signature. 
 [SIGNATURE PAGE TO FOLLOW] 
  

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 IN WITNESS WHEREOF, the Parties hereto have duly executed this Amendment on the date first written.

  

			
	 PNGI POCONO, INC., as successor to PNGI Pocono,
 Corp. and PNGI, LLC

		
	By:	 	 /s/ Robert S. Ippolito

	Name:	 	Robert S. Ippolito
	Title:	 	V.P. / SEC / Treasurer
	
	MOHEGAN TRIBAL GAMING AUTHORITY
		
	By:	 	 /s/ Mitchell Grossinger Etess

	Name:	 	Mitchell Grossinger Etess
	Title:	 	CEO

 CONFIRMATION OF 
 GUARANTY AND JOINDER 
 For value received and to induce Buyer to enter into the Amendment set forth
above, Parent hereby confirms the continuing validity of its guarantee to and for the benefit of Buyer of the prompt payment and performance of each of the Sellers’ financial obligations under the Purchase Agreement, as amended (including,
without limitation, any obligations arising pursuant to Section 11.4 thereof) (as such financial obligations were transferred to PNGI Pocono), in accordance with the terms and conditions thereof and hereof. To such end, Parent agrees it will
either (a) cause PNGI Pocono to make all such payments to Buyer as and when the PNGI Pocono is required to do so under the Purchase Agreement, as amended, or (b) make or cause to be made directly to Buyer all such payments as and when
required under the Purchase Agreement, as amended. 
  

			
	PENN NATIONAL GAMING, INC.
		
	By:	 	 /s/ Robert S. Ippolito

	Name:	 	Robert S. Ippolito
	Title:	 	V.P. / SEC / Treasurer

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