Document:

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                                                                    EXHIBIT 10.1

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                       AMENDED AND RESTATED LOAN AGREEMENT

                          Dated as of December 14, 2001

                                      among

                          WHEELING ISLAND GAMING, INC.

                                  as Borrower,

              The Lenders and Syndication Agent referred to herein

                                       and

                             BANK OF AMERICA, N.A.,

                             as Administrative Agent

                        for itself and the other Lenders.

                         BANC OF AMERICA SECURITIES LLC

                      Lead Arranger and Sole Book Manager.

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                                TABLE OF CONTENTS

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<Caption>

                                                                                                           PAGE
<S>                                                                                                          <C>
Article 1
         DEFINITIONS AND ACCOUNTING TERMS.....................................................................2
         1.1      Defined Terms...............................................................................2
         1.2      Use of Defined Terms.......................................................................26
         1.3      Accounting Terms...........................................................................26
         1.4      Rounding...................................................................................26
         1.5      Exhibits and Schedules.....................................................................27
         1.6      References to "and its Subsidiaries".......................................................27
         1.7      References to Times........................................................................27
         1.8      Miscellaneous Terms........................................................................27

Article 2
         LOANS AND LETTERS OF CREDIT.........................................................................28
         2.1      Loans-General..............................................................................28
         2.2      Base Rate Loans............................................................................29
         2.3      LIBOR Loans................................................................................29
         2.4      Letters of Credit..........................................................................30
         2.5      Voluntary Reduction of Commitment..........................................................33
         2.6      Scheduled Reductions of Commitment.........................................................33
         2.7      Mandatory Reductions of Commitment.........................................................33
         2.8      Optional Increases to the Commitment.......................................................34
         2.9      Administrative Agent's Right to Assume Funds Available for Advances........................35

Article 3
         PAYMENTS AND FEES...................................................................................37
         3.1      Principal and Interest.....................................................................37
         3.2      Upfront Fee................................................................................38
         3.3      Administrative Agency Fees.................................................................38
         3.4      Commitment Fees............................................................................38
         3.5      Letter of Credit Fees......................................................................38
         3.6      Increased Commitment Costs.................................................................39
         3.7      LIBOR Costs and Related Matters............................................................39
         3.8      Late Payments..............................................................................43
         3.9      Computation of Interest and Fees...........................................................43
         3.10     Non-Business Days..........................................................................43
         3.11     Manner and Treatment of Payments...........................................................43
         3.12     Funding Sources............................................................................44
         3.13     Failure to Charge Not Subsequent Waiver....................................................44
         3.14     Administrative Agent's Right to Assume Payments Will be Made by
                  Borrower...................................................................................45
</Table>

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<S>                                                                                                          <C>
         3.15     Fee Determination Detail...................................................................45
         3.16     Survival...................................................................................45

Article 4
         REPRESENTATIONS AND WARRANTIES......................................................................46
         4.1      Existence and Qualification; Power; Compliance With Laws...................................46
         4.2      Authority; Compliance With Other Agreements and Instruments and
                  Government Regulations.....................................................................46
         4.3      No Governmental Approvals Required.........................................................47
         4.4      Subsidiaries...............................................................................47
         4.5      Financial Statements.......................................................................47
         4.6      No Material Adverse Effects................................................................48
         4.7      Title to Property..........................................................................48
         4.8      Intangible Assets..........................................................................48
         4.9      Public Utility Holding Company Act.........................................................48
         4.10     Litigation.................................................................................48
         4.11     Binding Obligations........................................................................48
         4.12     No Default.................................................................................48
         4.13     ERISA......................................................................................49
         4.14     Regulations T, U and X; Investment Company Act.............................................49
         4.15     Disclosure.................................................................................49
         4.16     Tax Liability..............................................................................49
         4.17     Projections................................................................................50
         4.18     Hazardous Materials........................................................................50
         4.19     Applicable Regulations.....................................................................50
         4.20     Security Interests.........................................................................50
         4.21     Solvency...................................................................................50
         4.22     Collateral and Guarantees..................................................................50
         4.23     Senior Indebtedness........................................................................50

Article 5
         AFFIRMATIVE COVENANTS
         (OTHER THAN INFORMATION AND
         REPORTING REQUIREMENTS).............................................................................52
         5.1      Payment of Taxes and Other Potential Liens.................................................52
         5.2      Preservation of Existence..................................................................52
         5.3      Maintenance of Properties..................................................................52
         5.4      Maintenance of Insurance...................................................................52
         5.5      Compliance With Laws.......................................................................53
         5.6      Inspection Rights..........................................................................53
         5.7      Keeping of Records and Books of Account....................................................53
         5.8      Compliance With Agreements.................................................................53
         5.9      Use of Proceeds............................................................................53
         5.10     Hazardous Materials Laws...................................................................54
</Table>

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<S>                                                                                                          <C>
         5.11     Completion of Expansion Project............................................................54
         5.12     Construction Matters.......................................................................54
         5.13     Delivery of Plans, Budget and Timetable....................................................55

Article 6
         NEGATIVE COVENANTS..................................................................................56
         6.1      Prepayment of Indebtedness.................................................................56
         6.2      Prepayment of Certain Obligations..........................................................56
         6.3      Hostile Tender Offers......................................................................57
         6.4      Mergers, Acquisitions, Sales of Assets, Etc................................................57
         6.5      Distributions and Management Fees..........................................................57
         6.6      ERISA......................................................................................58
         6.7      Change in Nature of Business...............................................................58
         6.8      Liens and Negative Pledges.................................................................58
         6.9      Indebtedness...............................................................................58
         6.10     Contingent Obligations.....................................................................59
         6.11     New Subsidiaries...........................................................................59
         6.12     Transactions with Affiliates...............................................................59
         6.13     Leverage Ratio.............................................................................59
         6.14     Fixed Charge Coverage Ratio................................................................60
         6.15     Capital Expenditures.......................................................................60
         6.16     Acquisitions and Investments...............................................................61
         6.17     New Subsidiaries...........................................................................61
         6.18     Senior Unsecured Notes.....................................................................61
         6.19     Construction Covenants.....................................................................61

Article 7
         INFORMATION AND REPORTING REQUIREMENTS..............................................................63
         7.1      Financial and Business Information.........................................................63
         7.2      Compliance Certificates....................................................................66

Article 8
         CONDITIONS..........................................................................................67
         8.1      The Effective Date.........................................................................67
         8.2      Any Advance................................................................................69

Article 9
         EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT................................................70
         9.1      Events of Default..........................................................................70
         9.2      Remedies Upon Event of Default.............................................................72

Article 10
         THE ADMINISTRATIVE AGENT............................................................................75
         10.1     Appointment and Authorization..............................................................75
</Table>

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<S>                                                                                                          <C>
         10.2     Administrative Agent and Affiliates........................................................75
         10.3     Proportionate Interest in any Collateral...................................................75
         10.4     Lenders' Credit Decisions..................................................................75
         10.5     Action by Administrative Agent.............................................................76
         10.6     Liability of Administrative Agent..........................................................77
         10.7     Indemnification............................................................................78
         10.8     Successor Administrative Agent.............................................................78
         10.9     Foreclosure on Collateral..................................................................78
         10.10    No Obligations of Borrower.................................................................79
         10.11    Permitted Release of Collateral............................................................79

Article 11
         MISCELLANEOUS.......................................................................................80
         11.1     Cumulative Remedies; No Waiver.............................................................80
         11.2     Amendments; Consents.......................................................................80
         11.3     Costs, Expenses and Taxes..................................................................81
         11.4     Nature of Lenders' Obligations.............................................................81
         11.5     Survival of Representations and Warranties.................................................82
         11.6     Notices....................................................................................82
         11.7     Execution of Loan Documents................................................................82
         11.8     Binding Effect; Assignment.................................................................82
         11.9     Right of Setoff............................................................................85
         11.10    Sharing of Setoffs.........................................................................85
         11.11    Indemnity by Borrower......................................................................86
         11.12    Nonliability of the Lenders................................................................87
         11.13    No Third Parties Benefitted................................................................87
         11.14    Confidentiality............................................................................87
         11.15    Further Assurances.........................................................................88
         11.16    Principles of Restatement..................................................................88
         11.17    Governing Law..............................................................................88
         11.18    Severability of Provisions.................................................................89
         11.19    Headings...................................................................................89
         11.20    Time of the Essence........................................................................89
         11.21    Foreign Lenders and Participants...........................................................89
         11.22    Waiver of Right to Trial by Jury...........................................................89
         11.23    Purported Oral Amendments..................................................................90
</Table>

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SCHEDULES AND EXHIBITS

Schedule 4.1               Ownership of Borrower
Schedule 4.3               Governmental Approvals
Schedule 4.4               Subsidiaries
Schedule 4.8               Intangible Assets
Schedule 4.17              Projections
Schedule 4.18              Hazardous Materials
Schedule 6.8               Existing Liens
Schedule 6.9               Existing Indebtedness
Schedule 6.19              Material Amenities of the Proposed Expansion

Exhibit A         -        Assignment Agreement
Exhibit B         -        Compliance Certificate
Exhibit C         -        Note
Exhibit D         -        Request for Letter of Credit
Exhibit E         -        Request for Loan

                                       -v-
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                       AMENDED AND RESTATED LOAN AGREEMENT

                          Dated as of December 14, 2001

            This Amended and Restated Loan Agreement is entered into by and
among Wheeling Island Gaming, Inc., a Delaware corporation, each lender whose
name is set forth on the signature pages of this Agreement and each lender which
may hereafter become a party to this Agreement pursuant to Section 11.8
(collectively, the "Lenders" and individually, a "Lender") and Bank of America,
N.A., as Administrative Agent for itself and for the other Lenders, with
reference to the following facts:

            A. Wheeling Downs Racing Association, Inc., a West Virginia
corporation (the "Prior Borrower") heretofore entered into a Loan Agreement
dated as of June 30, 2000 among the Prior Borrower, the lenders described
therein, and Bank of America, N.A., as Administrative Agent, pursuant to which a
$20,000,000 revolving credit facility was made available to the Prior Borrower
(as amended, the "Existing Loan Agreement"). Pursuant to an Assignment Agreement
dated as of September 7, 2000, WesBanco Bank, Inc. became a lender under the
Existing Loan Agreement (Bank of America, N.A. and WesBanco Bank, Inc. in their
capacity as Lenders under the Existing Loan Agreement, collectively, the
"Existing Lenders").

            B. As of November 27, 2001, the Prior Borrower merged with and into
the Borrower, with the Borrower as the survivor of such merger.

            C. Substantially concurrently herewith, Borrower has issued not less
than $125,000,000 in senior unsecured notes (the "Senior Unsecured Notes", and
such issuance, the "Senior Unsecured Note Issuance") and concurrently with the
effectiveness hereof Borrower shall use the proceeds thereof (i) to redeem all
of the Borrower's capital stock now owned by WHX Entertainment (the "WHX
Entertainment Redemption") pursuant to the Stock Redemption Agreement, (ii) to
repay the outstanding Indebtedness under the Existing Loan Agreement, (iii) to
pay related transactional expenses, and (iv) thereafter for general corporate
purposes.

            D. Borrower has indicated its intention to expand its existing
facilities at its Wheeling Downs facility located at Wheeling, West Virginia, to
include (i) additional gaming space sufficient to accommodate 550 additional
slot machines (ii) the installation of approximately 550 additional slot
machines, (iii) additional restaurant and bar facilities; (iv) an approximately
150 room hotel with related conference facilities and (v) a covered parking
facility all in accordance with the Plans, Budget and Timetable to be submitted
to the Administrative Agent (the "Expansion Project").

            E. By this Agreement, Borrower and the Lenders party to the Existing
Loan Agreement desire to admit Wells Fargo Bank, N.A., as an additional Lender,
to increase

                                      -1-
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the Commitment from $20,000,000 to $40,000,000 and to amend and restate the
Existing Loan Agreement in its entirety as set forth herein.

            NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the parties hereto covenant and agree as follows:

                                    Article 1
                        DEFINITIONS AND ACCOUNTING TERMS

      1.1   DEFINED TERMS. As used in this Agreement, the following terms shall
have the meanings set forth below:

            "ACQUISITION" means any transaction, or any series of related
      transactions, by which Borrower directly or indirectly (i) acquires any
      going business or all or substantially all of the assets of any firm,
      partnership, joint venture, limited liability company, corporation or
      division thereof, whether through purchase of assets, merger or otherwise,
      or (ii) acquires (in one transaction or as the most recent transaction in
      a series of transactions) control of at least a majority in ordinary
      voting power of the securities of a corporation which have ordinary voting
      power for the election of directors, or (iii) acquires control of a 50% or
      more ownership interest in any partnership, limited liability company or
      joint venture.

            "ADJUSTED INTEREST EXPENSE" means, (a) as of the last day of each of
      the first four Fiscal Quarters ending after the Effective Date, (i)
      Average Total Debt determined as of that date TIMES (ii) the combined
      weighted average interest rate per annum for such Total Debt as of the
      last day of such Fiscal Quarter, and (b) as of the last day of each
      subsequent Fiscal Quarter, Interest Expense for the four Fiscal Quarter
      period ending on that date.

            "ADMINISTRATIVE AGENT" means Bank of America, when acting in its
      capacity as the Administrative Agent under any of the Loan Documents, or
      any successor Administrative Agent.

            "ADMINISTRATIVE AGENT'S OFFICE" means the Administrative Agent's
      address as set forth on the signature pages of this Agreement, or such
      other address as the Administrative Agent hereafter may designate by
      written notice to Borrower and the Lenders.

            "ADMINISTRATIVE SERVICES AGREEMENT" means the Administrative
      Services Agreement dated as of December 14, 2001 by and between Borrower,
      Sportsystems and Delaware North, as amended from time to time.

                                      -2-
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            "ADVANCE" means any advance made or to be made by any Lender to
      Borrower as provided in Article 2, and includes each Base Rate Advance,
      each LIBOR Advance and any Advances under the Existing Loan Agreement
      outstanding on the Effective Date.

            "AFFILIATE" means, as to any Person, any other Person which directly
      or indirectly controls, or is under common control with, or is controlled
      by, such Person. As used in this definition, "control" (and the
      correlative terms, "controlled by" and "under common control with") shall
      mean possession, directly or indirectly, of power to direct or cause the
      direction of management or policies (whether through ownership of
      securities or partnership or other ownership interests, by contract or
      otherwise); PROVIDED that, in any event, any Person that owns, directly or
      indirectly, 20% or more of the securities having ordinary voting power for
      the election of directors or other governing body of a corporation that
      has more than 100 record holders of such securities, or 20% or more of the
      partnership or other ownership interests of any other Person that has more
      than 100 record holders of such interests, will be deemed to control such
      corporation, partnership or other Person.

            "AGGREGATE EFFECTIVE AMOUNT" means, as of any date of determination
      and with respect to all Letters of Credit then outstanding, the SUM of (a)
      the aggregate effective face amounts of all such Letters of Credit not
      then paid by the Issuing Lender PLUS (b) the aggregate amounts paid by the
      Issuing Lender under such Letters of Credit not then reimbursed to the
      Issuing Lender by Borrower pursuant to Section 2.4(d) and not the subject
      of Advances made pursuant to Section 2.4(e).

            "AGREEMENT" means this Loan Agreement, either as originally executed
      or as it may from time to time be supplemented, modified, amended,
      restated or extended.

            "APPLICABLE REGULATIONS" means all Laws pursuant to which any
      Regulatory Board possesses regulatory, licensing or permit authority over
      gambling, gaming, casino, wagering, parimutuel and other similar
      activities conducted by Borrower or any of its Subsidiaries within its
      jurisdiction.

            "ASSIGNMENT AGREEMENT" means an Assignment Agreement substantially
      in the form of Exhibit A.

            "AVERAGE TOTAL DEBT" means, as of the last day of any Fiscal
      Quarter, the arithmetic average of the Total Debt as of that date and as
      of the last day of each of the two previous constituent fiscal months in
      that Fiscal Quarter, PROVIDED that for the first Fiscal Quarter ending
      following the Effective Date, the principal amount of the Unsecured Senior
      Notes and the Obligations incurred on the Effective Date shall be included
      in the Total Debt as of each such date on a pro forma basis (but without
      duplication).

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            "BANK OF AMERICA" means Bank of America, N.A., its successors and
      assigns.

            "BASE RATE" means, as of any date of determination, the rate per
      annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to
      the HIGHER OF (a) the Prime Rate in effect on such date and (b) the
      Federal Funds Rate in effect on such date plus 1/2 of 1%. Interest shall
      accrue on an actual/365-366-day basis and shall be payable quarterly in
      arrears.

            "BASE RATE ADVANCE" means an Advance made hereunder and specified to
      be a Base Rate Advance in accordance with Article 2 and includes all
      Advances outstanding on the Effective Date.

            "BASE RATE LOAN" means a Loan made hereunder and specified to be a
      Base Rate Loan in accordance with Article 2.

            "BASE RATE MARGIN" means, for the initial Pricing Period 1.75% per
      annum and, for each subsequent Pricing Period, the percentage per annum
      set forth opposite the Leverage Ratio as of the last day of the Fiscal
      Quarter ending two months prior to the first day of that Pricing Period:

<Table>
<Caption>

                  Leverage Ratio                      Base Rate Margin
                  --------------                      ----------------

<S>                                                         <C>
                  Greater than or equal to 3.50:1.00        2.00%

                  Less than 3.50:1.00 but greater           1.75%
                  than or equal to 3.00:1.00

                  Less than 3.00:1.00 but greater           1.25%
                  than or equal to 2.50:1.00

                  Less than 2.50:1.00 but greater           1.00%
                  than or equal to 2.00:1.00

                  Less than 2.00:1.00                       0.75%
</Table>

            "BORROWER" means Wheeling Island Gaming, Inc., a Delaware
      corporation which is the successor to the Prior Borrower, its successors
      and permitted assigns. It is acknowledged that, pursuant to Section
      11.8(a), Borrower may assign the Commitment to a limited liability company
      to be formed.

            "BORROWER SECURITY AGREEMENT" means the Amended and Restated
      Borrower Security Agreement executed and delivered by Borrower on the
      Effective Date in favor of the Administrative Agent for the benefit of the
      Creditors, either as originally executed or as it may from time to time be
      supplemented, modified, amended, extended or supplanted.

                                       -4-
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            "BUDGET" means the budget for the design, development and
      construction of the Expansion Project submitted to and approved by the
      Administrative Agent pursuant to Section 5.13.

            "BUSINESS DAY" means any Monday, Tuesday, Wednesday, Thursday or
      Friday, OTHER THAN a day on which banks are authorized or required to be
      closed in California and West Virginia.

            "CAPITAL EXPENDITURE" means any expenditure that is considered a
      capital expenditure under Generally Accepted Accounting Principles,
      INCLUDING any amount which is required to be treated as an asset subject
      to a Capital Lease Obligation.

            "CAPITAL LEASE OBLIGATIONS" means all monetary obligations of a
      Person under any leasing or similar arrangement which, in accordance with
      Generally Accepted Accounting Principles, is classified as a capital
      lease.

            "CASH" means, when used in connection with any Person, all monetary
      and non-monetary items owned by that Person that are treated as cash in
      accordance with Generally Accepted Accounting Principles, consistently
      applied.

            "CASH EQUIVALENTS" means, when used in connection with any Person,
      that Person's Investments in:

            (a) Government Securities due within one year after the date of the
making of the Investment;

            (b) readily marketable direct obligations of any State of the United
States of America or any political subdivision of any such State or any public
agency or instrumentality thereof given on the date of such Investment a credit
rating of at least Aa by Moody's Investors Service, Inc. or AA by Standard &
Poor's Ratings Group, in each case due within one year from the making of the
Investment;

            (c) certificates of deposit issued by, bank deposits in, eurodollar
deposits through, bankers' acceptances of, and repurchase agreements covering
Government Securities executed by, any Lender or any bank incorporated under the
Laws of the United States of America, any State thereof or the District of
Columbia and having on the date of such Investment combined capital, surplus and
undivided profits of at least $250,000,000, in each case due within one year
after the date of the making of the Investment;

            (d) certificates of deposit issued by, bank deposits in, eurodollar
deposits through, bankers' acceptances of, and repurchase agreements covering
Government Securities executed by, any branch or office located in the United
States of America of a bank incorporated under the Laws of any jurisdiction
outside the United States of America having on the date of such Investment
combined capital, surplus and undivided profits of at least

                                       -5-
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$500,000,000, in each case due within one year after the date of the making of
the Investment; and

            (e) readily marketable commercial paper or master notes of
corporations doing business in and incorporated under the Laws of the United
States of America or any State thereof or of any corporation that is the holding
company for a bank described in clause (C) or (D) above given on the date of
such Investment a credit rating of at least P-2 by Moody's Investors Service,
Inc. or A-2 by Standard & Poor's Ratings Group, in each case due within 90 days
after the date of the making of the Investment.

            "CERTIFICATE OF A RESPONSIBLE OFFICIAL" means a certificate signed
      by a Responsible Official of the Person providing the certificate.

            "CHANGE OF CONTROL" means the occurrence of any of the following:

            (a) Delaware North fails to own (directly or indirectly),
      beneficially and of record, and control the power to vote at least a
      majority of the issued and outstanding capital stock of Borrower; or

            (b) Delaware North fails to control (directly or indirectly) the
      management of the affairs of the Borrower (including without limitation,
      any failure of Delaware North or its wholly-owned Subsidiaries to be the
      managing member of any limited liability company which assumes the
      Obligations pursuant to Section 11.8(a); or

            (c) any event which constitutes a "Change of Control" or "Change in
      Control" or similar event with respect to Indebtedness of Borrower or any
      of its Subsidiaries in a principal amount which is in excess of
      $1,000,000, in the aggregate which permits the holders thereof to
      accelerate the maturity of such Indebtedness or require the prepayment
      thereof prior to the stated or final maturity thereof.

            "CLOSING DATE" means June 30, 2000.

            "CODE" means the Internal Revenue Code of 1986, as amended or
      replaced and as in effect from time to time.

            "COLLATERAL" means all of the collateral covered by the Collateral
      Documents, including without limitation the personal property,
      improvements, fixtures and real property constituting Wheeling Downs and
      the Expansion Project.

            "COLLATERAL DOCUMENTS" means, collectively, the Deeds of Trust, the
      Borrower Security Agreement, the Subsidiary Security Agreement, and each
      other security agreement, pledge agreement, deed of trust, mortgage or
      other collateral security agreement hereafter executed and delivered by
      Borrower or any other Obligor to secure the Obligations.

                                       -6-
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            "COMMITMENT" means, subject to any increase or decrease in the
      amount thereof pursuant to Sections 2.5, 2.6, 2.7 or 2.8, $40,000,000.

            "COMMITMENT FEE RATE" means, for the initial Pricing Period, 0.625%
      per annum and for each subsequent Pricing Period, the percentage per annum
      set forth opposite the Leverage Ratio as of the last day of the Fiscal
      Quarter ending two months prior to the first day of that Pricing Period:

<Table>
<Caption>

            Leverage Ratio                                Commitment Fee Rate
            --------------                                -------------------
<S>                                                              <C>
            Greater than or equal to 3.00:1.00                   0.625%

            Less than 3.00:1.00                                  0.50%
</Table>

            "COMPLETION DATE" means the date upon which (a) the Expansion
      Project has been completed in accordance with applicable laws, the Plans
      and the Budget, (b) Borrower has obtained all necessary material licenses,
      permits and approvals required in connection with the operation of the
      amenities described in the Plans, (c) the Expansion Project, including all
      material amenities described in the Plans, is open and ready to
      accommodate hotel guests and patrons and (d) Borrower has delivered a
      certificate executed by a Senior Officer, certifying each of the
      foregoing.

            "COMPLIANCE CERTIFICATE" means a certificate in the form of Exhibit
      B, properly completed and signed by a Senior Officer of Borrower.

            "CONSTRUCTION CONSULTANT" means, Professional Associates
      Construction Services, the construction consultant engaged by the
      Administrative Agent to review the progress of the Expansion Project on
      behalf of the Lenders.

            "CONSTRUCTION PROGRESS REPORT" means a report prepared by the
      Construction Consultant in a form which is reasonably acceptable to the
      Administrative Agent describing the progress of construction of the
      Expansion Project, which report shall include an analysis and comparison
      of the progress of construction to the Budget.

            "CONTINGENT OBLIGATION" means, as to any Person, any (a) guarantee
      by that Person of Indebtedness of, or other obligation performable by, any
      other Person or (b) assurance given by that Person to an obligee of any
      other Person with respect to the performance of an obligation by, or the
      condition or maintenance of the financial condition of, such other Person,
      whether direct, indirect or contingent, INCLUDING any purchase or
      repurchase agreement covering such obligation, any interest rate swap
      agreement, forward contract or other arrangement of such Person, or any
      collateral security therefor, any agreement to provide funds (by means of
      loans, capital contributions or otherwise) to such other Person, any
      agreement to support the solvency or level of any balance sheet item of
      such other Person or any "keep-well" or

                                       -7-
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      other arrangement of whatever nature given for the purpose of assuring or
      holding harmless such obligee against loss with respect to any obligation
      of such other Person; PROVIDED, HOWEVER, that the term Contingent
      Obligation shall not include endorsements of instruments for deposit or
      collection in the ordinary course of business. The amount of any
      Contingent Obligation shall be deemed to be an amount equal to the stated
      or determinable amount of the related primary obligation (unless the
      Contingent Obligation is limited by its terms to a lesser amount, in which
      case to the extent of such amount) or, if not stated or determinable, the
      maximum reasonably anticipated liability in respect thereof as determined
      by the Person in good faith.

            "CONTRACTUAL OBLIGATION" means, as to any Person, any provision of
      any outstanding security issued by that Person or of any material
      agreement, instrument or undertaking to which that Person is a party or by
      which it or any of its Property is bound.

            "CREDITORS" means, collectively, the Administrative Agent, the
      Syndication Agent, the Issuing Lender and the Lenders.

            "DEBTOR RELIEF LAWS" means the Bankruptcy Code of the United States
      of America, as amended from time to time, and all other applicable
      liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
      receivership, insolvency, reorganization, or similar debtor relief Laws
      from time to time in effect affecting the rights of creditors generally.

            "DEEDS OF TRUST" means (i) the Amended and Restated Deed of Trust,
      Assignment of Rents and Fixture Filing executed and delivered on the
      Effective Date by Borrower with respect to Wheeling Downs, (ii) the Deed
      of Trust, Assignment of Rents and Fixture Filing executed and delivered on
      the Effective Date by Wheeling Land Development Corporation with respect
      to the proposed location of Borrower's kennels for Wheeling Downs in
      Brooke County, West Virginia to secure its guaranty of the Obligations,
      (iii) the Deed of Trust, Assignment of Rents and Fixture Filing executed
      and delivered on the Effective Date by Wheeling Land Development
      Corporation with respect to certain other land in Ohio County, West
      Virginia to secure its guaranty of the Obligations, and (iv) each other
      mortgage or deed of trust hereafter delivered pursuant to this Agreement,
      in each case either as originally executed or as it may from time to time
      be supplemented, modified, amended, restated or extended.

            "DEFAULT" means any event that, with the giving of any applicable
      notice or passage of time specified in Section 9.1, or both, would be an
      Event of Default.

            "DEFAULT RATE" means the interest rate prescribed in Section 3.8.

            "DELAWARE NORTH" means Delaware North Companies, Incorporated, a
      Delaware corporation, and its successors.

                                       -8-
<Page>

            "DESIGNATED EURODOLLAR MARKET" means, with respect to any LIBOR
      Loan, (a) the London Eurodollar Market, (b) if prime banks in the London
      Eurodollar Market are at the relevant time not accepting deposits of
      Dollars or if the Administrative Agent determines in good faith that the
      London Eurodollar Market does not represent at the relevant time the
      effective pricing to the Lenders for deposits of Dollars in the London
      Eurodollar Market, the Cayman Islands Eurodollar Market or (c) if prime
      banks in the Cayman Islands Eurodollar Market are at the relevant time not
      accepting deposits of Dollars or if the Administrative Agent determines in
      good faith that the Cayman Islands Eurodollar Market does not represent at
      the relevant time the effective pricing to the Lenders for deposits of
      Dollars in the Cayman Islands Eurodollar Market, such other Eurodollar
      Market as may from time to time be selected by the Administrative Agent
      with the approval of Borrower and the Requisite Lenders.

            "DISBURSEMENT ACCOUNT" means a deposit account designated by
      Borrower by written notification to the Administrative Agent.

            "DISPOSITION" means the voluntary sale, transfer or other
      disposition of any asset of Borrower or any of its Subsidiaries OTHER THAN
      (a) Cash, Cash Equivalents, inventory or other assets sold, leased or
      otherwise disposed of in the ordinary course of business of Borrower or
      its Subsidiaries, (b) equipment (including any aircraft) sold or otherwise
      disposed of where substantially similar equipment in replacement thereof
      has theretofore been acquired, or thereafter within 90 days is acquired,
      by Borrower or its Subsidiaries, (c) leases of retail space by Borrower,
      as lessor, in the ordinary course of the business of Borrower and in a
      manner consistent with other similarly situated businesses, (d) a
      disposition to Borrower or any of its Subsidiaries, (e) Distributions
      permitted by Section 6.5, and (f) other transactions involving the sale,
      transfer or other disposition, in one transaction or a series of related
      transactions, of Property having a value of not more than $500,000 in any
      such transaction or series of related transactions (and in any event
      having a value of not more than $5,000,000 during the term of this
      Agreement).

            "DISTRIBUTION" means, with respect to shares of capital stock or any
      warrant or option to purchase an equity security or other equity security
      issued by a Person, (i) the retirement, redemption, purchase, or other
      acquisition for Cash or for Property by such Person of any such security,
      (ii) the declaration or (without duplication) payment by such Person of
      any dividend in Cash or in Property on or with respect to any such
      security, (iii) any Investment by such Person in the holder of 5% or more
      of any such security if a purpose of such Investment is to avoid
      characterization of the transaction as a Distribution, and (iv) any other
      payment in Cash or Property by such Person constituting a distribution
      under applicable Laws with respect to such security. It is understood that
      payments under the Administrative Services Agreement shall not be
      considered to be Distributions.

            "DOLLARS" or "$" means United States dollars.

                                       -9-
<Page>

            "EBITDA" for any period means Borrower's consolidated (a) net
      income, PLUS, to the extent deducted in arriving at net income, (b)
      Interest Expense, plus (c) the aggregate amount of federal, state and
      local taxes on or measured by income (whether or not payable during that
      period), PLUS (d) depreciation and amortization expenses, PLUS (e)
      non-cash non-recurring expenses, in each case as determined in accordance
      with Generally Accepted Accounting Principles.

            "EFFECTIVE DATE" means the date upon which each of the conditions
      precedent set forth in Section 8.1 to the effectiveness hereof are
      satisfied or waived. The Administrative Agent shall notify Borrower and
      the Lenders of the date that is the Effective Date.

            "ELIGIBLE ASSIGNEE" means, (a) another Lender, (b) with respect to
      any Lender, any Affiliate of that Lender, (c) any commercial bank having a
      combined capital and surplus of $100,000,000 or more, (d) any (i) savings
      bank, savings and loan association or similar financial institution or
      (ii) insurance company engaged in the business of writing insurance which,
      in either case (A) has a net worth of $200,000,000 or more, (B) is engaged
      in the business of lending money and extending credit under credit
      facilities similar to those extended under this Agreement and (C) is
      operationally and procedurally able to meet the obligations of a Lender
      hereunder to the same degree as a commercial bank and (e) any other
      financial institution (INCLUDING a mutual fund or other fund) having total
      assets of $250,000,000 or more which meets the requirements set forth in
      subclauses (B) and (C) of clause (d) above; PROVIDED that (I) each
      Eligible Assignee must either (a) be organized under the Laws of the
      United States of America, any State thereof or the District of Columbia or
      (b) be organized under the Laws of the Cayman Islands or any country which
      is a member of the Organization for Economic Cooperation and Development,
      or a political subdivision of such a country, and (i) act hereunder
      through a branch, agency or funding office located in the United States of
      America and (ii) be exempt from withholding of tax on interest and deliver
      the documents related thereto pursuant to Section 11.21.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      and any regulations issued pursuant thereto, as amended or replaced and as
      in effect from time to time.

            "EURODOLLAR BASE RATE" means, with respect to any LIBOR Loan, the
      average per annum interest rate at which deposits in Dollars would be
      offered for the applicable Interest Period by major banks in the
      Designated Eurodollar Market, as shown on the Telerate Page 3750 (or such
      other page as may replace it) at approximately 11:00 a.m. London time two
      Eurodollar Market Days before the commencement of the Interest Period. If
      such rate does not appear on the Telerate Page 3750 (or such other page
      that may replace it), the rate for that interest period will be determined
      by such alternate method as reasonably selected by the Administrative

                                      -10-
<Page>

      Agent. The Administrative Agent's determination of the Eurodollar Base
      Rate shall be conclusive in the absence of manifest error.

            "EURODOLLAR MARKET" means a regular established market located
      outside the United States of America by and among banks for the
      solicitation, offer and acceptance of Dollar deposits in such banks.

            "EURODOLLAR MARKET DAY" means any Business Day on which dealings in
      Dollar deposits are conducted by and among banks in the Designated
      Eurodollar Market.

            "EVENT OF DEFAULT" shall have the meaning provided in Section 9.1.

            "EXCESS CASH" means, as of the last day of each Fiscal Quarter
      ending following the Completion Date, EBITDA for the period beginning on
      January 1, 2002 and ending on that date MINUS, (a) Interest Expense for
      the same period, (b) the aggregate amount of federal, state and local
      taxes on or measured by income of Borrower and its Subsidiaries during
      that period (whether or not payable during that period), (c) Maintenance
      Capital Expenditures made during that period, (d) Distributions made
      during that period, in each case without duplication and as determined in
      accordance with Generally Accepted Accounting Principles, and MINUS (e)
      the aggregate amount expended in connection with the repurchase of Senior
      Unsecured Notes pursuant to Section 6.1(a), PLUS (f) the net amount (after
      deduction of transactional expenses) of all equity securities issued by
      Borrower following the Effective Date.

            "EXISTING LENDERS" shall have the meaning provided in the recitals
      hereto.

            "EXISTING LOAN AGREEMENT" shall have the meaning provided in the
      recitals hereto.

            "EXPANSION PROJECT" shall have the meaning provided in the recitals
      hereto.

            "FEDERAL FUNDS RATE" means, as of any date of determination, the
      rate set forth in the weekly statistical release designated as H.15(519),
      or any successor publication, published by the Federal Reserve Board
      (including any such successor, "H.15(519)") for such date opposite the
      caption "Federal Funds (Effective)". If for any relevant date such rate is
      not yet published in H.15(519), the rate for such date will be the rate
      set forth in the daily statistical release designated as the Composite
      3:30 p.m. Quotations for U.S. Government Securities, or any successor
      publication, published by the Federal Reserve Bank of New York (including
      any such successor, the "Composite 3:30 p.m. Quotations") for such date
      under the caption "Federal Funds Effective Rate". If on any relevant date
      the appropriate rate for such date is not yet published in either
      H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such date
      will be the arithmetic mean of the rates for the last transaction in
      overnight Federal funds arranged prior to

                                      -11-
<Page>

      9:00 a.m. (New York City time) on that date by each of three leading
      brokers of Federal funds transactions in New York City selected by the
      Administrative Agent. For purposes of this Agreement, any change in the
      Base Rate due to a change in the Federal Funds Rate shall be effective as
      of the opening of business on the effective date of such change.

            "FISCAL QUARTER" means the fiscal quarter of Borrower consisting
      approximately of a three-month fiscal period ending on or about each March
      31, June 30, September 30 and December 31.

            "FISCAL YEAR" means the fiscal year of Borrower consisting of a
      twelve-month period ending on or about each December 31.

            "FIXED CHARGE COVERAGE RATIO" means, as of each date of
      determination, the ratio of (a) EBITDA for the four Fiscal Quarter period
      ending on that date PLUS the amount of any Management Fees which were paid
      both prior to the Effective Date and during that four Fiscal Quarter
      period, to (b) the SUM OF (i) Adjusted Interest Expense, (ii) Required
      Debt Reductions for the four Fiscal Quarter period beginning on that date,
      (iii) Maintenance Capital Expenditures, and (iv) Distributions (other than
      Permitted Tax Distributions) in each case for the four Fiscal Quarter
      period ending on that date.

            "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" means accounting
      principles, as in effect on and after the Effective Date, as (a) set forth
      as generally accepted in the currently effective Opinions of the
      Accounting Principles Board of the American Institute of Certified Public
      Accountants, (b) set forth as generally accepted in the currently
      effective Statements of the Financial Accounting Standards Board or (c)
      that are approved by such other entity as may be approved by a significant
      segment of the accounting profession in the United States of America. The
      term "CONSISTENTLY APPLIED," as used in connection therewith, means that
      the accounting principles applied are consistent in all material respects
      with those applied at prior dates or for prior periods.

            "GOVERNMENT SECURITIES" means readily marketable (a) direct full
      faith and credit obligations of the United States of America or
      obligations guaranteed by the full faith and credit of the United States
      of America, or (b) obligations of an agency or instrumentality of, or
      corporation owned, controlled or sponsored by, the United States of
      America that are generally considered in the securities industry to be
      implicit obligations of the United States of America.

            "GOVERNMENTAL AGENCY" means (a) any international, foreign, federal,
      state, county or municipal government, or political subdivision thereof,
      (b) any governmental or quasi-governmental agency, authority, board,
      bureau, commission,

                                      -12-
<Page>

      department, instrumentality or public body, or (c) any court or
      administrative tribunal of competent jurisdiction.

            "HAZARDOUS MATERIALS" means substances regulated as hazardous
      substances pursuant to (a) the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, 42 U.S.C.ss. 9601 et seq., or as
      hazardous or toxic wastes or pollutants pursuant to the Hazardous
      Materials Transportation Act, 49 U.S.C.ss. 1801, et seq., the Resource
      Conservation and Recovery Act, 42 U.S.C.ss. 6901, et seq., or (b) any
      other Law regulating hazardous substances or hazardous or toxic wastes or
      pollutants or regulating the generation, use, storage, treatment, handling
      or transportation of any such substances, in each case as such Laws are
      amended from time to time.

            "HAZARDOUS MATERIALS LAWS" means all federal, state or local laws,
      ordinances, rules or regulations governing the disposal, transfer,
      generation, storage or treatment of Hazardous Materials applicable to any
      of the Real Property.

            "INDEBTEDNESS" means, as to any Person (without duplication), (a)
      indebtedness of such Person for borrowed money or for the deferred
      purchase price of Property (excluding trade and other accounts payable in
      the ordinary course of business in accordance with customary trade terms),
      INCLUDING any Contingent Obligation with respect to any such indebtedness,
      (b) indebtedness of such Person of the nature described in clause (a) that
      is non-recourse to the credit of such Person but is secured by assets of
      such Person, to the extent of the value of such assets, (c) Capital Lease
      Obligations of such Person, (d) indebtedness of such Person arising under
      bankers' acceptance facilities or under facilities for the discount of
      accounts receivable of such Person, (e) any direct or contingent
      obligations of such Person under letters of credit issued for the account
      of such Person , and the aggregate amount drawn under letters of credit or
      other similar instruments and not reimbursed, and (f) any net obligations
      of such Person under a Swap Agreement.

            "INDENTURE" means the Indenture dated December 19, 2001 between
      Borrower and U.S. Bank, N.A., as Trustee, governing the Senior Unsecured
      Notes, as at any time amended.

            "INTANGIBLE ASSETS" means assets that are considered intangible
      assets under Generally Accepted Accounting Principles, INCLUDING customer
      lists, goodwill, copyrights, trade names, trademarks and patents.

            "INTEREST DIFFERENTIAL" means, with respect to any prepayment of a
      LIBOR Loan on a day other than the last day of the applicable Interest
      Period and with respect to any failure to borrow a LIBOR Loan on the date
      or in the amount specified in any Request for Loan, (a) the per annum
      interest rate payable (or, with respect to a failure to borrow, the
      interest rate which would have been payable) pursuant to Section 3.1(c)

                                      -13-
<Page>

      with respect to the LIBOR Loan MINUS (b) the LIBOR on, or as near as
      practicable to, the date of the prepayment or failure to borrow for a
      LIBOR Loan with an Interest Period commencing on such date and ending on
      the last day of the Interest Period of the LIBOR Loan so prepaid or which
      would have been borrowed on such date.

            "INTEREST EXPENSE" means, for any Person, for any fiscal period, the
      SUM OF (a) all interest, fees, charges and related expenses paid or
      payable (without duplication) for that fiscal period by that Person to a
      lender in connection with borrowed money or the deferred purchase price of
      assets that are considered "interest expense" under Generally Accepted
      Accounting Principles, PLUS (b) the portion of rent paid or payable
      (without duplication) for that fiscal period by that Person under Capital
      Lease Obligations that should be treated as interest in accordance with
      Financial Accounting Standards Board Statement No. 13.

            "INTEREST PERIOD" means, as to each LIBOR Loan, the period
      commencing on the date specified by Borrower pursuant to Section 2.1(b)
      and ending 1, 2, 3 or 6 months thereafter, as specified by Borrower in the
      applicable Request for Loan; PROVIDED that:

            (a) The first day of any Interest Period shall be a Eurodollar
      Market Day;

            (b) Any Interest Period that would otherwise end on a day that is
      not a Eurodollar Market Day shall be extended to the next succeeding
      Eurodollar Market Day unless such Eurodollar Market Day falls in another
      calendar month, in which case such Interest Period shall end on the next
      preceding Eurodollar Market Day;

            (c) Borrower may not specify an Interest Period that extends beyond
      any Reduction Date unless (i) the aggregate principal amount of the LIBOR
      Loans having an Interest Period ending after such Reduction Date PLUS (ii)
      the aggregate maximum amount available for drawing under Letters of Credit
      for which the expiry date is after such Reduction Date, does not exceed
      the Commitment (after giving effect to any reduction thereto scheduled to
      be made on such Reduction Date pursuant to Section 2.6); and

            (d) No Interest Period shall extend beyond the Maturity Date.

            "INVESTMENT" means, when used in connection with any Person, any
      investment by or of that Person, whether by means of purchase or other
      acquisition of stock or other securities of any other Person or by means
      of a loan, advance creating a debt, capital contribution, guaranty or
      other debt or equity participation or interest in any other Person,
      INCLUDING any partnership and joint venture interests of such Person. The
      amount of any Investment shall be the amount actually invested, without
      adjustment for subsequent increases or decreases in the value of such
      Investment.

                                      -14-
<Page>

            "ISSUING LENDER" means Bank of America, N.A.

            "LAWS" means, collectively, all federal, state and local statutes,
      rules, regulations, ordinances, codes and administrative or judicial
      precedents, or other matters having the force of law and binding upon the
      parties hereto.

            "LENDERS" has the meaning set forth in the preamble hereto.

            "LETTER OF CREDIT FEE RATE" means, for the initial Pricing Period
      2.75% per annum and, for each subsequent Pricing Period, the percentage
      per annum set forth opposite the Leverage Ratio as of the last day of the
      Fiscal Quarter ending two months prior to the first day of that Pricing
      Period:

<Table>
<Caption>

                 Leverage Ratio                    Letter of Credit Fee Rate
                 --------------                    -------------------------

<S>                                                          <C>
                 Greater than or equal to 3.50:1.00          3.00%

                 Less than 3.50:1.00 but greater than
                 or equal to 3.00:1.00                       2.75%

                 Less than 3.00:1.00 but greater than
                 or equal to 2.50:1.00                       2.25%

                 Less than 2.50:1.00 but greater than
                 or equal to 2.00:1.00                       2.00%

                 Less than 2.00 to1.00                       1.75%
</Table>

            "LETTERS OF CREDIT" means any of the letters of credit issued by the
      Issuing Lender under the Commitment pursuant to Section 2.4, either as
      originally issued or as the same may be supplemented, modified, amended,
      renewed, extended or supplanted and includes all Letters of Credit
      outstanding on the Effective Date.

            "LEVERAGE RATIO" means, as of the last day of each Fiscal Quarter,
      the ratio of (a) Average Total Debt to (b) EBITDA for the four Fiscal
      Quarter period then ended PLUS the amount of any Management Fees which
      were paid both prior to the Effective Date and during that four Fiscal
      Quarter period.

            "LIBOR" means, with respect to any LIBOR Loan, an interest rate per
      annum (rounded upward, if necessary, to the nearest 1/100 of one percent)
      determined pursuant to the following formula:

                  LIBOR=              Eurodollar Base Rate
                               ---------------------------------
                                   1.00 - Reserve  Percentage

                                      -15-
<Page>

            "LIBOR ADVANCE" means an Advance made hereunder and specified to be
      a LIBOR Advance in accordance with Article 2 and includes all LIBOR
      Advances outstanding on the Effective Date.

            "LIBOR LOAN" means a Loan made hereunder and specified to be a LIBOR
      Loan in accordance with Article 2 and includes all LIBOR Loans outstanding
      on the Effective Date.

            "LIBOR MARGIN" means, for the initial Pricing Period 2.75% per annum
      and, for each subsequent Pricing Period, the percentage per annum set
      forth opposite the Leverage Ratio as of the last day of the Fiscal Quarter
      ending two months prior to the first day of that Pricing Period:

<Table>
<Caption>

                 Leverage Ratio                           Libor Margin
                 --------------                           ------------

<S>                                                          <C>
                 Greater than or equal to 3.50:1.00          3.00%

                 Less than 3.50:1.00 but greater than        2.75%
                 or equal to 3.00:1.00

                 Less than 3.00:1.00 but greater than        2.25%
                 or equal to 2.50:1.00

                 Less than 2.50:1.00 but greater than        2.00%
                 or equal to 2.00:1.00

                 Less than 2.00 to 1.00                      1.75%
</Table>

            "LIBOR OFFICE" means, as to each Lender, its office or branch so
      designated by written notice to the Administrative Agent as its LIBOR
      Office. If no LIBOR Office is designated by a Lender, its LIBOR Office
      shall be its office at its address for purposes of notices hereunder.

            "LICENSE REVOCATION" means the revocation, failure to renew or
      suspension of, or the appointment of a receiver, supervisor or similar
      official with respect to, any racetrack, casino, gambling or gaming
      license issued by any Regulatory Board covering Wheeling Downs or any
      other racetrack, casino, gambling or other gaming facility owned or
      operated by Borrower or its Subsidiaries.

            "LIEN" means any mortgage, deed of trust, pledge, hypothecation,
      assignment for security, security interest, encumbrance, lien or charge of
      any kind, whether voluntarily incurred or arising by operation of Law or
      otherwise, affecting any Property, INCLUDING any agreement to grant any of
      the foregoing, any conditional sale or other title retention agreement,
      any lease in the nature of a security interest, and/or the filing of or
      agreement to give any financing statement (OTHER THAN a precautionary
      financing statement with respect to a lease that is not in the nature of a
      security interest

                                      -16-
<Page>

      or customary pre-filings of financing statements in connection with any
      refinancing) under the Uniform Commercial Code or comparable Law of any
      jurisdiction with respect to any Property.

            "LOAN" means the aggregate of the Advances made at any one time by
      the Lenders pursuant to Article 2 and includes all Loans outstanding on
      the Effective Date.

            "LOAN DOCUMENTS" means, collectively, this Agreement, the Notes,
      each Letter of Credit, the Subsidiary Guaranty, the Collateral Documents,
      each Request for Loan, each Request for Letter of Credit, each Compliance
      Certificate and any other agreements of any type or nature hereafter
      executed and delivered by Borrower or any of its Subsidiaries or
      Affiliates to the Administrative Agent or to any Lender in any way
      relating to or in furtherance of this Agreement, in each case either as
      originally executed or as the same may from time to time be supplemented,
      modified, amended, restated, extended or supplanted.

            "MAINTENANCE CAPITAL EXPENDITURES" means Capital Expenditures for
      the maintenance, repair, restoration or refurbishment of Wheeling Downs,
      but EXCLUDING any Capital Expenditure which adds to or further improves
      Wheeling Downs (including any Capital Expenditure associated with the
      initial construction of the Expansion Project).

            "MANAGEMENT FEES" means the management fees or incentive fees
      payable by Borrower to its owners on or prior to the Effective Date.

            "MARGIN STOCK" means "margin stock" as such term is defined in
      Regulation T, U or X.

            "MATERIAL ADVERSE EFFECT" means any set of circumstances or events
      which (a) has or may reasonably be expected to have any material adverse
      effect whatsoever upon the validity or enforceability of any Loan
      Document, (b) is or may reasonably be expected to be material and adverse
      to the financial condition or business operations of Borrower and its
      Subsidiaries, taken as a whole, or (c) materially impairs or may
      reasonably be expected to materially impair the ability of Borrower and
      its Subsidiaries, taken as a whole, to perform the Obligations.

            "MATURITY DATE" means the EARLIER OF (a) December 31, 2006 and (b)
      the date which is the fifth anniversary of the Effective Date.

            "MULTIEMPLOYER PLAN" means any employee benefit plan of the type
      described in Section 4001(a)(3) of ERISA.

            "NEGATIVE PLEDGE" means a Contractual Obligation that contains a
      covenant binding on Borrower or any of its Subsidiaries that prohibits
      Liens on any of its or

                                      -17-
<Page>

      their Property, OTHER THAN (a) any such covenant contained in a
      Contractual Obligation granting a Lien permitted under Section 6.8 which
      affects only the Property that is the subject of such permitted Lien and
      (b) any such covenant that does not apply to Liens securing the
      Obligations.

            "NET CASH PROCEEDS" means with respect to any Disposition of
      Collateral, the gross sales proceeds received by Borrower and its
      Subsidiaries from such Disposition NET OF brokerage commissions, legal
      expenses and other transactional costs payable by Borrower and its
      Subsidiaries with respect to such Disposition and NET OF an amount
      determined in good faith by Borrower to be the estimated amount of income,
      transfer, or value added taxes payable by Borrower attributable to such
      Disposition and any reserves required to be established in accordance with
      Generally Accepted Accounting Principles by Borrower or its Subsidiaries
      as a reserve against any liabilities associated with such Disposition,
      including without limitation pension and other post-employment benefit
      liabilities, liabilities related to environmental matters and liabilities
      under indemnification obligations associated with such Disposition.

            "NOTE" means any of the promissory notes made by Borrower to a
      Lender evidencing Advances under that Lender's Pro Rata Share of the
      Commitment, substantially in the form of Exhibit C, either as originally
      executed or as the same may from time to time be supplemented, modified,
      amended, renewed, extended or supplanted.

            "OBLIGATIONS" means all present and future obligations of every kind
      or nature of Borrower or any other Obligor at any time and from time to
      time owed to the Administrative Agent, the Issuing Lender or the Lenders
      or any one or more of them, under any one or more of the Loan Documents,
      whether due or to become due, matured or unmatured, liquidated or
      unliquidated, or contingent or noncontingent, INCLUDING obligations of
      performance as well as obligations of payment, and INCLUDING interest that
      accrues after the commencement of any proceeding under any Debtor Relief
      Law by or against Borrower or any Subsidiary or Affiliate of Borrower.

            "OBLIGOR" means Borrower, each Subsidiary Guarantor, each other
      future guarantor of the Obligations, and each other Subsidiary of Borrower
      which has at any time executed any Loan Document.

            "OPINIONS OF COUNSEL" means the favorable written legal opinion of
      Bailey, Riley, Buch & Harman, special counsel to the Obligors, and
      in-house counsel, in each case issued on the Effective Date and in a form
      solely acceptable to the Administrative Agent, together with copies of all
      factual certificates and legal opinions upon which such counsel have
      relied.

            "OUTSTANDING OBLIGATIONS" means, as of each date of determination,
      and giving effect to the making of any such credit accommodations
      requested on that date, the

                                      -18-
<Page>

      aggregate principal amount of the outstanding Loans, plus the Aggregate
      Effective Amount of all Letters of Credit.

            "PBGC" means the Pension Benefit Guaranty Corporation or any
      successor thereof established under ERISA.

            "PENSION PLAN" means any "employee pension benefit plan" (as such
      term is defined in Section 3(2) of ERISA), OTHER THAN a Multiemployer
      Plan, which is subject to Title IV of ERISA and is maintained by Borrower
      or any of its Subsidiaries or to which Borrower or any of its Subsidiaries
      contributes or has an obligation to contribute.

            "PERMITTED ENCUMBRANCES" means:

            (a) inchoate Liens incident to construction on or maintenance of
      Real Property; or Liens incident to construction on or maintenance of Real
      Property now or hereafter filed of record for which adequate reserves have
      been set aside (or deposits made pursuant to applicable Law) and which are
      being contested in good faith by appropriate proceedings and have not
      proceeded to judgment, PROVIDED that, by reason of nonpayment of the
      obligations secured by such Liens, no such Real Property is subject to a
      material risk of loss or forfeiture;

            (b) Liens for taxes and assessments on Real Property which are not
      yet past due; or Liens for taxes and assessments on Real Property for
      which adequate reserves have been set aside and are being contested in
      good faith by appropriate proceedings and have not proceeded to judgment,
      PROVIDED that, by reason of nonpayment of the obligations secured by such
      Liens, no such Real Property is subject to a material risk of loss or
      forfeiture;

            (c) minor defects and irregularities in title to any Real Property
      which in the aggregate do not materially impair the fair market value or
      use of the Real Property for the purposes for which it is or may
      reasonably be expected to be held;

            (d) easements, exceptions, licenses, reservations, or other
      agreements for the purpose of pipelines, conduits, cables,
      telecommunications, wire communication lines, power lines and substations,
      streets, trails, walkways, drainage, irrigation, water, and sewerage
      purposes, dikes, canals, ditches, the removal of oil, gas, coal, or other
      minerals, and other like purposes affecting Real Property, facilities, or
      equipment which in the aggregate do not materially burden or impair the
      fair market value or use of such Real Property for the purposes for which
      it is or may reasonably be expected to be held;

                                      -19-
<Page>

            (e) rights reserved to or vested in any Governmental Agency to
      control or regulate, or obligations or duties to any Governmental Agency
      with respect to, the use of any Real Property;

            (f) rights reserved to or vested in any Governmental Agency to
      control or regulate, or obligations or duties to any Governmental Agency
      with respect to, any right, power, franchise, grant, approval, license, or
      permit;

            (g) present or future zoning laws and ordinances or other Laws and
      ordinances restricting the occupancy, use, or enjoyment of Real Property;

            (h) statutory Liens, other than those described in clauses (A) or
      (B) above, arising in the ordinary course of business with respect to
      obligations which are not delinquent or are being contested in good faith
      by appropriate proceedings, PROVIDED that, if delinquent, adequate
      reserves have been set aside with respect thereto and, by reason of
      nonpayment, no Property is subject to a material risk of loss or
      forfeiture;

            (i) rights of tenants under leases and rental agreements covering
      Real Property entered into in the ordinary course of business of the
      Person owning such Real Property;

            (j) Liens consisting of pledges or deposits to secure obligations
      under workers' compensation laws or similar legislation, including Liens
      of judgments thereunder which are not currently dischargeable;

            (k) other non-consensual Liens incurred in the ordinary course of
      business but not in connection with an extension of credit, which do not
      in the aggregate, when taken together with all other Liens, materially
      impair the value or use of the Property of Borrower and the Subsidiaries
      of Borrower, taken as a whole; and

            (l) the matters disclosed on Schedule B to any of the ALTA lenders
      policies of title insurance delivered to the Administrative Agent pursuant
      to Section 8.1.

            "PERMITTED RIGHT OF OTHERS" means a Right of Others consisting of
      (a) an interest (other than a legal or equitable co-ownership interest, an
      option or right to acquire a legal or equitable co-ownership interest and
      any interest of a ground lessor under a ground lease), that does not
      materially impair the value or use of Property for the purposes for which
      it is or may reasonably be expected to be held, (b) an option or right to
      acquire a Lien that would be a Permitted Encumbrance, (c) any licenses or
      concessions to operate retail businesses granted in accordance with
      industry customs, or any options to receive any such licenses or
      concessions, or (d) any Right of Others granted in connection with a
      proposed Disposition permitted by Section 6.4.

                                      -20-
<Page>

            "PERMITTED TAX DISTRIBUTIONS" means Distributions made by Borrower
      pursuant to the Tax Sharing Agreement providing for payment by the
      Borrower to its shareholders or other owners with respect to any period of
      amounts representing not more than the amount of tax that would be payable
      by Borrower for such period had the Borrower and its Subsidiaries filed a
      separate consolidated or combined tax return as a Subchapter C corporation
      for the relevant taxing jurisdiction (less any tax directly paid by such
      Persons with respect to such period).

            "PERSON" means any individual or entity, INCLUDING a trustee,
      corporation, limited liability company, general partnership, limited
      partnership, joint stock company, trust, estate, unincorporated
      organization, business association, firm, joint venture, Governmental
      Agency, or other entity.

            "PLANS" mean the construction plans for the Expansion Project
      submitted to and approved by the Administrative Agent pursuant to Section
      5.13.

            "PRICING PERIOD" means (a) the period beginning on the Effective
      Date and ending on December 31, 2001, and (b) each of the succeeding three
      month periods beginning on each January 1, April 1, July 1 and October 1.

            "PRIME RATE" means the rate of interest publicly announced from time
      to time by Bank of America as its "prime rate." It is a rate set by Bank
      of America based upon various factors including Bank of America's costs
      and desired return, general economic conditions and other factors, and is
      used as a reference point for pricing some loans, which may be priced at,
      above, or below such announced rate. Any change in the Prime Rate
      announced by Bank of America shall take effect at the opening of business
      on the day specified in the public announcement of such change.

            "PROJECTIONS" means the financial projections attached hereto as
      Schedule 4.17.

            "PROPERTY" means any interest in any kind of property or asset,
      whether real, personal or mixed, or tangible or intangible.

            "PRO RATA SHARE" means, as of each date of determination and with
      respect to each Lender, the percentage of the Commitment owned by that
      Lender (or, if the Commitment has been terminated, the percentage of the
      Outstanding Obligations owned by that Lender). As of the Effective Date,
      the Pro Rata Share of each Lender is as set forth on the signature pages
      hereto. The records of the Administrative Agent shall be presumed to
      correctly reflect the Pro Rata Share of the Lenders then party to this
      Agreement.

            "QUARTERLY PAYMENT DATE" means each March 31, June 30, September 30
      and December 31 to occur following the date of this Agreement.

                                      -21-
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            "REAL PROPERTY" means, as of any date of determination, all real
      Property then or theretofore owned, leased or occupied by Borrower or any
      of its Subsidiaries.

            "REDUCTION AMOUNT" means, with respect to each Reduction Date,
      $2,500,000, PROVIDED that from and after the date of any increase of the
      Commitment in accordance with Section 2.8, the amount of the Reduction
      Amount for each subsequent Reduction Date shall be increased in the
      proportion that (a) $40,000,000 PLUS the amount of such increase bears to
      (b) $40,000,000.

            "REDUCTION DATE" means December 31, 2003, and the last day of each
      succeeding March, June, September and December through and including
      September 30, 2005, and the Maturity Date.

            "REGULATION D" means Regulation D, as at any time amended, of the
      Board of Governors of the Federal Reserve System, or any other regulation
      in substance substituted therefor.

            "REGULATIONS T, U AND X" means Regulations T, U and X, as at any
      time amended, of the Board of Governors of the Federal Reserve System, or
      any other regulations in substance substituted therefor.

            "REGULATORY BOARD" means, collectively, (a) the West Virginia Racing
      Commission, the West Virginia Lottery Commission, and (b) any other
      Governmental Agency that holds regulatory, licensing or permit authority
      over gambling, gaming or casino activities conducted by Borrower or any of
      its Subsidiaries within its jurisdiction.

            "REQUEST FOR LETTER OF CREDIT" means a written request for a Letter
      of Credit substantially in the form of Exhibit D, signed by a Responsible
      Official of Borrower and properly completed to provide all information
      required to be included therein.

            "REQUEST FOR LOAN" means a written request for a Loan substantially
      in the form of Exhibit E, signed by a Responsible Official of Borrower and
      properly completed to provide all information required to be included
      therein.

            "REQUIRED DEBT REDUCTIONS" means, for any period, the aggregate
      principal amount, without duplication, of (a) any scheduled principal
      payments required to be made with respect to Total Debt during that
      period, (b) any principal payments required to be made during that period
      with respect to Total Debt on the basis of a contingency which has
      actually occurred as of the date of calculation which is certain to occur
      during that period; (c) any scheduled reduction to a revolving credit
      facility during that period to the extent that Total Debt under that
      credit facility (determined as of the last day of such period) is in
      excess of the remaining amount of the credit facility following such
      reductions.

                                      -22-
<Page>

            "REQUIREMENT OF LAW" means, as to any Person, the articles or
      certificate of incorporation and by-laws or other organizational or
      governing documents of such Person, and any Law, or judgment, award,
      decree, writ or determination of a Governmental Agency, in each case
      applicable to or binding upon such Person or any of its Property or to
      which such Person or any of its Property is subject.

            "REQUISITE LENDERS" means, as of each date of determination (a) if
      the Commitment is then in effect, Lenders having Pro Rata Shares
      constituting 51% of the Commitment (but if there are only two Lenders,
      both Lenders), and (b) if the Commitment has then been terminated and
      there are then any Obligations outstanding, Lenders holding 51% or more of
      the Outstanding Obligations (but if there are only two Lenders, both
      Lenders).

            "RESERVE PERCENTAGE" means, with respect to any LIBOR Loan, the
      maximum reserve percentage (expressed as a decimal, rounded upward, if
      necessary, to the nearest 1/100th of 1%) in effect on the date the
      Eurodollar Base Rate for that LIBOR Loan is determined (whether or not
      applicable to any Lender) under regulations issued from time to time by
      the Federal Reserve Board for determining the maximum reserve requirement
      (including any emergency, supplemental or other marginal reserve
      requirement) with respect to eurocurrency funding (currently referred to
      as "eurocurrency liabilities") having a term comparable to the Interest
      Period for such LIBOR Loan. The determination by the Administrative Agent
      of any applicable Reserve Percentage shall be conclusive in the absence of
      manifest error.

            "RESPONSIBLE OFFICIAL" means (a) when used with reference to a
      Person other than an individual, any officer of such Person, general
      partner of such Person, officer of a corporate general partner of such
      Person, or corporate officer of a corporate general partner of a
      partnership that is a general partner of such Person, or any other
      responsible official thereof duly acting on behalf thereof, and (b) when
      used with reference to a Person who is an individual, such Person. Any
      document or certificate hereunder that is signed or executed by a
      Responsible Official of another Person shall be conclusively presumed to
      have been authorized by all necessary corporate, partnership and/or other
      action on the part of such other Person.

            "RIGHT OF OTHERS" means, as to any Property in which a Person has an
      interest, any legal or equitable right, title or other interest (other
      than a Lien) held by any other Person in that Property, and any option or
      right held by any other Person to acquire any such right, title or other
      interest in that Property, INCLUDING any option or right to acquire a
      Lien.

            "SENIOR OFFICER" means the (a) chief executive officer, (b)
      president, (c) any vice president, (d) chief financial officer, (e)
      treasurer or (f) assistant treasurer of the Person designated.

                                      -23-
<Page>

            "SENIOR UNSECURED NOTES" means Borrower's 10 1/8th% Senior Unsecured
      Notes due 2009.

            "SENIOR UNSECURED NOTE ISSUANCE" shall have the meaning provided in
      the recitals hereto.

            "SOLVENT" means, as of any date of determination, and as to any
      Person, that on such date: (a) the fair valuation of the assets of such
      Person is greater than the fair valuation of such Person's probable
      liability in respect of existing debts; (b) such Person does not intend
      to, and does not believe that it will, incur debts beyond such Person's
      ability to pay as such debts mature; (c) such Person is not engaged in a
      business or transaction, and is not about to engage in a business or
      transaction, which would leave such Person with assets remaining which
      would constitute unreasonably small capital after giving effect to the
      nature of the particular business or transaction; and (d) such Person is
      generally paying its debts as they become due. For purposes of the
      foregoing (1) the "fair valuation" of any assets means the amount
      realizable within a reasonable time, either through collection or sale, of
      such assets at their regular market value, which is the amount obtainable
      by a capable and diligent businessman from an interested buyer willing to
      purchase such assets within a reasonable time under ordinary
      circumstances; and (2) the term "debts" includes any legal liability
      whether matured or unmatured, liquidated or unliquidated, absolute, fixed
      or contingent.

            "SPECIAL LIBOR CIRCUMSTANCE" means the application or adoption after
      the Effective Date of any Law or interpretation, or any change after the
      Effective Date therein or thereof, or any change after the Effective Date
      in the interpretation or administration thereof by any Governmental
      Agency, central bank or comparable authority charged with the
      interpretation or administration thereof, or compliance by any Lender or
      its LIBOR Office with any request or directive (whether or not having the
      force of Law) of any such Governmental Agency, central bank or comparable
      authority issued after the Effective Date, or the existence or occurrence
      after the Effective Date of circumstances affecting the Designated
      Eurodollar Market generally that are beyond the reasonable control of the
      Lenders.

            "SPORTSYSTEMS" means Sportsystems Corporation, a Delaware
      corporation, and its successors and assignees.

            "STOCK REDEMPTION AGREEMENT" means the Stock Redemption Agreement
      dated November 16, 2001 among Borrower, WHX Entertainment and Sportsystems
      Corporation, as in effect on the Effective Date.

            "SUBORDINATED OBLIGATIONS" means any Indebtedness of Borrower which
      is subordinated in right of payment to the Obligations, the terms of which
      are approved

                                      -24-
<Page>

      by the Administrative Agent, acting with the consent of the Requisite
      Lenders, in writing.

            "SUBSIDIARY" means, as of any date of determination and with respect
      to any Person, any corporation, limited liability company or partnership
      (whether or not, in either case, characterized as such or as a "joint
      venture"), whether now existing or hereafter organized or acquired: (a) in
      the case of a corporation or limited liability company, of which a
      majority of the securities having ordinary voting power for the election
      of directors or other governing body (other than securities having such
      power only by reason of the happening of a contingency) are at the time
      beneficially owned by such Person and/or one or more Subsidiaries of such
      Person, or (b) in the case of a partnership, of which a majority of the
      partnership or other voting ownership interests are at the time
      beneficially owned by such Person and/or one or more of its Subsidiaries.

            "SUBSIDIARY GUARANTORS" means WDRA Food Service, Inc., Wheeling Land
      Development Corp. and each of the other Subsidiaries listed on Schedule
      4.4 hereto, and each other Person which hereafter issues a joinder to the
      Subsidiary Guaranty in accordance with Section 6.17.

            "SUBSIDIARY GUARANTY" means the Amended and Restated Subsidiary
      Guaranty executed delivered by each Subsidiary of Borrower on the
      Effective Date, together with any joinders thereto hereafter executed by
      any Subsidiary pursuant to Section 6.17, either as originally executed or
      as it may from time to time be supplemented, modified, amended, or
      supplanted.

            "SUBSIDIARY SECURITY AGREEMENT" means the Amended and Restated
      Subsidiary Security Agreement executed and delivered by each Subsidiary of
      Borrower on the Effective Date in favor of the Administrative Agent for
      the benefit of the Creditors, either as originally executed or as it may
      from time to time be supplemented, modified, amended, extended or
      supplanted.

             "SWAP AGREEMENT" means a written agreement between Borrower and one
      or more financial institutions providing for "swap", "cap", "collar" or
      other interest rate protection with respect to any Indebtedness.

            "SYNDICATION AGENT" means Wells Fargo Bank, N.A. The capacity of the
      Syndication Agent is purely titular in nature, and the Syndication Agent
      shall have no rights or obligations over those of a Lender hereunder or
      under the other Loan Documents.

            "TAX SHARING AGREEMENT" means the Tax Sharing Agreement effective as
      of January 1, 2001, by and among Delaware North, Sportsystems and
      Borrower, as amended from time to time.

                                      -25-
<Page>

            "TO THE BEST KNOWLEDGE OF" means, when modifying a representation,
      warranty or other statement of any Person, that the fact or situation
      described therein is known by the Person (or, in the case of a Person
      other than a natural Person, known by a Responsible Official of that
      Person) making the representation, warranty or other statement, or with
      the exercise of reasonable due diligence under the circumstances (in
      accordance with the standard of what a reasonable Person in similar
      circumstances would have done) would have been known by the Person (or, in
      the case of a Person other than a natural Person, would have been known by
      a Responsible Official of that Person).

            "TIMETABLE" means the construction timetable for the Expansion
      Project submitted to and approved by the Administrative Agent pursuant to
      Section 5.13.

            "TOTAL DEBT" means, as of the last day of each Fiscal Quarter, the
      consolidated Indebtedness of Borrower and its Subsidiaries as of such
      date, after elimination of inter-company items in accordance with
      Generally Accepted Accounting Principles.

            "TYPE", when used with respect to any Loan or Advance, means the
      designation of whether such Loan or Advance is a Base Rate Loan or
      Advance, or a LIBOR Loan or Advance.

            "VENUE" means any gaming, pari-mutuel, racing or other entertainment
      venue now or hereafter operated by Borrower or any of its Subsidiaries.

            "WHEELING DOWNS" means the Wheeling Downs Racetrack & Gaming Center
      located in Ohio County, West Virginia.

            "WHX ENTERTAINMENT" means WHX Entertainment Corp., a Delaware
      corporation, and its successors and assignees.

            "WHX ENTERTAINMENT REDEMPTION" shall have the meaning provided in
      the recitals hereto.

      1.2 USE OF DEFINED TERMS. Any defined term used in the plural shall refer
to all members of the relevant class, and any defined term used in the singular
shall refer to any one or more of the members of the relevant class.

      1.3 ACCOUNTING TERMS. All accounting terms not specifically defined in
this Agreement shall be construed in conformity with, and all financial data
required to be submitted by this Agreement shall be prepared in conformity with,
Generally Accepted Accounting Principles as in effect on the Effective Date,
applied on a consistent basis.

      1.4 ROUNDING. Any financial ratios required to be maintained by Borrower
pursuant to this Agreement shall be calculated by dividing the appropriate
component by the

                                      -26-
<Page>

other component, carrying the result to one place more than the number of places
by which such ratio is expressed in this Agreement and rounding the result up or
down to the nearest number (with a round-up if there is no nearest number) to
the number of places by which such ratio is expressed in this Agreement.

      1.5 EXHIBITS AND SCHEDULES. All Exhibits and Schedules to this Agreement,
either as originally existing or as the same may from time to time be
supplemented, modified or amended, are incorporated herein by this reference. A
matter disclosed on one Schedule shall be deemed disclosed on all Schedules.

      1.6 REFERENCES TO "AND ITS SUBSIDIARIES". Any reference herein to "and its
Subsidiaries" or the like shall refer solely to the subject Person during such
times as the subject Person shall have no Subsidiaries. No use of the term
"Subsidiary" or any derivative thereof in the Loan Documents shall imply a right
in any Person to make any Investments in or Acquisitions of any other Person.

      1.7 REFERENCES TO TIMES. Each reference to a time of day set forth in the
Loan Documents shall, unless expressly stated to the contrary, be a reference to
the then prevailing California local time.

      1.8 MISCELLANEOUS TERMS. The term "or" is disjunctive; the term "and" is
conjunctive. The term "shall" is mandatory; the term "may" is permissive.
Masculine terms also apply to females; feminine terms also apply to males. The
term "including" is by way of example and not limitation.

                                      -27-
<Page>

                                    Article 2
                           LOANS AND LETTERS OF CREDIT

      2.1   LOANS-GENERAL.

            (a) Subject to the terms and conditions set forth in this Agreement,
at any time and from time to time from the Effective Date through the Business
Day immediately prior to the Maturity Date, each Lender shall, pro rata
according to that Lender's Pro Rata Share of the then applicable Commitment,
make Advances to Borrower under the Commitment in such amounts as Borrower may
request that do not result in the Outstanding Obligations being in excess of the
then effective Commitment. Subject to the limitations set forth herein, the
Advances by each Lender under its Pro Rata Share of the Commitment may be
prepaid without premium or penalty and may be borrowed, repaid and reborrowed.

            (b) Subject to the next sentence, each Loan shall be made pursuant
to a Request for Loan which shall specify the requested (i) date of such Loan,
(ii) type of Loan, (iii) amount of such Loan, and (iv) in the case of a LIBOR
Rate Loan, the Interest Period for such Loan. Unless the Administrative Agent,
in its sole and absolute discretion, has notified Borrower to the contrary,
Loans may be requested by telephone by a Responsible Official of Borrower, in
which case Borrower shall confirm such request by promptly delivering a Request
for Loan in person or by telecopier conforming to the preceding sentence to the
Administrative Agent. The Administrative Agent shall incur no liability
whatsoever hereunder in acting upon any telephonic request purportedly made by a
Responsible Official of Borrower, and Borrower hereby agrees to indemnify each
Creditor from any loss, cost, expense or liability as a result of so acting.

            (c) Promptly following receipt of a Request for Loan, the
Administrative Agent shall notify each Lender by telephone or telecopier (and if
by telephone, promptly confirmed by telecopier) of the date and type of the
Loan, any applicable Interest Period, and that Lender's Pro Rata Share of the
Loan. Not later than 11:00 a.m., California local time, on the date specified
for any Loan (which must be a Business Day), each Lender shall make its Pro Rata
Share of the Loan in immediately available funds available to the Administrative
Agent at the Administrative Agent's Office. Upon satisfaction of the applicable
conditions set forth in Article 8, all Advances shall be credited on that date
in immediately available funds to the Disbursement Account.

            (d) Unless the Requisite Lenders otherwise consent, each Loan shall
be in an integral multiple of $250,000 which is not less than $1,000,000.

            (e) The Advances made by each Lender shall be evidenced by that
Lender's Note.

                                      -28-
<Page>

            (f) A Request for Loan shall be irrevocable upon the Administrative
Agent's first notification thereof.

            (g) If no Request for Loan (or telephonic request for Loan referred
to in the second sentence of Section 2.1(b), if applicable) has been made within
the requisite notice periods set forth in Section 2.2 or 2.3 prior to the end of
the Interest Period for any LIBOR Loan, then on the last day of such Interest
Period, such LIBOR Loan shall be automatically converted into a Base Rate Loan
in the same amount.

            (h) If a Loan is to be made on the same date that another Loan is
due and payable the Lenders shall make available to the Administrative Agent (or
the Administrative Agent shall make available to the Lenders) the net amount of
funds giving effect to both such Loans and the effect for purposes of this
Agreement shall be the same as if separate transfers of funds had been made with
respect to each such Loan.

      2.2   BASE RATE LOANS. Each request by Borrower for a Base Rate Loan shall
be made pursuant to a Request for Loan (or telephonic or other request for loan
referred to in the second sentence of Section 2.1(b), if applicable) received by
the Administrative Agent, at the Administrative Agent's Office, not later than
9:00 a.m. California local time, on the date (which must be a Business Day) of
the requested Base Rate Loan. All Loans shall constitute Base Rate Loans unless
properly designated as a LIBOR Loan pursuant to Section 2.3.

      2.3   LIBOR LOANS.

            (a) Each request by Borrower for a LIBOR Loan shall be made pursuant
to a Request for Loan (or telephonic or other request for Loan referred to in
the second sentence of Section 2.1(b), if applicable) received by the
Administrative Agent, at the Administrative Agent's Office, not later than 9:00
a.m., California local time, at least three Eurodollar Business Days before the
first day of the applicable Interest Period.

            (b) On the date which is two Eurodollar Business Days before the
first day of the applicable Interest Period, the Administrative Agent shall
confirm its determination of the applicable Eurodollar Rate (which determination
shall be conclusive in the absence of manifest error) and promptly shall give
notice of the same to Borrower and the Lenders by telephone or telecopier (and
if by telephone, promptly confirmed by telecopier).

            (c) Unless the Administrative Agent and the Requisite Lenders
otherwise consent, no more than twenty five LIBOR Loans shall be outstanding at
any one time.

            (d) No LIBOR Loan may be requested during the continuation of a
Default or Event of Default.

            (e) Nothing contained herein shall require any Lender to fund any
LIBOR Advance in the Designated Eurodollar Market.

                                      -29-
<Page>

      2.4   LETTERS OF CREDIT.

            (a) Subject to the terms and conditions hereof, at any time and from
time to time from the Effective Date through the Business Day immediately prior
to the Maturity Date, the Issuing Lender shall issue such Letters of Credit
under the Commitment as Borrower may request by a Request for Letter of Credit;
PROVIDED that (i) giving effect to all such Letters of Credit, the Outstanding
Obligations do not exceed the then applicable Commitment, and (ii) the Aggregate
Effective Amount under all outstanding Letters of Credit shall not exceed
$5,000,000. Each Letter of Credit shall be in a form reasonably acceptable to
the Issuing Lender. Unless all the Lenders otherwise consent in a writing
delivered to the Administrative Agent, the term of any Letter of Credit shall
not exceed one year or extend beyond the Maturity Date.

            (b) Each Request for Letter of Credit shall be submitted to the
Issuing Lender, with a copy to the Administrative Agent, at least three Business
Days prior to the date upon which the related Letter of Credit is proposed to be
issued. The Administrative Agent shall promptly notify the Issuing Lender
whether such Request for Letter of Credit, and the issuance of a Letter of
Credit pursuant thereto, conforms to the requirements of this Agreement. Upon
issuance of a Letter of Credit, the Issuing Lender shall promptly notify the
Administrative Agent, and the Administrative Agent shall promptly notify the
Lenders, of the amount and terms thereof.

            (c) Upon the issuance of a Letter of Credit, each Lender shall be
deemed to have purchased at par a pro rata participation in such Letter of
Credit from the Issuing Lender in an amount equal to that Lender's Pro Rata
Share. Without limiting the scope and nature of each Lender's participation in
any Letter of Credit, to the extent that the Issuing Lender has not been
reimbursed by Borrower for any payment required to be made by the Issuing Lender
under any Letter of Credit, each Lender shall, pro rata according to its Pro
Rata Share, pay the purchase price for such participation to the Issuing Lender
through the Administrative Agent promptly upon demand therefor. The obligation
of each Lender to so pay the participation purchase price to the Issuing Lender
shall be absolute and unconditional and shall not be affected by the occurrence
of an Event of Default or any other occurrence or event. Any such payment of the
purchase price shall not relieve or otherwise impair the obligation of Borrower
to reimburse the Issuing Lender for the amount of any payment made by the
Issuing Lender under any Letter of Credit together with interest as hereinafter
provided.

            (d) Borrower agrees to pay to the Issuing Lender through the
Administrative Agent an amount equal to any payment made by the Issuing Lender
with respect to each Letter of Credit upon demand by the Issuing Lender
therefor, together with interest on such amount from the date of any payment
made by the Issuing Lender at the Default Rate. The principal amount of any such
payment shall be used to reimburse the Issuing Lender for the payment made by it
under the Letter of Credit and, to the extent that the Lenders have not
reimbursed the Issuing Lender pursuant to Section 2.4(c), the interest

                                      -30-
<Page>

amount of any such payment shall be for the account of the Issuing Lender. Each
Lender that has paid the participation purchase price to the Issuing Lender
pursuant to Section 2.4(c) shall thereupon acquire a pro rata participation, to
the extent of such payment, in the claim of the Issuing Lender against Borrower
for reimbursement of principal and interest under this Section 2.4(d) and shall
share, in accordance with that pro rata participation, in any principal payment
made by Borrower with respect to such claim and in any interest payment made by
Borrower with respect to such claim.

            (e) Borrower may, pursuant to a Request for Loan, request that
Advances be made pursuant to Section 2.1(a) to provide funds for the payment
required by Section 2.4(d) and, for this purpose, the conditions precedent set
forth in Article 8 shall not apply. The proceeds of such Advances shall be paid
directly to the Issuing Lender to reimburse it for the payment made by it under
the Letter of Credit.

            (f) If Borrower fails to make the payment required by Section 2.4(d)
on a timely basis then, in lieu of the payment of the participation purchase
price to the Issuing Lender under Section 2.4(c), the Issuing Lender may (but is
not required to), without notice to or the consent of Borrower, instruct the
Administrative Agent to cause Advances to be made by the Lenders under their Pro
Rata Shares of the Commitment in an aggregate amount equal to the amount paid by
the Issuing Lender with respect to that Letter of Credit and, for this purpose,
the conditions precedent set forth in Article 8 shall not apply. The proceeds of
such Advances shall be paid directly to the Issuing Lender to reimburse it for
the payment made by it under the Letter of Credit.

            (g) The issuance of any supplement, modification, amendment,
renewal, or extension to or of any Letter of Credit shall be treated in all
respects the same as the issuance of a new Letter of Credit.

            (h) The obligation of Borrower to pay to the Issuing Lender the
amount of any payment made by the Issuing Lender under any Letter of Credit
shall be absolute, unconditional, and irrevocable, subject only to performance
by the Issuing Lender of its obligations to Borrower under Uniform Commercial
Code Section 5109. Without limiting the foregoing, the obligations of Borrower
to the Issuing Lender shall not be affected by any of the following
circumstances:

                  (i) any lack of validity or enforceability of the Letter of
      Credit, this Agreement, or any other agreement or instrument relating
      thereto;

                  (ii) any amendment or waiver of or any consent to departure
      from the Letter of Credit, this Agreement, or any other agreement or
      instrument relating thereto;

                  (iii) the existence of any claim, setoff, defense, or other
      rights which Borrower may have at any time against the Issuing Lender, the
      Administrative Agent

                                      -31-
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      or any Lender, any beneficiary of the Letter of Credit (or any persons or
      entities for whom any such beneficiary may be acting) or any other Person,
      whether in connection with the Letter of Credit, this Agreement, or any
      other agreement or instrument relating thereto, or any unrelated
      transactions;

                  (iv) any demand, statement, or any other document presented
      under the Letter of Credit proving to be forged, fraudulent, invalid, or
      insufficient in any respect or any statement therein being untrue or
      inaccurate in any respect whatsoever so long as any such document appeared
      to comply with the terms of the Letter of Credit;

                  (v) payment by the Issuing Lender in good faith under the
      Letter of Credit against presentation of a draft or any accompanying
      document which does not strictly comply with the terms of the Letter of
      Credit;

                  (vi) the existence, character, quality, quantity, condition,
      packing, value or delivery of any Property purported to be represented by
      documents presented in connection with any Letter of Credit or any
      difference between any such Property and the character, quality, quantity,
      condition, or value of such Property as described in such documents;

                  (vii) the time, place, manner, order or contents of shipments
      or deliveries of Property as described in documents presented in
      connection with any Letter of Credit or the existence, nature and extent
      of any insurance relative thereto;

                  (viii) the solvency or financial responsibility of any party
      issuing any documents in connection with a Letter of Credit;

                  (ix) any failure or delay in notice of shipments or arrival of
      any Property;

                  (x) any error in the transmission of any message relating to a
      Letter of Credit not caused by the Issuing Lender, or any delay or
      interruption in any such message;

                  (xi) any error, neglect or default of any correspondent of the
      Issuing Lender in connection with a Letter of Credit (but without
      prejudice to any claim by Borrower against such correspondent);

                  (xii) any consequence arising from acts of God, war,
      insurrection, civil unrest, disturbances, labor disputes, emergency
      conditions or other causes beyond the control of the Issuing Lender;

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<Page>

                  (xiii) so long as the Issuing Lender in good faith determines
      that the contract or document appears to comply with the terms of the
      Letter of Credit, the form, accuracy, genuineness or legal effect of any
      contract or document referred to in any document submitted to the Issuing
      Lender in connection with a Letter of Credit; and

                  (xiv) where the Issuing Lender has acted in good faith and
      observed general business usage, any other circumstances whatsoever.

            (i) The Issuing Lender shall be entitled to the protection accorded
to the Administrative Agent pursuant to Article 10, MUTATIS MUTANDIS.

            (j) The Uniform Customs and Practice for Documentary Credits, as
published in its most current version by the International Chamber of Commerce,
shall be deemed a part of this Section and shall apply to all Letters of Credit
to the extent not inconsistent with applicable Law.

      2.5   VOLUNTARY REDUCTION OF COMMITMENT. Borrower shall have the right, at
any time and from time to time, without penalty or charge, upon at least three
Business Days' prior written notice by Borrower to the Administrative Agent, to
voluntarily reduce, permanently and irrevocably, in amounts which are integral
multiples of $500,000, or to terminate, all or a portion of the then undisbursed
portion of the Commitment. Borrower shall also have the right, at any time and
from time to time, without penalty or charge, upon notice on the same Business
Day by Borrower to the Administrative Agent, to voluntarily prepay any Base Rate
Advances. Borrower shall also have the right, at any time and from time to time,
without penalty or charge, upon at least three business days' prior notice by
Borrower to the Administrative Agent, to voluntarily prepay any LIBOR Advances.
Each voluntary reduction shall be applied first to the amount of the Commitment
scheduled to be required to be reduced on the Maturity Date and then to
Reduction Amounts in the inverse order of their occurrence. The Administrative
Agent shall promptly notify the Lenders of any reduction or termination of the
Commitment under this Section, and of any changes to the Reduction Amounts.

      2.6   SCHEDULED REDUCTIONS OF COMMITMENT. The Commitment shall
automatically and permanently reduce on each Reduction Date by the related
Reduction Amount.

      2.7   MANDATORY REDUCTIONS OF COMMITMENT.

            (a) The Commitment shall permanently reduce in the amount of any
      mandatory prepayments required pursuant to Section 3.1(f).

            (b) In the event that Borrower hereafter makes any Investment of the
      type described in Section 6.16(c), the Commitment shall also permanently
      reduce upon the date of the making of any subsequent Loan or issuance of
      any subsequent Letter of

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      Credit hereunder, in each case in the then outstanding principal amount of
      such Investment.

            (c) Any reduction of the Commitment pursuant to this Section 2.7
      shall be in addition to the scheduled reductions described in Section 2.6.

      2.8   OPTIONAL INCREASES TO THE COMMITMENT.

            (a) PROVIDED that no Default or Event of Default then exists,
      Borrower may at any time request in writing that the then effective
      Commitment be increased (on the same terms and conditions set forth
      herein) to an amount which is not greater than $50,000,000 MINUS the
      amount of any reductions to the Commitment which have then occurred
      pursuant to Sections 2.5, 2.6 or 2.7, in accordance with the provisions of
      this Section, PROVIDED that any such increase shall, unless all of the
      Lenders otherwise consent, be requested prior to the date which is 18
      months following the Effective Date. Any request under this Section shall
      be submitted by Borrower to the Administrative Agent not less than thirty
      days prior to the proposed increase, specify the proposed effective date
      and amount of such increase and be accompanied by (i) a Certificate of a
      Responsible Official, signed by a Senior Officer of Borrower, stating that
      no Default or Event of Default exists as of the date of the request or
      will result from the requested increase, (ii) amendments, in form and
      substance acceptable to the Administrative Agent, to the Deeds of Trust,
      increasing the amount of the obligations secured thereby to the amount of
      the Commitment (as so increased), together with endorsements to the policy
      of title insurance held by the Administrative Agent in relation thereto
      reflecting a similar increase, and (iii) a written consent to the increase
      in the amount of the Commitment executed by each Guarantor. Borrower may
      also specify any fees offered to those Lenders which agree to an increase
      in the amount of their Pro Rata Shares (which fees may be variable based
      upon the amount which any such Lender is willing to assume as an increase
      to the amount of its Pro Rata Share). The consent of the Lenders, as such,
      shall not be required for an increase in the amount of the Commitment
      pursuant to this Section.

            (b) Each Lender may approve or reject a request for an increase in
      the amount of the Commitment in its sole and absolute discretion and,
      absent an affirmative written response within fifteen days after receipt
      of such request, shall be deemed to have rejected the request. The
      rejection of such a request by any number of Lenders shall not affect
      Borrower's right to increase the Commitment pursuant to this Section.

            (c) In responding to a request under this Section, each Lender which
      is willing to increase the amount of its Pro Rata Share of the increased
      Commitment shall specify the amount of the proposed increase which it is
      willing to assume. Each consenting Lender shall be entitled to participate
      ratably (based on its Pro Rata Share before such increase) in any
      resulting increase in the Commitment, subject to the right

                                      -34-
<Page>

      of the Administrative Agent to adjust allocations of the increased
      Commitment so as to result in the amounts of the Pro Rata Shares of the
      Lenders being in integral multiples of $250,000.

            (d) If the aggregate principal amount offered to be assumed by the
      consenting Lenders is less than the amount requested, Borrower may (i)
      reject the proposed increase in its entirety, (ii) accept the offered
      amounts or (iii) designate new lenders who qualify as Eligible Assignees
      and which are reasonably acceptable to the Administrative Agent as
      additional Lenders hereunder in accordance with clause (e) of this Section
      (each, a "New Lender"), which New Lenders may assume the amount of the
      increase in the Commitment that has not been assumed by the consenting
      Lenders.

            (e) Each New Lender designated by Borrower and reasonably acceptable
      to the Administrative Agent shall become an additional party hereto as a
      New Lender concurrently with the effectiveness of the proposed increase in
      the Commitment upon its execution of an instrument of joinder to this
      Agreement which is in form and substance acceptable to the Administrative
      Agent and which, in any event, contains the representations, warranties,
      indemnities and other protections afforded to the Administrative Agent and
      the other Lenders which would be granted or made by an Eligible Assignee
      by means of the execution of an Assignment Agreement.

            (f) Subject to the foregoing, any increase to the Commitment
      requested under this Section shall be effective as of the date proposed by
      Borrower shall be in the principal amount equal to (i) the amount which
      consenting Lenders are willing to assume as increases to the amount of
      their Pro Rata Share PLUS (ii) the amount offered by any New Lenders. Upon
      the effectiveness of any such increase, Borrower and the Co-Borrowers
      shall issue replacement Notes to each affected Lender, and the percentage
      Pro Rata Shares of each Lender will be adjusted to give effect to the
      increase in the Commitment.

      2.9   ADMINISTRATIVE AGENT'S RIGHT TO ASSUME FUNDS AVAILABLE FOR ADVANCES.
Unless the Administrative Agent shall have been notified by a Lender no later
than the Business Day prior to the funding by the Administrative Agent of any
Loan that such Lender does not intend to make available to the Administrative
Agent such Lender's Pro Rata Share of that Loan, the Administrative Agent may
assume that such Lender has made such amount available to the Administrative
Agent on the date of the Loan and the Administrative Agent may, in reliance upon
such assumption, make available to Borrower a corresponding amount. If the
Administrative Agent has made funds available to Borrower based on such
assumption and such corresponding amount is not in fact made available to the
Administrative Agent by such Lender, the Administrative Agent shall be entitled
to recover such corresponding amount on demand from such Lender. If such Lender
does not pay such corresponding amount forthwith upon the Administrative Agent's
demand therefor, the Administrative Agent promptly shall notify Borrower and
Borrower shall pay such corresponding amount to the Administrative Agent. The
Administrative Agent also shall be entitled to recover from such

                                      -35-
<Page>

Lender interest on such corresponding amount in respect of each day from the
date such corresponding amount was made available by the Administrative Agent to
Borrower to the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (a) the Federal Funds Rate
for the first two days following a demand by the Administrative Agent and (b)
thereafter, the rate of interest then payable by Borrower with respect to Base
Rate Advances. Nothing herein shall be deemed to relieve any Lender from its
obligation to fulfill its share of the Commitment or to prejudice any rights
which the Administrative Agent or Borrower may have against any Lender as a
result of any default by such Lender hereunder.

                                      -36-
<Page>

                                    Article 3
                                PAYMENTS AND FEES

      3.1   PRINCIPAL AND INTEREST.

            (a) Interest shall be payable on the outstanding daily unpaid
principal amount of each Advance from the date thereof until payment in full is
made and shall accrue and be payable at the rates set forth or provided for
herein before and after default, before and after maturity, before and after
judgment, and before and after the commencement of any proceeding under any
Debtor Relief Law, with interest on overdue interest at the Default Rate to the
fullest extent permitted by applicable Laws.

            (b) Interest accrued on each Base Rate Loan on each Quarterly
Payment Date, and on the date of any prepayment of the Notes pursuant to Section
3.1(f) or Section 3.1(g), shall be due and payable on that day. EXCEPT as
otherwise provided in Section 3.8, the unpaid principal amount of each Base Rate
Loan shall bear interest at a fluctuating rate per annum equal to the Base Rate
PLUS the Base Rate Margin. Each change in the interest rate under this Section
3.1(b) due to a change in the Base Rate shall take effect simultaneously with
the corresponding change in the Base Rate.

            (c) Interest accrued on each LIBOR Loan which is for a term of three
months or less shall be due and payable on the last day of the related Interest
Period. Interest accrued on each other LIBOR Loan shall be due and payable on
the date which is three months after the date such LIBOR Loan was made and on
the last day of the related Interest Period. EXCEPT as otherwise provided in
Sections 3.1(d) and 3.8, the unpaid principal amount of any LIBOR Loan shall
bear interest at a rate per annum equal to the LIBOR for that LIBOR Loan PLUS
the LIBOR Margin.

            (d) During the existence of a Default or Event of Default, the
Requisite Lenders may determine that any or all then outstanding LIBOR Loans
shall be converted to Base Rate Loans. Such conversion shall be effective upon
notice to Borrower from the Requisite Lenders (or from the Administrative Agent
on behalf of the Requisite Lenders) and shall continue so long as such Default
or Event of Default continues to exist.

            (e)   If not sooner paid, the principal Indebtedness evidenced by
the Notes shall be payable as follows:

                  (i) the principal amount of each LIBOR Loan shall be payable
      on the last day of the Interest Period for such Loan;

                  (ii) the amount, if any, by which the Outstanding Obligations
      at any time exceed the Commitment shall be payable immediately; and

                                      -37-
<Page>

                  (iii) the principal Indebtedness evidenced by the Notes shall
      in any event be payable on the Maturity Date.

            (f) Concurrently with the receipt by Borrower or any of its
Subsidiaries of any Net Cash Proceeds, Borrower shall prepay the Notes by an
amount equal to the amount of such Net Cash Proceeds.

            (g) The Notes may, at any time and from time to time, voluntarily be
paid or prepaid in whole or in part without premium or penalty, EXCEPT that with
respect to any voluntary prepayment under this Section, (i) any partial
prepayment shall be not less than $500,000 and in integral multiples of
$100,000, (ii) the Administrative Agent shall have received written notice of
any prepayment by 10:00 a.m. on the Business Day of such prepayment (which must
be a Business Day) in the case of a Base Rate Loan, and, in the case of a LIBOR
Loan, three Eurodollar Market Days before the date of prepayment, which notice
shall identify the date and amount of the prepayment and the Loans being
prepaid, (iii) each prepayment of principal shall be accompanied by payment of
interest accrued to the date of payment on the amount of principal paid and (iv)
any payment or prepayment of all or any part of any LIBOR Loan on a day other
than the last day of the applicable Interest Period shall be subject to Section
3.7(d).

      3.2   UPFRONT FEE. On the Effective Date, Borrower shall pay an upfront
fee to the Administrative Agent in an amount heretofore agreed upon in a letter
agreement with the Administrative Agent.

      3.3   ADMINISTRATIVE AGENCY FEES. Pursuant to a letter agreement of even
date herewith with the Administrative Agent, Borrower shall pay administrative
agency fees to the Administrative Agent on the dates and in the amounts
heretofore agreed upon, and shall also pay to the Administrative Agent a
periodic fee to reimburse it for the expenses of the Construction Consultant.

      3.4   COMMITMENT FEES. From the Effective Date, Borrower shall pay to the
Administrative Agent, for the ratable accounts of the Lenders according to their
Pro Rata Shares, an unused commitment fee equal to the then applicable
Commitment Fee Rate per annum TIMES the average daily amount by which (a) the
Commitment exceeds (b) the Outstanding Obligations. Unused commitment fees shall
be payable quarterly in arrears on each Quarterly Payment Date, on the date of
any termination of the Commitment, and on the Maturity Date.

      3.5   LETTER OF CREDIT FEES. With respect to each Letter of Credit,
Borrower shall pay the following fees:

            (a) concurrently with the issuance of each Letter of Credit, a
letter of credit issuance fee to the Issuing Lender for the sole account of the
Issuing Lender, in an amount set forth in a letter agreement between Borrower
and the Issuing Lender;

                                      -38-
<Page>

            (b) quarterly in arrears on each Quarterly Payment date, and upon
any termination of the Commitment, a letter of credit fee to the Administrative
Agent (for the ratable account of the Lenders in accordance with their Pro Rata
Shares) in an amount equal to the applicable Letter of Credit Fee Rate per annum
as of the date of such issuance TIMES the face amount of such Letter of Credit
for the period each Letter of Credit is outstanding during the calendar quarter
then ended; and

            (c) concurrently with each issuance, negotiation, drawing or
amendment of each Letter of Credit, to the Issuing Lender for the sole account
of the Issuing Lender, issuance, negotiation, drawing and amendment fees in the
amounts set forth from time to time as the Issuing Lender's customary schedule
of fees for such services.

      3.6   INCREASED COMMITMENT COSTS. If any Lender shall determine in good
faith that the introduction after the Effective Date of any applicable law,
rule, regulation or guideline regarding capital adequacy, or any change therein
or any change in the interpretation or administration thereof by any central
bank or other Governmental Agency charged with the interpretation or
administration thereof, or compliance by such Lender (or its LIBOR Office) or
any corporation controlling the Lender, with any request, guideline or directive
regarding capital adequacy (whether or not having the force of law) of any such
central bank or other authority, affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and (taking into consideration such Lender's or such
corporation's policies with respect to capital adequacy and such Lender's
desired return on capital) determines in good faith that the amount of such
capital is increased, or the rate of return on capital is reduced, as a
consequence of its obligations under this Agreement, then, upon demand of such
Lender, Borrower shall pay to such Lender, from time to time as specified in
good faith by such Lender, additional amounts sufficient to compensate such
Lender in light of such circumstances, to the extent reasonably allocable to
such obligations under this Agreement. Each Lender's determination of such
amounts shall be conclusive in the absence of manifest error.

      3.7   LIBOR COSTS AND RELATED MATTERS.

            (a) If, after the date hereof, the existence or occurrence of any
Special LIBOR Circumstance:

                  (1) shall subject any Lender or its LIBOR Office to any tax,
      duty or other charge or cost with respect to any LIBOR Advance, any of its
      Notes evidencing LIBOR Loans or its obligation to make LIBOR Advances, or
      shall change the basis of taxation of payments to any Lender attributable
      to the principal of or interest on any LIBOR Advance or any other amounts
      due under this Agreement in respect of any LIBOR Advance, any of its Notes
      evidencing LIBOR Loans or its obligation to make LIBOR Advances,
      EXCLUDING, in the case of each Lender, the Administrative Agent and each
      Eligible Assignee, and any Affiliate or LIBOR Office thereof, (i) taxes

                                      -39-
<Page>

      imposed on or measured in whole or in part by its overall net income,
      gross income or gross receipts or capital and franchise taxes imposed on
      it, by (A) any jurisdiction (or political subdivision thereof) in which it
      is organized or maintains its principal office or LIBOR Office or (B) any
      jurisdiction (or political subdivision thereof) in which it is "doing
      business" (unless it would not be doing business in such jurisdiction (or
      political subdivision thereof) absent the transactions contemplated
      hereby), (ii) any withholding taxes or other taxes based on gross income
      imposed by the United States of America (other than withholding taxes and
      taxes based on gross income resulting solely from or attributable to any
      change in any law, rule or regulation or any change in the interpretation
      or administration of any law, rule or regulation by any Governmental
      Agency) or (iii) any withholding taxes or other taxes based on gross
      income imposed by the United States of America for any period with respect
      to which it has failed to provide Borrower with the appropriate form or
      forms required by Section 11.21, to the extent such forms are then
      required by applicable Laws;

                  (2) shall impose, modify or deem applicable any reserve not
      applicable or deemed applicable on the date hereof (INCLUDING, without
      limitation, any reserve imposed by the Board of Governors of the Federal
      Reserve System, BUT EXCLUDING the Reserve Percentage taken into account in
      calculating the LIBOR), special deposit, capital or similar requirements
      against assets of, deposits with or for the account of, or credit extended
      by, any Lender or its LIBOR Office; or

                  (3) shall impose on any Lender or its LIBOR Office or the
      Designated LIBOR Market any other condition affecting any LIBOR Advance,
      any of its Notes evidencing LIBOR Loans, its obligation to make LIBOR
      Advances or this Agreement, or shall otherwise affect any of the same;

      and the result of any of the foregoing, as determined in good faith by
      such Lender, increases the cost to such Lender or its LIBOR Office of
      making or maintaining any LIBOR Advance or in respect of any LIBOR
      Advance, any of its Notes evidencing LIBOR Loans or its obligation to make
      LIBOR Advances or reduces the amount of any sum received or receivable by
      such Lender or its LIBOR Office with respect to any LIBOR Advance, any of
      its Notes evidencing LIBOR Loans or its obligation to make LIBOR Advances
      (assuming such Lender's LIBOR Office had funded 100% of its LIBOR Advance
      in the Designated LIBOR Market), then, within five Business Days after
      demand by such Lender (with a copy to the Administrative Agent), Borrower
      shall pay to such Lender such additional amount or amounts as will
      compensate such Lender for such increased cost or reduction (determined as
      though such Lender's LIBOR Office had funded 100% of its LIBOR Advance in
      the Designated LIBOR Market). Borrower hereby indemnifies each Lender
      against, and agrees to hold each Lender harmless from and reimburse such
      Lender within ten (10) Business Days after demand for (without
      duplication) all costs, expenses, claims, penalties, liabilities, losses,
      reasonable legal fees and damages incurred or sustained by each Lender in
      connection with this Agreement, or any of the rights, obligations or
      transactions

                                      -40-
<Page>

      provided for or contemplated herein, as a direct result of the existence
      or occurrence of any Special LIBOR Circumstance. A statement of any Lender
      claiming compensation under this subsection and setting forth in
      reasonable detail the additional amount or amounts to be paid to it
      hereunder shall be conclusive in the absence of manifest error. Each
      Lender agrees to promptly notify Borrower of any event of which it has
      actual knowledge, occurring after the Effective Date, which will entitle
      such Lender to compensation pursuant to this Section, and agrees to
      designate a different LIBOR Office if such designation will avoid the need
      for or reduce the amount of such compensation and will not, in the good
      faith judgment of such Lender, otherwise be materially disadvantageous to
      such Lender. If any Lender claims compensation under this Section,
      Borrower may at any time, upon at least four (4) Eurodollar Market Days'
      prior notice to the Administrative Agent and such Lender and upon payment
      in full of the amounts provided for in this Section through the date of
      such payment PLUS any prepayment fee required by Section 3.7(d), pay in
      full the affected LIBOR Advances of such Lender or request that such LIBOR
      Advances be converted to Base Rate Advances.

            (b) If, after the date hereof, the existence or occurrence of any
Special LIBOR Circumstance shall make it unlawful or impossible for such Lender
or its LIBOR Office to make, maintain or fund its portion of any LIBOR Loan, or
materially restrict the authority of such Lender to purchase or sell, or to take
deposits of, Dollars in the Designated LIBOR Market, or to determine or charge
interest rates based upon the LIBOR, and such Lender shall so notify the
Administrative Agent, and if the Administrative Agent reasonably determines that
the Special LIBOR Circumstances have broad applicability to Lenders in the
market for syndicated loans of the general type described in this Agreement,
then the affected Lender's obligation to make LIBOR Advances shall be suspended
for the duration of such illegality or impossibility and the Administrative
Agent forthwith shall give notice thereof to the other Lenders and Borrower.
Upon receipt of such notice, the outstanding principal amount of such Lender's
LIBOR Advances, together with accrued interest thereon, automatically shall be
converted to Base Rate Advances with Interest Periods corresponding to the LIBOR
Loans of which such LIBOR Advances were a part on either (1) the last day of the
Interest Period(s) applicable to such LIBOR Advances if such Lender may lawfully
continue to maintain and fund such LIBOR Advances to such day(s) or (2)
immediately if such Lender may not lawfully continue to fund and maintain such
LIBOR Advances to such day(s), PROVIDED that in such event the conversion shall
not be subject to payment of a prepayment fee under Section 3.7(d). Each Lender
agrees to promptly notify Borrower of any event of which it has actual
knowledge, occurring after the Effective Date, which will cause that Lender to
notify the Administrative Agent under this Section 3.7(b), and agrees to
designate a different LIBOR Office if such designation will avoid the need for
such notice and will not, in the good faith judgment of such Lender, otherwise
be materially disadvantageous to such Lender. In the event that any Lender is
unable, for the reasons set forth above, to make, maintain or fund its portion
of any LIBOR Loan, such Lender shall fund such amount as a Base Rate Advance for
the same period of time, and such amount shall be treated in all respects as a
Base Rate Advance. Any Lender whose obligation to make LIBOR Advances

                                      -41-
<Page>

has been suspended under this Section 3.7(b) shall promptly notify the
Administrative Agent and Borrower of the cessation of the Special LIBOR
Circumstance which gave rise to such suspension.

            (c) If, with respect to any proposed LIBOR Loan:

                  (1) the Administrative Agent reasonably determines that, by
      reason of circumstances affecting the Designated LIBOR Market generally
      that are beyond the reasonable control of the Lenders, deposits in Dollars
      (in the applicable amounts) are not being offered to any Lender in the
      Designated LIBOR Market for the applicable Interest Period; or

                  (2) the Requisite Lenders advise the Administrative Agent that
      the LIBOR as determined by the Administrative Agent (i) does not represent
      the effective pricing to such Lenders for deposits in Dollars in the
      Designated LIBOR Market in the relevant amount for the applicable Interest
      Period, or (ii) will not adequately and fairly reflect the cost to such
      Lenders of making the applicable LIBOR Advances;

      then the Administrative Agent forthwith shall give notice thereof to
      Borrower and the Lenders, whereupon until the Administrative Agent
      notifies Borrower that the circumstances giving rise to such suspension no
      longer exist, the obligation of the Lenders to make any future LIBOR
      Advances shall be suspended. If at the time of such notice there is then
      pending a Request for Loan that specifies a LIBOR Loan, such Request for
      Loan shall be deemed to specify a Base Rate Loan.

            (d) Upon payment or prepayment of any LIBOR Advance (OTHER THAN as
the result of a conversion required under Section 3.7(b)), on a day other than
the last day in the applicable Interest Period (whether voluntarily,
involuntarily, by reason of acceleration, or otherwise), or upon the failure of
Borrower (for a reason other than the failure of a Lender to make an Advance) to
borrow on the date or in the amount specified for a LIBOR Loan in any Request
for Loan, Borrower shall pay to the appropriate Lender within ten (10) Business
Days after demand a prepayment fee or failure to borrow fee, as the case may be
(determined as though 100% of the LIBOR Advance had been funded in the
Designated LIBOR Market) equal to the SUM of:

                  (1) the principal amount of the LIBOR Advance prepaid or not
      borrowed, as the case may be, TIMES the number of days between the date of
      prepayment or failure to borrow, as applicable, and the last day in the
      applicable Interest Period, DIVIDED BY 360, TIMES the applicable Interest
      Differential (PROVIDED that the product of the foregoing formula must be a
      positive number); PLUS

                  (2) all reasonable out-of-pocket expenses incurred by the
      Lender reasonably attributable to such payment, prepayment or failure to
      borrow.

                                      -42-
<Page>

      Each Lender's determination of the amount of any prepayment fee payable
      under this Section 3.7(d) shall be conclusive in the absence of manifest
      error.

      3.8   LATE PAYMENTS. If any Event of Default occurs and remains
continuing, the Loans shall thereafter bear interest, to the fullest extent
permitted by applicable Laws at a fluctuating interest rate per annum at all
times equal to 2% in excess of the rate of interest otherwise payable. Accrued
and unpaid interest on past due amounts (INCLUDING, without limitation, interest
on past due interest) shall be compounded monthly, on the last day of each
calendar month, to the fullest extent permitted by applicable Laws.

      3.9   COMPUTATION OF INTEREST AND FEES. Computation of interest on Base
Rate Loans and all fees under this Agreement shall be calculated on the basis of
a year of 365 or 366 days, as the case may be, and the actual number of days
elapsed; computation of interest on LIBOR Loans shall be calculated on the basis
of a year of 360 days and the actual number of days elapsed. Borrower
acknowledges that such latter calculation method will result in a higher yield
to the Lenders than a method based on a year of 365 or 366 days. Interest shall
accrue on each Loan for the day on which the Loan is made; interest shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid. Any Loan that is repaid on the same day on which it is made
shall bear interest for one day.

      3.10  NON-BUSINESS DAYS. If any payment to be made by Borrower or any
other Obligor under any Loan Document shall come due on a day other than a
Business Day, payment shall instead be considered due on the next succeeding
Business Day and the extension of time shall be reflected in computing interest
and fees.

      3.11  MANNER AND TREATMENT OF PAYMENTS.

            (a) Each payment hereunder or on the Notes or under any other Loan
Document shall be made to the Administrative Agent, at the Administrative
Agent's Office, for the account of each of the Lenders or the Administrative
Agent, as the case may be, in immediately available funds not later than 12:00
p.m. on the day of payment (which must be a Business Day). All payments received
after 12:00 p.m. on any Business Day, shall be deemed received on the next
succeeding Business Day. The amount of all payments received by the
Administrative Agent for the account of each Lender shall be immediately paid by
the Administrative Agent to the applicable Lender in immediately available funds
and, if such payment was received by the Administrative Agent by 12:00 p.m. on a
Business Day and not so made available to the account of a Lender on that
Business Day, the Administrative Agent shall reimburse that Lender for the cost
to such Lender of funding the amount of such payment at the Federal Funds Rate.
All payments shall be made in lawful money of the United States of America.

            (b) Each payment or prepayment on account of any Loan shall be
applied pro rata according to the outstanding Advances made by each Lender
comprising such Loan.

                                      -43-
<Page>

            (c) Each Lender shall use its best efforts to keep a record of
Advances made by it and payments received by it with respect to each of its
Notes and, subject to Section 10.6(g), such record shall, as against Borrower,
be presumptive evidence of the amounts owing. Notwithstanding the foregoing
sentence, no Lender shall be liable to any Obligor for any failure to keep such
a record.

            (d) Each payment of any amount payable by Borrower or any other
Obligor under this Agreement or any other Loan Document shall be made free and
clear of, and without reduction by reason of, any taxes, assessments or other
charges imposed by any Governmental Agency, central bank or comparable
authority, EXCLUDING, in the case of each Lender, the Administrative Agent and
each Eligible Assignee, and any Affiliate or LIBOR Office thereof, (i) taxes
imposed on or measured in whole or in part by its overall net income, gross
income or gross receipts or capital and franchise taxes imposed on it, (ii) any
withholding taxes or other taxes based on gross income imposed by the United
States of America (other than withholding taxes and taxes based on gross income
resulting solely from or attributable to any change in any law, rule or
regulation or any change in the interpretation or administration of any law,
rule or regulation by any Governmental Agency) or (iii) any withholding taxes or
other taxes based on gross income imposed by the United States of America for
any period with respect to which it has failed to provide Borrower with the
appropriate form or forms required by Section 11.21, to the extent such forms
are then required by applicable Laws (all such non-excluded taxes, assessments
or other charges being hereinafter referred to as "Taxes"). To the extent that
Borrower is obligated by applicable Laws to make any deduction or withholding on
account of Taxes from any amount payable to any Lender under this Agreement,
Borrower shall (i) make such deduction or withholding and pay the same to the
relevant Governmental Agency and (ii) pay such additional amount to that Lender
as is necessary to result in that Lender's receiving a net after-Tax amount
equal to the amount to which that Lender would have been entitled under this
Agreement absent such deduction or withholding. If and when receipt of such
payment results in an excess payment or credit to that Lender on account of such
Taxes, that Lender shall promptly refund such excess to Borrower.

      3.12 FUNDING SOURCES. Nothing in this Agreement shall be deemed to
obligate any Lender to obtain the funds for any Loan or Advance in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan or Advance in any
particular place or manner.

      3.13 FAILURE TO CHARGE NOT SUBSEQUENT WAIVER. Any decision by the
Administrative Agent or any Lender not to require payment of any interest
(INCLUDING interest arising under Section 3.8), fee, cost or other amount
payable under any Loan Document, or to calculate any amount payable by a
particular method, on any occasion shall in no way limit or be deemed a waiver
of the Administrative Agent's or such Lender's right to require full payment of
any interest (INCLUDING interest arising under Section 3.8), fee, cost or other
amount payable under any Loan Document, or to calculate an amount payable by
another method that is not inconsistent with this Agreement, on any other or
subsequent occasion.

                                      -44-
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      3.14 ADMINISTRATIVE AGENT'S RIGHT TO ASSUME PAYMENTS WILL BE MADE BY
BORROWER. Unless the Administrative Agent shall have been notified by Borrower
prior to the date on which any payment to be made by Borrower hereunder is due
that Borrower does not intend to remit such payment, the Administrative Agent
may, in its discretion, assume that Borrower has remitted such payment when so
due and the Administrative Agent may, in its discretion and in reliance upon
such assumption, make available to each Lender on such payment date an amount
equal to such Lender's share of such assumed payment. If Borrower has not in
fact remitted such payment to the Administrative Agent, each Lender shall
forthwith on demand repay to the Administrative Agent the amount of such assumed
payment made available to such Lender, together with interest thereon in respect
of each day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the
Administrative Agent at the Federal Funds Rate.

      3.15 FEE DETERMINATION DETAIL. The Administrative Agent and each Lender
shall provide reasonable detail to Borrower regarding the manner in which the
amount of any payment of fees or costs to the Administrative Agent and the
Lenders, or that Lender, under Article 3 has been determined, concurrently with
demand for such payment.

      3.16 SURVIVAL. All of Borrower's obligations under Sections 3.5, 3.6 and
11.22 shall survive for ninety days following the date on which the Commitment
is terminated, and all Loans hereunder are fully paid.

                                      -45-
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                                    Article 4
                         REPRESENTATIONS AND WARRANTIES

            Borrower represents and warrants to the Creditors that:

      4.1   EXISTENCE AND QUALIFICATION; POWER; COMPLIANCE WITH LAWS. Borrower
is a corporation duly formed, validly existing and in good standing under the
Laws of Delaware (or, in the event any assignment of the type described in the
second sentence of Section 11.8(a) is made, is a limited liability company duly
formed, validly existing and in good standing under the Laws of the jurisdiction
of its formation). As of the Effective Date, Sportsystems has the ownership
interests in Borrower described in Schedule 4.1, is duly formed and in good
standing under the laws of its jurisdictions of formation. As of the Effective
Date, Sportsystems is the wholly-owned Subsidiary of Delaware North Companies,
Inc. Borrower and each other Obligor is duly qualified or registered to transact
business and is in good standing in each other jurisdiction in which the conduct
of its business or the ownership or leasing of its Properties makes such
qualification or registration necessary, EXCEPT where the failure so to qualify
or register and to be in good standing may not reasonably be expected to have a
Material Adverse Effect. Borrower and each other Obligor has all requisite
corporate or other organizational power and authority to conduct its business,
to own and lease its Properties and to execute and deliver each Loan Document to
which it is a party and to perform its Obligations. All outstanding shares of
the capital stock of Borrower and each other Obligor are duly authorized and
validly issued, fully paid and non-assessable, and no holder thereof has any
enforceable right of rescission under any applicable state or federal securities
Laws. Borrower and each Subsidiary is in compliance with all Laws and other
legal requirements applicable to its business, has obtained all authorizations,
consents, approvals, orders, licenses and permits from, and has accomplished all
filings, registrations and qualifications with, or obtained exemptions from any
of the foregoing from, any Governmental Agency that are necessary for the
transaction of its business, EXCEPT where the failure so to comply, file,
register, qualify or obtain exemptions may not reasonably be expected to have a
Material Adverse Effect.

      4.2   AUTHORITY; COMPLIANCE WITH OTHER AGREEMENTS AND INSTRUMENTS AND
GOVERNMENT REGULATIONS. The execution, delivery and performance of the Loan
Documents by Borrower and each Obligor, have been duly authorized by all
necessary corporate action, and do not and will not:

            (a) Require any consent or approval not heretofore obtained of any
director, stockholder, security holder or (in the case of any Creditor except
where the failure to obtain any such creditor's consent may not reasonably be
expected to have any Material Adverse Effect) any creditor of such Obligor;

            (b) Violate or conflict with any provision of such Obligor's
articles of incorporation or bylaws;

                                      -46-
<Page>

            (c) Except to the extent contemplated by the Loan Documents, result
in or require the creation or imposition of any Lien or Right of Others upon or
with respect to any Property now owned or leased or hereafter acquired by such
Obligor;

            (d) Violate any Requirement of Law applicable to such Obligor, in
any material respect, or in any event require any consent of the West Virginia
Lottery Commission, West Virginia Racing Commission or any other Regulatory
Board not heretofore obtained;

            (e) Result in a breach of or constitute a default under, or cause or
permit the acceleration of any obligation owed under, any indenture or loan or
credit agreement or any other Contractual Obligation involving Property or
obligations in excess of $1,000,000 to which Borrower or any of its Subsidiaries
is a party or by which Borrower or any of its Subsidiaries or any of its
Property is bound or affected;

and neither Borrower, any of its Subsidiaries nor any other Obligor is in
violation of, or default under, any Requirement of Law or Contractual
Obligation, or any indenture, loan or credit agreement described in Section
4.2(e), in any respect that may reasonably be expected to have a Material
Adverse Effect.

      4.3   NO GOVERNMENTAL APPROVALS REQUIRED. EXCEPT as set forth in Schedule
4.3 or previously obtained or made, no material authorization, consent,
approval, order, license or permit from, or material filing, registration or
qualification with, any Governmental Agency is or will be required to authorize
or permit under applicable Laws the execution, delivery and performance by
Borrower, any other Obligor of the Loan Documents to which it is a party. All
authorizations from, or filings with, any Governmental Agency described in
Schedule 4.3 will be accomplished as of the Effective Date or such other date as
is specified in Schedule 4.3.

      4.4   SUBSIDIARIES. As of the Effective Date, Borrower does not have any
Subsidiaries which are not described on Schedule 4.4 and Borrower does not own
any capital stock, equity interest or debt security which is convertible, or
exchangeable, for capital stock or equity interests in any Person. Each such
Subsidiary is a corporation duly formed, validly existing and in good standing
under the Laws of its state of formation, is duly qualified or registered to
transact business and is in good standing in each other jurisdiction in which
the conduct of its business or the ownership or leasing of its Properties makes
such qualification or registration necessary, EXCEPT where the failure so to
qualify or register and to be in good standing may not reasonably be expected to
have Material Adverse Effect.

      4.5   FINANCIAL STATEMENTS. Borrower has furnished the audited
consolidated financial statements of Borrower and its Subsidiaries for the
Fiscal Year ended December 31, 2000 and the unaudited consolidated financial
statements of Borrower and its Subsidiaries for the nine month period ended
September 30, 2001, to the Administrative Agent and the Lenders, which financial
statements fairly present the financial condition, results of operations

                                      -47-
<Page>

and changes in financial position of Borrower and its Subsidiaries as of such
date and for such period in conformity with Generally Accepted Accounting
Principles, consistently applied.

      4.6   NO MATERIAL ADVERSE EFFECTS. As of the Effective Date, no
circumstance or event has occurred that constitutes a Material Adverse Effect
since December 31, 2000.

      4.7   TITLE TO PROPERTY. Borrower and its Subsidiaries have valid title to
the Property reflected in the financial statements described in Section 4.5,
other than immaterial items of Property and Property subsequently sold or
disposed of in the ordinary course of business, free and clear of all Liens and
Rights of Others, OTHER THAN Permitted Encumbrances, Permitted Rights of Others
and Liens or Rights of Others described in Schedule 6.8 or permitted by Section
6.8.

      4.8   INTANGIBLE ASSETS. Each of Borrower and its Subsidiaries owns, or
possesses the right to use to the extent necessary in its respective business,
all material trademarks, trade names, copyrights, patents, patent rights,
computer software, licenses and other Intangible Assets which are used in the
conduct of its business as now operated, and no such Intangible Asset, to the
best knowledge of Borrower, conflicts with the valid trademark, trade name,
copyright, patent, patent right or Intangible Asset of any other Person to the
extent that such conflict may reasonably be expected to have a Material Adverse
Effect. Each registered patent, trademark or copyright owned by Borrower and its
Subsidiaries, or as to which any of them is a licensee, is described on Schedule
4.8.

      4.9   PUBLIC UTILITY HOLDING COMPANY ACT. Neither Borrower nor any of its
Subsidiaries is a "holding company", or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

      4.10   LITIGATION. There are no actions, suits, proceedings or
investigations pending as to which Borrower or any of its Subsidiaries have been
served or have received notice or, to the best knowledge of Borrower, threatened
against or affecting Borrower or any of its Subsidiaries or any Property of any
of them (including the Real Property) before any Governmental Agency, which may
reasonably be expected to have a monetary impact which is in excess of
$1,000,000, and no such action, suit, proceeding or investigation may reasonably
be expected to have a Material Adverse Effect.

      4.11  BINDING OBLIGATIONS. Each of the Loan Documents to which Borrower,
each other Obligor is a party will, when executed and delivered by such Person,
constitute the legal, valid and binding obligation of such Person, enforceable
against such Person in accordance with its terms, EXCEPT as enforcement may be
limited by Debtor Relief Laws, Applicable Regulations or equitable principles
relating to the granting of specific performance and other equitable remedies as
a matter of judicial discretion.

                                      -48-
<Page>

      4.12  NO DEFAULT. No event has occurred and is continuing that is a
Default or Event of Default.

      4.13  ERISA.

            (a) With respect to each Pension Plan:

                  (i) such Pension Plan complies in all material respects with
      ERISA and any other applicable Laws to the extent that noncompliance may
      reasonably be expected to have a Material Adverse Effect;

                  (ii) such Pension Plan has not incurred any "accumulated
      funding deficiency" (as defined in Section 302 of ERISA) that may
      reasonably be expected to have a Material Adverse Effect;

                  (iii) no "reportable event" (as defined in Section 4043 of
      ERISA) has occurred that may reasonably be expected to have a Material
      Adverse Effect; and

                  (iv) neither Borrower nor any of its Subsidiaries has engaged
      in any non-exempt "prohibited transaction" (as defined in Section 4975 of
      the Code) that may reasonably be expected to have a Material Adverse
      Effect.

            (b) Neither Borrower nor any of its Subsidiaries has incurred or
expects to incur any withdrawal liability to any Multiemployer Plan that may
reasonably be expected to have a Material Adverse Effect.

      4.14  REGULATIONS T, U AND X; INVESTMENT COMPANY ACT. No part of the
proceeds of any Loan hereunder will be used to purchase or carry, or to extend
credit to others for the purpose of purchasing or carrying, any Margin Stock in
violation of Regulations T, U and X. Neither Borrower nor any of its
Subsidiaries is or is required to be registered as an "investment company" under
the Investment Company Act of 1940.

      4.15  DISCLOSURE. No statement made by Borrower or any of its Affiliates
to the Administrative Agent or any Lender in connection with this Agreement, or
in connection with any Loan, as of the date thereof contained any untrue
statement of a material fact or omitted a material fact necessary to make the
statement made not misleading in light of all the circumstances existing at the
date the statement was made.

      4.16  TAX LIABILITY. Borrower and its Subsidiaries have filed all tax
returns which are required to be filed, and have paid, or made provision for the
payment of, all taxes with respect to the periods, Property or transactions
covered by said returns, or pursuant to any assessment received by Borrower or
any of its Subsidiaries, EXCEPT (a) such taxes, if any, as are being contested
in good faith by appropriate proceedings and as to which adequate reserves have
been established and maintained and (b) immaterial taxes so long as no material

                                      -49-
<Page>

item or portion of Property of Borrower or any of its Subsidiaries is in
jeopardy of being seized, levied upon or forfeited.

      4.17 PROJECTIONS. As of the Effective Date, to the best knowledge of
Borrower, the assumptions set forth in the Projections are reasonable and
consistent with each other and with all facts known to Borrower, and the
Projections are reasonably based on such assumptions. Nothing in this Section
shall be construed as a representation or covenant that the Projections in fact
will be achieved.

      4.18 HAZARDOUS MATERIALS. Except as described in Schedule 4.18 or except
as would not individually or in the aggregate have a Material Adverse Effect,
(a) to the best knowledge of Borrower, none of Borrower nor any of its
Subsidiaries nor any of their affiliated predecessors in interest at any time
has disposed of, discharged, released or threatened the release of any Hazardous
Materials on, from or under any Real Property in violation of any Hazardous
Materials Law, (b) to the best knowledge of Borrower, no condition exists that
violates any Hazardous Material Law affecting any Real Property, (c) to the best
knowledge of Borrower, no Real Property nor any portion thereof is or has been
utilized by Borrower or any of its Subsidiaries as a site for the manufacture of
any Hazardous Materials and (d) to the extent that any Hazardous Materials are
used, generated or stored by Borrower or any of its Subsidiaries on any Real
Property, or transported to or from any Real Property, such use, generation,
storage and transportation are in compliance in all material respects with all
Hazardous Materials Laws.

      4.19 APPLICABLE REGULATIONS. Borrower and its Subsidiaries are in
compliance in all material respects with all Applicable Regulations that are
applicable to them.

      4.20 SECURITY INTERESTS. Upon the execution and delivery thereof, each of
the Borrower Security Agreement and the Subsidiary Security Agreement will
create valid security interests in the Collateral described therein securing the
Obligations of the parties thereto, and all action necessary to perfect the
security interests so created, other than filing of the UCC-1 financing
statements delivered to the Administrative Agent pursuant to Section 8.1 with
the appropriate Governmental Agency, shall have been taken and completed to the
fullest extent that such Liens may be perfected by filing. Upon the making of
such filings, the security interests granted to the Administrative Agent by the
Security Agreement will be perfected and of first priority, subject only to the
matters disclosed on Schedule 6.8 or permitted by Section 6.8, to the fullest
extent that such Liens may be perfected by filing.

      4.21 SOLVENCY. After giving effect to this Agreement and the other Loan
Documents (including after giving effect to Advances under this Agreement as of
the Effective Date), Borrower and each Subsidiary Guarantor is and shall be
Solvent.

      4.22 COLLATERAL AND GUARANTEES. The Obligations shall be guaranteed by the
Subsidiary Guarantors and secured by the Collateral pursuant to the Collateral
Documents.

                                      -50-
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      4.23 SENIOR INDEBTEDNESS. The Obligations shall be and hereby are
designated as "Senior Indebtedness" with respect to all Subordinated Obligations
and all payments with respect to any Subordinated Obligations shall be subject
to Section 6.1.

                                      -51-
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                                    Article 5
                              AFFIRMATIVE COVENANTS
                           (OTHER THAN INFORMATION AND
                             REPORTING REQUIREMENTS)

            So long as any Advance remains unpaid, any Letter of Credit remains
outstanding or any other Obligation remains unpaid or unperformed, or any
portion of the Commitment remains in force, Borrower shall cause each of its
Subsidiaries and each other Obligor to, unless the Administrative Agent (with
the written approval of the Requisite Lenders) otherwise consents:

      5.1 PAYMENT OF TAXES AND OTHER POTENTIAL LIENS. Pay and discharge promptly
all taxes, assessments and governmental charges or levies imposed upon any of
them, upon their respective Property or any part thereof and upon their
respective income or profits or any part thereof, EXCEPT that Borrower and its
Subsidiaries shall not be required to pay or cause to be paid (a) any tax,
assessment, charge or levy that is not yet past due, or is being contested in
good faith by appropriate proceedings so long as the relevant entity has
established and maintains adequate reserves for the payment of the same or (b)
any immaterial tax so long as no material item or portion of Property of
Borrower or any of its Subsidiaries is in jeopardy of being seized, levied upon
or forfeited.

      5.2 PRESERVATION OF EXISTENCE. Preserve and maintain their respective
existences in the jurisdiction of their formation and all material
authorizations, rights, franchises, privileges, consents, approvals, orders,
licenses, permits, or registrations from any Governmental Agency that are
necessary for the transaction of their respective business, EXCEPT where the
failure to so preserve and maintain the existence of any Subsidiary or such
authorizations would not constitute a Material Adverse Effect; and qualify and
remain qualified to transact business in each jurisdiction in which such
qualification is necessary in view of their respective business or the ownership
or leasing of their respective Properties EXCEPT where the failure to so qualify
or remain qualified would not constitute a Material Adverse Effect.

      5.3 MAINTENANCE OF PROPERTIES. Maintain, preserve and protect all of their
respective depreciable Properties in good order and condition, subject to wear
and tear in the ordinary course of business, and not permit any waste or
unreasonable deterioration of their respective Properties, EXCEPT that the
failure to maintain, preserve and protect a particular item of depreciable
Property that is not of significant value, either intrinsically or to the
operations of Borrower and its Subsidiaries, taken as a whole, shall not
constitute a violation of this covenant.

      5.4 MAINTENANCE OF INSURANCE. Maintain liability, casualty and other
insurance (subject to customary deductibles and retentions) with responsible
insurance companies in such amounts and against such risks as is carried by
responsible companies engaged in similar

                                      -52-
<Page>

businesses and owning similar assets in the general areas in which Borrower and
its Subsidiaries operate.

      5.5 COMPLIANCE WITH LAWS. Comply, within the time period, if any, given
for such compliance by the relevant Governmental Agency or Agencies with
enforcement authority, with all Requirements of Law noncompliance with which
constitutes a Material Adverse Effect, EXCEPT that Borrower and its Subsidiaries
need not comply with a Requirement of Law then being contested in good faith by
appropriate proceedings.

      5.6 INSPECTION RIGHTS Borrower shall permit the Administrative Agent or
any Lender, or any authorized employee, agent or representative thereof, to
examine, audit and make copies and abstracts from the records and books of
account of, and to visit and inspect the Properties of, Borrower and its
Subsidiaries and to discuss the affairs, finances and accounts of Borrower and
its Subsidiaries with any of their officers, key employees or accountants. All
rights of the Administrative Agent and the Lenders under this Section may be
exercised upon reasonable advance notice and at any time during regular business
hours and as often as reasonably requested (but not so as to materially
interfere with the business of Borrower or any of its Subsidiaries). The costs
of all such monitoring, examining, auditing and inspection by and at the request
of the Administrative Agent or any Lender shall be borne by the Borrower,
PROVIDED that when no Default or Event of Default exists, Borrower shall not be
obligated to reimburse the Administrative Agent or the Lenders for the costs of
more than one examination, inspection or audit during any calendar year.

      5.7 KEEPING OF RECORDS AND BOOKS OF ACCOUNT. Keep adequate records and
books of account reflecting all financial transactions in conformity with
Generally Accepted Accounting Principles, consistently applied, and in material
conformity with all applicable requirements of any Governmental Agency having
regulatory jurisdiction over Borrower or any of its Subsidiaries.

      5.8 COMPLIANCE WITH AGREEMENTS. Promptly and fully comply with all
Contractual Obligations under all material agreements, indentures, leases and/or
instruments to which any one or more of them is a party, whether such material
agreements, indentures, leases or instruments are with a Lender or another
Person, EXCEPT for any such Contractual Obligations (a) the performance of which
would cause a Default or (b) then being contested by any of them in good faith
by appropriate proceedings or if the failure to comply with such agreements,
indentures, leases or instruments does not constitute a Material Adverse Effect.

      5.9 USE OF PROCEEDS. Use the proceeds of the Loans (a) to finance the
purchase by Borrower of additional personal property (including without
limitation gaming equipment and gaming-related furniture, fixtures and
equipment) and the costs of related construction and improvement in connection
with the Expansion Project and (b) for other working capital and other general
corporate purposes.

                                      -53-
<Page>

      5.10  HAZARDOUS MATERIALS LAWS. Keep and maintain all Real Property and
each portion thereof in compliance in all material respects with all applicable
Hazardous Materials Laws and promptly notify the Administrative Agent in writing
(attaching a copy of any pertinent written material) of (a) any and all material
enforcement, cleanup, removal or other governmental or regulatory actions
instituted, completed or threatened in writing by a Governmental Agency pursuant
to any applicable Hazardous Materials Laws with regard to the Real Property, (b)
any and all material claims made or threatened in writing by any Person against
Borrower or any of its Subsidiaries relating to damage, contribution, cost
recovery, compensation, loss or injury resulting from any Hazardous Materials
with regard to the Real Property, and (c) any Senior Officer of Borrower
receives written notice or other clear evidence of any material occurrence or
condition on any real property adjoining or in the vicinity of such Real
Property and affecting the Real Property that may reasonably be expected to
cause such Real Property or any part thereof to be subject to any restrictions
on the ownership, occupancy, transferability or use of such Real Property under
any applicable Hazardous Materials Laws.

      5.11  COMPLETION OF EXPANSION PROJECT. Proceed diligently and without
material interruption to cause the Completion Date to occur in all material
respects in accordance with the Plans, the Budget and the Timetable, and in any
event to cause the Completion Date to occur by December 31, 2003.

      5.12  CONSTRUCTION MATTERS. Without limitation on other provisions of this
Agreement:

            (a) provide the Construction Consultant any and all requested access
      to the Expansion Project upon reasonable prior notice;

            (b) cooperate in the preparation of each Construction Progress
      Report;

            (c) maintain a full set of working drawings at the construction
      office for the Expansion Project for review by the Construction
      Consultant;

            (d) within 15 days following any request by the Administrative
      Agent, deliver (i) then current Plans for the Expansion Project, (ii) then
      current lists of each material contractor, subcontractor and material
      supplier with respect to the Expansion Project and the dollar value and
      amounts paid with respect to the related contracts, and (iii) then current
      versions of the construction schedule for all uncompleted work on the
      Expansion Project and all executed contracts and subcontracts for such
      work, and (iv) any other information or materials reasonably requested by
      the Administrative Agent or the Construction Consultant; and

            (e) If requested by the Administrative Agent, promptly cause the
      Expansion Project's architect and general contractor to certify that the
      improvements

                                      -54-
<Page>

      constructed as of the date of any Construction Progress Report or the
      Completion Date conform to the Plans in all material respects.

      5.13 DELIVERY OF PLANS, BUDGET AND TIMETABLE. Deliver to Administrative
Agent a true, correct and complete copy of the Plans, the Budget and the
Timetable (each of which shall be in form and substance reasonably satisfactory
to the Administrative Agent) and appropriate licensure documentation from the
West Virginia Lottery Commission entitling Borrower to operate not fewer than
2100 gaming positions at Wheeling Downs on or prior to the date that Borrower
(or any of its Subsidiaries or other Obligors) makes Capital Expenditures
associated with the Expansion Project which, in aggregate, exceed $15,000,000.

                                      -55-
<Page>

                                    Article 6
                               NEGATIVE COVENANTS

            So long as any Advance remains unpaid, any Letter of Credit remains
outstanding or any other Obligation remains unpaid or unperformed, or any
portion of the Commitment remains in force, Borrower shall not, and each shall
not permit any of its Subsidiaries or any other Obligor to, unless the
Administrative Agent (with the written approval of the Requisite Lenders or, if
required by Section 11.2, of all of the Lenders) otherwise consents:

      6.1   PREPAYMENT OF INDEBTEDNESS.

            (a) Prepay any principal or interest on the Senior Unsecured Notes
      prior to the date when due, or make any payment or deposit with any Person
      that has the effect of providing for the satisfaction of the Senior
      Unsecured Notes prior to the date when due; EXCEPT THAT following the
      Completion Date Borrower may (and may permit its Subsidiaries or any other
      Obligor to), when no Default or Event of Default exists or would result
      therefrom, purchase Senior Unsecured Notes in an aggregate principal
      amount not to exceed $20,000,000, PROVIDED THAT Borrower shall not
      repurchase Senior Unsecured Notes except:

                  (i) to the extent that, giving PRO FORMA effect to the making
            of such repurchases as of the last day of the most recent Fiscal
            Quarter, the Leverage Ratio would not exceed 3.00:1.00; or

                  (ii) to the extent that such repurchases are made using Excess
            Cash; provided that such purchases from Excess Cash shall not exceed
            $5,000,000 in the aggregate unless and until Borrower has
            demonstrated to the reasonable satisfaction of the Administrative
            Agent that the aggregate amount of Excess Cash is in excess of
            $5,000,000.

            (b) Prepay any principal or interest on any other Indebtedness of
      Borrower or any of its Subsidiaries (other than the Obligations) prior to
      the date when due, or make any payment or deposit with any Person that has
      the effect of providing for the satisfaction of any such Indebtedness of
      Borrower or any of its Subsidiaries prior to the date when due, except
      where no Default or Event of Default exists or would result therefrom.

      6.2   PREPAYMENT OF CERTAIN OBLIGATIONS. Prepay any of the any amounts due
under the Administrative Services Agreement more than one month prior to the
date when due, or prepay any principal (INCLUDING sinking fund payments) or any
other amount with respect to any Subordinated Obligation, or purchase or redeem
any Subordinated Obligation EXCEPT

                                      -56-
<Page>

when no Default or Event of Default exists or would result therefrom, and then
only to the extent permitted by the applicable subordination provisions thereof.

      6.3 HOSTILE TENDER OFFERS. Make any offer to purchase or acquire, or
consummate a purchase or acquisition of, 5% or more of the capital stock of any
corporation or other business entity if the board of directors or management of
such corporation or business entity has notified Borrower or any of its
Subsidiaries that it opposes such offer or purchase.

      6.4 MERGERS, ACQUISITIONS, SALES OF ASSETS, ETC. Wind up, liquidate or
dissolve its affairs or enter into any transaction of merger or consolidation,
or convey, sell, lease or otherwise dispose of any of its property or assets in
a transaction which would constitute a Disposition, or enter into any
sale-leaseback transactions, or purchase or otherwise acquire (in one or a
series of related transactions) any substantial part of the property or assets
(other than purchases or other acquisitions of inventory, materials and
equipment in the ordinary course of business) of any Person (or agree to do any
of the foregoing at any future time), except that, (i) to the extent that no
Default or Event of Default exists or would result therefrom, and (ii) as a
result thereof, no Change of Control has occurred, Borrower and its Subsidiaries
may (a) make sales of inventory in the ordinary course of business, (b) sell or
otherwise dispose of obsolete or worn-out equipment or materials in the ordinary
course of business, and (c) make the Acquisitions contemplated by Section 6.16.

      6.5 DISTRIBUTIONS AND MANAGEMENT FEES. Make any Distribution, whether from
capital, income or otherwise, or pay any Management Fees or other amounts to the
direct or indirect owners of Borrower, in each case, whether in Cash or other
Property OTHER THAN:

            (a) Distributions from any Subsidiary of Borrower to Borrower;

            (b) Distributions payable solely in capital stock of Borrower of the
same class as that to which such Distributions are payable;

            (c) The WHX Entertainment Redemption;

            (e) other Distributions made when no Default or Event of Default
exists (i) made prior to the Completion Date in an aggregate amount not to
exceed $5,000,000 provided that the Requisite Lenders have consented thereto in
writing, and (ii) to its parent in an amount equal to the net cash proceeds
received by Borrower in connection with any issuance of its equity securities
(after transactional expenditures and the amount of taxes reasonably anticipated
by Borrower to be payable by Borrower in connection with such transactions);

            (f) Permitted Tax Distributions; and

            (g) Other Distributions made following the Completion Date and when
no Default or Event of Default exists or would result therefrom, PROVIDED that,
giving PRO FORMA

                                      -57-
<Page>

effect to the making of such Distribution as of the last day of the then most
recently ended Fiscal Quarter, Borrower is in PRO FORMA compliance with Section
6.14.

      6.6 ERISA. (a) At any time, permit any Pension Plan to: (i) engage in any
non-exempt "prohibited transaction" (as defined in Section 4975 of the Code);
(ii) fail to comply with ERISA or any other applicable Laws; (iii) incur any
material "accumulated funding deficiency" (as defined in Section 302 of ERISA);
or (iv) terminate in any manner, which, with respect to each event listed above,
may reasonably be expected to result in a Material Adverse Effect, or (b)
withdraw, completely or partially, from any Multiemployer Plan if to do so may
reasonably be expected to result in a Material Adverse Effect.

      6.7 CHANGE IN NATURE OF BUSINESS. Make any material change in the nature
of the business of Borrower and its Subsidiaries, taken as a whole or engage
(directly or indirectly) in any business other than the operation of the present
Wheeling Island racing, gaming and entertainment facilities, the Expansion
Project, and reasonably related businesses at the same general locations.

      6.8 LIENS AND NEGATIVE PLEDGES. Create, incur, assume or suffer to exist
any Lien or Negative Pledge upon or with respect to any property or assets (real
or personal, tangible or intangible) whether now owned or hereafter acquired, or
sell any such property or assets subject to an understanding or agreement,
contingent or otherwise, to repurchase such property or assets (including sales
of accounts receivable with recourse to Borrower or any of its Subsidiaries), or
assign any right to receive income or permit the filing of any financing
statement under the Uniform Commercial Code or any other similar notice of Lien
under any similar recording or notice statute, OTHER THAN:

            (a) Permitted Encumbrances;

            (b) Liens and Rights of Others disclosed on Schedule 6.8; and

            (c) Purchase money Liens securing Indebtedness permitted by Section
6.9(c)

      6.9   INDEBTEDNESS. Contract, create, incur, assume or suffer to exist any
Indebtedness, except:

            (a) Indebtedness incurred pursuant to this Agreement and the other
Loan Documents; and

            (b) Indebtedness outstanding on the Effective Date and described on
Schedule 6.9, without giving effect to any subsequent extension, renewal or
refinancing thereof except to the extent set forth on Schedule 6.9, provided
that the aggregate principal amount of the Indebtedness to be extended, renewed
or refinanced does not increase from that amount outstanding at the time of any
such extension, renewal or refinancing;

                                      -58-
<Page>

            (c) Purchase money Indebtedness, PROVIDED that the aggregate
principal amount of such Indebtedness which is incurred during the term of this
Agreement does not exceed $7,500,000; and

            (d) The Senior Unsecured Notes.

      6.10  CONTINGENT OBLIGATIONS. Guarantee or assume to agree to become
liable in any way, either directly or indirectly, for any additional
Indebtedness or liabilities of others except to endorse checks or drafts in the
ordinary course of business, or otherwise assume any Contingent Obligation.

      6.11  NEW SUBSIDIARIES. Permit Borrower or any of its Subsidiaries to
establish, create or acquire any Subsidiary without the consent of the
Administrative Agent and the Requisite Lenders, which consent shall not be
unreasonably withheld.

      6.12  TRANSACTIONS WITH AFFILIATES. Enter into any transaction or series
of related transactions, whether or not in the ordinary course of business, with
any Affiliate of Borrower or any of its Subsidiaries, other than in the ordinary
course of business and on terms and conditions substantially as favorable to
Borrower or such Subsidiary of Borrower as would reasonably be obtained at that
time in a comparable arm's-length transaction with a Person other than an
Affiliate, except for (a) Distributions and other amounts paid in accordance
with Section 6.5 and Investments permitted by Section 6.16(c), and (b) Payment
of amounts accrued following the Effective Date in accordance with the
Administrative Services Agreement in an aggregate amount not to exceed (i)
during any period of four Fiscal Quarters ending prior to the Completion Date,
the greater of $1,200,000 or 1.5% of the revenues of Borrower in such period
(but not any prepayments thereof).

      6.13  LEVERAGE RATIO. Permit the Leverage Ratio as of the last day of any
Fiscal Quarter described in the matrix set forth below, to exceed the ratio set
forth opposite that Fiscal Quarter:

                                      -59-
<Page>

<Table>
<Caption>

                  Fiscal Quarters Ending                               Maximum Ratio
                  ----------------------                               -------------

<S>                                                                    <C>
                  December 31, 2001 through
                  December 31, 2003                                    4.00:1.00

                  March 31, 2004                                       3.75:1.00

                  June 30, 2004                                        3.50:1.00

                  September 30, 2004                                   3.25:1.00

                  December 31, 2004                                    3.00:1.00

                  March 31, 2005 and thereafter                        2.75:1.00
</Table>

      6.14  FIXED CHARGE COVERAGE RATIO. Permit the Fixed Charge Coverage Ratio
as of the last day of any Fiscal Quarter described in the matrix set forth
below, to exceed the ratio set forth opposite that Fiscal Quarter:

<Table>
<Caption>

                  Fiscal Quarters Ending                               Minimum Ratio
                  ----------------------                               -------------

<S>                                                                    <C>
                  December 31, 2001 through
                  June 30, 2004                                        1.25:1.00

                  September 30, 2004 and thereafter                    1.50:1.00
</Table>

      6.15  CAPITAL EXPENDITURES. Make or commit to make any Capital Expenditure
other than:

            (a) Capital Expenditures associated with the Expansion Project in an
aggregate amount that does not exceed $65,000,000.

            (b) Capital Expenditures associated with the installation of
approximately 150 new slot machines at Wheeling Downs, the relocation of the
kennels and construction of the proposed paddock in an aggregate amount not to
exceed $12,500,000 in the aggregate;

            (c) Maintenance Capital Expenditures in an aggregate amount not to
exceed (i) prior to the Completion Date, $1,000,000 in any Fiscal Year and (ii)
following the Completion Date, $2,000,000 in any Fiscal Year, PROVIDED that any
amount not so expended during any Fiscal Year may be expended in the following
Fiscal Year; and

                                      -60-
<Page>

            (d) other Capital Expenditures associated with the Wheeling Island
facility or its support facilities which are in an aggregate amount not to
exceed $10,000,000 during the term of this Agreement.

      6.16  ACQUISITIONS AND INVESTMENTS. Make any Acquisition or make any
Investment, OTHER THAN:

            (a) Investments in Subsidiaries;

            (b) Investments in Cash Equivalents; and

            (c) Investments made in Indebtedness of Delaware North following the
      Completion Date and when no Default or Event of Default exists or would
      result therefrom in an aggregate amount not to exceed $20,000,000,
      PROVIDED that (i) as of the last day of the then most recently ended
      Fiscal Quarter, and after giving PRO FORMA effect to the making of the
      Investment as of that date, the Leverage Ratio shall be less than
      3.00:1.00, (ii) no Loans or Letters of Credit shall be outstanding
      hereunder as of the date of the making of such Investment, and (iii)
      concurrently with the making of such Investment, Borrower shall obtain a
      negotiable promissory note having a maturity of not more than two years
      (subject to provisions allowing its renewal for periods resulting in its
      remaining life to maturity being not in excess of two years) evidencing
      such Investment and bearing a market rate of interest, which shall contain
      a conspicuous legend stating that it is subject to a lien in favor of the
      Administrative Agent.

      6.17 NEW SUBSIDIARIES. Fail to cause any Person which hereafter becomes a
Subsidiary of Borrower to execute and deliver to the Administrative Agent (a) a
joinder to the Subsidiary Guaranty, a joinder to the Subsidiary Security
Agreement and, to the extent that Person owns any Property of the type described
therein, (b) a joinder to the Trademark Security Agreement, and (c) to deliver
the certificates evidencing all equity interests in such Subsidiary to the
Administrative Agent in pledge pursuant to the Security Agreement.

      6.18  SENIOR UNSECURED NOTES. Amend the terms or conditions of the Senior
Unsecured Notes, the Indenture or other material transaction document relating
to the Senior Unsecured Notes in any respect that is materially adverse to the
interests of the Lenders.

      6.19  CONSTRUCTION COVENANTS.

            (a) Make any change to the Plans or Budget which would (i) result in
      any material change in the scope of the Expansion Project, or (ii) delete
      or materially amend any of the amenities described on Schedule 6.19.

            (b) Fail to construct the Expansion Project in a good and
      workmanlike manner in accordance with sound building practices and without
      material deviation

                                      -61-
<Page>

      from the Plans (except to the extent approved by the Requisite Lenders),
      and comply in all material respects with all existing Laws and
      requirements of all Governmental Agencies having jurisdiction and in all
      material respects with all future Laws and requirements that become
      applicable to the Expansion Project.

            (c) Purchase or contract for any materials, equipment, furnishings,
      fixtures or articles of personal property to be placed or installed on the
      Expansion Project (or on the existing Wheeling Downs facility as
      contemplated pursuant to the Plans) under any security agreement or other
      agreement where the seller reserves or purports to reserve title or the
      right of removal or repossession (EXCEPT for such reservations as may
      arise solely by operation of Law), or the right to consider such materials
      personal property after their incorporation in the work of construction,
      unless the Administrative Agent in each instance has authorized the
      Borrower to do so in writing in each case except as permitted by Section
      6.9(c).

            (d) Fail to promptly pay prior to delinquency (subject to applicable
      retentions) or otherwise discharge all claims and Liens for labor done and
      materials and services furnished in connection with the construction of
      the Expansion Project (and any improvements to the existing Wheeling Downs
      facility contemplated by the Plans), EXCEPT for claims contested in good
      faith by appropriate proceedings and without prejudice to the construction
      timetable, PROVIDED that any such claims are covered by such payment bonds
      or title insurance policy endorsements as may be reasonably requested by
      the Administrative Agent.

            (e) Fail to properly obtain, comply with and keep in effect all
      material permits, licenses and approvals which are customarily required to
      be obtained from Governmental Agencies in order to construct and occupy
      the Expansion Project as of the then current stage of construction, and
      deliver copies of all such permits, licenses and approvals to the
      Administrative Agent promptly following a written request therefor.

                                      -62-
<Page>

                                    Article 7
                     INFORMATION AND REPORTING REQUIREMENTS

      7.1   FINANCIAL AND BUSINESS INFORMATION. So long as any Advance remains
unpaid, any Letter of Credit remains outstanding, or any other Obligation
remains unpaid or unperformed, or any portion of the Commitment remains in
force, Borrower shall, unless the Administrative Agent (with the written
approval of the Requisite Lenders) otherwise consents, at their sole expense,
deliver to the Administrative Agent, a sufficient number of copies for all of
the Lenders, of the following:

            (a) Within 45 days after the close of the first three quarterly
accounting periods in each fiscal year of Borrower, (i) the consolidated balance
sheet of Borrower and its Subsidiaries as at the end of such quarterly
accounting period and the related consolidated statement of income and retained
earnings and statement of cash flows for the elapsed portion of the fiscal year
ended with the last day of such quarterly accounting period, in each case
setting forth comparative figures for the related periods in the prior fiscal
year, all of which shall be certified by the Chief Financial Officer of
Borrower, subject to normal year-end audit adjustments and (ii) a management
narrative of the important operational and financial developments during the
year-to-date period;

            (b) Within 120 days after the close of each fiscal year of Borrower,
(i) the consolidated balance sheet of Borrower and its Subsidiaries as at the
end of such fiscal year and the related consolidated statement of income and
retained earnings and of cash flows for such fiscal year setting forth
comparative figures for the preceding fiscal year, and (ii) a management
narrative of the important operational and financial developments during the
respective fiscal year. The financial statements referred to in clause (i) shall
be prepared in accordance with Generally Accepted Accounting Principles,
consistently applied, accompanied by a report and opinion of
PricewaterhouseCoopers LLP, or other independent public accountants of
recognized national standing selected by Borrower and reasonably satisfactory to
the Requisite Lenders, which report shall be based on an audit conducted in
accordance with generally accepted auditing standards as at such date, and which
opinion shall be an unqualified opinion.

            (c) Promptly after Borrower's or any of its Subsidiaries' receipt
thereof, a copy of the "management letter" (if any) received from its certified
public accountants and management's response thereto.

            (d) As promptly as practicable and in any event no later than 90
days following the first day of each fiscal year of Borrower, a budget in form
satisfactory to the Administrative Agent (including budgeted statements of
income and sources and uses of cash and balance sheets) prepared by Borrower for
each of the months of such fiscal year prepared in detail;

                                      -63-
<Page>

            (e) Promptly after request by the Administrative Agent or any
Lender, copies of any detailed audit reports, management letters or
recommendations submitted to Borrower by independent accountants in connection
with the accounts or books of Borrower or any of its Subsidiaries, or any audit
of any of them;

            (f) Promptly after the filing or delivery thereof, copies of all
financial information, proxy materials and reports, if any, which Borrower or
any of its Subsidiaries shall publicly file with the Securities and Exchange
Commission or its Successors or deliver to holders of its Indebtedness pursuant
to the terms of the documentation governing such Indebtedness (or any trustee,
agent or other representative therefor);

            (g) Promptly after the same are available, copies of any written
communication to Borrower or any Subsidiary of Borrower from any Regulatory
Board advising it of a violation of or non-compliance with any Applicable
Regulation by Borrower or any Subsidiary of Borrower;

            (h) Notice in writing within 30 days after any change of Borrower's
senior management personnel;

            (i) Promptly after an officer of any Party obtains knowledge
thereof, notice of one or more of the following environmental matters, unless
such environmental matters could not, individually or when aggregated with all
other such environmental matters, be reasonably expected to materially and
adversely affect the business, operations, property, assets, liabilities,
condition (financial or otherwise) or prospects of Borrower and its Subsidiaries
taken as a whole:

                  (i) any pending or threatened Environmental Claim against
      Borrower or any of its Subsidiaries or any Real Property owned or operated
      by Borrower or any of its Subsidiaries;

                  (ii) any condition or occurrence on or arising from any Real
      Property owned or operated by Borrower or any of its Subsidiaries that (a)
      results in noncompliance by Borrower or any of its Subsidiaries with any
      applicable Environmental Law or (b) could be expected to form the basis of
      an Environmental Claim against Borrower or any of its Subsidiaries or any
      such Real Property;.

                  (iii) any condition or occurrence on any Real Property owned
      or operated by Borrower or any of its Subsidiaries that could be expected
      to cause such Real Property to be subject to any restrictions on the
      ownership, occupancy, use or transferability by Borrower or any of its
      Subsidiaries of such Real Property under any Environmental Law; and

                  (iv) the taking of any removal or remedial action in response
      to the actual or alleged presence of any Hazardous Material on any Real
      Property owned or

                                      -64-
<Page>

      operated by Borrower or any of its Subsidiaries as required by any
      Environmental Law or any governmental or other administrative agency;
      PROVIDED, that in any event Borrower shall deliver to each Lender all
      notices received by Borrower or any of its Subsidiaries from any
      government or governmental agency under, or pursuant to, CERCLA which
      identify Borrower or any of its Subsidiaries as potentially responsible
      parties for remediation costs or which otherwise notify Borrower or any of
      its Subsidiaries of potential liability under CERCLA.

      All such notices shall describe in reasonable detail the nature of the
      claim, investigation, condition, occurrence or removal or remedial action
      and Borrower's or such Subsidiary's response thereto.

            (j) Promptly after (i) Borrower or any of its Subsidiaries receives
any correspondence or other written communication from any Regulatory Board
(other than correspondence relating to routine operating matters of Borrower or
any of its Subsidiaries in the ordinary course of business) or (ii) Borrower or
any of its Subsidiaries delivers any correspondence or other written
communication to any Regulatory Board (other than correspondence relating to
routine operating matters of Borrower or any of its Subsidiaries), Borrower
shall deliver copies of any such correspondence or other written communication
to each of the Lenders;

            (k) Promptly after request by the Administrative Agent or any
Lender, copies of any other material report or other document that was filed by
Borrower or any of its Subsidiaries with any Governmental Agency;

            (l) Promptly, and in any event within ten Business Days upon a
Senior Officer becoming aware, of the occurrence of any (i) "reportable event"
(as such term is defined in Section 4043 of ERISA) or (ii) "prohibited
transaction" (as such term is defined in Section 406 of ERISA or Section 4975 of
the Code) in connection with any Pension Plan or any trust created thereunder,
telephonic notice specifying the nature thereof, and, no more than five Business
Days after such telephonic notice, written notice again specifying the nature
thereof and specifying what action Borrower or any of its Subsidiaries is taking
or proposes to take with respect thereto, and, when known, any action taken by
the Internal Revenue Service with respect thereto;

            (m) Promptly upon, and in any event within five Business Days after
an officer of any Party obtains knowledge thereof, notice of the occurrence of
any event which constitutes a Default or an Event of Default; and

            (n) Such other data and information as from time to time may be
reasonably requested by the Administrative Agent, any Lender (through the
Administrative Agent) or the Requisite Lenders.

                                      -65-
<Page>

      7.2 COMPLIANCE CERTIFICATES. For so long as any Advance remains unpaid,
any Letter of Credit remains outstanding any other Obligation remains unpaid or
unperformed, or any portion of the Commitment remains outstanding, Borrower
shall deliver to the Administrative Agent for distribution by it to the Lenders
concurrently with the financial statements required pursuant to Sections 7.1(a)
a properly completed Compliance Certificate signed by a Senior Officer.

                                      -66-
<Page>

                                    Article 8
                                   CONDITIONS

      8.1   THE EFFECTIVE DATE. The effectiveness of the amendment and
restatement of this Agreement is subject to the following conditions precedent,
each of which shall be satisfied prior to the effectiveness hereof (unless all
of the Lenders, in their sole and absolute discretion, shall agree otherwise):

            (a) The Administrative Agent shall have received all of the
following, each of which shall be originals unless otherwise specified, each
properly executed by a Responsible Official of each party thereto, each dated as
of the Effective Date and each in form and substance satisfactory to the
Administrative Agent and its legal counsel (unless otherwise specified or, in
the case of the date of any of the following, unless the Administrative Agent
otherwise agrees or directs):

                  (1) executed counterparts of this Agreement, sufficient in
      number for distribution to the Lenders and Borrower;

                  (2) Notes issued to each Lender in the principal amount of
      that Lender's Pro Rata Share;

                  (3) the Subsidiary Guaranty executed by each Subsidiary of
      Borrower;

                  (4) the Deeds of Trust executed by Borrower and Wheeling Land
      Development Corporation in forms which are suitable for recordation in the
      relevant West Virginia recorder's offices;

                  (5) such documentation with respect to Borrower, each
      Subsidiary Guarantor and each other Obligor as the Administrative Agent
      may require to establish its due organization, valid existence and good
      standing, its qualification to engage in business in each material
      jurisdiction in which it is engaged in business or required to be so
      qualified, its authority to execute, deliver and perform the Loan
      Documents, the identity, authority and capacity of each Responsible
      Official thereof authorized to act on its behalf, INCLUDING certified
      copies of articles of incorporation and amendments thereto, bylaws and
      amendments thereto, certificates of good standing and/or qualification to
      engage in business, tax clearance certificates, certificates of corporate
      resolutions, and incumbency certificates;

                  (6) the Opinions of Counsel;

                  (7) such assurances as the Administrative Agent deems
      appropriate that the relevant Governmental Agencies and Regulatory Boards
      have approved the

                                      -67-
<Page>

      credit facilities to be provided hereunder to the extent that such
      approval is required by Applicable Regulations;

                  (8) a Certificate of a Responsible Official signed by a Senior
      Officer of Borrower certifying that the conditions specified in Sections
      8.1(d), 8.1(e) and 8.1(g) have been satisfied;

                  (9) such other assurances, certificates, documents, consents
      or opinions as the Administrative Agent reasonably may require.

            (b) The Administrative Agent shall have received assurances of the
recordation acceptable to it from First American Title Insurance Company,
together with its commitment to issue its ALTA lenders policy of title insurance
in the amount of $40,000,000 with such endorsements to coverage and exceptions
from coverage as the Administrative Agent may request.

            (c) Evidence that the security interests of the Administrative Agent
in the Collateral are of first priority.

            (d) The representations and warranties of Borrower contained in
Article 4 shall be true and correct.

            (e) Borrower, the other Obligors shall be in compliance with all the
terms and provisions of the Loan Documents, and after giving effect to the
initial Advance, no Default or Event of Default shall have occurred and be
continuing.

            (f) The fees due and payable on the Effective Date pursuant to
Article 3 shall have been paid.

            (g) No Material Adverse Effect shall have occurred since December
31, 2000.

            (h) Delivery of all financial statements as set forth in Article 7.

            (i) Such environmental reviews and assessments as the Lenders may
require with respect to the Real Property.

            (j) Receipt by the Agent of a lenders loss payable endorsement
indicating insurance coverages acceptable to the Lender.

            (k) The West Virginia State Lottery Commission shall have approved
this Agreement and the other Loan Documents in accordance with the requirements
of W.Va. Codess.29-22a-7(a)(5).

                                      -68-
<Page>

            (l) Borrower shall have received, or shall concurrently receive, not
less than $125,000,000 in gross proceeds from the issuance of the Senior
Unsecured Notes, and Administrative Agent shall have received executed copies of
the Stock Redemption Agreement, the Indenture and all of the material
instruments, documents and agreements executed in relation thereto, which
documents shall (i) provide that the Senior Unsecured Notes shall mature no
earlier than seven years after the Effective Date and (ii) otherwise be in form
and substance satisfactory to Administrative Agent.

            (m) the WHX Entertainment Redemption shall have been completed, all
on terms and conditions satisfactory to the Administrative Agent.

            (n) All legal matters relating to the Loan Documents shall be
reasonably satisfactory to Sheppard, Mullin, Richter & Hampton, LLP, special
counsel to the Administrative Agent.

      8.2   ANY ADVANCE. The obligation of each Lender to make any Advance which
would increase the outstanding principal Indebtedness evidenced by the Notes and
the obligation of the Lenders to make any LIBOR Loan is subject to the
conditions precedent that:

            (a) EXCEPT as disclosed by the Obligors and approved in writing by
the Requisite Lenders, the representations and warranties contained in Article 4
(OTHER THAN the representations set forth in Sections 4.4, 4.10 and 4.17) shall
be true and correct on the date of such Advance as though made on that date;

            (b) There shall not be any pending or threatened action, suit,
proceeding or investigation affecting Borrower or any of its Subsidiaries before
any Governmental Agency that constitutes a Material Adverse Effect;

            (c) EXCEPT as provided for in Section 2.1(g), the Administrative
Agent shall have timely received a Request for Loan in compliance with Article 2
(or telephonic or other request for Loan referred to in the second sentence of
Section 2.1(b), if applicable) or, in the appropriate case, a Request for Letter
of Credit;

            (d) no Default or Event of Default shall have occurred and remain
continuing or will result from such Advance;

            (e) the Administrative Agent shall have received, in form and
substance satisfactory to the Administrative Agent, such other assurances,
certificates, documents or consents related to the foregoing as the
Administrative Agent or the Requisite Lenders reasonably may require.

                                      -69-
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                                    Article 9
              EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT

      9.1   EVENTS OF DEFAULT. The existence or occurrence of any one or more of
the following events, whatever the reason therefor and under any circumstances
whatsoever, shall constitute an Event of Default:

            (a) Borrower fails to pay any principal on any of the Notes, or any
portion thereof, on the date when due; or

            (b) Borrower fails to pay any interest on any of the Notes, or any
fees under Section 3.3 or any portion thereof, within two Business Days after
the date when due; or fails to pay promptly any other fee or amount payable to
the Lenders under any Loan Document, or any portion thereof after demand
therefor; or

            (c) Borrower fails to comply with any of the covenants contained in
Section 5.13 or in Article 6; or

            (d) Borrower or any other Obligor fails to perform or observe any
other covenant or agreement (not specified in clauses (a), (b) or (c) above)
contained in any Loan Document on its part to be performed or observed within
ten Business Days after the giving of notice by the Administrative Agent on
behalf of the Requisite Lenders of such Default; or

            (e) Any representation or warranty of Borrower or any other Obligor
made in any Loan Document, or in any certificate or other writing delivered by
Borrower pursuant to any Loan Document, proves to have been incorrect when made
or reaffirmed; or

            (f) Borrower or any of its Subsidiaries (i) fails to pay the
principal, or any principal installment, of any present or future Indebtedness
for borrowed money of $5,000,000 or more, or any guaranty of present or future
Indebtedness for borrowed money of $5,000,000 or more, on its part to be paid,
when due (or within any stated grace period), whether at the stated maturity,
upon acceleration, by reason of required prepayment, the exercise of any "put"
exercised by the holder of such Indebtedness or otherwise or (ii) fails to
perform or observe any other term, covenant or agreement on its part to be
performed or observed, or suffers any event to occur, in connection with any
present or future Indebtedness for borrowed money of $5,000,000 or more, or of
any guaranty of present or future indebtedness for borrowed money of $5,000,000
or more, if as a result of such failure or sufferance any holder or holders
thereof (or an agent or trustee on its or their behalf) has the right to declare
such indebtedness due before the date on which it otherwise would become due; or

            (g) Any event occurs which gives the holder or holders of any
Subordinated Obligation (or an agent or trustee on its or their behalf) the
right to declare such Subordinated Obligation due before the date on which it
otherwise would become due, or the

                                      -70-
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right to require the issuer thereof to redeem or purchase, or offer to redeem or
purchase, all or any portion of any Subordinated Obligation; or

            (h) Any Loan Document, at any time after its execution and delivery
and for any reason OTHER THAN the agreement of the Lenders or satisfaction in
full of all the Obligations ceases to be in full force and effect or is declared
by a court of competent jurisdiction to be null and void, invalid or
unenforceable in any respect which, in any such event in the reasonable opinion
of the Requisite Lenders, is materially adverse to the interests of the Lenders;
or any Obligor or other party thereto denies that it has any or further
liability or obligation under any Loan Document, or purports to revoke,
terminate or rescind same; or

            (i) A final judgment against Borrower or any of its Subsidiaries is
entered for the payment of money in excess of $1,000,000 (other than any money
judgment covered in full by insurance) and, absent procurement of a stay of
execution, such judgment remains unsatisfied for sixty calendar days after the
date of entry of judgment, or in any event later than five days prior to the
date of any proposed sale thereunder; or any writ or warrant of attachment or
execution or similar process is issued or levied against all or any part of the
Property of any such Person and is not released, vacated or fully bonded within
sixty calendar days after its issue or levy; or

            (j) Borrower or any of its Subsidiaries institutes or consents to
the institution of any proceeding under a Debtor Relief Law relating to it or to
all or any part of its Property, or is unable or admits in writing its inability
to pay its debts as they mature, or makes an assignment for the benefit of
creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer
for it or for all or any part of its Property; or any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer is
appointed without the application or consent of that Person and the appointment
continues undischarged or unstayed for sixty calendar days; or any proceeding
under a Debtor Relief Law relating to any such Person or to all or any part of
its Property is instituted without the consent of that Person and continues
undismissed or unstayed for sixty calendar days; or

            (k) The occurrence of an Event of Default (as such term is or may
hereafter be specifically defined in any other Loan Document) under any other
Loan Document; or

            (l) Any determination is made by a court of competent jurisdiction
that any Subordinated Obligation is not subordinated in accordance with its
terms to the Obligations; or

            (m) Any Pension Plan maintained by Borrower or any of its
Subsidiaries is determined to have an "accumulated funding deficiency" as that
term is defined in Section 302 of ERISA and the result is a Material Adverse
Effect; or

                                      -71-
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            (n) The occurrence of any License Revocation which results in the
legal inability of Borrower to operate video lottery terminals or slot machines
at Wheeling Downs for a period of five consecutive calendar days; or

            (o) The occurrence of any Change of Control; or

            (p) any event occurs which gives the holders of any Senior Unsecured
Note (or an agent or trustee on its or their behalf) the right to require the
issuer to redeem or purchase, or offer to redeem or purchase, all or any portion
of the Senior Unsecured Notes which are in excess of $5,000,000, except to the
extent that Borrower is then entitled to repurchase Senior Unsecured Notes in
the amount which is the subject of such offered repurchase or required purchase
pursuant to Section 6.1(a).

      9.2   REMEDIES UPON EVENT OF DEFAULT. Without limiting any other rights or
remedies of the Administrative Agent or the Lenders provided for elsewhere in
this Agreement, or in the other Loan Documents, or by applicable Law, or in
equity, or otherwise:

            (a) Upon the occurrence, and during the continuance, of any Event of
Default OTHER THAN an Event of Default described in Section 9.1(j):

                  (1) the Commitment to make Advances and issue Letters of
      Credit and all other obligations of the Creditors to the Obligors and all
      rights of Borrower and the other Obligors under the Loan Documents shall
      be suspended without notice to or demand upon Borrower, which are
      expressly waived by Borrower, EXCEPT that all of the Lenders or the
      Requisite Lenders (as the case may be, in accordance with Section 11.2)
      may waive an Event of Default or, without waiving, determine, upon terms
      and conditions satisfactory to the Lenders or Requisite Lenders, as the
      case may be, to reinstate the Commitment and make further Advances and
      issue further Letters of Credit, which waiver or determination shall apply
      equally to, and shall be binding upon, all the Lenders; and

                  (2) the Issuing Lender may demand immediate payment by
      Borrower of an amount equal to the aggregate amount of all outstanding
      Letters of Credit to be held by the Issuing Lender as collateral
      hereunder; and

                  (3) the Requisite Lenders may request the Administrative Agent
      to, and the Administrative Agent thereupon shall, terminate the Commitment
      and may declare all or any part of the unpaid principal of the Notes, all
      interest accrued and unpaid thereon and all other amounts payable under
      the Loan Documents to be forthwith due and payable, whereupon the same
      shall become and be forthwith due and payable, without protest,
      presentment, notice of dishonor, demand or further notice of any kind, all
      of which are expressly waived by Borrower.

                                      -72-
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            (b) Upon the occurrence of any Event of Default described in Section
9.1(j):

                  (1) the Commitment to make Advances and issue Letters of
      Credit, and all other obligations of the Creditors to the Obligors and all
      rights of Borrower and any other Obligors under the Loan Documents shall
      terminate without notice to or demand upon Borrower, which are expressly
      waived by Borrower, EXCEPT that all the Lenders may waive the Event of
      Default or, without waiving, determine, upon terms and conditions
      satisfactory to all the Lenders, to reinstate the Commitment and make
      further Advances and issue further Letters of Credit, which determination
      shall apply equally to, and shall be binding upon, all the Lenders; and

                  (2) an amount equal to the aggregate amount of all outstanding
      Letters of Credit shall be immediately due and payable to the Issuing
      Lender without notice to or demand upon Borrower or any Co-Borrower, which
      are expressly waived by Borrower and the Co-Borrowers, to be held by the
      Issuing Lender in an interest- bearing cash collateral account as
      collateral hereunder; and

                  (3) the unpaid principal of all Notes, all interest accrued
      and unpaid thereon and all other amounts payable under the Loan Documents
      shall be forthwith due and payable, without protest, presentment, notice
      of dishonor, demand or further notice of any kind, all of which are
      expressly waived by Borrower.

            (c)   Upon the occurrence and during the continuance of any Event of
Default, the Lenders and the Administrative Agent, or any of them, without
notice to (EXCEPT as expressly provided for in any Loan Document) or demand upon
Borrower, which are expressly waived by Borrower (EXCEPT as to notices expressly
provided for in any Loan Document), may proceed (but only with the consent of
the Requisite Lenders) to protect, exercise and enforce their rights and
remedies under the Loan Documents against Borrower and any other Obligor and
such other rights and remedies as are provided by law or equity. In the event
that the Administrative Agent provides any notice to the Borrower of the
occurrence of any Event of Default hereunder, the Administrative Agent agrees
for the benefit of the West Virginia State Lottery Commission and the West
Virginia Racing Commission that it shall provide concurrent notice to the West
Virginia State Lottery Commission and the West Virginia Racing Commission
thereof (and the Borrower hereby consents to the giving of such notice),
PROVIDED that the Borrower shall not have any rights under this sentence. All
such notices shall be provided to the West Virginia Lottery Commission and the
West Virginia Racing Commission at the following addresses:

                            West Virginia Lottery
                            312 MacCorkle Avenue S.E.
                            Charleston, WV 25327

                            West Virginia Racing Commission

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                            State of West Virginia Department of Tax and Revenue
                            106 Dee Drive
                            Charleston, WV 25311

            (d) The order and manner in which the Lenders' rights and remedies
are to be exercised shall be determined by the Requisite Lenders in their sole
discretion, and all payments received by the Administrative Agent and the
Lenders, or any of them, shall be applied first to the costs and expenses
(including reasonable attorneys' fees and disbursements and the reasonably
allocated costs of attorneys employed by the Administrative Agent or by any
Lender) of the Administrative Agent and of the Lenders, and thereafter paid pro
rata to the Lenders in the same proportions that the aggregate Obligations owed
to each Lender under the Loan Documents bear to the aggregate Obligations owed
under the Loan Documents to all the Lenders, without priority or preference
among the Lenders. Regardless of how each Lender may treat payments for the
purpose of its own accounting, for the purpose of computing Borrower's
Obligations hereunder and under the Notes, payments shall be applied FIRST, to
the costs and expenses of the Administrative Agent and the Lenders, as set forth
above, SECOND, to the payment of accrued and unpaid interest due under any Loan
Documents to and including the date of such application (ratably, and without
duplication, according to the accrued and unpaid interest due under each of the
Loan Documents), and THIRD, to the payment of all other amounts (including
principal and fees) then owing to the Administrative Agent or the Lenders under
the Loan Documents. No application of payments will cure any Event of Default,
or prevent acceleration, or continued acceleration, of amounts payable under the
Loan Documents, or prevent the exercise, or continued exercise, of rights or
remedies of the Lenders hereunder or thereunder or at Law or in equity.

                                      -74-
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                                   Article 10
                            THE ADMINISTRATIVE AGENT

      10.1 APPOINTMENT AND AUTHORIZATION. Subject to Section 10.8, each Creditor
hereby irrevocably appoints and authorizes the Administrative Agent to take such
action as administrative agent on its behalf and to exercise such powers under
the Loan Documents as are delegated to the Administrative Agent by the terms
thereof or are reasonably incidental, as determined by the Administrative Agent,
thereto. This appointment and authorization is intended solely for the purpose
of facilitating the servicing of the Loans and does not constitute appointment
of the Administrative Agent as a trustee or agent for any Lender or as
representative of any Lender for any other purpose and, EXCEPT as specifically
set forth in the Loan Documents to the contrary, the Administrative Agent shall
take such action and exercise such powers only in an administrative and
ministerial capacity.

      10.2 ADMINISTRATIVE AGENT AND AFFILIATES. Bank of America (and each
successor Administrative Agent) has the same rights and powers under the Loan
Documents as any other Lender and may exercise the same as though it were not
the Administrative Agent, and the term "Lender" or "Lenders" includes Bank of
America in its individual capacity. Bank of America (and each successor
Administrative Agent) and its Affiliates may accept deposits from, lend money to
and generally engage in any kind of banking, trust or other business with
Borrower or any of its Subsidiaries as if it were not the Administrative Agent
and without any duty to account therefor to the other Creditors. Bank of America
(and each successor Administrative Agent) need not account to any other Creditor
for any monies received by it for reimbursement of its costs and expenses as
Administrative Agent hereunder, or for any monies received by it in its capacity
as a Lender hereunder. The Administrative Agent shall not be deemed to hold a
fiduciary trust or other special relationship or any other special relationship
with any other Creditor and no implied covenants, functions, responsibilities,
duties, obligations or liabilities shall be read into this Agreement or
otherwise exist against the Administrative Agent.

      10.3 PROPORTIONATE INTEREST IN ANY COLLATERAL. The Administrative Agent,
on behalf of all the Creditors, shall hold in accordance with the Loan Documents
all items of any collateral or interests therein received or held by the
Administrative Agent. Subject to the Administrative Agent's right to
reimbursement for its costs and expenses hereunder (INCLUDING reasonable
attorneys' fees and disbursements and other professional services and the
reasonably allocated costs of attorneys employed by the Administrative Agent)
and subject to the application of payments in accordance with Section 9.2(d),
each Lender shall have an interest in the Collateral or interests therein in the
same proportions that the aggregate Obligations owed such Lender under the Loan
Documents bear to the aggregate Obligations owed under the Loan Documents to all
the Lenders, without priority or preference among the Lenders.

                                      -75-
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      10.4  LENDERS' CREDIT DECISIONS. Each Creditor agrees that it has,
independently and without reliance on any other Creditor or the directors,
officers, agents, employees or attorneys thereof, and instead in reliance upon
information supplied to it by or on behalf of the Obligors and upon such other
information as it has deemed appropriate, made its own independent credit
analysis and decision to enter into this Agreement. Each Lender agrees that it
shall, independently and without reliance upon any other Creditor or the
directors, officers, agents, employees or attorneys thereof, continue to make
its own independent credit analyses and decisions in acting or not acting under
the Loan Documents.

      10.5  ACTION BY ADMINISTRATIVE AGENT.

            (a) Absent actual knowledge of the Administrative Agent of the
existence of a Default or Event of Default, the Administrative Agent may assume
that no Default or Event of Default has occurred and is continuing, unless the
Administrative Agent has received notice from the Obligors stating the nature of
the Default or has received notice from a Lender stating the nature of the
Default and that such Lender considers the Default to have occurred and to be
continuing.

            (b) The Administrative Agent has only those obligations under the
Loan Documents as are expressly set forth therein.

            (c) EXCEPT for any obligation expressly set forth in the Loan
Documents and as long as the Administrative Agent may assume that no Event of
Default has occurred and is continuing, the Administrative Agent may, but shall
not be required to, exercise its discretion to act or not act, PROVIDED that (i)
the Administrative Agent shall be required to act or not act upon the
instructions of the Requisite Lenders (or of all the Lenders, to the extent
required by Section 11.2) and those instructions shall be binding upon the
Administrative Agent and all of the other Creditors, and (ii) the Administrative
Agent shall not be required to act or not act if to do so would be contrary to
any Loan Document or to applicable Law or would result, in the reasonable
judgment of the Administrative Agent, in substantial risk of liability to the
Administrative Agent.

            (d) If the Administrative Agent has received a notice specified in
clause (a), the Administrative Agent shall immediately give notice thereof to
the Lenders and shall act or not act upon the instructions of the Requisite
Lenders (or of all the Lenders, to the extent required by Section 11.2),
PROVIDED that (i) the Administrative Agent shall not be required to act or not
act if to do so would be contrary to any Loan Document or to applicable Law or
would result, in the reasonable judgment of the Administrative Agent, in
substantial risk of liability to the Administrative Agent, and (ii) if the
Requisite Lenders (or all the Lenders, if required under Section 11.2) fail, for
five Business Days after the receipt of notice from the Administrative Agent, to
instruct the Administrative Agent, then the Administrative Agent, in its sole
discretion, may act or not act as it deems advisable for the protection of the
interests of the Lenders.

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            (e) The Administrative Agent shall have no liability to any Creditor
for acting, or not acting, as instructed by the Requisite Lenders (or all the
Lenders, if required under Section 11.2), notwithstanding any other provision
hereof.

      10.6 LIABILITY OF ADMINISTRATIVE AGENT. Neither the Administrative Agent
nor any of its directors, officers, agents, employees or attorneys shall be
liable for any action taken or not taken by them under or in connection with the
Loan Documents, EXCEPT for their own gross negligence or willful misconduct.
Without limitation on the foregoing, the Administrative Agent and its directors,
officers, agents, employees and attorneys:

            (a) May treat the payee of any Note as the holder thereof until the
Administrative Agent receives notice of the assignment or transfer thereof, in
form satisfactory to the Administrative Agent, signed by the payee, and may
treat each Lender as the owner of that Lender's interest in the Obligations for
all purposes of this Agreement until the Administrative Agent receives notice of
the assignment or transfer thereof, in form satisfactory to the Administrative
Agent, signed by that Lender.

            (b) May consult with legal counsel (INCLUDING in-house legal
counsel), accountants (INCLUDING in-house accountants) and other professionals
or experts selected by it, or with legal counsel, accountants or other
professionals or experts for Borrower or its Subsidiaries or the Lenders, and
shall not be liable for any action taken or not taken by it in good faith in
accordance with any advice of such legal counsel, accountants or other
professionals or experts.

            (c) Shall not be responsible to any Creditor for any statement,
warranty or representation made in any of the Loan Documents or in any notice,
certificate, report, request or other statement (written or oral) given or made
in connection with any of the Loan Documents.

            (d) EXCEPT to the extent expressly set forth in the Loan Documents,
shall have no duty to ask or inquire as to the performance or observance by any
Obligor of any of the terms, conditions or covenants of any of the Loan
Documents or to inspect any Collateral or the Property, books or records of
Borrower or any of its Subsidiaries.

            (e) Will not be responsible to any Creditor for the due execution,
legality, validity, enforceability, genuineness, effectiveness, sufficiency or
value of any Loan Document, any other instrument or writing furnished pursuant
thereto or in connection therewith, or any Collateral.

            (f) Will not incur any liability by acting or not acting in reliance
upon any Loan Document, notice, consent, certificate, statement, request or
other instrument or writing believed by it to be genuine and signed or sent by
the proper party or parties.

                                      -77-
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            (g) Will not incur any liability for any arithmetical error in
computing any amount paid or payable by any Obligor or paid or payable to or
received or receivable from any Lender under any Loan Document, INCLUDING,
without limitation, principal, interest, commitment fees, Advances and other
amounts.

      10.7  INDEMNIFICATION. Each Lender shall, ratably in accordance with its
Pro Rata Share, indemnify and hold the Administrative Agent, and each of its
directors, officers, agents, employees and attorneys harmless against any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever
(INCLUDING, without limitation, attorneys' fees and disbursements and reasonably
allocated costs of attorneys employed by the Administrative Agent) that may be
imposed on, incurred by or asserted against it or them in any way relating to or
arising out of the Loan Documents or any action taken or not taken by such
indemnitee thereunder, EXCEPT such as result from its own gross negligence or
willful misconduct. Without limitation on the foregoing, each Lender shall
reimburse the Administrative Agent upon demand for that Lender's Pro Rata Share
of any out-of-pocket cost or expense incurred by the Administrative Agent in
connection with the negotiation, preparation, execution, delivery, amendment,
waiver, restructuring, reorganization (INCLUDING a bankruptcy reorganization),
enforcement or attempted enforcement of the Loan Documents, to the extent that
any Obligor is required by Section 11.3 to pay that cost or expense but fails to
do so upon demand.

      10.8  SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may, and at
the request of the Requisite Lenders shall, resign as Administrative Agent upon
thirty days' notice to the Lenders and Borrower. If the Administrative Agent
resigns as Administrative Agent under this Agreement, the Requisite Lenders
shall appoint from among the Lenders a successor administrative agent for the
Lenders. If no successor administrative agent is appointed prior to the
effective date of the resignation of the Administrative Agent, the
Administrative Agent may appoint a successor administrative agent from among the
Lenders. Upon the acceptance of its appointment as successor administrative
agent hereunder, such successor administrative agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and the term
"Administrative Agent" shall mean such successor administrative agent and the
retiring Administrative Agent's appointment, powers and duties as Administrative
Agent shall be terminated. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Article 10, and
Sections 11.3, 11.11 and 11.22, shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent. If no
successor administrative agent has accepted appointment as Administrative Agent
by the date which is thirty (30) days following a retiring Administrative
Agent's notice of resignation, the retiring Administrative Agent's resignation
shall nevertheless thereupon become effective and the Lenders shall perform all
of the duties of the Administrative Agent hereunder until such time, if any, as
the Requisite Lenders appoint a successor administrative agent as provided for
above.

      10.9  FORECLOSURE ON COLLATERAL. It is understood and agreed that the
Liens of the Collateral Documents are subject to applicable Law, including
without limitation the

                                      -78-
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provisions of West Virginia Code Section 29-22a-1 ET SEQ. Without the Consent of
the West Virginia State Lottery Commission, only if such consent is required by
the Racetrack Video Lottery Act, W.Va. Code ss.29-22a-1, ET SEQ., the
Administrative Agent shall not assign, bail, sublease, hypothecate, transfer or
dispose of the video lottery terminals subject to the Collateral Documents and
associated equipment or any interest therein. In the event of foreclosure or
enforcement of the Lien created by any of the Collateral Documents, title to the
Collateral covered thereby shall be taken and held by the Administrative Agent
(or any designee thereof) pro rata for the benefit of the Lenders in accordance
with their Pro Rata Shares and shall be administered in accordance with the
standard form of collateral holding participation agreement used by the
Administrative Agent in comparable syndicated credit facilities.

      10.10 NO OBLIGATIONS OF BORROWER. Nothing contained in this Article 10
shall be deemed to impose upon Borrower any obligation in respect of the due and
punctual performance by the Administrative Agent of its obligations to the
Lenders under any provision of this Agreement, and Borrower shall have no
liability to the Administrative Agent or any of the Lenders in respect of any
failure by the Administrative Agent or any Lender to perform any of its
obligations to the Administrative Agent or the Lenders under this Agreement.

      10.11 PERMITTED RELEASE OF COLLATERAL. The Administrative Agent is hereby
authorized to release its Lien on any Collateral which is the subject of a
disposition permitted hereunder, and each Lender shall confirm upon request the
authority of the Administrative Agent to make any such release of Collateral.

                                      -79-
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                                   Article 11
                                  MISCELLANEOUS

      11.1  CUMULATIVE REMEDIES; NO WAIVER. The rights, powers, privileges and
remedies of the Creditors provided herein, in the Notes and in the other Loan
Documents are cumulative and not exclusive of any right, power, privilege or
remedy provided by Law or equity. No failure or delay on the part of any
Creditor in exercising any right, power, privilege or remedy may be, or may be
deemed to be, a waiver thereof; nor may any single or partial exercise of any
right, power, privilege or remedy preclude any other or further exercise of the
same or any other right, power, privilege or remedy. The terms and conditions of
Article 8 are inserted for the sole benefit of the Creditors; the same may be
waived in whole or in part, with or without terms or conditions, in respect of
any Loan or Letter of Credit without prejudicing the Creditors' rights to assert
them in whole or in part in respect of any other Loan or Letter of Credit.

      11.2  AMENDMENTS; CONSENTS. No amendment, modification, supplement,
extension, termination or waiver of any provision of this Agreement or any other
Loan Document, no approval or consent thereunder, and no consent to any
departure by any Obligor therefrom, may in any event be effective unless in
writing signed or approved in writing by the Requisite Lenders or by the
Administrative Agent with the consent of the Requisite Lenders (and, in the case
of any amendment, modification or supplement to (i) Article 10, signed by the
Administrative Agent, and (ii) to any Loan Document, signed by the Obligors
party thereto), and then only in the specific instance and for the specific
purpose given; and, without the approval in writing of all the Lenders affected
thereby, no amendment, modification, supplement, termination, waiver or consent
may be effective:

            (a) To amend or modify the principal of, or the amount of principal
or principal prepayments on any Note, to increase the amount of the Commitment
or the Pro Rata Share of any Lender without the consent of that Lender,

            (b) Without the consent of the affected Lenders, to decrease the
rate of interest or amount of any fee payable to any Lender, or to decrease the
amount of any unused commitment fee payable to any Lender, or to decrease any
other fee or amount payable to any Lender under the Loan Documents;

            (c) To postpone any date (including the Maturity Date) fixed for any
payment of principal of, prepayment of principal of or any installment of
interest on, any Note or any installment of any unused commitment fee, or to
extend the term of the Commitment, or to release the Subsidiary Guaranty;

            (d) To release any portion of the Collateral having an aggregate
value in excess of $100,000 (EXCEPT in connection with the permitted sale or
other disposition thereof or as expressly provided in any Loan Document);

                                      -80-
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            (e) To amend the provisions of the definition of "REQUISITE
LENDERS", Section 8.2 or this Section 11.2; or

            (f) To amend any provision of this Agreement that expressly requires
the consent or approval of all the Lenders.

Any amendment, modification, supplement, termination, waiver or consent pursuant
to this Section 11.2 shall apply equally to, and shall be binding upon, all of
the Creditors.

      11.3  COSTS, EXPENSES AND TAXES. Borrower shall pay promptly after demand,
accompanied by an invoice therefor, the reasonable out-of-pocket costs and
expenses (including without limitation, the allocated fees and expenses of an
in-house counsel), of the Administrative Agent in connection with the
negotiation, preparation, syndication, administration, execution and delivery of
the Loan Documents. Borrower shall pay promptly after demand, accompanied by an
invoice therefor, the reasonable out-of-pocket costs and expenses of the
Administrative Agent in connection with any amendment to the Loan Documents or
any waiver of the terms thereof, and the reasonable costs and expenses of the
Administrative Agent and, after a Default, the Lenders in connection with the
refinancing, restructuring, reorganization (INCLUDING a bankruptcy
reorganization) and enforcement or attempted enforcement of the Loan Documents,
and any matter related thereto. The foregoing costs and expenses shall include
the actual environmental review fees, filing fees, recording fees, title
insurance premiums and fees, appraisal fees, search fees, and other
out-of-pocket expenses and the reasonable fees and out-of-pocket expenses of any
legal counsel (INCLUDING reasonably allocated costs of legal counsel employed by
the Administrative Agent), independent public accountants and other outside
experts retained by the Administrative Agent, whether or not such costs and
expenses are incurred or suffered by the Administrative Agent in connection with
or during the course of any bankruptcy or insolvency proceedings of any Obligor.
Such costs and expenses shall also include, in the case of any amendment or
waiver of any Loan Document, the administrative costs of the Administrative
Agent reasonably attributable thereto. Borrower shall pay any and all
documentary, recording, stamp and other taxes, and all costs, expenses, fees and
charges payable or determined to be payable in connection with the filing or
recording of this Agreement, any other Loan Document or any other instrument or
writing to be delivered hereunder or thereunder, or in connection with any
transaction pursuant hereto or thereto. Any amount payable to the Administrative
Agent or any Lender under this Section 11.3 shall bear interest from the date of
formal written demand for payment after delinquency at the Default Rate.

      11.4  NATURE OF LENDERS' OBLIGATIONS. The obligations of the Lenders
hereunder are several and not joint or joint and several. Nothing contained in
this Agreement or any other Loan Document and no action taken by any Creditor
pursuant hereto or thereto may, or may be deemed to, make any of the Creditors a
partnership, an association, a joint venture or other entity, either among
themselves or with Borrower or any of its Subsidiaries. Each Lender's

                                      -81-
<Page>

obligation to make any Advance pursuant hereto is several and not joint or joint
and several, and in the case of the initial Advance only, is conditioned upon
the performance by all other Lenders of their obligations to make initial
Advances. A default by any Lender will not increase the Pro Rata Share of the
Commitment attributable to any other Lender. Any Lender not in default may, if
it desires, assume in such proportion as the nondefaulting Lenders agree the
obligations of any Lender in default, but is not obligated to do so.

      11.5  SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties contained herein or in any other Loan Document, or in any certificate
or other writing delivered by or on behalf of any one or more of the Obligors,
will survive the making of the Loans hereunder and the execution and delivery of
the Notes, and have been or will be relied upon by each Creditor,
notwithstanding any investigation made by the Creditors or on their behalf.

      11.6  NOTICES. EXCEPT as otherwise expressly provided in the Loan
Documents, all notices, requests, demands, directions and other communications
provided for hereunder or under any other Loan Document must be in writing and
must be mailed, telecopied, dispatched by commercial courier or delivered to the
appropriate party at the address set forth on the signature pages of this
Agreement or other applicable Loan Document or, as to any party to any Loan
Document, at any other address as may be designated by it in a written notice
sent to all other parties to such Loan Document in accordance with this Section.
EXCEPT as otherwise expressly provided in any Loan Document, if any notice,
request, demand, direction or other communication required or permitted by any
Loan Document is given by mail it will be effective on the earlier of receipt or
the third calendar day after deposit in the United States mail with first class
or airmail postage prepaid; if given by telecopier, when sent; if dispatched by
commercial courier, on the scheduled delivery date; or if given by personal
delivery, when delivered.

      11.7  EXECUTION OF LOAN DOCUMENTS. This Agreement and any other Loan
Document may be executed in any number of counterparts and any party hereto or
thereto may execute any counterpart, each of which when executed and delivered
will be deemed to be an original and all of which counterparts of this Agreement
or any other Loan Document, as the case may be, when taken together will be
deemed to be but one and the same instrument. The execution of this Agreement or
any other Loan Document by any party hereto or thereto will not become effective
until counterparts hereof or thereof, as the case may be, have been executed by
all the parties hereto or thereto.

      11.8  BINDING EFFECT; ASSIGNMENT.

            (a) This Agreement and the other Loan Documents to which any Obligor
is a party will be binding upon and inure to the benefit of the relevant Obligor
and the Creditors, and their respective successors and assigns, EXCEPT that the
Obligors may not assign their rights hereunder or thereunder or any interest
herein or therein without the prior written consent of all the Lenders.
Notwithstanding the preceding sentence, Borrower may when no

                                      -82-
<Page>

Default or Event of Default has occurred and remains continuing, assign the
Commitments to a limited liability company which (i) is wholly-owned, directly
or indirectly by Delaware North, (ii) concurrently assumes the Obligations and
the Obligations under the Senior Unsecured Notes pursuant to a transaction and
documents which are acceptable to the Administrative Agent, and (iii) succeeds
to substantially all of the assets, rights and privileges of the Borrower
(including without limitation the Collateral and all gaming licenses held by
Borrower). Each Lender represents that it is not acquiring its Note with a view
to the distribution thereof within the meaning of the Securities Act of 1933, as
amended (subject to any requirement that disposition of such Note must be within
the control of such Lender). Any Lender may at any time pledge its Note or any
other instrument evidencing its rights as a Lender under this Agreement to a
Federal Reserve Bank, but no such pledge shall release that Lender from its
obligations hereunder or grant to such Federal Reserve Bank the rights of a
Lender hereunder absent foreclosure of such pledge.

            (b) From time to time following the Effective Date, each Lender may
assign to one or more Eligible Assignees all or any portion of its Pro Rata
Share; PROVIDED that (i) such Eligible Assignee, if not then a Lender or an
Affiliate of the assigning Lender, shall be approved by the Administrative Agent
and Borrower (neither of which approvals shall be unreasonably withheld or
delayed), PROVIDED that the consent of Borrower to assignments shall not be
required when any Default or Event of Default has occurred and remains
continuing, (ii) such assignment shall be evidenced by an Assignment Agreement,
a copy of which shall be furnished to the Administrative Agent as provided
below, (iii) EXCEPT in the case of an assignment to an Affiliate of the
assigning Lender, to another Lender or of the entire remaining Commitment of the
assigning Lender, the assignment shall not assign a Pro Rata Share of the
Commitment equivalent to less than $1,500,000, (iv) the effective date of any
such assignment shall be as specified in the Assignment Agreement, but not
earlier than the date which is five Business Days after the date the
Administrative Agent has received the Assignment Agreement, and (v) no Lender
shall make any assignment to an Assignee which has been found by the West
Virginia State Lottery Commission or the West Virginia State Racing Commission,
acting under applicable Law, to be unsuitable as a Lender. Upon the effective
date of such Assignment Agreement, the Eligible Assignee named therein shall be
a Lender for all purposes of this Agreement, with the Pro Rata Share therein set
forth and, to the extent of such Pro Rata Share, the assigning Lender shall be
released from its further obligations under the Loan Documents. Borrower agrees
that it shall execute and deliver (against delivery by the assigning Lender to
Borrower of its Note) to such assignee Lender, a Note evidencing that assignee
Lender's Pro Rata Share, and to the assigning Lender, a Note evidencing the
remaining balance Pro Rata Share retained by the assigning Lender.

            (c) By executing and delivering an Assignment Agreement, the
Eligible Assignee thereunder acknowledges and agrees that: (i) other than the
representation and warranty that it is the legal and beneficial owner of the Pro
Rata Share being assigned thereby free and clear of any adverse claim, the
assigning Lender has made no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or the execution, legality,

                                      -83-
<Page>

validity, enforceability, genuineness or sufficiency of this Agreement or any
other Loan Document; (ii) the assigning Lender has made no representation or
warranty and assumes no responsibility with respect to the financial condition
of Borrower or the performance by Borrower of the Obligations; (iii) it has
received a copy of this Agreement, together with copies of the most recent
financial statements delivered pursuant to Section 7.1 and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment Agreement; (iv) it will, independently
and without reliance upon the Administrative Agent or any Lender and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) it appoints and authorizes the Administrative Agent to take
such action and to exercise such powers under this Agreement and the other Loan
Documents as are delegated to the Administrative Agent by this Agreement; and
(vi) it will perform in accordance with their terms all of the obligations which
by the terms of this Agreement are required to be performed by it as a Lender.

            (d) The Administrative Agent shall maintain at the Administrative
Agent's Office a copy of each Assignment Agreement delivered to it. After
receipt of a completed Assignment Agreement executed by any Lender and an
Eligible Assignee, and receipt of an assignment fee of $3,500 from such Eligible
Assignee, the Administrative Agent shall, promptly following the effective date
thereof, provide to Borrower and the Lenders a revised list of the Pro Rata
Shares of the Lenders giving effect thereto.

            (e) Each Lender may from time to time grant participations to one or
more banks or other financial institutions (INCLUDING another Lender) in all or
a portion of its Pro Rata Share; PROVIDED, HOWEVER, that (i) Borrower shall have
provided its written approval to such participation (such approval shall not be
unreasonably withheld or delayed), (ii) such Lender's obligations under this
Agreement shall remain unchanged, (iii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iv) the participating banks or other financial institutions shall not be a
Lender hereunder for any purpose EXCEPT, if the participation Agreement so
provides, for the purposes of Sections 3.5, 3.6, 11.11 and 11.22 but only to the
extent that the cost of such benefits to Borrower does not exceed the cost which
Borrower would have incurred in respect of such Lender absent the participation,
(v) Borrower, the Administrative Agent and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement, (vi) the participation interest
shall be expressed as a percentage of the granting Lender's Pro Rata Share as it
then exists and shall not restrict an increase in the Commitment, or in the
granting Lender's Pro Rata Share, so long as the amount of the participation
interest is not affected thereby and (vii) the consent of the holder of such
participation interest shall not be required for amendments or waivers of
provisions of the Loan Documents OTHER THAN those which (A) extend the Maturity
Date or any other date upon which any payment of money is due to the Lenders,
(B) reduce the rate of interest payable with respect to the participation, any
fee or any other monetary amount payable to the participant, (C) reduce the
amount of any installment of principal due under the Notes in a

                                      -84-
<Page>

manner which affects the participant, or (D) release any material portion of the
Collateral, (E) increase the Commitment, only if the participant's Commitment is
increased.

            (f) Notwithstanding anything in this Section 11.8 to the contrary,
the rights of the Lenders to make assignments of, and grant participations in,
their Pro Rata Shares of the Commitment shall be subject to the approval of any
Regulatory Board (including the approval of the identity of any proposed
assignee or participant), to the extent required by Applicable Regulations.

      11.9  RIGHT OF SETOFF. If an Event of Default has occurred and is
continuing, each Creditor may (but only with the consent of the Requisite
Lenders) exercise its rights under Article 9 of the Uniform Commercial Code and
other applicable Laws and, to the extent permitted by applicable Laws, apply any
funds in any deposit account maintained with it by Borrower or any Property of
Borrower in its possession against the Obligations.

      11.10 SHARING OF SETOFFS. Each Lender severally agrees that if it, through
the exercise of any right of setoff, banker's lien or counterclaim against any
Obligor, or otherwise, receives payment of the Obligations held by it that is
ratably more than any other Lender, through any means, receives in payment of
the Obligations held by that Lender, then, subject to applicable Laws, (a) the
Lender exercising the right of setoff, banker's lien or counterclaim or
otherwise receiving such payment shall purchase, and shall be deemed to have
simultaneously purchased, from the other Lender a participation in the
Obligations held by the other Lender and shall pay to the other Lender a
purchase price in an amount so that the share of the Obligations held by each
Lender after the exercise of the right of setoff, banker's lien or counterclaim
or receipt of payment shall be in the same proportion that existed prior to the
exercise of the right of setoff, banker's lien or counterclaim or receipt of
payment; and (b) such other adjustments and purchases of participations shall be
made from time to time as shall be equitable to ensure that all of the Lenders
share any payment obtained in respect of the Obligations ratably in accordance
with each Lender's share of the Obligations immediately prior to, and without
taking into account, the payment; PROVIDED that, if all or any portion of a
disproportionate payment obtained as a result of the exercise of the right of
setoff, banker's lien, counterclaim or otherwise is thereafter recovered from
the purchasing Lender by any Obligor or any Person claiming through or
succeeding to the rights of any Obligor, the purchase of a participation shall
be rescinded and the purchase price thereof shall be restored to the extent of
the recovery, but without interest. Each Lender that purchases a participation
in the Obligations pursuant to this Section 11.10 shall from and after the
purchase have the right to give all notices, requests, demands, directions and
other communications under this Agreement with respect to the portion of the
Obligations purchased to the same extent as though the purchasing Lender were
the original owner of the Obligations purchased. Each Obligor expressly consents
to the foregoing arrangements and agrees that any Lender holding a participation
in an Obligation so purchased may exercise any and all rights of setoff,
banker's lien or counterclaim with respect to the participation as fully as if
the Lender were the original owner of the Obligation purchased.

                                      -85-
<Page>

      11.11 INDEMNITY BY BORROWER. Borrower agrees to indemnify, save and hold
harmless the Creditors and their respective members, directors, officers,
agents, attorneys and employees (collectively the "INDEMNITEES") from and
against: (a) any and all claims, demands, actions or causes of action, if the
claim, demand, action or cause of action arises out of or relates to the
Commitment, the use or contemplated use of proceeds of any Loan, or the
relationship between any such Person and the Creditors under this Agreement; (b)
any administrative or investigative proceeding by any Governmental Agency
arising out of or related to a claim, demand, action or cause of action
described in clause (a) above; and (c) any and all liabilities, losses, costs or
expenses (INCLUDING reasonable attorneys' fees and the reasonably allocated
costs of attorneys employed by any Indemnitee and disbursements of such
attorneys and other professional services) that any Indemnitee suffers or incurs
as a result of the assertion of any foregoing claim, demand, action or cause of
action; PROVIDED that no Indemnitee shall be entitled to indemnification for any
loss caused by its own gross negligence or willful misconduct or as to any claim
asserted by that Indemnitee against Borrower to the extent that Borrower
prevails on that claim in a final and non-appealable determination by a court of
competent jurisdiction or an arbitrator appointed in accordance herewith. If any
claim, demand, action or cause of action is asserted against any Indemnitee,
such Indemnitee shall promptly notify Borrower, but the failure to so promptly
notify Borrower shall not affect Borrower's obligations under this Section
unless such failure materially prejudices Borrower's, as applicable, right to
participate in the contest of such claim, demand, action or cause of action, as
hereinafter provided. Each Indemnitee may contest the validity, applicability
and amount of such claim, demand, action or cause of action with counsel of its
own choosing and shall permit Borrower to participate in such contest. Any
Indemnitee that proposes to settle or compromise any claim or proceeding for
which Borrower may be liable for payment of indemnity hereunder shall give
Borrower written notice of the terms of such proposed settlement or compromise
reasonably in advance of settling or compromising such claim or proceeding. In
connection with any claim, demand, action or cause of action covered by this
Section 11.11 against more than one Indemnitee, all such Indemnitees shall be
represented by the same legal counsel (which may be a law firm engaged by the
Indemnitees or attorneys employed by an Indemnitee or a combination of the
foregoing) selected by the Indemnitees and reasonably acceptable to Borrower;
PROVIDED, that if such legal counsel determines in good faith that representing
all such Indemnitees would or could result in a conflict of interest under Laws
or ethical principles applicable to such legal counsel or that a defense or
counterclaim is available to an Indemnitee that is not available to all such
Indemnitees, then to the extent reasonably necessary to avoid such a conflict of
interest or to permit unqualified assertion of such a defense or counterclaim,
each Indemnitee shall be entitled to separate representation by legal counsel
selected by that Indemnitee and reasonably acceptable to Borrower, with all such
legal counsel using reasonable efforts to avoid unnecessary duplication of
effort by counsel for all Indemnitees; and FURTHER PROVIDED that the
Administrative Agent (as an Indemnitee) shall at all times be entitled to
representation by separate legal counsel. Any obligation or liability of
Borrower to any Indemnitee under this Section 11.11 shall survive the expiration
or termination of this Agreement, the repayment of all Loans, and the payment
and performance of all other Obligations owed to the Lenders.

                                      -86-
<Page>

      11.12 NONLIABILITY OF THE LENDERS. Borrower acknowledges and agrees that:

            (a) Any inspections of any Property of Borrower made by or through
the Creditors are for purposes of administration of the Loans only and Borrower
is not entitled to rely upon the same;

            (b) By accepting or approving anything required to be observed,
performed, fulfilled or given to the Creditors pursuant to the Loan Documents,
no Creditor shall be deemed to have warranted or represented the sufficiency,
legality, effectiveness or legal effect of the same, or of any term, provision
or condition thereof, and such acceptance or approval thereof shall not
constitute a warranty or representation to anyone with respect thereto by any
Creditor;

            (c) The relationship between each Obligor and Creditors is, and
shall at all times remain, solely that of borrower and lenders; no Creditor
shall under any circumstance be construed to be a partner or joint venturer with
the Obligors; no creditor shall under any circumstance be deemed to be in a
relationship of confidence or trust or a fiduciary or other special relationship
with the Obligors, or to owe any fiduciary duty or other special duty to the
Obligors; no Creditor undertakes or assumes any responsibility or duty to
Borrower or its Affiliates to select, review, inspect, supervise, pass judgment
upon or inform the Obligors of any matter in connection with their Property or
the operations of the Obligors; the Obligors shall rely entirely upon their own
judgment with respect to such matters; and any review, inspection, supervision,
exercise of judgment or supply of information undertaken or assumed by the
Creditors in connection with such matters is solely for the protection of the
Creditors and neither the Obligors nor any other Person is entitled to rely
thereon; and

            (d) The Creditors shall not be responsible or liable to any Person
for any loss, damage, liability or claim of any kind relating to injury or death
to Persons or damage to Property caused by the actions, inaction or negligence
of the Obligors and Borrower hereby indemnifies and holds each Creditor harmless
from any such loss, damage, liability or claim.

      11.13 NO THIRD PARTIES BENEFITTED. This Agreement is made for the purpose
of defining and setting forth certain obligations, rights and duties of Borrower
and the Creditors in connection with the Loans and is made for the sole benefit
of Borrower, the Creditors and the Creditors' successors and assigns. EXCEPT as
provided in Sections 11.8, 11.11 and 11.14, no other Person shall have any
rights of any nature hereunder or by reason hereof.

      11.14 CONFIDENTIALITY. Each Lender agrees to hold any confidential
information that it may receive from Borrower and its Subsidiaries pursuant to
this Agreement in confidence, EXCEPT for disclosure: (i) to other Lenders; (ii)
to legal counsel and accountants for Borrower and its Subsidiaries or any
Lender; (iii) to other professional advisors to Borrower and its Subsidiaries or
any Lender, provided that the recipient has accepted such information subject to
a confidentiality Agreement substantially similar to this Section 11.14; (iv) to
regulatory officials having jurisdiction over that Lender; (v) to any Regulatory
Board having regulatory

                                      -87-
<Page>

jurisdiction over Borrower or its Subsidiaries; (vi) as required by Law or legal
process or in connection with any legal proceeding to which that Lender and
Borrower or any of its Subsidiaries are adverse parties; and (vii) to another
financial institution in connection with a disposition or proposed disposition
to that financial institution of all or part of that Lender's interests
hereunder or a participation interest in its Note, provided that the Borrower
has provided its prior written approval and the recipient has accepted such
information subject to a written confidentiality Agreement. For purposes of the
foregoing, "confidential information" shall mean any information respecting
Borrower or any of its Subsidiaries reasonably considered by them to be
confidential, OTHER THAN (i) information previously filed with any Governmental
Agency and available to the public, (ii) information previously published in any
public medium from a source other than, directly or indirectly, that Lender, and
(iii) information previously disclosed by Borrower or any of its Subsidiaries to
any Person not associated with themselves without a confidentiality Agreement or
obligation substantially similar to this Section 11.14. Nothing in this Section
shall be construed to create or give rise to any fiduciary duty or other special
duty on the part of any Creditor to Borrower or any of its Subsidiaries.

      11.15 FURTHER ASSURANCES. Each Obligor shall, at their expense and without
expense to the Creditors, do, execute and deliver such further acts and
documents as any Creditor from time to time reasonably requires for the assuring
and confirming unto the Creditors of the rights hereby created or intended now
or hereafter so to be, or for carrying out the intention or facilitating the
performance of the terms of any Loan Document.

      11.16 PRINCIPLES OF RESTATEMENT. This Agreement amends, restates and
supercedes the Existing Loan Agreement in its entirety and, together with the
other Loan Documents, comprises the complete and integrated Agreement of the
parties on the subject matter hereof and supersedes all prior agreements,
written or oral, on the subject matter hereof. The Creditors shall be entitled
to the continuing benefit of each Loan Document heretofore executed by Borrower
and each other Obligor which is not expressly terminated hereby, except to the
extent expressly amended in writing pursuant to Article 8 or otherwise,
including without limitation the Subsidiary Guaranty and each of the Collateral
Documents. In the event of any conflict between the provisions of this Agreement
and those of any other Loan Document, the provisions of this Agreement shall
control and govern; PROVIDED that the inclusion of supplemental rights or
remedies in favor of the Creditors in any other Loan Document shall not be
deemed a conflict with this Agreement. Each Loan Document was drafted with the
joint participation of the respective parties thereto and shall be construed
neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof.

      11.17 GOVERNING LAW. EXCEPT to the extent otherwise provided therein, each
Loan Document shall be governed by, and construed and enforced in accordance
with, the local Laws of New York, without reference to the choice of law or
conflicts of laws provisions thereof.

                                      -88-
<Page>

      11.18 SEVERABILITY OF PROVISIONS. Any provision in any Loan Document that
is held to be inoperative, unenforceable or invalid as to any party or in any
jurisdiction shall, as to that party or jurisdiction, be inoperative,
unenforceable or invalid without affecting the remaining provisions or the
operation, enforceability or validity of that provision as to any other party or
in any other jurisdiction, and to this end the provisions of all Loan Documents
are declared to be severable.

      11.19 HEADINGS. Article and Section headings in this Agreement and the
other Loan Documents are included for convenience of reference only and are not
part of this Agreement or the other Loan Documents for any other purpose.

      11.20 TIME OF THE ESSENCE. Time is of the essence of the Loan Documents.

      11.21 FOREIGN LENDERS AND PARTICIPANTS. Each Lender, and each holder of a
participation interest herein, that is incorporated or otherwise organized under
the Laws of a jurisdiction other than the United States of America or any State
thereof or the District of Columbia shall deliver to Borrower (with a copy to
the Administrative Agent) on the Effective Date (or after accepting an
assignment or receiving a participation interest herein pursuant to Section
11.8, if applicable) either Form W8-ECI or other Internal Revenue Service forms
satisfactory to Borrower and the Administrative Agent that no withholding under
the federal income tax laws is required with respect to such Person. Thereafter
and from time to time, each such Person shall (a) promptly submit to Borrower
(with a copy to the Administrative Agent) such additional duly completed and
signed copies of one of such forms as may then be available under then current
United States laws and regulations to avoid, or such evidence as is satisfactory
to Borrower and the Administrative Agent of any available exemption from, United
States withholding taxes in respect of all payments to be made to such Person by
Borrower pursuant to this Agreement and (b) take such steps as shall not be
materially disadvantageous to it, in the reasonable judgment of such Lender, and
as may be reasonably necessary (including the re-designation of its LIBOR
Office, if any) to avoid any requirement of applicable Laws that Borrower make
any deduction or withholding for taxes from amounts payable to such Person.

      11.22 WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN

                                      -89-
<Page>

EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT
TO TRIAL BY JURY.

      11.23 PURPORTED ORAL AMENDMENTS. EACH OBLIGOR EXPRESSLY ACKNOWLEDGES THAT
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY ONLY BE AMENDED OR MODIFIED, OR
THE PROVISIONS HEREOF OR THEREOF WAIVED OR SUPPLEMENTED, BY AN INSTRUMENT IN
WRITING THAT COMPLIES WITH SECTION 11.2. BORROWER AGREES THAT IT WILL NOT RELY
ON ANY COURSE OF DEALING, COURSE OF PERFORMANCE, OR ORAL OR WRITTEN STATEMENTS
BY ANY CREDITOR OR ITS REPRESENTATIVES THAT DOES NOT COMPLY WITH SECTION 11.2 TO
EFFECT AN AMENDMENT, MODIFICATION, WAIVER OR SUPPLEMENT TO THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS.

                                      -90-
<Page>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.

                                   "Borrower"

                                   WHEELING ISLAND GAMING, INC., a West Virginia
                                   corporation

                                   By:      ____________________________________

                                   Title:   ____________________________________

                                   Address for notices:

                                   Wheeling Island Gaming, Inc.
                                   c/o 40 Fountain Plaza
                                   Buffalo, New York  14202
                                   Attention:  Michael D. Corbin,
                                               Vice President Finance
                                   Telecopier: (716) 858-5264
                                   Telephone:  (716) 858-5000

                                   With copies to:

                                   Sportsystems Corporation
                                   40 Fountain Plaza
                                   Buffalo, New York  14202
                                   Attention: Daniel J. Zimmer
                                   (Also copy General Counsel)

                                      -91-
<Page>

                                   BANK OF AMERICA, N.A., as Administrative
                                   Agent and Issuing Lender

                                   By: ____________________________________
                                       Janice Hammond, Administrative Agent

                                   Address for Notices:

                                   Bank of America, N.A.
                                   Entertainment/Media Group
                                   Agency Management
                                   Corporate & Investment Banking
                                   CA9-706-11-03
                                   555 South Flower Street, 17th Floor
                                   Los Angeles, California  90071
                                   Attn:  Janice Hammond, Vice President
                                   Telecopier:  (213) 345-1210
                                   Telephone:  (213) 345-1213

                                      -92-
<Page>

                                   BANK OF AMERICA, N.A., as a Lender

                                   By: __________________________________
                                        Scott Faber, Managing Director

                                   Address:

                                   Bank of America, N.A.
                                   555 South Flower Street, 17th Floor
                                   Los Angeles, California  90071
                                   Attention:  Scott Faber, Managing Director
                                   Telecopier: (213) 345-1196
                                   Telephone:  (213) 345-1215

                                   Pro Rata Share $20,000,000

                                      -93-
<Page>

                                   WELLS FARGO BANK, N.A., as a Lender

                                   By: __________________________________

                                   Title:________________________________

                                   Address:

                                   ______________________________________

                                   ______________________________________

                                   ______________________________________
                                   Attention:
                                   Telecopier:
                                   Telephone:

                                   Pro Rata Share $15,000,000

                                      -94-
<Page>

                                   WESBANCO BANK, INC.

                                   By:___________________________________
                                       David Pell, Senior Vice President

                                   Address:    WesBanco Bank, Inc.
                                               1 Bank Plaza
                                               Wheeling, West Virginia 26003

                                   Attention:  David Pell, Senior Vice President
                                   Telephone:  (304) 234-9212
                                   Telecopier: (304) 234-9484

                                   Pro Rata Share $5,000,000

                                      -95-<Page>

                                                                  Exhibit 10.2

                                                                  EXECUTION COPY

                          Wheeling Island Gaming, Inc.,

                                   as Issuer,

                                       and

                             WDRA Food Service, Inc.

                                       and

                        Wheeling Land Development Corp.,

                                  as Guarantors

                                  $125,000,000

                           10 1/8% Senior Notes due 2009

                               Purchase Agreement

                             dated December 12, 2001

                         Banc of America Securities LLC

                       Wells Fargo Brokerage Services, LLC

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<Table>
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                                Table of Contents

                                                                                                                PAGE
<S>                                                                                                              <C>
SECTION 1. Representations and Warranties.........................................................................3

         (a)      No Registration Required........................................................................3
         (b)      No Integration of Offerings or General Solicitation.............................................3
         (c)      Eligibility for Resale under Rule 144A..........................................................4
         (d)      The Offering Memorandum.........................................................................4
         (e)      The Purchase Agreement..........................................................................4
         (f)      The WHX Purchase Agreement......................................................................4
         (g)      The Registration Rights Agreement...............................................................4
         (h)      The DTC Agreement...............................................................................5
         (i)      Authorization of the Securities and the Exchange Securities.....................................5
         (j)      Authorization of the Indenture..................................................................6
         (k)      Description of the Securities and the Indenture.................................................6
         (l)      No Material Adverse Change......................................................................6
         (m)      Independent Accountants.........................................................................6
         (n)      Preparation of the Financial Statements.........................................................6
         (o)      Incorporation and Good Standing of the Company and its Subsidiaries.............................7
         (p)      Capitalization and Other Capital Stock Matters..................................................7
         (q)      Non-Contravention of Existing Instruments; No Further Authorizations or Approvals
                  Required........................................................................................8
         (r)      No Material Actions or Proceedings..............................................................9
         (s)      Intellectual Property Rights....................................................................9
         (t)      All Necessary Permits, etc.....................................................................10
         (u)      Title to Properties............................................................................10
         (v)      Tax Law Compliance.............................................................................10
         (w)      Company Not an "Investment Company"............................................................11
         (x)      Insurance......................................................................................11
         (y)      No Price Stabilization or Manipulation.........................................................11
         (z)      Solvency.......................................................................................11
         (aa)     No Unlawful Contributions or Other Payments....................................................12
         (bb)     Company's Accounting System....................................................................12
         (cc)     Compliance with Environmental Laws.............................................................12
         (dd)     Periodic Review of Costs of Environmental Compliance...........................................13
         (ee)     ERISA Compliance...............................................................................13
         (ff)     Revolving Credit Facility......................................................................14
         (gg)     Regulation S...................................................................................14
         (hh)     Temporary Global Security......................................................................14

SECTION 2. Purchase, Sale and Delivery of the Securities.........................................................14

         (a)      The Securities.................................................................................14
         (b)      The Closing Date...............................................................................14
         (c)      Delivery of the Securities.....................................................................15
         (d)      Delivery of Offering Memorandum to the Initial Purchasers......................................15
         (e)      Initial Purchasers as Qualified Institutional Buyers...........................................15

SECTION 3. Additional Covenants..................................................................................15

                                      i
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         (a)      Initial Purchasers' Review of Proposed Amendments and Supplements..............................15
         (b)      Amendments and Supplements to the Offering Memorandum and Other Securities Act
                  Matters........................................................................................16
         (c)      Copies of the Offering Memorandum..............................................................16
         (d)      Blue Sky Compliance............................................................................16
         (e)      Use of Proceeds................................................................................17
         (f)      The Depositary.................................................................................17
         (g)      Additional Issuer Information..................................................................17
         (h)      Future Reports to the Initial Purchasers.......................................................17
         (i)      No Integration.................................................................................18
         (j)      Legended Securities............................................................................18
         (k)      PORTAL.........................................................................................18
         (l)      Rating Securities..............................................................................18

SECTION 4. Payment of Expenses...................................................................................18

SECTION 5. Conditions of the Obligations of the Initial Purchasers...............................................19

         (a)      Accountants' Comfort Letter....................................................................19
         (b)      No Material Adverse Change or Ratings Agency Change............................................19
         (c)      Opinion of Counsel for the Company and the Guarantors..........................................20
         (d)      Opinion of Counsel for the Initial Purchasers..................................................20
         (e)      Officers' Certificate..........................................................................20
         (f)      Bring-down Comfort Letter......................................................................20
         (g)      PORTAL Listing.................................................................................20
         (h)      Registration Rights Agreement..................................................................21
         (i)      Concurrent Transactions........................................................................21
         (j)      Additional Documents...........................................................................21

SECTION 6. Reimbursement of Initial Purchasers' Expenses.........................................................21

SECTION 7. Offer, Sale and Resale Procedures.....................................................................22

SECTION 8. Indemnification.......................................................................................23

         (a)      Indemnification of the Initial Purchasers......................................................23
         (b)      Indemnification of the Company, its Directors and Officers.....................................24
         (c)      Notifications and Other Indemnification Procedures.............................................25
         (d)      Settlements....................................................................................25

SECTION 9. Contribution..........................................................................................26

SECTION 10. Termination of this Agreement........................................................................27

SECTION 11. Representations and Indemnities to Survive Delivery..................................................27

SECTION 12. Notices..............................................................................................28

SECTION 13. Successors...........................................................................................28

SECTION 14. Partial Unenforceability.............................................................................29

SECTION 15. Governing Law; Consent to Jurisdiction...............................................................29

         (a)      Governing Law Provisions.......................................................................29

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         (b)      Consent to Jurisdiction........................................................................29

SECTION 16. Default of One or More of the Several Initial Purchasers.............................................29

SECTION 17. General Provisions...................................................................................30
</Table>

SCHEDULES, EXHIBITS AND ANNEX

SCHEDULE A - Initial Purchasers

SCHEDULE B - List of Subsidiaries

EXHIBIT A - Form of Opinion of Proskauer Rose LLP

EXHIBIT B - Form of Opinion of Goodwin & Goodwin, LLP

EXHIBIT C - Form of Opinion of In-house Counsel for the Company and the
Guarantors

EXHIBIT D - Form of Registration Rights Agreement

ANNEX I - Resale Procedures

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                               Purchase Agreement

                                                              December 12, 2001

BANC OF AMERICA SECURITIES LLC
WELLS FARGO BROKERAGE SERVICES, LLC
     As Initial Purchasers
c/o BANC OF AMERICA SECURITIES LLC
9 West 57th Street, 31st Floor
New York, New York 10019

Ladies and Gentlemen:

                  INTRODUCTORY. Wheeling Island Gaming, Inc., a Delaware
corporation (the "Company"), proposes to issue and sell to Banc of America
Securities LLC and Wells Fargo Brokerage Services, LLC (the "Initial
Purchasers"), acting severally and not jointly, the respective amounts as
set forth in SCHEDULE A hereto of $125 million aggregate principal amount
of the Company's 10 1/8% Senior Notes due December 15, 2009 (the "Notes").
Banc of America Securities LLC and Wells Fargo Brokerage Services, LLC have
agreed to act as the Initial Purchasers in connection with the offering and
sale of the Notes.

                  The Notes will be issued pursuant to an indenture, dated as of
December 19, 2001 (the "Indenture"), between the Company, the Guarantors (as
defined below) and U.S. Bank N.A., as trustee (the "Trustee"). Notes issued in
book-entry form will be issued in the name of Cede & Co., as nominee of The
Depository Trust Company (the "Depositary") pursuant to a DTC Agreement, to be
dated as of the Closing Date (as defined in Section 2 hereof) (the "DTC
Agreement"), among the Company, the Guarantors party thereto, the Trustee and
the Depositary.

                  The holders of the Notes will be entitled to the benefits of a
registration rights agreement, to be dated as of December 19, 2001 (the
"Registration Rights Agreement"), among the Company, the Guarantors party
thereto and the Initial Purchasers, substantially in the form of EXHIBIT D
attached hereto, pursuant to which the Company and the Guarantors will agree to
file, within 60 days of the Closing Date, a registration statement with the
Securities and Exchange Commission (the "Commission") registering the Exchange
Securities (as defined below) under the Securities Act of 1933, as amended (the
"Securities Act", which term, as used herein, includes the rules and regulations
of the Commission promulgated thereunder).

                  The payment of principal of, premium, Liquidated Damages (as
defined in the Indenture), if any, and interest on the Notes and the Exchange
Notes (as defined in Section 1(f) hereof) will be fully and unconditionally
guaranteed on a senior unsecured basis, jointly and severally by (i) each of the
Company's subsidiaries listed in SCHEDULE B attached hereto and (ii) any
subsidiary of the Company formed or acquired after the Closing Date that
executes an additional guarantee in accordance with the terms of the Indenture,
and their respective successors and assigns (collectively, the "Guarantors"),
pursuant to their guarantees (the "Guarantees"). The Notes and the Guarantees
attached thereto are herein collectively referred to as the "Securities"; and
the Exchange Notes and the Guarantees attached thereto are herein collectively
referred to as the "Exchange Securities".

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                  The Company understands that the Initial Purchasers propose to
make an offering of the Securities on the terms and in the manner set forth
herein and in the Offering Memorandum (as defined below) and agrees that the
Initial Purchasers may resell, subject to the conditions set forth herein, all
or a portion of the Securities to purchasers (the "Subsequent Purchasers") at
any time after the date of this Agreement. The Securities are to be offered and
sold to or through the Initial Purchasers without being registered with the
Commission under the Securities Act, in reliance upon exemptions therefrom. The
terms of the Securities and the Indenture will require that investors that
acquire Securities expressly agree that Securities may only be resold or
otherwise transferred, after the date hereof, if such Securities are registered
for sale under the Securities Act or if an exemption from the registration
requirements of the Securities Act is available (including the exemptions
afforded by Rule 144A ("Rule 144A") or Regulation S ("Regulation S")
thereunder).

                  The Company has prepared and delivered to the Initial
Purchasers copies of a Preliminary Offering Memorandum, dated November 27, 2001
(the "Preliminary Offering Memorandum"), and has prepared and will deliver to
each Initial Purchaser, copies of the Offering Memorandum, dated December 12,
2001 describing the terms of the Securities, each for use by such Initial
Purchaser in connection with its solicitation of offers to purchase the
Securities. As used herein, the "Offering Memorandum" shall mean, with respect
to any date or time referred to in this Agreement, the Company's Offering
Memorandum, dated December 12, 2001, including amendments or supplements
thereto, any exhibits thereto, in the most recent form that has been prepared
and delivered by the Company to the Initial Purchasers in connection with their
solicitation of offers to purchase Securities. Further, any reference to the
Preliminary Offering Memorandum or the Offering Memorandum shall be deemed to
refer to and include any Additional Issuer Information (as defined in Section 3)
furnished by the Company prior to the completion of the distribution of the
Securities.

                  Prior to November 27, 2001, the Company was a West Virginia
corporation named Wheeling Downs Racing Association, Inc. On November 27, 2001,
the Company reincorporated as a Delaware corporation by merging Wheeling Downs
Racing Association, Inc. into and with Wheeling Island Gaming, Inc., a Delaware
corporation (the "Merger"). Upon consummation of the Merger, each of the shares
of common stock of Wheeling Downs Racing Association, Inc. was converted into
one share of common stock of the Company.

                  As described in the Offering Memorandum, the Company has
entered into a stock redemption agreement (the "WHX Purchase Agreement") dated
November 16, 2001 among the Company, Sportsystems Corporation and WHX
Entertainment Corp. ("WHX"), pursuant to which the Company shall purchase all of
the shares of the Company's common stock held of record by WHX for a total
consideration of $105 million. Of the $105 million total consideration, $90
million is attributable to the purchase price for the shares of the Company's
common stock and $15 million is attributable to a non-compete agreement entered
into with WHX. The Company will use a portion of the net proceeds from the
issuance of the Securities to purchase its common stock from WHX pursuant to the
WHX Purchase Agreement.

                  Simultaneously with the Closing Date, the Company will repay
$12 million of the outstanding balance under its existing credit facility and
enter into a new revolving credit facility (the "Revolving Credit Facility")
dated as of the Closing Date by and among the Company, the guarantor
subsidiaries named therein, Bank of America, N.A., as administrative agent, and
various other lenders party thereto, as described in the Offering Memorandum.
The Revolving Credit Facility will provide for up to $40 million of revolving
credit borrowings.

                                       2
<Page>

                  All references in this Agreement to financial statements and
schedules and other information which is "contained," "included" or "stated" in
the Offering Memorandum (or other references of like import) shall be deemed to
mean and include all such financial statements and schedules and other
information which are incorporated by reference in the Offering Memorandum.
Capitalized terms used herein not otherwise defined shall have the meanings set
forth in the Offering Memorandum.

                  The Company and the Guarantors hereby confirm their agreement
with the Initial Purchasers as follows:

SECTION 1.        Representations and Warranties.

                  The Company and each of the Guarantors, jointly and severally,
hereby represents, warrants and covenants to the Initial Purchasers as follows:

         (a)      No Registration Required.

                  Subject to compliance by the Initial Purchasers with the
         representations and warranties set forth in Section 2(e) hereof and
         with the procedures set forth in Section 7 hereof, it is not necessary
         in connection with the offer, sale and delivery of the Securities to
         the Initial Purchasers and to each Subsequent Purchaser in the manner
         contemplated by this Agreement and the Offering Memorandum to register
         the Securities under the Securities Act or, until such time as the
         Exchange Securities are issued pursuant to an effective registration
         statement, to qualify the Indenture under the Trust Indenture Act of
         1939 (the "Trust Indenture Act," which term, as used herein, includes
         the rules and regulations of the Commission promulgated thereunder).

         (b)      No Integration of Offerings or General Solicitation.

                  Neither the Company nor any Guarantor has directly or
         indirectly, solicited any offer to buy or offered to sell, and will
         not, directly or indirectly, solicit any offer to buy or offer to sell,
         in the United States or to any United States citizen or resident, any
         security which is or would be integrated with the sale of the
         Securities in a manner that would require the Securities to be
         registered under the Securities Act.

                  None of the Company, the Guarantors, their respective
         affiliates (as such term is defined in Rule 501 under the Securities
         Act (each, an "Affiliate")), or any person acting on their behalf
         (other than the Initial Purchasers, as to whom neither the Company nor
         any Guarantor makes any representation or warranty) has engaged or will
         engage, in connection with the offering of the Securities, in any form
         of general solicitation or general advertising within the meaning of
         Rule 502 under the Securities Act.

                  With respect to those Securities sold in reliance upon
         Regulation S: (i) none of the Company, the Guarantors, their respective
         Affiliates, or any person acting on their behalf (other than the
         Initial Purchasers, as to whom neither the Company nor any Guarantor
         makes any representation or warranty) has engaged or will engage in any
         directed selling efforts within the meaning of Regulation S; and (ii)
         each of the Company, the Guarantors, and their respective Affiliates
         and any person acting on their behalf (other than the Initial
         Purchasers, as to whom neither the Company nor any Guarantor makes any
         representation or warranty) has complied and will comply with the
         offering restrictions set forth in Regulation S.

                                      3
<Page>

         (c)      Eligibility for Resale under Rule 144A.

                  The Securities are eligible for resale pursuant to Rule 144A
         and will not be, at the Closing Date, of the same class as securities
         listed on a national securities exchange registered under Section 6 of
         the Exchange Act or quoted in a U.S. automated interdealer quotation
         system.

         (d)      The Offering Memorandum.

                  The Offering Memorandum does not, and at the Closing Date will
         not, include an untrue statement of a 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, not misleading;
         provided that this representation, warranty and agreement shall not
         apply to statements in or omissions from the Offering Memorandum made
         in reliance upon and in conformity with information furnished to the
         Company in writing by the Initial Purchasers expressly for use in the
         Offering Memorandum.

                  Each of the Preliminary Offering Memorandum and the Offering
         Memorandum, as of its date, contains all the information specified in,
         and meeting the requirements of, Rule 144A. Neither the Company nor any
         Guarantor has distributed or will distribute, prior to the later of the
         Closing Date and the completion of the Initial Purchasers' distribution
         of the Securities, any offering material in connection with the
         offering and sale of the Securities other than the Preliminary Offering
         Memorandum or the Offering Memorandum.

         (e)      The Purchase Agreement.

                  This Agreement has been duly authorized, executed and
         delivered by, and is a valid and binding agreement of, the Company and
         each Guarantor, enforceable in accordance with its terms, except as
         rights to indemnification hereunder may be limited by applicable law
         and except as the enforcement hereof may be limited by bankruptcy,
         insolvency, reorganization, moratorium or other similar laws relating
         to or affecting the rights and remedies of creditors or by general
         equitable principles thereunder.

         (f)      The WHX Purchase Agreement.

                  The WHX Purchase Agreement has been duly authorized, executed
         and delivered by, and is a valid and binding agreement of, the Company,
         Sportsystems Corporation and WHX, enforceable in accordance with its
         terms, except as rights to indemnification thereunder may be limited by
         applicable law and except as the enforcement hereof may be limited by
         bankruptcy, insolvency, reorganization, moratorium or other similar
         laws relating to or affecting the rights and remedies of creditors or
         by general equitable principles thereunder.

         (g)      The Registration Rights Agreement.

                  At the Closing Date, the Registration Rights Agreement will be
         duly authorized, executed and delivered by, and will be a valid and
         binding agreement of, the Company and each Guarantor, enforceable in
         accordance with its terms, except as the enforcement thereof may be
         limited by bankruptcy, insolvency, reorganization, moratorium or other
         similar laws relating to or affecting the rights and remedies of
         creditors or by general

                                      4
<Page>

         equitable principles and except as rights to indemnification
         under the Registration Rights Agreement may be limited
         by applicable law. Pursuant to the Registration Rights Agreement, the
         Company and each Guarantor will agree to file with the Commission,
         under the circumstances set forth therein: (i) a registration statement
         under the Securities Act relating to another series of debt securities
         of the Company with terms substantially identical to the Notes (the
         "Exchange Notes") to be offered in exchange for the Notes (the
         "Exchange Offer"); and (ii) to the extent required by the Registration
         Rights Agreement, a shelf registration statement pursuant to Rule 415
         of the Securities Act relating to the resale by certain holders of the
         Notes, and in each case, to use its best efforts to cause such
         registration statements to be declared effective.

         (h)      The DTC Agreement.

                  At the Closing Date, the DTC Agreement will have been duly
         authorized, executed and delivered by, and (assuming the due
         authorization, execution and delivery thereof by the other parties
         thereto) will be a valid and binding agreement of the Company,
         enforceable in accordance with its terms except as the enforcement
         thereof may be limited by bankruptcy, insolvency, reorganization,
         moratorium or other similar laws relating to or affecting the rights
         and remedies of creditors or by general equitable principles.

         (i)      Authorization of the Securities and the Exchange Securities.

                  (i) The Notes to be purchased by the Initial Purchasers from
         the Company are in the form contemplated by the Indenture, have been
         duly authorized for issuance and sale pursuant to this Agreement and
         the Indenture and, at the Closing Date, will have been duly executed by
         the Company and, when authenticated in the manner provided for in the
         Indenture and delivered against payment of the purchase price therefor,
         will constitute valid and binding agreements of the Company,
         enforceable in accordance with their terms, except as the enforcement
         thereof may be limited by bankruptcy, insolvency, reorganization,
         moratorium or other similar laws relating to or affecting the rights
         and remedies of creditors or by general equitable principles and will
         be entitled to the benefits of the Indenture; (ii) the Exchange Notes
         have been duly and validly authorized for issuance by the Company, and
         when issued and authenticated in accordance with the terms of the
         Indenture, the Registration Rights Agreement and the Exchange Offer,
         will constitute valid and binding obligations of the Company,
         enforceable against the Company in accordance with their terms, except
         as the enforcement thereof may be limited by bankruptcy, insolvency,
         reorganization, moratorium, or similar laws relating to or affecting
         enforcement of the rights and remedies of creditors or by general
         principles of equity and will be entitled to the benefits of the
         Indenture; and (iii) the Guarantees of the Notes and the Exchange Notes
         are in the respective forms contemplated by the Indenture, have been
         duly authorized for issuance and sale pursuant to this Agreement and
         the Indenture and, at the Closing Date, will have been duly executed by
         each of the Guarantors and, when the Notes have been authenticated in
         the manner provided for in the Indenture and delivered against payment
         of the purchase price therefor, will constitute valid and binding
         agreements of the Guarantors, enforceable in accordance with their
         terms, except as the enforcement thereof may be limited by bankruptcy,
         insolvency, reorganization, moratorium or other similar laws relating
         to or affecting the rights and remedies of creditors or by general
         equitable principles and will be entitled to the benefits of the
         Indenture.

                                      5
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         (j)      Authorization of the Indenture.

                  The Indenture has been duly authorized by the Company and the
         Guarantors and, at the Closing Date, will have been duly executed and
         delivered by the Company and each Guarantor and will constitute a valid
         and binding agreement of the Company, and each Guarantor enforceable
         against the Company and each Guarantor in accordance with its terms,
         except as the enforcement thereof may be limited by bankruptcy,
         insolvency, reorganization, moratorium or other similar laws relating
         to or affecting the rights and remedies of creditors or by general
         equitable principles.

         (k)      Description of the Securities and the Indenture.

                  The Notes, the Guarantees of the Notes and the Indenture
         conform or will conform in all material respects to the respective
         statements relating thereto contained in the Offering Memorandum. The
         Exchange Notes and the Guarantees of the Exchange Notes will conform in
         all material respects to the respective statements relating thereto
         contained in the Offering Memorandum and the Registration Statement at
         the time such Registration Statement becomes effective.

         (l)      No Material Adverse Change.

                  Except as otherwise disclosed in the Offering Memorandum,
         subsequent to the respective dates as of which information is given in
         the Offering Memorandum: (i) there has been no material adverse change,
         or any development that could reasonably be expected to result in a
         material adverse change, in the condition, financial or otherwise, or
         in the earnings, business, operations or prospects, whether or not
         arising from transactions in the ordinary course of business, of the
         Company and its subsidiaries, considered as one entity (any such change
         is called a "Material Adverse Change"); (ii) the Company and its
         subsidiaries, considered as one entity, have not incurred any material
         liability or obligation, indirect, direct or contingent, not in the
         ordinary course of business nor entered into any material transaction
         or agreement not in the ordinary course of business; and (iii) there
         has been no dividend or distribution of any kind declared, paid or made
         by the Company or, except for dividends paid to the Company or other
         subsidiaries, any of its subsidiaries on any class of capital stock or
         repurchase or redemption by the Company or any of its subsidiaries of
         any class of capital stock.

         (m)      Independent Accountants.

                  PricewaterhouseCoopers LLP (the "Independent Accountants"),
         who have expressed their opinion with respect to the financial
         statements (which term as used in this Agreement includes the related
         notes thereto) and supporting schedules included in the Offering
         Memorandum are independent public or certified public accountants
         within the meaning of Regulation S-X under the Securities Act and the
         Exchange Act.

         (n)      Preparation of the Financial Statements.

                  The financial statements of the Company, together with the
         related schedules and notes, included in the Offering Memorandum
         present fairly the consolidated financial position of the Company and
         its subsidiaries as of and at the dates indicated and the results of
         their operations and cash flows for the periods specified. Such
         financial statements have been prepared in conformity with generally
         accepted

                                      6
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         accounting principles as applied in the United States applied
         on a consistent basis throughout the periods involved, except as may be
         expressly stated in the related notes thereto. The financial data set
         forth in the Offering Memorandum under the captions "Offering
         Memorandum Summary - Summary Financial Data" and "Selected Historical
         Consolidated Financial Data" fairly present the information set forth
         therein on a basis consistent with that of the audited financial
         statements contained in the Offering Memorandum. The pro forma
         financial statements of the Company and its subsidiaries, together with
         the related notes, included in the Offering Memorandum and the pro
         forma financial data set forth in the Offering Memorandum under the
         caption "Offering Memorandum Summary - Summary Financial Data" and
         elsewhere in the Offering Memorandum present fairly the information
         contained therein, have been prepared in accordance with the
         Commission's rules and guidelines with respect to pro forma financial
         statements and have been properly presented on the bases described
         therein, and the assumptions used in the preparation thereof are
         reasonable and the adjustments used therein are appropriate to give
         effect to the transactions and circumstances referred to therein. The
         acquisition by the Company of all of the shares of its common stock
         owned by WHX will be accounted for using purchase accounting under
         Financial Accounting Standards No. 141, "Business Combinations."

         (o)      Incorporation and Good Standing of the Company and its
                  Subsidiaries.

                  Each of the Company and its subsidiaries has been duly
         incorporated and is validly existing as a corporation in good standing
         under the laws of the jurisdiction of its incorporation and has
         corporate power and authority to own, lease and operate its properties
         and to conduct its business as described in the Offering Memorandum
         and, in the case of the Company and the Guarantors, to enter into and
         perform their respective obligations under each of this Agreement, the
         Registration Rights Agreement, the DTC Agreement, the Securities, the
         Exchange Securities, the Indenture, the WHX Purchase Agreement and the
         Revolving Credit Facility. Each of the Company and each subsidiary is
         duly qualified as a foreign corporation to transact business and is in
         good standing in each jurisdiction in which such qualification is
         required, whether by reason of the ownership or leasing of property or
         the conduct of business, except for such jurisdictions where the
         failure to so qualify or to be in good standing would not, individually
         or in the aggregate, result in a Material Adverse Change. All of the
         issued and outstanding capital stock of each subsidiary has been duly
         authorized and validly issued, is fully paid and nonassessable and is
         owned by the Company, directly or through subsidiaries, free and clear
         of any security interest, mortgage, pledge, lien, encumbrance or claim.
         The Company does not own or control, directly or indirectly, any
         corporation, association or other entity other than the subsidiaries
         listed in SCHEDULE B. The Merger has been consummated in accordance
         with the General Corporation Law of the State of Delaware and the West
         Virginia Corporation Act of the State of West Virginia. Each share of
         common stock of Wheeling Downs Association, Inc. has been converted
         into one validly issued, fully paid and non-assessable share of common
         stock of the Company.

         (p)      Capitalization and Other Capital Stock Matters.

                  At September 30, 2001, on a consolidated basis, after giving
         pro forma effect to (i) the issuance and sale of the Securities
         pursuant hereto and (ii) the application of the proceeds from the sale
         of the Securities in the manner described under the caption "Use of
         Proceeds" in the Offering Memorandum, the Company would have an
         authorized and

                                      7
<Page>

         outstanding capitalization as set forth in the Offering
         Memorandum under the caption "Capitalization". All of the outstanding
         shares of Common Stock have been duly authorized and validly issued,
         are fully paid and nonassessable and have been issued in compliance
         with federal and state securities laws. None of the outstanding shares
         of Common Stock were issued in violation of any preemptive rights,
         rights of first refusal or other similar rights to subscribe for or
         purchase securities of the Company. There are no authorized or
         outstanding options, warrants, preemptive rights, rights of first
         refusal or other rights to purchase, or equity or debt securities
         convertible into or exchangeable or exercisable for, any capital stock
         of the Company or any of its subsidiaries other than those accurately
         described in the Offering Memorandum. The execution, delivery and
         performance of, and consummation of the transactions contemplated by,
         the WHX Purchase Agreement will be permitted under Section 170 of the
         General Corporation Law of the State of Delaware.

         (q)      Non-Contravention of Existing Instruments; No Further
                  Authorizations or Approvals Required.

                  Neither the Company nor any of its subsidiaries is in
         violation of its charter or by-laws or is in default (or, with the
         giving of notice or lapse of time, would be in default) ("Default")
         under any indenture, mortgage, loan or credit agreement, note,
         contract, franchise, lease or other instrument to which the Company or
         any of its subsidiaries is a party or by which it or any of them may be
         bound, or to which any of the property or assets of the Company or any
         of its subsidiaries is subject, including this Agreement, the
         Registration Rights Agreement, the DTC Agreement, the Indenture, the
         WHX Purchase Agreement, the Revolving Credit Facility (each such
         foregoing document being referred to as an "Existing Instrument"),
         except for such Defaults as would not, individually or in the
         aggregate, result in a Material Adverse Change.

                  On the Closing Date, neither the Company nor any of its
         subsidiaries will be in Default under the Registration Rights
         Agreement, the DTC Agreement, the Indenture, the WHX Purchase Agreement
         or the Revolving Credit Facility or the Indenture.

                  The Company's and each Guarantor's execution, delivery and
         performance of this Agreement, the Registration Rights Agreement, the
         DTC Agreement, the Indenture, the WHX Purchase Agreement, the Revolving
         Credit Facility and any other agreements or documents relating to any
         of the foregoing, and the issuance and delivery of the Securities or
         the Exchange Securities, and the consummation of the transactions
         contemplated hereby and thereby and by the Offering Memorandum: (i)
         will not result in any violation of the provisions of the charter or
         by-laws of the Company or any subsidiary; (ii) will not conflict with
         or constitute a breach of, or Default or a Debt Repayment Triggering
         Event (as defined below) under, or result in the creation or imposition
         of any lien, charge or encumbrance upon any property or assets of the
         Company or any of its subsidiaries pursuant to, or require the consent
         of any other party to, any Existing Instrument, except for such
         conflicts, breaches, Defaults, liens, charges or encumbrances as would
         not, individually or in the aggregate, result in a Material Adverse
         Change; and (iii) will not result in any violation of any law,
         administrative regulation or administrative or court decree (including,
         without limitation, any Gaming Law, as such term is defined below)
         applicable to the Company or any subsidiary. No consent, approval,
         authorization or other order of, or registration or filing with, any
         court or other governmental or regulatory authority or agency,
         including, without limitation, any Gaming Authority (as defined in
         clause 1(t) below) is required for the Company's or

                                      8

<Page>

         each Guarantor's execution, delivery and performance of this Agreement,
         the Registration Rights Agreement, the DTC Agreement, the Indenture,
         the WHX Purchase Agreement, the Revolving Credit Facility and any other
         agreements or documents relating to any of the foregoing, or the
         issuance and delivery of the Securities or the Exchange Securities, or
         the consummation of the transactions contemplated hereby and thereby
         and by the Offering Memorandum, except such as have been obtained or
         made by the Company or the Guarantors and are in full force and effect
         under the Securities Act, applicable state securities, Gaming Laws, or
         blue sky laws and except such as may be required by federal and state
         securities laws with respect to the Company's or each Guarantor's
         obligations under the Registration Rights Agreement. As used herein, a
         "Debt Repayment Triggering Event" means any event or condition which
         gives, or with the giving of notice or lapse of time would give, the
         holder of any note, debenture or other evidence of indebtedness (or any
         person acting on such holder's behalf) the right to require the
         repurchase, redemption or repayment of all or a portion of such
         indebtedness by the Company or any of its subsidiaries, and "Gaming
         Law" means the racing and gaming laws of any jurisdiction or
         jurisdictions to which the Company, any of its Subsidiaries or any of
         the Guarantors is, or may at any time after the date of this Agreement,
         be subject.

         (r)      No Material Actions or Proceedings.

                  There are no legal or governmental actions, suits or
         proceedings pending or, to the best of the Company's knowledge: (i)
         threatened against or affecting the Company or any of its subsidiaries;
         or (ii) which have as the subject thereof any property owned or leased
         by, the Company or any of its subsidiaries, where in any such case
         there is a reasonable possibility that such action, suit or proceeding
         might be determined adversely to the Company or such subsidiary and any
         such action, suit or proceeding, if so determined adversely, would
         reasonably be expected to result in a Material Adverse Change or
         adversely affect the consummation of the transactions contemplated by
         this Agreement and by the Offering Memorandum in the "Use of Proceeds"
         section. No material labor dispute with the employees of the Company or
         any of its subsidiaries exists or, to the best of the Company's
         knowledge, is threatened or imminent.

         (s)      Intellectual Property Rights.

                  The Company and its subsidiaries own or possess sufficient
         trademarks, trade names, patent rights, copyrights, licenses,
         approvals, trade secrets and other similar rights (collectively,
         "Intellectual Property Rights") reasonably necessary to conduct their
         businesses as now conducted; and the expected expiration of any of such
         Intellectual Property Rights would not result in a Material Adverse
         Change. Neither the Company nor any of its subsidiaries has received
         any notice of infringement or conflict with asserted Intellectual
         Property Rights of others, which infringement or conflict, if the
         subject of an unfavorable decision, ruling or finding would result in a
         Material Adverse Change.

                                      9

<Page>

         (t)      All Necessary Permits, etc.

                  The Company and each of its subsidiaries possesses such valid
         and current certificates, authorizations, permits or licenses issued by
         the appropriate state, federal or foreign regulatory agencies or bodies
         (including any Gaming Authority, as such term is defined below)
         necessary to conduct their respective businesses, including but not
         limited to all certificates, authorizations, permits and licenses
         required to conduct their gaming and live and simulcast racing and
         pari-mutuel wagering business in the State of West Virginia, and
         neither the Company nor any of its subsidiaries has received any notice
         of proceedings relating to the revocation or modification of, or
         non-compliance with, any such certificate, authorization, permit or
         license which, singly or in the aggregate, if the subject of an
         unfavorable decision, ruling or finding, could result in a Material
         Adverse Change.

                  For the purposes of this Agreement, "Gaming Authority" means
         any agency, authority, board, bureau, commission, department, office or
         instrumentality of any nature whatsoever of the United States federal
         or foreign government, any state, province or any city or other
         political subdivision or otherwise, and whether now or hereafter in
         existence, or any officer or official thereof, with authority to
         regulate any racing or gaming operation (or proposed racing or gaming
         operation) owned, managed or operated by the Company or any subsidiary
         of the Company.

         (u)      Title to Properties.

                  The Company and each of its subsidiaries has good and
         marketable title to all the properties and assets reflected as owned in
         the financial statements referred to in Section 1(n) above (or
         elsewhere in the Offering Memorandum), in each case free and clear of
         any security interests, mortgages, liens, encumbrances, equities,
         claims and other defects, except such as do not materially and
         adversely affect the value of such property and do not materially
         interfere with the use made or proposed to be made of such property by
         the Company or such subsidiary. The real property, improvements,
         equipment and personal property held under lease by the Company or any
         of its subsidiaries are held under valid and enforceable leases, with
         such exceptions as are not material and do not materially interfere
         with the use made or proposed to be made of such real property,
         improvements, equipment or personal property by the Company or such
         subsidiary.

         (v)      Tax Law Compliance.

                  The Company and its subsidiaries have filed all necessary
         federal, state and foreign income and franchise tax returns and have
         paid all taxes required to be paid by any of them and, if due and
         payable, any related or similar assessment, fine or penalty levied
         against any of them except as may be being contested in good faith and
         by appropriate proceedings. The Company and its subsidiaries have made
         adequate charges, accruals and reserves in the applicable financial
         statements referred to in Section 1(n) above in respect of all federal,
         state and foreign income and franchise taxes for all periods as to
         which the tax liability of the Company or any of its subsidiaries has
         not been finally determined, other than in respect of a 10% surcharge
         and other payments to the State of West Virginia imposed by House Bill
         102 (enacted by the State of West Virginia on April 21, 2001) for the
         three months ended September 30, 2001. Commencing on October 1, 2001,
         the Company has made adequate accruals in its financial statements

                                      10

<Page>

         in respect of the 10% surcharge and such other payments for the period
         commencing on July 1, 2001.

         (w)      Company Not an "Investment Company".

                  The Company has been advised of the rules and requirements
         under the Investment Company Act of 1940, as amended (the "Investment
         Company Act"). The Company is not, and after receipt of payment for the
         Securities will not be, an "investment company" within the meaning of
         Investment Company Act and will conduct its business in a manner so
         that it will not become subject to the Investment Company Act.

         (x)      Insurance.

                  Each of the Company and its subsidiaries are insured by
         recognized, financially sound institutions with policies in such
         amounts and with such deductibles and covering such risks as are
         generally deemed adequate and customary for their businesses including,
         but not limited to, policies covering real and personal property owned
         or leased by the Company and its subsidiaries against theft, damage,
         destruction, acts of vandalism, floods and earthquakes. The Company has
         no reason to believe that: (i) it or any of its subsidiaries will not
         be able to renew its existing insurance coverage as and when such
         policies expire; or (ii) it or any of its subsidiaries will not be able
         to obtain comparable coverage from similar institutions as may be
         necessary or appropriate to conduct its business as now conducted and
         at a cost that would not result in a Material Adverse Change. Neither
         of the Company nor any of its subsidiaries has been denied any
         insurance coverage which it has sought or for which it has applied.

         (y)      No Price Stabilization or Manipulation.

                  Neither the Company nor any Guarantor has taken and will take,
         directly or indirectly, any action designed to or that might be
         reasonably expected to cause or result in stabilization or manipulation
         of the price of any security of the Company to facilitate the sale or
         resale of the Securities.

         (z)      Solvency.

                  The Company and each Guarantor is, and after giving effect to
         (i) the sale of the Securities and application of the proceeds
         therefrom, (ii) the repurchase of the Company's common stock pursuant
         to the WHX Purchase Agreement and (iii) any borrowings under the
         Revolving Credit Facility will be, Solvent. As used herein, the term
         "Solvent" means, with respect to the Company and each Guarantor on a
         particular date, that on such date; (i) the fair market value of its
         assets is greater than the total amount of its liabilities (including
         contingent liabilities); (ii) the present fair salable value of its
         assets is greater than the amount that will be required to pay the
         probable liabilities on its debts as they become absolute and matured;
         (iii) it is able to realize upon its assets and pay its debts and other
         liabilities, including contingent obligations, as they mature; and (iv)
         it does not have unreasonably small capital to carry on its business as
         conducted and as proposed to be conducted.

                                      11

<Page>

         (aa)     No Unlawful Contributions or Other Payments.

                  Neither the Company nor any of its subsidiaries nor, to the
         best of the Company's or any Guarantor's knowledge, any employee or
         agent of the Company or any subsidiary, has made any contribution or
         other payment to any official of, or candidate for, any federal, state
         or foreign office in violation of any law or of the character necessary
         to be disclosed in the Offering Memorandum in order to make the
         statements therein not misleading.

         (bb)     Company's Accounting System.

                  The Company maintains a system of accounting controls
         sufficient to provide reasonable assurances that (i) transactions are
         executed in accordance with management's general or specific
         authorization; (ii) transactions are recorded as necessary to permit
         preparation of financial statements in conformity with generally
         accepted accounting principles as applied in the United States and to
         maintain accountability for assets; (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
         existing assets at reasonable intervals and appropriate action is taken
         with respect to any differences.

         (cc)     Compliance with Environmental Laws.

                  Except as would not, individually or in the aggregate, result
         in a Material Adverse Change:

                  (i)      neither the Company nor any of its subsidiaries is in
         violation of any federal, state, local or foreign law or regulation
         relating to pollution or protection of human health or the environment
         (including, without limitation, ambient air, surface water,
         groundwater, land surface or subsurface strata) or wildlife, including
         without limitation, laws and regulations relating to emissions,
         discharges, releases or threatened releases of chemicals, pollutants,
         contaminants, wastes, toxic substances, hazardous substances, petroleum
         and petroleum products (collectively, "Materials of Environmental
         Concern"), or otherwise relating to the manufacture, processing,
         distribution, 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 any permits or other governmental authorizations required for the
         operation of the business of the Company or its subsidiaries under
         applicable Environmental Laws, or noncompliance with the terms and
         conditions thereof, nor has the Company or any of its subsidiaries
         received any written communication, whether from a governmental
         authority, citizens group, employee or otherwise, that alleges that the
         Company or any of its subsidiaries is in violation of any Environmental
         Law;

                  (ii)     there is no claim, action or cause of action filed
         with a court or governmental authority, no investigation with respect
         to which the Company or any Guarantor has received written notice, and
         no written notice by any person or entity alleging potential liability
         for investigatory costs, cleanup costs, governmental responses costs,
         natural resources damages, property damages, personal injuries,
         attorneys' fees or penalties arising out of, based on or resulting from
         the presence, or release into the environment, of any Material of
         Environmental Concern at any location owned, leased or

                                      12

<Page>

         operated by the Company or any of its subsidiaries, now or in the past
         (collectively, "Environmental Claims"), pending or, to the best of the
         Company's or any Guarantor's knowledge, threatened against the Company
         or any of its subsidiaries or any person or entity whose liability for
         any Environmental Claim the Company or any of its subsidiaries has
         retained or assumed either contractually or by operation of law; and

                  (iii)    to the best of the Company's or any Guarantor's
         knowledge, there are no past or present actions, activities,
         circumstances, conditions, events or incidents, including, without
         limitation, the release, emission, discharge, presence or disposal of
         any Material of Environmental Concern, that reasonably could result in
         a violation of any Environmental Law or form the basis of a potential
         Environmental Claim against the Company or any of its subsidiaries or
         against any person or entity whose liability for any Environmental
         Claim the Company or any of its subsidiaries has retained or assumed
         either contractually or by operation of law.

         (dd)     Periodic Review of Costs of Environmental Compliance.

                  In the ordinary course of its business, the Company conducts a
         periodic review of the effect of Environmental Laws on the business,
         operations and properties of the Company and its subsidiaries, in the
         course of which it identifies and evaluates associated costs and
         liabilities (including, without limitation, any capital or operating
         expenditures required for clean-up, 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). On the basis of such review and the amount of its
         established reserves, the Company has reasonably concluded that such
         associated costs and liabilities would not, individually or in the
         aggregate, result in a Material Adverse Change.

         (ee)     ERISA Compliance.

                  The Company and its subsidiaries and any "employee benefit
         plan" (as defined under the Employee Retirement Income Security Act of
         1974, as amended, and the regulations and published interpretations
         thereunder (collectively, "ERISA")) established or maintained by the
         Company, its subsidiaries or their "ERISA Affiliates" (as defined
         below) are in compliance in all material respects with ERISA. "ERISA
         Affiliate" means, with respect to the Company or a subsidiary, any
         member of any group of organizations described in Sections 414 of the
         Internal Revenue Code of 1986, as amended, and the regulations and
         published interpretations thereunder (the "Code") of which the Company
         or such subsidiary is a member. No "reportable event" (as defined under
         ERISA) has occurred or is reasonably expected to occur with respect to
         any "employee benefit plan" established or maintained by the Company,
         its subsidiaries or any of their ERISA Affiliates. No "employee benefit
         plan" established or maintained by the Company, its subsidiaries or any
         of their ERISA Affiliates, if such "employee benefit plan" were
         terminated, would have any "amount of unfunded benefit liabilities" (as
         defined under ERISA). Neither the Company, its subsidiaries nor any of
         their ERISA Affiliates has incurred or reasonably expects to incur any
         liability under: (i) Title IV of ERISA with respect to termination of,
         or withdrawal from, any "employee benefit plan"; or (ii) Sections 412,
         4971, 4975 or 4980B of the Code. Each "employee benefit plan"
         established or maintained by the Company, its subsidiaries or any of
         their ERISA Affiliates that is intended to be qualified under Section
         401 of the Code is so qualified

                                      13

<Page>

         and nothing has occurred, whether by action or failure to act, which
         would cause the loss of such qualification.

         (ff)     Revolving Credit Facility.

                  The Revolving Credit Facility has been duly and validly
         authorized by the Company and, when duly executed and delivered by the
         Company, will be the valid and legally binding obligation of the
         Company, enforceable in accordance with its terms, except as the
         enforcement thereof may be limited by bankruptcy, insolvency,
         reorganization, moratorium or other similar laws relating to or
         affecting the rights and remedies of creditors or by general equitable
         principles.

         (gg)     Regulation S.

                  The Company, the Guarantors and their respective affiliates
         and all persons acting on their behalf (other than the Initial
         Purchasers, as to whom the Company and the Guarantors make no
         representation) have complied with and will comply with the offering
         restrictions requirements of Regulation S in connection with the
         offering of the Securities outside the United States and, in connection
         therewith, the Offering Memorandum will contain the disclosure required
         by Rule 902 of the Securities Act.

         (hh)     Temporary Global Security.

                  The Securities 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 of the Securities Act
         and only upon certification of beneficial ownership of such Securities
         by non-U.S. persons or U.S. persons who purchased such Securities in
         transactions that were exempt from the registration requirements of the
         Securities Act.

                  Any certificate signed by an officer of the Company or any
         Guarantor and delivered to the Initial Purchasers or to counsel for the
         Initial Purchasers pursuant hereto shall be deemed to be a
         representation and warranty by the Company or such Guarantor to the
         Initial Purchasers as to the matters set forth therein.

SECTION 2. Purchase, Sale and Delivery of the Securities.

         (a)      The Securities.

                  The Company agrees to issue and sell to the Initial Purchasers
         all of the Securities upon the terms herein set forth. On the basis of
         the representations, warranties and agreements herein contained, and
         upon the terms but subject to the conditions herein set forth, each of
         the Initial Purchasers agrees to purchase from the Company the
         aggregate principal amount of Securities shown opposite its name in
         SCHEDULE A at a purchase price of 97.5% of the principal amount thereof
         payable on the Closing Date.

         (b)      The Closing Date.

                  Delivery of certificates for the Securities in definitive form
         to be purchased by the Initial Purchasers and payment therefor shall be
         made at the offices of Shearman & Sterling, 599 Lexington Avenue, New
         York, NY 10022 (or such other place as may be

                                      14

<Page>

         agreed to by the Company and Initial Purchaser), at 9:00 a.m. New York
         City time, on December 19, 2001, or such other time and date as the
         Initial Purchasers shall designate by notice to the Company (the time
         and date of such closing are called the "Closing Date"). The Company
         hereby acknowledges that circumstances under which the Initial
         Purchasers may provide notice to postpone the Closing Date as
         originally scheduled include, but are in no way limited to, any
         determination by the Company or the Initial Purchasers to recirculate
         to investors copies of an amended or supplemented Offering Memorandum
         or a delay as contemplated by the provisions of Section 16 hereof.

         (c)      Delivery of the Securities.

                  The Company shall deliver, or cause to be delivered, to Banc
         of America Securities LLC for its account certificates for the
         Securities at the Closing Date against the irrevocable release of a
         wire transfer of immediately available funds for the amount of the
         purchase price therefor. The certificates for the Securities shall be
         in such denominations and registered in the name of Cede & Co., as
         nominee of the Depository, pursuant to the DTC Agreement, and shall be
         made available for inspection on the business day preceding the Closing
         Date at a location in New York City, as the Initial Purchasers may
         designate. Time shall be of the essence, and delivery at the time and
         place specified in this Agreement is a further condition to the
         obligations of the Initial Purchasers.

         (d)      Delivery of Offering Memorandum to the Initial Purchasers.

                  Not later than 12:00 p.m. on the second business day following
         the date of this Agreement, the Company shall delivery or cause to be
         delivered copies of the Offering Memorandum in such quantities and at
         such places as the Initial Purchasers shall reasonably request.

         (e)      Initial Purchasers as Qualified Institutional Buyers.

                  Each of the Initial Purchasers severally represents and
         warrants to, and agrees with, the Company that it is a "qualified
         institutional buyer" within the meaning of Rule 144A (a "Qualified
         Institutional Buyer") and an "accredited investor" within the meaning
         of Rule 501 under the Securities Act (an "Accredited Investor").

SECTION 3. Additional Covenants.

                  The Company and, as applicable, each Guarantor, jointly and
severally, further covenant and agree with the Initial Purchasers as follows:

         (a)      Initial Purchasers' Review of Proposed Amendments and
                  Supplements.

                  Prior to amending or supplementing the Offering Memorandum,
         the Company shall furnish to the Initial Purchasers for review a copy
         of each such proposed amendment or supplement, and the Company shall
         not use any such proposed amendment or supplement to which the Initial
         Purchasers reasonably object.

                                      15

<Page>

         (b)      Amendments and Supplements to the Offering Memorandum and
                  Other Securities Act Matters.

                  If, prior to the completion of the placement of the Securities
         by the Initial Purchasers with the Subsequent Purchasers, any event
         shall occur or condition exist as a result of which it is necessary to
         amend or supplement the Offering Memorandum in order to make the
         statements therein, in the light of the circumstances when the Offering
         Memorandum is delivered to a purchaser, not misleading, or if in the
         opinion of the Initial Purchasers or counsel for the Initial Purchasers
         it is otherwise necessary to amend or supplement the Offering
         Memorandum to comply with law, the Company agrees to promptly prepare
         (subject to Section 3(a) hereof), and furnish at its own expense to the
         Initial Purchasers, amendments or supplements to the Offering
         Memorandum so that the statements in the Offering Memorandum as so
         amended or supplemented will not, in the light of the circumstances
         when the Offering Memorandum is delivered to a purchaser, be misleading
         or so that the Offering Memorandum, as amended or supplemented, will
         comply with law.

                  Following the consummation of the Exchange Offer or the
         effectiveness of an applicable shelf registration statement and for so
         long as the Securities are outstanding if, in the reasonable judgment
         of the Initial Purchasers, the Initial Purchasers or any of their
         affiliates (as such term is defined in the rules and regulations under
         the Securities Act) is required to deliver a prospectus in connection
         with sales of, or market-making activities with respect to, such
         securities, (A) to periodically amend the applicable registration
         statement so that the information contained therein complies with the
         requirements of Section 10(a) of the Securities Act, (B) to amend the
         applicable registration statement or supplement the related prospectus
         or the documents incorporated therein when necessary to reflect any
         material changes in the information provided therein so that the
         registration statement and the prospectus will not contain any untrue
         statement of a material fact or omit to state any material fact
         necessary in order to make the statements therein, in the light of the
         circumstances existing as of the date the prospectus is so delivered,
         not misleading and (C) to provide the Initial Purchasers with copies of
         each amendment or supplement filed and such other documents as the
         Initial Purchasers may reasonably request.

                  The Company and each Guarantor hereby expressly acknowledges
         that the indemnification and contribution provisions of Sections 8 and
         9 hereof are specifically applicable and relate to each offering
         memorandum, registration statement, prospectus, amendment or supplement
         referred to in this Section 3(b).

         (c)      Copies of the Offering Memorandum.

                  The Company agrees to furnish the Initial Purchasers, without
         charge, as many copies of the Offering Memorandum and any amendments
         and supplements thereto as they shall have reasonably requested.

         (d)      Blue Sky Compliance.

                  The Company and each Guarantor shall cooperate with the
         Initial Purchasers and counsel for the Initial Purchasers to qualify or
         register the Securities for sale under (or obtain exemptions from the
         application of) the Blue Sky or state securities laws of those
         jurisdictions designated by the Initial Purchasers, shall comply with
         such laws and

                                      16

<Page>

         shall continue such qualifications, registrations and exemptions in
         effect so long as required for the distribution of the Securities.
         Neither the Company nor any Guarantor shall be required to qualify as a
         foreign corporation or to take any action that would subject it to
         general service of process in any such jurisdiction where it is not
         presently qualified or where it would be subject to taxation as a
         foreign corporation. The Company will advise the Initial Purchasers
         promptly of the suspension of the qualification or registration of (or
         any such exemption relating to) the Securities for offering, sale or
         trading in any jurisdiction or any initiation or threat of any
         proceeding for any such purpose, and in the event of the issuance of
         any order suspending such qualification, registration or exemption,
         the Company shall use its best efforts to obtain the withdrawal
         thereof at the earliest possible moment.

         (e)      Use of Proceeds.

                  The Company shall apply the net proceeds from the sale of the
         Securities sold by it in the manner described under the caption "Use of
         Proceeds" in the Offering Memorandum.

         (f)      The Depositary.

                  The Company will cooperate with the Initial Purchasers and use
         its best efforts to permit the Securities to be eligible for clearance
         and settlement through the facilities of the Depositary.

         (g)      Additional Issuer Information.

                  For so long as the Company is not subject to Section 13 or 15
         of the Exchange Act, for the benefit of holders and beneficial owners
         from time to time of Securities, the Company shall furnish, at its
         expense, upon request, to holders and beneficial owners of Securities
         and prospective purchasers of Securities information ("Additional
         Issuer Information") satisfying the requirements of subsection of Rule
         144A. At any time when the Company is subject to the reporting
         requirements of Section 13 or 15 of the Exchange Act, the Company
         covenants that it will file the reports required to be filed by it
         under the Securities Act and Section 13(a) and 15(d) of the Exchange
         Act and the rules and regulations adopted by the Commission thereunder.

         (h)      Future Reports to the Initial Purchasers.

                  For so long as any Securities or Exchange Securities remain
         outstanding, the Company will furnish to Banc of America Securities
         LLC: (i) as soon as practicable after the end of each fiscal year,
         copies of the Annual Report of the Company containing the balance sheet
         of the Company as of the close of such fiscal year and statements of
         income, stockholders' equity and cash flows for the year then ended and
         the opinion thereon of the Company's independent public or certified
         public accountants; (ii) as soon as practicable after the filing
         thereof, copies of each proxy statement, Annual Report on Form 10-K,
         Quarterly Report on Form 10-Q, Current Report on Form 8-K or other
         report filed by the Company with the Commission, the NASD or any
         securities exchange, if any; and (iii) as soon as available, copies of
         any report or communication of the Company mailed generally to holders
         of its capital stock or debt securities (including the holders of the
         Securities).

                                      17

<Page>

         (i)      No Integration.

                  The Company agrees that it will not and will cause its
         Affiliates not to make any offer or sale of securities of the Company
         of any class if, as a result of the doctrine of "integration" referred
         to in Rule 502 under the Securities Act, such offer or sale would
         render invalid (for the purpose of (i) the sale of the Securities by
         the Company to the Initial Purchasers, (ii) the resale of the
         Securities by the Initial Purchasers to Subsequent Purchasers or (iii)
         the resale of the Securities by such Subsequent Purchasers to others)
         the exemption from the registration requirements of the Securities Act
         provided by Section 4(2) thereof or by Rule 144A or by Regulation S
         thereunder or otherwise.

         (j)      Legended Securities.

                  Each certificate for a Note will bear the legend contained in
         "Transfer Restrictions" in the Offering Memorandum for the time period
         and upon the other terms stated in the Offering Memorandum.

         (k)      PORTAL.

                  The Company will use its best efforts to cause the Notes to be
         eligible for the National Association of Securities Dealers, Inc.
         PORTAL market (the "PORTAL market").

         (l)      Rating Securities.

                  The Company shall take all reasonable action necessary to
         enable Standard & Poor's Ratings Services, a division of McGraw Hill,
         Inc. ("S&P"), and Moody's Investor Services, Inc. ("Moody's") to
         provide their respective credit ratings to the Securities at or prior
         to the time of their initial issuance

                  Banc of America Securities LLC, on behalf of the Initial
Purchasers may, in its sole discretion, waive in writing the performance by the
Company of any one or more of the foregoing covenants or extend the time for
their performance.

SECTION 4. Payment of Expenses.

                  The Company and the Guarantors jointly and severally agree to
pay all costs, fees and expenses incurred in connection with the performance of
their obligations hereunder and in connection with the transactions contemplated
hereby, including without limitation: (i) all expenses incident to the issuance
and delivery of the Securities (including all printing and engraving costs);
(ii) all necessary issue, transfer and other stamp taxes in connection with the
issuance and sale of the Securities to the Initial Purchasers; (iii) all fees
and expenses of the Company's and the Guarantors' counsel, independent public or
certified public accountants and other advisors; (iv) all costs and expenses
incurred in connection with the preparation, printing, filing, shipping and
distribution of each preliminary Offering Memorandum and the Offering Memorandum
(including financial statements and exhibits), and all amendments and
supplements thereto, this Agreement, the Registration Rights Agreement, the
Indenture, the DTC Agreement and the Notes and the Guarantees; (v) all filing
fees, attorneys' fees and expenses incurred by the Company, the Guarantors or
the Initial Purchasers in connection with qualifying or registering (or
obtaining exemptions from the qualification or registration of) all or any part
of the Securities for offer and sale under the Blue Sky laws and, if requested
by the Initial Purchasers, preparing and printing a "Blue Sky Survey" or
memorandum, and any supplements

                                      18
<Page>

thereto, advising the Initial Purchasers of such qualifications,
registrations and exemptions; (vi) the fees and expenses of the Trustee,
including the fees and disbursements of counsel for the Trustee in connection
with the Indenture, the Securities and the Exchange Securities; (vii) any
fees payable in connection with the rating of the Securities or the Exchange
Securities with the ratings agencies and the listing of the Securities with
the PORTAL market; (viii) any filing fees incident to, and any reasonable
fees and disbursements of counsel to the Initial Purchasers in connection
with the review by the National Association of Securities Dealers, Inc., if
any, of the terms of the sale of the Securities or the Exchange Securities;
(ix) all fees and expenses (including reasonable fees and expenses of
counsel) of the Company and the Guarantors in connection with approval of the
Securities by the Depository for "book-entry" transfer, and (x) the
performance by the Company and the Guarantors of their respective other
obligations under this Agreement. Except as provided in this Section 4,
Section 6, Section 8 and Section 9 hereof, each of the Initial Purchasers
shall pay its own expenses, including the fees and disbursements of its
respective counsel.

SECTION 5. Conditions of the Obligations of the Initial Purchasers.

                  The obligations of the Initial Purchasers to purchase and pay
for the Securities as provided herein on the Closing Date shall be subject to
the accuracy of the representations and warranties on the part of the Company
and the Guarantors set forth in Section 1 hereof as of the date hereof and as of
the Closing Date as though then made and to the timely performance by the
Company and the Guarantors of their respective covenants and other obligations
hereunder, and to each of the following additional conditions:

         (a)      Accountants' Comfort Letter.

                  On the date hereof, the Initial Purchasers shall have received
         from the Independent Accountants a letter dated the date hereof
         addressed to the Initial Purchasers, in form and substance satisfactory
         to the Initial Purchasers, containing statements and information of the
         type ordinarily included in accountant's "comfort letters" to the
         Initial Purchasers, delivered according to Statement of Auditing
         Standards Nos. 72 and 76 (or any successor bulletins), with respect to
         the audited and unaudited financial statements and certain financial
         information contained in the Offering Memorandum.

         (b)      No Material Adverse Change or Ratings Agency Change.

                  For the period from and after the date of this Agreement and
         prior to the Closing Date:

                  (i)      in the judgment of the Initial Purchasers there shall
         not have occurred any Material Adverse Change; and

                  (ii)     there shall not have occurred any downgrading, nor
         shall any notice have been given of any intended or potential
         downgrading or of any review for a possible change that does not
         indicate the direction of the possible change, in the rating accorded
         any securities of the Company or any of its subsidiaries by any
         "nationally recognized statistical rating organization" as such term is
         defined for purposes of Rule 436 under the Securities Act.

                                      19

<Page>

         (c)      Opinion of Counsel for the Company and the Guarantors.

                  On the Closing Date the Initial Purchasers shall have received
         (i) the favorable opinion of Proskauer Rose LLP, New York counsel for
         the Company and the Guarantors, dated as of such Closing Date, the form
         of which is attached as EXHIBIT A, (ii) the favorable opinion of
         Goodwin & Goodwin, LLP, West Virginia counsel for the Company and the
         Guarantors, dated as of such Closing Date, the form of which is
         attached as EXHIBIT B and (iii) the favorable opinion of Janice Trybus,
         in-house counsel for the Company and the Guarantors, dated as of such
         Closing Date, the form of which is attached as EXHIBIT C.

         (d)      Opinion of Counsel for the Initial Purchasers.

                  On the Closing Date the Initial Purchasers shall have received
         the favorable opinion of Shearman & Sterling, counsel for the Initial
         Purchasers, dated as of such Closing Date, with respect to such matters
         as may be reasonably requested by the Initial Purchasers.

         (e)      Officers' Certificate.

                  On the Closing Date the Initial Purchasers shall have received
         a written certificate executed by the Chairman of the Board, Chief
         Executive Officer or President of the Company and each of the
         Guarantors and the Chief Financial Officer or Chief Accounting Officer
         of the Company and each of the Guarantors, dated as of the Closing
         Date, to the effect set forth in subsection (b)(ii) of this Section 5,
         and further to the effect that:

                  (i)      for the period from and after the date of this
         Agreement and prior to the Closing Date there has not occurred any
         Material Adverse Change;

                  (ii)     the representations, warranties and covenants of the
         Company and the Guarantors set forth in Section 1 of this Agreement are
         true and correct with the same force and effect as though expressly
         made on and as of the Closing Date; and

                  (iii)    the Company and the Guarantors have complied with all
         the agreements and satisfied all the conditions on its part to be
         performed or satisfied at or prior to the Closing Date.

         (f)      Bring-down Comfort Letter.

                  On the Closing Date, the Initial Purchasers shall have
         received from the Independent Accountants, a letter dated such date, in
         form and substance satisfactory to the Initial Purchasers, to the
         effect that they reaffirm the statements made in the letter furnished
         by them pursuant to subsection (a) of this Section 5, except that the
         specified date referred to therein for the carrying out of procedures
         shall be no more than three business days prior to the Closing Date.

         (g)      PORTAL Listing.

                  At the Closing Date the Notes shall have been designated for
         trading on the PORTAL market.

                                      20

<Page>

         (h)      Registration Rights Agreement.

                  The Company and each of the Guarantors shall have entered into
         the Registration Rights Agreement and the Initial Purchasers shall have
         received executed counterparts thereof.

         (i)      Concurrent Transactions.

                  Contemporaneously with the closing of the transaction
         contemplated by this Agreement, the Company will purchase all of the
         shares of its common stock owned by WHX in accordance with the terms of
         the WHX Purchase Agreement and execute the credit agreement for the
         Revolving Credit Facility in the form previously provided to the
         Initial Purchasers on December 10, 2001 and all of the closing
         conditions thereunder will be satisfied in accordance with the terms
         thereunder. As of the Closing Date, approximately $25.3 million will be
         available for drawing under the Revolving Credit Facility, as described
         in the Offering Memorandum. All of the copies of the documents
         delivered in connection with the closing of the WHX Purchase Agreement
         and the Revolving Credit Facility will be delivered to the Initial
         Purchasers. In addition, an irrevocable letter of credit in the amount
         of $5.0 million issued in favor of WHX in connection with the WHX
         Purchase Agreement will be surrendered to, and terminated by, the
         Company.

         (j)      Additional Documents.

                  On or before the Closing Date, the Initial Purchasers and
         counsel for the Initial Purchasers shall have received such additional
         information and documents as they may reasonably require for the
         purposes of enabling them to pass upon the issuance and sale of the
         Securities as contemplated herein, or in order to evidence the accuracy
         of any of the representations and warranties, or the satisfaction of
         any of the conditions or agreements, herein contained.

                  If any condition specified in this Section 5 is not satisfied
         when and as required to be satisfied, this Agreement may be terminated
         by the Initial Purchasers by notice to the Company at any time on or
         prior to the Closing Date, which termination shall be without liability
         on the part of any party to any other party, except that Section 4,
         Section 6, Section 8 and Section 9 shall at all times be effective and
         shall survive such termination.

SECTION 6. Reimbursement of Initial Purchasers' Expenses.

                  If this Agreement is terminated by the Initial Purchasers
pursuant to Sections 5 or 10, or if the sale to the Initial Purchasers of the
Securities on the Closing Date is not consummated because of any refusal,
inability or failure on the part of the Company or any Guarantor to perform any
agreement herein or to comply with any provision hereof, the Company and the
Guarantors jointly and severally agree to reimburse the Initial Purchasers upon
demand for all out-of-pocket expenses that shall have been reasonably incurred
by the Initial Purchasers in connection with the proposed purchase and the
offering and sale of the Securities, including but not limited to fees and
disbursements of counsel, printing expenses, travel expenses, postage, facsimile
and telephone charges.

                                      21

<Page>

SECTION 7. Offer, Sale and Resale Procedures.

                  The Initial Purchasers, on the one hand, and the Company and
each of the Guarantors, on the other hand, hereby establish and agree to observe
the following procedures in connection with the offer and sale of the
Securities:

                  (i)      Offers and sales of the Securities will be made only
by the Initial Purchasers or their Affiliates qualified to do so in the
jurisdictions in which such offers or sales are made. Each such offer or sale
shall only be made to (A) persons whom the offeror or seller reasonably believes
to be qualified institutional buyers (as defined in Rule 144A under the
Securities Act), or (B) non-U.S. persons outside the United States to whom the
offeror or seller reasonably believes offers and sales of the Securities may be
made in reliance upon Regulation S under the Securities Act, upon the terms and
conditions set forth in ANNEX I hereto, which ANNEX I is hereby expressly made a
part hereof.

                  (ii)     The Securities will be offered by approaching
prospective Subsequent Purchasers on an individual basis. No general
solicitation or general advertising (within the meaning of Rule 502 under the
Securities Act) will be used in the United States in connection with the
offering of the Securities.

                  (iii)    Upon original issuance by the Company, and until such
time as the same is no longer required under the applicable requirements of the
Securities Act, the Securities (and all securities issued in exchange therefor
or in substitution thereof, other than the Exchange Securities) shall bear the
following legend:

                  "THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS
                  ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION
                  UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933,
                  AS AMENDED (THE "SECURITIES ACT'), AND THE SECURITY EVIDENCED
                  HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
                  THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
                  THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS
                  HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE
                  EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
                  ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE
                  SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER
                  THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
                  TRANSFERRED ONLY (i) (a) TO A PERSON WHO THE SELLER REASONABLY
                  BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
                  RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING
                  THE REQUIREMENTS OF RULE 144A, (b) IN A TRANSACTION MEETING
                  THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (c)
                  OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION
                  MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT,
                  (d) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS DEFINED IN
                  RULE 501(a)(1), (2), (3) OR (7) OF THE SECURITIES ACT (AN
                  "INSTITUTIONAL ACCREDITED INVESTOR")) THAT, PRIOR TO SUCH
                  TRANSFER, FURNISHES

                                      22

<Page>

                  THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS
                  AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE
                  TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE
                  PRINCIPAL AMOUNT OF NOTES LESS THAN $100,000, AN OPINION OF
                  COUNSEL ACCEPTABLE TO THE ISSUER THAT SUCH TRANSFER IS IN
                  COMPLIANCE WITH THE SECURITIES ACT, OR (e) IN ACCORDANCE WITH
                  ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
                  SECURITIES ACT AND BASED UPON AN OPINION OF COUNSEL IF THE
                  ISSUER SO REQUESTS), (ii) TO THE ISSUER, OR (iii) PURSUANT TO
                  AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN
                  ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
                  THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND
                  (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
                  TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED
                  HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE."

Following the sale of the Securities by the Initial Purchasers to Subsequent
Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be
liable or responsible to the Company for any losses, damages or liabilities
suffered or incurred by the Company, including any losses, damages or
liabilities under the Securities Act, arising from or relating to any resale or
transfer of any Security.

SECTION 8. Indemnification.

         (a)      Indemnification of the Initial Purchasers.

                  The Company and each of the Guarantors, jointly and severally,
         agree to indemnify and hold harmless the Initial Purchasers, their
         respective directors, officers and employees, and each person, if any,
         who controls the Initial Purchasers within the meaning of Section 15 of
         the Securities Act or Section 20 of the Exchange Act against any loss,
         claim, damage, liability or expense, as incurred, to which the Initial
         Purchasers or such controlling person may become subject, under the
         Securities Act, the Exchange Act or other federal or state statutory
         law or regulation, or at common law or otherwise (including in
         settlement of any litigation, if such settlement is effected with the
         written consent of the Company and/or any Guarantor sought to be
         bound), insofar as such loss, claim, damage, liability or expense (or
         actions in respect thereof as contemplated below) arises out of or is
         based: (i) upon any untrue statement or alleged untrue statement of a
         material fact contained in the Preliminary Offering Memorandum or the
         Offering Memorandum (or any amendment or supplement thereto), or the
         omission or alleged omission therefrom of a material fact necessary in
         order to make the statements therein, in the light of the circumstances
         under which they were made, not misleading; or (ii) in whole or in part
         upon any inaccuracy in the representations and warranties of the
         Company or any Guarantor contained herein; or (iii) in whole or in part
         upon any failure of the Company or any Guarantor to perform its
         obligations hereunder or under law; or (iv) upon any act or failure to
         act or any alleged act or failure to act by the Initial Purchasers in
         connection with, or relating in any manner to, the offering
         contemplated hereby, and which is included as part of or referred to in
         any loss, claim, damage,

                                      23

<Page>

         liability or action arising out of or based upon any matter covered by
         clause above, provided that the Company shall not be liable under this
         clause (iv) to the extent that a court of competent jurisdiction shall
         have determined by a final judgment that such loss, claim, damage,
         liability or action resulted directly from any such acts or failures to
         act undertaken or omitted to be taken by any Initial Purchaser through
         its gross negligence or willful misconduct; and to reimburse the
         Initial Purchasers and each such controlling person for any and all
         expenses (including the fees and disbursements of counsel chosen by
         Banc of America Securities LLC) as such expenses are reasonably
         incurred by the Initial Purchasers or such controlling person in
         connection with investigating, defending, settling, compromising or
         paying any such loss, claim, damage, liability, expense or action,
         provided, however, that the foregoing indemnity agreement shall not
         apply to any loss, claim, damage, liability or expense to the extent,
         but only to the extent, arising out of or based upon any untrue
         statement or alleged untrue statement or omission or alleged omission
         made in reliance upon and in conformity with written information
         furnished to the Company by the Initial Purchasers expressly for use
         in any Preliminary Offering Memorandum or the Offering Memorandum (or
         any amendment or supplement thereto). The indemnity agreement set forth
         in this Section 8 shall be in addition to any liabilities that the
         Company or the Guarantors may otherwise have.

         (b)      Indemnification of the Company, its Directors and Officers.

                  Each Initial Purchaser agrees to severally indemnify and hold
         harmless the Company, the Guarantors and each of their directors and
         each person, if any, who controls the Company within the meaning of
         Section 15 of the Securities Act or Section 20 of the Exchange Act,
         against any loss, claim, damage, liability or expense, as incurred, to
         which the Company or the Guarantors or any such director, or
         controlling person may become subject, under the Securities Act, the
         Exchange Act, or other federal or state statutory law or regulation, or
         at common law or otherwise (including in settlement of any litigation,
         if such settlement is effected with the written consent of the Initial
         Purchasers), insofar as such loss, claim, damage, liability or expense
         (or actions in respect thereof as contemplated below) arises out of or
         is based upon any untrue or alleged untrue statement of a material fact
         contained in any Preliminary Offering Memorandum or the Offering
         Memorandum (or any amendment or supplement thereto), or arises out of
         or is based upon the omission or alleged omission to state therein a
         material fact required to be stated therein or necessary to make the
         statements therein not misleading, in each case to the extent, but only
         to the extent, that such untrue statement or alleged untrue statement
         or omission or alleged omission was made in any Preliminary Offering
         Memorandum or the Offering Memorandum (or any amendment or supplement
         thereto), in reliance upon and in conformity with written information
         furnished to the Company by the Initial Purchasers expressly for use
         therein; and to reimburse the Company, the Guarantors or any such
         director or controlling person for any legal and other expenses
         reasonably incurred by the Company, the Guarantors or any such director
         or controlling person in connection with investigating, defending,
         settling, compromising or paying any such loss, claim, damage,
         liability, expense or action. The Company hereby acknowledges that the
         only information that the Initial Purchasers have furnished to the
         Company expressly for use in any Preliminary Offering Memorandum or the
         Offering Memorandum (or any amendment or supplement thereto) are the
         statements set forth in the sixth paragraph under the caption "Plan of
         Distribution" in the Offering Memorandum concerning stabilization by
         the Initial Purchasers; and the Initial Purchasers confirm that such
         statements are correct. The indemnity agreement set forth in this
         Section 8 shall be in addition to any liabilities that the Initial
         Purchasers may otherwise have.

                                      24

<Page>

         (c)      Notifications and Other Indemnification Procedures.

                  Promptly after receipt by an indemnified party under this
         Section 8 of notice of the commencement of any action, such indemnified
         party will, if a claim in respect thereof is to be made against an
         indemnifying party under this Section 8, notify the indemnifying party
         in writing of the commencement thereof, but the omission so to notify
         the indemnifying party will not relieve it from any liability which it
         may have to any indemnified party for contribution or otherwise than
         under the indemnity agreement contained in this Section 8 or to the
         extent it is not prejudiced as a proximate result of such failure. In
         case any such action is brought against any indemnified party and such
         indemnified party seeks or intends to seek indemnity from an
         indemnifying party, the indemnifying party will be entitled to
         participate in and, to the extent that it shall elect, jointly with all
         other indemnifying parties similarly notified, by written notice
         delivered to the indemnified party promptly after receiving the
         aforesaid notice from such indemnified party, to assume the defense
         thereof with counsel reasonably satisfactory to such indemnified party;
         provided, however, if the defendants in any such action include both
         the indemnified party and the indemnifying party and the indemnified
         party shall have reasonably concluded that a conflict may arise between
         the positions of the indemnifying party and the indemnified party in
         conducting the defense of any such action or that there may be legal
         defenses available to it and/or other indemnified parties which are
         different from or additional to those available to the indemnifying
         party, the indemnified party or parties shall have the right to select
         separate counsel to assume such legal defenses and to otherwise
         participate in the defense of such action on behalf of such indemnified
         party or parties. Upon receipt of notice from the indemnifying party to
         such indemnified party of such indemnifying party's election so to
         assume the defense of such action and approval by the indemnified party
         of counsel, the indemnifying party will not be liable to such
         indemnified party under this Section 8 for any legal or other expenses
         subsequently incurred by such indemnified party in connection with the
         defense thereof unless (i) the indemnified party shall have employed
         separate counsel in accordance with the proviso to the next preceding
         sentence (it being understood, however, that the indemnifying party
         shall not be liable for the expenses of more than one separate counsel
         (together with local counsel), approved by the indemnifying party (the
         Initial Purchasers in the case of Section 8(b) and Section 9),
         representing the indemnified parties who are parties to such action);
         or (ii) the indemnifying party shall not have employed counsel
         satisfactory to the indemnified party to represent the indemnified
         party within a reasonable time after notice of commencement of the
         action, in each of which cases the fees and expenses of counsel shall
         be at the expense of the indemnifying party.

         (d)      Settlements.

                  The indemnifying party under this Section 8 shall not be
         liable for any settlement of any proceeding effected without its
         written consent, but if settled with such consent or if there be a
         final judgment for the plaintiff, the indemnifying party agrees to
         indemnify the indemnified party against any loss, claim, damage,
         liability or expense by reason of such settlement or judgment.
         Notwithstanding the foregoing sentence, if at any time an indemnified
         party shall have requested an indemnifying party to reimburse the
         indemnified party for fees and expenses of counsel as contemplated by
         Section 8 hereof, the indemnifying party agrees that (i) it shall be
         liable for any settlement of any proceeding effected without its
         written consent if such settlement is entered into more than 30 days
         after receipt by such indemnifying party of the aforesaid request; and
         (ii)

                                      25

<Page>

         such indemnifying party shall not have reimbursed the indemnified
         party in accordance with such request prior to the date of such
         settlement. No indemnifying party shall, without the prior written
         consent of the indemnified party, effect any settlement, compromise or
         consent to the entry of judgment in any pending or threatened action,
         suit or proceeding in respect of which any indemnified party is or
         could have been a party and indemnity was or could have been sought
         hereunder by such indemnified party, unless such settlement, compromise
         or consent includes an unconditional release of such indemnified party
         from all liability on claims that are the subject matter of such
         action, suit or proceeding.

SECTION 9. Contribution.

                  If the indemnification provided for in Section 8 is for any
reason held to be unavailable to or otherwise insufficient to hold harmless an
indemnified party in respect of any losses, claims, damages, liabilities or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount paid or payable by such indemnified party, as incurred, as
a result of any losses, claims, damages, liabilities or expenses referred to
therein (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and the Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, from the offering of the Securities
pursuant to this Agreement; 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 and the Guarantors, on the one hand, and
the Initial Purchasers, on the other hand, in connection with the statements or
omissions or inaccuracies in the representations and warranties herein which
resulted in such losses, claims, damages, liabilities or expenses, as well as
any other relevant equitable considerations. The relative benefits received by
the Company and the Guarantors, on the one hand, and the Initial Purchasers, on
the other hand, in connection with the offering of the Securities pursuant to
this Agreement shall be deemed to be in the same respective proportions as the
total net proceeds from the offering of the Securities pursuant to this
Agreement (before deducting expenses) received by the Company or the Guarantors,
and the total discount received by the Initial Purchasers bear to the aggregate
initial offering price of the Securities. The relative fault of the Company and
the Guarantors, on the one hand, and the Initial Purchasers, on the other hand,
shall be determined by reference to, among other things, whether any such untrue
or alleged untrue statement of a material fact or omission or alleged omission
to state a material fact or any such inaccurate or alleged inaccurate
representation or warranty relates to information supplied by the Company, 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 a party as a result of the
losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include, subject to the limitations set forth in Section 8(c), any
legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in
Section 8(c) with respect to notice of commencement of any action shall apply if
a claim for contribution is to be made under this Section 9; provided, however,
that no additional notice shall be required with respect to any action for which
notice has been given under Section 8(c) for purposes of indemnification.

                  The Company, the Guarantors and the Initial Purchasers agree
that it would not be just and equitable if contribution pursuant to this Section
9 were determined by pro rata allocation (even if the Initial Purchasers were
treated as one entity for such purpose) or by any

                                      26

<Page>

other method of allocation which does not take account of the equitable
considerations referred to in this Section 9.

                  Notwithstanding the provisions of this Section 9, the Initial
Purchasers shall not be required to contribute any amount in excess of the
discount received by the Initial Purchasers in connection with the Securities
distributed by it. 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.

                  For the purposes of this Section 9, each director, officer and
employee of the Initial Purchasers and each person, if any, who controls the
Initial Purchasers within the meaning of the Securities Act and the Exchange Act
shall have the same rights to contribution as the Initial Purchasers, and each
director of the Company or any Guarantor, and each person, if any, who controls
the Company or any Guarantor with the meaning of the Securities Act and the
Exchange Act shall have the same rights to contribution as the Company or any
Guarantor.

SECTION 10. Termination of this Agreement.

                  Prior to the Closing Date, this Agreement may be terminated by
the Initial Purchasers by notice given to the Company if at any time (i) trading
in securities generally on either the Nasdaq Stock Market or the New York Stock
Exchange shall have been suspended or limited, or minimum or maximum prices
shall have been generally established on any of such stock exchanges by the
Commission or the NASD; (ii) a general banking moratorium shall have been
declared by any of federal, New York, Delaware or any other state authorities;
(iii) there shall have occurred any outbreak or escalation of national or
international hostilities or any crisis or calamity, or any change in the United
States or international financial markets, or any substantial change or
development involving a prospective substantial change in United States' or
international political, financial or economic conditions, as in the judgment of
the Initial Purchasers is material and adverse and makes it impracticable to
market the Securities in the manner and on the terms described in the Offering
Memorandum or to enforce contracts for the sale of securities; (iv) in the
judgment of the Initial Purchasers there shall have occurred any Material
Adverse Change; or (v) the Company or any Guarantor shall have sustained a loss
by strike, fire, flood, earthquake, accident or other calamity of such character
as in the judgment of the Initial Purchasers may interfere materially with the
conduct of the business and operations of the Company or such Guarantor
regardless of whether or not such loss shall have been insured.

                  Any termination pursuant to this Section 10 shall be without
liability on the part of (a) the Company or any Guarantor to the Initial
Purchasers, except that the Company and the Guarantors shall be obligated to
reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6
hereof, (b) the Initial Purchasers to the Company or any Guarantor, or (c) any
party hereto to any other party except that the provisions of Section 8 and
Section 9 shall at all times be effective and shall survive such termination.

SECTION 11. Representations and Indemnities to Survive Delivery.

                  The respective indemnities, agreements, representations,
warranties and other statements of the Company and the Guarantors, of their
respective officers and of the Initial Purchasers set forth in or made pursuant
to this Agreement will remain in full force and effect, regardless of the
investigation made by or on behalf of the Initial Purchasers or the Company or
the Guarantors or any of its or their partners, officers or directors or any
controlling person, as

                                      27

<Page>

the case may be, and will survive delivery of and payment for the Securities
sold hereunder and any termination of this Agreement.

SECTION 12. Notices.

                  All communications hereunder shall be in writing and shall be
mailed, hand delivered or telecopied and confirmed to the parties hereto as
follows:

If to the Initial Purchasers:

         Banc of America Securities LLC
         9 West 57th Street, 31st Floor
         New York, NY  10019
         Facsimile:  (212) 583-8324
         Attention:  High Yield Capital Markets

with a copy to:

         Shearman & Sterling
         599 Lexington Avenue
         New York, NY 10022
         Facsimile:  (212) 848-7179
         Attention:  Rohan S. Weerasinghe

If to the Company or the Guarantors:

         Wheeling Island Gaming, Inc.
         40 Fountain Plaza
         Buffalo, NY 14202
         Facsimile:  (716) 858-5264
         Attention:  Michael D. Corbin or General Counsel

with a copy to:

         Proskauer Rose LLP
         1585 Broadway
         New York, NY  10036
         Facsimile:  (212) 969-2900
         Attention:  Julie M. Allen

Any party hereto may change the address for receipt of communications by giving
written notice to the others.

SECTION 13. Successors.

                  This Agreement will inure to the benefit of and be binding
upon the parties hereto and to the benefit of the employees, officers and
directors and controlling persons referred to in Section 8 and Section 9, and in
each case their respective successors, and no other person will have any right
or obligation hereunder. The term "successors" shall not include any purchaser
of the Securities as such from the Initial Purchasers merely by reason of such
purchase.

                                      28

<Page>

SECTION 14. Partial Unenforceability.

                  The invalidity or unenforceability of any Section, paragraph
or provision of this Agreement shall not affect the validity or enforceability
of any other Section, paragraph or provision hereof. If any Section, paragraph
or provision of this Agreement is for any reason determined to be invalid or
unenforceable, there shall be deemed to be made such minor changes (and only
such minor changes) as are necessary to make it valid and enforceable.

SECTION 15. Governing Law; Consent to Jurisdiction.

         (a)      Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE.

         (b)      Consent to Jurisdiction. Any legal suit, action or proceeding
arising out of or based upon this Agreement or the transactions contemplated
hereby ("Related Proceedings") may be instituted in the federal courts of the
United States of America located in the City and County of New York or the
courts of the State of New York in each case located in the City and County of
New York (collectively, the "Specified Courts"), and each party irrevocably
submits to the non-exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a "Related
Judgment"), as to which such jurisdiction is non-exclusive) of such courts in
any such suit, action or proceeding. Service of any process, summons, notice or
document by mail to such party's address set forth above shall be effective
service of process for any suit, action or other proceeding brought in any such
court. The parties irrevocably and unconditionally waive any objection to the
laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such suit, action or other proceeding brought in any such
court has been brought in an inconvenient forum.

SECTION 16. Default of One or More of the Several Initial Purchasers.

                  If any one of the Initial Purchasers shall fail or refuse to
purchase Securities that it has agreed to purchase hereunder on the Closing
Date, and the aggregate number of Securities which such defaulting Initial
Purchaser agreed but failed or refused to purchase does not exceed 10% of the
aggregate number of the Securities to be purchased on such date, the other
Initial Purchaser shall be obligated to purchase the Securities which such
defaulting Initial Purchaser agreed but failed or refused to purchase on such
date. If any one of the Initial Purchasers shall fail or refuse to purchase
Securities and the aggregate number of Securities with respect to which such
default occurs exceeds 10% of the aggregate number of Securities to be purchased
on the Closing Date, and arrangements satisfactory to the Initial Purchasers and
the Company for the purchase of such Securities are not made within 48 hours
after such default, this Agreement shall terminate without liability of any
party to any other party except that the provisions of Section 4, Section 6,
Section 8 and Section 9 shall at all times be effective and shall survive such
termination. In any such case either the Initial Purchasers or the Company shall
have the right to postpone the Closing Date, as the case may be, but in no event
for longer than seven days in order that the required changes, if any, to the
Offering Memorandum or any other documents or arrangements may be effected.

                  As used in this Agreement, the term "Initial Purchaser" shall
be deemed to include any person substituted for a defaulting Initial Purchaser
under this Section 16. Any

                                      29
<Page>

action taken under this Section 16 shall not relieve any defaulting Initial
Purchaser from liability in respect of any default of such Initial Purchaser
under this Agreement.

SECTION 17. General Provisions.

                  This Agreement constitutes the entire agreement of the parties
to this Agreement and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings and negotiations with respect to
the subject matter hereof. This Agreement may be executed in two or more
counterparts, each one of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement
may not be amended or modified unless in writing by all of the parties hereto,
and no condition herein (express or implied) may be waived unless waived in
writing by each party whom the condition is meant to benefit. The Table of
Contents and the section headings herein are for the convenience of the parties
only and shall not affect the construction or interpretation of this Agreement.

                                     30
<Page>

                  If the foregoing is in accordance with your understanding of
our agreement, kindly sign and return to the Company the enclosed copies hereof,
whereupon this instrument, along with all counterparts hereof, shall become a
binding agreement in accordance with its terms.

                                                 Very truly yours,

                                                 WHEELING ISLAND GAMING, INC.

                                                 By:__________________________
                                                      Name:  Scott L. Cooper
                                                      Title:  President

                                                 WDRA FOOD SERVICE, INC.

                                                 By:__________________________
                                                      Name:  Scott L. Cooper
                                                      Title:  President

                                                 WHEELING LAND DEVELOPMENT CORP.

                                                 By:_______________________
                                                    Name:  Ronald A. Sultemeier
                                                    Title:  President

                  The foregoing Purchase Agreement is hereby confirmed and
accepted by the Initial Purchasers as of the date first above written.

BANC OF AMERICA SECURITIES LLC
WELLS FARGO BROKERAGE SERVICES, LLC

By: BANC OF AMERICA SECURITIES LLC

By:______________________
     Name:  Bruce R. Thompson
     Title:  Managing Director

<Page>

                                   SCHEDULE A

<Table>
<Caption>
                                                   AGGREGATE PRINCIPAL AMOUNT OF
                       INITIAL PURCHASERS             SECURITIES TO BE PURCHASED
<S>                                                 <C>
Banc of America Securities LLC .................................. $ 112,500,000
Wells Fargo Brokerage Services, LLC..............................    12,500,000
                                                                  -------------
         Total................................................... $ 125,000,000
</Table>

<Page>

                                   SCHEDULE B

                              LIST OF SUBSIDIARIES

                             WDRA Food Service, Inc.

                         Wheeling Land Development Corp.

<Page>

                                                                       EXHIBIT A

                               FORM OF OPINION OF

                               PROSKAUER ROSE LLP

         (i)      The Company has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the State of Delaware. The
Merger has been consummated in accordance with the General Corporation Law of
the State of Delaware and the West Virginia Corporation Act of the State of West
Virginia. Each share of common stock of Wheeling Downs Racing Association, Inc.
has been converted into one validly issued, fully paid and non-assessable share
of common stock of the Company.

         (ii)     The Company has corporate power and authority to own, lease
and operate its properties and to conduct its business as described in the
Offering Memorandum and to enter into and perform its obligations under each of
the Purchase Agreement, the Registration Rights Agreement, the Indenture, the
Securities, the Exchange Securities, the DTC Agreement, the WHX Purchase
Agreement and the Revolving Credit Facility.

         (iii)    The Company is duly qualified as a foreign corporation to
transact business and is in good standing in the State of West Virginia.

         (iv)     All of the outstanding shares of Common Stock have been duly
authorized and validly issued, are fully paid and nonassessable and, to the
knowledge of such counsel, have been issued in compliance with the registration
and qualification requirements of federal and state securities laws.

         (v)      No stockholder of the Company or any other person has any
preemptive right, right of first refusal or other similar right to subscribe for
or purchase securities of the Company arising by operation of the charter or
by-laws of the Company or the General Corporation Law of the State of Delaware
or, to the knowledge of such counsel, otherwise.

         (vi)     The Purchase Agreement has been duly authorized, executed and
delivered by, and is a valid and binding agreement of, the Company, enforceable
in accordance with its terms, except as rights to indemnification thereunder may
be limited by applicable law and except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws relating to or affecting the rights and remedies of creditors or by general
equitable principles.

         (vii)    Each of the Registration Rights Agreement and the DTC
Agreement has been duly authorized, executed and delivered by, and is a valid
and binding agreement of the Company, enforceable in accordance with its terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles and except
as rights to indemnification under the Registration Rights Agreement may be
limited by applicable law.

         (viii)   The Indenture has been duly authorized, executed and delivered
by the Company and (assuming the due authorization, execution and delivery
thereof by the Trustee) constitutes a valid and binding agreement of the
Company, enforceable against the Company in

                                     A-1
<Page>

accordance with its terms, except as the enforcement thereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general
equitable principles.

         (ix)     Each of the Purchase Agreement, Registration Rights Agreement
and the Indenture, assuming the due authorization, execution and delivery by
each Guarantor, constitutes a legal, valid and binding obligation of such
Guarantor, enforceable in accordance with its terms against such Guarantor,
except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles and except
as rights to indemnification under the Purchase Agreement and the Registration
Rights Agreement may be limited by applicable law.

         (x)      The Notes are in the form contemplated by the Indenture, have
been duly authorized by the Company for issuance and sale pursuant to the
Purchase Agreement and the Indenture and, when executed by the Company and
authenticated by the Trustee in the manner provided in the Indenture (assuming
the due authorization, execution and delivery of the Indenture by the Trustee)
and delivered against payment of the purchase price therefor, will constitute
valid and binding obligations of the Company, enforceable in accordance with
their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or affecting
enforcement of the rights and remedies of creditors or by general equitable
principles, and will be entitled to the benefits of the Indenture.

         (xi)     The Exchange Notes have been duly and validly authorized for
issuance by the Company, and when issued and authenticated in accordance with
the terms of the Indenture, the Registration Rights Agreement and the Exchange
Offer, will constitute valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium, or
similar laws relating to or affecting enforcement of the rights and remedies of
creditors or by general equitable principles, and will be entitled to the
benefits of the Indenture.

         (xii)    The Guarantees of the Notes and the Exchange Notes are in the
respective forms contemplated by the Indenture, and when duly authorized,
executed delivered by each of the Guarantors and, when the Notes have been
issued and authenticated in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor, will constitute valid
and binding obligations of the Guarantors, enforceable in accordance with their
terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, or similar laws relating to or affecting
enforcement of the rights and remedies of creditors or by general equitable
principles, and will be entitled to the benefits of the Indenture.

         (xiii)   The Securities and the Indenture conform in all material
respects to the descriptions thereof contained in the Offering Memorandum.

         (xiv)    The statements in the Offering Memorandum under the captions
"Description of the Notes", "United States Federal Income Tax Considerations",
and "Notice to Investors", insofar as such statements constitute matters of law,
summaries of legal matters, the charter or by-law provisions of the Company,
documents or legal proceedings, or legal conclusions, have been reviewed by such
counsel and fairly present and summarize, in all material respects, the matters
referred to therein.

                                     A-2
<Page>

         (xv)     No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory
authority or agency is required for the Company's execution, delivery and
performance of the Purchase Agreement, the Registration Rights Agreement, the
DTC Agreement or the Indenture or any other agreements or documents relating to
any of the foregoing, or the issuance and delivery of the Securities or the
Exchange Securities, or consummation of the transactions contemplated thereby
and by the Offering Memorandum (other than the transactions contemplated by the
WHX Purchase Agreement and the Revolving Credit Facility), except such as have
been obtained or made by the Company and are in full force and effect under the
Securities Act, applicable state securities or blue sky laws, and except such as
may be required by federal and state securities laws with respect to the
Company's obligations under the Registration Rights Agreement.

         (xvi)    The execution and delivery of the Purchase Agreement, the
Registration Rights Agreement, the DTC Agreement the Securities, the Exchange
Securities and the Indenture and any other agreements or documents relating to
any of the foregoing by the Company and the performance by the Company of its
obligations thereunder, and consummation of the transactions contemplated
thereby and by the Offering Memorandum (other than the transactions contemplated
by the WHX Purchase Agreement and the Revolving Credit Facility): (i) will not
result in any violation of the provisions of the charter or by-laws of the
Company; (ii) will not conflict with or constitute a breach of, or Default or a
Debt Repayment Triggering Event (as defined below) under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property or
assets of the Company or any of its subsidiaries pursuant to, or require the
consent of any other party to, any Existing Instrument (as defined in the
Purchase Agreement), except for such conflicts, breaches, Defaults, liens,
charges or encumbrances as would not, individually or in the aggregate, result
in a Material Adverse Change; and (iii) will not result in any violation of any
law, administrative regulation or administrative or court decree applicable to
the Company or any subsidiary. As used herein, a "Debt Repayment Triggering
Event" means any event or condition which gives, or with the giving of notice or
lapse of time would give, the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder's behalf) the right to require
the repurchase, redemption or repayment of all or a portion of such indebtedness
by the Company or any of its subsidiaries.

         (xvii)   The Company is not, and after receipt of payment for the
Securities will not be, an "investment company" within the meaning of the
Investment Company Act and will conduct its business in a manner so that it will
not become subject to the Investment Company Act.

         (xviii)  To the knowledge of such counsel, no holders of securities
(other than the Notes) of the Company have rights to require the registration of
such securities that would result from the filing of the Exchange Offer
Registration Statement or the Shelf Registration Statement.

         (xix)    To the knowledge of such counsel (but without conducting any
docket or similar search), there is no pending or threatened action, suit or
proceeding before any court or governmental agency, authority or body or any
arbitrator involving the Company or any of the Guarantors except for actions,
suits or proceedings which are either disclosed in the Offering Memorandum or,
if not so disclosed, would not, individually or in the aggregate with all such
other actions, suits and proceedings, have, if adversely determined, a material
adverse effect on the Company and the Guarantors considered as one enterprise.

         (xx)     Assuming the accuracy of the representations, warranties and
covenants of the Company and the Initial Purchasers contained in the Purchase
Agreement, no registration of the Notes or the Guarantees under the Securities
Act, and no qualification of an indenture under the Trust Indenture Act with
respect thereto, is required in connection with the purchase of the

                                     A-3
<Page>

Securities by the Initial Purchasers or the initial resale of the Securities
by the Initial Purchasers to Qualified Institutional Buyers or Institutional
Accredited Investors in the manner contemplated by the Purchase Agreement and
the Offering Memorandum other than any registration or qualification that may
be required in connection with the Exchange Offer contemplated by the
Offering Memorandum or in connection with the Registration Rights Agreement.

         In addition, such counsel shall state that they have participated in
conferences with officers and other representatives of the Company,
representatives of the independent public or certified public accountants for
the Company and with representatives of the Initial Purchasers at which the
contents of the Offering Memorandum, and any supplements or amendments thereto,
and related matters were discussed and, although such counsel is not passing
upon and does not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Offering Memorandum (other than as
expressly specified above), and any supplements or amendments thereto, on the
basis of the foregoing, nothing has come to our attention which would lead us to
believe that either the Offering Memorandum, as of its date or at the Closing
Date, contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (it being understood that we need express no belief as to the
financial statements or other financial data derived therefrom, included or
incorporated by reference (as applicable) in the Offering Memorandum or any
amendments or supplements thereto).

                                     A-4
<Page>

                                                                       EXHIBIT B

                               FORM OF OPINION OF

                             GOODWIN & GOODWIN, LLP

         For purposes of this exhibit, the term "Gaming Regulations" refers
collectively to any law, rule, regulation or ordinance governing racing and
gaming activities (including, without limitation, the West Virginia Racetrack
Video Lottery Act and the West Virginia Racing Act) in each case including all
amendments or modifications thereof, any administrative rules or regulations
promulgated thereunder, and any of the corresponding statutes, rules and
regulations in the State of West Virginia.

         (i)      Each of the Guarantors has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the State
of West Virginia.

         (ii)     Each of the Guarantors has corporate power and authority to
own, lease and operate its properties and to conduct its business as described
in the Offering Memorandum and to enter into and perform its obligations under
each of the Purchase Agreement, the Registration Rights Agreement, the
Indenture, the Securities, the Exchange Securities and the Revolving Credit
Facility.

         (iii)    Each of the Guarantors is duly qualified as a foreign
corporation to transact business and is in good standing in each other
jurisdiction in which such qualification is required, whether by reason of the
ownership or leasing of property or the conduct of business, except for such
jurisdictions where the failure to so qualify or to be in good standing would
not, individually or in the aggregate, result in a Material Adverse Change.

         (iv)     All of the issued and outstanding capital stock of each of the
Guarantors has been duly authorized and validly issued, is fully paid and
nonassessable and is owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance or,
to the best knowledge of such counsel, any pending or threatened claim.

         (v)      Each of the Purchase Agreement, the Registration Rights
Agreement, the Indenture, and the Revolving Credit Facility has been duly
authorized, executed and delivered by each of the Guarantors.

         (vi)     The Guarantees of the Notes and the Exchange Notes have been
duly authorized by each Guarantor for issuance and sale pursuant to the Purchase
Agreement.

         (vii)    The statements in the Offering Memorandum under the captions
"Risk Factors--We may require you to dispose of your notes or redeem your notes
if required by applicable gaming regulations," "Risk Factors--Government
Regulation could have a negative effect on our business" and "Government
Regulation", insofar as such statements constitute a description of matters of
law, summaries of legal proceedings, or legal conclusions contained in the
Offering Memorandum, have been reviewed by such counsel and fairly present and
summarize, in all material respects, the matters referred to therein.

         (viii)   Each of the Company and each of its subsidiaries possesses
such valid and current certificates, authorizations, permits or licenses issued
by the appropriate state agencies or bodies (including any Gaming Authority, as
such term is defined in the Purchase Agreement)

                                     B-1
<Page>

necessary to conduct their respective businesses, including but not limited
to all certificates, authorizations, permits and licenses required to conduct
their gaming and live and simulcast racing and pari-mutuel wagering business
in the State of West Virginia, and neither the Company nor any of its
subsidiaries has received any notice of proceedings relating to the
revocation or modification of, or non-compliance with, any such certificate,
authorization, permit or license which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, could result in a
Material Adverse Change.

         (ix)     No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory
authority or agency, including without limitation, any Gaming Authority, is
required under the Gaming Regulations for the Company's or each Guarantor's
execution, delivery and performance of the Purchase Agreement, the Registration
Rights Agreement, the DTC Agreement, the WHX Purchase Agreement, the Revolving
Credit Facility or the Indenture and any other agreements or documents relating
to any of the foregoing, or the issuance and delivery of the Securities and the
Exchange Securities, or consummation of the transactions contemplated thereby
and by the Offering Memorandum, except such as have been obtained or made by the
Company or the Guarantors and are in full force and effect.

         (x)      The execution and delivery of each of the Purchase Agreement,
the Registration Rights Agreement, the Notes, the Exchange Notes, the Guarantees
of the Notes and the Exchange Notes, the Indenture, the WHX Purchase Agreement,
the DTC Agreement and the Revolving Credit Facility and any other agreements or
documents relating to any of the foregoing (collectively, the "Transaction
Documents") by the Company and each Guarantor and the performance by each of the
Company and Guarantors of its respective obligations under the Transaction
Documents, and consummation of the transactions contemplated thereby and by the
Offering Memorandum: (i) will not result in any violation of the provisions of
the charter or by-laws of the Guarantors and (ii) will not result in the
creation of or imposition of any lien, charge or encumbrance upon any property
or assets of the Company or the Guarantors under, and will not result in any
violation of, any law (including the Gaming Regulations), administrative
regulation or administrative or court decree generally applicable to the Company
or the Guarantors.

         (xi)     Nothing contained in the Gaming Regulations would prevent the
Transaction Documents from being the valid and binding obligations of the
Company or any Guarantor party thereto, enforceable against such party in
accordance with its terms.

         (xii)    No taxes, fees and other charges are required under the Gaming
Regulations or other law of the State of West Virginia to be paid in
connection with the execution, delivery and performance of the Transaction
Documents.

         (xiii)   No authorizations, consents or approvals by, or notices of
filings with, the Gaming Authorities (including, without limitation, the West
Virginia Lottery Commission or the West Virginia Racing Commission) are required
under the Gaming Regulations for the transactions contemplated under the
Transaction Documents, except as such authorizations, consents and approvals
that have been obtained.

         (xiv)    Neither the Trustee nor any holder of the Securities
(collectively referred to as "Persons") is required, solely by reason of the
transactions referred to in the Transaction Documents, or the exercise of the
remedies provided for in the Transaction Documents, to be found suitable to or
be licensed under the Gaming Regulations, provided, however, that (a) such
Persons are subject to be called forward for a finding of suitability or
licensing at any time in the

                                     B-2
<Page>

discretion of the relevant Government Authority and (b) the relevant
Government Authority may require, in its discretion, the licensing or finding
of suitable of some or all of such Persons in connection with the granting of
any necessary approvals for the exercise of remedies provided for in the
Transaction Documents.

         (xv)     The choice of New York law stipulated to govern is a valid and
effective choice of law under the laws of the State of West Virginia and would
be enforced to the extent the parties have provided therein by a West Virginia
court or a federal court sitting in West Virginia and applying the law of the
State of West Virginia, except to the extent that New York law contravenes the
public policy of West Virginia, and except insofar as federal laws may apply
with respect to certain issues. Moreover, although the Transaction Documents
contain choice of law provisions which state that they are to be governed by and
construed in accordance with the law of the State of New York, in the event that
the laws of the State of West Virginia were applied to govern the Transaction
Documents, the Transaction Documents will not violate any applicable usury laws
of the State of West Virginia.

         In addition, such counsel shall state that they have participated in
conferences with officers and other representatives of the Company,
representatives of the independent public or certified public accountants for
the Company and with representatives of the Initial Purchasers at which the
contents of the Offering Memorandum, and any supplements or amendments thereto,
and related matters were discussed and, although such counsel is not passing
upon and does not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Offering Memorandum (other than as
specified above), and any supplements or amendments thereto, on the basis of the
foregoing, nothing has come to our attention which would lead us to believe that
either the Offering Memorandum, as of its date or at the Closing Date, contained
or contains an untrue statement of a material fact or omitted or omits to state
a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading (it being
understood that we need express no belief as to the financial statements or
other financial data derived therefrom, included or incorporated by reference
(as applicable) in the Offering Memorandum or any amendments or supplements
thereto).

                                     B-3
<Page>

                                                                       EXHIBIT C

                               FORM OF OPINION OF

               IN-HOUSE COUNSEL FOR THE COMPANY AND THE GUARANTORS

         (i)      The Company is duly qualified as a foreign corporation to
transact business and is in good standing in each other jurisdiction in which
such qualification is required, whether by reason of the ownership or leasing of
property or the conduct of business, except for such jurisdictions where the
failure to so qualify or to be in good standing would not, individually or in
the aggregate, result in a Material Adverse Change.

         (ii)     The Company and each of its subsidiaries possesses such valid
and current certificates, authorizations, permits or licenses issued by the
appropriate federal or foreign regulatory agencies or bodies necessary to
conduct their respective businesses, and neither the Company nor any of its
subsidiaries has received any notice of proceedings relating to the revocation
or modification of, or non-compliance with, any such certificate, authorization,
permit or license which, singly or in the aggregate, if the subject of an
unfavorable decision, ruling or finding, could result in a Material Adverse
Change.

         (iii)    The Company does not own or control, directly or indirectly,
any corporation, association or other entity other than WDRA Food Service, Inc.
and Wheeling Land Development Corporation.

         (iv)     Sportsystems Corporation has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the
jurisdiction of its incorporation.

         (v)      Sportsystems Corporation has corporate power and authority to
perform its obligations under the WHX Purchase Agreement.

         (vi)     The WHX Purchase Agreement has been duly authorized, executed
and delivered by, and is a valid and binding agreement of, the Company and
Sportsystems Corporation, enforceable in accordance with its terms, except as
rights to indemnification thereunder may be limited by applicable law.

         (vii)    The Revolving Credit Facility has been duly and validly
authorized by the Company and, when duly executed and delivered by the Company,
will be the legal, valid and binding obligation of the Company, enforceable in
accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights and remedies of creditors or by general
equitable principles.

         (viii)   The Revolving Credit Facility has been duly and validly
authorized by each of the Guarantors and, when duly executed delivered by such
Guarantor, will be the legal, valid and binding obligation of such Guarantor,
enforceable in accordance with its terms against such Guarantor, except as the
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting the rights and
remedies of creditors or by general equitable principles.

         (ix)     The statements in the Offering Memorandum under the captions
"Business - Intellectual Property Rights", "Business - Legal Proceedings",
"Certain Relationships and Related Transactions" and "Description of Certain
Indebtedness", insofar as such statements

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constitute matters of law, summaries of legal matters, the charter or by-law
provisions of the Company or the Guarantors, documents or legal proceedings,
or legal conclusions, have been reviewed by such counsel and fairly present
and summarize, in all material respects, the matters referred to therein.

         (x)      No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory
authority or agency is required for the Company's or each Guarantor's execution,
delivery and performance of the WHX Purchase Agreement or the Revolving Credit
Facility or any other agreements or documents relating thereto, or consummation
of the transactions contemplated thereby, except such as have been obtained or
made by the Company and are in full force and effect.

         (xi)     The execution and delivery of the WHX Purchase Agreement and
the Revolving Credit Facility and any other agreements or documents relating
thereto by the Company and the performance by the Company of its obligations
thereunder, and consummation of the transactions contemplated thereby: (i) will
not result in any violation of the provisions of the charter or by-laws of the
Company or any subsidiary; (ii) will not conflict with or constitute a breach
of, or Default or a Debt Repayment Triggering Event (as defined below) under, or
result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any of its subsidiaries pursuant to, or
require the consent of any other party to, any Existing Instrument (as defined
in the Purchase Agreement), except for such conflicts, breaches, Defaults,
liens, charges or encumbrances as would not, individually or in the aggregate,
result in a Material Adverse Change; and (iii) will not result in any violation
of any law, administrative regulation or administrative or court decree
applicable to the Company or any subsidiary. As used herein, a "Debt Repayment
Triggering Event" means any event or condition which gives, or with the giving
of notice or lapse of time would give, the holder of any note, debenture or
other evidence of indebtedness (or any person acting on such holder's behalf)
the right to require the repurchase, redemption or repayment of all or a portion
of such indebtedness by the Company or any of its subsidiaries.

         (xii)    Sportsystems Corporation's execution, delivery and performance
of the WHX Purchase Agreement (i) will not result in any violation of the
provisions of its charter or by-laws; and (ii) will not result in any violation
of any law, administrative regulation or administrative or court decree
applicable to Sportsystems Corporation.

         (xiii)   No consent, approval, authorization or other order of, or
registration or filing with, any court or other governmental or regulatory
authority or agency, is required for Sportsystems Corporation's execution,
delivery and performance of the WHX Purchase Agreement.

         (xiv)    There are no legal or governmental actions, suits or
proceedings pending or, to the best of such counsel's knowledge, threatened (i)
against or affecting the Company or any of the Guarantors, (ii) which has as the
subject thereof any property owned or leased by either of the Issuers or any of
the Guarantors, where in any such case (A) there is a reasonable possibility
that such action, suit or proceeding might be determined adversely to either of
the Company or any Guarantor and (B) any such action, suit or proceeding if so
determined adversely, would reasonably be expected to result in a Material
Adverse Change or adversely affect the consummation of the transactions
contemplated by the Purchase Agreement. No material labor dispute with the
employees of the Company or any of the Guarantors exists or, to the best of such
counsel's knowledge, is threatened or imminent.

                                     C-2
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         In addition, such counsel shall state that she has participated in
conferences with officers and other representatives of the Company,
representatives of the independent public or certified public accountants for
the Company and with representatives of the Initial Purchasers at which the
contents of the Offering Memorandum, and any supplements or amendments thereto,
and related matters were discussed and, although such counsel is not passing
upon and does not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Offering Memorandum (other than as
expressly specified above), and any supplements or amendments thereto, on the
basis of the foregoing, nothing has come to her attention which would lead her
to believe that either the Offering Memorandum, as of its date or at the Closing
Date, contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading (it being understood that she need express no belief as to the
financial statements or other financial data derived therefrom, included or
incorporated by reference (as applicable) in the Offering Memorandum or any
amendments or supplements thereto).

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                                                                       EXHIBIT D

                      FORM OF REGISTRATION RIGHTS AGREEMENT

                                     C-1
<Page>

                                                                         ANNEX I

         RESALE PURSUANT TO REGULATION S OR RULE 144A. Each Initial Purchaser
         understands that:

                  Each Initial Purchaser agrees that it has not offered or sold
and will not offer or sell the Securities (i) 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 Securities Act 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 Securities pursuant hereto and the Closing
Date, other than in accordance with Regulation S of the Securities Act or
another exemption from the registration requirements of the Securities Act. Such
Initial Purchaser agrees that, during such 40-day restricted period, it will not
cause any advertisement with respect to the Securities (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
Securities, except such advertisements as permitted by and including the
statements required by Regulation S.

                  Such Initial Purchaser agrees that, at or prior to
confirmation of a sale of Securities 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 under the Securities 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 Securities 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
                  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 or to Accredited Institutions in transactions that are
                  exempt from the registration requirements of the Securities
                  Act), and in connection with any subsequent sale by you of the
                  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."

                  Such Initial Purchaser agrees that the Securities 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 of the
Securities Act and only upon certification of beneficial ownership of such
Securities by non-U.S. persons or U.S. persons who purchased such Securities in
transactions that were exempt from the registration requirements of the
Securities Act.

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