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EXHIBIT 4.2    
  

         

  

CONFIRMATION 

	Date:	June 4, 2002
	To:	Mandalay Resort Group
	Attention:	Les Martin
	Fax Number:	702-632-6822
	From:	Citibank, N.A. New York

Derivatives Documentation Review

333 West 34th Street, 2nd Floor

New York, NY 10001-2483
	Fax Number:	212-615-8985
	Deal No.:	M022688

        The purpose of this communication is to set forth the terms and conditions of the above-referenced transaction entered into on the Trade Date specified below (the
"Transaction") between Citibank, N.A., New York ("Citibank") and Mandalay Resort Group ("Counterparty"). This communication constitutes a "Confirmation" as referred to in the Agreement specified
below. 

        This
Confirmation evidences a complete binding agreement between you and us as to the terms of the Transaction to which this Confirmation relates. In addition, you and we agree to use
our best efforts promptly to negotiate, execute and deliver a Master Agreement (Multicurrency-Cross Border) in the form published by the International Swaps and Derivatives Association, Inc.
("ISDA"), with such modifications as you and we shall in good faith agree. Upon the execution by you and us of such Master Agreement (the "Agreement"), this Confirmation will supplement, form a
part of, and be subject to the Agreement. A copy of the Agreement has been, or promptly after the date hereof will be, delivered to you. 

        If
the Counterparty fails to execute and deliver or to negotiate in good faith the Agreement within 90 days of the Trade Date, Citibank may give the Counterparty notice that an
Additional Termination Event has occurred and is continuing with respect to the Counterparty, in which event the Counterparty will be the only Affected Party. 

        Prior
to execution of the Agreement the provisions of the Master Agreement (Multicurrency-Cross Border), in the form published by ISDA, are incorporated by reference herein and
form a part of this Confirmation and, further, this Confirmation (together with all other Confirmations of Transactions previously entered into between us, notwithstanding anything to the
contrary therein) shall be deemed to be subject to the terms of the Agreement, as if, on the Trade Date of the first such Transaction between us, you and we had executed the Agreement (without any
Schedule thereto). 

        The
definitions and provisions contained in the 2000 ISDA Definitions (as published by ISDA) are incorporated by reference into this Confirmation. 

        This
Confirmation and the ISDA Agreement will be governed by the laws of the State of New York. 

        Unless
otherwise specified in a Confirmation, the Calculation Agent for all Transactions will be Citibank. 

        1.    In
the event of any inconsistency between this Confirmation and the 2000 ISDA Definitions or the Agreement, this Confirmation will control for the purpose of the
Transaction to which this Confirmation relates. 

1

 

        2.    Each
party will make each payment specified in this Confirmation as being payable by it, not later than the due date for value on that date in the place of the account
specified below or otherwise specified in writing, in freely transferable funds and in the manner customary for payments in the required currency. 

        3.    The
terms of the particular Transaction to which this Confirmation relates are as follows: 

	Notional Amount:	 	USD 200,000,000.00
	

Trade Date:	
 	

June 3, 2002
	

Effective Date:	
 	

June 6, 2002
	

Termination Date:	
 	

February 1, 2006, subject to adjustment in accordance with the Modified Following Business Day Convention
	
Fixed Amounts:	
 	

 
	
Fixed Rate Payer:	
 	

Party A (Citibank, N.A. New York)
	

Fixed Rate Payer Period End Dates:	
 	

The 1st day of February and August, in each year, commencing August 1, 2002, and to and including the Termination Date, with No Adjustment.
	

Fixed Rate Payer Payment Days:	
 	

The 1st day of February and August, in each year, commencing August 1, 2002, and to and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

Fixed Rate Payer Payment Amount from the Effective Date up to but excluding August 1, 2002:	
 	

USD 1,970,833.33
	

Fixed Rate Payer Payment Amount from August 1, 2002 up to and including the Termination Date:	
 	

USD 6,450,000.00
	

Fixed Rate:	
 	

6.450000% per annum
	

Fixed Rate Day Count Fraction:	
 	

30/360
	
Floating Amounts:	
 	

 
	
Floating Rate Payer:	
 	

Party B (Mandalay Resort Group)
	

Floating Rate Payer Payment Dates:	
 	

The 1st day of February and August, in each year, commencing August 1, 2002, and to and including the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
	

Floating Rate for initial Calculation Period from the Effective Date up to but excluding August1, 2002:	
 	

2 Months Libor in Arrears
	
 	
 	

 

2

 

	

Floating Rate Option:	
 	

USD-LIBOR-BBA
	

Designated Maturity:	
 	

6 Months Libor in Arrears
	

Spread:	
 	

Plus 1.6300000000% per annum
	

Floating Rate Day Count Fraction:	
 	

Actual/360
	

Reset Dates:	
 	

The last day of each Calculation Period
	

Compounding:	
 	

Inapplicable
	

Business Days:	
 	

London and New York
	

Calculation Agent:	
 	

Citibank, N.A. New York
	 	 	 

        4.    Additional
Provisions: 

        In
connection with this Confirmation, the Transaction to which this Confirmation relates and any other documentation relating to the Agreement, each party to this Confirmation represents
and acknowledges to the other party that: 

i.    it
is not relying on any advice, statements or recommendations (whether written or oral) of the other party regarding such Transaction, other than the written representations expressly
made by that other party in the Agreement and in the Confirmations in respect of such Transaction; 

ii.    it
has the capacity to evaluate (internally or through independent professional advice) such Transaction (including decisions regarding the appropriateness or suitability of such
Transaction) and has made its own decision to enter into such Transaction; 

iii.    it
understands the terms, conditions and risks of such Transaction and is willing to accept those terms and conditions and to assume (financially and otherwise) those risks; 

iv.    it
is entering into such Transaction as principal and not as an agent for any other party; 

v.    it
acknowledges and agrees that the other party is not acting as a fiduciary or advisor to it in connection with such Transaction; and 

vi.    In
the case of the Counterparty only, it is entering into such Transaction for the purpose of managing its borrowings or investments, hedging its underlying assets or liabilities or
in connection with a line of business, and not for purposes of speculation. 

        5.    Account
Details: 

Payments
to Floating Rate Payer Mandalay Resort Group:

As directed in writing by Floating Rate Payer

Payments to Fixed Rate Payer Citibank, N.A. New York:

Citibank, N.A. New York

ABA # 021000089

Account No. 00167679

Financial Futures

Reference: M022688 

        6.    If
the Counterparty fails to execute and deliver or to negotiate in good faith the Agreement within 180 days of the Trade Date, Citibank, N.A. New York may give
the Counterparty notice that an Additional Termination Event has occurred and is continuing with respect to the Counterparty, in which event the Counterparty will be the single Affected Party. 

3

 

        Mandalay
Resort Group hereby agrees (a) to check this Confirmation (Deal No: M022688) carefully and immediately upon receipt so that errors or discrepancies can be promptly
identified and rectified and (b) to confirm that the foregoing correctly sets forth the terms of the agreement between Citibank, N.A. New York and Mandalay Resort Group with respect to the
particular Transaction to which this Confirmation relates, by manually signing this Confirmation and providing the other information requested herein and immediately returning an executed copy to
facsimile No 212-615-8985. 

        Please
contact us immediately should the particulars of this Confirmation not be in accordance with your understanding 212-615-8981. 

	 	 	Citibank, N.A. New York
	

 	
 	

By:	

/s/  SANJAY MAKKER      
VICE PRESIDENT
	 	 	 	 

	Accepted and confirmed as of the date first written:	 	 
	

Mandalay Resort Group	
 	

 
	

By:	

/s/  GLENN SCHAEFFER      
	
 	

 
	Name:	GLENN SCHAEFFER	 	 
	Title:	PRESIDENT AND CHIEF FINANCIAL OFFICER	 	 

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EXHIBIT 4.3    
  

         

  

	Date:	August 12, 2002
	To:	MANDALAY RESORT GROUP
	Attn:	Kevin Fitzpatrick
	Fax:	702.632.6822
	From:	Citibank N.A., New York

Confirmations Unit

333 West 34th Street, 2nd Floor

New York, NY 10001, USA
	Phone:	1.212.615.8981
	Fax:	1.212.615.8985
	Our ref: M023940

Your ref:

TRANSACTION  

        The purpose of this letter agreement (this "Confirmation") is to set forth the terms and conditions of the Transaction entered into between MANDALAY RESORT GROUP
("Counterparty") and Citibank N.A., New York ("Citibank") on the Trade Date specified below (the "Transaction"). 

        1.    The
definitions and provisions contained in the 2000 ISDA Definitions (the "Definitions") (as published by the International Swaps and Derivatives
Association, Inc.) are incorporated into this Confirmation. References herein to a "Transaction" shall be deemed to be references to a "Swap Transaction" for the purposes of the Definitions. 

        The
purpose of this communication is to set forth the terms and conditions of the above-referenced Transaction entered into on the Trade Date specified below (the "Transaction") between
Citibank and Counterparty. This communication constitutes a "Confirmation" as referred to in the Agreement specified below. 

        This
Confirmation evidences a complete binding agreement between you and us as to the terms of the Transaction to which this Confirmation relates. In addition, you and we agree to use
our best efforts promptly to negotiate, execute and deliver a Master Agreement (Multicurrency-Cross Border) in the form published by the International Swaps and Derivatives Association, Inc.
("ISDA"), with such modifications as you and we shall in good faith agree. Upon the execution by you and us of such Master Agreement (the "Agreement"), this Confirmation will supplement, form a
part of, and be subject
to the Agreement. A copy of the Agreement has been or promptly after the date hereof will be, delivered to you. 

        Prior
to execution of the Agreement the provisions of the Master Agreement (Multicurrency-Cross Border), in the form published by ISDA, are incorporated by reference herein and
form a part of this Confirmation and further, this Confirmation (together with all other Confirmations of Transactions previously entered into between us, notwithstanding anything to the
contrary therein) shall be deemed to be subject to the terms of the Agreement, as if, on the Trade Date of the first such Transaction between us, you and we had executed the Agreement (without any
Schedule thereto). 

        If
Counterparty fails to execute and deliver or to negotiate in good faith the Agreement within 180 days of the Trade Date, Citibank may give Counterparty notice that an
Additional Termination Event has occurred and is continuing with respect to Counterparty, in which event Counterparty will be the only Affected Party. 

1

 

        THIS
CONFIRMATION WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE, PROVIDED THAT THIS PROVISION WILL
BE SUPERSEDED BY ANY CHOICE OF LAW PROVISION IN THE MASTER AGREEMENT. 

        THE
PARTIES HERETO IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES COURT FOR THE SOUTHERN DISTRICT OF NEW YORK IN CONNECTION
WITH ALL MATTERS RELATING HERETO AND WAIVE ANY OBJECTION TO THE LAYING OF VENUE IN, AND ANY CLAIM OF INCONVENIENT FORUM WITH RESPECT TO THESE COURTS 

        2.    The
terms of the particular Transaction to which this Confirmation relates are as follows: 

	Trade Date:	 	August 7, 2002
	

Effective Date:	
 	

August 9, 2002
	

Termination Date:	
 	

August 1, 2007, subject to adjustment in accordance with the Modified Following Business Day Convention
	
Fixed Amounts	
 	

 
	
Fixed Rate Payer:	
 	

Citibank
	

Fixed Rate Payer:

Notional Amount:	
 	

USD 250,000,000.00
	

Fixed Rate Payer Period End Dates:	
 	

Each February 1 and August 1 commencing February 1, 2003 through and including the Termination Date, with No Adjustment
	

Fixed Rate Payer Payment Dates:	
 	

Each February 1 and August 1, commencing February 1, 2003, through and including the Termination Date
	

Fixed Rate Payer Fixed Rate:	
 	

10.25000 percent
	

Fixed Rate Payer Day Count Fraction:	
 	

30/360
	

Fixed Rate Payer Business Days:	
 	

New York and London
	

Fixed Rate Payer Business Day Convention:	
 	

Modified Following
	
Floating Amounts	
 	

 
	
Floating Rate Payer:	
 	

Counterparty
	

Floating Rate Payer Notional Amount:	
 	

USD 250,000,000.00
	

Floating Rate Payer Payment Dates:	
 	

Each February 1 and August 1 commencing February 1, 2003, through and including the Termination Date
	

Floating Rate Payer Floating Rate for initial Calculation Period:	
 	

Six Months Libor in Arrears plus 5.9705 percent
	
 	
 	

 

2

 

	

Floating Rate Payer Floating Rate Option:	
 	

USD-LIBOR-BBA
	

Floating Rate Payer Designated Maturity:	
 	

Six months
	

Floating Rate Payer Spread:	
 	

Plus 5.9705 percent
	

Floating Rate Payer Day Count Fraction:	
 	

Actual/360
	

Floating Rate Payer Reset Dates:	
 	

The Floating Rate is set in arrears. The Floating Rate Payer Reset Date with respect to each Calculation Period is the last day of such Calculation Period
	

Compounding:	
 	

Inapplicable
	

Floating Rate Payer Business Days:	
 	

New York and London
	

Floating Rate Payer Business Day Convention:	
 	

Modified Following
	

Calculation Agent:	
 	

Citibank
	

 	
 	

 

        Representations: 

(a)    In
connection with this Confirmation, the Transaction to which this Confirmation relates and any other documentation relating to the Agreement, each party to this Confirmation
represents and acknowledges to the other party that: 

(i)    it
is not relying on any advice, statements or recommendations (whether written or oral) of the other party regarding such Transaction, other than the written representations
expressly made by that other party in the Agreement and in this Confirmation in respect of such Transaction; 

(ii)    it
has the capacity to evaluate (internally or through independent professional advice) such Transaction (including decisions regarding the appropriateness or suitability of such
Transaction) and has made its own decision to enter into such Transaction; 

(iii)    it
understands the terms, conditions and risks of such Transaction and is willing to accept those terms and conditions and to assume (financially and otherwise) those risks; 

(iv)    it
is entering into such Transaction, as principal and not as an agent for any other party; 

(v)    it
acknowledges and agrees that the other party is not acting as a fiduciary or advisor to it in connection with this Transaction; and 

(vi)    In
the case of the Counterparty only, it has entered into this Transaction for the purpose of (i) managing its borrowings or investments, (ii) hedging its underlying
assets or liabilities or (iii) in connection with its line of business. 

        4.    Account
Details 

	

Payments to Citibank in USD:	
 	

CITIBANK N.A. NEW YORK

BIC: CITIUS33

ACCOUNT NO 00167679

ACCOUNT NAME: FINANCIAL FUTURES
	

Payments to Counterparty:	
 	

Please provide to expedite payment
	

 	
 	

 

3

 

        If
you have any questions regarding this letter agreement, please contact the Swap Operations Department at the telephone numbers or the facsimile numbers indicated on this Confirmation. 

        Please
confirm that the foregoing correctly sets forth the terms of our agreement by executing the copy of this Confirmation enclosed for that purpose and returning it to us. 

	

 	
 	

Very truly yours,

Citibank N.A., New York
	

 	
 	

By:	

/s/  FRANK A. LICCIARDELLO      

	

 	
 	

 	

 

	

Accepted and confirmed as of the Trade Date:	
 	

 
	

MANDALAY RESORT GROUP	
 	

 
	

By:	

/s/  GLENN SCHAEFFER      
PRESIDENT AND CHIEF FINANCIAL OFFICER	
 	

 
	

 	

 	
 	

 
	

 	

 	
 	

 

4

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EXHIBIT 4.3

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