Document:

Exhibit 4.16

 

SUPPLEMENTAL INDENTURE

 

                THIS SUPPLEMENTAL INDENTURE
(this “Supplemental Indenture”), dated as of March 7, 2008 (the “Effective Date”),
among MTR Gaming Group, Inc., a Delaware corporation (the “Issuer”), the
guarantors executing this Supplemental Indenture (the “Guarantors”) and Wells
Fargo Bank, N.A., as trustee (the “Trustee”), under the Indenture dated as of May 25,
2006, as supplemented on or prior to the date hereof (as so supplemented, the “Indenture”).
Capitalized terms used herein and not otherwise defined shall have the
respective meanings ascribed to them in the Indenture.

 

                WHEREAS, pursuant to the terms
of Article Ten of the Indenture, each Guarantor, by executing the
Indenture, jointly and severally, unconditionally guarantees the Issuer’s
payment and performance obligations under the Indenture;

 

                WHEREAS, in accordance with Article Ten
of the Indenture, upon the sale or disposition of a Guarantor to a Person which
is not, and is not required to become, a Guarantor, which transaction is
otherwise in compliance with the Indenture, such Guarantor will be deemed
released from its obligations under its Guarantee of the Notes, subject to the
requirements of the Indenture;

 

                WHEREAS, Section 9.1(d) of
the Indenture permits the Issuer, the Trustee and the Guarantors to supplement
the Indenture for the purpose of evidencing the release of any Guarantor under
the terms of the Indenture; and

 

                NOW THEREFORE, in consideration
of the agreements and obligations set forth herein and for other good and
valuable consideration, the sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

                Section 1.               Definitions.  All capitalized terms used in this
Supplemental Indenture not defined herein shall have the meanings ascribed to them
in the Indenture.

 

                Section 2.               Release of Guarantor.  Speakeasy Gaming of Fremont, Inc. is
hereby released as a Guarantor and from all of the obligations of a Guarantor
under the Indenture, as amended and supplemented on or prior to the date
hereof.

 

                Section 3.               Counterparts.  This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same document.

 

                Section 4.               Governing Law.  This Supplemental Indenture shall be governed
by and construed in accordance with the laws of the State of New York, without
regard to the principles of conflicts of laws.

 

 

IN WITNESS WHEREOF, the parties
hereto have caused this Supplemental Indenture to be duly executed all as of
the date hereof.

 

	
  ISSUER:

  	
   

  	
   

  
	
   

  	
  MTR GAMING GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President and CEO

  
	
   

  	
   

  	
   

  
	
  GUARANTORS:

  	
   

  	
   

  
	
   

  	
  MOUNTAINEER PARK, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESQUE ISLE DOWNS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF LAS VEGAS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  

 

2

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF RENO, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MTR—HARNESS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SCIOTO DOWNS, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF FREMONT, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  

 

3

 

	
   

  	
   

  	
   

  
	
   

  	
  JACKSON RACING, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edson R. Arneault

  
	
   

  	
   

  	
  Name: Edson R. Arneault

  
	
   

  	
   

  	
  Title: President

  

 

 

	
  WELLS FARGO BANK, N.A., as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Joseph O’Donnell

  	
   

  
	
   

  	
  Name: Joseph O’Donnell

  	
   

  
	
   

  	
  Title: Vice President

  	
   

  

 

 

4Exhibit 10.14

 

LIMITED WAIVER AND SECOND AMENDMENT 

TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

 

This LIMITED
WAIVER AND SECOND AMENDMENT TO FIFTH AMENDED AND RESTATED CREDIT AGREEMENT
(this “Second Amendment”), dated as of March 31, 2008, is entered
into by and among: (A) MTR GAMING GROUP, INC., a Delaware corporation (“MTRI”),
MOUNTAINEER PARK, INC., a West Virginia corporation (“MPI”), SPEAKEASY
GAMING OF LAS VEGAS, INC., a Nevada corporation (“SGLVI”), PRESQUE ISLE
DOWNS, INC., a Pennsylvania corporation (“PIDI”), and SCIOTO DOWNS,
INC., an Ohio corporation (“SDI” and together with MTRI, MPI, SGLVI and
PIDI, each, a “Borrower” and collectively, the “Borrowers”); (B) the
Requisite Lenders; and (C) WELLS FARGO BANK, NATIONAL ASSOCIATION, as
administrative agent and collateral agent for the Lenders under the Credit
Agreement, the Swingline Lender and the L/C Issuer (in such capacity, the “Agent
Bank”).  Capitalized terms used
herein and not otherwise defined herein shall have the meanings given to them
in the Credit Agreement defined below.

 

RECITALS

 

A.            Borrowers, the Agent Bank and the
Lenders have previously entered into that certain Fifth Amended and Restated
Credit Agreement, dated as of September 22, 2006 (the “Original Credit
Agreement”), as amended by First Amendment to Fifth Amended and Restated
Credit Agreement dated as of June 19, 2007 (the “First Amendment”
and together with the Original Credit Agreement as in effect prior to the date
hereof, the “Existing Credit Agreement” and as the same may be further
amended, restated, supplemented or otherwise modified and in effect from time
to time, including, but not limited to, by this Second Amendment, the “Credit
Agreement”), by and among Borrowers, the Lenders, and Wells Fargo Bank,
National Association, as Agent Bank, L/C Issuer and Swingline Lender.

 

B.            As of the date of this Second
Amendment, Events of Default have occurred and are continuing under the
Existing Credit Agreement as a result of the “Covenant Defaults,” as such term
is defined in Recital D of that certain Agreement for Release of
Collateral, Application of Sale Proceeds and Forbearance dated as of March 5,
2008 between the Borrowers and Agent Bank.

 

C.            Borrowers have requested a limited
waiver with respect to the Covenant Defaults and certain amendments to the
Existing Credit Agreement as set forth below.

 

D.            The Agent Bank and the Requisite
Lenders are willing to grant such requests on the terms and subject to the
conditions set forth in this Second Amendment.

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the foregoing, the mutual covenants and agreements set
forth below and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereby agree, except as otherwise
set forth herein, as of the Second Amendment Effective Date (as defined in Section 4
below) as follows:

 

1

 

SECTION 1.                         Limited Waiver.  On the terms and subject to the
conditions of this Second Amendment (including the satisfaction of the
conditions precedent set forth in Section 4 below), the Agent Bank
and the Requisite Lenders hereby waive the Covenant Defaults.  The foregoing limited waiver of the Covenant
Defaults is a one-time waiver and not a continuing waiver, and shall apply only
to the matters and time periods set forth in the definition of Covenant
Defaults.  Without limiting the
generality of the foregoing, such waiver shall not apply to any failure by
Borrowers to comply with any of the covenants in the Credit Agreement giving
rise to the Covenant Defaults or any other provisions of the Credit Agreement
or any other Loan Documents.

 

SECTION 2.                         Amendments.  On the terms and subject to the conditions of
this Second Amendment (including the satisfaction of the conditions precedent
set forth in Section 4 below), the Existing Credit Agreement is
hereby amended as follows:

 

(a)           Definition
of “Acceptable Senior Refinancing”. 
The definition of “Acceptable Senior Refinancing” is hereby added to Section 1.01
of the Existing Credit Agreement as follows:

 

“Acceptable Senior Refinancing” shall
mean a full refinancing of the Senior Unsecured Notes on an unsecured basis and
otherwise on terms and conditions and pursuant to documents, in each case,
acceptable to the Requisite Lenders in their sole discretion (including,
without limitation, the amount, maturity, amortization, interest rate,
covenants, defaults and remedies) and the Requisite Lenders have confirmed such
acceptability in writing.

 

(b)           Definition
of “Adjusted Fixed Charge Coverage Ratio”. 
The definition of “Adjusted Fixed Charge Coverage Ratio” in Section 1.01
of the Existing Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“Adjusted Fixed Charge Coverage Ratio” shall mean as of the last
day of each Fiscal Quarter with reference to the Borrower Consolidation:

 

An amount
equal to the sum of the following: (i) EBITDA for the four Fiscal Quarter
period ending on that date, plus (ii) the sum of equity
contributions received by the Borrower Consolidation during the four Fiscal
Quarter period ending on that date plus, to the extent not already
included in the calculation of EBITDA, the aggregate amount of cash gains from
any sale of Non-Core Assets of any Borrower that are recognized during the four
Fiscal Quarter period ending on that date; provided that the aggregate
amount under this clause (ii) shall not exceed Two Million Dollars
($2,000,000) for the four Fiscal Quarter period ending on that date, minus
(iii) the aggregate amount of Distributions actually paid during the four
Fiscal Quarter period ending on that date, minus (iv) the aggregate
amount federal and state taxes on or measured on or measured by income that
were actually paid during the four Fiscal Quarter period ending on that date
(less the aggregate amount of any income tax refunds actually received during
such period), minus (v) the

 

2

 

aggregate
amount of the Capital Expenditure Proxy Amount for the four Fiscal Quarter
period ending on that date

 

Divided by
(÷)

 

An amount
equal to the sum of the following: (i) Interest Expense (expensed and
capitalized) determined for the four Fiscal Quarter period ending on that date,
plus (ii) the current portion of all interest bearing Indebtedness
as of the end of the four Fiscal Quarter period ending on that date, plus
(iii) the current portion of Capitalized Lease Liabilities as of the end
of the four Fiscal Quarter period ending on that date.

 

(c)           Definition of “Aggregate
Commitment”.  The definition of
“Aggregate Commitment” in Section 1.01 of the Existing Credit
Agreement is hereby amended and restated in its entirety as follows:

 

“Aggregate Commitment” shall mean reference to the aggregate
amount committed by Lenders for advance to or on behalf of the Borrowers as
Borrowings under the Credit Facility in the principal amount of One Hundred
Twenty Five Million Dollars ($125,000,000.00) as of the Second Amendment
Effective Date, as may be reduced from time to time by: (i) the Scheduled
Reductions, (ii) Voluntary Permanent Reductions, and/or (iii) Mandatory
Commitment Reductions.

 

(d)           Definition
of “Applicable Margin”.  The
definition of “Applicable Margin” in Section 1.01 of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“Applicable Margin” shall mean (i) for any Base Rate Loan,
2.250% and (ii) for any LIBOR Loan, prior to the Second Amendment
Effective Date, 2.875% and, from and after the Second Amendment Effective Date,
5.000%.

 

(e)           Definition
of “Capital Proceeds”.  The
definition of “Capital Proceeds” in Section 1.01 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Capital Proceeds” shall mean the
proceeds received by the Borrower Consolidation from (i) partial or total
condemnation or destruction of any part of any property of the Borrowers or any
Subsidiary of the Borrowers, (ii) insurance proceeds (other than rent
insurance and business interruption insurance) received in connection with
damage to or destruction of any property of the Borrowers or any Subsidiary of
the Borrowers, and (iii) the sale, transfer, conveyance or other
disposition of any portion of any property of the Borrowers or any Subsidiary
of the Borrowers (not including, however, any proceeds received by Borrowers,
or any of them, from a condemnation, damage or destruction of FF&E or other
personal property if such FF&E or other personal property is replaced by
items of equivalent value and utility, in each case such exclusion to apply only
during any period in which no Default or Event of Default has occurred and is
continuing).

 

3

 

(f)            Definition
of “Cash Collateralize”.  The
definition of “Cash Collateralize” is hereby added to Section 1.01
of the Existing Credit Agreement as follows:

 

“Cash Collateralize” shall mean to pledge and deposit with or
deliver to the Agent Bank, for the benefit of the Banks, as collateral for the
Obligations, cash or deposit account balances in an amount equal to the then
applicable L/C Exposure pursuant to documentation in form and substance
reasonably satisfactory to the Agent Bank (which documents are hereby consented
to by the Lenders).  Derivatives of such
term shall have a corresponding meaning.

 

(g)           Definition
of “Change of Control”. The definition of “Change of Control in Section 1.01
of the Existing Credit Agreement is hereby amended by (i) deleting the “.”
at the end of paragraph “(c)” and replacing it with “; or” and (ii) adding
thereto the following paragraph “(d)”:

 

“(d)         A “Change of Control”
as defined in the Senior Subordinated Indenture, a “Change of Control” as
defined in the Senior Unsecured Indenture or a “change of control” or “change
in control” as defined in any document governing any other Indebtedness of any
Borrower or Restricted Subsidiary which gives the holders of such Indebtedness
the right to accelerate or otherwise require payment or redemption of such
Indebtedness prior to the maturity date thereof.”

 

(h)           Definition
of “EBITDA”.  The definition of
“EBITDA” in Section 1.01 of the Existing Credit Agreement is hereby
amended and restated in its entirety as follows:

 

“EBITDA” shall mean, for any period with reference to the Borrower
Consolidation, (a) Net Income for such period plus, (b) to the
extent deducted in determining such Net Income for such period, the sum of the
following for such period, without duplication: (i) Interest Expense
(expensed and capitalized) for such period , (ii) the aggregate amount of
federal and state taxes on or measured by income for such period (whether or
not payable during that period), (iii) depreciation, amortization and all other
non-cash expenses for such period, (iv) all non-cash losses and
extraordinary losses and (v) preopening expenses for such period, minus
(c) all non-cash gains and extraordinary gains to the extent taken into
account in arriving at such Net Income, in each case as determined in
accordance with GAAP.

 

For purposes of Financial Covenants, EBITDA shall include only Cash
distributions actually funded by an Unrestricted Subsidiary that are received
by the Borrower Consolidation.

 

Pro forma credit shall be given for the EBITDA of a company (or
identifiable business unit or division) included in Borrower Consolidation that
was acquired in a transaction permitted by this Credit Agreement as if such
company (or identifiable business unit or division) was owned on the first day
of the applicable period; companies (or identifiable business units or
divisions) sold, transferred or otherwise

 

4

 

disposed of
during any period will be treated as if not owned during the entire applicable
period.

 

(i)            Definition
of “Mandatory Commitment Reduction(s)”. 
The definition of “Mandatory Commitment Reduction(s)” in Section 1.01
of the Existing Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“Mandatory Commitment Reduction(s)”
shall mean a permanent reduction of the Aggregate Commitment which shall be
made from time to time as may be required under Sections 2.15, 5.12, 5.26
and/or 8.02.

 

(j)            Definition
of “Maturity Date”.  The definition
of “Maturity Date” in Section 1.01 of the Existing Credit Agreement
is hereby amended and restated in its entirety as follows:

 

“Maturity Date” shall mean March 31,
2010; provided, however, in the event the Senior Unsecured Notes are not
fully refinanced pursuant to an Acceptable Senior Refinancing by October 1,
2009, the “Maturity Date” shall be October 1, 2009.

 

(k)           Definition
of “Net Proceeds”.  The definition of
“Net Proceeds” in Section 1.01 of the Existing Credit Agreement is
hereby amended and restated in its entirety as follows:

 

“Net Proceeds” shall mean the
aggregate cash proceeds received by the Borrower Consolidation in respect of (a) Capital
Proceeds net of the direct costs relating to such sale, transfer, conveyance or
disposition of FF&E or any other property of the Borrowers or any
Subsidiary of the Borrowers, amounts required to be applied to the repayment of
Indebtedness secured by a Lien on the asset or assets that were the subject of
such sale, transfer, conveyance or disposition of FF&E or any other
property of the Borrowers or any Subsidiary of the Borrowers and all
Indebtedness assumed by the purchaser in connection with such sale, transfer, conveyance
or disposition of FF&E or any other property of the Borrowers or any
Subsidiary of the Borrowers and all taxes paid or payable as a result of such
sale, transfer, conveyance or disposition, and (b) any Equity Offering
issued by MTRI, in each case less all costs, fees and expenses (including
without limitation underwriting, placement, financial advisory and similar fees
and expenses) incurred in connection with the issuance of such Equity Offering,
but shall not include the proceeds of Insider Cash Loan and Insider Non-Cash
Loans, until such Insider Non-Cash Loans have been repaid.

 

(l)            Definition
of “Non-Core Assets”.  The definition
of “Non-Core Assets” is hereby added to Section 1.01 of the
Existing Credit Agreement as follows:

 

“Non-Core Assets” shall mean all assets of the Borrower
Consolidation other than (i) the MPI Hotel/Casino Facilities and all
operations and business conducted at or in connection with the MPI Hotel/Casino
Facilities and all assets located at the MPI Hotel/Casino Facilities or used in
the operations or business of or useful to the MPI Hotel/Casino Facilities, (ii) the
SDI Facility and all operations and business conducted at or in connection with
the SDI Facility and all assets located at the SDI Facility or used in

 

5

 

the operations
or business of or useful to the SDI Facility, (iii) the PIDI Facility and
all operations and business conducted at or in connection with the PIDI
Facility and all assets located at PIDI Facility or used in the operations or
business of or useful to the PIDI Facility, (iv) the Borrowers, (v) the
Unrestricted Subsidiaries and (vi) the common stock, preferred stock,
participations, shares, partnership interests, limited liability company
interests or other equity interests of any Borrower and any Restricted
Subsidiary (regardless of how designated and whether or not voting or
non-voting) and warrants, options and other rights to acquire any of the
foregoing.

 

(m)          Definition
of “Phase II SGLVI Net Proceeds”.  Section 1.01
of the Existing Credit Agreement is hereby amended and restated by adding
thereto the following:

 

“Phase II SGLVI Net Proceeds” shall mean the Net Proceeds
resulting from the sale or disposition of the personal property consisting of
the SGLVI Collateral.

 

(n)           Definition
of “Revolving Credit Note”.  The
definition of “Revolving Credit Note” in Section 1.01 of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“Revolving Credit Note” shall mean
collective reference to the Revolving Credit Note (Second Restated), a copy of
which is marked “Exhibit A”, affixed to the Second Amendment and by this
reference incorporated herein and made a part hereof, to be executed by
Borrowers on or before the Second Amendment Effective Date, payable to the
order of Agent Bank on behalf of the Lenders, evidencing the Credit Facility,
together with each Replacement Note or Replacement Notes issued on and after
the Second Amendment Effective Date to one or more of the Lenders pursuant to Section 2.05(i)
evidencing the respective Syndication Interest of such Lender or Lenders,
in each case as the same may be amended, modified, supplemented, replaced,
renewed or restated from time to time, which Revolving Credit Note shall fully
restate and supersede the revolving credit note (first restated) and
replacement notes issued in connection with the Existing Credit Agreement.

 

(o)           Definition
of “Schedule of Lenders’ Proportions in Credit Facility”.  The definition of “Schedule of Lenders’
Proportions in Credit Facility” in Section 1.01 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Schedule of Lenders’ Proportions in
Credit Facility”, a copy of which is set forth as Schedule 2.01(a),
affixed to the Second Amendment and by this reference incorporated herein and
made a part hereof, setting forth the respective Syndication Interest and
maximum amount to be funded under the Credit Facility by each Lender with
respect to the Aggregate Commitment as of the Second Amendment Effective Date,
as the same may be amended or restated from time to time in connection with an
Assignment and Assumption Agreement, which revised Schedule 2.01(a) shall
fully restate and supersede Schedule 2.01(a) attached to the
Existing Credit Agreement and all previous amendments and restatements thereof.

 

(p)           Definition
of “Senior Secured Leverage Ratio”. 
The definition of

 

6

 

“Senior Secured Leverage Ratio” in Section 1.01 of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“Senior Secured Leverage Ratio” as of
the end of any Fiscal Quarter shall mean the ratio resulting by dividing (a) Total
Senior Secured Funded Debt as of such date by (b) EBITDA for the four
Fiscal Quarter period ending on that date.

 

(q)           Definition
of “Subordinated Obligations”.  The
definition of “Subordinated Obligations” is hereby added to Section 1.01
of the Existing Credit Agreement as follows:

 

“Subordinated Obligations” shall mean,
as of any date of determination (without duplication), any Indebtedness of the
Borrowers or any of their respective Restricted Subsidiaries (including the
Senior Subordinated Notes) on that date which has been subordinated in right of
payment to the Obligations in a manner reasonably satisfactory to the Requisite
Lenders and contains such other protective terms with respect to senior
debt (such as amount, maturity, amortization, interest rate, covenants,
defaults, remedies, payment blockage and terms of subordination) as the
Requisite Lenders may require in their sole discretion.

 

(r)            Definition
of “Total Funded Debt”.  The
definition of “Total Funded Debt” in Section 1.01 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Total Funded Debt” shall mean with reference to the Borrower
Consolidation for any period: (i) the Aggregate Outstandings as of the
last day of such period, plus (ii) the total as of the last day of
such period of both the long-term and current portions (without duplication) of
all other Indebtedness (including Contingent Liabilities) and Capitalized Lease
Liabilities.

 

(s)           Definition
of “Total Leverage Ratio”.  The
definition of “Total Leverage Ratio” in Section 1.01 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Total Leverage Ratio” as of the end of any
Fiscal Quarter shall mean the ratio resulting by dividing (a) Total Net Funded
Debt as of such date by (b) EBITDA for the four Fiscal Quarter period
ending on that date.

 

(t)            No
LIBOR Loans.  Article I
of the Existing Credit Agreement is hereby amended by adding a new Section 1.06
thereto as follows:

 

“Section 1.06         No LIBOR Loans. 
Notwithstanding anything in this Credit Agreement or the other Loan
Documents to the contrary, from and after the Second Amendment Effective Date,
Borrowers shall have no right to borrow, convert, continue or otherwise hold or
obtain LIBOR Loans; provided that any and all LIBOR Loans outstanding as
of the Second Amendment Effective Date shall remain LIBOR Loans until the end
of then-current Interest Period and upon the expiration of the applicable
Interest Period such LIBOR Loan shall be automatically converted to a Base Rate
Loan.”

 

7

 

(u)           Commitment Increases - Removed.  Section 2.01(d) of the
Existing Credit Agreement is hereby amended by replacing “Fifty Million Dollars
($50,000,000.00)” with “Zero Dollars ($0).”

 

(v)           Interest Payment Dates.  The second sentence of Section 2.05(b) of
the Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“Interest accrued on each Base Rate Loan shall be due and payable on (a) the
Second Amendment Effective Date, (b) thereafter, on the 20th day of each
calendar month (or if the 20th day of such calendar month is not a Banking
Business Day, the first Banking Business Day thereafter) and (c) the
Maturity Date.”

 

(w)          Commitment Fee.  Section 2.09(b) of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“b.           Borrowers
shall pay a monthly nonusage fee (the “Commitment Fee”) to the Agent
Bank for the account of the Lenders.  The
Commitment Fee shall commence to accrue on the Second Amendment Effective Date
and shall be calculated as the product of (i) 0.75% multiplied by
an amount equal to (ii) the daily average of the Aggregate Commitment less
the daily average of the Funded Outstandings computed on the basis of a three
hundred sixty (360) day year based on the number of actual days elapsed.  Each Commitment Fee shall be payable in
arrears on a monthly basis on or before the fifth (5th) day following receipt
by Borrowers of an invoice from Agent Bank setting forth the amount of such
Commitment Fee for each applicable calendar month, and upon Bank Facilities
Termination.  Each Commitment Fee shall
be promptly distributed by Agent Bank to Lenders in proportion to their
respective Syndication Interest in the Credit Facility, as in effect from time
to time during each applicable calendar month.”

 

(x)            Letters of Credit Fees.  Sections 2.09(c)(i) of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“(i)          As
of the Second Amendment Effective Date, Borrowers have paid all unpaid letter
of credit fees accrued and unpaid as of the Second Amendment Effective Date for
each Letter of Credit outstanding under the Existing Credit Agreement.  With respect to all Letters of Credit issued
hereunder for the period from and including the day each such Letter of Credit
issued to, but excluding, the applicable Stated Expiry Date, the Borrowers
shall pay to the Agent Bank a letter of credit fee (“L/C Fee”) equal to
the greater of (i) Five Hundred Dollars ($500.00) and (ii) the Stated
Amount of each such Letter of Credit multiplied by 5.00% (per annum), due and
payable monthly in arrears on the first Banking Business Day of each month and
on the Stated Expiry Date of each such Letter of Credit.”

 

(y)           Late Fees.  Section 2.09 of the Existing
Credit Agreement is hereby amended and restated by adding thereto the following
paragraphs at the end thereof:

 

“d.           In
the event that Borrowers fail to comply with Section 5.08(a), (b),
(c), (d) or (e) in any respect on or before the due
date set forth in Section 5.08(a), (b),

 

8

 

(c),
(d) or (e), Borrowers shall pay to Agent Bank for the account of
the Lenders in respect of each such failure a per occurrence fee equal to
$50,000.00 (each, a “Per Occurrence Fee”), which shall be due and
payable on the first day after such due date.
The Per Occurrence Fees shall not be refundable under any
circumstances.  Each Per Occurrence Fee
received by Agent Bank shall be promptly distributed by Agent Bank to Lenders
in proportion to their respective Syndication Interests in the Credit Facility
at the time of receipt by Agent Bank. 
Nothing herein shall limit any rights and remedies the Agent Bank or the
Lenders may have in respect of any such failure to timely comply with Section 5.08(a),
(b), (c), (d) or (e).”

 

(z)            Mandatory Prepayments/Commitment
Reductions.  Article II
of the Existing Credit Agreement is hereby amended by adding a new Section 2.15
thereto as follows:

 

“Section 2.15.        Mandatory Prepayments; Aggregate Commitment
Reductions.  Borrowers shall prepay
or Cash Collateralize (if applicable) the Obligations as follows:

 

a.             If,
at any time after the Second Amendment Effective Date, any Borrower or any
Subsidiary of a Borrower sells or otherwise disposes of any property (other
than as permitted under Section 6.12(a) and Section 6.12(b)),
Borrowers shall, not later than five (5) Banking Business Days after the
completion of such sale or other disposition, prepay the outstanding
Obligations in the manner set forth in Section 2.15(d), in an
aggregate principal amount equal to one hundred percent (100%) of the Net
Proceeds (other than Phase II SGLVI Net Proceeds up to $2,000,000 so long as no
Event of Default has occurred and is continuing) from such sale or
disposition.  Notwithstanding the
foregoing, Borrowers shall not be required to make a prepayment pursuant to
this Section 2.15(a) with respect to any sale or other
disposition made under Section 6.12(c) (a “Relevant Sale”)
if Borrowers reinvest such Net Proceeds in assets used or useful in their
business within one hundred eighty (180) days after the date of such
Relevant Sale.  Upon the Agent Bank’s
request, Borrowers shall provide proof, reasonably satisfactory to the Agent
Bank, that such Net Proceeds have been reinvested within such one hundred
eighty (180) day period.  If, at any time
after the occurrence of a Relevant Sale and prior to the acquisition of the
related replacement assets, the one hundred eighty (180) day period
provided in the preceding sentence shall elapse, a mandatory prepay event is triggered
under Section 2.15(b) or an Event of Default shall occur, then
Borrowers shall promptly prepay the Obligations in the amount and in the manner
described in Section 2.15(d).

 

b.             If,
at any time after the Second Amendment Effective Date, the Borrower
Consolidation or any member thereof would have an obligation to redeem, prepay
or otherwise purchase or have an obligation to make an offer to redeem, prepay,
or otherwise purchase Senior Unsecured Notes (including any Indebtedness under
any refinancing thereof) or the Senior Subordinated Notes or all or any portion
of the amounts owing thereunder (for example under Section 4.13 of the
Senior Unsecured Indenture and Section 4.13 of the Senior Subordinated
Indenture), then not later than five (5) Banking Business Days prior to
the date such obligation would otherwise arise in respect of the 

 

9

 

Senior
Unsecured Notes (including any Indebtedness under any refinancing thereof) or
the Senior Subordinated Notes Borrowers shall prepay the outstanding
Obligations in the manner set forth in Section 2.15(d), in an
aggregate principal amount equal to the amount necessary to cause any such
obligation in respect of the Senior Unsecured Notes (including any Indebtedness
under any refinancing thereof) or the Senior Subordinated Notes to not
arise.  Notwithstanding the foregoing, in
no event shall the Borrower Consolidation or any member thereof have an
obligation to make a prepayment under this Section 2.15(b) upon
the occurrence of a “Required Regulatory Redemption” under Section 3.8
of the Senior Subordinated Indenture.

 

c.             If,
at any time after the Second Amendment Effective Date, a Change of Control
shall occur, Borrowers shall within five (5) Banking Business Days thereafter,
prepay the outstanding Obligations in the manner set forth in Section 2.15(d),
in an aggregate principal amount equal to one hundred percent (100%) of the
Obligations outstanding.

 

d.             The
amount of all required prepayments shall be applied as follows:  (A) to prepay the Swingline Loans to the
extent Swingline Loans are then outstanding, (B) then to prepay the loans,
advances and all other Obligations (other than L/C Exposure) to the extent
loans, advances and other Obligations (other than L/C Exposure) are then
outstanding and (C) otherwise, to cash collateralize the Obligations in an
amount equal to the L/C Exposure in form and substance satisfactory to the
Agent Bank, which cash collateral will be applied to any loans or advances or
reimbursement obligations or other payment obligations that exist or arise
hereunder from and after the date such cash collateral has been pledged as
contemplated herein, and if such L/C Exposure has been reduced to zero and no
other Obligations are outstanding, then such cash collateral will be delivered
to the persons legally entitled thereto. 
As of the date any prepayment is required under this Section 2.15,
the Aggregate Commitment shall be automatically reduced by the amount of the
prepayment required under this Section 2.15.

 

e.             The
Aggregate Commitment shall be automatically and permanently reduced to zero on
the earlier of (i) the date that a Change of Control occurs and (ii) the
Maturity Date.”

 

(aa)         Subsidiaries.  Section 4.24 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“As of the Second Amendment Effective Date,
no member of the Borrower Consolidation has any Subsidiaries that are not
members of the Borrower Consolidation, other than those Subsidiaries existing
as of the Second Amendment Effective Date which are described on the Schedule
of Restricted and Unrestricted Subsidiaries attached to the Second Amendment as
Schedule 4.24.”

 

(bb)         Senior Unsecured Indenture.  The last two sentences of Section 4.27
of the Existing Credit Agreement are hereby amended and restated in their
entirety as follows:

 

10

 

“No Default or Event of Default under and as defined in the Senior
Unsecured Indenture (including any successor Indenture or governing document)
and the Borrower Consolidation has done all things required to be done to keep
unimpaired its rights thereunder.  This
Credit Agreement, the Loan Documents, the Bank Facilities and all Obligations
(including Swingline Loans and all other loans and advances hereunder from and
after such Swingline Loans, loans and advances are made and including Letters
of Credit from and after the date such Letters of Credit are issued) are
permitted under the terms of the Senior Unsecured Indenture.”

 

(cc)         Senior Subordinated Indenture.  The last two sentences of Section 4.28
of the Existing Credit Agreement are hereby amended and restated in their
entirety as follows:

 

“No Default or Event of Default under and as
defined in the Senior Subordinated Indenture (including any successor Indenture
or governing document) and the Borrower Consolidation has done all things
required to be done to keep unimpaired its rights thereunder.  This Credit Agreement, the Loan Documents,
the Bank Facilities and all Obligations (including Swingline Loans and all
other loans and advances hereunder from and after such Swingline Loans, loans
and advances are made and including Letters of Credit from and after the date
such Letters of Credit are issued) are permitted under the terms of the Senior
Subordinated Indenture, and all Obligations (including Swingline Loans and all
other loans and advances hereunder from and after such Swingline Loans, loans
and advances are made and including Letters of Credit from and after the date
such Letters of Credit are issued) are “Senior Debt” and “Designated Senior
Debt” as defined in the Senior Subordinated Indenture.”

 

(dd)         Compliance Certificate.  Section 5.08(e) of the
Existing Credit Agreement is hereby amended by adding the following to the end
of such Section:

 

“The Compliance Certificate shall also include (i) a
representation by the Borrowers that they have taken all steps necessary to
prevent having an obligation to redeem, prepay or otherwise purchase or an
obligation to make an offer to redeem, prepay or otherwise purchase (A) any
Senior Unsecured Notes or any portion thereof (including any Indebtedness of
any refinancing thereof) under Section 4.13 of the Senior Unsecured
Indenture (and any successor section) or (B) any Senior Subordinated Notes
or any portion thereof under Section 4.13 of the Senior Subordinated
Indenture (and any successor section) and (ii) a brief explanation in
narrative form which explains those steps.”

 

(ee)         Asset Sales.  Section 5.08 of the Existing
Credit Agreement is hereby amended and restated in its entirety by adding
thereto the following clause “(i)” immediately after clause “(h)”:

 

“i.  Within three (3) Banking
Business Days after each sale or any other disposition of any assets by any
Borrower or any Subsidiary of a Borrower, the Borrowers shall promptly notify
the Agent Bank in writing of: (I) the date of such sale or other
disposition, (II) the assets that were sold or otherwise disposed of, (III)
the

 

11

 

consideration
received by the Borrowers for such sale or other disposition, (IV) the
amount of “Net Cash Proceeds” (as such term is defined in the Senior
Subordinated Indenture) received from such sale or other disposition and (V) the
amount of “Net Cash Proceeds” (as such term is defined in the Senior Unsecured
Indenture, or if there is an Acceptable Senior Refinancing, the analogous term
(if any) in the documents entered into in connection therewith) received from
such sale or other disposition.”

 

(ff)           Prohibition on Prepayment or Defeasance
of Senior Unsecured Debt.  Section 5.25
of the Existing Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“Section 5.25.    Prohibition on Prepayment or
Defeasance of Senior Unsecured Debt. 
Notwithstanding anything contained in the Credit Agreement to the
contrary, no member of the Borrower Consolidation shall, except with the prior
written consent of the Requisite Lenders, pay, prepay, purchase, redeem, retire
or otherwise acquire for value, or set apart any money for a sinking,
defeasance or other analogous fund for, the purchase, redemption, retirement or
other acquisition of, or make any voluntary payment or prepayment of the
principal of or interest on, or any other amount owing in respect of, the
Senior Unsecured Notes or Senior Subordinated Notes or any Subordinated
Obligations, except for (i) a refinance of the Senior Unsecured Notes
pursuant to an Acceptable Senior Refinancing by October 1, 2009, (ii) regularly
scheduled payments of interest in respect of such Senior Unsecured Notes
required pursuant to the instruments evidencing such Senior Unsecured Notes and
the Senior Unsecured Indenture, (iii) regularly scheduled payments of
interest in respect of such Senior Subordinated Notes required pursuant to the
instruments evidencing such Senior Subordinated Notes and the Senior
Subordinated Indenture to the extent such payments are not blocked or
prohibited under the terms of such Senior Subordinated Notes and the Senior
Subordinated Indenture, (iv) the principal amount of any Regulatory
Redemption required by any Gaming Authority and (v) with respect to any
other Subordinated Obligations, payments expressly permitted by the terms of
such Subordinated Obligations and the subordination provisions related thereto,
in each case, which have been approved by the Requisite Lenders in their sole
discretion as contemplated by this Credit Agreement.   Notwithstanding anything contained in the
Credit Agreement to the contrary, no member of the Borrower Consolidation
shall, except with the prior written consent of the Requisite Lenders,
supplement, modify, amend, restate, extend or otherwise change the terms of the
Senior Unsecured Notes (including any refinancing thereof), the Senior
Unsecured Indenture (including any refinancing thereof), the Senior
Subordinated Notes, the Senior Subordinated Indenture or any document related
thereto or any document, instrument or agreement evidencing or governing or any
Subordinated Obligations.

 

(gg)         Total Leverage Ratio.  Section 6.01 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.01. Total Leverage Ratio.  Commencing as of the Fiscal Quarter ending on
March 31, 2008 and continuing as of each Fiscal Quarter end until Bank
Facilities Termination, the Borrower Consolidation shall maintain a Total
Leverage

 

12

 

Ratio no
greater than the ratios described hereinbelow as of the end of each Fiscal
Quarter in accordance with the following schedule, to be calculated for a
fiscal period consisting of each such Fiscal Quarter and the most recently
ended three (3) preceding Fiscal Quarters on a rolling four (4) Fiscal
Quarter Basis:

 

	
  Fiscal Quarter End

  	
   

  	
  Maximum Total

  Leverage Ratio

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on March 31, 2008

  	
   

  	
  6.35 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on June 30, 2008

  	
   

  	
  6.25 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on September 30, 2008

  	
   

  	
  5.75 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on December 31, 2008

  	
   

  	
  5.25 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on March 31, 2009 and as of the
  end of the Fiscal Quarter ending on June 30, 2009

  	
   

  	
  5.00 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on September 30, 2009 and as of the end
  of the Fiscal Quarter ending on December 31, 2009

  	
   

  	
  4.75 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on March 31, 2010 and as of the
  end of each Fiscal Quarter end occurring thereafter until the Bank Facilities
  Termination

  	
   

  	
  4.50 to 1.00”

  

 

(hh)         Adjusted Fixed Charge Coverage Ratio.  Section 6.03 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.03.   Adjusted
Fixed Charge Coverage Ratio.  Commencing as of the Fiscal Quarter ending on June 30,
2008 and continuing as of each Fiscal Quarter end until Bank Facilities
Termination, the Borrower Consolidation shall maintain an Adjusted Fixed Charge
Coverage Ratio no less than the ratios described hereinbelow as of the end of
each Fiscal Quarter in accordance with the following schedule:

 

13

 

	
  Fiscal Quarter End

  	
   

  	
  Minimum Adjusted

  Fixed Charge

  Coverage Ratio

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on June 30, 2008

  	
   

  	
  1.00 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on September 30, 2008

  	
   

  	
  1.10 to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the
  end of the Fiscal Quarter ending on December 31, 2008 and as of
  each Fiscal Quarter end occurring thereafter until Bank Facilities
  Termination

  	
   

  	
  1.25 to 1.00”

  

 

(ii)           Minimum Tangible Net Worth.  Section 6.04 of the Existing
Credit Agreement is hereby amended and restated in its entirety by replacing it
with “[Reserved]”.

 

(jj)           Limitation of Indebtedness.  Section 6.05 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.05.  Limitation
on Indebtedness.  The Borrower
Consolidation shall not owe or incur any Indebtedness, except as specifically
permitted below:

 

a.             Aggregate
Outstandings under the Bank Facilities and all other Obligations under the Loan
Documents;

 

b.             Interest
Rate Hedges up to the aggregate notional amount no greater than the Aggregate
Commitment as of any date of determination ;

 

c.             Indebtedness
owing by the Borrower Consolidation under the Senior Unsecured Notes up to an
aggregate principal amount equal to One Hundred Thirty Million Dollars
($130,000,000) less any repayments of principal or redemptions thereof;  provided, however, that the
Borrower Consolidation may refinance such permitted amount of Indebtedness if
such refinancing is consummated pursuant to an Acceptable Senior Refinancing;

 

d.             Indebtedness
owing by the Borrower Consolidation under the Senior Subordinated Notes up to
an aggregate principal equal to One Hundred Twenty Five Million Dollars
($125,000,000) less any repayments of principal or redemptions thereof;

 

e.             Secured
purchase money Indebtedness and Capital Lease Liabilities relating to FF&E
used and to be used in connection with the Hotel/Casino Facilities
(collectively “FF&E Financing”) that were incurred prior to the Second
Amendment Effective Date up to the maximum aggregate principal not to exceed
$36,000,000 (less the amount of any payments made thereon);

 

f.              Contingent
Liabilities to the extent permitted under Section 6.08;

 

14

 

g.             Unsecured
trade payables incurred in the ordinary course of business less than one
hundred twenty (120) days past due;

 

h.             Indebtedness
evidenced by the National City Loan in the approximate amount of Two Million
Five Hundred Thousand Dollars ($2,500,000) less any repayments of the
principal thereof;

 

i.  Indebtedness incurred prior
to the Second Amendment Effective Date for the purpose of financing premiums on
Directors’ and Officers’ Liability Insurance Coverage up to the aggregate
amount of One Million Dollars ($1,000,000.00) at any time outstanding; and

 

j.              Subordinated
Obligations incurred after the Second Amendment Effective Date; provided
that (i) after giving effect to the incurrence of such Indebtedness (if a
revolver, treated as if fully drawn), the Borrower Consolidation is in pro
forma compliance with Section 6.01 (Total Leverage Ratio) as if
such Indebtedness had been incurred as of the end of the most recently ended
Fiscal Quarter and the Borrower shall have provided the Agent Bank with a
certificate in form and substance acceptable to the Agent Bank demonstrating
such compliance and (ii) such Indebtedness is on terms and conditions and
pursuant to documentation (including rate, tenor, amount, security and
subordination) reasonably satisfactory to the Requisite Lenders in the sole
discretion and the Requisite Lenders consent thereto is evidenced in writing.”

 

(kk)         Restrictions on Distributions.  Section 6.06 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.06.        Restrictions on
Distributions.  Unless approved in
writing by the Requisite Lenders, no member of the Borrower Consolidation shall
make any Distribution other than (a) a Distribution to other members of
the Borrower Consolidation or (b) Distributions made from and after the
Second Amendment Effective Date to MTR Harness or JRI so long as such
Distributions in MTR Harness or JRI (when added to all Investments made from
and after the Second Amendment Effective Date in MTR Harness and JRI) do not
exceed $1,250,000 in the aggregate.”

 

(ll)           Capital Expenditure Requirements.  Section 6.07 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.07.  Capital Expenditure Requirements.  Unless approved in writing by the Requisite
Lenders, no member of the Borrower Consolidation shall make any Capital
Expenditures, except a member of the Borrower Consolidation may make a Capital
Expenditure if the amount of such Capital Expenditures plus the aggregate
amount of any other Capital Expenditures made by any member of the Borrower
Consolidation during the Fiscal Year in which such proposed Capital Expenditure
is to occur does not exceed Sixteen Million Seven Hundred Thousand Dollars
($16,700,000); provided, however, that the Borrower Consolidation
may make Capital Expenditures for any Fiscal Year in excess of the Sixteen
Million Seven Hundred Thousand Dollars ($16,700,000) permitted above so long as
(i) such Capital Expenditures are necessary for

 

15

 

a Borrower to comply with the rules and regulations mandated by
any Gaming Authority and (ii) the total amount of Capital Expenditures
does not exceed (I) for Fiscal Year 2008 and 2009, $33,400,000 and (II) for
the first Fiscal Quarter of 2010, $4,175,000. 
In the event that Borrower Consolidation makes permitted Capital
Expenditures for any Fiscal Year in excess of the Sixteen Million Seven Hundred
Thousand Dollars ($16,700,000) permitted above, then the amount of permitted
Capital Expenditures for the immediately following Fiscal Year shall be reduced
by the amount of such excess.”

 

(mm)       Contingent Liabilities.  The first sentence of Section 6.08
of the Existing Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“Unless approved in writing by the Requisite
Lenders, the Borrower Consolidation shall not directly or indirectly incur any
Contingent Liability(ies) without the prior written consent of the Requisite
Lenders (other than Contingent Liability(ies) as to JRI or MTR Harness so long
as the payment of such Contingent Liability(ies), if necessary, would be
permitted by Section 6.06(b) and Section 6.09(m)).”

 

(nn)         Investments.  Section 6.09 of the Existing
Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 6.09.        Investment Restrictions.  Unless approved in writing by the Requisite
Lenders, the Borrower Consolidation shall not make any Investments (whether by
way of loan, stock purchase, capital contribution, or otherwise), except for
Investments in the following:

 

a. Cash, Cash Equivalents and direct obligations of the United States
Government so long as Agent Bank for the benefit of the Banks has a
fully-perfected, first priority lien on and security interest in any such Cash,
Cash Equivalents or direct obligations (subject to Permitted Encumbrances);

 

b.  Prime commercial paper (AA
rated or better) so long as Agent Bank for the benefit of the Banks has a
fully-perfected, first priority lien on and security interest in any such prime
commercial paper (subject to Permitted Encumbrances);

 

c.  Certificates of Deposit or
Repurchase Agreement issued by a commercial bank having a capital surplus in
excess of One Hundred Million Dollars ($100,000,000.00) so long as Agent Bank
for the benefit of the Banks has a fully-perfected, first priority lien on and
security interest in any such Certificates of Deposit or Repurchase Agreement
(subject to Permitted Encumbrances);

 

d.  Money market or other funds
of nationally recognized institutions investing solely in obligations described
in (a), (b) and (c) above so long as Agent Bank for the benefit of
the Banks has a fully-perfected, first priority lien on and security interest
in any such money market or other funds (subject to Permitted Encumbrances);

 

16

 

e.  Insider Cash Loans originated
prior to the Second Amendment Effective Date in an aggregate principal amount
not to exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) at any
one time less any repayments thereof;

 

f.  Insider Non-Cash Loans
originated prior to the Second Amendment Effective Date to the extent permitted
by Law;

 

g. Capital Expenditures to the extent permitted under Section 6.07;

 

h.  [Reserved];

 

i.  [Reserved];

 

j.  [Reserved];

 

k.  On and after the Original
Closing Date but prior to the Second Amendment Effective Date, Investments made
in MTR Harness in an aggregate amount not to exceed at any one time Twelve
Million Five Hundred Thousand Dollars ($12,500,000.00);

 

l.  On and after the Original
Closing Date but prior to the Second Amendment Effective Date, Investments made
in JRI in an aggregate amount not to exceed Five Million Dollars
($5,000,000.00); provided that if Pine Hollow Golf Course Property was
purchased with the proceeds of Investments made in JRI, the Borrowers shall
have caused such property to be encumbered as additional Collateral hereunder subject
to the New Acquisition Certifications; and

 

m.  Investments made from and
after the Second Amendment Effective Date in MTR Harness or JRI so long as such
Investments (when added to all Distribution made from and after the Second
Amendment Effective Date to MTR Harness and JRI) do not exceed $1,250,000 in
the aggregate.”

 

(oo)         Sale of Assets, Consolidation, Merger, or
Liquidation.  Section 6.12
of the Existing Credit Agreement is hereby amended and restated in its entirety
as follows:

 

“Section 6.12.  Sales of Assets, Consolidation, Merger, or
Liquidation.  Unless approved in
writing by the Requisite Lenders, no member of the Borrower Consolidation shall
wind up, liquidate or dissolve its affairs or enter into any transaction of
merger or consolidation (except a merger or consolidation with another entity
within the Borrower Consolidation), or convey, sell, lease or otherwise dispose
of (or make an agreement to do any of the foregoing at any time prior to Bank
Facilities Termination) all or any material part of its respective property or
assets (except to another entity within the Borrower Consolidation), except
that the following shall be permitted:

 

17

 

a.                                       The
Borrower may make sales of inventory in the ordinary course of business;

 

b.                                      So
long as no Default or Event of Default shall have occurred and remains
continuing and the Borrowers comply with the notice requirements set forth in Section 5.08(i),
the Borrowers may in the ordinary course of business and subject to the
provisions of subsection (c) hereinbelow, sell FF&E and other items of
personal property Collateral that are, in Borrowers’ prudent business judgment,
obsolete or no longer necessary for the Borrower Consolidation’s business
objectives;

 

c.                                       So
long as no Default or Event of Default shall have occurred and remains
continuing, the Borrowers use the Net Proceeds therefrom to prepay or Cash
Collateralize (if applicable) the Obligations or reinvest such Net Proceeds in
accordance with Section 2.15 and the Borrowers comply with the
notice requirements set forth in Section 5.08(i), the Borrowers may
sell or otherwise dispose of any Non-Core Assets; and

 

d.                                      So
long as no Default or Event of Default shall have occurred and remains
continuing and the Borrowers use the Net Proceeds therefrom (other than the
Phase II SGLVI Net Proceeds up to $2,000,000) to prepay or Cash Collateralize
(if applicable) the Obligations or reinvest such Net Proceeds in accordance
with Section 2.15(a) and the Borrowers comply with the notice
requirements set forth in Section 5.08(i), the Borrowers may sell
or otherwise dispose of the SGLVI Collateral.”

 

(pp)                          Events of Default – Section 7.01(b).  Section 7.01(b) of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“b.                                Borrowers shall have
defaulted in the payment of any principal owing in respect of the Obligations,
or Borrowers shall have defaulted in the payment of interest on the Revolving
Credit Note or Swingline Note when due, and such default on interest continues
for a period of more than five (5) days;”

 

(qq)                          Events of Default – Section 7.01(x).  Section 7.01(x) of the
Existing Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“x.                                  The Senior Unsecured
Notes are not fully refinanced pursuant to an Acceptable Senior Refinancing by October 1,
2009; or”

 

(rr)                                Events of Default – Section 7.01(y).  Section 7.01 of the Existing
Credit Agreement is hereby amended by adding a new Section 7.01(y) thereto
as follows:

 

“y.                                Any trustee for, or any
holder of, any Subordinated Obligations asserts in writing that any such
Subordinated Obligations (or any portion thereof) is not subordinated to the
Obligations in accordance with its terms or the applicable subordination
agreement (in the case of such other Subordinated Obligations); or any event
occurs which gives the holder or holders of such Subordinated Obligations (or
an agent or trustee on its or their behalf) the right to declare such
Subordinated Obligations due before the date on which it otherwise would become
due, or the right to require the

 

18

 

issuer thereof, to redeem, purchase or otherwise defease, or offer to
redeem, purchase or otherwise defease, all or any portion of any Subordinated
Obligations, or a final judgment is entered by a court of competent
jurisdiction that any Subordinated Obligations (or any portion thereof) is not
subordinated in accordance with its terms or the applicable subordination
agreement (in the case of such other Subordinated Obligations) to the
Obligations.”

 

(ss)                            Replacement Schedules
and Exhibits.

 

(i)                                     Schedule 2.01(a) of
the Existing Credit Agreement is hereby amended and restated in its entirety
with Schedule 2.01(a) attached hereto.

 

(ii)                                  Schedule 2.01(c) of
the Existing Credit Agreement is hereby amended and restated in its entirety
with Schedule 2.01(c) attached hereto.

 

(iii)                               Schedule 4.24 of
the Existing Credit Agreement is hereby amended and restated in its entirety
with Schedule 4.24 attached hereto.

 

(iv)                              Exhibit A of
the Existing Credit Agreement is hereby amended and restated in its entirety
with Exhibit A attached hereto.

 

(v)                                 Exhibit D
of the Existing Credit Agreement is hereby amended and restated in its entirety
with Exhibit D attached hereto.

 

SECTION 3.                            Amendment
Fee.  In addition to all other
amounts payable by the Borrowers to the Agent Bank and/or the Lenders, on the
Second Amendment Effective Date, Borrowers shall pay to the Agent Bank, for the
account of each Lender that has executed and delivered this Second Amendment on
or prior to the Second Amendment Effective Date, a non-refundable amendment fee
in an amount equal to 1.00% of such Lender’s Syndication Interest of the
Aggregate Commitment as of the Second Amendment Effective Date after giving
effect to this Second Amendment (collectively, the “Amendment Fees”).  The Amendment Fees are fully earned, due and
payable as of the Second Amendment Effective Date.

 

SECTION 4.                            Conditions
Precedent to the Effectiveness of this Second Amendment.  The limited waiver contained in Section 1
above and the amendments contained in Section 2 above are
conditioned upon satisfaction of the following conditions (the first date on which
all of the following conditions have been satisfied being referred to herein as
the “Second Amendment Effective Date”):

 

(a)           Due execution and
delivery by Borrowers and Banks of eight (8) duplicate originals of this
Second Amendment;

 

(b)           Due execution and
delivery by Borrowers of the original Revolving Credit Note (Second Restated);

 

(c)           A certificate, duly
executed and delivered by the Secretary of each Borrower, certifying a true and
correct copy of the resolutions for each of the Borrowers authorizing each
respective Borrowers to enter into all documents and agreements to be executed

 

19

 

by it pursuant
to this Second Amendment and further authorizing and empowering the officer or
officers who will execute such documents and agreements with the authority and
power to execute such documents and agreements on behalf of each respective
corporation;

 

(d)                                 Except
for LIBOR interest payments (which shall be due and payable as set forth in Section 2.05(b) of
the Existing Credit Agreement), Borrowers have paid all accrued but unpaid
interest on the Obligations, Commitment Fees that are due and payable, and
Letter of Credit Fees for each Letter of Credit outstanding under the Existing
Credit Agreement;

 

(e)                                  Borrowers
shall have caused their attorneys to deliver a legal opinion reasonably
satisfactory to Agent Bank;

 

(f)                                    Agent
Bank shall have received, on behalf of the Lenders that have executed and
delivered this Second Amendment as of the Second Amendment Effective Date, the
Amendment Fees;

 

(g)                                 Reimbursement
to Agent Bank by Borrowers for all fees and out-of-pocket expenses incurred by
Agent Bank in connection with the Second Amendment and invoiced as of the
Second Amendment Effective Date, but not limited to, attorneys’ fees of Orrick,
Herrington & Sutcliffe LLP and all other like expenses remaining
unpaid as of the Second Amendment Effective Date; and

 

(h)                                 Such
other documents, instruments or conditions as may be reasonably required by
Agent Bank.

 

SECTION 5.                         Representations
and Warranties.  In order to
induce the Agent Bank and the Requisite Lenders to enter into this Second
Amendment and to amend the Existing Credit Agreement in the manner provided in
this Second Amendment, Borrowers represent and warrant to the Agent Bank and
each Bank as follows:

 

(a)                                  Power
and Authority.  Borrowers have all
requisite corporate power and authority to enter into this Second Amendment and
the Revolving Credit Notes (Second Restated) and to carry out the transactions
contemplated by, and perform their obligations under, the Credit Agreement.

 

(b)                                 Authorization
of Agreements.  The execution and
delivery of this Second Amendment by Borrowers and the performance of the
Credit Agreement by Borrowers has been duly authorized by all necessary action,
and this Second Amendment and the Revolving Credit Notes (Second Restated) have
been duly executed and delivered by Borrowers.

 

(c)                                  Enforceability.  Each of this Second Amendment, the Revolving
Credit Notes (Second Restated) and the Credit Agreement constitutes the legal,
valid and binding obligation of each Borrower enforceable against such Borrower
in accordance with its terms, except as may be limited by bankruptcy,
insolvency, other similar laws affecting the enforcement of creditors’ rights
in general or general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

 

20

 

(d)                                 No
Conflict.  The execution and delivery
by Borrowers of this Second Amendment, the Revolving Credit Notes (Second
Restated) and the performance by Borrowers of each of this Second Amendment,
the Revolving Credit Notes (Second Restated) and the Credit Agreement do not
and will not (i) violate any law, rule, regulation, order, writ,
injunction or decree of any court or Governmental Authority to which Borrowers
are subject, (ii) violate any provision of, or result in the breach or the
acceleration of, or entitle any other Person to accelerate any indenture,
evidence of indebtedness, loan or financing agreement, or other agreement or
instrument to which any Borrower is bound or (iii) result in the creation
or imposition of any lien, charge, or encumbrance of any nature whatsoever upon
any of their respective property or assets.

 

(e)                                  Governmental
Consents.  No authorization or
approval or other action by, and no notice to or filing with, any Governmental
Authority is required for the due execution, delivery and performance by
Borrowers of this Second Amendment and the Revolving Credit Notes (Second
Amendment).

 

(f)                                    Representations
and Warranties in the Credit Agreement. 
Borrowers confirm that, as of the Second Amendment Effective Date, the
representations and warranties contained in the Credit Agreement are (after
giving effect to this Second Amendment) true and correct in all material
respects (except to the extent any such representation and warranty is
expressly stated to have been made as of a specific date, in which case it
shall be true and correct as of such specific date) and that no Default has
occurred and is continuing.

 

SECTION 6.                          Releases.  In further
consideration of this Second Amendment, each Borrower hereby (i) represents
that it has no defenses to or setoffs against any Obligations owing to the
Banks nor claims against the Banks for any matter whatsoever, related to or
unrelated to the Obligations, (ii) waives, releases and forever discharges
each of the Banks and their respective agents, officers and directors, from any
and all known and unknown claims, actions, causes of action, demands, setoffs,
damages, causes, suits, accounts, controversies and reckonings, in law or in
equity, filed or otherwise, which they or any of them have or may have against
the Banks, or any of them, by reason of any matter, facts, cause, act or thing
of any conceivable kind or character, whatsoever, occurring on or prior to the
date of execution hereof, which in any way, directly or indirectly relates to,
concerns, arises out of or is founded upon this Second Amendment and/or the
documentation, obligations and transactions evidenced by the Credit Agreement
or any of the Loan Documents.

 

SECTION 7.                          Miscellaneous.

 

(a)                                  Reference
to and Effect Upon the Existing Credit Agreement and other Loan Documents.

 

(i)                                     Except
as specifically amended by this Second Amendment and the documents executed and
delivered in connection herewith, the Existing Credit Agreement and each other
Loan Document shall remain in full force and effect and each is hereby ratified
and confirmed by the Borrower.  Without
limiting the foregoing, the Liens granted pursuant to the Security Documents
shall continue in full force and effect.

 

21

 

(ii)                                  Each
reference in the Existing Credit Agreement to “this Credit Agreement”,
“hereunder”, “hereof”, “herein” or any other word or words of similar import
shall mean and be a reference to the Credit Agreement as amended hereby, and
each reference in any other Loan Document to the Existing Credit Agreement or
any word or words of similar import shall be and mean a reference to the Credit
Agreement as amended hereby.

 

(iii)                               The
execution and delivery of this Second Amendment and performance of the Credit
Agreement shall not, except as expressly provided herein, constitute a waiver
of any provision of, or operate as a waiver of any right, power or remedy of
the Agent Bank or the Lenders under the Existing Credit Agreement or any of the
other Loan Documents.

 

(iv)                              If
there is any conflict between the terms and provisions of this Second Amendment
and the terms and provisions of the Existing Credit Agreement or any other Loan
Document, the terms and provisions of this Second Amendment shall govern.

 

(b)                                 Additional
Modifications.  Upon
the reasonable request of the Agent Bank, the Borrowers shall deliver and cause
to be delivered such amendments, documents, supplements, modifications
(including amendments to any Security Documentation) in connection with the
Loan Documents and take such steps (including cooperation in obtaining title
endorsements and the like) as reasonably requested by the Agent Bank in
furtherance of the intent of the parties and to further clarify the Loan
Documents if deemed reasonably necessary or advisable by the Agent Bank.

 

(c)                                  Further
Assurances.  Borrowers shall deliver
to Agent Bank such documents requested by the Agent Bank in furtherance of the
transaction contemplated in the Loan Documents, the Credit Agreement and this
Second Amendment as well as second amended and restated mortgages and deeds of
trust, second amendment endorsements to the Title Insurance Policies, security
agreements, pledge agreements, lessor consents and estoppels (containing
appropriate mortgagee and lender protection language), control agreements, and
other instruments, agreements, certificates, opinions and documents (including
Uniform Commercial Code financing statements and fixture filings and landlord
waivers) as Agent Bank may reasonably request to:

 

(i)                                     grant,
perfect, maintain, protect and evidence security interests in favor of the Agent
Bank, for the benefit of the Banks, in any or all present and future property
of Borrowers and Restricted Subsidiaries prior to the Liens or other interests
of any Person, except for Permitted Encumbrances; and

 

(ii)                                  otherwise
establish, maintain, protect and evidence the rights provided to the Agent
Bank, for the benefit of the Banks, pursuant to the Security Documentation.

 

Borrowers
shall fully cooperate with the Agent Bank and the Lenders and perform all
additional acts reasonably requested by the Agent Bank to effect the purposes
of this Section 7(b).

 

(d)                                 Expenses.  Borrowers acknowledges that all costs and
expenses of the Agent Bank incurred in connection with this Second Amendment
and the related Loan Documents will be paid in accordance with Section 10.20
of the Credit Agreement.

 

22

 

(e)                                  Headings.  Section and subsection headings in this
Second Amendment are included for convenience of reference only and shall not
constitute a part of this Second Amendment for any other purpose or be given
any substantive effect.

 

(f)                                    Counterparts.  This Second Amendment may be executed in one
or more counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same instrument.  Transmission by telecopier or electronic mail
of an executed counterpart of this Second Amendment shall be deemed to
constitute due and sufficient delivery of such counterpart.

 

(g)                                 Governing
Law.  This Second Amendment shall be
governed by and construed according to the laws of the State of Nevada without
reference to conflicts of law rules.  The
scope of the foregoing governing law provision is intended to be
all-encompassing of any and all disputes that may be brought in any court or
any mediation or arbitration proceeding and that relate to the subject matter
of this Second Amendment, including contract claims, tort claims, breach of
duty claims and all other common law and statutory claims.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

23

 

IN WITNESS
WHEREOF, the parties hereto have duly executed this Second Amendment as of the
date first above written.

 

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  MTR GAMING
  GROUP, INC.,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  
	
   

  	
   

  	
  Edson R.
  Arneault

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MOUNTAINEER
  PARK, INC.,

  
	
   

  	
  a West
  Virginia corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  
	
   

  	
   

  	
  Edson R.
  Arneault

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SPEAKEASY
  GAMING OF LAS VEGAS, INC.,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  
	
   

  	
   

  	
  Edson R.
  Arneault

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PRESQUE ISLE
  DOWNS, INC.,

  
	
   

  	
  a
  Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  
	
   

  	
   

  	
  Edson R.
  Arneault

  
	
   

  	
   

  	
  President

  

 

 

	
   

  	
  SCIOTO
  DOWNS, INC.,

  
	
   

  	
  an Ohio
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Edson R. Arneault

  
	
   

  	
   

  	
  Edson R.
  Arneault

  
	
   

  	
   

  	
  President

  

 

 

	
   

  	
  BANKS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, NATIONAL 

  
	
   

  	
  ASSOCIATION,
  as Agent Bank, Lender, Swingline 

  
	
   

  	
  Lender and
  L/C Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  James Neil

  
	
   

  	
   

  	
  James Neil

  
	
   

  	
   

  	
  Vice
  President

  

 

 

 

	
   

  	
  NATIONAL
  CITY BANK, successor by merger to  

  
	
   

  	
  NATIONAL
  CITY BANK OF PENNSYLVANIA,

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Emil Kwaczala

  
	
   

  	
   

  	
  Name: Emil Kwaczala

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  CIT LENDING
  SERVICES CORPORATION, 

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Anthony Holland

  
	
   

  	
   

  	
  Name: Anthony Holland

  
	
   

  	
   

  	
  Title:, Vice
  President

  

 

 

	
   

  	
  PNC BANK

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Trey Brown

  
	
   

  	
   

  	
  Name: Trey
  Brown

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  FIFTH THIRD
  BANK,

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Neil Corry - Roberts

  
	
   

  	
   

  	
  Name: Neil
  Corry - Roberts

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  CITIZENS
  BANK OF PENNSYLVANIA,

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Euclid B. Noble

  
	
   

  	
   

  	
  Name: Euclid
  B. Noble

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  COMMERZBANK
  AG,

  
	
   

  	
  NEW YORK AND
  GRAND CAYMAN 

  
	
   

  	
  BRANCHES

  
	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Werner Schmidbauer

  
	
   

  	
   

  	
  Name: Werner
  Schmidbauer

  
	
   

  	
   

  	
  Title: SVP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
    /s/
  Karla Wirth

  
	
   

  	
   

  	
  Name: Karla
  Wirth

  
	
   

  	
   

  	
  Title: AVP

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]