Document:

Exhibit 10.3

SPONSOR
SUPPORT AGREEMENT

This Sponsor Support
Agreement (as amended or otherwise modified from time to time, the “Agreement”) is dated as of April 20,
2007 and is entered into by and among SOUTHWEST CASINO AND HOTEL CORP., a
Minnesota corporation (“SCHC”),
SOUTHWEST CASINO CORPORATION, a Nevada corporation (“SCC”  and together with SCHC, the “Sponsors”),
and BLACK DIAMOND COMMERCIAL FINANCE, L.L.C., as Agent (“Agent”)
for the benefit of itself and the Lenders. 
All capitalized terms used and not otherwise defined herein shall have
the respective meanings set forth in the Credit Agreement referred to below.

RECITALS

WHEREAS, North Metro
Harness Initiative, LLC, a Minnesota limited liability company (“Borrower”), the other Loan Parties,
Agent and the Lenders (as defined therein) have entered into that certain
Credit Agreement dated as of the date hereof (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit
Agreement”);

WHEREAS, as of the date
hereof, Sponsors directly or indirectly own an equity interest in the Borrower,
desire to see the success of Borrower and shall receive benefits from any
Advances made or to be made pursuant to the Credit Agreement; and

WHEREAS, it is a
condition to Agent and Lenders entering into the Credit Agreement that Sponsors
execute and deliver this Agreement.

NOW, THEREFORE, in order
to induce Agent and the Lenders to enter into the Credit Agreement and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

1.             Covenants.  Sponsors
hereby agree that, from and after the date hereof until the Termination Date:

(a)                                  Each Sponsor shall, to the extent
not prohibited by one or more credit agreements or similar documents binding
upon Sponsors, directly or indirectly invest additional equity amounts in the
Borrower to the extent necessary to cause the Project to be completed and the
Project Opening to occur.

(b)                                 No Sponsor shall enter into any
agreement, or otherwise permit to exist, any restriction, contractual or
otherwise, on any Sponsor’s ability to make any investments in or to provide
support to Borrower other than those in existence on the date hereof.  Notwithstanding the foregoing, a Sponsor may
amend one or more existing credit agreements or similar documents, or may
refinance one or more existing credit agreements or similar documents (either
with the same lenders or with new lenders), provided that such amended or new
credit agreements or similar documents do not create any additional
restrictions not in existence on the date hereof.

(c)                                  Sponsors shall pay, or cause their
Affiliates to pay, to Agent, for the benefit of itself and the Lenders, any and
all dividends, distributions or payments of any kind made to any

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Sponsor
or Affiliates of any Sponsor in violation of the provisions of the Credit
Agreement or any other Loan Document.

(d)                                 Each
Sponsor will do or cause to be done all things necessary to preserve, renew,
and keep in full force and effect its legal existence.

(e)                                  Each
Sponsor will do or cause to be done all things necessary to preserve and
maintain all of its rights, licenses, permits, privileges, and franchises
material to the conduct of its business, except where failure to do so could
not reasonably be expected to have a material adverse effect on its ability to
perform its obligations hereunder.

(f)                                    Each
Sponsor will comply in all material respects with the requirements of all
applicable laws, except where the failure to comply could not reasonably be
expected to have a material adverse effect on its ability to perform its
obligations hereunder.

2.             Representations.  Each Sponsor
represents and warrants to Agent and Lenders as of the date of this Agreement:

(a)                                  Each
Sponsor is a company duly organized, validly existing and in good standing
under the laws of the state of its formation.

(b)                                 Each
Sponsor has all necessary corporate, limited liability company, partnership, or
other like power, authority, and legal right to execute, deliver and perform
fully and completely its obligations under this Agreement and to carry on its
business as now conducted; the execution, delivery and performance by it of
this Agreement has been duly authorized by all necessary corporate, partnership
or other like action on its part and this Agreement has been duly and validly
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium or similar laws of general applicability affecting the enforcement
of creditors’ rights and (ii) the application of general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

(c)                                  No
authorizations, approvals, or consents of, and no filings or registrations
with, any Governmental Authority (other than those already obtained), are
necessary or advisable for (i) the execution, delivery or performance by
each Sponsor of this Agreement and (ii) the legality, validity, binding
effect or enforceability hereof or thereof.

(d)                                 Except
as set forth on Schedule 2(d) hereto, neither the execution and delivery
of this Agreement, nor each Sponsor’s compliance with or performance of the
terms and provisions hereof or thereof (i) will require the consent of or
approval of any of Sponsors’ creditors, (ii) will conflict with, violate,
result in a breach of or require any consent under, any contract to which any Sponsor
is a party or bound, (iii) will conflict with or result in a breach of, or
require any consent under, either Sponsor’s charter or by-laws (or other
organizational document or operating agreement) or (iv) will contravene
any applicable law or regulation, or any order, writ, injunction or decree of
any court or

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Governmental Authority or
any contract or agreement to which either Sponsor is a party or to which either
Sponsor’s assets are subject.

(e)                                  As
of the date hereof, SCC owns directly, beneficially, and of record not less
than one-hundred percent (100%) of the issued and outstanding capital stock of
SCHC and such interests are not subject to any Lien.

(f)                                    As
of the date hereof, SCHC owns directly, beneficially, and of record not less
than fifty percent (50%) of the issued and outstanding capital stock of the
Borrower and such interests are not subject to any Lien (other than pursuant to
the Collateral Documents).

3.             Joint and Several Obligation. 
Each obligation of a Sponsor hereunder is a joint and several obligation
of each Sponsor and each Sponsor is fully liable for the payment and
performance of such obligations, regardless of the payment or performance
thereof by any other Sponsor.

4.             No Deemed Waivers; Remedies
Cumulative.  No failure or delay by Agent or Lenders in
exercising any right or power hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude
any other or further exercise thereof or the exercise of any other right or
power.  The rights and remedies of the
Borrower and Agent and Lenders hereunder are cumulative and are not exclusive
of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by Sponsors therefrom shall in any event be
effective unless the same shall be permitted by Section 6, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given.

5.             Notices.  All notices
and other communications provided for herein shall be in writing and shall be
delivered (a) by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

(i)                                     if
to Sponsors, to:

Southwest Casino and
Hotel Corp.

2001 Killebrew Drive

Bloomington, MN  55425

Attn:  Thomas E. Fox

Fax:  (952) 853-9991

With a copy to:           MTR Gaming Group, Inc.

Route 2 South

P.O. Box 356

Chester, WV  26034

Attn:  Patrick J. Arneault

Fax:  (304) 387-8367

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And a copy to:            Ruben & Aronson, LLP

4800 Montgomery Lane,
Suite 150

Bethesda, MD  20814

Attention:  Lawrence A. London, Esq.

Fax: (301)
951-9636

 (ii)                               if
to Agent, to:

Black Diamond Commercial
Finance, L.L.C.

One Sound Shore Drive

Greenwich, CT  06830

ATTN: North Metro Harness
Initiative, Account Officer

Fax:  (203) 674-7808

With a copy to:           Latham & Watkins LLP

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago, Illinois  60606

Attention: Jeffrey G.
Moran

Fax: (312)
993-9767

Any party hereto may
change its address, telecopy number or electronic mail address for notices and
other communications hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given when transmitted by confirmed telecopier or
electronic mail or personally delivered or, in the case of a mailed notice,
upon receipt, in each case given or addressed as aforesaid.

6.             Amendments.  Neither this
Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the parties
hereto.

7.             Successors and Assigns. 
The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns,
except that Sponsors may not assign or otherwise transfer any of their rights
or obligations hereunder without the prior written consent of Agent.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, the Lenders and their respective successors and assigns permitted
hereby) any legal or equitable right, remedy or claim under or by reason of
this Agreement.

8.             Survival.  Except to the
extent expressly provided by this Agreement, all covenants, agreements,
representations and warranties made by Sponsors herein and in the certificates
or other instruments delivered in connection with or pursuant to this Agreement
and the Loan Documents shall be considered to have been relied upon by the
other parties hereto and shall survive the execution and delivery of this
Agreement.

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9.             Severability.  Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

10.           Governing Law; Submission to Jurisdiction; Etc. 
EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT:

(a)                                  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

(b)                                 THE STATE OR FEDERAL COURTS LOCATED
IN NEW YORK COUNTY, STATE OF NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN SPONSORS, AGENT AND LENDERS
PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATING TO
THIS AGREEMENT, PROVIDED, THAT AGENT, LENDERS AND SPONSORS ACKNOWLEDGE
THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE NEW YORK COUNTY.  SPONSORS
EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR
SUIT COMMENCED IN ANY SUCH COURT, AND EACH SPONSOR HEREBY WAIVES ANY OBJECTION
WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM
NON  CONVENIENS.  EACH
SPONSOR HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER
PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL ADDRESSED TO SUCH SPONSOR AT THE ADDRESS SET FORTH IN SECTION 5
HEREOF AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF
ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER
POSTAGE PREPAID.  NOTWITHSTANDING
THE FOREGOING, EACH SPONSOR HEREBY APPOINTS CT CORPORATION SYSTEM, LOCATED 111
EIGHTH AVENUE, 13TH FLOOR, NEW YORK, NY 10011, U.S.A. AS ITS AGENT FOR SERVICE
OF PROCESS IN ANY PROCEEDING IN ANY COURTS LOCATED IN THE CITY OF NEW YORK IN
CONNECTION WITH THIS AGREEMENT.

(c)                                  BECAUSE DISPUTES ARISING IN
CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND
ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT DISPUTES ARISING HEREUNDER OR RELATING HERETO BE RESOLVED
BY A JUDGE APPLYING SUCH APPLICABLE LAWS. 
THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL
SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY

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IN
ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING
IN CONTRACT, TORT, OR OTHERWISE, AMONG AGENT AND/OR LENDERS AND SPONSORS
ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP
ESTABLISHED IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS RELATED
HERETO.

11.           Counterparts.  This Agreement may be executed in two
or more counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement constitutes the entire
contract between and among the parties relating to the subject matter hereof
and supersedes any and all previous agreements and understandings, oral or
written, relating to the subject matter hereof. 
This Agreement shall become effective when it shall have been executed
by each of the parties that appear in the preamble hereto and when Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto, Lenders and their
respective successors and assigns. 
Delivery of an executed counterpart of a signature page to this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

12.           Headings.  Section
headings used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

13.           Expenses.  Sponsors
will, upon demand, pay to Agent and Lenders all reasonable fees and expenses,
including attorney’s fees and expenses, incurred by Agent and/or Lenders in
connection with the exercise or enforcement of any of their rights, remedies or
interests under or related to this Agreement.

[remainder
of page intentionally left blank]

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IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed by
their respective officers thereunto duly authorized, as of the date first above
written.

	
  

  	
   

  	
  SPONSORS

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  SOUTHWEST CASINO CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  SOUTHWEST CASINO AND HOTEL
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  BLACK
  DIAMOND COMMERCIAL

  
	
   

  	
   

  	
  FINANCE,
  L.L.C., as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

[Signature
Page to SCC Sponsor Support Agreement]Exhibit 10.4

SUBORDINATION AGREEMENT

THIS SUBORDINATION AGREEMENT
(this “Agreement”) is entered into as of April 20, 2007, by and among SOUTHWEST CASINO AND HOTEL CORP., a Minnesota corporation (“Subordinated
Creditor”), NORTH METRO HARNESS INITIATIVE, LLC,
a Minnesota limited liability company (the “Company”), and BLACK
DIAMOND COMMERCIAL FINANCE, L.L.C., a Delaware limited liability
company, as Agent for all Senior Lenders party to the Senior Credit Agreement
described below. 

R E C I T A L S

A.            The Company, Agent and Senior Lenders (as
hereinafter defined) have entered into a Credit Agreement of even date herewith
(as the same may be amended, supplemented or otherwise modified from time to
time, the “Senior Credit Agreement”) pursuant to which, among other things,
Senior Lenders have agreed, subject to the terms and conditions set forth in
the Senior Credit Agreement, to make certain loans and financial accommodations
to the Company. All of the Company’s obligations to Agent and Senior Lenders
under the Senior Credit Agreement and the other Senior Debt Documents (as
hereinafter defined) are secured by liens on and security interests in
substantially all of the now existing and hereafter acquired real and personal
property of the Company (the “Collateral”). 

B.            Subordinated Creditor is a party to that
certain Member Control Agreement of the Company, dated as of June 8, 2004 (the “LLC
Agreement”) pursuant to which, among other things, the Subordinated Creditor is
entitled to the payment of Unmatched Pre-Licensing Costs (as defined below).

C.            As an inducement to and as one of the
conditions precedent to the agreement of Agent and Senior Lenders to consummate
the transactions contemplated by the Senior Credit Agreement, Agent and Senior
Lenders have required the execution and delivery of this Agreement by
Subordinated Creditor and the Company in order to set forth the relative rights
and priorities of Agent, Senior Lenders and Subordinated Creditor under the
Senior Debt Documents and the Subordinated Debt Documents (as hereinafter
defined).

NOW, THEREFORE, in order to
induce Agent and Senior Lenders to consummate the transactions contemplated by
the Senior Credit Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the parties hereto
hereby agree as follows:

1.             Definitions.
The following terms shall have the following meanings in this Agreement:

“Agent”
shall mean Black Diamond Commercial Finance, L.L.C., as Agent for the
Senior Lenders, or any other Person appointed by the holders of the Senior Debt
as administrative agent for purposes of the Senior Debt Documents and this
Agreement.

“Bankruptcy
Code” shall mean Title 11 of the United States Code, as amended
from time to time and any successor statute and all rules and regulations
promulgated thereunder.

“Distribution”
means, with respect to any indebtedness, obligation or security, (a) any
payment or distribution by any Person of cash, securities or other property, by
set-off or otherwise, on account of such indebtedness, obligation or security,
(b) any redemption, purchase or other acquisition of such indebtedness,
obligation or security by any Person or (c) the granting of any lien or
security interest to or for the benefit of the holders of such indebtedness,
obligation or security in or upon any property of any Person.  

“Enforcement
Action” shall mean (a) to take from or for the account of
the Company or any guarantor of the Subordinated Debt, by set-off or in any
other manner, the whole or any part of any moneys which may now or hereafter be
owing by the Company or any such guarantor with respect to the Subordinated
Debt, (b) to sue for payment of, or to initiate or participate with others in
any suit, action or proceeding against the Company or any such guarantor to (i)
enforce payment of or to collect the whole or any part of the Subordinated Debt
or (ii) commence judicial enforcement of any of the rights and remedies under
the Subordinated Debt Documents or applicable law with respect to the Subordinated
Debt, (c) to accelerate the Subordinated Debt, (d) to exercise any put option
or to cause the Company or any such guarantor to honor any redemption or
mandatory prepayment obligation under any Subordinated Debt Document or (e) to
take any action under the provisions of any state or federal law, including,
without limitation, the Uniform Commercial Code, or under any contract or
agreement, to enforce, foreclose upon, take possession of or sell any property
or assets of the Company or any such guarantor. 

“Loan
Documents” shall mean the Senior Credit Agreement and all
other agreements, documents and instruments executed from time to time in
connection therewith, as the same may be amended, supplemented or otherwise
modified from time to time.

“Person”
means any natural person, corporation, general or limited
partnership, limited liability company, firm, trust, association, government,
governmental agency or other entity, whether acting in an individual, fiduciary
or other capacity.

“Preferred
Return” shall have the meaning ascribed thereto in the
LLC Agreement.

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“Proceeding”
shall mean any voluntary or involuntary insolvency, bankruptcy, receivership,
custodianship, liquidation, dissolution, reorganization, assignment for the
benefit of creditors, appointment of a custodian, receiver, trustee or other
officer with similar powers or any other proceeding for the liquidation,
dissolution or other winding up of a Person.

“Refinancing
Senior Debt Documents” shall mean any financing
documentation which replaces the Loan Documents and pursuant to which the
Senior Debt under the Loan Documents are refinanced, as such financing
documentation may be amended, supplemented or otherwise modified from time to
time in compliance with this Agreement.

“Senior
Debt” shall mean all obligations, liabilities and
indebtedness of every nature of the Company from time to time owed to Agent or
any Senior Lender under the Senior Debt Documents, including, without
limitation, the principal amount of all debts, claims and indebtedness, accrued
and unpaid interest and all fees, costs and expenses, whether primary,
secondary, direct, contingent, fixed or otherwise, heretofore, now and from
time to time hereafter owing, due or payable, whether before or after the
filing of a Proceeding under the Bankruptcy Code together with (a) any
amendments, modifications, renewals or extensions thereof to the extent not
prohibited by the terms of this Agreement and (b) any interest accruing thereon
after the commencement of a Proceeding, without regard to whether or not such
interest is an allowed claim. Senior Debt shall be considered to be outstanding
whenever any loan commitment under the Senior Debt Document is outstanding. 

“Senior
Debt Documents” shall mean the Loan Documents and, after
any refinancing of the Senior Debt under the Loan Documents, the Refinancing
Senior Debt Documents.

“Senior
Default” shall mean any “Event of Default” under the
Senior Debt Documents, or any condition or event that, after notice or lapse of
time or both, would constitute such an Event of Default if that condition or
event were not cured or removed  within any
applicable grace or cure period set forth therein.

“Senior
Default Notice” shall mean a written notice from Agent to
Subordinated Creditor pursuant to which Subordinated Creditor is notified of
the occurrence of a Senior Default, which notice incorporates a reasonably
detailed description of such Senior Default and which notice expressly states
that it is a “Senior Default” hereunder.

“Senior
Lenders” shall mean the holders of the Senior Debt.

“Subordinated
Debt” shall mean all of the obligations of the Company to
pay to the Subordinated Creditor the Unmatched Pre-Licensing Costs and
Preferred Return in accordance with the Subordinated Debt Documents.

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“Subordinated
Debt Documents” shall mean the LLC Agreement  and all other documents, agreements and instruments now
existing or hereinafter entered into evidencing or pertaining to all or any
portion of the Subordinated Debt.

“Subordinated
Debt Default” shall mean a default in the payment of the
Subordinated Debt or in the performance of any term, covenant or condition
contained in the Subordinated Debt Documents or any other occurrence permitting
Subordinated Creditor to accelerate the payment of all or any portion of the
Subordinated Debt.

“Subordinated
Debt Default Notice” shall mean a written notice from
Subordinated Creditor or the Company to Agent pursuant to which Agent is
notified of the occurrence of a Subordinated Debt Default, which notice
incorporates a reasonably detailed description of such Subordinated Debt
Default and which notice expressly states that it is a “Subordinated Debt
Default Notice” hereunder.

“Unmatched
Pre-Licensing Costs” shall have the meaning ascribed
thereto in the LLC Agreement.

2.             Subordination.

2.1          Subordination
of Subordinated Debt to Senior Debt. The Company covenants and agrees,
and Subordinated Creditor by its acceptance of the Subordinated Debt Documents
(whether upon original issue or upon transfer or assignment) likewise covenants
and agrees, notwithstanding anything to the contrary contained in any of the
Subordinated Debt Documents, that the payment of any and all of the
Subordinated Debt shall be subordinate and subject in right and time of
payment, to the extent and in the manner hereinafter set forth, to the prior
indefeasible payment in full in cash of all Senior Debt. Each holder of Senior
Debt, whether such Senior Debt is now outstanding or hereafter created,
incurred, assumed or guaranteed, shall be deemed to have acquired Senior Debt
in reliance upon the provisions contained in this Agreement.

2.2          Liquidation,
Dissolution, Bankruptcy. In the event of any Proceeding involving the
Company:

(a)           All Senior Debt shall
first be indefeasibly paid in full in cash and all commitments to lend under
the Senior Debt Documents shall be terminated before any Distribution, whether
in cash, securities or other property, shall be made to Subordinated Creditor
on account of any Subordinated Debt. 

(b)           Any Distribution,
whether in cash, securities or other property which would otherwise, but for
the terms hereof, be payable or deliverable in respect of the Subordinated Debt
shall be paid or delivered directly to Agent (to be held and/or applied by
Agent in accordance with the terms of the Senior Debt Documents) until all
Senior

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Debt is indefeasibly paid in full in cash and all
commitments to lend under the Senior Debt Documents shall have been terminated.
Subordinated Creditor irrevocably authorizes, empowers and directs any debtor,
debtor in possession, receiver, trustee, liquidator, custodian, conservator or
other Person having authority, to pay or otherwise deliver all such
Distributions to Agent. Subordinated Creditor also irrevocably authorizes and
empowers Agent, in the name of Subordinated Creditor, to demand, sue for,
collect and receive any and all such Distributions. 

(c)           Subordinated Creditor
agrees not to initiate, prosecute or participate in any claim, action or other
proceeding challenging the enforceability, validity, perfection or priority of
the Senior Debt or any liens and security interests securing the Senior Debt. 

(d)           Subordinated Creditor
agrees to execute, verify, deliver and file any proofs of claim in respect of
the Subordinated Debt requested by Agent in connection with any such Proceeding
and hereby irrevocably authorizes, empowers and appoints Agent its agent and
attorney-in-fact to (i) execute, verify, deliver and file such proofs of claim
upon the failure of Subordinated Creditor promptly to do so prior to 30 days
before the expiration of the time to file any such proof of claim and (ii) vote
such claim in any such Proceeding upon the failure of Subordinated Creditor to
do so prior to 15 days before the expiration of the time to vote any such
claim; provided Agent shall have no obligation to execute, verify, deliver,
file and/or vote any such proof of claim. In the event that Agent votes any
claim in accordance with the authority granted hereby, Subordinated Creditor
shall not be entitled to change or withdraw such vote.  

(e)           The Senior Debt shall
continue to be treated as Senior Debt and the provisions of this Agreement
shall continue to govern the relative rights and priorities of Senior Lenders
and Subordinated Creditor even if all or part of the Senior Debt or the
security interests securing the Senior Debt are subordinated, set aside,
avoided, invalidated or disallowed in connection with any such Proceeding, and
this Agreement shall be reinstated if at any time any payment of any of the
Senior Debt is rescinded or must otherwise be returned by any holder of Senior
Debt or any representative of such holder.

2.3          Subordinated
Debt Payment Restrictions. 
Notwithstanding the terms of the Subordinated Debt Documents, the
Company hereby agrees that it may not make, and Subordinated Creditor hereby
agrees that it will not accept (or cause the Company to make) any Distribution
with respect to the Subordinated Debt unless either (a) the making of any such
Distribution is expressly permitted by the terms of the Senior Debt Documents
or (b) the Senior Debt has been indefeasibly paid in full in cash and all
commitments to lend under the Senior Debt Documents have been terminated.

2.4          Subordinated
Debt Standstill Provisions. 
Until the Senior Debt is indefeasibly paid in full in cash and all
commitments to lend under the Senior Debt Documents shall be terminated,
Subordinated Creditor shall not, without the prior written consent of Agent,
take any

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Enforcement Action with
respect to the Subordinated Debt. Notwithstanding the foregoing, Subordinated
Creditor may file proofs of claim against the Company in any Proceeding
involving the Company.  Any Distributions
or other proceeds of any Enforcement Action obtained by Subordinated Creditor
in violation of the foregoing prohibition shall in any event be held in trust
by it for the benefit of Agent and Senior Lenders and promptly paid or
delivered to Agent for the benefit of Senior Lenders in the form received until
all Senior Debt is indefeasibly paid in full in cash and all commitments to
lend under the Senior Debt Documents shall have been terminated.  

2.5          Incorrect Payments.
If any Distribution on account of the Subordinated Debt not permitted to be
made by the Company or accepted by Subordinated Creditor under this Agreement
is made and received by Subordinated Creditor, such Distribution shall not be
commingled with any of the assets of Subordinated Creditor, shall be held in
trust by Subordinated Creditor for the benefit of Agent and Senior Lenders and
shall be promptly paid over to Agent for application (in accordance with the
Senior Debt Documents ) to the payment of the Senior Debt then remaining
unpaid, until all of the Senior Debt is paid in full.

2.6          Sale,
Transfer or other Disposition of Subordinated Debt.  

(a)           Subordinated Creditor
shall not sell, assign, pledge, dispose of or otherwise transfer all or any
portion of the Subordinated Debt or any Subordinated Debt Document. 

(b)           Notwithstanding the
foregoing, the subordination effected hereby shall survive any sale, assignment,
pledge, disposition or other transfer of all or any portion of the Subordinated
Debt in violation of the foregoing prohibition, and the terms of this Agreement
shall be binding upon the successors and assigns of Subordinated Creditor, as
provided in Section 9 hereof.

3.             Modifications.

3.1          Modifications
to Senior Debt Documents. Senior Lenders may at any time and from time
to time without the consent of or notice to Subordinated Creditor, without
incurring liability to Subordinated Creditor and without impairing or releasing
the obligations of Subordinated Creditor under this Agreement, change the
manner or place of payment or extend the time of payment of or renew or alter
any of the terms of the Senior Debt, or amend in any manner any agreement,
note, guaranty or other instrument evidencing or securing or otherwise relating
to the Senior Debt. 

3.2          Modifications
to Subordinated Debt Documents. Until the Senior Debt has been
indefeasibly paid in full in cash and all lending commitments under the Senior
Debt Documents have terminated, and notwithstanding anything to the contrary
contained in the Subordinated Debt Documents, Subordinated Creditor shall not,
without the prior written

 6
 

consent of Agent, agree
to any amendment, modification or supplement to the Subordinated Debt Documents
other than in accordance with the Senior Credit Agreement.

4.             Representations
and Warranties. 

4.1          Representations
and Warranties of Subordinated Creditor.  Subordinated Creditor hereby represents and
warrants to Agent and Senior Lenders that as of the date hereof: (a)
Subordinated Creditor is a corporation duly formed and validly existing under
the laws of the State of Minnesota; (b) Subordinated Creditor has the power and
authority to enter into, execute, deliver and carry out the terms of this
Agreement, all of which have been duly authorized by all proper and necessary
action; (c) the execution of this Agreement by Subordinated Creditor will not
violate or conflict with the organizational documents of Subordinated Creditor,
any material agreement binding upon Subordinated Creditor or any law,
regulation or order or require any consent or approval which has not been
obtained; (d) this Agreement is the legal, valid and binding obligation of
Subordinated Creditor, enforceable against Subordinated Creditor in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by equitable principles; (e)
Subordinated Creditor is the sole owner, beneficially and of record, of the
Subordinated Debt Documents and the Subordinated Debt; and (f) the Subordinated
Debt is, and at all times prior to the termination of this Agreement shall
remain, an unsecured obligation of the Company.

4.2          Representations
and Warranties of Agent.  Agent
hereby represents and warrants to Subordinated Creditor that as of the date
hereof: (a) Agent is a corporation duly formed and validly existing under the
laws of the State of Delaware; (b) Agent has the power and authority to enter
into, execute, deliver and carry out the terms of this Agreement, all of which
have been duly authorized by all proper and necessary action; (c) the execution
of this Agreement by Agent will not violate or conflict with the organizational
documents of Agent, any material agreement binding upon Agent or any law,
regulation or order or require any consent or approval which has not been
obtained; and (d) this Agreement is the legal, valid and binding obligation of
Agent, enforceable against Agent in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’
rights generally or by equitable principles.

5.             Subrogation.  Subject to the indefeasible payment in
full in cash of all Senior Debt and the termination of all lending commitments
under the Senior Debt Documents, Subordinated Creditor shall be subrogated to
the rights of Agent and Senior Lenders to receive Distributions with respect to
the Senior Debt until the Subordinated Debt is paid in full. Subordinated
Creditor agrees that in the event that all or any part of a payment made with
respect to the Senior Debt is recovered from the holders of the Senior Debt in
a Proceeding or otherwise, any Distribution received by Subordinated Creditor
with respect to the Subordinated Debt at any time after the date of the payment
that is so recovered, whether pursuant to the right of subrogation provided for
in this Agreement or otherwise, shall be deemed to have been received by
Subordinated Creditor in trust as property of the holders of the Senior Debt
and Subordinated Creditor shall

 7
 

forthwith deliver the
same to the Agent for the benefit of the Senior Lenders for application to the
Senior Debt until the Senior Debt is paid in full. A Distribution made pursuant
to this Agreement to Agent or Senior Lenders which otherwise would have been
made to Subordinated Creditor is not, as between the Company and Subordinated
Creditor, a payment by the Company to or on account of the Senior Debt. 

6.             Modification.
Any modification or waiver of any provision of this Agreement, or any consent
to any departure by any party from the terms hereof, shall not be effective in
any event unless the same is in writing and signed by Agent and Subordinated
Creditor, and then such modification, waiver or consent shall be effective only
in the specific instance and for the specific purpose given. Any notice to or
demand on any party hereto in any event not specifically required hereunder
shall not entitle the party receiving such notice or demand to any other or
further notice or demand in the same, similar or other circumstances unless specifically
required hereunder.

7.             Further Assurances.
Each party to this Agreement promptly will execute and deliver such further
instruments and agreements and do such further acts and things as may be
reasonably requested in writing by any other party hereto that may be necessary
or desirable in order to effect fully the purposes of this Agreement.

8.             Notices.  All notices and other communications provided
for herein shall be in writing and shall be delivered (a) by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopy, as
follows:

(i)            if to Subordinated
Creditor, to:

	
  

  	
   

  	
  Southwest Casino and Hotel
  Corp.

  
	
   

  	
   

  	
  2001 Killebrew
  Drive

  
	
   

  	
   

  	
  Bloomington, MN
  55425

  
	
   

  	
   

  	
  Attn: Thomas E.
  Fox

  
	
   

  	
   

  	
  Fax: (952)
  853-9991

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  MTR Gaming Group, Inc.

  
	
   

  	
   

  	
  Route 2 South

  
	
   

  	
   

  	
  P.O. Box 356

  
	
   

  	
   

  	
  Chester, WV
  26034

  
	
   

  	
   

  	
  Attn: Patrick J.
  Arneault

  
	
   

  	
   

  	
  Fax: (304)
  387-8367

  
	
   

  	
   

  	
   

  
	
  And a copy to:

  	
   

  	
  Ruben & Aronson, LLP

  
	
   

  	
   

  	
  4800 Montgomery
  Lane, Suite 150

  
	
   

  	
   

  	
  Bethesda, MD
  20814

  
	
   

  	
   

  	
  Attention:
  Lawrence A. London, Esq.

  
	
   

  	
   

  	
  Fax: (301)
  951-9636

  

 

 8
 

(ii)           if to Agent, to: 

Black Diamond Commercial Finance, L.L.C.

One Sound Shore Drive

Greenwich, CT 06830

ATTN: North Metro Harness Initiative, Account
Officer

Fax:  (203) 674-7808

With a copy
to:           Latham
& Watkins LLP

Sears Tower, Suite 5800

233 South Wacker Drive

Chicago, Illinois 60606

Attention: Jeffrey G. Moran

Fax: (312) 993-9767

9.             Successors and
Assigns.  This Agreement shall
inure to the benefit of, and shall be binding upon, the respective successors
and assigns of Agent, Senior Lenders, Subordinated Creditor and the Company. To
the extent permitted under the Senior Debt Documents, Senior Lenders may, from
time to time, without notice to Subordinated Creditor, assign or transfer any
or all of the Senior Debt or any interest therein to any Person and,
notwithstanding any such assignment or transfer, or any subsequent assignment
or transfer, the Senior Debt shall, subject to the terms hereof, be and remain
Senior Debt for purposes of this Agreement, and every permitted assignee or
transferee of any of the Senior Debt or of any interest therein shall, to the
extent of the interest of such permitted assignee or transferee in the Senior
Debt, be entitled to rely upon and be the third party beneficiary of the
subordination provided under this Agreement and shall be entitled to enforce
the terms and provisions hereof to the same extent as if such assignee or
transferee were initially a party hereto. 

10.          Relative Rights.  This Agreement shall define the relative
rights of Agent, Senior Lenders and Subordinated Creditor. Nothing in this
Agreement shall (a) impair, as among the Company, Agent and Senior Lenders and
as between the Company and Subordinated Creditor, the obligation of the Company
with respect to the payment of the Senior Debt and the Subordinated Debt in
accordance with their respective terms or (b) affect the relative rights of
Agent, Senior Lenders or Subordinated Creditor with respect to any other
creditors of the Company.

11.          Conflict. In
the event of any conflict between any term, covenant or condition of this
Agreement and any term, covenant or condition of any of the Subordinated Debt
Documents, the provisions of this Agreement shall control and govern. 

12.          Headings. The
paragraph headings used in this Agreement are for convenience only and shall
not affect the interpretation of any of the provisions hereof.

 9
 

13.          Counterparts. This
Agreement 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.

14.          Severability. In
the event that any provision of this Agreement is deemed to be invalid, illegal
or unenforceable by reason of the operation of any law or by reason of the
interpretation placed thereon by any court or governmental authority, the
validity, legality and enforceability of the remaining provisions of this
Agreement shall not in any way be affected or impaired thereby, and the
affected provision shall be modified to the minimum extent permitted by law so
as most fully to achieve the intention of this Agreement.

15.          Continuation of
Subordination; Termination of Agreement. This Agreement shall remain in
full force and effect until the indefeasible payment in full in cash of the
Senior Debt and the termination of all lending commitments under the Senior
Debt Documents after which this Agreement shall terminate without further
action on the part of the parties hereto.

16.          Governing Law;
Submission to Jurisdiction, Etc. 
EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT:

(a)           THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

(b)           THE STATE OR FEDERAL COURTS LOCATED IN NEW YORK
COUNTY, STATE OF NEW YORK, SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND
DETERMINE ANY CLAIMS OR DISPUTES BETWEEN SUBORDINATED CREDITOR, THE COMPANY,
AGENT AND LENDERS PERTAINING TO THIS AGREEMENT OR TO ANY MATTER ARISING OUT OF
OR RELATING TO THIS AGREEMENT, PROVIDED, THAT AGENT, LENDERS,
SUBORDINATED CREDITOR AND THE COMPANY ACKNOWLEDGE THAT ANY APPEALS FROM THOSE
COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE NEW YORK COUNTY.
SUBORDINATED CREDITOR AND THE COMPANY EXPRESSLY SUBMIT AND CONSENT IN ADVANCE
TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND
SUBORDINATED CREDITOR AND THE COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY
HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM  NON
CONVENIENS.  SUBORDINATED CREDITOR
AND THE COMPANY HEREBY WAIVE PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND
OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINTS AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL ADDRESSED TO SUCH PARTY AT THE APPLICABLE ADDRESS SET FORTH IN SECTION
5 HEREOF AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE
EARLIER OF

 10
 

ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER
DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID.  NOTWITHSTANDING THE
FOREGOING, SUBORDINATED CREDITOR AND THE COMPANY HEREBY APPOINT CT CORPORATION
SYSTEM, LOCATED 111 EIGHTH AVENUE, 13TH FLOOR, NEW YORK, NY 10011, U.S.A. AS
ITS AGENT FOR SERVICE OF PROCESS IN ANY PROCEEDING IN ANY COURTS LOCATED IN THE
CITY OF NEW YORK IN CONNECTION WITH THIS AGREEMENT.

(c)           BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX
FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT DISPUTES
ARISING HEREUNDER OR RELATING HERETO BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS.  THEREFORE, TO ACHIEVE
THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION,
THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT,
OR OTHERWISE, AMONG AGENT AND/OR LENDERS, SUBORDINATED CREDITOR AND/OR THE
COMPANY ARISING OUT OF, CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE
RELATIONSHIP ESTABLISHED IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
RELATED HERETO.

(Signature page follows)

 11

IN WITNESS WHEREOF, Subordinated
Creditor, the Company and Agent have caused this Agreement to be executed as of
the date first above written.

	
  

  	
  SUBORDINATED CREDITOR:

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST CASINO AND HOTEL CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  NORTH METRO HARNESS INITIATIVE, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT:

  
	
   

  	
   

  
	
   

  	
  BLACK DIAMOND COMMERCIAL FINANCE,

  L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

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