Document:

FINANCING
        AGREEMENT

       

      Dated
        as of March 28, 2007

       

      by
        and among

       

      GAMETECH
        INTERNATIONAL, INC.

      THE
        GUARANTORS IDENTIFIED HEREIN

       

      ______________________________________

       

      THE
        LENDERS FROM TIME TO TIME PARTY HERETO,

       

      ___________________

       

      ABLECO
        FINANCE LLC,

       

      as
        Collateral Agent,

       

      and

       

      ABLECO
        FINANCE LLC,

       

      as
        Administrative Agent

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        TABLE
          OF CONTENTS

         

      

      
        	 	 	Page
	 	 	 
	
                ARTICLE
                  I

              	
                DEFINITIONS;
                  CERTAIN TERMS

              	
                1

              
	 	 	 
	
                Section
                  1.01

              	
                Definitions

              	
                1

              
	 	 	 
	
                Section
                  1.02

              	
                Terms
                  Generally

              	
                26

              
	 	 	 
	
                Section
                  1.03

              	
                Accounting
                  and Other Terms

              	
                27

              
	 	 	 
	
                Section
                  1.04

              	
                Time
                  References

              	
                27

              
	 	 	 
	
                ARTICLE
                  II

              	
                THE
                  LOANS

              	
                27

              
	 	 	 
	
                Section
                  2.01

              	
                Commitments

              	
                27

              
	 	 	 
	
                Section
                  2.02

              	
                Making
                  the Loans

              	
                28

              
	 	 	 
	
                Section
                  2.03

              	
                Repayment
                  of Loans; Evidence of Debt

              	
                31

              
	 	 	 
	
                Section
                  2.04

              	
                Interest

              	
                33

              
	 	 	 
	
                Section
                  2.05

              	
                Reduction
                  of Commitments; Prepayment of Loans

              	
                36

              
	 	 	 
	
                Section
                  2.06

              	
                Fees

              	
                40

              
	 	 	 
	
                Section
                  2.07

              	
                Securitization

              	
                40

              
	 	 	 
	
                Section
                  2.08

              	
                Taxes

              	
                41

              
	 	 	 
	
                ARTICLE
                  III

              	
                [INTENTIONALLY
                  OMITTED]

              	
                42

              
	 	 	 
	
                ARTICLE
                  IV

              	
                FEES,
                  PAYMENTS AND OTHER COMPENSATION

              	
                42

              
	 	 	 
	
                Section
                  4.01

              	
                Audit
                  and Collateral Monitoring Fees

              	
                42

              
	 	 	 
	
                Section
                  4.02

              	
                Payments;
                  Computations and Statements

              	
                43

              
	 	 	 
	
                Section
                  4.03

              	
                Sharing
                  of Payments, Etc

              	
                44

              
	 	 	 
	
                Section
                  4.04

              	
                Apportionment
                  of Payments

              	
                44

              
	 	 	 
	
                Section
                  4.05

              	
                Increased
                  Costs and Reduced Return.

              	
                45

              
	 	 	 
	
                Section
                  4.06

              	
                Joint
                  and Several Liability of the Borrower.

              	
                46

              
	 	 	 
	
                ARTICLE
                  V

              	
                CONDITIONS
                  TO LOANS

              	
                47

              
	 	 	 
	
                Section
                  5.01

              	
                Conditions
                  Precedent

              	
                47

              
	 	 	 
	
                Section
                  5.02

              	
                Conditions
                  Precedent to All Loans

              	
                52

              
	 	 	 
	
                ARTICLE
                  VI

              	
                REPRESENTATIONS
                  AND WARRANTIES

              	
                53

              
	 	 	 
	
                Section
                  6.01

              	
                Representations
                  and Warranties

              	
                53

              
	 	 	 
	
                ARTICLE
                  VII

              	
                COVENANTS
                  OF THE LOAN PARTIES

              	
                62

              
	 	 	 
	
                Section
                  7.01

              	
                Affirmative
                  Covenants

              	
                62

              
	 	 	 
	
                Section
                  7.02

              	
                Negative
                  Covenants

              	
                71

              
	 	 	 

      

       

      -i-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        TABLE
          OF CONTENTS

        (continued)

         

      

      
        	 	 	
                Page

              
	 	 	 
	
                Section
                  7.03

              	
                Financial
                  Covenants

              	
                76

              
	 	 	 
	
                ARTICLE
                  VIII

              	
                MANAGEMENT,
                  COLLECTION AND STATUS OF ACCOUNTS RECEIVABLE AND OTHER
                  COLLATERAL

              	
                77

              
	 	 	 
	
                Section
                  8.01

              	
                Collection
                  of Accounts Receivable; Management of Collateral.

              	
                77

              
	 	 	 
	
                Section
                  8.02

              	
                Accounts
                  Receivable Documentation

              	
                79

              
	 	 	 
	
                Section
                  8.03

              	
                Status
                  of Accounts Receivable and Other Collateral

              	
                80

              
	 	 	 
	
                Section
                  8.04

              	
                Collateral
                  Custodian

              	
                81

              
	 	 	 
	
                ARTICLE
                  IX

              	
                EVENTS
                  OF DEFAULT

              	
                81

              
	 	 	 
	
                Section
                  9.01

              	
                Events
                  of Default

              	
                81

              
	 	 	 
	
                Section
                  9.02

              	
                Gaming
                  Laws

              	
                85

              
	 	 	 
	
                ARTICLE
                  X

              	
                AGENTS

              	
                86

              
	 	 	 
	
                Section
                  10.01

              	
                Appointment

              	
                86

              
	 	 	 
	
                Section
                  10.02

              	
                Nature
                  of Duties

              	
                87

              
	 	 	 
	
                Section
                  10.03

              	
                Rights,
                  Exculpation, Etc

              	
                87

              
	 	 	 
	
                Section
                  10.04

              	
                Reliance

              	
                88

              
	 	 	 
	
                Section
                  10.05

              	
                Indemnification

              	
                88

              
	 	 	 
	
                Section
                  10.06

              	
                Agents
                  Individually

              	
                89

              
	 	 	 
	
                Section
                  10.07

              	
                Successor
                  Agent

              	
                89

              
	 	 	 
	
                Section
                  10.08

              	
                Collateral
                  Matters

              	
                89

              
	 	 	 
	
                Section
                  10.09

              	
                Agency
                  for Perfection

              	
                91

              
	 	 	 
	
                ARTICLE
                  XI

              	
                GUARANTY

              	
                91

              
	 	 	 
	
                Section
                  11.01

              	
                Guaranty

              	
                91

              
	 	 	 
	
                Section
                  11.02

              	
                Guaranty
                  Absolute

              	
                91

              
	 	 	 
	
                Section
                  11.03

              	
                Waiver

              	
                92

              
	 	 	 
	
                Section
                  11.04

              	
                Continuing
                  Guaranty; Assignments

              	
                93

              
	 	 	 
	
                Section
                  11.05

              	
                Subrogation

              	
                93

              
	 	 	 
	
                ARTICLE
                  XII

              	
                MISCELLANEOUS

              	
                94

              
	 	 	 
	
                Section
                  12.01

              	
                Notices,
                  Etc

              	
                94

              
	 	 	 
	
                Section
                  12.02

              	
                Amendments,
                  Etc

              	
                95

              
	 	 	 
	
                Section
                  12.03

              	
                No
                  Waiver; Remedies, Etc

              	
                95

              
	 	 	 

      

       

      -ii-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        TABLE
          OF CONTENTS

        (continued)

         

      

      
        	 	 	
                Page

              
	 	 	 
	
                Section
                  12.04

              	
                Expenses;
                  Taxes; Attorneys Fees

              	
                96

              
	 	 	 
	
                Section
                  12.05

              	
                Right
                  of Set-off

              	
                97

              
	 	 	 
	
                Section
                  12.06

              	
                Severability

              	
                97

              
	 	 	 
	
                Section
                  12.07

              	
                Assignments
                  and Participations. 

              	
                97

              
	 	 	 
	
                Section
                  12.08

              	
                Counterparts

              	
                100

              
	 	 	 
	
                Section
                  12.09

              	
                GOVERNING
                  LAW

              	
                100

              
	 	 	 
	
                Section
                  12.10

              	
                CONSENT
                  TO JURISDICTION; SERVICE OF PROCESS AND VENUE

              	
                100

              
	 	 	 
	
                Section
                  12.11

              	
                WAIVER
                  OF JURY TRIAL, ETC

              	
                101

              
	 	 	 
	
                Section
                  12.12

              	
                Consent
                  by the Agents and Lenders

              	
                102

              
	 	 	 
	
                Section
                  12.13

              	
                No
                  Party Deemed Drafter

              	
                102

              
	 	 	 
	
                Section
                  12.14

              	
                Reinstatement;
                  Certain Payments

              	
                102

              
	 	 	 
	
                Section
                  12.15

              	
                Indemnification

              	
                102

              
	 	 	 
	
                Section
                  12.16

              	
                Records

              	
                103

              
	 	 	 
	
                Section
                  12.17

              	
                Binding
                  Effect

              	
                103

              
	 	 	 
	
                Section
                  12.18

              	
                Interest

              	
                103

              
	 	 	 
	
                Section
                  12.19

              	
                Confidentiality

              	
                104

              
	 	 	 
	
                Section
                  12.20

              	
                Borrower
                  as Gent for Borrower

              	
                105

              
	 	 	 
	
                Section
                  12.21

              	
                Section
                  Headings

              	
                105

              
	 	 	 
	
                Section
                  12.22

              	
                Integration

              	
                105

              

      

       

      -iii-

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      SCHEDULE
        AND EXHIBITS

       

      
        	
                Schedule
                  B-1

              	
                Appeal
                  Bond

              
	
                Schedule
                  C-1

              	
                Lenders
                  and Lenders’ Commitments

              
	
                Schedule
                  6.01(e)

              	
                Subsidiaries

              
	
                Schedule
                  6.01(f)

              	
                Litigation;
                  Commercial Tort Claims

              
	
                Schedule
                  6.01(i)

              	
                ERISA

              
	
                Schedule
                  6.01(l)

              	
                Nature
                  of Business

              
	
                Schedule
                  6.01(o)

              	
                Real
                  Property

              
	
                Schedule
                  6.01(q)

              	
                Operating
                  Leases

              
	
                Schedule
                  6.01(r)

              	
                Environmental
                  Matters

              
	
                Schedule
                  6.01(s)

              	
                Insurance

              
	
                Schedule
                  6.01(v)

              	
                Bank
                  Accounts

              
	
                Schedule
                  6.01(w)

              	
                Intellectual
                  Property

              
	
                Schedule
                  6.01(x)

              	
                Material
                  Contracts

              
	
                Schedule
                  6.01(dd)

              	
                Name;
                  Jurisdiction of Organization; Organizational ID Number; Chief Place
                  of
                  

                Business;
                  Chief Executive Office; FEIN

              
	
                Schedule
                  6.01(ee)

              	
                Tradenames

              
	
                Schedule
                  6.01(ff)

              	
                Collateral
                  Locations

              
	
                Schedule
                  6.01(kk)

              	
                Licenses
                  and Permits

              
	
                Schedule
                  7.02(a)

              	
                Existing
                  Liens

              
	
                Schedule
                  7.02(b)

              	
                Existing
                  Indebtedness

              
	
                Schedule
                  7.02(e)

              	
                Existing
                  Investments

              
	
                Schedule
                  7.02(h)

              	
                Chairman’s
                  Compensation

              
	
                Schedule
                  7.02(k)

              	
                Limitations
                  on Dividends and Other Payment Restrictions

              
	
                Schedule
                  8.01

              	
                Lockbox
                  Banks and Lockbox Accounts

              
	 	 
	
                Exhibit
                  A-1

              	
                Form
                  of Assignment and Acceptance

              
	
                Exhibit
                  B-1

              	
                Form
                  of Borrowing Base Certificate

              
	
                Exhibit
                  I-1

              	
                Form
                  of Intercompany Subordination Agreement

              
	
                Exhibit
                  L-1

              	
                Form
                  of LIBOR Notice

              
	
                Exhibit
                  2.01(b)(ii)

              	
                Form
                  of Notice of Borrowing

              
	
                Exhibit
                  5.01(d)

              	
                Form
                  of Opinion of Counsel

              

      

    

     

    -iv-

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      10.1

     

    

     

    FINANCING
      AGREEMENT

     

    Financing
      Agreement, dated as of March 28, 2007, by and among GAMETECH
      INTERNATIONAL, INC.,
      a
      Delaware corporation (the “Borrower”),
      each
      subsidiary of the Borrower listed as a “Guarantor” on the signature pages hereto
      (each a “Guarantor”
and
      collectively, jointly and severally, the “Guarantors”),
      the
      lenders from time to time party hereto (each a “Lender”
and
      collectively, the “Lenders”),
      ABLECO
      FINANCE LLC,
      a
      Delaware limited liability company (“Ableco”),
      as
      collateral agent for the Lenders (in such capacity, together with any successor
      collateral agent, the “Collateral
      Agent”),
      and
      Ableco as administrative agent for the Lenders (in such capacity, together
      with
      any successor administrative agent, the “Administrative
      Agent”
and
      together with the Collateral Agent, each an “Agent”
and
      collectively, the “Agents”).

     

    RECITALS

     

    The
      Borrower has asked the Lenders to extend a credit facility of $40,000,000 (the
      “Maximum
      Credit Facility Amount”)
      to the
      Borrower consisting of (a) a term loan in the aggregate principal amount of
      $30,000,000 and (b) a revolving credit facility in an aggregate principal
      amount not to exceed $10,000,000 at any time outstanding. The proceeds of the
      term loan and the loans made under the revolving credit facility shall be used
      to partially finance the Acquisition, to refinance existing indebtedness of
      the
      Borrower and its Subsidiaries, for general working capital and general corporate
      purposes of the Borrower and its Subsidiaries, and to pay fees and expenses
      related to the Acquisition and this Agreement. The Lenders are severally, and
      not jointly, willing to extend such credit to the Borrower subject to the terms
      and conditions hereinafter set forth.

     

    In
      consideration of the premises and the covenants and agreements contained herein,
      the parties hereto agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS;
      CERTAIN TERMS

     

    Section
      1.01 Definitions.
      As used
      in this Agreement, the following terms shall have the respective meanings
      indicated below, such meanings to be applicable equally to both the singular
      and
      plural forms of such terms:

     

    “Ableco”
has
      the
      meaning specified therefor in the preamble hereto.

     

    “Account
      Debtor”
means
      any Person who is or who may become obligated under, with respect to, or on
      account of, an Account Receivable, chattel paper, or a general
      intangible.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Account
      Receivable”
means,
      with respect to any Person, all of such Person’s now owned or hereafter acquired
      right, title, and interest with respect to “accounts” (as that term is defined
      in Article 9 of the Code), and any and all “supporting obligations” (as that
      term is defined in the Code) in respect thereof.

     

    “Acquisition”
means
      the acquisition by the Borrower of substantially all of the assets of the Seller
      in accordance with the terms of the Acquisition Agreement.

     

    “Acquisition
      Agreement”
means
      that certain Asset Purchase Agreement, dated as of August 30, 2006 by and
      between the Borrower and Seller.

     

    “Acquisition
      Documents”
      means the Acquisition Agreement and all other documents and agreements executed
      and delivered in connection therewith.

     

    “Action”
has
      the
      meaning specified therefor in Section
      12.12.

     

    “Additional
      amount”
has
      the
meaning
      specified therefor in Section
      2.08(a)

     

    “Administrative
      Agent”
has
      the
      meaning specified therefor in the preamble hereto.

     

    “Administrative
      Agent’s Account”
means
      an account at a bank designated by the Administrative Agent from time to time
      as
      the account into which the Borrower shall make all payments to the
      Administrative Agent for the benefit of the Agents and the Lenders under this
      Agreement and the other Loan Documents.

     

    “Affiliate”
means,
      with respect to any Person, any other Person that directly or indirectly through
      one or more intermediaries, controls, is controlled by, or is under common
      control with, such Person. For purposes of this definition, “control” of a
      Person means the power, directly or indirectly, either to (i) vote 10% or more
      of the Capital Stock having ordinary voting power for the election of directors
      of such Person or (ii) direct or cause the direction of the management and
      policies of such Person whether by contract or otherwise. Notwithstanding
      anything herein to the contrary, in no event shall any Agent or any Lender
      be
      considered an “Affiliate” of any Loan Party.

     

    “After
      Acquired Property”
      means
      any fee
      interest in real property acquired by the Borrower or any of its Subsidiaries
      after the date hereof with a Current Value in excess of $250,000.

     

    “Agent”
and
      “Agents”
have
      the respective meanings specified therefor in the preamble hereto.

     

    “Agreement”
means
      this Financing Agreement, including all amendments, modifications and
      supplements and any exhibits or schedules to any of the foregoing, and shall
      refer to the Agreement as the same may be in effect at the time such reference
      becomes operative.

     

    “Assignment
      and Acceptance”
means
      an assignment and acceptance entered into by an assigning Lender and an
      assignee, and accepted by the Collateral Agent, in accordance with Section 12.07
      and
      substantially in the form of Exhibit A-1
      hereto
      or such other form acceptable to the Collateral Agent.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    “Authorized
      Officer”
means,
      with respect to any Person, the chief executive officer, chief financial
      officer, president, any vice president or the treasurer of such
      Person.

     

    “Availability”
means,
      at any time, the difference between (i) the lesser of (A) the Borrowing Base,
      and (B) the Total Revolving Credit Commitment, and (ii) the sum of (A) the
      aggregate outstanding principal amount of all Revolving Loans, and (B), the
      aggregate amount, if any, of all trade payables of the Borrower and its
      Subsidiaries aged in excess of historical levels.

     

    “Bankruptcy
      Code”
means
      the
      United States Bankruptcy Code (11 U.S.C. § 101, et seq.),
      as
      amended, and any successor statute.

     

    “Base
      LIBOR Rate”
means
      the greater of (a) 5.00 percent per annum, and (b) the rate per annum,
      determined by Administrative Agent in accordance with its customary procedures,
      and utilizing such electronic or other quotation sources as it considers
      appropriate, on the basis of the rates at which Dollar deposits are offered
      to
      major commercial banks in the London interbank market on or about 11:00 a.m.
      (New York time) 2 Business Days prior to the commencement of the applicable
      Interest Period, for a term and in amounts comparable to the Interest Period
      and
      amount of the LIBOR Rate Loan requested by the Borrower in accordance with
      this
      Agreement, which determination shall be conclusive in the absence of manifest
      error.

     

    “Blocked
      Account”
has
      the
      meaning specified therefore in Section
      8.01(a).

     

    “Blocked
      Account Bank”
has
      the
      meaning specified therefore in Section
      8.01(a).

     

    “Board”
means
      the Board of Governors of the Federal Reserve System of the United
      States.

     

    “Borrower”
has
      the
      meaning specified therefor in the preamble hereto.

     

    “Borrowing
      Base”
means,
      as of any date of determination, the result of the (a)
      the
      lesser of (i) the then-applicable Leverage Ratio times TTM EBITDA as
      reflected in the most recent financial statements delivered by the Borrower
      to
      the Agents pursuant hereto, and (ii) the Collections Multiple times the amount
      of Collections received by the Borrower during the immediately preceding 90
      day
      period, minus (b) such
      reserves as the Administrative Agent may deem appropriate in the exercise of
      its
      business judgment based upon the lending practices of the Administrative
      Agent.

     

    “Borrowing
      Base Certificate”
means
      a
      certificate signed by an Authorized Officer of the Borrower and setting forth
      the calculation of the Borrowing Base in compliance with Section 7.01(a)(vi),
      substantially in the form of Exhibit B-1.

     

    “Business
      Day”
means
      any day that is not a Saturday, Sunday, or other day on which banks are
      authorized or required to close in the State of New York, except that, if a
      determination of a Business Day shall relate to a LIBOR Rate Loan, the term
      “Business Day” also shall exclude any day on which banks are closed for dealings
      in U.S. Dollar deposits in the London interbank market.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    “Capital
      Expenditures”
means,
      with respect to any Person for any period, the sum of (i) the aggregate of
      all expenditures by such Person and its Subsidiaries during such period that
      in
      accordance with GAAP are or should be included in “property, plant and
      equipment” or in a similar fixed asset account on its balance sheet, whether
      such expenditures are paid in cash or financed and including all Capitalized
      Lease Obligations paid or payable during such period, excluding, however, the
      amount of any Capital Expenditures paid for with proceeds of casualty insurance,
      and (ii) to the extent not covered by clause (i) above, (A) the aggregate
      of all expenditures by such Person and its Subsidiaries during such period
      to
      acquire by purchase or otherwise the business or fixed assets of, or the Capital
      Stock of, any other Person other than in connection with a Permitted
      Acquisition, and (B) the aggregate of all capitalized software
      costs.

     

    “Capital
      Guideline”
means
      any law, rule, regulation, policy, guideline or directive (whether or not having
      the force of law and whether or not the failure to comply therewith would be
      unlawful) (i) regarding capital adequacy, capital ratios, capital requirements,
      the calculation of a bank’s capital or similar matters, or (ii) affecting the
      amount of capital required to be obtained or maintained by any Lender or any
      Person controlling any Lender or the manner in which any Lender or any Person
      controlling any Lender, allocates capital to any of its contingent liabilities,
      advances, acceptances, commitments, assets or liabilities.

     

    “Capitalized
      Lease”
means,
      with respect to any Person, any lease of real or personal property by such
      Person as lessee which is (i) required under GAAP to be capitalized on the
      balance sheet of such Person or (ii) a transaction of a type commonly known
      as a “synthetic lease” (i.e. a lease transaction that is treated as an
      operating lease for accounting purposes but with respect to which payments
      of
      rent are intended to be treated as payments of principal and interest on a
      loan
      for Federal income tax purposes).

     

    “Capitalized
      Lease Obligations”
means,
      with respect to any Person, obligations of such Person and its Subsidiaries
      under Capitalized Leases, and, for purposes hereof, the amount of any such
      obligation shall be the capitalized amount thereof determined in accordance
      with
      GAAP.

     

    “Capital
      Stock”
means
      (i) with respect to any Person that is a corporation, any and all shares,
      interests, participations or other equivalents (however designated and whether
      or not voting) of corporate stock, and (ii) with respect to any Person that
      is
      not a corporation, any and all partnership, membership or other equity interests
      of such Person.

     

    “Carry-Over
      Amount”
has
      the
      meaning specified therefor in Section
      7.03(d).

     

    “Cash
      and Cash Equivalents”
means
      all cash deposit or securities account balances, certificates of deposit or
      other financial instruments properly classified as cash or cash equivalents
      under GAAP.

     

    “CFC”
means
      a
      controlled foreign corporation (as that term is defined in the
      IRC).

     

    “Change
      in Law”
has
      the
      meaning specified therefor in Section
      4.05(a).

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    “Change
      of Control”
means
      each occurrence of any of the following:

     

    (a) the
      acquisition, directly or indirectly, by any person or group (within the meaning
      of Section 13(d)(3) of the Exchange Act), of beneficial ownership of more
      than 50% of the aggregate outstanding voting power of the Capital Stock of
      the
      Borrower;

     

    (b) the
      Borrower ceases to own and control, directly or indirectly, 100% of the shares
      of the Capital Stock of its Subsidiaries, unless otherwise permitted
      hereunder;

     

    (c) at
      any
      time the majority of the members of the board of directors of Borrower do not
      constitute Continuing Directors, or

     

    (d) (i)
      the
      Borrower consolidates with or merges into another entity or conveys, transfers
      or leases all or substantially all of its property and assets to any Person,
      or
      (ii) any entity consolidates with or merges into the Borrower, which in either
      event (i) or (ii) is pursuant to a transaction in which the outstanding voting
      Capital Stock of the Borrower is reclassified or changed into or exchanged
      for
      cash, securities or other property.

     

    “Closing
      Fee”
has
      the
      meaning specified therefor in Section 2.06(a).

     

    “Code”
means
      the New York Uniform Commercial Code, as in effect from time to time;
provided,
      however,
      that in
      the event that, by reason of mandatory provisions of law, any or all of the
      attachment, perfection, priority, or remedies with respect to Collateral Agent’s
      Liens on any Collateral is governed by the Uniform Commercial Code as enacted
      and in effect in a jurisdiction other than the State of New York, the term
      “Code” shall mean the Uniform Commercial Code as enacted and in effect in such
      other jurisdiction solely for purposes of the provisions thereof relating to
      such attachment, perfection, priority, or remedies.

     

    “Collateral”
means
      all of the property and assets and all interests therein and proceeds thereof
      now owned or hereafter acquired by any Person upon which a Lien is granted
      or
      purported to be granted by such Person as security for all or any part of the
      Obligations.

     

    “Collateral
      Agent”
has
      the
      meaning specified therefor in the preamble hereto.

     

    “Collateral
      Agent Advances”
has
      the
      meaning specified therefor in Section
      10.08(a).

     

    “Collection
      Account”
and
      “Collection
      Accounts”
have
      the meanings specified therefor in Section 8.01(a).

     

    “Collections
      Multiple”:
      means
      2.25.

     

    “Commitments”
means,
      with respect to each Lender, such Lender’s Revolving
      Credit Commitment
      and Term
      Loan Commitment.

     

    “Consolidated
      EBITDA”
means,
      with respect to any Person for any period, the Consolidated Net Income of such
      Person and its Subsidiaries for such period, plus,
      without
      duplication, the sum of the following amounts of such Person and its
      Subsidiaries for such period and to the extent deducted in determining
      Consolidated Net Income of such Person and its Subsidiaries for such period:
      (A)
      Consolidated Net Interest Expense, (B) net income tax expense (including
      reserves for deferred taxes not payable currently), (C) depreciation expense,
      (D) amortization expense, (E) to the extent actually paid during such
      period, fees and expenses related to the consummation of the transactions
      contemplated to be closed on the Effective Date under this Agreement and the
      transactions contemplated by the Acquisition Agreement, (F) the non-cash
      component of any impairment or unusual item of loss or expense, (G) non-cash
      charges for the early extinguishment of debt, and (H) non-cash compensations
      charges related to or arising from the vesting of any employee, officer or
      director of Borrower or its Subsidiaries in Capital Stock issued by the
      Borrower.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    “Consolidated
      Funded Indebtedness”
means,
      with respect to any Person at any date, all Indebtedness for borrowed money
      or
      letters of credit (including Capitalized Lease Obligations) of such Person,
      determined on a consolidated basis in accordance with GAAP, which by its terms
      matures more than one year after the date of calculation, and any such
      Indebtedness maturing within one year from such date which is renewable or
      extendable at the option of such Person to a date more than one year from such
      date.

     

    “Consolidated
      Net Income”
means,
      with respect to any Person for any period, the net income (loss) of such Person
      and its Subsidiaries for such period, determined on a consolidated basis and
      in
      accordance with GAAP, but excluding from the determination of Consolidated
      Net
      Income (without duplication) (a) any non-cash extraordinary or
      non-recurring gains or losses or non-cash gains or losses from Dispositions,
      (b)
      restructuring charges, (c) effects of discontinued operations, (d) interest
      that is paid-in-kind, and (e) any tax refunds, net operating losses or other
      net
      tax benefits received during such period on account of any prior
      period.

     

    “Consolidated
      Net Interest Expense”
means,
      with respect to any Person for any period, gross cash interest expense of such
      Person and its Subsidiaries for such period determined on a consolidated basis
      and in accordance with GAAP (including interest expense paid to Affiliates
      of
      such Person), less
      (i) the sum of (A) interest income for such period and (B) gains
      for such period on Hedging Agreements (to the extent not included in interest
      income above and to the extent not deducted in the calculation of gross interest
      expense), plus
      (ii) the sum of (A) losses for such period on Hedging Agreements (to
      the extent not included in such gross interest expense) and (B) the upfront
      costs or fees for such period associated with Hedging Agreements (to the extent
      not included in such gross interest expense), in each case, determined on a
      consolidated basis and in accordance with GAAP.

     

    “Contingent
      Obligation”
means,
      with respect to any Person, any obligation of such Person guaranteeing or
      intended to guarantee any Indebtedness, leases, dividends or other obligations
      (“primary obligations”) of any other Person (the “primary obligor”) in any
      manner, whether directly or indirectly, including (i) the direct or indirect
      guaranty, endorsement (other than for collection or deposit in the ordinary
      course of business), co-making, discounting with recourse or sale with recourse
      by such Person of the obligation of a primary obligor, (ii) the obligation
      to make take-or-pay or similar payments, if required, regardless of
      nonperformance by any other party or parties to an agreement, (iii) any
      obligation of such Person, whether or not contingent, (A) to purchase any such
      primary obligation or any property constituting direct or indirect security
      therefor, (B) to advance or supply funds (1) for the purchase or payment of
      any such primary obligation or (2) to maintain working capital or equity
      capital of the primary obligor or otherwise to maintain the net worth or
      solvency of the primary obligor, (C) to purchase property, assets,
      securities or services primarily for the purpose of assuring the owner of any
      such primary obligation of the ability of the primary obligor to make payment
      of
      such primary obligation or (D) otherwise to assure or hold harmless the
      holder of such primary obligation against loss in respect thereof; provided,
      however,
      that
      the term “Contingent Obligation” shall not include any product warranties
      extended in the ordinary course of business. The amount of any Contingent
      Obligation shall be deemed to be an amount equal to the stated or determinable
      amount of the primary obligation with respect to which such Contingent
      Obligation is made (or, if less, the maximum amount of such primary obligation
      for which such Person may be liable pursuant to the terms of the instrument
      evidencing such Contingent Obligation) or, if not stated or determinable, the
      maximum reasonably anticipated liability with respect thereto (assuming such
      Person is required to perform thereunder), as determined by such Person in
      good
      faith.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    “Continuing
      Director”
means
      (a) any member of the board of directors of the Borrower who was a director
      (or
      comparable manager) of the Borrower on the Effective Date, and (b) any
      individual who becomes a member of the board of the directors of the Borrower
      after the Effective Date if such individual was appointed or nominated for
      election to the board of the directors of Borrower by a majority of the
      Continuing Directors then in office, but excluding any such individual
      originally proposed for election in opposition to the board of directors in
      office at the Effective Date in an actual or threatened election contest
      relating to the election of the directors (or comparable managers) of the
      Borrower and whose initial assumption of office resulted from such contest
      or
      the settlement thereof.

     

    “Control
      Agreement”
means
      a
      control agreement, in form and substance satisfactory to the Collateral Agent,
      executed and delivered by a Loan Party, the Collateral Agent and the applicable
      securities intermediary with respect to a securities account or a bank with
      respect to a deposit account.

     

    “Current
      Value”
has
      the
      meaning specified therefor in Section
      7.01(o).

     

    “Default”
means
      an event which, with the giving of notice or the lapse of time or both, would
      constitute an Event of Default.

     

    “Disposition”
means
      any transaction, or series of related transactions, pursuant to which any Person
      or any of its Subsidiaries sells, assigns, transfers or otherwise disposes
      of
      any property or assets (whether now owned or hereafter acquired) to any other
      Person, in each case, whether or not the consideration therefor consists of
      cash, securities or other assets owned by the acquiring Person.

     

    “Dollar,”
      “Dollars”
and
      the
      symbol “$”
each
      means lawful money of the United States of America.

     

    “Domestic
      Subsidiary”
means
      any Subsidiary of any Person that is not a CFC.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    “Earn
      Out Payment”
means
      that certain payment, if any, specified in Section 4.2(a) of the Acquisition
      Agreement.

     

    “Effective
      Date”
means
      the date, on or before March 31, 2007, on which all of the conditions precedent
      set forth in Section
      5.01
      are
      first satisfied or waived.

     

    “Employee
      Plan”
means
      an employee benefit plan (other than a Multiemployer Plan) covered by Title
      IV
      of ERISA and maintained (or that was maintained at any time during the six
      (6)
      calendar years preceding the date of any borrowing hereunder) for employees
      of
      any Loan Party or any of its ERISA Affiliates.

     

    “Environmental
      Actions”
means
      any complaint, summons, citation, notice, directive, order, claim, litigation,
      investigation, judicial or administrative proceeding, judgment, letter or other
      communication from any Governmental Authority involving violations of
      Environmental Laws or Releases of Hazardous Materials (i) from any assets,
      properties or businesses of any Loan Party or any of its Subsidiaries or any
      predecessor in interest; or (ii) onto any facilities which received Hazardous
      Materials generated by any Loan Party or any of its Subsidiaries or any
      predecessor in interest. 

     

    “Environmental
      Laws”
means
      the Comprehensive Environmental Response, Compensation and Liability Act (42
      U.S.C. § 9601, et seq.),
      the
      Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.),
      the
      Resource Conservation and Recovery Act (42 U.S.C. § 6901, et seq.),
      the
      Federal Clean Water Act (33 U.S.C. § 1251 et seq.),
      the
      Clean Air Act (42 U.S.C. § 7401 et seq.),
      the
      Toxic Substances Control Act (15 U.S.C. § 2601 et seq.)
      and
      the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.),
      as
      such laws may be amended or otherwise modified from time to time, and any other
      present or future federal, state, local or foreign statute, ordinance, rule,
      regulation, order, judgment, decree, permit, license or other binding
      determination of any Governmental Authority imposing liability or establishing
      standards of conduct for protection of the environment or other government
      restrictions relating to the protection of the environment or the release,
      emission, deposit, discharge, leaching, migration or spill of any Hazardous
      Materials into the environment.

     

    “Environmental
      Liabilities and Costs”
means
      all liabilities, monetary obligations, Remedial Actions, losses, damages,
      punitive damages, consequential damages, treble damages, costs and expenses
      (including all reasonable fees, disbursements and expenses of counsel, experts
      and consultants and costs of investigations and feasibility studies), fines,
      penalties, sanctions and interest incurred as a result of any claim or demand
      by
      any Governmental Authority or any third party, and which relate to the liability
      or potential liability of any Loan Party with respect to any environmental
      condition or a Release of Hazardous Materials from or onto (i) any property
      currently or formerly owned by any Loan Party or any of its Subsidiaries or
      (ii) any Real Property which received Hazardous Materials generated by any
      Loan Party or any of its Subsidiaries.

     

    “Environmental
      Lien”
means
      any Lien in favor of any Governmental Authority for Environmental Liabilities
      and Costs.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, and any
      successor statute of similar import, and regulations thereunder, in each case,
      as in effect from time to time. References to sections of ERISA shall be
      construed also to refer to any successor sections.

     

    “ERISA
      Affiliate”
means,
      with respect to any Person, any trade or business (whether or not incorporated)
      which is a member of a group of which such Person is a member and which would
      be
      deemed to be a “controlled group” within the meaning of Sections 414(b), (c),
      (m) and (o) of the IRC.

     

    “Event
      of Default”
means
      any of the events set forth in Section
      9.01.

     

    “Excess
      Cash Flow”
means,
      with respect to any Person for any period, (i) Consolidated Net Income of
      such Person and its Subsidiaries for such period, plus
      (ii) all non-cash items of such Person and its Subsidiaries deducted in
      determining Consolidated Net Income for such period, less
      (iii) the sum of (A) all non-cash items of such Person and its
      Subsidiaries included in determining Consolidated Net Income for such period,
      (B) all scheduled and mandatory cash principal payments on the Loans made
      during such period (but, in the case of the Revolving Loans, only to the extent
      that the Total Revolving
      Credit Commitment
      is
      permanently reduced by the amount of such payments), and all scheduled cash
      principal payments on other Indebtedness of such Person or any of its
      Subsidiaries during such period to the extent such other Indebtedness is
      permitted to be incurred, and such payments are permitted to be made, under
      this
      Agreement, (C) the cash portion of Capital Expenditures (net of (y) any
      proceeds reinvested in accordance with Section
      2.05(d)(ii)),
      and
      (z) any proceeds of related financings with respect to such expenditures) made
      by such Person and its Subsidiaries during such period to the extent permitted
      to be made under this Agreement, and (D) the excess, if any, of Working
      Investment at the end of such period over Working Investment at the beginning
      of
      such period (or, if the difference results in an amount less than zero, minus
      the excess, if any, of Working Investment at the beginning of such period over
      Working Investment at the end of such period).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Existing
      Credit Facility”
means
      the Credit Agreement dated as of April 2, 2005, between the Borrower and Wells
      Fargo Bank, National Association, as amended from time to time.

     

    “Existing
      Lenders”
means
      the lenders party to the Existing Credit Facility.

     

    “Extraordinary
      Receipts”
means
      any cash received by the Borrower or any of its Subsidiaries not in the ordinary
      course of business (and not consisting of proceeds of Dispositions or
      Indebtedness), including (i) 50% of foreign, United States, state or local
      tax refunds if the audited financial statements delivered pursuant to
Section
      7.01(a)(ii)
      demonstrate that, for the applicable period, the ratio of Consolidated Funded
      Indebtedness of the Borrower and Guarantors to Consolidated EBITDA less Capital
      Expenditures is greater than or equal to 2.0 to 1.0, (ii) pension plan
      reversions, (iii) proceeds of insurance, (iv) judgments, proceeds of
      settlements or other consideration of any kind in connection with any cause
      of
      action (other than actual legal costs and attorneys’ fees for which Borrower is
      being reimbursed), (v) condemnation awards (and payments in lieu thereof),
      (vi) indemnity payments and (vii) any purchase price adjustment
      received in connection with any purchase agreement and any amounts received
      from
      escrow arrangements in connection with any purchase agreement. 

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    “Federal
      Funds Rate”
means,
      for any period, a fluctuating interest rate per annum equal to, for each day
      during such period, the weighted average of the rates on overnight Federal
      funds
      transactions with members of the Federal Reserve System arranged by Federal
      funds brokers, as published on the next succeeding Business Day by the Federal
      Reserve Bank of New York, or, if such rate is not so published for any day
      which
      is a Business Day, the average of the quotations for such day on such
      transactions received by the Administrative Agent from three Federal funds
      brokers of recognized standing selected by it.

     

    “Field
      Survey and Audit”
means
      a
      field survey and audit of the Loan Parties and an appraisal of the Collateral
      performed by auditors, examiners or appraisers selected by the Collateral Agent,
      at the sole cost and expense of the Borrower; provided,
      however,
      that
      the preceding shall be limited to the sites of the Borrower’s owned and leased
      real property.

     

    “Filing
      Authorization Letter”
means
      a
      letter duly executed by each Loan Party authorizing the Collateral Agent to
      file
      financing statements in such office or offices as may be necessary or, in the
      opinion of the Collateral Agent, desirable to perfect the security interests
      purported to be created by each Security Agreement.

     

    “Final
      Maturity Date”
means
      March 28, 2012 or such earlier date on which (a) the Total Revolving Credit
      Commitment is terminated for any reason or (b) all or any portion of the
      Obligations shall become due and payable pursuant to the terms of Section
      9.01.

     

    “Financial
      Statements”
means
      (i) the audited consolidated balance sheet of the Borrower and its Subsidiaries
      for the Fiscal Year ended October 31, 2006, and the related consolidated
      statement of operations, shareholders’ equity and cash flows for the Fiscal Year
      then ended, and (ii) the unaudited consolidated balance sheet of the
      Borrower and its Subsidiaries for the 3 months ended January 31, 2007, and
      the
      related consolidated statement of operations, shareholder’s equity and cash
      flows for the 3 months then ended.

     

    “Fiscal
      Year”
means
      the fiscal year of the Borrower and its Subsidiaries ending on October 31st
      of
      each year.

     

    “Fixed
      Charge Coverage Ratio”
means,
      with respect to any Person for any period, the ratio of (i) the
      Consolidated EBITDA of such Person and its Subsidiaries for such period
minus
      Capital
      Expenditures made by such Person and its Subsidiaries during such period, to
      (ii) the sum of (A) all principal of Indebtedness of such Person and
      its Subsidiaries scheduled to be paid or prepaid during such period,
plus
      (B) Consolidated Net Interest Expense of such Person and its Subsidiaries
      for such period, plus
      (C) all
      income tax liabilities of such Person and its Subsidiaries that accrued during
      such period, to the extent that the amount of such liabilities is greater than
      zero, plus
      (D) cash dividends or distributions paid by such Person and its
      Subsidiaries (other than, in the case of the Borrower, dividends or
      distributions paid to the Borrower or its wholly-owned Subsidiaries) during
      such
      period. In determining the Fixed Charge Coverage Ratio for a particular period,
      the calculation of the income tax liabilities of such Person and its
      Subsidiaries described in clause (ii)(C) of the immediately preceding sentence
      shall be made without giving effect to any tax refunds, tax receivables, net
      operating losses or other net tax benefits that were received or receivable
      during such period on account of any prior periods.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    “Funding
      Losses”
has
      the
      meaning specified therefor in Section 2.04(d)(ii)(B).

     

    “Funds
      Flow Agreement”
means
      that certain Funds Flow Agreement, dated of even date herewith, by and among
      Administrative Agent, the Lenders, and each Loan Party.

     

    “GAAP”
means
      generally accepted accounting principles in effect from time to time in the
      United States, applied on a consistent basis, provided that for the purpose
      of
Section 7.03
      and the
      definitions used therein, “GAAP” shall mean generally accepted accounting
      principles in effect on the date hereof and consistent with those used in the
      preparation of the Financial Statements, provided, further, that if there occurs
      after the date of this Agreement any change in GAAP that affects in any respect
      the calculation of any covenant contained in Section 7.03,
      the
      Collateral Agent and the Borrower shall negotiate in good faith amendments
      to
      the provisions of this Agreement that relate to the calculation of such covenant
      with the intent of having the respective positions of the Lenders and the
      Borrower after such change in GAAP conform as nearly as possible to their
      respective positions as of the date of this Agreement and, until any such
      amendments have been agreed upon, the covenants in Section 7.03
      shall be
      calculated as if no such change in GAAP had occurred.

     

    “Gaming
      Authorities”
means
      every state and local regulating agency that has jurisdiction over the ownership
      or operation of gaming establishments or the manufacture, sale or distribution
      of gaming equipment or associated gaming equipment.

     

    “Gaming
      Laws”
means
      all applicable federal, state and local laws, rules and regulations pursuant
      to
      which the Gaming Authorities possess regulatory, licensing or permit authority
      over the ownership or operation of gaming establishments or the manufacture,
      sale or distribution of gaming equipment in any jurisdiction where the Borrower
      or its Subsidiaries do business.

     

    “Gaming
      License”
means
      any finding of suitability, registration, license, franchise or other approval
      or authorization required to own or lease gaming equipment or associated gaming
      equipment in any state or jurisdiction in which the Borrower or any of its
      Subsidiaries conduct business.

     

    “Governmental
      Authority”
means
      any nation or government, any Federal, state, city, town, municipality, county,
      local or other political subdivision thereof or thereto and any department,
      commission, board, bureau, instrumentality, agency or other entity exercising
      executive, legislative, judicial, taxing, regulatory or administrative powers
      or
      functions of or pertaining to government.

     

    “Guaranteed
      Obligations”
has
      the
      meaning specified therefor in Section
      11.01.

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    “Guarantor”
and
      “Guarantors”
      (i) have the meanings specified therefor in the preamble to this Agreement,
      and (ii) include each other Person which guarantees, pursuant to
Section 7.01(b)
      or
      otherwise, all or any part of the Obligations.

     

    “Guaranty”
means
      (i) the guaranty of each Guarantor party hereto contained in Article XI
      hereof, and (ii) each other guaranty made by any other Guarantor in favor
      of the Collateral Agent for the benefit of the Agents and the Lenders pursuant
      to the requirements of Section 7.01(b)
      or
      otherwise.

     

    “Hazardous
      Materials”
means
      (a) any element, compound or chemical that is defined, listed or otherwise
      classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous
      substance, extremely hazardous substance or chemical, hazardous waste, special
      waste, or solid waste under Environmental Laws or that is likely to cause
      immediately, or at some future time, harm to or have an adverse effect on,
      the
      environment or risk to human health or safety, including any pollutant,
      contaminant, waste, hazardous waste, toxic substance or dangerous good which
      is
      defined or identified in any Environmental Law and which is present in the
      environment in such quantity or state that it contravenes any Environmental
      Law;
      (b) petroleum and its refined products; (c) polychlorinated biphenyls;
      (d) any substance exhibiting a hazardous waste characteristic, including
      corrosivity, ignitability, toxicity or reactivity as well as any radioactive
      or
      explosive materials; and (e) any raw materials, building components
      (including asbestos-containing materials) and manufactured products containing
      hazardous substances listed or classified as such under Environmental
      Laws.

     

    “Hedging
      Agreement”
means
      any interest rate, foreign currency, commodity or equity swap, collar, cap,
      floor or forward rate agreement, or other agreement or arrangement designed
      to
      protect against fluctuations in interest rates or currency, commodity or equity
      values (including any option with respect to any of the foregoing and any
      combination of the foregoing agreements or arrangements), and any confirmation
      executed in connection with any such agreement or arrangement.

     

    “Highest
      Lawful Rate”
means,
      with respect to any Agent or any Lender, the maximum non-usurious interest
      rate,
      if any, that at any time or from time to time may be contracted for, taken,
      reserved, charged or received on the Obligations under laws applicable to such
      Agent or such Lender which are currently in effect or, to the extent allowed
      by
      law, under such applicable laws which may hereafter be in effect and which
      allow
      a higher maximum non-usurious interest rate than applicable laws now
      allow.

     

    “HSR”
means
      the Hart-Scott-Rodino Antitrust Improvements Act of 1976 as in effect as of
      the
      Effective Date.

     

    “Indebtedness”
means,
      with respect to any Person, without duplication, (i) all indebtedness of such
      Person for borrowed money; (ii) all obligations of such Person for the
      deferred purchase price of property or services (other than trade payables
      or
      other accounts payable incurred in the ordinary course of such Person’s business
      and not outstanding for more than 120 days after the invoice date or, if not
      invoiced, the date such payable was created); (iii) all obligations of such
      Person evidenced by bonds, debentures, notes or other similar instruments or
      upon which interest payments are customarily made; (iv) all reimbursement,
      payment or other obligations and liabilities of such Person created or arising
      under any conditional sales or other title retention agreement with respect
      to
      property used or acquired by such Person, even though the rights and remedies
      of
      the lessor, seller or lender thereunder may be limited to repossession or sale
      of such property; (v) all Capitalized Lease Obligations of such Person;
      (vi) all obligations and liabilities, contingent or otherwise, of such
      Person, in respect of letters of credit, acceptances and similar facilities;
      (vii) all obligations and liabilities, calculated on a basis satisfactory
      to the Collateral Agent and in accordance with accepted practice, of such Person
      under Hedging Agreements; (viii) all Contingent Obligations;
      (ix) liabilities incurred under Title IV of ERISA with respect to any
      plan (other than a Multiemployer Plan) covered by Title IV of ERISA and
      maintained for employees of such Person or any of its ERISA Affiliates;
      (x) withdrawal liability incurred under ERISA by such Person or any of its
      ERISA Affiliates with respect to any Multiemployer Plan; (xi) all monetary
      obligations under any receivables factoring, receivable sales or similar
      transactions and all monetary obligations under any synthetic lease, tax
      ownership/operating lease, off-balance sheet financing or similar financing;
      and
      (xii) all obligations referred to in clauses (i) through (xi) of this definition
      of another Person secured by (or for which the holder of such Indebtedness
      has
      an existing right, contingent or otherwise, to be secured by) a Lien upon
      property owned by such Person, even though such Person has not assumed or become
      liable for the payment of such Indebtedness. The Indebtedness of any Person
      shall include the Indebtedness of any partnership or joint venture in which
      such
      Person is a general partner or a joint venturer to the extent such Person is
      liable therefor.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    “Indemnified
      Matters”
has
      the
      meaning specified therefor in Section
      12.15.

     

    “Indemnitees”
has
      the
      meaning specified therefor in Section
      12.15.

     

    “Insolvency
      Proceeding”
means
      any proceeding commenced by or against any Person under any provision of the
      Bankruptcy Code or under any other bankruptcy or insolvency law, assignments
      for
      the benefit of creditors, formal or informal moratoria, compositions, or
      extensions generally with creditors, or proceedings seeking reorganization,
      arrangement, or other similar relief.

     

    “Intercompany
      Subordination Agreement”
means
      the Intercompany Subordination Agreement, dated as of the Effective Date, duly
      executed by each of the Loan Parties, substantially in the form of Exhibit
      I-1.

     

    “Interest
      Period”
means,
      with respect to each LIBOR Rate Loan, a period commencing on the date of the
      making of such LIBOR Rate Loan and ending 1, 2, or 3 months thereafter;
provided,
      however,
      that
      (a) if any Interest Period would end on a day that is not a Business Day, such
      Interest Period shall be extended (subject to clauses (c)-(e) below) to the
      next
      succeeding Business Day, (b) interest shall accrue at the applicable rate based
      upon the LIBOR Rate from and including the first day of each Interest Period
      to,
      but excluding, the day on which any Interest Period expires, (c) any Interest
      Period that would end on a day that is not a Business Day shall be extended
      to
      the next succeeding Business Day unless such Business Day falls in another
      calendar month, in which case such Interest Period shall end on the next
      preceding Business Day, (d) with respect to an Interest Period that begins
      on
      the last Business Day of a calendar month (or on a day for which there is no
      numerically corresponding day in the calendar month at the end of such Interest
      Period), the Interest Period shall end on the last Business Day of the calendar
      month that is 1, 2, or 3 months after the date on which the Interest Period
      began, as applicable, and (e) Borrower may not elect an Interest Period which
      will end after the Final Maturity Date.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    “Inventory”
means,
      with respect to any Person, all of each of such Person’s now owned or hereafter
      acquired right, title, and interest with respect to inventory as defined in
      the
      Code.

     

    “IRC”
means
      the Internal Revenue Code of 1986, as amended (or any successor statute thereto)
      and the regulations thereunder.

     

    “Lease”
means
      any lease of real property to which any Loan Party or any of its Subsidiaries
      is
      a party as lessor or lessee.

     

    “Lender”
and
      “Lenders”
have
      the meanings specified therefor in the preamble hereto.

     

    “Leverage
      Ratio”
means,
      as of any date of determination and as to any Person, the ratio of Consolidated
      Funded Indebtedness of such Person as of the date of determination to TTM EBITDA
      of such Person for the most recently ended 12 month period as to which financial
      statements have been delivered to the Agents pursuant hereto.

     

    “Liabilities”
has
      the
      meaning specified therefor in Section 2.07.

     

    “LIBOR
      Deadline”
has
      the
      meaning set forth in Section
      2.04(g)(ii)(A).

     

    “LIBOR
      Notice”
means
      a
      written notice in the form of Exhibit
      L-1.

     

    “LIBOR
      Option”
has
      the
      meaning specified therefor in Section 2.04(g)(i).

     

    “LIBOR
      Rate”
means,
      for each Interest Period for each LIBOR Rate Loan, the rate per annum determined
      by Administrative Agent by dividing (a) the Base LIBOR Rate for such Interest
      Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be
      adjusted on and as of the effective day of any change in the Reserve
      Percentage.

     

    “LIBOR
      Rate Loan”
means
      each portion of a Loan that bears interest at a rate determined by reference
      to
      the LIBOR Rate.

     

    “Lien”
means
      any mortgage, deed of trust, pledge, lien (statutory or otherwise), security
      interest, charge or other encumbrance or security or preferential arrangement
      of
      any nature, including any conditional sale or title retention arrangement,
      any
      Capitalized Lease and any assignment, deposit arrangement or financing lease
      intended as, or having the effect of, security.

     

    “Loan”
means
      the Term Loan or any Revolving Loan made by an Agent or a Lender to the Borrower
      pursuant to Article II hereof.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    “Loan
      Account”
means
      an account maintained hereunder by the Administrative Agent on its books of
      account at the Payment Office, and with respect to the Borrower, in which the
      Borrower will be charged with all Loans made to, and all other Obligations
      incurred by, the Borrower.

     

    “Loan
      Document”
means
      this Agreement, the Funds Flow Agreement, the Intercompany Subordination
      Agreement, any Guaranty, any Security Agreement, any Filing Authorization
      Letter, and any other agreement, instrument, and other document executed and
      delivered pursuant hereto or thereto or otherwise evidencing or securing any
      Loan or any other Obligation.

     

    “Loan
      Party”
means
      any Borrower or any Guarantor.

     

    “Loan
      Servicing Fee”
has
      the
      meaning specified therefor in Section
      2.06(d).

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (i) the operations, business, assets,
      properties, condition (financial or otherwise) or prospects of any Loan Party
      or
      the Loan Parties taken as a whole, (ii) the ability of any Loan Party to
      perform any of its obligations under any Loan Document to which it is a party,
      (iii) the legality, validity or enforceability of this Agreement or any
      other Loan Document, (iv) the rights and remedies of any Agent or any
      Lender under any Loan Document, or (v) the validity, perfection or priority
      of a Lien in favor of the Collateral Agent for the benefit of the Agents and
      the
      Lenders on any of the Collateral; provided,
      however,
      that
      the preceding shall not include the winding down and dissolution of GameTech
      Arizona Corporation, a Subsidiary of Borrower that was incorporated in Arizona,
      as soon as possible after the completion of litigation and the passing of any
      right of appeal regarding that certain lawsuit Fortunet, Inc. v. GameTech
      International, Inc. and GameTech Arizona Corporation (U.S. District Court,
      District of Nevada). 

     

    “Material
      Contract”
means,
      with respect to the Borrower or any of its Subsidiaries, each contract or
      agreement to which the Borrower or any of its Subsidiaries is a party involving
      aggregate consideration payable to or by the Borrower or such Subsidiary of
      five
      percent (5%) or more of the Borrower’s or such Subsidiary’s annual consolidated
      revenues during any fiscal year (other than purchase orders in the ordinary
      course of the business of the Borrower or such Subsidiary and other than
      contracts that by their terms may be terminated by the Borrower or such
      Subsidiary in the ordinary course of its business upon less than 60 days notice
      without penalty or premium).

     

    “Maximum
      Credit Facility Amount”
has
      the
      meaning specified therefor in the recitals hereto.

     

    “Moody’s”
means
      Moody’s Investors Service, Inc. and any successor thereto.

     

    “Multiemployer
      Plan”
means
      a
“multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Loan
      Party or any of its ERISA Affiliates has contributed to, or has been obligated
      to contribute, at any time during the preceding six (6) years.

     

    “Net
      Cash Proceeds”
means,
      (i) with respect to any Disposition by any Person or any of its
      Subsidiaries, the amount of cash received (directly or indirectly) from time
      to
      time (whether as initial consideration or through the payment or disposition
      of
      deferred consideration) by or on behalf of such Person or such Subsidiary,
      in
      connection therewith after deducting therefrom only (A) the amount of any
      Indebtedness secured by any Permitted Lien on any asset (other than Indebtedness
      assumed by the purchaser of such asset) which is required to be, and is, repaid
      in connection with such Disposition (other than Indebtedness under this
      Agreement), (B) reasonable expenses related thereto incurred by such Person
      or such Subsidiary in connection therewith, (C) transfer taxes paid to any
      taxing authorities by such Person or such Subsidiary in connection therewith,
      and (D) net income taxes to be paid in connection with such Disposition
      (after taking into account any tax credits or deductions and any tax sharing
      arrangements) and (ii) with respect to the issuance or incurrence of any
      Indebtedness by any Person or any of its Subsidiaries, or the sale or issuance
      by any Person or any of its Subsidiaries of any shares of its Capital Stock,
      the
      aggregate amount of cash received (directly or indirectly) from time to time
      (whether as initial consideration or through the payment or disposition of
      deferred consideration) by or on behalf of such Person or such Subsidiary in
      connection therewith, after deducting therefrom only (A) reasonable
      expenses related thereto incurred by such Person or such Subsidiary in
      connection therewith, (B) transfer taxes paid by such Person or such Subsidiary
      in connection therewith and (C) net income taxes to be paid in connection
      therewith (after taking into account any tax credits or deductions and any
      tax
      sharing arrangements); in each case of clause (i) and (ii) to the extent, but
      only to the extent, that the amounts so deducted are (x) actually paid to a
      Person that, except in the case of reasonable out-of-pocket expenses, is not
      an
      Affiliate of such Person or any of its Subsidiaries and (y) properly
      attributable to such transaction or to the asset that is the subject
      thereof.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    “New
      Lending Office”
has
      the
      meaning specified therefor in Section
      2.08(d).

     

    “New
      Subsidiary”
has
      the
      meaning specified therefor in Section
      7.02(b).

     

    “Non-U.S.
      Lender”
has
      the
      meaning specified therefor in Section
      2.08(d).

     

    “Notice
      of Borrowing”
has
      the
      meaning specified therefor in Section 2.02(a).

     

    “Obligations”
means
      all present and future indebtedness, obligations, and liabilities of each Loan
      Party to the Agents and the Lenders, or any of them, under the Loan Documents,
      whether or not the right of payment in respect of such claim is reduced to
      judgment, liquidated, unliquidated, fixed, contingent, matured, disputed,
      undisputed, legal, equitable, secured, unsecured, and whether or not such claim
      is discharged, stayed or otherwise affected by any proceeding referred to in
      Section 9.01.
      Without
      limiting the generality of the foregoing, the Obligations of each Loan Party
      under the Loan Documents include (a) the obligation (irrespective of
      whether a claim therefor is allowed in any Insolvency Proceeding) to pay
      principal, interest, charges, expenses, fees, attorneys fees and disbursements,
      indemnities and other amounts payable by such Person under the Loan Documents,
      and (b) the obligation of such Person to reimburse any amount in respect of
      any of the foregoing that any Agent or any Lender (in its sole discretion)
      may
      elect to pay or advance on behalf of such Person.

     

    “Operating
      Lease Obligations”
means
      all obligations for the payment of rent for any real or personal property under
      leases or agreements to lease, other than Capitalized Lease
      Obligations.

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    “Other
      Taxes”
has
      the
      meaning specified therefor in Section
      2.08(b).

     

    “Borrower”
has
      the
      meaning specified therefor in the preamble hereto.

     

    “Participant
      Register”
has
      the
      meaning specified therefor in Section
      12.07(g).

     

    “Payment
      Office”
means
      the Administrative Agent’s office located at 299 Park Avenue, 23rd Floor, New
      York, New York or at such other office or offices of the Administrative
      Agent as may be designated in writing from time to time by the Administrative
      Agent to the Collateral Agent and the Borrower.

     

    “PBGC”
means
      the Pension Benefit Guaranty Corporation or any successor thereto.

     

    “Permitted
      Dispositions”
      means (a) sales, leases or other dispositions of assets to buyers or lessees
      in
      the ordinary course of business, (b) sales or other dispositions of
      obsolete or worn-out equipment in the ordinary course of business, (c) sales
      or
      other dispositions of other property or assets for cash in an aggregate amount
      not less than the fair market value of such property or assets, provided
      that the
      Net Cash Proceeds of such Dispositions in the case of clauses (b) and (c) do
      not
      exceed $1,000,000 in the aggregate in any twelve-month period, (d)
      the use or transfer of Cash and Cash Equivalents by the Borrower and its
      Subsidiaries in a manner that is not prohibited by the terms of this Agreement
      or the other Loan Documents, (e) the licensing by the Borrower and its
      Subsidiaries, on a non-exclusive basis, of patents, trademarks, copyrights,
      and
      other intellectual property rights in the ordinary course of business, (f)
      the
      granting of leases or subleases of personal and real property to other Persons
      not materially interfering with the conduct of business of any of the Loan
      Parties, and (g) transfers, collectively not exceeding $7,000,000 annually,
      to
      all of Borrower’s CFCs.

     

    “Permitted
      Indebtedness”
      means:

     

    (a) any
      Indebtedness owing to any Agent and any Lender under this Agreement and the
      other Loan Documents;

     

    (b) Indebtedness
      listed on Schedule 7.02(b),
      and the
      extension of maturity, refinancing or modification of the terms thereof;
provided,
      however,
      that
      (i) such extension, refinancing or modification is pursuant to terms that are
      not less favorable to the Loan Parties and the Lenders than the terms of the
      Indebtedness being extended, refinanced or modified and (ii) immediately after
      giving effect to such extension, refinancing or modification, the amount of
      such
      Indebtedness is not greater than the amount of Indebtedness outstanding
      immediately prior to such extension, refinancing or modification plus accrued
      interest thereon and the fees incurred in connection with the extension,
      refinancing, or modification;

     

    (c) Indebtedness
      evidenced by Capitalized Lease Obligations entered into in order to finance
      Capital Expenditures made by the Loan Parties in accordance with the provisions
      of Section 7.02(g),
      which
      Indebtedness, when aggregated with the principal amount of all Indebtedness
      incurred under this clause (c) and clause (d) of this definition, does not
      exceed $1,000,000 at any time outstanding;

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    (d) purchase
      money Indebtedness incurred to enable a Loan Party to acquire equipment in
      the
      ordinary course of its business, which Indebtedness, when aggregated with the
      principal amount of all Indebtedness incurred under this clause (d) and clause
      (c) of this definition, does not exceed $1,000,000 at any time
      outstanding;

     

    (e) Indebtedness
      permitted under Section
      7.02(e);

     

    (f) Indebtedness
      of the Parent or any of its Subsidiaries under any Hedging Agreement so long
      as
      such Hedging Agreements are used solely as a part of its normal business
      operations as a risk management strategy or hedge against changes resulting
      from
      market operations and not as a means to speculate for investment purposes on
      trends and shifts in financial or commodities markets;  

     

    (g) Indebtedness
      owed by one Loan Party or a Loan Party’s Subsidiary to another Loan Party or
      Loan Party’s Subsidiary so long as the making of the Investment by the Loan
      Party or Loan Party’s Subsidiary, as applicable, that is acting as the lender or
      guarantor is permitted hereunder;

     

    (h) Subordinated
      Debt; 

     

    (i) unsecured
      Indebtedness of the Borrower or any Subsidiary in respect of performance bonds,
      worker’s compensation claims, surety or appeal bonds and payment obligations in
      connection with self insurance or similar obligations that collectively total
      up
      to $1,000,000 above the amount set forth on Schedule
      B-1
      for the
      appeal bond described therein;

     

    (j) any
      Indebtedness associated with one or more letters of credit; and

     

    (k) any
      Indebtedness (including inter-company account payables or indebtedness),
      collectively not to exceed $500,000 annually, between Loan Parties and any
      of
      their respective CFCs.
      

     

    “Permitted
      Investments”
means
      (i) marketable direct obligations issued or unconditionally guaranteed by
      the United States Government or issued by any agency or instrumentality thereof
      and backed by the full faith and credit of the United States, in each case,
      maturing within six months from the date of acquisition thereof;
      (ii) commercial paper, maturing not more than 270 days after the date
      of issue rated P-1 by Moody’s or A-1 by Standard & Poor’s;
      (iii) certificates of deposit maturing not more than 270 days after
      the date of issue, issued by commercial banking institutions and money market
      or
      demand deposit accounts maintained at commercial banking institutions, each
      of
      which is a member of the Federal Reserve System and has a combined capital
      and
      surplus and undivided profits of not less than $500,000,000;
      (iv) repurchase agreements having maturities of not more than 90 days
      from the date of acquisition which are entered into with banks included in
      the
      commercial banking institutions described in clause (iii) above and which
      are secured by readily marketable direct obligations of the United States
      Government or any agency thereof; (v) money market accounts maintained with
      mutual funds having assets in excess of $2,500,000,000; and (vi) tax exempt
      securities rated A or better by Moody’s or A+ or better by Standard &
Poor’s.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    “Permitted
      Liens”
      means:

     

    (a) Liens
      securing the Obligations;

     

    (b) Liens
      for
      taxes, assessments, levies, and governmental charges the payment of which is
      not
      required under Section 7.01(c);

     

    (c) [intentionally
      omitted]

     

    (d) Liens
      imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and
      other similar Liens arising in the ordinary course of business and securing
      obligations (other than Indebtedness for borrowed money) that are not overdue
      by
      more than 30 days or are being contested in good faith and by appropriate
      proceedings promptly initiated and diligently conducted, and a reserve or other
      appropriate provision, if any, as shall be required by GAAP shall have been
      made
      therefor;

     

    (e) Liens
      described on Schedule
      7.02(a),
      but not
      the extension of coverage thereof to other property or assets;

     

    (f) Liens
      arising under Capitalized Leases or securing purchase money Indebtedness
      permitted under the definition of Permitted Indebtedness; provided,
      however,
      that
      (A) no such Lien shall extend to or cover any other property of any Loan
      Party or any of its Subsidiaries, and (B) the principal amount of the
      Indebtedness secured by any such Lien shall not exceed the cost of the property
      so held or acquired;

     

    (g) deposits
      and pledges of cash, Cash and Cash Equivalents and certificates of deposit
      securing (i) obligations incurred in respect of workers’ compensation,
      unemployment insurance or other forms of governmental insurance or benefits,
      (ii) the performance of bids, tenders, leases, contracts (other than for
      the payment of money) and statutory obligations or (iii) obligations on surety
      or appeal bonds;

     

    (h) easements,
      zoning restrictions and similar encumbrances on real property and minor
      irregularities in the title thereto that do not (i) secure obligations for
      the
      payment of money or (ii) materially impair the value of such property or its
      use
      by any Loan Party or any of its Subsidiaries in the normal conduct of such
      Person’s business; 

     

    (i) leases
      or
      subleases granted to other Persons not materially interfering with the conduct
      of the business of the Borrower or any of its Subsidiaries;

     

    (j) precautionary
      financing statement filings regarding operating leases;

     

    (k) Liens
      arising out of the existence of judgments or awards not giving rise to an Event
      of Default;

     

    (l) statutory
      and common law landlords’ liens under leases to which the Borrower or any of its
      Subsidiaries is a party; and

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (m) Liens
      securing refinancing Indebtedness permitted to be incurred hereunder;
provided,
      that
      such Liens do not extend to any property or assets other than the property
      or
      assets that served as collateral for the refinanced Indebtedness.

     

    “Permitted
      Preferred Stock”
means
      and refers to any Preferred Stock issued by the
      Borrower
      (and not
      by one or more of its Subsidiaries) that is not Prohibited Preferred
      Stock.

     

    “Person”
means
      an individual, corporation, limited liability company, partnership, association,
      joint-stock company, trust, unincorporated organization, joint venture or other
      enterprise or entity or Governmental Authority.

     

    “Post-Default
      Rate”
means
      a
      rate of interest per annum equal to the rate of interest otherwise in effect
      from time to time pursuant to the terms of this Agreement plus 2.0 percentage
      points, or, if a rate of interest is not otherwise in effect, interest at the
      highest rate specified herein for any Loan prior to the Event of Default plus
      2.0 percentage points.

     

    “Preferred
      Stock”
means,
      as applied to the Capital Stock of any Person, the Capital Stock of any class
      or
      classes (however designated) that is preferred with respect to the payment
      of
      dividends, or as to the distribution of assets upon any voluntary or involuntary
      liquidation or dissolution of such Person, over shares of Capital Stock of
      any
      other class of such Person. 

     

    “Prohibited
      Preferred Stock”
means
      any Preferred Stock that by its terms is mandatorily redeemable or subject
      to
      any other payment obligation (including any obligation to pay dividends, other
      than dividends of shares of Preferred Stock of the same class and series payable
      in kind or dividends of shares of common stock) on or before a date that is
      less
      than 1 year after the Final Maturity Date, or, on or before the date that is
      less than 1 year after the Final Maturity Date, is redeemable at the option
      of
      the holder thereof for cash or assets or securities (other than distributions
      in
      kind of shares of Preferred Stock of the same class and series or of shares
      of
      common stock).

     

    “property”
means
      any right or interest in or to property of any kind whatsoever, whether real,
      personal or mixed and whether tangible or intangible.

     

    “Pro
      Rata Share”
      means:

     

    (a) with
      respect to a Lender’s obligation to make Revolving Loans and right to receive
      payments of interest, fees, and principal with respect thereto, the percentage
      obtained by dividing (i) such Lender’s Revolving
      Credit Commitment,
      by
      (ii) the Total Revolving
      Credit Commitment,
      provided,
      that,
      if the Total Revolving
      Credit Commitment
      has been
      reduced to zero, the numerator shall be the aggregate unpaid principal amount
      of
      such Lender’s Revolving Loans (including Collateral Agent Advances) and the
      denominator shall be the aggregate unpaid principal amount of all Revolving
      Loans (including Collateral Agent Advances),

     

    (b) with
      respect to a Lender’s obligation to make the Term Loan and right to receive
      payments of interest, fees, and principal with respect thereto, the percentage
      obtained by dividing (i) such Lender’s Term Loan Commitment, by
      (ii) the Total Term Loan Commitment, provided
      that if
      the Total Term Loan Commitment has been reduced to zero, the numerator shall
      be
      the aggregate unpaid principal amount of such Lender’s portion of the Term Loan
      and the denominator shall be the aggregate unpaid principal amount of the Term
      Loan, and

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (c) with
      respect to all other matters (including the indemnification obligations arising
      under Section 10.05)
      regarding a Lender, the percentage obtained by dividing (i) the sum of such
      Lender’s Revolving
      Credit Commitment
      and the
      unpaid principal amount of such Lender’s portion of the Term Loan, by
      (ii) the sum of the Total Revolving
      Credit Commitment
      and the
      aggregate unpaid principal amount of the Term Loan, provided,
      that,
      if such Lender’s Revolving
      Credit Commitment
      shall
      have been reduced to zero, such Lender’s Revolving
      Credit Commitment
      shall be
      deemed to be the aggregate unpaid principal amount of such Lender’s Revolving
      Loans (including Collateral Agent Advances) and if the Total Revolving
      Credit Commitment
      shall
      have been reduced to zero, the Total Revolving
      Credit Commitment
      shall be
      deemed to be the aggregate unpaid principal amount of all Revolving Loans
      (including Collateral Agent Advances).

     

    “Purchase
      Price”
means,
      with respect to the Acquisition, an amount equal to a cash payment of
      $38,945,270 with an “earn out” payment of $800,000 based on fiscal year 2006
      financial performance. 

     

    “Qualified
      Cash”
means,
      as of any date of determination, the amount of unrestricted Cash and Cash
      Equivalents and, without duplication, unrestricted Permitted Investments, that
      are subject to a perfected
      first-priority Lien in favor of Lenders,
      of the
      Borrower and its Subsidiaries that are subject to a control agreement in favor
      of Collateral Agent and that are on deposit with banks, or in securities
      accounts with securities intermediaries, or any combination
      thereof.

     

    “Rating
      Agencies”
has
      the
      meaning specified therefor in Section 2.07.

     

    “Reference
      Bank”
means
      JPMorgan Chase Bank, N.A., its successors or any other commercial bank
      designated by the Administrative Agent to the Borrower from time to
      time.

     

    “Reference
      Rate”
means
      the greater of (a) 8.00 percent per annum, and (b) the rate of interest
      publicly announced by the Reference Bank in New York, New York from time to
      time
      as its reference rate, base rate or prime rate. The reference rate, base rate
      or
      prime rate is determined from time to time by the Reference Bank as a means
      of
      pricing some loans to its borrowers and neither is tied to any external rate
      of
      interest or index nor necessarily reflects the lowest rate of interest actually
      charged by the Reference Bank to any particular class or category of customers.
      Each change in the Reference Rate shall be effective from and including the
      date
      such change is publicly announced as being effective.

     

    “Reference
      Rate Loan”
means
      each portion of a Loan that bears interest at a rate determined by reference
      to
      the Reference Rate.

     

    “Register”
has
      the
      meaning specified therefor in Section 12.07(d).

     

    “Registered
      Loan”
has
      the
      meaning specified therefor in Section
      12.07(d).

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    “Regulation
      T”,
      “Regulation
      U”
and
      “Regulation
      X”
mean,
      respectively, Regulations T, U and X of the Board or any successor, as the
      same
      may be amended or supplemented from time to time.

     

    “Reinvestment
      Eligible Funds”
means
      (a) Net Cash Proceeds which, but for the application of Section
      2.05(d)(ii),
      would
      be required to be used to prepay the Loans pursuant to Section 2.05(c)(v)
      or (b)
      insurance or condemnation proceeds paid as the result of loss, destruction,
      casualty, condemnation or expropriation which, but for the application of
Section
      2.05(d)(ii),
      would
      be required to be used to prepay the Loans pursuant to Section
      2.05(c)(vii).

     

    “Reinvestment
      Notice”
has
      the
      meaning specified therefor in Section
      2.05(d).

     

    “Related
      Fund”
means
      a
      fund, money market account, investment account or other account managed by
      a
      Lender or an Affiliate of such Lender or its investment manager.

     

    “Related
      Party Assignment”
has
      the
      meaning specified therefor in Section
      12.07(b).

     

    “Related
      Party Register”
has
      the
      meaning specified therefor in Section
      12.07(d).

     

    “Release”
means
      any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
      injecting, escaping, leaching, seeping, migrating, dumping or disposing of
      any
      Hazardous Material (including the abandonment or discarding of barrels,
      containers and other closed receptacles containing any Hazardous Material)
      into
      the indoor or outdoor environment, including the movement of Hazardous Materials
      through or in the ambient air, soil, surface or ground water, or
      property.

     

    “Remedial
      Action”
means
      all actions taken to (i) clean up, remove, remediate, contain, treat, monitor,
      assess, evaluate or in any other way address Hazardous Materials in the indoor
      or outdoor environment; (ii) prevent or minimize a Release or threatened Release
      of Hazardous Materials so they do not migrate or endanger or threaten to
      endanger public health or welfare or the indoor or outdoor environment; (iii)
      perform pre-remedial studies and investigations and post-remedial operation
      and
      maintenance activities; or (iv) any other actions authorized by 42 U.S.C.
§ 9601. 

     

    “Reportable
      Event”
means
      an event described in Section 4043 of ERISA (other than an event not subject
      to
      the provision for 30-day notice to the PBGC under the regulations promulgated
      under such Section).

     

    “Required
      Lenders”
means
      Lenders whose Pro Rata Shares (calculated under clause (b) of the
      definition thereof) aggregate more than 50%.

     

    “Reserve
      Percentage”
means,
      on any day, for any Lender, the maximum percentage prescribed by the Board
      (or
      any successor Governmental Authority) for determining the reserve requirements
      (including any basic, supplemental, marginal, or emergency reserves) that are
      in
      effect on such date with respect to eurocurrency funding (currently referred
      to
      as “eurocurrency liabilities”) of that Lender, but so long as such Lender is not
      required or directed under applicable regulations to maintain such reserves,
      the
      Reserve Percentage shall be zero.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    “Revolving
      Credit Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make Revolving
      Loans to the Borrower in the amount set forth opposite such Lender’s name in
Schedule C-1
      hereto,
      as such amount may be terminated or reduced from time to time in accordance
      with
      the terms of this Agreement.

     

    “Revolving
      Loan”
and
      “Revolving
      Loans”
have
      the meaning specified therefor in Section 2.01(a)(i).

     

    “Revolving
      Loan Lender”
means
      a
      Lender with a Revolving
      Credit Commitment.

     

    “Revolving
      Loan Obligations”
means
      any Obligations with respect to the Revolving Loans (including the principal
      thereof, the interest thereon, and the fees and expenses specifically related
      thereto).

     

    “SEC”
means
      the Securities and Exchange Commission or any other similar or successor agency
      of the Federal government administering the Securities Act.

     

    “Securities
      Act”
means
      the Securities Act of 1933, as amended, or any similar Federal statute, and
      the
      rules and regulations of the SEC thereunder, all as the same shall be in effect
      from time to time.

     

    “Securitization”
has
      the
      meaning specified therefor in Section 2.07.

     

    “Securitization
      Parties”
has
      the
      meaning specified therefor in Section 2.07.

     

    “Security
      Agreement”
means
      a
      Security Agreement, in form and substance reasonably satisfactory to Collateral
      Agent, made by a Loan Party in favor of the Collateral Agent for the benefit
      of
      the Agents and the Lenders, securing the Obligations and delivered to the
      Collateral Agent.

     

    “Seller”
means
      Summit Amusement & Distributing, Ltd., a Texas limited
      partnership.

     

    “Settlement
      Period”
has
      the
      meaning specified therefor in Section 2.02(d)(i).

     

    “Solvent”
means,
      with respect to any Person on a particular date, that on such date (i) the
      fair value of the property of such Person is not less than the total amount
      of
      the liabilities of such Person, (ii) the present fair salable value of the
      assets of such Person is not less than the amount that will be required to
      pay
      the probable liability of such Person on its existing debts as they become
      absolute and matured, (iii) such Person is able to realize upon its assets
      and pay its debts and other liabilities, contingent obligations and other
      commitments as they mature in the normal course of business, (iv) such
      Person does not intend to, and does not believe that it will, incur debts or
      liabilities beyond such Person’s ability to pay as such debts and liabilities
      mature, and (v) such Person is not engaged in business or a transaction,
      and is not about to engage in business or a transaction, for which such Person’s
      property would constitute unreasonably small capital.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    “Standard
      & Poor’s”
means
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill
      Companies, Inc. and any successor thereto.

     

    “Subordinated
      Debt”
means
      Indebtedness of the
      Borrower and/or the Guarantors that
      is
      on terms and conditions (including payment terms, interest rates, covenants,
      remedies, defaults and other material terms) satisfactory to the Collateral
      Agent and the Required Lenders and which has been expressly subordinated in
      right of payment to all Indebtedness of the
      Borrower and/or the Guarantors under
      the
      Loan Documents by the execution and delivery of a subordination agreement,
      in
      form and substance satisfactory to the Collateral Agent and the Required
      Lenders.

     

    “Subsidiary”
means,
      with respect to any Person at any date, any corporation, limited or general
      partnership, limited liability company, trust, estate, association, joint
      venture or other business entity (i) the accounts of which would be
      consolidated with those of such Person in such Person’s consolidated financial
      statements if such financial statements were prepared in accordance with GAAP
      or
      (ii) of which more than 50% of (A) the outstanding Capital Stock
      having (in the absence of contingencies) ordinary voting power to elect a
      majority of the board of directors or other managing body of such Person,
      (B) in the case of a partnership or limited liability company, the interest
      in the capital or profits of such partnership or limited liability company
      or
      (C) in the case of a trust, estate, association, joint venture or other
      entity, the beneficial interest in such trust, estate, association or other
      entity business is, at the time of determination, owned or controlled directly
      or indirectly through one or more intermediaries, by such Person;
      provided,
      however,
      that on
      and prior to the Effective Date and prior to the consummation of the
      Acquisition, all references herein or in any other Loan Document to Borrower
      and
      its Subsidiaries or Borrower and its Subsidiaries shall be deemed to include
      a
      reference to the Seller as if it were owned by Borrower and its
      Subsidiaries.
      

     

    “Taxes”
has
      the
      meaning specified therefor in Section
      2.08(a).

     

    “Term
      Loan”
has
      the
      meaning specified therefor in Section
      2.01(a)(ii).

     

    “Term
      Loan Commitment”
means,
      with respect to each Lender, the commitment of such Lender to make its portion
      of the Term Loan to the Borrower in the amount set forth in Schedule C-1
      hereto,
      as the same may be terminated or reduced from time to time in accordance with
      the terms of this Agreement.

     

    “Term
      Loan Lender”
means
      a
      Lender with a Term Loan Commitment.

     

    “Term
      Loan Obligations”
means
      any Obligations with respect to the Term Loan (including the principal thereof,
      the interest thereon, and the fees and expenses specifically related
      thereto).

     

    “Termination
      Event”
means
      (i) a Reportable Event with respect to any Employee Plan, (ii) any event that
      causes any Loan Party or any of its ERISA Affiliates to incur liability under
      Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212
      of
      ERISA or Section 4971 or 4975 of the IRC, (iii) the filing of a notice of
      intent to terminate an Employee Plan or the treatment of an Employee Plan
      amendment as a termination under Section 4041 of ERISA, (iv) the
      institution of proceedings by the PBGC to terminate an Employee Plan, or
      (v) any other event or condition which might constitute grounds under
      Section 4042 of ERISA for the termination of, or the appointment of a trustee
      to
      administer, any Employee Plan.

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    “Total
      Commitment”
means
      the sum of the Total Revolving
      Credit Commitment
      and the
      Total Term Loan Commitment.

     

    “Total
      Revolving Credit Commitment”
means
      the sum of the amounts of the Lenders’ Revolving
      Credit Commitments,
      which
      amount is $10,000,000 as of the Effective Date.

     

    “Total
      Term Loan Commitment”
means
      the sum of the amounts of the Lenders’ Term Loan Commitments, which amount is
      $30,000,000 as of the Effective Date.

     

    “Transferee”
has
      the
      meaning specified therefor in Section
      2.08(a).

     

    “TTM
      EBITDA”
means,
      as of any date of determination and with respect to a Person, the Consolidated
      EBITDA of such Person and its Subsidiaries for the period of 12 consecutive
      months most recently ended.

     

    “Unused
      Line Fee”
has
      the
      meaning specified therefor in Section
      2.06(c).

     

    “WARN”
has
      the
      meaning specified therefor in Section
      6.01(z).

     

    “Working
      Investment”
means,
      at any date of determination thereof, (i) the sum, for any Person and its
      Subsidiaries, of (A) the unpaid face amount of all Accounts Receivable of
      such Person and its Subsidiaries as at such date of determination, plus
      (B) the aggregate amount of prepaid expenses of such Person and its
      Subsidiaries as at such date of determination, minus
      (ii) the sum, for such Person and its Subsidiaries, of (A) the unpaid
      amount of all accounts payable of such Person and its Subsidiaries as at such
      date of determination, plus
      (B) the aggregate amount of all accrued expenses of such Person and its
      Subsidiaries as at such date of determination (but, excluding from accounts
      payable and accrued expenses, the current portion of long-term debt and all
      accrued interest and taxes).

     

    Section
      1.02 Terms
      Generally.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include,” “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation,” whether or not so expressly stated in each such
      instance and the term “or” has, except where otherwise indicated, the inclusive
      meaning represented by the phrase “and/or.” The word “will” shall be construed
      to have the same meaning and effect as the word “shall.” Unless the context
      requires otherwise, (a) any definition of or reference to any agreement,
      instrument or other document herein shall be construed as referring to such
      agreement, instrument or other document as from time to time amended,
      supplemented or otherwise modified (subject to any restrictions on such
      amendments, supplements or modifications set forth herein), (b) any reference
      herein to any Person shall be construed to include such Person’s successors and
      assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
      import, shall be construed to refer to this Agreement in its entirety and not
      to
      any particular provision hereof, (d) all references herein to Articles,
      Sections, Exhibits and Schedules shall be construed to refer to Articles and
      Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
      “asset” and “property” shall be construed to have the same meaning and effect
      and to refer to any and all tangible and intangible assets and properties,
      including cash, securities, accounts and contract rights. References in this
      Agreement to “determination” by any Agent include estimates honestly made by
      such Agent (in the case of quantitative determinations) and beliefs honestly
      held by such Agent (in the case of qualitative determinations).

     

    
      
        
        

      

      
        -25-

        
          

        

      

      
        
        

      

    

     

    Section
      1.03 Accounting
      and Other Terms.
      Unless
      otherwise expressly provided herein, each accounting term used herein shall
      have
      the meaning given it under GAAP. All terms used in this Agreement which are
      defined in Article 8 or Article 9 of the Code and which are not otherwise
      defined herein shall have the same meanings herein as set forth
      therein.

     

    Section
      1.04 Time
      References.
      Unless
      otherwise indicated herein, all references to time of day refer to Eastern
      Standard Time or Eastern daylight saving time, as in effect in New York City
      on
      such day. For purposes of the computation of a period of time from a specified
      date to a later specified date, the word “from” means “from and including” and
      the words “to” and “until” each means “to but excluding”; provided,
      however,
      that
      with respect to a computation of fees or interest payable to any Agent or any
      Lender , such period shall in any event consist of at least one full
      day.

     

    ARTICLE
      II

     

    THE
      LOANS

     

    Section
      2.01 Commitments.
      (a)
      Subject to the terms and conditions and relying upon the representations and
      warranties herein set forth:

     

    (i) each
      Revolving Loan Lender severally agrees to make loans (each, a “Revolving
      Loan”
and,
      collectively, the “Revolving
      Loans”)
      to the
      Borrower at any time and from time to time from the Effective Date to the Final
      Maturity Date, or until the earlier reduction of its Revolving
      Credit Commitment
      to zero
      in accordance with the terms hereof, in an aggregate principal amount of
      Revolving Loans at any time outstanding not to exceed the lesser of (A) the
      amount of such Lender’s Revolving
      Credit Commitment, and (B) the amount of such Lender’s Pro Rata Share of the
      then extant Borrowing Base;
      and

     

    (ii) each
      Term
      Loan Lender severally agrees to make a term loan (collectively, the
“Term
      Loan”)
      to the
      Borrower on the Effective Date, in an aggregate principal amount equal to the
      amount of such Lender’s Term Loan Commitment.

     

    (b) Notwithstanding
      the foregoing:

     

    (i) The
      aggregate principal amount of Revolving Loans outstanding at any time to the
      Borrower shall not exceed the lower of (A) the Total Revolving
      Credit Commitment
      and
      (B) the current Borrowing Base. The Revolving
      Credit Commitment
      of each
      Lender shall automatically and permanently be reduced to zero on the Final
      Maturity Date. Within the foregoing limits, the Borrower may borrow, repay
      and
      reborrow the Revolving Loans, on or after the Effective Date and prior to the
      Final Maturity Date, subject to the terms, provisions and limitations set forth
      herein.

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

     

    (ii) The
      maximum amount of Revolving Loans that may be borrowed hereunder on the
      Effective Date is $9,000,000.

     

    (iii) The
      aggregate principal amount of the Term Loan made on the Effective Date shall
      not
      exceed the Total Term Loan Commitment. Any principal amount of the Term Loan
      that is repaid or prepaid may not be reborrowed.

     

    Section
      2.02 Making
      the Loans.
      

     

    (a) The
      Borrower shall give the Administrative Agent prior telephonic notice
      (immediately confirmed in writing, in substantially the form of Exhibit 2.01(b)(ii)
      hereto
      (a “Notice
      of Borrowing”),
      not
      later than 12:00 noon (New York City time) on the date which is 3 Business
      Days prior to the date of the proposed Loan (or such shorter period as the
      Administrative Agent is willing, in its sole discretion, to accommodate from
      time to time). Such Notice of Borrowing shall be irrevocable and shall specify
      (i) the principal amount of the proposed Loan, (ii) the proposed
      borrowing date, which must be a Business Day, and, with respect to the Term
      Loan, must be the Effective Date, (iii) whether the proposed Loan is to be
      a
      Reference Rate Loan or a LIBOR Rate Loan, and (iv) in the case of a LIBOR Rate
      Loan, the initial Interest Period to be applicable thereto, which shall be
      a
      period contemplated by the definition of the term “Interest Period”. If no
      election as to the type of Loan is specified, then the requested Loan shall
      be a
      Reference Rate Loan. If no Interest Period is specified with respect to any
      requested LIBOR Rate Loan, then the Borrower shall be deemed to have selected
      an
      Interest Period of one month’s duration. The Administrative Agent
      and
      the Lenders may act without liability upon the basis of written, telecopied
      or
      telephonic notice believed by the Administrative Agent in good faith to be
      from
      the Borrower (or from any Authorized Officer thereof designated in writing
      purportedly from the Borrower to the Administrative Agent). The Borrower hereby
      waives the right to dispute the Administrative Agent’s record of the terms of
      any such telephonic Notice of Borrowing. The
      Administrative Agent and each Lender shall be entitled to rely conclusively
      on
      any Authorized Officer’s authority to request a Loan on behalf of the Borrower
      until the Administrative Agent receives written notice to the contrary. The
      Administrative Agent and the Lenders shall have no duty to verify the
      authenticity of the signature appearing on any written Notice of
      Borrowing.

     

    (b) Each
      Notice of Borrowing pursuant to this Section 2.02
      shall be
      irrevocable and the Borrower shall be bound to make a borrowing in accordance
      therewith. Each Revolving Loan shall be made in a minimum amount of $500,000
      and
      shall be in integral multiples of $100,000 in excess thereof.

     

    (c) (i) Except
      as
      otherwise provided in this Section 2.02(c),
      all
      Loans under this Agreement shall be made by the Lenders simultaneously and
      proportionately to their Pro Rata Shares of the Total Revolving Credit
      Commitment and the Total Term Loan Commitment, as the case may be, it being
      understood that no Lender shall be responsible for any default by any other
      Lender in that other Lender’s obligations to make a Loan requested hereunder,
      nor shall the Commitment of any Lender be increased or decreased as a result
      of
      the default by any other Lender in that other Lender’s obligation to make a Loan
      requested hereunder, and each Lender shall be obligated to make the Loans
      required to be made by it by the terms of this Agreement regardless of the
      failure by any other Lender.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

     

    (ii) Notwithstanding
      any other provision of this Agreement, and in order to reduce the number of
      fund
      transfers among the Borrower, the Agents and the Lenders, the Borrower, the
      Agents and the Lenders agree that the Administrative Agent may (but shall not
      be
      obligated to), and the Borrower and the Lenders hereby irrevocably authorize
      the
      Administrative Agent to, fund, on behalf of the Lenders with a Revolving
      Credit Commitment,
      Revolving Loans pursuant to Section 2.01,
      subject
      to the procedures for settlement set forth in Section
      2.02(d);
      provided,
      however,
      that
      (a) the Administrative Agent shall in no event fund any such Revolving
      Loans if the Administrative Agent shall have received written notice from the
      Collateral Agent or the Required Lenders prior to the time of the proposed
      Revolving Loan that one or more of the conditions precedent contained in
Section 5.02
      will not
      be satisfied at the time of the proposed Revolving Loan, and (b) the
      Administrative Agent shall not otherwise be required to determine that, or
      take
      notice whether, the conditions precedent in Section 5.02
      have
      been satisfied. If the Borrower gives a Notice of Borrowing requesting a
      Revolving Loan and the Administrative Agent elects not to fund such Revolving
      Loan on behalf of the Revolving Loan Lenders, then promptly after receipt of
      the
      Notice of Borrowing requesting such Revolving Loan, the Administrative Agent
      shall notify each Revolving Loan Lender of the specifics of the requested
      Revolving Loan and that it will not fund the requested Revolving Loan on behalf
      of the Revolving Loan Lenders. If the Administrative Agent notifies the
      Revolving Loan Lenders that it will not fund a requested Revolving Loan on
      behalf of such Revolving Loan Lenders, each Revolving Loan Lender shall make
      its
      Pro Rata Share of the Revolving Loan available to the Administrative Agent,
      in
      immediately available funds, at the Payment Office no later than 3:00 p.m.
      (New York City time) (provided that the Administrative Agent
      requests payment from such Revolving Loan Lender not later than 1:00 p.m.
      (New York City time)) on the date of the proposed Revolving Loan. The
      Administrative Agent will make the proceeds of such Revolving Loans available
      to
      the Borrower on the day of the proposed Revolving Loan by causing an amount,
      in
      immediately available funds, equal to the proceeds of all such Revolving Loans
      received by the Administrative Agent
      at
      the Payment Office or the amount funded by the Administrative Agent
      on
      behalf of the Revolving Loan Lenders to be deposited in an account designated
      by
      the Borrower.

     

    (iii) If
      the
      Administrative Agent
      has
      notified the Revolving Loan Lenders that the Administrative Agent,
      on
      behalf of such Revolving Loan Lenders, will fund a particular Revolving Loan
      pursuant to Section
      2.02(c)(ii),
      the
      Administrative Agent
      may
      assume that each such Revolving Loan Lender has made such amount available
      to
      the Administrative Agent
      on
      such day and the Administrative Agent,
      in
      its sole discretion, may, but shall not be obligated to, cause a corresponding
      amount to be made available to the Borrower on such day. If the
      Administrative Agent
      makes such corresponding amount available to the Borrower and such corresponding
      amount is not in fact made available to the Administrative Agent
      by
      any such Revolving Loan Lender, the Administrative Agent
      shall be entitled to recover such corresponding amount on demand from such
      Revolving Loan Lender together with interest thereon, for each day from the
      date
      such payment was due until the date such amount is paid to the
      Administrative Agent,
      at
      the Federal Funds Rate for 3 Business Days and thereafter at the Reference
      Rate.
      During the period in which such Revolving Loan Lender has not paid such
      corresponding amount to the Administrative Agent,
      notwithstanding anything to the contrary contained in this Agreement or any
      other Loan Document, the amount so advanced by the Administrative Agent
      to
      the Borrower shall, for all purposes hereof, be a Revolving Loan made by the
      Administrative Agent for its own account. Upon any such failure by a Revolving
      Loan Lender to pay the Administrative Agent,
      the Administrative Agent
      shall promptly thereafter notify the Borrower of such failure and the Borrower
      shall immediately pay such corresponding amount to the
      Administrative Agent
      for
      its own account.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

     

    (iv) Nothing
      in this Section
      2.02(c)
      shall be
      deemed to relieve any Revolving Loan Lender from its obligations to fulfill
      its
Revolving
      Credit Commitment
      hereunder or to prejudice any rights that the Administrative Agent or the
      Borrower may have against any Revolving Loan Lender as a result of any default
      by such Revolving Loan Lender hereunder.

     

    (d) (i) With
      respect to all periods for which the Administrative Agent has funded Revolving
      Loans pursuant to Section
      2.02(c),
      on
      Friday of each week, or if the applicable Friday is not a Business Day, then
      on
      the following Business Day, or such shorter period as the Administrative Agent
      may from time to time select (any such week or shorter period being herein
      called a “Settlement
      Period”),
      the
      Administrative Agent shall notify each Revolving Loan Lender of the unpaid
      principal amount of the Revolving Loans outstanding as of the last day of each
      such Settlement Period. In the event that such amount is greater than the unpaid
      principal amount of the Revolving Loans outstanding on the last day of the
      Settlement Period immediately preceding such Settlement Period (or, if there
      has
      been no preceding Settlement Period, the amount of the Revolving Loans made
      on
      the date of such Revolving Loan Lender’s initial funding), each Revolving Loan
      Lender shall promptly (and in any event not later than 2:00 p.m. (New York
      City time) if the Administrative Agent requests payment from such Lender not
      later than 12:00 noon (New York City time) on such day) make available to
      the Administrative Agent its Pro Rata Share of the difference in immediately
      available funds. In the event that such amount is less than such unpaid
      principal amount, the Administrative Agent shall promptly pay over to each
      Revolving Loan Lender its Pro Rata Share of the difference in immediately
      available funds. In addition, if the Administrative Agent shall so request
      at
      any time when a Default or an Event of Default shall have occurred and be
      continuing, or any other event shall have occurred as a result of which the
      Administrative Agent shall determine that it is desirable to present claims
      against the Borrower for repayment, each Revolving Loan Lender shall promptly
      remit to the Administrative Agent or, as the case may be, the Administrative
      Agent shall promptly remit to each Revolving Loan Lender, sufficient funds
      to
      adjust the interests of the Revolving Loan Lenders in the then outstanding
      Revolving Loans to such an extent that, immediately after giving effect to
      such
      adjustment, each such Revolving Loan Lender’s interest in the then outstanding
      Revolving Loans will be equal to its Pro Rata Share thereof. The obligations
      of
      the Administrative Agent and each Revolving Loan Lender under this Section
      2.02(d)
      shall be
      absolute and unconditional. Each Revolving Loan Lender shall only be entitled
      to
      receive interest on its Pro Rata Share of the Revolving Loans which have been
      funded by such Revolving Loan Lender.

     

    (ii) In
      the
      event that any Revolving Loan Lender fails to make any payment required to
      be
      made by it pursuant to Section
      2.02(d)(i),
      the
      Administrative Agent shall be entitled to recover such corresponding amount
      on
      demand from such Revolving Loan Lender together with interest thereon, for
      each
      day from the date such payment was due until the date such amount is paid to
      the
      Administrative Agent, at the Federal Funds Rate for 3 Business Days and
      thereafter at the Reference Rate. During the period in which such Revolving
      Loan
      Lender has not paid such corresponding amount to the Administrative Agent,
      notwithstanding anything to the contrary contained in this Agreement or any
      other Loan Document, the amount so advanced by the Administrative Agent to
      the
      Borrower shall, for all purposes hereof, be a Revolving Loan made by the
      Administrative Agent for its own account. Upon any such failure by a Revolving
      Loan Lender to pay the Administrative Agent, the Administrative Agent shall
      promptly thereafter notify the Borrower of such failure and the Borrower shall
      immediately pay such corresponding amount to the Administrative Agent for its
      own account. Nothing in this Section
      2.02(d)(ii)
      shall be
      deemed to relieve any Revolving Loan Lender from its obligation to fulfill
      its
Revolving
      Credit Commitment
      hereunder or to prejudice any rights that the Administrative Agent or the
      Borrower may have against any Revolving Loan Lender as a result of any default
      by such Revolving Loan Lender hereunder.

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    Section
      2.03 Repayment
      of Loans; Evidence of Debt.
      ii)
      The
      outstanding principal of all Revolving Loans shall be due and payable on the
      Final Maturity Date.

     

    (b) The
      outstanding principal of the Term Loan shall be repayable in consecutive
      quarterly installments, on the first day of each January, April, July, and
      October commencing on January 1, 2008 and ending on the Final Maturity Date,
      as
      follows:

     

    
      	
              Payment
                Date

            	
              Amount

            
	
              January
                1, 2008

            	
              $1,100,000

            
	
              April,
                1, 2008

            	
              $1,100,000

            
	
              July
                1, 2008

            	
              $1,100,000

            
	
              October
                1, 2008 

            	
              $1,100,000

            
	
              January
                1, 2009

            	
              $1,100,000

            
	
              April,
                1, 2009

            	
              $1,100,000

            
	
              July
                1, 2009

            	
              $1,100,000

            
	
              October
                1, 2009

            	
              $1,100,000

            
	
              January
                1, 2010

            	
              $1,100,000

            
	
              April,
                1, 2010

            	
              $1,100,000

            
	
              July
                1, 2010

            	
              $1,100,000

            
	
              October
                1, 2010

            	
              $1,100,000

            
	
              January
                1, 2011

            	
              $1,100,000

            
	
              April,
                1, 2011

            	
              $1,100,000

            
	
              July
                1, 2011

            	
              $1,100,000

            
	
              October
                1, 2011

            	
              $1,100,000

            
	
              January
                1, 2012

            	
              $1,100,000

            
	
              Final
                Maturity Date

            	
              All
                Remaining Obligations

            

    

     

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

     

    ;
      provided,
      however,
      that
      the last such installment shall be in the amount necessary to repay in full
      the
      unpaid principal amount of the Term Loan. The outstanding principal of the
      Term
      Loan shall be repaid in full on the earlier of (i) the termination of the
      Total Revolving
      Credit Commitment
      and
      (ii) the Final Maturity Date.

     

    (c) Each
      Lender shall maintain in accordance with its usual practice an account or
      accounts evidencing the Indebtedness of the Borrower to such Lender resulting
      from each Loan made by such Lender, including the amounts of principal and
      interest payable and paid to such Lender from time to time
      hereunder.

     

    (d) The
      Administrative Agent shall maintain accounts in which it shall record (i) the
      amount of each Loan made hereunder, (ii) the amount of any principal or interest
      due and payable or to become due and payable from the Borrower to each Lender
      hereunder and (iii) the amount of any sum received by the Administrative Agent
      hereunder for the account of the Lenders and each Lender’s share
      thereof.

     

    (e) The
      entries made in the accounts maintained pursuant to paragraphs
      (c) or (d)
      of this
Section
      2.03
      shall be
prima facie
      evidence
      of the existence and amounts of the obligations recorded therein; provided
      that the
      failure of any Lender or the Administrative Agent to maintain such accounts
      or
      any error therein shall not in any manner affect the obligation of the Borrower
      to repay the Loans in accordance with the terms of this Agreement.

     

    (f) Any
      Lender may request that Loans made by it be evidenced by a promissory note.
      In
      such event, the Borrower shall execute and deliver to such Lender a promissory
      note payable to the order of such Lender (or, if requested by such Lender,
      to
      such Lender and its registered assigns) in a form furnished by the Collateral
      Agent and reasonably satisfactory to the Borrower. Thereafter, the Loans
      evidenced by such promissory note and interest thereon shall at all times
      (including after assignment pursuant to Section
      12.07)
      be
      represented by one or more promissory notes in such form payable to the order
      of
      the payee named therein (or, if such promissory note is a registered note,
      to
      such payee and its registered assigns).

     

    Section
      2.04 Interest.
      

     

    (a) Revolving
      Loans.
      Each
      Revolving Loan shall bear interest on the principal amount thereof from time
      to
      time outstanding, from the date of the making of such Loan until the date on
      which such principal amount is repaid in accordance herewith, as follows: (i)
      if
      the relevant Revolving Loan is a LIBOR Rate Loan, at a rate per annum equal
      to
      the LIBOR Rate plus 3.50 percentage points, and (ii) otherwise, at a rate per
      annum equal to the Reference Rate plus 0.50 percentage points.

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

     

    (b) Term
      Loan.
      The
      Term Loan shall bear interest on the principal amount thereof from time to
      time
      outstanding, from the date of the making of the Term Loan until the date on
      which such principal amount is repaid in accordance herewith, as follows:
      (i) if the relevant portion of the Term Loan is a LIBOR Rate Loan, at a
      rate per annum equal to the LIBOR Rate plus 4.75 percentage points, and (ii)
      otherwise, at a rate per annum equal to the Reference Rate plus 1.75 percentage
      points.

     

    (c) Default
      Interest.
      To the
      extent permitted by law, upon the occurrence and during the continuance of
      an
      Event of Default, the principal of, and all accrued and unpaid interest on,
      all
      Loans, fees, indemnities, or any other Obligations of the Loan Parties under
      this Agreement and the other Loan Documents, shall bear interest, from the
      date
      such Event of Default occurred until the date such Event of Default is cured
      or
      waived in writing in accordance herewith, at a rate per annum equal at all
      times
      to the Post-Default Rate. All interest at the Post-Default Rate shall be payable
      on demand. 

     

    (d) [intentionally
      omitted]

     

    (e) LIBOR
      Option.

     

    (i) Interest
      and Interest Payment Dates.
      In lieu
      of having interest charged at the rate based upon the Reference Rate, the
      Borrower shall have the option (the “LIBOR
      Option”)
      to
      have interest on all or a portion of the Loans be charged at a rate of interest
      based upon the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on
      the
      earliest of (A) the last day of the Interest Period applicable thereto, (B)
      the
      occurrence of an Event of Default in consequence of which the Required Lenders
      or Collateral Agent on behalf thereof elect to accelerate the maturity of all
      or
      any portion of the Obligations, or (C) termination of this Agreement
      pursuant to the terms hereof. On the last day of each applicable Interest
      Period, unless the Borrower properly has exercised the LIBOR Option with respect
      thereto, the interest rate applicable to such LIBOR Rate Loan automatically
      shall convert to the rate of interest then applicable to Reference Rate Loans
      of
      the same type hereunder. At any time that an Event of Default has occurred
      and
      is continuing, the Borrower no longer shall have the option to request that
      Loans bear interest at the LIBOR Rate and Administrative Agent shall have the
      right to convert the interest rate on all outstanding LIBOR Rate Loans to the
      rate then applicable to Reference Rate Loans hereunder.

     

    (ii) LIBOR
      Election.

     

    (A) The
      Borrower may, at any time and from time to time, so long as no Event of Default
      has occurred and is continuing, elect to exercise the LIBOR Option by notifying
      Administrative Agent prior to 11:00 a.m. (New York time) at least 3 Business
      Days prior to the commencement of the proposed Interest Period (the
“LIBOR
      Deadline”).
      Notice of the Borrower’s election of the LIBOR Option for a permitted portion of
      the Loans and an Interest Period pursuant to this Section shall be made by
      delivery to Administrative Agent of a LIBOR Notice received by Administrative
      Agent before the LIBOR Deadline. Promptly upon its receipt of each such LIBOR
      Notice, Administrative Agent shall provide a copy thereof to each of the Lenders
      having a Commitment of the type to which such LIBOR Notice relates.

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

     

    (B) Each
      LIBOR Notice shall be irrevocable and binding on the Borrower. In connection
      with each LIBOR Rate Loan, the Borrower shall indemnify, defend, and hold
      Administrative Agent and the Lenders harmless against any loss, cost, or expense
      incurred by Administrative Agent or any Lender as a result of (1) the payment
      of
      any principal of any LIBOR Rate Loan other than on the last day of an Interest
      Period applicable thereto (including as a result of an Event of Default), (2)
      the conversion of any LIBOR Rate Loan other than on the last day of the Interest
      Period applicable thereto, or (3) the failure to borrow, convert, continue
      or
      prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered
      pursuant hereto (such losses, costs, and expenses, collectively, “Funding
      Losses”).
      Funding Losses shall, with respect to Administrative Agent or any Lender, be
      deemed to equal the amount determined by Administrative Agent or such Lender
      to
      be the excess, if any, of (x) the amount of interest that would have accrued
      on
      the principal amount of such LIBOR Rate Loan had such event not occurred, at
      the
      LIBOR Rate that would have been applicable thereto, for the period from the
      date
      of such event to the last day of the then current Interest Period therefor
      (or,
      in the case of a failure to borrow, convert or continue, for the period that
      would have been the Interest Period therefor), minus (y) the amount of interest
      that would accrue on such principal amount for such period at the interest
      rate
      which Administrative Agent or such Lender would be offered were it to be
      offered, at the commencement of such period, Dollar deposits of a comparable
      amount and period in the London interbank market. A certificate of
      Administrative Agent or a Lender delivered to the Borrower setting forth any
      amount or amounts that Administrative Agent or such Lender is entitled to
      receive pursuant to this Section shall be conclusive absent manifest
      error.

     

    (C) The
      Borrower shall have not more than 3 LIBOR Rate Loans in effect at any given
      time. The Borrower only may exercise the LIBOR Option for LIBOR Rate Loans
      of at
      least $1,000,000 and integral multiples of $100,000 in excess thereof.

     

    (iii) Conversion.
      The
      Borrower may convert LIBOR Rate Loans to Reference Rate Loans at any time;
      provided,
      however,
      that in
      the event that LIBOR Rate Loans are converted or prepaid on any date that is
      not
      the last day of the Interest Period applicable thereto, including as a result
      of
      any automatic prepayment through the required application by Administrative
      Agent of proceeds of Collateral in accordance with Section
      4.04
      or for
      any other reason, including early termination of the term of this Agreement
      or
      acceleration of all or any portion of the Obligations pursuant to the terms
      hereof, the Borrower shall indemnify, defend, and hold Administrative Agent
      and
      the Lenders and their participants harmless against any and all Funding Losses
      in accordance with subsection (ii) above.

     

    
      
        
        

      

      
        -33-

        
          

        

      

      
        
        

      

    

     

    (iv) Special
      Provisions Applicable to LIBOR Rate.

     

    (A) The
      LIBOR
      Rate may be adjusted by Administrative Agent with respect to any Lender on
      a
      prospective basis to take into account any additional or increased costs to
      such
      Lender of maintaining or obtaining any eurodollar deposits or increased costs
      due to changes in applicable law occurring subsequent to the commencement of
      the
      then applicable Interest Period, including changes in tax laws (except changes
      of general applicability in corporate income tax laws) and changes in the
      reserve requirements imposed by the Board of Governors of the Federal Reserve
      System (or any successor), excluding the Reserve Percentage, which additional
      or
      increased costs would increase the cost of funding loans bearing interest at
      the
      LIBOR Rate. In any such event, the affected Lender shall give the Borrower
      and
      Administrative Agent notice of such a determination and adjustment and
      Administrative Agent promptly shall transmit the notice to each other Lender
      and, upon its receipt of the notice from the affected Lender, the Borrower
      may,
      by notice to such affected Lender (1) require such Lender to furnish to the
      Borrower a statement setting forth the basis for adjusting such LIBOR Rate
      and
      the method for determining the amount of such adjustment, or (2) repay the
      LIBOR
      Rate Loans with respect to which such adjustment is made (together with any
      amounts due under subsection (ii)(B) above).

     

    (B)
      In
      the event that any change in market conditions or any law, regulation, treaty,
      or directive, or any change therein or in the interpretation of application
      thereof, shall at any time after the date hereof, in the reasonable opinion
      of
      any Lender, make it unlawful or impractical for such Lender to fund or maintain
      LIBOR Rate Loans or to continue such funding or maintaining, or to determine
      or
      charge interest rates at the LIBOR Rate, such Lender shall give notice of such
      changed circumstances to Administrative Agent and the Borrower and
      Administrative Agent promptly shall transmit the notice to each other Lender
      and
      (1) in the case of any LIBOR Rate Loans of such Lender that are outstanding,
      the
      date specified in such Lender’s notice shall be deemed to be the last day of the
      Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate
      Loans
      of such Lender thereafter shall accrue interest at the rate then applicable
      to
      Reference Rate Loans, and (2) the Borrower shall not be entitled to elect the
      LIBOR Option until such Lender determines that it would no longer be unlawful
      or
      impractical to do so.

     

    (v) No
      Requirement of Matched Funding.
      Anything to the contrary contained herein notwithstanding, neither
      Administrative Agent, nor any Lender, nor any of their participants, is required
      actually to acquire eurodollar deposits to fund or otherwise match fund any
      Obligation as to which interest accrues at the LIBOR Rate. The provisions of
      this Section shall apply as if each Lender or its participants had match funded
      any Obligation as to which interest is accruing at the LIBOR Rate by acquiring
      eurodollar deposits for each Interest Period in the amount of the LIBOR Rate
      Loans.

     

    
      
        
        

      

      
        -34-

        
          

        

      

      
        
        

      

    

     

    (f) Interest
      Payment in respect of Reference Rate Loans.
      Interest on each Reference Rate Loan shall be payable monthly, in arrears,
      on
      the first day of each month, commencing on the first day of the month following
      the month in which such Loan is made and at maturity (whether upon demand,
      by
      acceleration or otherwise). The Borrower hereby authorizes the Administrative
      Agent to, and the Administrative Agent may, from time to time, charge the Loan
      Account pursuant to Section 4.02
      with the
      amount of any interest payment due hereunder.

     

    (g) General.
      All
      interest shall be computed on the basis of a year of 360 days for the actual
      number of days, including the first day but excluding the last day,
      elapsed.

     

    Section
      2.05 Reduction
      of Commitments; Prepayment of Loans.

     

    (a) Reduction
      of Commitments.

     

    (i) Revolving
      Credit Commitments.
      The
      Total Revolving
      Credit Commitment
      shall
      terminate on the Final Maturity Date. The Borrower may, subject to the terms
      of
Section
      2.05(b)(iii),
      reduce
      the Total Revolving
      Credit Commitment
      to an
      amount (which may be zero) not less than the sum of (A) the aggregate
      unpaid principal amount of all Revolving Loans then outstanding, and
      (B) the aggregate principal amount of all Revolving Loans not yet made as
      to which a Notice of Borrowing has been given by the Borrower under Section 2.02.
      Each
      such reduction shall be in an amount which is an integral multiple of $1,000,000
      (unless the Total Revolving
      Credit Commitment
      in
      effect immediately prior to such reduction is less than $1,000,000), shall
      be
      made by providing not less than 5 Business Days prior written notice to the
      Administrative Agent and shall be irrevocable. Once reduced, the Total
Revolving
      Credit Commitment
      may not
      be increased. Each such reduction of the Total Revolving
      Credit Commitment
      shall
      reduce the Revolving
      Credit Commitment
      of each
      Lender proportionately in accordance with its Pro Rata Share
      thereof.

     

    (ii) Term
      Loan.
      The
      Total Term Loan Commitment shall terminate upon the making of the Term Loan
      on
      the Effective Date.

     

    (b) Optional
      Prepayment.

     

    (i) Revolving
      Loans.
      Subject
      to the terms of subsection (iii)
      below,
      the Borrower may prepay the principal of any Revolving Loan, in whole or in
      part.

     

    (ii) Term
      Loan.
      Subject
      to the terms of subsection
      (iii)
      below,
      the Borrower may, upon at least 5 Business Days prior written notice to the
      Administrative Agent, prepay the principal of the Term Loan, in whole or in
      part. Each prepayment made pursuant to this Section
      2.05(b)(ii)
      shall be
      accompanied by the payment of accrued interest to the date of such payment
      on
      the amount prepaid. Each such prepayment shall be applied against the remaining
      installments of principal due on the Term Loan in the inverse order of
      maturity.

     

    
      
        
        

      

      
        -35-

        
          

        

      

      
        
        

      

    

     

    (iii) Prepayment
      Premium.
      In the
      event of (A) repayment in full of the Obligations and termination of the Total
      Revolving Credit Commitment, or (B) repayment in part of the Obligations or
      reduction of the Total Revolving Credit Commitment, in each case at any time
      prior to March 28, 2009 for any reason (any such repayment and reduction, a
      “Designated
      Repayment”),
      including, without limitation, any such actions resulting from (1) any mandatory
      reduction (provided,
      that,
      with respect to mandatory prepayments pursuant to Section
      2.05(c)
      of the
      Financing Agreement, only in connection with any mandatory prepayment pursuant
      to Section
      2.05(c)(ii),
      Section
      2.05(c)(v)
      (solely
      with respect to the proceeds of any Disposition of all or substantially all
      of
      the assets of the Loan Parties), Section
      2.05(c)(vi),
      or
Section
      2.05(c)(vii)
      of the
      Financing Agreement) or voluntary reduction of the Total Revolving Credit
      Commitment, (2) the acceleration of the Obligations after the occurrence and
      during the continuation of an Event of Default (including, without limitation,
      an Event of Default resulting from an Insolvency Proceeding), (3) any sale
      of
      Collateral (including, without limitation, any such sale by foreclosure or
      in an
      Insolvency Proceeding), or (4) the restructure, reorganization, or compromise
      of
      the Obligations by the confirmation of a plan of reorganization or any other
      plan of compromise, restructure, or arrangement in any Insolvency Proceeding,
      then, in view of the impracticability and extreme difficulty of ascertaining
      the
      actual amount of damages to the Agents and the Lenders or profits lost by the
      Agents and the Lenders as a result of such Designated Repayment, and by mutual
      agreement of the parties as to a reasonable estimation and calculation of the
      lost profits or damages of the Agents and the Lenders, a prepayment premium,
      measured as of the date of such Designated Repayment, equal to (x) with respect
      to any Designated Repayment from and including the Effective Date up to, but
      not
      including, the first anniversary of the Effective Date, 1.0% times
      the sum
      of (i) the amount of the Term Loan that is repaid plus (ii) the amount that
      the
      Total Revolving Credit Commitment is reduced on such date, (y) with respect
      to
      any Designated Repayment from and including the first anniversary of the
      Effective Date up to, but not including, the second anniversary of the Effective
      Date, 0.5% times
      the sum
      of (i) the amount of the Term Loan that is repaid plus (ii) the amount that
      the
      Total Revolving Credit Commitment is reduced on such date, and (z) from and
      after the date that is the second anniversary of the Effective Date, zero;
      provided,
      however,
      that
      the proceeding prepayment premium shall not apply to partial repayment of the
      Obligations or partial reduction of the Total Revolving Credit Commitment from
      excess cash generated by the Borrower solely and exclusively in the Borrower’s
      ordinary course of business. 

     

    (c) Mandatory
      Prepayment.

     

    (i) The
      Borrower will immediately prepay the Revolving Loans at any time when the
      aggregate principal amount of all Revolving Loans exceeds the lesser of (A)
      the
      Total Revolving Credit Commitment, and (B) the Borrowing Base, to the full
      extent of any such excess. On each day that any Revolving Loans are outstanding,
      the Borrower shall hereby be deemed to represent and warrant to the Agents
      and
      the Lenders that the Borrowing Base in effect on such day equals or exceeds
      the
      aggregate principal amount of all Revolving Loans then outstanding.

     

    (ii) The
      Borrower will immediately prepay the outstanding principal amount of the Term
      Loan in the event that the Total Revolving Credit Commitment is terminated
      for
      any reason.

     

    (iii) [intentionally
      omitted]

     

    
      
        
        

      

      
        -36-

        
          

        

      

      
        
        

      

    

     

    (iv) Within
      10
      days of delivery to the Agents and the Lenders of audited annual financial
      statements pursuant to Section 7.01(a)(ii),
      commencing with the delivery to the Agents and the Lenders of the financial
      statements for the Fiscal Year ended October 31, 2007 or, if such financial
      statements are not delivered to the Agents and the Lenders on the date such
      statements are required to be delivered pursuant to Section 7.01(a)(ii),
      10 days
      after the date such statements are required to be delivered to the Agents and
      the Lenders pursuant to Section 7.01(a)(ii),
      the
      Borrower shall, if such financial statements demonstrate that, for the
      applicable period, the ratio of Consolidated Funded Indebtedness of the Borrower
      and Guarantors to Consolidated EBITDA less Capital Expenditures is greater
      than
      or equal to 2.0 to 1.0, prepay the outstanding principal amount of the Loans
      in
      an amount equal to 50.0% of the Excess Cash Flow of the Borrower and Guarantors
      for such Fiscal Year.

     

    (v) Within
      10
      days of receipt of any proceeds of any Disposition by any Loan Party or its
      Subsidiaries (other than a Permitted Disposition of the type described in
      clauses (a), (d), (e), (f) and (g) of the definition of Permitted Dispositions),
      the Borrower shall prepay the outstanding principal amount of the Loans in
      an
      amount equal to 100% of the Net Cash Proceeds received by such Person in
      connection with such Disposition to the extent that the aggregate amount of
      Net
      Cash Proceeds received by all Loan Parties and their Subsidiaries (and not
      paid
      to the Administrative Agent as a prepayment of the Loans) shall exceed $250,000
      for all such Dispositions in any fiscal year. Nothing contained in this
subsection (v)
      shall
      permit any Loan Party or any of its Subsidiaries to make a Disposition of any
      property other than a Permitted Disposition.

     

    (vi) Upon
      the
      issuance or incurrence by any Loan Party or any of its Subsidiaries of any
      Indebtedness (other than Indebtedness referred to in clauses (a), (b), (c),
      (d), (e), (f), and (g) of the definition of Permitted Indebtedness), or the
      public or private offering by any Loan Party or any of its Subsidiaries of
      any
      shares of its Capital Stock, the Borrower shall prepay the Loans in an amount
      equal to 100% of the Net Cash Proceeds received by such Person in connection
      therewith. The provisions of this subsection
      (vi)
      shall
      not be deemed to be implied consent to any such issuance, incurrence or sale
      otherwise prohibited by the terms and conditions of this Agreement.

     

    (vii) Upon
      the
      receipt by any Loan Party or any of its Subsidiaries of any Extraordinary
      Receipts, the Borrower shall prepay the outstanding principal of the Loans
      in an
      amount equal to 100% of such Extraordinary Receipts, net of any reasonable
      expenses incurred in collecting such Extraordinary Receipts.

     

    (d) Application
      of Payments.

     

    (i) Each
      prepayment made pursuant to subsections (c)(iv),
      (c)(v), (c)(vi), and (c)(vii)
      above
      shall be applied, first, to the Term Loan, and second, to the Revolving Loans.
      Each such prepayment of the Term Loan shall be applied against the remaining
      installments of principal of the Term Loan in the inverse order of their
      maturity. Each prepayment of the Revolving Loans pursuant to the foregoing
      application of payments provision shall also reduce the Total Revolving Credit
      Commitment by an equivalent amount and a reserve shall be imposed against the
      Borrowing Base in an equivalent amount.

     

    
      
        
        

      

      
        -37-

        
          

        

      

      
        
        

      

    

     

    (ii) The
      foregoing to the contrary notwithstanding, Borrower shall not be required to
      make a prepayment otherwise required pursuant to Section
      2.05(c)(v)
      or
Section
      2.05(c)(vii)
      with
      Reinvestment Eligible Funds so long as: (A) no Default or Event of Default
      has
      occurred and is continuing on the date such Person receives such Reinvestment
      Eligible Funds or on the date such amounts are to be released to Borrower
      pursuant to this Section
      2.05(d)(ii),
      (B) in
      the case of Reinvestment Eligible Funds constituting proceeds of condemnation
      or
      casualty insurance, the Borrower delivers a notice (a “Reinvestment
      Notice”)
      within
      10 days from the date that the applicable Person receives the monies
      constituting such Reinvestment Eligible Funds notifying the Agents of the intent
      of the applicable Person to use such Reinvestment Eligible Funds (1) to repair,
      restore, or replace the assets that were the subject of the Disposition,
      casualty or condemnation giving rise to such amounts with assets of equal or
      greater fair market value which will be useful in the conduct of their business
      in accordance with past practice, (2) within the period specified in such
      notice, which period shall not exceed the earlier of (x) 180 days after the
      receipt of such Reinvestment Eligible Funds by the applicable Loan Party or
      its
      Subsidiary and (y) the Final Maturity Date, and (C) pending the reinvestment
      described in clause (B)(1) above, such Reinvestment Eligible Amounts are
      deposited in a cash collateral account over which Collateral Agent (on behalf
      of
      the Lenders) has a perfected first-priority Lien. If all or any portion of
      such
      Reinvestment Eligible Funds are not used in accordance with the preceding
      sentence within the period specified in the Reinvestment Notice, the remaining
      portion shall be applied to the Loans in accordance with Section
      2.05(d)
      on the
      last day of such specified period. 

     

    (e) Interest
      and Fees.
      Any
      prepayment made pursuant to this Section 2.05
      (other
      than prepayments made pursuant to subsections (c)(i),
      (c)(iii), and (c)(iv)
      of this
Section 2.05)
      shall
      be accompanied by the payment of accrued interest on the principal amount being
      prepaid to the date of prepayment, and if such prepayment would reduce the
      amount of the outstanding Loans to zero at a time when the Total Revolving
      Credit Commitment
      has been
      terminated, such prepayment shall be accompanied by the payment of all fees
      accrued to such date pursuant to Section 2.06.

     

    (f) Cumulative
      Prepayments.
      Except
      as otherwise expressly provided in this Section
      2.05,
      payments with respect to any subsection of this Section 2.05
      are in
      addition to payments made or required to be made under any other subsection
      of
      this Section 2.05.

     

    Section
      2.06 Fees.

     

    (a) Closing
      Fee.
      On the
      date this Agreement is executed and delivered by the Borrower (the “Execution
      and Delivery Date”), the Borrower shall pay to the Administrative Agent for the
      account of the Lenders, in accordance with their Pro Rata Shares, a
      non-refundable closing fee (the “Closing
      Fee”)
      equal
      to $700,000. Any portion of the Closing Fee paid prior to the Execution and
      Deliver Date shall be credited to the Borrower and reduce the amount owed by
      the
      Borrower under the Closing Fee.

     

    (b) Unused
      Line Fee.
      From
      and after the Effective Date and up to the Final Maturity Date, the Borrower
      shall pay to the Administrative Agent for the account of the Revolving Loan
      Lenders, in accordance with their Pro Rata Shares, an unused line fee (the
      “Unused
      Line Fee”),
      which
      shall accrue at the rate per annum of 0.375% on the excess, if any, of the
      Total
      Revolving Credit Commitment over the sum of the average principal amount of
      all
      Revolving Loans outstanding from time to time and shall be due and payable
      monthly in arrears on the first day of each month commencing April 1,
      2007.

     

    
      
        
        

      

      
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    (c) Loan
      Servicing Fee.
      From
      and after the Effective Date and until the later of (i) the Final Maturity
      Date
      and (ii) the date on which all Obligations are paid in full, the Borrower shall
      pay to the Administrative Agent for the account of the Collateral Agent, a
      non-refundable loan servicing fee (the “Loan
      Servicing Fee”)
      equal
      to $7,500 each quarter, which shall be due and payable on the Effective Date
      (payable ratably based on the number of days remaining in the calendar quarter
      in which the Effective Date occurs) and quarterly in advance thereafter on
      the
      first day of each calendar quarter commencing on April 1, 2007.

     

    Section
      2.07 Securitization.
      The
      Borrower hereby acknowledges that the Lenders and their Affiliates may sell
      or
      securitize the Loans (a “Securitization”)
      through the pledge of the Loans as collateral security for loans to the Lenders
      or their Affiliates or through the sale of the Loans or the issuance of direct
      or indirect interests in the Loans, which loans to the Lenders or their
      Affiliates or direct or indirect interests will be rated by Moody’s, Standard
& Poor’s or one or more other rating agencies (the “Rating
      Agencies”).
      The
      Borrower shall cooperate with the Lenders and their Affiliates to effect the
      Securitization including by (a) amending this Agreement and the other Loan
      Documents, and executing such additional documents, as reasonably requested
      by
      the Lenders in connection with the Securitization, provided that
      (i) any such amendment or additional documentation does not impose material
      additional costs on the Borrower and (ii) any such amendment or additional
      documentation does not materially adversely affect the rights, or materially
      increase the obligations, of the Borrower under the Loan Documents or change
      or
      affect in a manner adverse to the Borrower the financial terms of the Loans,
      (b) providing such information as may be reasonably requested by the
      Lenders in connection with the rating of the Loans or the Securitization, and
      (c) providing in connection with any rating of the Loans a certificate
      (i) agreeing to indemnify the Lenders and their Affiliates, any of the
      Rating Agencies, or any party providing credit support or otherwise
      participating in the Securitization (collectively, the “Securitization
      Parties”)
      for
      any losses, claims, damages or liabilities (the “Liabilities”)
      to
      which the Lenders, their Affiliates or such Securitization Parties may become
      subject insofar as the Liabilities arise out of or are based upon any untrue
      statement or alleged untrue statement of any material fact contained in any
      Loan
      Document or in any writing delivered by or on behalf of any Loan Party to any
      Agent or Lender in connection with any Loan Document or arise out of or are
      based upon the omission or alleged omission to state therein a material fact
      required to be stated therein, or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading, and such indemnity shall survive any transfer by the Lenders or
      their successors or assigns of the Loans and (ii) agreeing to reimburse the
      Agents, the Lenders and their Affiliates for any legal or other expenses
      reasonably incurred by such Persons in connection with defending the
      Liabilities.

     

    Section
      2.08 Taxes.

     

    (a) Any
      and
      all payments by any Loan Party hereunder or under any other Loan Document shall
      be made free and clear of and without deduction for any and all present or
      future taxes, levies, imposts, deductions, charges or withholdings, and all
      liabilities with respect thereto, excluding taxes imposed on the net income
      of
      any Agent or any Lender (or any transferee or assignee thereof, including a
      participation holder (any such entity, a “Transferee”))
      by
      the jurisdiction in which such Person is organized or has its principal lending
      office (all such nonexcluded taxes, levies, imposts, deductions, charges
      withholdings and liabilities, collectively or individually, “Taxes”).
      If
      any Loan Party shall be required to deduct any Taxes from or in respect of
      any
      sum payable hereunder to any Agent or any Lender (or any Transferee), (i) the
      sum payable shall be increased by the amount (an “additional
      amount”)
      necessary so that after making all required deductions (including deductions
      applicable to additional sums payable under this Section
      2.08)
      such
      Agent or such Lender (or such Transferee) shall receive an amount equal to
      the
      sum it would have received had no such deductions been made, (ii) such Loan
      Party shall make such deductions and (iii) such Loan Party shall pay the full
      amount deducted to the relevant Governmental Authority in accordance with
      applicable law.

     

    
      
        
        

      

      
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    (b) In
      addition, each Loan Party agrees to pay to the relevant Governmental Authority
      in accordance with applicable law any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies that
      arise from any payment made hereunder or from the execution, delivery or
      registration of, or otherwise with respect to, this Agreement or any other
      Loan
      Document (“Other
      Taxes”).
      Each
      Loan Party shall deliver to each Agent and each Lender official receipts in
      respect of any Taxes or Other Taxes payable hereunder promptly after payment
      of
      such Taxes or Other Taxes.

     

    (c) The
      Loan
      Parties hereby jointly and severally indemnify and agree to hold each Agent
      and
      each Lender harmless from and against Taxes and Other Taxes (including Taxes
      and
      Other Taxes imposed on any amounts payable under this Section
      2.08)
      paid by
      such Person, whether or not such Taxes or Other Taxes were correctly or legally
      asserted. Such indemnification shall be paid within 10 days from the date on
      which any such Person makes written demand therefore specifying in reasonable
      detail the nature and amount of such Taxes or Other Taxes.

     

    (d) Each
      Lender that is organized under the laws of a jurisdiction outside the United
      States (a “Non-U.S.
      Lender”)
      agrees
      that it shall, no later than the Effective Date (or, in the case of a Lender
      which becomes a party hereto pursuant to Section
      12.07
      after
      the Effective Date, promptly after the date upon which such Lender becomes
      a
      party hereto) deliver to the Agents (or, in the case of a participant, to the
      Lender granting the participation only) a properly completed and duly executed
      copy of either U.S. Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY
      or
      any subsequent versions thereof or successors thereto, in each case claiming
      complete exemption from, or reduced rate of, U.S. Federal withholding tax and
      payments of interest hereunder. In addition, in the case of a Non-U.S. Lender
      claiming exemption from U.S. Federal withholding tax under Section 871(h) or
      881(c) of the IRC, such Non-U.S. Lender hereby represents to the Agents and
      the
      Borrower that such Non-U.S. Lender is not a bank for purposes of Section 881(c)
      of the IRC, is not a 10-percent shareholder (within the meaning of Section
      871(h)(3)(B) of the IRC) of the Borrower and is not a CFC related to the
      Borrower (within the meaning of Section 864(d)(4) of the IRC), and such Non-U.S.
      Lender agrees that it shall promptly notify the Agents in the event any such
      representation is no longer accurate. Such forms shall be delivered by each
      Non-U.S. Lender on or before the date it becomes a party to this Agreement
      and
      on or before the date, if any, such Non-U.S. Lender changes its applicable
      lending office by designating a different lending office (a “New
      Lending Office”).
      In
      addition, such Non-U.S. Lender shall deliver such forms within 20 days after
      receipt of a written request therefor from any Agent, the assigning Lender
      or
      the Lender granting a participation, as applicable. Notwithstanding any other
      provision of this Section
      2.08,
      a
      Non-U.S. Lender shall not be required to deliver any form pursuant to this
      Section
      2.08(d)
      that
      such Non-U.S. Lender is not legally able to deliver.

     

    
      
        
        

      

      
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    (e) The
      Loan
      Parties shall not be required to indemnify any Non-U.S. Lender, or pay any
      additional amounts to any Non-U.S. Lender, in respect of United States Federal
      withholding tax pursuant to this Section
      2.08
      to the
      extent that (i) the obligation to withhold amounts with respect to United States
      Federal withholding tax existed on the date such Non-U.S. Lender became a party
      to this Agreement (or, in the case of a Transferee that is a participation
      holder, on the date such participation holder became a Transferee hereunder)
      or,
      with respect to payments to a New Lending Office, the date such Non-U.S. Lender
      designated such New Lending Office with respect to a Loan; provided,
      however,
      that
      this clause (i) shall not apply to the extent the indemnity payment or
      additional amounts any Transferee, or Lender (or Transferee) through a New
      Lending Office, would be entitled to receive (without regard to this clause
      (i))
      do not exceed the indemnity payment or additional amounts that the Person making
      the assignment, participation or transfer to such Transferee, or Lender (or
      Transferee) making the designation of such New Lending Office, would have been
      entitled to receive in the absence of such assignment, participation, transfer
      or designation, or (ii) the obligation to pay such additional amounts would
      not
      have arisen but for a failure by such Non-U.S. Lender to comply with the
      provisions of clause (d) above.

     

    (f) The
      obligations of the Loan Parties under this Section
      2.08
      shall
      survive the termination of this Agreement and the payment of the Loans and
      all
      other amounts payable hereunder.

     

    ARTICLE
      III

     

    [INTENTIONALLY
      OMITTED]

     

    ARTICLE
      IV

     

    FEES,
      PAYMENTS AND OTHER COMPENSATION

     

    Section
      4.01 Audit
      and Collateral Monitoring Fees.
      The
      Borrower acknowledges that pursuant to Section
      7.01(f),
      representatives of the Agents may visit any Loan Party or conduct audits,
      inspections or field examinations of any Loan Party and valuations or appraisals
      of any or all of the Collateral or business or enterprise valuations of the
      Loan
      Parties at any time and from time to time in a manner so as to not unduly
      disrupt the business of such Loan Party; provided,
      however,
      that
      the preceding shall be limited to the Borrower’s headquarters sites and any
      owned or leased real property where material books and records of the Borrower
      or its Subsidiaries are retained. The Borrower agrees to pay (i) $1,750 per
      day
      per examiner plus the examiner’s out-of-pocket costs and reasonable expenses
      incurred in connection with all such visits, audits, inspections, valuations,
      and field examinations and (ii) the cost of such audits, appraisals and
      business valuations (including enterprise valuation appraisals) conducted by
      third party auditors or appraisers on behalf of the Agents;
      provided,
      however,
      that so
      long as no Event of Default has occurred and is continuing, the Borrower shall
      be obligated to pay the costs for the obligations specified in clauses (i)
      and
      (ii) hereof only one time per year. 

     

    
      
        
        

      

      
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    Section
      4.02 Payments;
      Computations and Statements.
      

     

    (a) The
      Borrower will make each payment under this Agreement not later than
      12:00 noon (New York City time) on the day when due, in lawful money of the
      United States of America and in immediately available funds, to the
      Administrative Agent’s Account. All payments received by the Administrative
      Agent after 12:00 noon (New York City time) on any Business Day will be credited
      to the Loan Account on the next succeeding Business Day. All payments shall
      be
      made by the Borrower without set-off, counterclaim, deduction or other defense
      to the Agents and the Lenders. Except as provided in Section 2.02,
      after
      receipt, the Administrative Agent will promptly thereafter cause to be
      distributed like funds relating to the payment of principal ratably to the
      Lenders in accordance with their Pro Rata Shares and like funds relating to
      the
      payment of any other amount payable to any Lender to such Lender, in each case
      to be applied in accordance with the terms of this Agreement, provided that
      the
      Administrative Agent will cause to be distributed all interest and fees received
      from or for the account of the Borrower not less than once each month and in
      any
      event promptly after receipt thereof. The Lenders and the Borrower hereby
      authorize the Administrative Agent to, and the Administrative Agent shall,
      from
      time to time, charge the Loan Account of the Borrower with any amount due and
      payable by the Borrower under any Loan Document. Each of the Lenders and the
      Borrower agrees that the Administrative Agent shall have the right to make
      such
      charges whether or not any Default or Event of Default shall have occurred
      and
      be continuing or whether any of the conditions precedent in Section 5.02
      have
      been satisfied. Any amount charged to the Loan Account of the Borrower shall
      be
      deemed a Revolving Loan hereunder made by the Revolving
      Loan
      Lenders
      to the Borrower, funded by the Administrative Agent on behalf of the
Revolving
      Loan
      Lenders
      and subject to Section 2.02
      of this
      Agreement. The Lenders and the Borrower confirm that any charges which the
      Administrative Agent may so make to the Loan Account of the Borrower as herein
      provided will be made as an accommodation to the Borrower
      and
      solely at the Administrative Agent’s discretion, provided that the
      Administrative Agent shall from time to time upon the request of the Collateral
      Agent, charge the Loan Account of the Borrower with any amount due and payable
      under any Loan Document. Whenever any payment to be made under any such Loan
      Document shall be stated to be due on a day other than a Business Day, such
      payment shall be made on the next succeeding Business Day and such extension
      of
      time shall in such case be included in the computation of interest or fees,
      as
      the case may be. All computations of fees shall be made by the Administrative
      Agent on the basis of a year of 360 days for the actual number of days
      (including the first day but excluding the last day) occurring in the period
      for
      which such fees are payable. Each determination by the Administrative Agent
      of
      an interest rate or fees hereunder shall be conclusive and binding for all
      purposes in the absence of manifest error.

     

    (b) The
      Administrative Agent shall provide the Borrower, promptly after the end of
      each
      calendar month, a summary statement (in the form from time to time used by
      the
      Administrative Agent) of the opening and closing daily balances in the Loan
      Account of the Borrower during such month, the amounts and dates of all Loans
      made to the Borrower during such month, the amounts and dates of all payments
      on
      account of the Loans to the Borrower during such month and the Loans to which
      such payments were applied, the amount of interest accrued on the Loans to
      the
      Borrower during such month, the amount of charges to the Loan Account, and
      the
      amount and nature of any charges to the Loan Account made during such month
      on
      account of fees, commissions, expenses and other Obligations. All entries on
      any
      such statement shall be presumed to be correct and, 30 days after the same
      is
      sent, shall be final and conclusive absent manifest error.

     

    
      
        
        

      

      
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    Section
      4.03 Sharing
      of Payments, Etc.
      Except
      as provided in Section 2.02,
      if any
      Lender shall obtain any payment (whether voluntary, involuntary, through the
      exercise of any right of set-off, or otherwise) on account of any Obligation
      in
      excess of its ratable share of payments on account of similar obligations
      obtained by all the Lenders, such Lender shall forthwith purchase from the
      other
      Lenders such participations in such similar obligations held by them as shall
      be
      necessary to cause such purchasing Lender to share the excess payment ratably
      with each of them; provided,
      however,
      that if
      all or any portion of such excess payment is thereafter recovered from such
      purchasing Lender, such purchase from each Lender shall be rescinded and such
      Lender shall repay to the purchasing Lender the purchase price to the extent
      of
      such recovery together with an amount equal to such Lender’s ratable share
      (according to the proportion of (i) the amount of such Lender’s required
      repayment to (ii) the total amount so recovered from the purchasing Lender)
      of
      any interest or other amount paid by the purchasing Lender in respect of the
      total amount so recovered. The Borrower agrees that any Lender so purchasing
      a
      participation from another Lender pursuant to this Section
      4.03
      may, to
      the fullest extent permitted by law, exercise all of its rights (including
      the
      Lender’s right of set-off) with respect to such participation as fully as if
      such Lender were the direct creditor of the Borrower in the amount of such
      participation.

     

    Section
      4.04 Apportionment
      of Payments.
      Subject
      to Section 2.02
      and to
      any written agreement among the Agents or the Lenders:

     

    (a) all
      payments of principal and interest in respect of outstanding Loans, all payments
      of fees (other than the audit and collateral monitoring fees provided for in
      Section 4.01)
      and all
      other payments in respect of any other Obligations, shall be allocated by the
      Administrative Agent among such of the Lenders as are entitled thereto, in
      proportion to their respective Pro Rata Shares or otherwise as provided herein
      or, in respect of payments not made on account of Loans as designated by the
      Person making payment when the payment is made.

     

    (b) After
      the
      occurrence and during the continuance of an Event of Default, the Administrative
      Agent may, and upon the direction of the Required Lenders shall, apply all
      payments in respect of any Obligations and all proceeds of the Collateral,
      subject to the provisions of this Agreement, (i) first,
      ratably
      to pay the Obligations in respect of any fees, expense reimbursements,
      indemnities and other amounts then due to the Agents until paid in full;
      (ii) second,
      to pay
      interest due in respect of the Collateral Agent Advances until paid in full;
      (iii) third,
      to pay
      principal of the Collateral Agent Advances until paid in full;
      (iv) fourth,
      ratably
      to pay any fees and indemnities then due to the Revolving
      Loan
      Lenders
      until paid in full; (v) fifth,
      ratably
      to pay interest due in respect of the Revolving Loans until paid in full;
      (vi) sixth,
      ratably
      to pay principal of the Revolving Loans until paid in full;
      (vi) seventh,
      ratably
      to pay any fees and indemnities then due to the Term Loan
      Lenders
      until paid in full; (viii) eighth,
      ratably
      to pay interest due in respect of the Term Loan until paid in full;
      (ix) ninth,
      ratably
      to pay principal of the Term Loan until paid in full, and (x) tenth,
      to the
      ratable payment of all other Obligations then due and payable until paid in
      full.

     

    
      
        
        

      

      
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    (c) In
      each
      instance, so long as no Event of Default has occurred and is continuing,
Section 4.04(b)
      shall
      not be deemed to apply to any payment by the Borrower specified by the Borrower
      to the Administrative Agent to be for the payment of Term Loan Obligations
      then
      due and payable under any provision of this Agreement or the prepayment of
      all
      or part of the principal of the Term Loan in accordance with the terms and
      conditions of Section 2.05.

     

    (d) For
      purposes of Section
      4.04(b),
      (other
      than clause (x) thereof) “paid in full” means with respect to any Obligations,
      payment of all amounts owing under the Loan Documents in respect of such
      Obligations, including fees, interest, default interest, interest on interest,
      expense reimbursements and indemnities, specifically including in each case
      any
      of the foregoing which would accrue after the commencement of any Insolvency
      Proceeding irrespective of whether a claim is allowable in such Insolvency
      Proceeding, except to the extent that default or overdue interest (but not
      any
      other interest) and fees, each arising from or related to a default, are
      disallowed in any Insolvency Proceeding; provided,
      however,
      that
      for purposes of such clause (x), “paid in full” means with respect to any
      Obligations, payment of all amounts owing under the Loan Documents in respect
      of
      such Obligations, including fees, interest, default interest, interest on
      interest, expense reimbursements and indemnities, specifically including in
      each
      case any of the foregoing which would accrue after the commencement of any
      Insolvency Proceeding irrespective of whether a claim is allowable in such
      Insolvency Proceeding.

     

    (e) In
      the
      event of a direct conflict between the priority provisions of this Section 4.04
      and
      other provisions contained in any other Loan Document, it is the intention
      of
      the parties hereto that both such priority provisions in such documents shall
      be
      read together and construed, to the fullest extent possible, to be in concert
      with each other. In the event of any actual, irreconcilable conflict that cannot
      be resolved as aforesaid, the terms and provisions of this Section 4.04
      shall
      control and govern.

     

    Section
      4.05 Increased
      Costs and Reduced Return.  

     

    (a)  If
      any Lender or any Agent shall have determined that the adoption or
      implementation after the Effective Date, or any change after the Effective
      Date
      in, any law, rule, treaty or regulation, or any policy, guideline or directive
      of, or any change after the Effective Date in, the interpretation or
      administration thereof by, any court, central bank or other administrative
      or
      Governmental Authority, or compliance by any Lender or any Agent or any Person
      controlling any such Lender or any such Agent with any directive of, or
      guideline from, any central bank or other Governmental Authority or the
      introduction of, or change in, any accounting principles applicable to any
      Lender, any Agent or any Person controlling any such Lender, any such Agent
      (in
      each case, whether or not having the force of law) (each, a “Change
      in Law”),
      shall
      (i) subject any Lender, any Agent or any Person controlling any such Lender
      or any such Agent to any tax, duty or other charge with respect to this
      Agreement or any Loan made by such Lender or such Agent or change the basis
      of
      taxation of payments to any Lender, any Agent or any Person controlling any
      such
      Lender or any such Agent of any amounts payable hereunder (except for taxes
      on
      the overall net income of any Lender, any Agent or any Person controlling any
      such Lender or any such Agent), (ii) impose, modify or deem applicable any
      reserve, special deposit or similar requirement against any Loan, or against
      assets of or held by, or deposits with or for the account of, or credit extended
      by, any Lender, any Agent or any Person controlling any such Lender or any
      such
      Agent or (iii) impose on any Lender, any Agent or any Person controlling
      any such Lender or any such Agent any other condition regarding this Agreement
      or any Loan, and the result of any event referred to in clauses (i), (ii) or
      (iii) above shall be to increase the cost to any Lender or any Agent of making
      any Loan, or agreeing to make any Loan or to reduce any amount received or
      receivable by any Lender or any Agent hereunder, then, upon demand by any such
      Lender or any such Agent, the Borrower shall pay to such Lender or such Agent
      such additional amounts as will compensate such Lender, or such Agent for such
      increased costs or reductions in amount.

     

    
      
        
        

      

      
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    (b) If
      any
      Lender or any Agent shall have determined that any Change in Law either
      (i) affects or would affect the amount of capital required or expected to
      be maintained by any Lender, any Agent or any Person controlling such Lender
      or
      such Agent and any Lender or any Agent determines that the amount of such
      capital is increased as a direct or indirect consequence of any Loans made
      or
      maintained, any Lender’s, any Agent’s or any such other controlling Person’s
      other obligations hereunder, or (ii) has or would have the effect of
      reducing the rate of return on any Lender’s or any Agent’s any such other
      controlling Person’s capital to a level below that which such Lender, such Agent
      or such controlling Person could have achieved but for such circumstances as
      a
      consequence of any Loans made or maintained, or any agreement to make Loans,
      or
      such Lender’s, such Agent’s or such other controlling Person’s other obligations
      hereunder (in each case, taking into consideration, such Lender’s, or such
      Agent’s or such other controlling Person’s policies with respect to capital
      adequacy), then, upon demand by any Lender or any Agent, the Borrower shall
      pay
      to such Lender or such Agent from time to time such additional amounts as will
      compensate such Lender or such Agent for such cost of maintaining such increased
      capital or such reduction in the rate of return on such Lender’s or such Agent’s
      or such other controlling Person’s capital.

     

    (c) All
      amounts payable under this Section
      4.05
      shall
      bear interest from the date that is 10 days after the date of demand by any
      Lender or any Agent until payment in full to such Lender or such Agent at the
      Reference Rate. A certificate of such Lender or such Agent claiming compensation
      under this Section 4.05,
      specifying the event herein above described and the nature of such event shall
      be submitted by such Lender or such Agent to the Borrower, setting forth the
      additional amount due and an explanation of the calculation thereof, and such
      Lender’s or such Agent’s reasons for invoking the provisions of this
Section 4.05,
      and
      shall be final and conclusive absent manifest error.

     

    ARTICLE
      V

     

    CONDITIONS
      TO LOANS

     

    Section
      5.01 Conditions
      Precedent.
      The
      obligation of any Lender to make the initial Loans, is subject to the
      fulfillment, to the satisfaction of each Lender (the making of such initial
      extension of credit by any Lender being conclusively deemed to be its
      satisfaction or waiver of the following), of each of the conditions precedent
      set forth below:

     

    
      
        
        

      

      
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    (a) Payment
      of Fees; Amount of Requested Financing.
      

     

    (i) Fees.
      The
      Borrower shall have paid all fees, costs, expenses and taxes then payable
      pursuant to Sections
      2.06
      or
12.04.

     

    (ii) Requested
      Financing Amount.
      On the
      Effective Date, the aggregate outstanding Loans shall not be greater than (A)
      1.65 times
      the pro
      forma TTM EBITDA of the Borrower, and (B) 3.30 times
      the pro
      forma TTM EBITDA of the Borrower less their trailing twelve months’ pro forma
      Capital Expenditures (including capitalized software costs). In the event that
      the Borrower’s financial performance does not meet the requirements of both
      clause (A) and clause (B) of this subsection, then the Lenders shall not have
      any obligation to make any Loans hereunder.

     

    (b) Representations
      and Warranties; No Event of Default.
      The
      following statements shall be true and correct: (i) the representations and
      warranties contained in Article VI and in each other Loan Document,
      certificate or other writing delivered to any Agent or any Lender pursuant
      hereto or thereto on or prior to the Effective Date are true and correct in
      all
      material respects (except that such materiality qualifier shall not be
      applicable to any representations and warranties that already are qualified
      or
      modified by materiality in the text thereof) on and as of the Effective Date
      as
      though made on and as of such date (it being understood and agreed that any
      representation or warranty which by its terms is made as of a specified date
      shall be required to be true and correct in all material respects only as of
      such specified date) and (ii) no Default or Event of Default shall have
      occurred and be continuing on the Effective Date or would result from this
      Agreement or the other Loan Documents becoming effective in accordance with
      its
      or their respective terms.

     

    (c) Legality.
      The
      making of the initial Loans shall not contravene any law, rule or regulation
      applicable to any Agent or any Lender.

     

    (d) Delivery
      of Documents.
      The
      Collateral Agent shall have received on or before the Effective Date the
      following, each in form and substance satisfactory to the Collateral Agent
      and,
      unless indicated otherwise, dated the Effective Date:

     

    (i) a
      Security Agreement, duly executed by each Loan Party, together with the original
      stock certificates representing all of the stock of such Loan Party’s
      Subsidiaries and all intercompany promissory notes of such Loan Parties,
      accompanied by undated stock powers executed in blank and other proper
      instruments of transfer; 

     

    (ii) the
      Funds
      Flow Agreement, duly executed by each Loan Party,

     

    (iii) the
      Intercompany Subordination Agreement, duly executed by each Loan
      Party;

     

    (iv) a
      Filing
      Authorization Letter, duly executed by each Loan Party, together with
      appropriate financing statements duly filed in such office or offices as may
      be
      necessary or, in the opinion of the Collateral Agent, desirable to perfect
      the
      security interests purported to be created by each Security
      Agreement;

     

    
      
        
        

      

      
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    (v) certified
      copies of all effective financing statements which name as debtor any Loan
      Party
      and which are filed in the offices referred to in clause (iv) above,
      together with copies of such financing statements, none of which, except as
      otherwise agreed in writing by the Collateral Agent, shall cover any of the
      Collateral and the results of searches for any tax Lien and judgment Lien filed
      against such Person or its property, which results, except as otherwise agreed
      to in writing by the Collateral Agent, shall not show any such
      Liens;

     

    (vi) a
      copy of
      the resolutions of each Loan Party, certified as of the Effective Date by an
      Authorized Officer thereof, authorizing (A) the transactions contemplated
      by the Loan Documents to which such Loan Party is or will be a party, and
      (B) the execution, delivery and performance by such Loan Party of each Loan
      Document to which such Loan Party is or will be a party and the execution and
      delivery of the other documents to be delivered by such Person in connection
      herewith and therewith;

     

    (vii) a
      certificate of an Authorized Officer of each Loan Party, certifying the names
      and true signatures of the representatives of such Loan Party authorized to
      sign
      each Loan Document to which such Loan Party is or will be a party and the other
      documents to be executed and delivered by such Loan Party in connection herewith
      and therewith, together with evidence of the incumbency of such authorized
      officers;

     

    (viii) a
      certificate of the appropriate official(s) of the state of organization and
      each
      state of foreign qualification of each Loan Party certifying as to the
      subsistence in good standing of, and the payment of taxes by, such Loan Party
      in
      such states;

     

    (ix) a
      true
      and complete copy of the charter, certificate of formation, certificate of
      limited partnership or other publicly filed organizational document of each
      Loan
      Party certified as of a recent date not more than 30 days prior to the Effective
      Date by an appropriate official of the state of organization of such Loan Party
      which shall set forth the same complete name of such Loan Party as is set forth
      herein and the organizational number of such Loan Party, if an organized number
      is issued in such jurisdiction;

     

    (x) a
      copy of
      the charter and by-laws, limited liability company agreement, operating
      agreement, agreement of limited partnership or other organizational document
      of
      each Loan Party, together with all amendments thereto, certified as of the
      Effective Date by an Authorized Officer of such Loan Party;

     

    (xi) an
      opinion of Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P.,
      counsel to the Loan Parties, substantially in the form of Exhibit
      5.01(d)
      and as
      to such other matters as the Collateral Agent may reasonably
      request;

     

    (xii) a
      certificate of an Authorized Officer of each Loan Party, certifying as to the
      matters set forth in Section
      5.01(b);

     

    (xiii) a
      copy of
      the Financial Statements, together with a certificate of an Authorized Officer
      of the Borrower setting forth all existing Indebtedness, pending or threatened
      litigation or claims and other contingent liabilities of the Borrower and its
      Subsidiaries; 

     

    
      
        
        

      

      
        -47-

        
          

        

      

      
        
        

      

    

     

    (xiv) a
      copy of
      the financial projections described in Section
      6.01(g)(ii),
      which
      projections shall be satisfactory in form and substance to the
      Agents;

     

    (xv) a
      certificate of an Authorized Officer of the Borrower, setting forth in
      reasonable detail the calculations required to establish compliance, on a pro
      forma basis immediately after giving effect to the consummation of the
      Acquisition, with each of the financial covenants contained in Section
      7.03;

     

    (xvi) a
      certificate of an Authorized Officer of each Loan Party, certifying as to the
      solvency of such Loan Party, which certificate shall be satisfactory in form
      and
      substance to the Collateral Agent;

     

    (xvii) evidence
      of the insurance coverage required by Section 7.01
      and the
      terms of each Security Agreement, with such endorsements adding the Collateral
      Agent as a named insured or loss payee thereunder as the Collateral Agent may
      request and providing that such policy may be terminated or canceled (by the
      insurer or the insured thereunder) only upon 30 days prior written notice
      to the Collateral Agent and each such named insured or loss payee;

     

    (xviii) a
      certificate of an Authorized Officer of the Borrower, certifying the names
      and
      true signatures of the persons that are authorized to provide Notices of
      Borrowing, and all other notices under this Agreement and the other Loan
      Documents;

     

    (xix) a
      collateral access agreement, in form and substance satisfactory to the
      Collateral Agent, limited to the Borrower’s headquarters sites and any owned or
      leased real property where material books and records of the Borrower or its
      Subsidiaries are retained;

     

    (xx) copies
      of
      (a) the Acquisition Documents, and (b) the other Material Contracts as in effect
      on the Effective Date, certified as true and correct copies thereof by an
      Authorized Officer of the Borrower, together with a certificate of an Authorized
      Officer of the Borrower stating that such agreements remain in full force and
      effect and that none of the Loan Parties has breached or defaulted in any of
      its
      obligations under such agreements;

     

    (xxi) the
      Borrower shall have received all material licenses, approvals or evidence of
      other actions required by any Governmental Authority (including under HSR if
      applicable) in connection with the execution and delivery by the Borrower of
      the
      Acquisition Documents and with the consummation of the transactions contemplated
      thereby;

     

    (xxii) a
      termination and release agreement with respect to the Existing Credit Facility
      and all related documents, duly executed by the Loan Parties and the Existing
      Lender, together with a satisfaction of mortgage for each mortgage filed by
      the
      Existing Lender and termination statements for all financing statements filed
      by
      the Existing Lender and covering any portion of the Collateral;

     

    (xxiii) such
      depository account, blocked account, lockbox account and similar agreements
      and
      other documents, each in form and substance satisfactory to the Agents, as
      the
      Agents may request with respect to the Borrower’s cash management system;
      and

     

    
      
        
        

      

      
        -48-

        
          

        

      

      
        
        

      

    

     

    (xxiv) a
      certificate of an Authorized Officer of the Borrower, certifying that attached
      thereto are complete and correct copies of the Acquisition
      Agreement;

     

    (xxv) such
      other agreements, instruments, approvals, opinions and other documents, each
      satisfactory to the Collateral Agent in form and substance, as the Collateral
      Agent may reasonably request.

     

    (e) Material
      Adverse Effect.
      The
      Collateral Agent shall have determined, in its sole judgment, that no event
      or
      development shall have occurred since October 31, 2005 which could reasonably
      be
      expected to result in a Material Adverse Effect.

     

    (f) Consummation
      of Acquisition.
      The
      Collateral Agent shall have received (i) evidence reasonably satisfactory to
      it
      that the Acquisition shall have been consummated pursuant to the Acquisition
      Agreement (no provision of which shall have been amended or otherwise modified
      or waived in any material respect without the prior written consent of the
      Collateral Agent) (ii) a certificate of an Authorized Officer of the Borrower
      certifying (A) that all conditions precedent to the consummation of the
      Acquisition shall have been satisfied (other than the payment of the Purchase
      Price), and (B) that all material consents, approvals, authorizations (including
      any required by HSR), licenses, permits, entitlements and accreditations
      required in connection with the Acquisition Documents shall have been
      obtained.

     

    (g) [intentionally
      omitted]

     

    (h) Proceedings;
      Receipt of Documents.
      All
      proceedings in connection with the making of the initial Loans and the other
      transactions contemplated by this Agreement and the other Loan Documents, and
      all documents incidental hereto and thereto, shall be satisfactory to the
      Collateral Agent and its counsel, and the Collateral Agent and such counsel
      shall have received all such information and such counterpart originals or
      certified or other copies of such documents as the Collateral Agent or such
      counsel may reasonably request.

     

    (i) Management
      Reference Checks.
      The
      Collateral Agent shall have received satisfactory reference checks for key
      management of each Loan Party. 

     

    (j) Due
      Diligence.
      The
      Agents shall have completed their business and legal due diligence with respect
      to each Loan Party and the results thereof shall be acceptable to the Agents,
      in
      their sole and absolute discretion.

     

    (k) Consents.
      The
      Borrower shall have obtained all necessary or appropriate consents or approvals
      of the Gaming Authorities to the Acquisition, this Agreement and the
      transactions evidenced thereby or hereby. All such consents and approvals of
      the
      Gaming Authorities shall be provided to the Agents and be in form and substance
      satisfactory to the Agents.

     

    (l) Availability.
      After
      giving effect to all Loans to be made on the Effective Date, the Availability
      plus Qualified Cash shall not be less than $5,000,000. The Borrower shall
      deliver to the Collateral Agent a certificate of the chief financial officer
      of
      the Borrower certifying as to the calculation of Availability.

     

    
      
        
        

      

      
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    Section
      5.02 Conditions
      Precedent to All Loans.
      The
      obligation of any Agent or any Lender to make any Loan is subject to the
      fulfillment of each of the following conditions precedent:

     

    (a) Payment
      of Fees, Etc.
      The
      Borrower shall have paid all fees, costs, expenses and taxes then payable by
      the
      Borrower pursuant to this Agreement and the other Loan Documents, including
      Sections
      2.06
      and
12.04.

     

    (b) Representations
      and Warranties; No Event of Default.
      The
      following statements shall be true and correct, and the submission by the
      Borrower to the Administrative Agent of a Notice of Borrowing with respect
      to
      each such Loan, and the Borrower’s acceptance of the proceeds of such Loan,
      shall each be deemed to be a representation and warranty by each Loan Party
      on
      the date of such Loan that: (i) the representations and warranties
      contained in Article VI and in each other Loan Document, certificate or
      other writing delivered any Agent or any Lender pursuant hereto or thereto
      on or
      prior to the date of such Loan are true and correct in all material respects
      (except that such materiality qualifier shall not be applicable to any
      representations and warranties that already are qualified or modified by
      materiality in the text thereof) on and as of such date as though made on and
      as
      of such date, and (ii) at the time of and immediately after giving effect
      to the making of such Loan and the application of the proceeds thereof, no
      Default or Event of Default has occurred and is continuing or would result
      from
      the making of the Loan to be made.

     

    (c) Legality.
      The
      making of such Loan shall not contravene any law, rule or regulation applicable
      to any Agent or any Lender; provided,
      however,
      that
      the Borrower shall have the right to replace any Lender to prevent the
      contravention of any law, rule or regulation applicable to such Lender. Any
      such
      replacement Lender must be reasonably acceptable to the Agents. 

     

    (d) Notices.
      The
      Administrative Agent shall have received a Notice of Borrowing pursuant to
      Section
      2.02.

     

    ARTICLE
      VI

     

    REPRESENTATIONS
      AND WARRANTIES

     

    Section
      6.01 Representations
      and Warranties.
      Each
      Loan Party hereby represents and warrants to the Agents and the Lenders as
      follows:

     

    (a) Organization,
      Good Standing, Etc.
      Each
      Loan Party (i) is a corporation, limited liability company or limited
      partnership duly organized, validly existing and in good standing under the
      laws
      of the state or jurisdiction of its organization, (ii) has all requisite power
      and authority to conduct its business as now conducted and as currently
      contemplated and, in the case of the Borrower, to make the borrowings hereunder,
      and to execute and deliver each Loan Document to which it is a party, and to
      consummate the transactions contemplated thereby, and (iii) except where the
      failure to do so could not reasonably be expected to result in a Material
      Adverse Effect, is duly qualified to do business and is in good standing in
      each
      jurisdiction in which the character of the properties owned or leased by it
      or
      in which the transaction of its business makes such qualification
      necessary.

     

    
      
        
        

      

      
        -50-

        
          

        

      

      
        
        

      

    

     

    (b) Authorization,
      Etc.
      The
      execution, delivery and performance by each Loan Party of each Loan Document
      to
      which it is or will be a party, (i) have been duly authorized by all necessary
      action, (ii) do not and will not contravene its charter or by-laws, its limited
      liability company or operating agreement or its certificate of partnership
      or
      partnership agreement, as applicable, or any applicable law or any contractual
      restriction binding on or otherwise affecting it or any of its properties,
      (iii)
      do not and will not result in or require the creation of any Lien (other than
      pursuant to any Loan Document) upon or with respect to any of its properties,
      and (iv) do not and will not result in any default, noncompliance, suspension,
      revocation, impairment, forfeiture or nonrenewal of any permit, license,
      authorization or approval applicable to its operations or any of its
      properties.

     

    (c) Governmental
      Approvals.
      Except
      as set forth on Schedule
      6.01(c),
      no
      authorization or approval or other action by, and no notice to or filing with,
      any Governmental Authority is required in connection with the due execution,
      delivery and performance by any Loan Party of any Loan Document to which it
      is
      or will be a party.

     

    (d) Enforceability
      of Loan Documents.
      This
      Agreement is, and each other Loan Document to which any Loan Party is or will
      be
      a party, when delivered hereunder, will be, a legal, valid and binding
      obligation of such Person, enforceable against such Person in accordance with
      its terms, except as may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other similar laws and subject to general
      principles of equity, regardless of whether considered in a proceeding in equity
      or at law.

     

    (e) Subsidiaries.
      Schedule
      6.01(e)
      is a
      complete and correct description of the name, jurisdiction of incorporation
      and
      ownership of the outstanding Capital Stock of each Subsidiary of the Borrower.
      All of the issued and outstanding shares of Capital Stock of such Subsidiaries
      have been validly issued and are fully paid and non-assessable, and the holders
      thereof are not entitled to any preemptive, first refusal or other similar
      rights. Except as indicated on such Schedule, all such Capital Stock is owned
      by
      the Borrower or one or more of its wholly-owned Subsidiaries, free and clear
      of
      all Liens. There are no outstanding debt or equity securities of the Borrower
      or
      any of its Subsidiaries and no outstanding obligations of the Borrower or any
      of
      its Subsidiaries convertible into or exchangeable for, or warrants, options
      or
      other rights for the purchase or acquisition from the Borrower or any of its
      Subsidiaries, or other obligations of any Subsidiary to issue, directly or
      indirectly, any shares of Capital Stock of any Subsidiary of the
      Borrower.

     

    (f) Litigation;
      Commercial Tort Claims.
      Except
      as set forth in Schedule 6.01(f),
      (i) there is no pending or, to the knowledge of any Loan Party, threatened
      action, suit or proceeding affecting any Loan Party before any court or other
      Governmental Authority or any arbitrator that (A) as to which there is both
      a reasonable possibility of an adverse determination and that, if adversely
      determined, could reasonably be expected to result in a Material Adverse Effect
      or (B) relates to this Agreement or any other Loan Document or any
      transaction contemplated hereby or thereby and (ii) as of the Effective
      Date, none of the Loan Parties holds any commercial tort claims in respect
      of
      which a claim has been filed in a court of law or a written notice by an
      attorney has been given to a potential defendant.

     

    
      
        
        

      

      
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    (g) Financial
      Condition.

     

    (i) The
      Financial Statements, copies of which have been delivered to each Agent and
      each
      Lender, fairly present, in all material respects, the consolidated financial
      condition of the Borrower
      and
      its
      Subsidiaries as at the respective dates thereof and the consolidated results
      of
      operations of the Borrower
      and
      its
      Subsidiaries for the fiscal periods ended on such respective dates, all in
      accordance with GAAP, and since October 31, 2005 no event or development has
      occurred that has had or could reasonably be expected to result in a Material
      Adverse Effect.

     

    (ii) The
      Borrower
      has
      heretofore furnished to each Agent and each Lender (A) projected monthly
      balance sheets, income statements and statements of cash flows of the Borrower
      and its Subsidiaries for the period from November 2006, through October 2007,
      and (B) projected annual balance sheets, income statements and statements of
      cash flows of the Borrower
      and
      its
      Subsidiaries for the Fiscal Years ending in 2007 through 2010, which projected
      financial statements shall be updated from time to time pursuant to Section 7.01(a)(vii).
      Such
      projections, as so updated, are believed by the Borrower
      at
      the
      time furnished to be reasonable, have been prepared on a reasonable basis and
      in
      good faith by the Borrower,
      and
      have been based on assumptions believed by the Borrower
      to
      be
      reasonable at the time made and upon the best information then reasonably
      available to the Borrower,
      and the
Borrower
      is not aware
      of
      any facts or information that would lead it to believe that such projections,
      as
      so updated, are incorrect or misleading in any material respect.

     

    (h) Compliance
      with Law, Etc.
      No Loan
      Party is in violation of its organizational documents, any law, rule,
      regulation, judgment or order of any Governmental Authority or Gaming Authority
      applicable to it or any of its property or assets, or any material term of
      any
      agreement or instrument (including any Material Contract) binding on or
      otherwise affecting it or any of its properties, and except for those violations
      that could not reasonably be expected to result in a Material Adverse Effect,
      no
      Default or Event of Default has occurred and is continuing.

     

    (i) ERISA.
      Except
      as set forth on Schedule 6.01(i),
      (i)
      each Employee Plan is in substantial compliance with ERISA and the IRC,
      (ii) no Termination Event has occurred nor is reasonably expected to occur
      with respect to any Employee Plan, (iii) the most recent annual report
      (Form 5500 Series) with respect to each Employee Plan, including any required
      Schedule B (Actuarial Information) thereto, copies of which have been filed
      with the Internal Revenue Service and delivered to the Agents, is complete
      and
      correct and fairly presents the funding status of such Employee Plan, and since
      the date of such report there has been no material adverse change in such
      funding status, (iv) copies of each agreement entered into with the PBGC,
      the U.S. Department of Labor or the Internal Revenue Service with respect to
      any
      Employee Plan have been delivered to the Agents, (v) no Employee Plan had
      an accumulated or waived funding deficiency or permitted decrease which would
      create a deficiency in its funding standard account or has applied for an
      extension of any amortization period within the meaning of Section 412 of
      the IRC at any time during the previous 60 months, and (vi) no Lien
      imposed under the IRC or ERISA exists or is likely to arise on account of any
      Employee Plan within the meaning of Section 412 of the IRC. Except as set forth
      on Schedule
      6.01(i),
      no Loan
      Party or any of its ERISA Affiliates has incurred any withdrawal liability
      under
      ERISA with respect to any Multiemployer Plan, or is aware of any facts
      indicating that it or any of its ERISA Affiliates may in the future incur any
      such withdrawal liability. No Loan Party or any of its ERISA Affiliates nor
      any
      fiduciary of any Employee Plan has (A) engaged in a nonexempt prohibited
      transaction described in Sections 406 of ERISA or 4975 of the IRC, (B) failed
      to
      pay any required installment or other payment required under Section 412 of
      the
      IRC on or before the due date for such required installment or payment, (C)
      engaged in a transaction within the meaning of Section 4069 of ERISA or (D)
      incurred any liability to the PBGC which remains outstanding other than the
      payment of premiums, and there are no premium payments which have become due
      which are unpaid. There are no pending or, to the knowledge of any Loan Party,
      threatened claims, actions, proceedings or lawsuits (other than claims for
      benefits in the normal course) asserted or instituted against (1) any Employee
      Plan or its assets, (2) any fiduciary with respect to any Employee Plan, or
      (3)
      any Loan Party or any of its ERISA Affiliates with respect to any Employee
      Plan.
      Except as required by Section 4980B of the Internal Revenue Code, no Loan Party
      or any of its ERISA Affiliates maintains an employee welfare benefit plan (as
      defined in Section 3(1) of ERISA) which provides health or welfare benefits
      (through the purchase of insurance or otherwise) for any retired or former
      employee of any Loan Party or any of its ERISA Affiliates or coverage after
      a
      participant’s termination of employment.

     

    
      
        
        

      

      
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    (j) Taxes,
      Etc.
      All
      Federal, state and local tax returns and other reports required by applicable
      law to be filed by any Loan Party have been filed, or extensions have been
      obtained, and all taxes, assessments and other governmental charges imposed
      upon
      any Loan Party or any property of any Loan Party and which have become due
      and
      payable have been paid, except to the extent the failure to pay could not
      reasonably be expected to have a Material Adverse Effect or to the extent
      contested in good faith by proper proceedings which stay the imposition of
      any
      penalty, fine or Lien resulting from the non-payment thereof and, in each case,
      with respect to which adequate reserves have been set aside for the payment
      thereof in accordance with GAAP.

     

    (k) Regulations
      T, U and X.
      No Loan
      Party is or will be engaged in the business of extending credit for the purpose
      of purchasing or carrying margin stock (within the meaning of Regulation T,
      U or
      X), and no proceeds of any Loan will be used to purchase or carry any margin
      stock or to extend credit to others for the purpose of purchasing or carrying
      any margin stock. 

     

    (l) Nature
      of Business.
      No Loan
      Party is engaged in any business other than as set forth on Schedule
      6.01(l).

     

    (m) Adverse
      Agreements, Etc.
      No Loan
      Party is a party to any agreement or instrument, or subject to any charter,
      limited liability company agreement, partnership agreement or other corporate,
      partnership or limited liability company restriction or any judgment, order,
      regulation, ruling or other requirement of a court or other Governmental
      Authority, which has, or could reasonably be expected to result in, a Material
      Adverse Effect.

     

    (n) [intentionally
      omitted]

     

    
      
        
        

      

      
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    (o) Properties.  

     

    (i) Each
      Loan
      Party has good and marketable title to, valid leasehold interests in, or valid
      licenses to use, all property and assets material to its business, free and
      clear of all Liens, except Permitted Liens. All such properties and assets
      are
      in good working order and condition, ordinary wear and tear
      excepted.

     

    (ii) Schedule
      6.01(o)
      sets
      forth a complete and accurate list, as of the Effective Date, of the location,
      by state and street address, of all real property owned or leased by each Loan
      Party. As of the Effective Date, each Loan Party has valid leasehold interests
      in the Leases described on Schedule 6.01(o)
      to which
      it is a party. Schedule 6.01(o)
      sets
      forth with respect to each such Lease, the commencement date, termination date,
      renewal options (if any) and annual base rents. Each such Lease is valid and
      enforceable in accordance with its terms in all material respects and is in
      full
      force and effect. No consent or approval of any landlord or other third party
      in
      connection with any such Lease is necessary for any Loan Party to enter into
      and
      execute the Loan Documents to which it is a party, except as set forth on
Schedule 6.01(o).
      To the
      knowledge of any Loan Party, no other party to any such Lease is in default
      of
      its obligations thereunder, and no Loan Party (or any other party to any such
      Lease) has at any time delivered or received any notice of default which remains
      uncured under any such Lease and, as of the Effective Date, no event has
      occurred which, with the giving of notice or the passage of time or both, would
      constitute a default under any such Lease.

     

    (p) Full
      Disclosure.
      Each
      Loan
      Party has
      disclosed to the Agents all agreements, instruments and corporate or other
      restrictions to which it is subject, and all other matters known to it, that,
      individually or in the aggregate, could reasonably be expected to result in
      a
      Material Adverse Effect. None of the other reports, financial statements,
      certificates or other information furnished by or on behalf of any Loan
      Party
      to the
      Agents in connection with the negotiation of this Agreement or delivered
      hereunder (as modified or supplemented by other information so furnished)
      contains any material misstatement of fact or omits to state any material fact
      necessary to make the statements therein, in the light of the circumstances
      under which it was made, not misleading; provided
      that,
      with respect to projected financial information, each Loan
      Party represents
      only that such information was prepared in good faith based upon assumptions
      believed to be reasonable at the time. There
      is
      no contingent liability or fact known to a Loan Party that could reasonably
      be
      expected to result in a Material Adverse Effect which has not been set forth
      in
      a footnote included in the Financial Statements or a Schedule
      hereto.

     

    (q) Operating
      Lease Obligations.
      On the
      Effective Date, none of the Loan Parties has any Operating Lease Obligations
      other than the Operating Lease Obligations set forth on Schedule 6.01(q).

     

    (r) Environmental
      Matters.
      Except
      as set forth on Schedule
      6.01(r),
      (i) the
      operations of each Loan Party are in compliance in all material aspects with
      all
      Environmental Laws; (ii) there has been no Release at any of the properties
      owned or operated by any Loan Party, or to its knowledge, at any disposal or
      treatment facility which received Hazardous Materials generated by any Loan
      Party which could reasonably be expected to result in a Material Adverse Effect;
      (iii) no Environmental Action has been asserted against any Loan Party nor
      does
      any Loan Party have knowledge or notice of any threatened or pending
      Environmental Action against any Loan Party which could reasonably be expected
      to result in a Material Adverse Effect; (iv) to its knowledge, no
      Environmental Actions have been asserted against any facilities that may have
      received Hazardous Materials generated by any Loan Party which could reasonably
      be expected to result in a Material Adverse Effect; (v) no property now or
      formerly owned or occupied by a Loan Party has been used as a treatment or
      disposal site for any Hazardous Material by such Loan Party in violation of
      the
      Environmental Law where such violation could reasonably be expected to have
      a
      Material Adverse Effect; (vi) no Loan Party has failed to report to the
      proper Governmental Authority the occurrence of any Release which is required
      to
      be so reported by such Loan Party under any Environmental Laws which could
      reasonably be expected to result in a Material Adverse Effect; (vii) each
      Loan Party holds all licenses, permits and approvals required under any
      Environmental Laws in connection with the operation of the business carried
      on
      by it, except for such licenses, permits and approvals as to which a Loan
      Party’s failure to maintain or comply with could not reasonably be expected to
      result in a Material Adverse Effect; and (viii) no Loan Party has received
      any
      notification pursuant to any Environmental Laws that (A) any work, repairs,
      construction or Capital Expenditures are required to be made in respect of
      any
      of its properties as a condition of continued compliance with any Environmental
      Laws, or any license, permit or approval issued pursuant thereto or (B) any
      license, permit or approval referred to above is about to be reviewed, made
      subject to limitations or conditions, revoked, withdrawn or terminated, in
      each
      case, except as could not reasonably be expected to result in a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (s) Insurance.
      Each
      Loan Party keeps its property adequately insured and maintains
      (i) insurance to such extent and against such risks, including fire, as is
      customary with companies in the same or similar businesses, (ii) worker’s
      compensation insurance in the amount required by applicable law, (iii) public
      liability insurance, which shall include product liability insurance, in the
      amount customary with companies in the same or similar business against claims
      for personal injury or death on properties owned, occupied or controlled by
      it,
      and (iv) such other insurance as may be required by law or as may be
      reasonably required by the Collateral Agent (including against larceny,
      embezzlement or other criminal misappropriation). Schedule
      6.01(s)
      sets
      forth a list of all insurance maintained by each Loan Party on the Effective
      Date.

     

    (t) Use
      of
      Proceeds.
      The
      proceeds of the Loans shall be used for general corporate purposes and any
      lawful purpose not prohibited by this Agreement including to (i) finance
      the payment of a portion of the consideration payable to complete the
      Acquisition, (ii) refinance certain indebtedness owing to Wells Fargo Bank,
      National Association, (iii) pay fees and expenses in connection with the
      Acquisition and transactions contemplated hereby, (iv) fund the Earn Out Payment
      and (v) fund working capital of the Borrower. 

     

    (u) Solvency.
      After
      giving effect to the transactions contemplated by this Agreement and before
      and
      immediately after giving effect to each Loan, each Loan Party is, and the Loan
      Parties on a consolidated basis are, Solvent.

     

    (v) Location
      of Bank Accounts.
      Schedule
      6.01(v)
      sets
      forth a complete and accurate list as of the Effective Date of all deposit,
      checking and other bank accounts, all securities and other accounts maintained
      with any broker dealer and all other similar accounts maintained by each Loan
      Party, together with a description thereof (i.e.,
      the
      bank or broker dealer at which such deposit or other account is maintained
      and
      the account number and the purpose thereof).

     

    
      
        
        

      

      
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    (w) Intellectual
      Property.
      Except
      as set forth on Schedule 6.01(w),
      each
      Loan Party owns or licenses or otherwise has the right to use all licenses,
      permits, patents, patent applications, trademarks, trademark applications,
      service marks, tradenames, copyrights, copyright applications, franchises,
      authorizations, non-governmental licenses and permits and other intellectual
      property rights that are necessary for the operation of its business, without
      infringement upon or conflict with the rights of any other Person with respect
      thereto, except for such infringements and conflicts which, individually or
      in
      the aggregate, could not reasonably be expected to result in a Material Adverse
      Effect. Set forth on Schedule 6.01(w)
      is a
      complete and accurate list as of the Effective Date of all such material
      licenses, permits, patents, patent applications, trademarks, trademark
      applications, service marks, tradenames, copyrights, copyright applications,
      franchises, authorizations, non-governmental licenses and permits and other
      intellectual property rights of each Loan Party. No slogan or other advertising
      device, product, process, method, substance, part or other material now
      employed, or now contemplated to be employed, by any Loan Party infringes upon
      or conflicts with any rights owned by any other Person, and no claim or
      litigation regarding any of the foregoing is pending or threatened, except
      for
      such infringements and conflicts which could not reasonably be expected to
      result in, individually or in the aggregate, a Material Adverse Effect. To
      the
      knowledge of each Loan Party, no patent, invention, device, application,
      principle or any statute, law, rule, regulation, standard or code is pending
      or
      proposed, which, individually or in the aggregate, could reasonably be expected
      to result in a Material Adverse Effect.

     

    (x) Material
      Contracts.
      As of
      the Effective Date, the Borrower has no Material Contracts.

     

    (y) Investment
      Company Act.
      None of
      the Loan Parties is
      an
“investment company” or an “affiliated person” or “promoter” of, or “principal
      underwriter” of or for, an “investment company”, as such terms are defined in
      the Investment Company Act of 1940, as amended.

     

    (z) Employee
      and Labor Matters.
      There
      is
      (i) no unfair labor practice complaint pending or, to the knowledge of any
      Loan
      Party,
      threatened against any Loan
      Party
      before
      any Governmental Authority and no grievance or arbitration proceeding pending
      or
      threatened against any Loan
      Party
      which
      arises out of or under any collective bargaining agreement, (ii) no strike,
      labor dispute, slowdown, stoppage or similar action or grievance pending or,
      to
      its knowledge, threatened against any Loan
      Party
      or (iii)
      to the knowledge of any Loan
      Party,
      no
      union representation question existing with respect to the employees of any
      Loan
      Party and
      no
      union organizing activity taking place with respect to any of the employees
      of
      any Loan Party. No Loan Party or any of its ERISA Affiliates has incurred any
      liability or obligation under the Worker Adjustment and Retraining Notification
      Act (“WARN”)
      or
      similar state law, which remains unpaid or unsatisfied. The hours worked and
      payments made to employees of any Loan Party have not been in violation of
      the
      Fair Labor Standards Act or any other applicable legal requirements, except
      to
      the extent such violations could not, individually or in the aggregate,
      reasonably be expected to result in a Material Adverse Effect. All material
      payments due from any Loan Party on account of wages and employee health and
      welfare insurance and other benefits have been paid or accrued as a liability
      on
      the books of such Loan Party, except where the failure to do so could not,
      individually or in the aggregate, reasonably be expected to result in a Material
      Adverse Effect.

     

    
      
        
        

      

      
        -56-

        
          

        

      

      
        
        

      

    

     

    (aa) Customers
      and Suppliers.
      Other
      than in the ordinary course of business, there exists no actual or threatened
      termination, cancellation or material limitation of the business relationship
      between (i) any Loan
      Party,
      on the
      one hand, and any customer or any group thereof, on the other hand, whose
      agreements with any Loan
      Party are
      individually or in the aggregate material to the business or operations of
      such
Loan
      Party,
      or
      (ii) any Loan
      Party,
      on the
      one hand, and any material supplier thereof, on the other hand.

     

    (bb) No
      Bankruptcy Filing.
      No Loan
      Party is
      contemplating either the filing of a petition by it under any state, federal
      or
      foreign bankruptcy or insolvency laws or the liquidation of all or a major
      portion of such Loan
      Party’s assets
      or
      property, and no Loan Party has
      any
      knowledge of any Person contemplating the filing of any such petition against
      it.

     

    (cc) Separate
      Existence.

     

    (i) All
      customary formalities regarding the separate existence of each Loan
      Party have been
      at
      all times since its formation observed.

     

    (ii) Each
      Loan
      Party
      has at
      all times since its formation accurately maintained its financial statements,
      accounting records and other organizational documents separate from those of
      any
      Affiliate of such Loan
      Party
      and any
      other Person. No Loan Party has at any time since its formation commingled
      its
      assets with those of any of its Affiliates or any other Person. Each
Loan
      Party
      has at
      all times since its formation accurately maintained its own bank accounts and
      separate books of account.

     

    (iii) Each
      Loan
      Party
      has at
      all times since its formation paid its own liabilities from its own separate
      assets.

     

    (iv) Each
      Loan
      Party
      has at
      all times since its formation identified itself in all dealings with the public,
      under its own name and as a separate and distinct Person. No Loan
      Party
      has at
      any time since its formation identified itself as being a division or a part
      of
      any other Person.

     

    (dd) Name;
      Jurisdiction of Organization; Organizational ID Number; Chief Place of Business;
      Chief Executive Office; FEIN.
      Schedule
      6.01(dd)
      sets
      forth a complete and accurate list as of the date hereof of (i) the exact
      legal name of each Loan Party, (ii) the jurisdiction of organization of
      each Loan Party, (iii) the organizational identification number of each
      Loan Party (or indicates that such Loan Party has no organizational
      identification number), (iv) each place of business of each Loan
      Party,
      (v) the chief executive office of each Loan
      Party and (vi) the federal employer identification number of each Loan
      Party.

     

    (ee) Tradenames.
      Schedule
      6.01(ee)
      hereto
      sets forth a complete and accurate list as of the Effective Date of all
      tradenames used by each Loan Party.

     

    
      
        
        

      

      
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    (ff) Locations
      of Collateral.
      As of
      the Effective Date, there
      is
      no location at which any Loan Party has any Collateral (except for Inventory
      in
      transit) other than those locations listed on Schedule 6.01(ff).
      Additionally, Schedule 6.01(ff)
      hereto
      contains a true, correct and complete list, as of the Effective Date, of the
      legal names and addresses of each warehouse at which Collateral of each
Loan
      Party
      is
      stored. None of the receipts received by any Loan
      Party
      from any
      warehouse states that the goods covered thereby are to be delivered to bearer
      or
      to the order of a named Person or to a named Person and such named Person’s
      assigns.

     

    (gg) Security
      Interests.
      Each
      Security Agreement creates in favor of the Collateral Agent, for the benefit
      of
      the Agents and the Lenders, a legal, valid and enforceable security interest
      in
      the Collateral covered thereby. Upon the filing of the financing statements
      described in Section 5.01(d)(iv),
      such
      security interests in and Liens on the Collateral granted thereby shall be
      perfected, first priority security interests (subject to Permitted Liens),
      and
      no further recordings or filings are or will be required in connection with
      the
      creation, perfection or enforcement of such security interests and
      Liens.

     

    (hh) Schedules.
      All of
      the information which is required to be scheduled to this Agreement is set
      forth
      on the Schedules attached hereto, is correct and accurate in all material
      respects and does not omit to state any information material
      thereto.

     

    (ii) Representations
      and Warranties in Documents; No Default.
      All
      representations and warranties set forth in this Agreement and the other Loan
      Documents are true and correct in all respects at the time as of which such
      representations were made and on the Effective Date. No Event of Default has
      occurred and is continuing and no condition exists which constitutes a Default
      or an Event of Default.

     

    (jj) Acquisition
      Documents.
      As of
      the Effective Date, the Borrower have delivered to the Agents a complete and
      correct copy of the material Acquisition Documents (including all schedules,
      exhibits, amendments, supplements, modifications, and assignments). No Loan
      Party that is a party thereto is in default in the performance or compliance
      with any provisions thereof. The Acquisition Documents comply in all material
      respects with, and the Acquisition has been consummated in accordance with,
      in
      all material respects, all applicable laws (including HSR). The Acquisition
      Documents are in full force and effect as of the Effective Date and have not
      been terminated, rescinded or withdrawn as of such date. The execution, delivery
      and performance of the Acquisition Documents do not and will not require any
      registration with, consent, or approval of, or notice to, or other action with
      or by, any Governmental Authority, other than consents or approvals that have
      been obtained and that are still in full force and effect. To the best of the
      Loan Parties’ knowledge, none of the representations or warranties of any other
      Person in any Acquisition Document contains any untrue statement of a material
      fact or omits any fact necessary to make the statements therein not
      misleading.

     

    (kk) Licenses
      and Permits.

     

    (i) (A)
      All
      material licenses (including all Gaming Licenses), permits, consents and similar
      rights required from any Governmental Authority (including all Gaming
      Authorities) for the ownership, use or operation of the businesses or properties
      now owned or operated by the Borrower or any of its Subsidiaries are in full
      force and effect except for such licenses, permits, consents and similar rights
      the failure to obtain, individually or in the aggregate, could not reasonably
      be
      expected to result in a Material Adverse Effect; (B) each of the Borrower and
      its Subsidiaries is in compliance, in all material respects, with all such
      licenses, permits, consents and similar rights; and (C) none of such licenses,
      permits, consents or similar rights is the subject of any pending or, to the
      best of Borrower’s knowledge, threatened litigation or other proceeding of any
      kind. As of the Effective Date (and as of each subsequent date on which the
      Borrower delivers to the Administrative Agent an updated schedule pursuant
      hereto), set forth on Schedule
      6.01(kk)
      is a
      complete and accurate list of all such material licenses (including all Gaming
      Licenses), permits, consents and similar rights that are necessary and
      appropriate for the operation of the Borrower’s and its Subsidiaries’
businesses, and such schedule identifies the date by which an application for
      the renewal of such license, permit, consent or similar right must be filed
      and
      describes the status of each such pending application.

     

    
      
        
        

      

      
        -58-

        
          

        

      

      
        
        

      

    

     

    (ii) The
      Borrower and its Subsidiaries have obtained all necessary approvals of the
      Gaming Authorities for (A) the execution and delivery of the Acquisition
      Agreement and the consummation of the Acquisition and all transactions related
      thereto, and (B) the execution and delivery of this Agreement and the
      consummation of the transactions contemplated by this Agreement and all other
      Loan Documents.

     

    ARTICLE
      VII

     

    COVENANTS
      OF THE LOAN PARTIES

     

    Section
      7.01 Affirmative
      Covenants.
      So long
      as any principal of or interest on any Loan, or any other Obligation (other
      than
      unasserted contingent indemnification Obligations) shall remain unpaid or any
      Lender shall have any Commitment hereunder, each Loan Party will and will cause
      each of its Subsidiaries to:

     

    (a) Reporting
      Requirements.
      Furnish
      to each Agent and each Lender (provided,
      that,
      with
      respect to consolidating reports, then in such case, only if such consolidating
      reports are prepared or otherwise required to be prepared):

     

    (i) as
      soon
      as available and in any event within 45 days after the end of each of the first
      three fiscal quarters of the Borrower, consolidated and consolidating balance
      sheets, consolidated and consolidating statements of operations and retained
      earnings and consolidated and consolidating statements of cash flows of the
      Borrower and its Subsidiaries as at the end of the first three fiscal quarters,
      and for the period commencing at the end of the immediately preceding Fiscal
      Year and ending with the end of such quarter, setting forth in each case in
      comparative form the figures for the corresponding date or period of the
      immediately preceding Fiscal Year, all in reasonable detail and certified by
      an
      Authorized Officer of the Borrower as fairly presenting, in all material
      respects, the financial position of the Borrower and its Subsidiaries as of
      the
      end of such quarter and the results of operations and cash flows of the Borrower
      and its Subsidiaries for such quarter, in accordance with GAAP applied in a
      manner consistent with that of the most recent audited financial statements
      of
      the Borrower and its Subsidiaries furnished to the Agents and the Lenders,
      subject to normal year-end audit adjustments and the absence of
      footnotes;

     

    
      
        
        

      

      
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    (ii) as
      soon
      as available, and in any event within 120 days after the end of each Fiscal
      Year
      of the Borrower and its Subsidiaries, consolidated and consolidating balance
      sheets, consolidated and consolidating statements of operations and retained
      earnings and consolidated and consolidating statements of cash flows of the
      Borrower and its Subsidiaries as at the end of such Fiscal Year, setting forth
      in each case in comparative form the corresponding figures for the immediately
      preceding Fiscal Year, all in reasonable detail and prepared in accordance
      with
      GAAP, and accompanied by a report and an unqualified opinion, prepared in
      accordance with generally accepted auditing standards, of independent certified
      public accountants of recognized standing selected by the Borrower and
      satisfactory to the Agents (which opinion shall be without (A) a “going
      concern” or like qualification or exception, (B) any qualification or
      exception as to the scope of such audit, or (C) any qualification which
      relates to the treatment or classification of any item and which, as a condition
      to the removal of such qualification, would require an adjustment to such item,
      the effect of which would be to cause any noncompliance with the provisions
      of Section 7.03,
      together with a written statement of such accountants (which statement may
      be
      limited to the extent required by accounting rules or guidelines) (1) to
      the effect that, in making the examination necessary for their audit of such
      financial statements, they have not obtained any knowledge of the existence
      of
      an Event of Default or a Default under Section
      7.03
      and
      (2) if such accountants shall have obtained any knowledge of the existence
      of an Event of Default or such Default under Section
      7.03,
      describing the nature thereof;

     

    (iii) as
      soon
      as available, and in any event within 30 days after the end of each fiscal
      month
      of the Borrower and its Subsidiaries, internally prepared consolidated and
      consolidating balance sheets, consolidated and consolidating statements of
      operations and retained earnings and consolidated and consolidating statements
      of cash flows as at the end of such fiscal month, and for the period commencing
      at the end of the immediately preceding Fiscal Year and ending with the end
      of
      such fiscal month, in each case, all in reasonable detail and certified by
      an
      Authorized Officer of the Borrower as fairly presenting, in all material
      respects, the financial position of the Borrower and its Subsidiaries as at
      the
      end of such fiscal month and the results of operations, retained earnings and
      cash flows of the Borrower and its Subsidiaries for such fiscal month, in
      accordance with GAAP applied in a manner consistent with that of the most recent
      audited financial statements furnished to the Agents and the Lenders, subject
      to
      normal year-end audit adjustments and the absence of footnotes;

     

    (iv) simultaneously
      with the delivery of the financial statements of the Borrower and its
      Subsidiaries required by clauses (i), (ii) and (iii) of this Section 7.01(a),
      a
      certificate of an Authorized Officer of the Borrower (A) stating that such
      Authorized Officer has reviewed the provisions of this Agreement and the other
      Loan Documents and has made or caused to be made under his or her supervision
      a
      review of the condition and operations of the Borrower and its Subsidiaries
      during the period covered by such financial statements with a view to
      determining whether the Borrower and its Subsidiaries were in compliance with
      all of the provisions of this Agreement and such Loan Documents at the times
      such compliance is required hereby and thereby, and that such review has not
      disclosed, and such Authorized Officer has no knowledge of, the existence during
      such period of an Event of Default or Default or, if an Event of Default or
      Default existed, describing the nature and period of existence thereof and
      the
      action which the Borrower and its Subsidiaries propose to take or have taken
      with respect thereto and (B) attaching a schedule showing the calculation of
      the
      financial covenants specified in Section 7.03;

     

    
      
        
        

      

      
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    (v) as
      soon
      as available and in any event within 30 days after the end of each fiscal
      month of the Borrower and its Subsidiaries, reports in form and detail
      satisfactory to the Agents and certified by an Authorized Officer of the
      Borrower as being accurate and complete (A) listing all Accounts Receivable
      of
      the Borrower as of such day, which shall include the amount and age of each
      Account Receivable, showing separately those which are more than 30, 60, 90
      and
      120 days old and a description of all Liens, set-offs, defenses and
      counterclaims with respect thereto, together with a reconciliation of such
      schedule with the schedule delivered to the Agents pursuant to this
      clause (v)(A) for the immediately preceding fiscal month, the name and
      mailing address of each Account Debtor with respect to each such Account
      Receivable and such other information as any Agent may request, (B) listing
      all accounts payable of the Borrower as of each such day which shall include
      the
      amount and age of each account payable, the name and mailing address of each
      account creditor and such other information as any Agent may request, and
      (C) listing all Inventory of the Borrower, in excess of $100,000 in value,
      as of each such day, and containing a breakdown of such Inventory by type and
      amount, the cost and the current market value thereof (by location), the date
      of
      acquisition, the warehouse and production facility location and such other
      information as any Agent may request, all in detail and in form satisfactory
      to
      the Agents; 

     

    (vi) as
      soon
      as available and in any event within 30 Business Days after the end of each
      month commencing with the first month ending after the Effective Date, a
      Borrowing Base Certificate, supported by schedules showing the derivation
      thereof and containing such detail and other information as any Agent may
      request from time to time, provided that (A) the Borrowing Base set forth
      in the Borrowing Base Certificate shall be effective from and including the
      date
      such Borrowing Base Certificate is duly received by the Agents but not including
      the date on which a subsequent Borrowing Base Certificate is received by the
      Agents, unless any Agent disputes the eligibility of any property included
      in
      the calculation of the Borrowing Base or the valuation thereof by notice of
      such
      dispute to the Borrower and (B) in the event of any dispute about the
      calculation or composition of the Borrowing Base, such Agent’s good faith
      judgment shall control;

     

    (vii) no
      later
      than 45 days after the commencement of each Fiscal Year, financial
      projections, supplementing and superseding the financial projections for the
      period referred to in Section 6.01(g)(ii)(A),
      displayed on a month by month basis and otherwise in form and substance
      reasonably satisfactory to the Agents for such Fiscal Year for the Borrower
      and
      its Subsidiaries, all such financial projections to be prepared on a reasonable
      basis and in good faith, and to be based on assumptions believed by the Borrower
      to be reasonable at the time made and from the best information then available
      to the Borrower;

     

    (viii) promptly
      after submission to any Governmental Authority, all documents and information
      furnished to such Governmental Authority in connection with any material or
      formal investigation of any Loan Party other than routine inquiries by such
      Governmental Authority;

     

    
      
        
        

      

      
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    (ix) as
      soon
      as possible, and in any event within 3 Business Days of an Authorized Officer’s
      knowledge of an Event of Default or Default or the occurrence of any event
      or
      development that could
      reasonably be expected to result in
      a
      Material Adverse Effect, the written statement of an Authorized Officer of
      the
      Borrower setting forth the details of such Event of Default or Default or other
      event or development having a Material Adverse Effect and the action which
      the
      affected Loan Party proposes to take with respect thereto;

     

    (x) (A)
      as
      soon as possible and in any event within 10 days after any Loan Party or any
      ERISA Affiliate thereof knows or has reason to know that (1) any Reportable
      Event with respect to any Employee Plan has occurred, (2) any other Termination
      Event with respect to any Employee Plan has occurred, or (3) an accumulated
      funding deficiency has been incurred or an application has been made to the
      Secretary of the Treasury for a waiver or modification of the minimum funding
      standard (including installment payments) or an extension of any amortization
      period under Section 412 of the IRC with respect to an Employee Plan, a
      statement of an Authorized Officer of the Borrower setting forth the details
      of
      such occurrence and the action, if any, which such Loan Party or such ERISA
      Affiliate proposes to take with respect thereto, (B) promptly and in any event
      within 3 days after receipt thereof by any Loan Party or any ERISA Affiliate
      thereof from the PBGC, copies of each notice received by any Loan Party or
      any
      ERISA Affiliate thereof of the PBGC’s intention to terminate any Plan or to have
      a trustee appointed to administer any Plan, (C) promptly and in any event within
      10 days after the filing thereof with the Internal Revenue Service if requested
      by any Agent, copies of each Schedule B (Actuarial Information) to the annual
      report (Form 5500 Series) with respect to each Employee Plan and Multiemployer
      Plan, (D) promptly and in any event within 10 days after any Loan Party or
      any
      ERISA Affiliate thereof knows or has reason to know that a required installment
      within the meaning of Section 412 of the IRC has not been made when due with
      respect to an Employee Plan, (E) promptly and in any event within 3 days after
      receipt thereof by any Loan Party or any ERISA Affiliate thereof from a sponsor
      of a Multiemployer Plan or from the PBGC, a copy of each notice received by
      any
      Loan Party or any ERISA Affiliate thereof concerning the imposition or amount
      of
      withdrawal liability under Section 4202 of ERISA or indicating that such
      Multiemployer Plan may enter reorganization status under Section 4241 of ERISA,
      and (F) promptly and in any event within 10 days after any Loan Party or any
      ERISA Affiliate thereof sends notice of a plant closing or mass layoff (as
      defined in WARN) to employees, copies of each such notice sent by such Loan
      Party or such ERISA Affiliate thereof;

     

    (xi) promptly
      after the commencement thereof but in any event not later than 5 Business Days
      after service of process with respect thereto on, or the obtaining of knowledge
      thereof by, any Loan Party, notice of each action, suit or proceeding before
      any
      court or other Governmental Authority or other regulatory body or any arbitrator
      which, if adversely determined, could
      reasonably be expected to result in
      a
      Material Adverse Effect;

     

    (xii) as
      soon
      as possible and in any event within 5 Business Days after execution, receipt
      or
      delivery thereof, copies of any material notices that any Loan Party executes
      or
      receives in connection with any Material Contract;

     

    (xiii) promptly
      after the sending or filing thereof, copies of all statements, reports and
      other
      information any Loan Party sends to any holders of its Indebtedness or its
      securities or files with the SEC or any national (domestic or foreign)
      securities exchange;

     

    
      
        
        

      

      
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    (xiv) promptly
      upon receipt thereof, copies of all material, non-routine financial reports
      (including management letters), if any, submitted to any Loan Party by its
      auditors in connection with any annual or interim audit of the books thereof;
      and

     

    (xv) as
      soon
      as possible and in any event within 5 Business Days after execution, receipt
      or
      delivery thereof, copies of any material notices that any Loan Party executes
      or
      receives in connection with the sale or other Disposition of the Capital Stock
      of, or all or substantially all of the assets of, any Loan Party;
      and

     

    (xvi) promptly
      upon request, such other information concerning the condition or operations,
      financial or otherwise, of any Loan Party as any Agent may from time to time
      may
      reasonably request.

     

    (b) Additional
      Guaranties and Collateral Security.
      Cause:

     

    (i) each
      Subsidiary of any Loan Party (the “New
      Subsidiary”)
      to
      execute and deliver to the Collateral Agent promptly and in any event within
      3
      Business Days after the formation or acquisition thereof (A) a Guaranty
      guaranteeing the Obligations, (B) a Security Agreement, together with
      (x) if such New Subsidiary has any Domestic Subsidiaries,
      (I) certificates (if any) evidencing all of the Capital Stock of such
      Subsidiary owned by such New Subsidiary, (II) undated stock powers executed
      in blank, and (III) such opinions of counsel and such approving certificate
      of such Subsidiary as either Agent may reasonably request in respect of
      complying with any legend on any such certificate or any other matter relating
      to such shares, and (y) if such New Subsidiary has any first-tier
      Subsidiaries that are CFCs, (I) certificates (if any) evidencing all (or,
      65% of the outstanding voting Capital Stock of such Subsidiary if pledging
      or
      hypothecating more than 65% of the total outstanding voting Capital Stock of
      such Subsidiary reasonably could be expected to result in material adverse
      tax
      consequences to the Loan Parties) of the outstanding voting Capital Stock of
      such Subsidiary, (II) undated stock powers executed in blank with signature
      guaranteed, and (III) such opinions of counsel and such approving
      certificate of such Subsidiary as either Agent may reasonably request in respect
      of complying with any legend on any such certificate or any other matter
      relating to such shares, (C) if such New Subsidiary has a fee interest in
      any real property that would constitute After Acquired Property if it were
      acquired by a Loan Party, one or more mortgages creating on such real property
      a
      perfected, first priority Lien on such real property, and, if requested by
      the
      Collateral Agent, a title insurance policy covering such real property, a
      current ALTA survey of such real property and a surveyor’s certificate, a
      Phase I Environmental Site Assessment with respect to such real property,
      certified to the Collateral Agent by a company reasonably satisfactory to the
      Collateral Agent, each in form and substance reasonably satisfactory to the
      Agents, together with such other agreements, instruments and documents as either
      Agent may reasonably require whether comparable to the documents required under
      Section 7.01(o)
      or
      otherwise, and (D) such other agreements, instruments, approvals, legal
      opinions, or other documents reasonably requested by either Agent in order
      to
      create, perfect, establish the first priority of or otherwise protect any Lien
      purported to be covered by any such Security Agreement or mortgage, or otherwise
      to effect the intent that such New Subsidiary shall become bound by all of
      the
      terms, covenants and agreements contained in the Loan Documents and that all
      property and assets of such New Subsidiary shall become Collateral for the
      Obligations; provided
      that the
      foregoing Guaranty and Security Agreement shall not be required to be provided
      to the Collateral Agent with respect to any New Subsidiary of a Loan Party
      that
      is a CFC if providing such documents would result in material adverse tax
      consequences to the Loan Parties; and

     

    
      
        
        

      

      
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    (ii) each
      Loan
      Party that is the owner of the Capital Stock of such New Subsidiary to execute
      and deliver promptly and in any event within 3 Business Days after the formation
      or acquisition of such New Subsidiary a joinder to the Security Agreement (if
      it
      is not already a party thereto), together with (A) if such New Subsidiary
      is not a CFC or is a CFC and the pledge of 100% of the voting Capital Stock
      of
      such CFC would not result in material adverse tax consequences to the Loan
      Parties, (w) certificates (if any) evidencing all of the Capital Stock of
      such New Subsidiary, (x) undated stock powers or other appropriate
      instruments or assignment executed in blank with signature guaranteed,
      (y) such opinions of counsel and such approving certificate of such New
      Subsidiary as the Agents may reasonably request in respect of complying with
      any
      legend on any such certificate or any other matter relating to such shares,
      and
      (z) such other agreements, instruments, approvals, legal opinions, or other
      documents, or (B) if such New Subsidiary is a CFC and the granting of a
      pledge of more than 65% of the voting Capital Stock of such CFC would result
      in
      material adverse tax consequences to the Loan Parties, (w) certificates (if
      any) evidencing 65% of the outstanding voting Capital Stock of such New
      Subsidiary, (x) undated stock powers or other appropriate instruments or
      assignment executed in blank with signature guarantee, (y) such opinions of
      counsel and such approving certificate of such New Subsidiary as the Agents
      may
      reasonably request in respect of complying with any legend on any such
      certificate or any other matter relating to such shares, and (z) such other
      agreements, instruments, approvals, legal opinions, or other documents
      reasonably requested by either Agent.

     

    (c) Compliance
      with Laws, Etc.
      Comply,
      and cause each of its Subsidiaries to comply, in all material respects with
      all
      applicable laws, rules, regulations, orders (including, without limitation,
      all
      Environmental Laws and Gaming Laws), judgments and awards (including any
      settlement of any claim that, if breached, could give rise to any of the
      foregoing), such compliance to include (i) paying before the same become
      delinquent all taxes, assessments and governmental charges or levies imposed
      upon it or upon its income or profits or upon any of its properties except
      to
      the extent failure to pay could not reasonably be expected to have a Material
      Adverse Effect or (ii) paying all other lawful claims which if unpaid might
      become a Lien or charge upon any of its properties, except, in the case of
      both
      clauses (i) and (ii), to the extent contested in good faith by proper
      proceedings which stay the imposition of any penalty, fine or Lien resulting
      from the non-payment thereof and with respect to which adequate reserves have
      been set aside for the payment thereof in accordance with GAAP, and (iii) filing
      a report with the appropriate Gaming Authorities with respect to the
      Acquisition, this Agreement and all transactions contemplated thereby or
      hereby.

     

    (d) Preservation
      of Existence, Etc. Maintain and preserve, and cause each of its
      Subsidiaries to maintain and preserve, its existence, rights and privileges,
      and
      become or remain, and cause each of its Subsidiaries to become or remain, duly
      qualified and in good standing in each jurisdiction in which the character
      of
      the properties owned or leased by it or in which the transaction of its business
      makes such qualification necessary; provided,
      however,
      that
      the preceding shall not apply to GameTech Arizona Corporation, a Subsidiary
      of
      Borrower that was incorporated in Arizona and is expected to be wound down
      and
      subsequently dissolved as soon as possible after the completion of litigation
      and the passing of any right of appeal regarding that certain lawsuit Fortunet,
      Inc. v. GameTech International, Inc. and GameTech Arizona Corporation (U.S.
      District Court, District of Nevada).

     

    
      
        
        

      

      
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    (e) Keeping
      of Records and Books of Account.
      Keep,
      and cause each of its Subsidiaries to keep, adequate records and books of
      account, with complete entries made to permit the preparation of financial
      statements in accordance with GAAP.

     

    (f) Inspection
      Rights.
      Permit,
      and cause each of its Subsidiaries to permit, the agents and representatives
      of
      any Agent at any time and from time to time during normal business hours, at
      the
      expense of the Borrower, to examine and make copies of and abstracts from its
      records and books of account, to visit and inspect its properties, to verify
      leases, notes, accounts receivable, deposit accounts and its other assets,
      to
      conduct audits, physical counts, valuations, appraisals, Phase I Environmental
      Site Assessments (and, if requested by the Collateral Agent based upon the
      results of any such Phase I Environmental Site Assessment, a Phase II
      Environmental Site Assessment) or examinations and to discuss its affairs,
      finances and accounts with any of its directors, officers, managerial employees,
      independent accountants or any of its other representatives.

     

    (g) Maintenance
      of Properties, Etc.
      Maintain
      and preserve, and cause each of its Subsidiaries to maintain and preserve,
      all
      of its properties which are necessary or useful in the proper conduct of its
      business in good working order and condition, ordinary wear and tear excepted,
      and comply, and cause each of its Subsidiaries to comply, at all times with
      the
      provisions of all leases to which it is a party as lessee or under which it
      occupies property, so as to prevent any loss or forfeiture thereof or thereunder
      that would reasonably be expected to have a Material Adverse
      Effect.

     

    (h) Maintenance
      of Insurance.
      Maintain, and cause each of its Subsidiaries to maintain, insurance with
      responsible and reputable insurance companies or associations (including
      comprehensive general liability, hazard, rent and business interruption
      insurance) with respect to its properties (including all real properties leased
      or owned by it) and business, in such amounts and covering such risks as is
      required by any Governmental Authority having jurisdiction with respect thereto
      or as is carried generally in accordance with sound business practice by
      companies in similar businesses similarly situated and in any event in amount,
      adequacy and scope reasonably satisfactory to the Collateral Agent. All policies
      covering the Collateral are to be made payable to the Collateral Agent for
      the
      benefit of the Agents and the Lenders, as its interests may appear, in case
      of
      loss, under a standard non-contributory “lender” or “secured party” clause and
      are to contain such other provisions as the Collateral Agent may require to
      fully protect the Lenders’ interest in the Collateral and to any payments to be
      made under such policies. All certificates of insurance are to be delivered
      to
      the Collateral Agent and the policies are to be premium prepaid, with the loss
      payable and additional insured endorsement in favor of the Collateral Agent
      and
      such other Persons as the Collateral Agent may designate from time to time,
      and
      shall provide for not less than 30 days prior written notice to the Collateral
      Agent of the exercise of any right of cancellation. If any Loan Party or any
      of
      its Subsidiaries fails to maintain such insurance, the Collateral Agent may
      arrange for such insurance, but at the Borrower’s expense and without any
      responsibility on the Collateral Agent’s part for obtaining the insurance, the
      solvency of the insurance companies, the adequacy of the coverage, or the
      collection of claims. Upon the occurrence and during the continuance of an
      Event
      of Default, the Collateral Agent shall have the sole right, in the name of
      the
      Lenders, any Loan Party and its Subsidiaries, to file claims under any insurance
      policies, to receive, receipt and give acquittance for any payments that may
      be
      payable thereunder, and to execute any and all endorsements, receipts, releases,
      assignments, reassignments or other documents that may be necessary to effect
      the collection, compromise or settlement of any claims under any such insurance
      policies.

     

    
      
        
        

      

      
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    (i) Obtaining
      of Permits, Etc.
      Obtain,
      maintain and preserve, and cause each of its Subsidiaries to obtain, maintain
      and preserve, and take all necessary action to timely renew, all permits,
      licenses, authorizations, approvals, entitlements and accreditations which
      are
      necessary or useful in the proper conduct of its business.

     

    (j) Environmental.
      (i)  Keep any property either owned or operated by it or any of its
      Subsidiaries free of any Environmental Liens; (ii) comply, and cause each
      of its Subsidiaries to comply, in all material respects with Environmental
      Laws
      and provide to the Collateral Agent any documentation of such compliance which
      the Collateral Agent may reasonably request; (iii) provide the Agents
      written notice within 5 days of any Release of a Hazardous Material in excess
      of
      any reportable quantity from or onto property owned or operated by it or any
      of
      its Subsidiaries and take any Remedial Actions required to abate said Release;
      (iv) promptly provide the Agents with written notice within 10 days of the
      receipt of any of the following: (A) notice that an Environmental Lien has
      been filed against any property of any Loan Party or any of its Subsidiaries;
      (B) commencement of any Environmental Action or notice that an
      Environmental Action will be filed against any Loan Party or any of its
      Subsidiaries; and (C) notice of a violation, citation or other
      administrative order which could
      reasonably be expected to result in
      a
      Material Adverse Effect and (v) defend, indemnify and hold harmless the
      Agents and the Lenders and their transferees, and their respective employees,
      agents, officers and directors, from and against any claims, demands, penalties,
      fines, liabilities, settlements, damages, costs or expenses (including attorney
      and consultant fees, investigation and laboratory fees, court costs and
      litigation expenses) arising out of (A) the presence, disposal, release or
      threatened release of any Hazardous Materials on any property at any time owned
      or occupied by any Loan Party or any of its Subsidiaries (or its predecessors
      in
      interest or title), (B) any personal injury (including wrongful death) or
      property damage (real or personal) arising out of or related to such Hazardous
      Materials, (C) any investigation, lawsuit brought or threatened, settlement
      reached or government order relating to such Hazardous Materials, (D) any
      violation of any Environmental Law or (E) any Environmental Action filed against
      any Agent or any Lender.

     

    (k) Further
      Assurances.
      Take
      such action and execute, acknowledge and deliver, and cause each of its
      Subsidiaries to take such action and execute, acknowledge and deliver, at its
      sole cost and expense, such agreements, instruments or other documents as any
      Agent may reasonably require from time to time in order (i) to carry out
      more effectively the purposes of this Agreement and the other Loan Documents,
      (ii) to subject to valid and perfected first priority Liens (subject to
      Permitted Liens) any of the Collateral or any other property of any Loan Party
      and its Subsidiaries, (iii) to establish and maintain the validity and
      effectiveness of any of the Loan Documents and the validity, perfection and
      priority of the Liens intended to be created thereby, and (iv) to better
      assure, convey, grant, assign, transfer and confirm unto each Agent and each
      Lender the rights now or hereafter intended to be granted to it under this
      Agreement or any other Loan Document. In furtherance of the foregoing, to the
      maximum extent permitted by applicable law, each Loan Party (A) authorizes
      each Agent to execute any such agreements, instruments or other documents in
      such Loan Party’s name and to file such agreements, instruments or other
      documents in any appropriate filing office, (B) authorizes each Agent to file
      any financing statement required hereunder or under any other Loan Document,
      and
      any continuation statement or amendment with respect thereto, in any appropriate
      filing office without the signature of such Loan Party, and (C) ratifies
      the filing of any financing statement, and any continuation statement or
      amendment with respect thereto, filed without the signature of such Loan Party
      prior to the date hereof.

     

    
      
        
        

      

      
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    (l) Change
      in Collateral; Collateral Records.
      (i)
      Regarding Collateral that collectively totals $250,000 in value, give the
      Collateral Agent not less than 15 days subsequent written notice of any
      change in the location of such Collateral, other than to (or in-transit between)
      locations set forth on Schedule 6.01(ff)
      and with
      respect to which the Collateral Agent has filed financing statements and
      otherwise fully perfected its Liens thereon, (ii) advise the Collateral
      Agent promptly, in sufficient detail, of any material adverse change relating
      to
      the type, quantity or quality of such Collateral or the Lien granted thereon
      and
      (iii) execute and deliver, and cause each of its Subsidiaries to execute
      and deliver, to the Collateral Agent for the benefit of the Agents and the
      Lenders from time to time, solely for the Collateral Agent’s convenience in
      maintaining a record of such Collateral, such written statements and schedules
      as the Collateral Agent may reasonably require, designating, identifying or
      describing the Collateral.

     

    (m) Collateral
      Access Agreements.
      Use
      reasonable commercial efforts to obtain written access agreements, limited
      to
      sites on real property owned or leased by the Borrower, in form and substance
      satisfactory to the Collateral Agent, providing access to Collateral on such
      properties in order to remove Collateral from the properties during an Event
      of
      Default.

     

    (n) Subordination.
      Cause
      all Indebtedness and other obligations now or hereafter owed by it to any of
      its
      Affiliates, to be subordinated in right of payment and security to the
      Indebtedness and other Obligations owing to the Agents and the Lenders in
      accordance with a subordination agreement in form and substance satisfactory
      to
      the Agents.

     

    (o) After
      Acquired Property.
      Upon
      the acquisition by it or any of its Subsidiaries of any After Acquired Property,
      immediately so notify the Collateral Agent, setting forth with specificity
      a
      description of the interest acquired, the location of the real property, any
      structures or improvements thereon and either an appraisal or such Loan Party’s
      good-faith estimate of the current value of such real property (for purposes
      of
      this Section, the “Current
      Value”).
      The
      Collateral Agent shall notify such Loan Party whether it intends to require
      a
      mortgage and the other documents referred to below. Upon receipt of such notice
      requesting a mortgage, the Person which has acquired such After Acquired
      Property shall immediately furnish to the Collateral Agent the following, each
      in form and substance satisfactory to the Collateral Agent: (i) a mortgage
      with respect to such real property and related assets located at the After
      Acquired Property, each duly executed by such Person and in recordable form;
      (ii) evidence of the recording of the mortgage referred to in clause (i)
      above in such office or offices as may be necessary or, in the opinion of the
      Collateral Agent, desirable to create and perfect a valid and enforceable first
      priority lien on the property purported to be covered thereby or to otherwise
      protect the rights of the Agents and the Lenders thereunder, (iii) to the
      extent requested by the Collateral Agent, one or more of the following (A)
      a
      title insurance policy, (B) a survey of such real property, certified to
      the Collateral Agent and to the issuer of the title insurance policy by a
      licensed professional surveyor reasonably satisfactory to the Collateral Agent,
      (C) Phase I Environmental Site Assessments with respect to such real
      property, certified to the Collateral Agent by a company reasonably satisfactory
      to the Collateral Agent, and (D) such other documents or instruments
      (including opinions of counsel) as the Collateral Agent may reasonably require.
      The Borrower shall pay all fees and expenses, including reasonable attorneys
      fees and expenses, and all title insurance charges and premiums, in connection
      with each Loan Party’s obligations under this Section 7.01(o).

     

    
      
        
        

      

      
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    (p) Fiscal
      Year.
      Cause
      the Fiscal Year of the Borrower and its Subsidiaries to end on October 31st
      of
      each calendar year unless the Agents consent to a change in such fiscal year
      of
      Borrower and its Subsidiaries (and appropriate related changes to this
      Agreement).

     

    (q) Borrowing
      Base.
      Maintain all Revolving Loans in compliance with the then current Borrowing
      Base.

     

    (r) [intentionally
      omitted]

     

    (s) Licenses
      and Permits.
      (i)
      Ensure that all material licenses (including all Gaming Licenses), permits,
      consents and similar rights required from any Governmental Authority (including
      all Gaming Authorities) for the ownership, use or operation of the businesses
      or
      properties now owned or operated by the Borrower or any of its Subsidiaries
      remain in full force and effect except for such licenses, permits, consents
      and
      similar rights the failure to obtain, individually or in the aggregate, could
      not reasonably be expected to result in a Material Adverse Effect; and (ii)
      comply, in all material respects, with all such licenses, permits, consents
      and
      similar rights or any other requirements of the 

     

    Gaming
      Authorities or any other Governmental Authority.

     

    Section
      7.02 Negative
      Covenants.
      So long
      as any principal of or interest on any Loan, or any other Obligation (other
      than
      unasserted contingent indemnification Obligations) shall remain unpaid or any
      Lender shall have any Commitment hereunder, each Loan Party shall not and shall
      not permit any of its Subsidiaries to:

     

    (a) Liens,
      Etc.
      Create,
      incur, assume or suffer to exist, or permit any of its Subsidiaries to create,
      incur, assume or suffer to exist, any Lien upon or with respect to any of its
      properties, whether now owned or hereafter acquired; file or suffer to exist
      under the Uniform Commercial Code or any similar law or statute of any
      jurisdiction, a financing statement (or the equivalent thereof) that names
      it or
      any of its Subsidiaries as debtor; sign or suffer to exist any security
      agreement authorizing any secured party thereunder to file such financing
      statement (or the equivalent thereof); sell any of its property or assets
      subject to an understanding or agreement, contingent or otherwise, to repurchase
      such property or assets (including sales of accounts receivable) with recourse
      to it or any of its Subsidiaries or assign or otherwise transfer, or permit
      any
      of its Subsidiaries to assign or otherwise transfer, any account or other right
      to receive income; other than, as to all of the above, Permitted Liens;
provided,
      that,
      no Liens shall be permitted on any assets included in the Borrowing Base other
      than the Liens of the Collateral Agent for the benefit of the Agents and the
      Lenders.

     

    
      
        
        

      

      
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    (b) Indebtedness.
      Create,
      incur, assume, guarantee or suffer to exist, or otherwise become or remain
      liable with respect to, or permit any of its Subsidiaries to create, incur,
      assume, guarantee or suffer to exist or otherwise become or remain liable with
      respect to, any Indebtedness other than Permitted Indebtedness.

     

    (c) Fundamental
      Changes; Dispositions.
      Wind-up, liquidate or dissolve, or merge, consolidate or amalgamate with any
      Person, or convey, sell, lease or sublease, transfer or otherwise dispose of,
      whether in one transaction or a series of related transactions, all or any
      part
      of its business, property or assets, whether now owned or hereafter acquired
      (or
      agree to do any of the foregoing), or purchase or otherwise acquire, whether
      in
      one transaction or a series of related transactions, all or substantially all
      of
      the assets of any Person (or any division thereof) (or agree to do any of the
      foregoing), or permit any of its Subsidiaries to do any of the foregoing;
provided,
      however,
      that

     

    (i) any
      wholly-owned Subsidiary of any Loan Party (other than the Borrower) may be
      merged into such Loan Party or another wholly-owned Subsidiary of such Loan
      Party, or may consolidate with another wholly-owned Subsidiary of such Loan
      Party, so long as (A) no other provision of this Agreement would be
      violated thereby, (B) such Loan Party gives the Agents at least 30 days
      prior written notice of such merger or consolidation, (C) no Default or
      Event of Default shall have occurred and be continuing either before or
      immediately after giving effect to such transaction, (D) the Lenders’
rights in any Collateral, including the existence, perfection and priority
      of
      any Lien thereon, are not adversely affected by such merger or consolidation
      and
      (E) the surviving Subsidiary, if any, is joined as a Loan Party hereunder
      and is a party to a Guaranty and a Security Agreement and the Capital Stock
      of
      which Subsidiary is the subject of a Security Agreement, in each case, which
      is
      in full force and effect on the date of and immediately after giving effect
      to
      such merger or consolidation; 

     

    (ii) any
      Loan
      Party and its Subsidiaries may make Permitted Dispositions; and

     

    (iii) Borrower
      may wind down and subsequently dissolve GameTech Arizona Corporation, a
      Subsidiary of Borrower that was incorporated in Arizona, as soon as possible
      after the completion of litigation and the passing of any right of appeal
      regarding that certain lawsuit Fortunet, Inc. v. GameTech International, Inc.
      and GameTech Arizona Corporation (U.S. District Court, District of
      Nevada).

     

    (d) Change
      in Nature of Business; Change in Independent Certified Public
      Accountant.
      Make,
      or permit any of its Subsidiaries to make, any material change in the nature
      of
      its business as described in Section 6.01(l)
      or
      acquire any properties or assets that are not reasonably related to the conduct
      of such business activities. Make any change in its independent certified public
      accountant without the prior written consent of the Agents, which may not be
      unreasonably withheld or delayed.

     

    
      
        
        

      

      
        -69-

        
          

        

      

      
        
        

      

    

     

    (e) Loans,
      Advances, Investments, Etc.
      Make or
      commit or agree to make any loan, advance guarantee of obligations, other
      extension of credit or capital contributions to, or hold or invest in or commit
      or agree to hold or invest in, or purchase or otherwise acquire or commit or
      agree to purchase or otherwise acquire any shares of the Capital Stock, bonds,
      notes, debentures or other securities of, or make or commit or agree to make
      any
      other investment in, any other Person, or purchase or own any futures contract
      or otherwise become liable for the purchase or sale of currency or other
      commodities at a future date in the nature of a futures contract, or purchase
      all or substantially all of the assets of any other Person, or permit any of
      its
      Subsidiaries to do any of the foregoing, except for: (i) investments
      existing on the date hereof, as set forth on Schedule 7.02(e)
      hereto,
      but not any increase in the amount thereof as set forth in such Schedule or
      any
      other modification of the terms thereof, (ii) loans, advances and
      investments by a Loan Party to or in another Loan Party, made in the ordinary
      course of business and not exceeding in the aggregate for all such loans and
      advances by all of the Loan Parties at any one time outstanding $100,000,
      (iii) Permitted Investments and (iv) equity contributions collectively
      totaling no more than $50,000 in Borrower’s Subsidiaries.

     

    (f) Lease
      Obligations.
      Create,
      incur or suffer to exist, or permit any of its Subsidiaries to create, incur
      or
      suffer to exist, any obligations as lessee (i) for the payment of rent for
      any real or personal property in connection with any sale and leaseback
      transaction, or (ii) for the payment of rent for any real or personal
      property under leases or agreements to lease other than (A) Capitalized Lease
      Obligations which would not cause the aggregate amount of all obligations under
      Capitalized Leases entered into after the Effective Date owing by all Loan
      Parties and their Subsidiaries in any Fiscal Year to exceed the amounts set
      forth in Section 7.03(d),
      and
      (B) Operating Lease Obligations which would not cause the aggregate amount
      of
      all Operating Lease Obligations owing by all Loan Parties and their Subsidiaries
      in any Fiscal Year to exceed $2,000,000.

     

    (g) [intentionally
      omitted]

     

    (h) Restricted
      Payments.  (i)  Declare
      or pay any dividend or other distribution, direct or indirect, on account of
      any
      Capital Stock of any Loan Party or any of its Subsidiaries, now or hereafter
      outstanding, (ii) make any repurchase, redemption, retirement, defeasance,
      sinking fund or similar payment, purchase or other acquisition for value, direct
      or indirect, of any Capital Stock of any Loan Party or any direct or indirect
      parent of any Loan Party, now or hereafter outstanding, (iii) make any payment
      to retire, or to obtain the surrender of, any outstanding warrants, options
      or
      other rights for the purchase or acquisition of shares of any class of Capital
      Stock of any Loan Party, now or hereafter outstanding, or (iv) pay any
      management fees or any other fees or expenses (including the reimbursement
      thereof by any Loan Party or any of its Subsidiaries) pursuant to any
      management, consulting or other services agreement to any of the shareholders
      or
      other equityholders of any Loan Party or any of its Subsidiaries or other
      Affiliates, or to any other Subsidiaries or Affiliates of any Loan Party;
provided,
      however,
      that
      the preceding shall not include (i) amounts collectively totaling $500,000
      that
      are used to purchase or buy back Common Stock and/or options for Common Stock
      from former or current employees and directors of Borrower, (ii) the amount
      of
      compensation and expense reimbursement paid to Borrower’s chairman as set forth
      on Schedule
      7.02(h),
      or
      (iii) the Earn Out Payment. The payments specified in clauses (i), (ii), and
      (iii) of the immediately preceding sentence may be made only on the condition
      that no Event of Default either is in effect at the time such payment is to
      be
      made or would result from the making of such payment.

     

    
      
        
        

      

      
        -70-

        
          

        

      

      
        
        

      

    

     

    (i) Federal
      Reserve Regulations.
      Permit
      any Loan or the proceeds of any Loan under this Agreement to be used for any
      purpose that would cause such Loan to be a margin loan under the provisions
      of
      Regulation T, U or X of the Board.

     

    (j) Transactions
      with Affiliates.
      Enter
      into, renew, extend or be a party to, or permit any of its Subsidiaries to
      enter
      into, renew, extend or be a party to, any transaction or series of related
      transactions (including the purchase, sale, lease, transfer or exchange of
      property or assets of any kind or the rendering of services of any kind) with
      any Affiliate, except (i) in the ordinary course of business in a manner
      and to an extent consistent with past practice and necessary or desirable for
      the prudent operation of its business, for fair consideration and on terms
      no
      less favorable to it or its Subsidiaries than would be obtainable in a
      comparable arm’s length transaction with a Person that is not an Affiliate
      thereof, (ii) transactions with another Loan Party and (iii) transactions
      permitted by Section
      7.02(e)
      or
      (h).

     

    (k) Limitations
      on Dividends and Other Payment Restrictions Affecting
      Subsidiaries.
      Create
      or otherwise cause, incur, assume, suffer or permit to exist or become effective
      any consensual encumbrance or restriction of any kind on the ability of any
      Subsidiary of any Loan Party (i) to pay dividends or to make any other
      distribution on any shares of Capital Stock of such Subsidiary owned by any
      Loan
      Party or any of its Subsidiaries, (ii) to pay or prepay or to subordinate
      any Indebtedness owed to any Loan Party or any of its Subsidiaries,
      (iii) to make loans or advances to any Loan Party or any of its
      Subsidiaries or (iv) to transfer any of its property or assets to any Loan
      Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any
      of
      the foregoing; provided, however, that
      nothing in any of clauses (i) through (iv) of this Section 7.02(k)
      shall
      prohibit or restrict compliance with:

     

    (A) this
      Agreement and the other Loan Documents;

     

    (B) any
      agreements in effect on the date of this Agreement and described on Schedule 7.02(k);

     

    (C) any
      applicable law, rule or regulation (including applicable currency control laws
      and applicable state corporate statutes restricting the payment of dividends
      in
      certain circumstances);

     

    (D) in
      the
      case of clause (iv), any agreement setting forth customary restrictions on
      the
      subletting, assignment or transfer of any property or asset that is leased
      or
      licensed; or

     

    (E) in
      the
      case of clause (iv), any agreement, instrument or other document evidencing
      a
      Permitted Lien that restricts, on customary terms, the transfer of any property
      or assets subject thereto.

     

    (l) Limitation
      on Issuance of Capital Stock.
      Except
      for the issuance or sale of common stock or Permitted Preferred Stock by the
      Borrower, issue or sell or enter into any agreement or arrangement for the
      issuance and sale of, or permit any of its Subsidiaries to issue or sell or
      enter into any agreement or arrangement for the issuance and sale of, any shares
      of its Capital Stock, any securities convertible into or exchangeable for its
      Capital Stock or any warrants.

     

    
      
        
        

      

      
        -71-

        
          

        

      

      
        
        

      

    

     

    (m) Modifications
      of Indebtedness, Organizational Documents and Certain Other Agreements;
      Etc.
      (i)
      Amend, modify or otherwise change (or permit the amendment, modification or
      other change in any manner of) any of the provisions of any of its or its
      Subsidiaries’ Indebtedness or of any instrument or agreement (including any
      purchase agreement, indenture, loan agreement or security agreement) relating
      to
      any such Indebtedness if such amendment, modification or change would shorten
      the final maturity or average life to maturity of, or require any payment to
      be
      made earlier than the date originally scheduled on, such Indebtedness, would
      increase the interest rate applicable to such Indebtedness, would change the
      subordination provisions, if any, of such Indebtedness, or would otherwise
      be
      adverse to the Lenders or the issuer of such Indebtedness in any respect,
      (ii) except for the Obligations, make any voluntary or optional payment,
      prepayment, redemption, defeasance, sinking fund payment or other acquisition
      for value of any of its or its Subsidiaries’ Indebtedness (including by way of
      depositing money or securities with the trustee therefor before the date
      required for the purpose of paying any portion of such Indebtedness when due),
      or refund, refinance, replace or exchange any other Indebtedness for any such
      Indebtedness (except to the extent such Indebtedness is otherwise expressly
      permitted by the definition of “Permitted Indebtedness”), or make any payment,
      prepayment, redemption, defeasance, sinking fund payment or repurchase of any
      outstanding Indebtedness as a result of any asset sale, change of control,
      issuance and sale of debt or equity securities or similar event, or give any
      notice with respect to any of the foregoing, (iii) except as permitted by
Section
      7.02(c),
      amend,
      modify or otherwise change its name, jurisdiction of organization,
      organizational identification number or FEIN, or (iv) amend, modify or
      otherwise change its certificate of incorporation or bylaws (or other similar
      organizational documents), including by the filing or modification of any
      certificate of designation, or any agreement or arrangement entered into by
      it,
      with respect to any of its Capital Stock (including any shareholders’
agreement), or enter into any new agreement with respect to any of its Capital
      Stock, except any such amendments, modifications or changes or any such new
      agreements or arrangements pursuant to this clause (iv) that either
      individually or in the aggregate, could
      not
      reasonably be expected to result in a Material
      Adverse
      Effect.

     

    (n) Investment
      Company Act of 1940.
      Engage
      in any business, enter into any transaction, use any securities or take any
      other action or permit any of its Subsidiaries to do any of the foregoing,
      that
      would cause it or any of its Subsidiaries to become subject to the registration
      requirements of the Investment Company Act of 1940, as amended, by virtue of
      being an “investment company” or a company “controlled” by an “investment
      company” not entitled to an exemption within the meaning of such
      Act.

     

    (o) CFC
      Debt.
      Allow
      or permit any CFC of any Loan Party (or any of its Subsidiaries) to directly
      or
      indirectly incur any debt other than that owing to such CFC’s
      parent.

     

    (p) ERISA.
      (i)
      Engage, or permit any ERISA Affiliate to engage, in any transaction described
      in
      Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to
      engage, in any prohibited transaction described in Section 406 of ERISA or
      4975
      of the IRC for which a statutory or class exemption is not available or a
      private exemption has not previously been obtained from the U.S. Department
      of
      Labor; (iii) adopt or permit any ERISA Affiliate to adopt any employee welfare
      benefit plan within the meaning of Section 3(1) of ERISA which provides benefits
      to employees after termination of employment other than as required by Section
      601 of ERISA or applicable law; (iv) fail to make any contribution or payment
      to
      any Multiemployer Plan which it or any ERISA Affiliate may be required to make
      under any agreement relating to such Multiemployer Plan, or any law pertaining
      thereto; or (v) fail, or permit any ERISA Affiliate to fail, to pay any required
      installment or any other payment required under Section 412 of the IRC on or
      before the due date for such installment or other payment.

     

    
      
        
        

      

      
        -72-

        
          

        

      

      
        
        

      

    

     

    (q) Environmental.
      Permit
      the use, handling, generation, storage, treatment, release or disposal of
      Hazardous Materials at any property owned or leased by it or any of its
      Subsidiaries, except in compliance with Environmental Laws in a manner that
      such
      handling, generation, storage, treatment, release or disposal of Hazardous
      Materials could not reasonably be expected to result in a Material Adverse
      Effect.

     

    (r) Certain
      Agreements.
      Agree
      to any material amendment or other material change to or material waiver of
      any
      of its rights under any Material Contract.

     

    Section
      7.03 Financial
      Covenants.
      So long
      as any principal of or interest on any Loan, or any other Obligation (other
      than
      unasserted contingent
      indemnification Obligations)
      shall
      remain unpaid or any Lender shall have any Commitment hereunder, each Loan
      Party
      shall not:

     

    (a) Leverage
      Ratio.
      Permit
      the ratio of Consolidated Funded Indebtedness of Borrower and its Subsidiaries
      as of the last day of each fiscal quarter set forth below to TTM EBITDA of
      the
      Borrower and its Subsidiaries for the period ended as of the last day of such
      fiscal quarter to be greater than the applicable ratio set forth
      below:

     

    
      	
              Fiscal
                Quarter End

            	
              Leverage
                Ratio

            
	 	 
	
              April
                30, 2007

            	
              2.00

            
	
              July
                31, 2007

            	
              2.00

            
	
              October
                31, 2007

            	
              2.00

            
	 	 
	
              January
                31, 2008

            	
              1.75

            
	
              April
                30, 2008

            	
              1.75

            
	
              July
                31, 2008

            	
              1.75

            
	
              October
                31, 2008

            	
              1.75

            
	 	 
	
              January
                31, 2009

            	
              1.50

            
	
              April
                30, 2009

            	
              1.50

            
	
              July
                31, 2009

            	
              1.50

            
	
              October
                31, 2009

            	
              1.50

            
	 	 
	
              January
                31, 2010

            	
              1.50

            
	
              April
                30, 2010

            	
              1.50

            
	
              July
                31, 2010

            	
              1.50

            
	
              October
                31, 2010

            	
              1.50

            

    

     

    
      
        
        

      

      
        -73-

        
          

        

      

      
        
        

      

    

     

    
      
        	
                January
                  31, 2011

              	
                1.50

              
	
                April
                  30, 2011

              	
                1.50

              
	
                July
                  31, 2011

              	
                1.50

              
	
                October
                  31, 2011

              	
                1.50

              
	 	 
	
                January
                  31, 2012

              	
                1.50

              

      

    

     

    (b) Fixed
      Charge Coverage Ratio.
      Permit
      the Fixed Charge Coverage Ratio of the Borrower and its Subsidiaries for the
      period of 4 consecutive fiscal quarters ended as of the last day of each fiscal
      quarter set forth below to be less than the applicable ratio set forth opposite
      such date:

     

    
      	
              Fiscal
                Quarter End

            	
              Fixed
                Charge Coverage Ratio

            
	 	 
	
              April
                30, 2007

            	
              1.05

            
	
              July
                31, 2007

            	
              1.05

            
	
              October
                31, 2007

            	
              1.05

            
	 	 
	
              January
                31, 2008

            	
              1.05

            
	
              April
                30, 2008

            	
              1.05

            
	
              July
                31, 2008

            	
              1.05

            
	
              October
                31, 2008

            	
              1.05

            
	 	 
	
              January
                31, 2009

            	
              1.10

            
	
              April
                30, 2009

            	
              1.10

            
	
              July
                31, 2009

            	
              1.10

            
	
              October
                31, 2009

            	
              1.10

            
	 	 
	
              January
                31, 2010

            	
              1.15

            
	
              April
                30, 2010

            	
              1.15

            
	
              July
                31, 2010

            	
              1.15

            
	
              October
                31, 2010

            	
              1.15

            
	 	 
	
              January
                31, 2011

            	
              1.25

            
	
              April
                30, 2011

            	
              1.25

            
	
              July
                31, 2011

            	
              1.25

            
	
              October
                31, 2011

            	
              1.25

            
	 	 
	
              January
                31, 2012

            	
              1.25

            

    

    

    (c) TTM
      EBITDA.
      Permit
      TTM EBITDA of the Borrower and its Subsidiaries for the period ended as of
      the
      last day of each fiscal quarter set forth below to be less than the applicable
      amount set forth opposite such date:

     

    
      
        
        

      

      
        -74-

        
          

        

      

      
        
        

      

    

     

    
      	
              Fiscal
                Quarter End

            	
              TTM
                EBITDA

            
	 	 
	
              April
                30, 2007

            	
              $21,000,000

            
	
              July
                31, 2007

            	
              $21,000,000

            
	
              October
                31, 2007

            	
              $21,000,000

            
	 	 
	
              January
                31, 2008

            	
              $22,000,000

            
	
              April
                30, 2008

            	
              $22,000,000

            
	
              July
                31, 2008

            	
              $22,000,000

            
	
              October
                31, 2008

            	
              $22,000,000

            
	 	 
	
              January
                31, 2009

            	
              $23,000,000

            
	
              April
                30, 2009

            	
              $23,000,000

            
	
              July
                31, 2009

            	
              $23,000,000

            
	
              October
                31, 2009

            	
              $23,000,000

            
	 	 
	
              January
                31, 2010

            	
              $24,000,000

            
	
              April
                30, 2010

            	
              $24,000,000

            
	
              July
                31, 2010

            	
              $24,000,000

            
	
              October
                31, 2010

            	
              $24,000,000

            
	 	 
	
              January
                31, 2011

            	
              $25,000,000

            
	
              April
                30, 2011

            	
              $25,000,000

            
	
              July
                31, 2011

            	
              $25,000,000

            
	
              October
                31, 2011

            	
              $25,000,000

            
	 	 
	
              January
                31, 2012

            	
              $25,000,000

            

    

    

    (d) Capital
      Expenditures.
      Make
      Capital Expenditures in any Fiscal Year in excess of the amount set forth in
      the
      following table for the applicable period (the “Base Fiscal Year”) plus the
      unexpended portion of the amount of the Capital Expenditures set forth in the
      following table for the Fiscal Year immediately prior to the Base Fiscal Year,
      beginning with the fiscal year ending October 31, 2007:

     

    
      	
              Fiscal
                Year 2007

            	
              $14,000,000

            
	
              Fiscal
                Year 2008

            	
              $14,000,000

            
	
              Fiscal
                Year 2009

            	
              $14,000,000

            
	
              Fiscal
                Year 2010

            	
              $14,000,000

            
	
              Fiscal
                Year 2011

            	
              $14,000,000

            
	
              Fiscal
                Year 2012

            	
              $14,000,000

            

    

     

    
      
        
        

      

      
        -75-

        
          

        

      

      
        
        

      

    

     

    (e) Qualified
      Cash.
      Permit
      the amount of Qualified Cash at any time to be less than
      $4,000,000.

     

    ARTICLE
      VIII

     

    MANAGEMENT,
      COLLECTION AND STATUS OF

    ACCOUNTS
      RECEIVABLE AND OTHER COLLATERAL

     

    Section
      8.01 Collection
      of Accounts Receivable; Management of Collateral.  

     

    (a) On
      or
      prior to the Effective Date, the Borrower shall assist the Administrative Agent
      in establishing, and, during the term of this Agreement, maintaining blocked
      accounts (the “Blocked
      Accounts”)
      with
      respect to the Borrower’s principal concentration accounts with the financial
      institution set forth on Schedule
      8.01
      hereto
      (the “Blocked
      Account Bank”),
      and
      entering into a control agreement relating to the Blocked Account with the
      Borrower, Collateral Agent, and the Blocked Account Bank. After the occurrence
      and during the continuation of an Event of Default, each of the Borrower and
      each of its Subsidiaries shall irrevocably instruct its Account Debtors, with
      respect to its Accounts Receivable, to remit all payments to be made by them,
      whether by means of checks or other drafts or by wire transfer or by Automated
      Clearing House, Inc. payment, to a Blocked Account and shall instruct the
      Blocked Account Bank to deposit all amounts received by it to a Blocked Account
      at such Blocked Account Bank on the day received or, if such day is not a
      Business Day, on the next succeeding Business Day; provided,
      however,
      that
      Borrower and each of its Subsidiaries, with respect to payments of Accounts
      Receivable it receives directly, shall collect, receive, and deposit all
      payments, whether by means of checks or other drafts or by wire transfer or
      by
      Automated Clearing House, Inc. payment, in accordance with Borrower’s or
      Borrower’s Subsidiary’s then current payment processing practices, as
      applicable, provided that all such payments, as applicable, shall be deposited
      by Borrower at Wells Fargo-AZ, 5340 Kietzke Lane, Suite 201, Reno, Nevada,
      account number 4159539352, routing number 121000248, as soon as reasonably
      possible, but in any event within 3 Business Days of receipt. Each of the
      Borrower and each Subsidiary will enforce, collect and receive all amounts
      owing
      on their Accounts Receivable for the Agents’ benefit and on the Administrative
      Agent’s behalf, but at the Borrower’s or such Subsidiary’s expense; such
      privilege shall terminate, at the election of any Agent, after the occurrence
      and during the continuation of an Event of Default. After the occurrence and
      during the continuation of an Event of Default, all checks, drafts, notes,
      money
      orders, acceptances, cash and other evidences of Indebtedness received directly
      by the Borrower or any of its Subsidiaries from any Account Debtor, as proceeds
      from their Accounts Receivable, or as proceeds of any other Collateral, shall
      be
      held by the Borrower or such Subsidiaries in trust for the Agents and the
      Lenders and upon receipt be deposited by the Borrower or such Subsidiaries
      in
      original form and no later than the next Business Day after receipt thereof
      into
      a Blocked Account. The Borrower and such Subsidiaries shall not commingle such
      collections with their own funds or with the proceeds of any assets not included
      in the Collateral. All funds received in the Blocked Accounts after the
      occurrence and during the continuance of an Event of Default, upon request
      by
      Collateral Agent, shall be sent by wire transfer or Automated Clearing House,
      Inc. payment to the Payment Office to be credited to the Administrative Agent’s
      Account for application at the end of each Business Day when such funds are
      received in Administrative Agent’s Account to reduce the then principal balance
      of the Loans, conditional upon final payment to the Administrative Agent, and
      at
      all other times, may be transferred to an operating account of the Borrower
      or
      one of its Subsidiaries. No checks, drafts or other instruments received by
      the
      Administrative Agent shall constitute final payment to the Administrative Agent
      unless and until such checks, drafts or instruments have actually been
      collected.

     

    
      
        
        

      

      
        -76-

        
          

        

      

      
        
        

      

    

     

    (b) After
      the
      occurrence and during the continuance of an Event of Default, the Collateral
      Agent
      may send
      a notice of assignment or notice of the Lenders’ security interest to any and
      all Account Debtors and, thereafter, the Collateral
      Agent
      shall
      have the sole right to collect the Accounts Receivable and payment intangibles
      of the Borrower and its Subsidiaries or take possession of the Collateral and
      the books and records relating thereto. After the occurrence and during the
      continuation of an Event of Default, the Borrower and its Subsidiaries shall
      not, without prior written consent of the Collateral
      Agent,
      grant
      any extension of time of payment of any Account Receivable or payment
      intangible, compromise or settle any Account Receivable or payment intangible
      for less than the full amount thereof, release, in whole or in part, any Person
      or property liable for the payment thereof, or allow any credit or discount
      whatsoever thereon.

     

    (c) The
      Borrower hereby appoints each Agent or its designee on behalf of such Agent
      as
      the Borrower’s attorney-in-fact with power exercisable during the continuance of
      an Event of Default to (i) endorse the Borrower’s name upon any notes,
      acceptances, checks, drafts, money orders or other evidences of payment relating
      to the Accounts Receivable or payment intangibles of the Borrower, (ii) sign
      the
      Borrower’s name on any invoice or bill of lading relating to any of the Accounts
      Receivable or payment intangibles of the Borrower, drafts against Account
      Debtors with respect to Accounts Receivable or payment intangibles of the
      Borrower, assignments and verifications of Accounts Receivable or payment
      intangibles and notices to Account Debtors with respect to Accounts Receivable
      or payment intangibles of the Borrower, (iii) send verification of Accounts
      Receivable of the Borrower, and (iv) notify the Postal Service authorities
      to
      change the address for delivery of mail addressed to the Borrower to such
      address as such Agent may designate and to do all other acts and things
      necessary to carry out this Agreement. All acts of said attorney or designee
      are
      hereby ratified and approved, and said attorney or designee shall not be liable
      for any acts of omission or commission (other than acts of omission or
      commission constituting gross negligence or willful misconduct as determined
      by
      a final judgment of a court of competent jurisdiction), or for any error of
      judgment or mistake of fact or law; this power being coupled with an interest
      is
      irrevocable until all of the Loans and other Obligations under the Loan
      Documents are paid in full and all of the Commitments are
      terminated.

     

    (d) Nothing
      herein contained shall be construed to constitute any Agent as agent of the
      Borrower for any purpose whatsoever, and the Agents shall not be responsible
      or
      liable for any shortage, discrepancy, damage, loss or destruction of any part
      of
      the Collateral wherever the same may be located and regardless of the cause
      thereof (other than from acts of omission or commission constituting gross
      negligence or willful misconduct as determined by a final judgment of a court
      of
      competent jurisdiction). The Agents shall not, under any circumstance or in
      any
      event whatsoever, have any liability for any error or omission or delay of
      any
      kind occurring in the settlement, collection or payment of any of the Accounts
      Receivable of the Borrower or any instrument received in payment thereof or
      for
      any damage resulting therefrom (other than acts of omission or commission
      constituting gross negligence or willful misconduct as determined by a final
      judgment of a court of competent jurisdiction). The Agents, by anything herein
      or in any assignment or otherwise, do not assume any of the obligations under
      any contract or agreement assigned to any Agent and shall not be responsible
      in
      any way for the performance by the Borrower of any of the terms and conditions
      thereof.

     

    
      
        
        

      

      
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    (e) If
      any
      Account Receivable of the Borrower includes a charge for any tax payable to
      any
      Governmental Authority, each Agent is hereby authorized (but in no event
      obligated) in its discretion to pay the amount thereof to the proper taxing
      authority for the Borrower’s account and to charge the Borrower therefor. The
      Borrower shall notify the Agents if any Account Receivable of the Borrower
      includes any taxes due to any such Governmental Authority and, in the absence
      of
      such notice, the Agents shall have the right to retain the full proceeds of
      such
      Account Receivable and shall not be liable for any taxes that may be due by
      reason of the sale and delivery creating such Account Receivable.

     

    (f) Notwithstanding
      any other terms set forth in the Loan Documents, the rights and remedies of
      the
      Agents and the Lenders herein provided, and the obligations of the Loan Parties
      set forth herein, are cumulative of, may be exercised singly or concurrently
      with, and are not exclusive of, any other rights, remedies or obligations set
      forth in any other Loan Document or as provided by law.

     

    Section
      8.02 [intentionally
      omitted]

     

    Section
      8.03 [intentionally
      omitted]

     

    Section
      8.04 Collateral
      Custodian.
      Upon
      the occurrence and during the continuance of any Event of Default, the
      Collateral Agent may at any time and from time to time employ and maintain
      on
      the premises of any Loan Party a custodian selected by the Collateral Agent
      who
      shall have full authority to do all acts necessary to protect the Agents’ and
      the Lenders’ interests. Each Loan Party hereby agrees to, and to cause its
      Subsidiaries to, cooperate with any such custodian and to do whatever the
      Collateral Agent may reasonably request to preserve the Collateral. All costs
      and expenses incurred by the Collateral Agent by reason of the employment of
      the
      custodian shall be the responsibility of the Borrower and charged to the Loan
      Account.

     

    ARTICLE
      IX

     

    EVENTS
      OF DEFAULT

     

    Section
      9.01 Events
      of Default.
      If any
      of the following events shall occur:

     

    (a) the
      Borrower shall fail to pay any principal of or interest on any Loan, any
      Collateral Agent Advance, or any fee, indemnity or other amount payable under
      this Agreement or any other Loan Document when due (whether by scheduled
      maturity, required prepayment, acceleration, demand or otherwise); 

     

    (b) any
      representation or warranty made or deemed made by or on behalf of any Loan
      Party
      or by any officer of the foregoing under or in connection with any Loan Document
      or under or in connection with any report, certificate, or other document
      delivered to any Agent, any Lender pursuant to any Loan Document shall have
      been
      incorrect in any material respect when made or deemed made;

     

    
      
        
        

      

      
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    (c) any
      Loan
      Party shall fail to perform or comply with any covenant or agreement contained
      in Article VII or Article VIII, or any Loan Party shall fail to perform or
      comply with any covenant or agreement contained in any Security Agreement to
      which it is a party or any mortgage to which it is a party, and such failure
      shall remain unremedied for 10 Business Days after the earlier of an Authorized
      Officer becoming aware of such failure and the date written notice of such
      default shall have been given by any Agent or Lender to such Loan
      Party;

     

    (d) any
      Loan
      Party shall fail to perform or comply with any other term, covenant or agreement
      contained in any Loan Document to be performed or observed by it and, except
      as
      set forth in subsections
      (a), (b) and (c)
      of this
Section 9.01,
      such
      failure, if capable of being remedied, shall remain unremedied for 15 days
      after
      the earlier of an Authorized Officer becoming aware of such failure and the
      date
      written notice of such default shall have been given by any Agent to such Loan
      Party;

     

    (e) any
      Borrower or any of its Subsidiaries shall fail to pay any principal of or
      interest or premium on any of its Indebtedness (excluding the Obligations)
      to
      the extent that the aggregate principal amount of all such Indebtedness exceeds
      $1,000,000 when due (whether by scheduled maturity, required prepayment,
      acceleration, demand or otherwise) and such failure shall continue after the
      applicable grace period, if any, specified in the agreement or instrument
      relating to such Indebtedness, or any other default under any agreement or
      instrument relating to any such Indebtedness, or any other event, shall occur
      and shall continue after the applicable grace period, if any, specified in
      such
      agreement or instrument, if the effect of such default or event is to
      accelerate, or to permit the acceleration of, the maturity of such Indebtedness;
      or any such Indebtedness shall be declared to be due and payable, or required
      to
      be prepaid (other than by a regularly scheduled required prepayment), redeemed,
      purchased or defeased or an offer to prepay, redeem, purchase or defease such
      Indebtedness shall be required to be made, in each case, prior to the stated
      maturity thereof;

     

    (f) any
      Borrower or any of its Subsidiaries (i) shall institute any proceeding or
      voluntary case seeking to adjudicate it a bankrupt or insolvent, or seeking
      dissolution, liquidation, winding up, reorganization, arrangement, adjustment,
      protection, relief or composition of it or its debts under any law relating
      to
      bankruptcy, insolvency, reorganization or relief of debtors, or seeking the
      entry of an order for relief or the appointment of a receiver, trustee,
      custodian or other similar official for any such Person or for any substantial
      part of its property, (ii) shall be generally not paying its debts as such
      debts
      become due or shall admit in writing its inability to pay its debts generally,
      (iii) shall make a general assignment for the benefit of creditors, or (iv)
      shall take any action to authorize or effect any of the actions set forth above
      in this subsection
      (f);

     

    (g) any
      proceeding shall be instituted against any Borrower or any of its Subsidiaries
      seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution,
      liquidation, winding up, reorganization, arrangement, adjustment, protection,
      relief of debtors, or seeking the entry of an order for relief or the
      appointment of a receiver, trustee, custodian or other similar official for
      any
      such Person or for any substantial part of its property, and either such
      proceeding shall remain undismissed or unstayed for a period of 30 days or
      any
      of the actions sought in such proceeding (including the entry of an order for
      relief against any such Person or the appointment of a receiver, trustee,
      custodian or other similar official for it or for any substantial part of its
      property) shall occur;

     

    
      
        
        

      

      
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    (h) any
      provision of any Loan Document shall at any time for any reason (other than
      pursuant to the express terms thereof) cease in any material respect to be
      valid
      and binding on or enforceable against any Loan Party intended to be a party
      thereto, or the validity or enforceability thereof shall be contested by any
      party thereto, or a proceeding shall be commenced by any Loan Party or any
      Governmental Authority having jurisdiction over any of them, seeking to
      establish the invalidity or unenforceability thereof, or any Loan Party shall
      deny in writing that it has any liability or obligation purported to be created
      under any Loan Document;

     

    (i) any
      Security Agreement, any mortgage or any other security document, after delivery
      thereof pursuant hereto, shall for any reason fail or cease to create a valid
      and perfected and, except to the extent permitted by the terms hereof or
      thereof, first priority Lien in favor of the Collateral Agent for the benefit
      of
      the Agents and the Lenders on any Collateral purported to be covered
      thereby;

     

    (j) any
      bank
      at which any deposit account, blocked account, or lockbox account of any Loan
      Party is maintained shall fail to comply in any material respect with any of
      the
      terms of any deposit account, blocked account, lockbox account or similar
      agreement to which such bank is a party or any securities intermediary,
      commodity intermediary or other financial institution at any time in custody,
      control or possession of any investment property of any Loan Party shall fail
      to
      comply in any material respect with any of the terms of any investment property
      control agreement to which such Person is a party;

     

    (k) one
      or
      more judgments, awards, or orders (or any settlement of any claim that, if
      breached, could result in a judgment, order, or award) for the payment of money
      exceeding $1,000,000 in the aggregate shall be rendered against Borrower or
      any
      of its Subsidiaries and remain unsatisfied, or any Borrower or any of its
      Subsidiaries shall agree to the settlement of any one or more pending or
      threatened actions, suits, or proceedings affecting any Loan Party before any
      court or other Governmental Authority or any arbitrator or mediator, providing
      for the payment of money exceeding $1,000,000 in the aggregate, and in the
      case
      of any such judgment or order either (i) enforcement proceedings shall have
      been commenced by any creditor upon any such judgment, order, award or
      settlement, or (ii) there shall be a period of 10 consecutive days after
      entry thereof during which a stay of enforcement of any such judgment, order,
      award or settlement, by reason of a pending appeal or otherwise, shall not
      be in
      effect; provided,
      however,
      that
      any such judgment, order, award or settlement shall not give rise to an Event
      of
      Default under this subsection if and for so long as (A) the amount of such
      judgment, order, award or settlement is covered by a valid and binding policy
      of
      insurance between the defendant and the insurer covering full payment thereof
      and (B) such insurer has been notified, and has not disputed the claim made
      for payment, of the amount of such judgment, order, award or
      settlement;

     

    
      
        
        

      

      
        -80-

        
          

        

      

      
        
        

      

    

     

    (l) any
      Borrower or any of its Subsidiaries is enjoined, restrained or in any way
      prevented by the order of any court or any Governmental Authority from
      conducting all or any material part of its business for more than 15
      days;

     

    (m) any
      material damage to, or loss, theft or destruction of, any Collateral, whether
      or
      not insured, or any strike, lockout, labor dispute, embargo, condemnation,
      act
      of God or public enemy, or other casualty which causes, for more than 15 days,
      the cessation or substantial curtailment of revenue producing activities at
      any
      facility of any Loan Party, if any such event or circumstance could reasonably
      be expected to result in a Material Adverse Effect;

     

    (n) any
      cessation of a substantial part of the business of any Loan Party for a period
      which materially and adversely affects the ability of such Loan Party to
      continue its business on a profitable basis;

     

    (o) the
      indictment, or the reasonably credible threatened indictment of any Borrower
      or
      any of its Subsidiaries under any criminal statute, or commencement or
      threatened commencement of criminal or civil proceedings against any Loan Party,
      pursuant to which statute or proceedings the penalties or remedies sought or
      available include forfeiture to any Governmental Authority of any material
      portion of the property of such Person;

     

    (p) any
      Loan
      Party or any of its ERISA Affiliates shall have made a complete or partial
      withdrawal from a Multiemployer Plan, and, as a result of such complete or
      partial withdrawal, any Loan Party or any of its ERISA Affiliates incurs a
      withdrawal liability in an annual amount exceeding $1,000,000; or a
      Multiemployer Plan enters reorganization status under Section 4241 of
      ERISA, and, as a result thereof any Loan Party’s or any of its ERISA Affiliates’
annual contribution requirements with respect to such Multiemployer Plan
      increases in an annual amount exceeding $1,000,000;

     

    (q) any
      Termination Event with respect to any Employee Plan shall have occurred, and,
      30
      days after notice thereof shall have been given to any Loan Party by any Agent,
      (i) such Termination Event (if correctable) shall not have been corrected,
      and
      (ii) the then current value of such Employee Plan’s vested benefits exceeds the
      then current value of assets allocable to such benefits in such Employee Plan
      by
      more than $1,000,000 (or, in the case of a Termination Event involving liability
      under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204
      or
      4212 of ERISA or Section 4971 or 4975 of the IRC, the liability is in excess
      of
      such amount);

     

    (r) any
      Borrower or any of its Subsidiaries shall be liable for any Environmental
      Liabilities and Costs the payment of which could reasonably be expected to
      result in a Material Adverse Effect;

     

    (s) a
      Change
      of Control shall have occurred; or

     

    (t) an
      event
      or development occurs which could reasonably be expected to result in a Material
      Adverse Effect;

     

    then,
      and
      in any such event, the Collateral Agent may, and shall at the request of the
      Required Lenders, by notice to the Borrower, (i) terminate all Commitments,
      whereupon all Commitments shall immediately be so terminated, (ii) declare
      all
      or any portion of the Loans then outstanding to be due and payable, whereupon
      all or such portion of the aggregate principal of all Loans, all accrued and
      unpaid interest thereon, all fees and all other amounts payable under this
      Agreement and the other Loan Documents shall become due and payable immediately,
      without presentment, demand, protest or further notice of any kind, all of
      which
      are hereby expressly waived by each Loan Party and (iii) exercise any and
      all of its other rights and remedies under applicable law, hereunder and under
      the other Loan Documents; provided,
      however,
      that
      upon the occurrence of any Event of Default described in subsection
      (f) or (g)
      of this
Section 9.01,
      without
      any notice to any Loan Party or any other Person or any act by any Agent or
      any
      Lender, all Commitments shall automatically terminate and all Loans then
      outstanding, together with all accrued and unpaid interest thereon, all fees
      and
      all other amounts due under this Agreement and the other Loan Documents shall
      become due and payable automatically and immediately, without presentment,
      demand, protest or notice of any kind, all of which are expressly waived by
      each
      Loan Party.

     

    
      
        
        

      

      
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    Section
      9.02 Gaming
      Laws.

     

    (a) Each
      Loan
      Party agrees that, upon the occurrence of and during the continuance of an
      Event
      of Default and at Collateral Agent’s request, it will, and will cause each of
      its Subsidiaries to, cooperate with the Collateral Agent and the Required
      Lenders with respect to the filing of their applications for approval of, and
      shall use commercially reasonable efforts to take all other and further actions
      required by Collateral Agent or Required Lenders to assist the Collateral Agent
      and the Required Lenders with obtaining, such Gaming Licenses and other such
      approvals or consents of the Gaming Authorities and any other Governmental
      Authorities with jurisdiction as are necessary for the Collateral Agent to
      operate the businesses of the Borrower or its Subsidiaries or to acquire an
      interest in any Person holding any such Gaming License pursuant to the Gaming
      Laws. To enforce the provisions of this Section 9.02,
      where
      permitted by relevant Gaming Laws, Collateral Agent (subject to applicable
      instructions, if any, from the Required Lenders) is empowered to request the
      appointment of a receiver from any court of competent jurisdiction. Such
      receiver shall be instructed to seek from the applicable Gaming Authority and
      any other Governmental Authorities with jurisdiction authorization pursuant
      to
      the Gaming Laws to continue operation of the businesses of Borrower and its
      Subsidiaries under all necessary Gaming Licenses for the purpose of seeking
      a
      bona fide purchaser of the businesses of the Borrower and its Subsidiaries.
      Each
      Loan Party hereby agrees to authorize, and to cause each of its Subsidiaries
      to
      authorize, such an authorization pursuant to the Gaming Laws to continue the
      operation of the businesses of the Borrower and its Subsidiaries upon the
      request of the receiver so appointed and, if such Loan Party, or any such
      Subsidiary shall refuse to authorize the transfer, its approval may be required
      by the court. Upon the occurrence and continuance of an Event of Default, each
      Loan Party shall further use, and shall cause its Subsidiaries to use,
      commercially reasonable efforts to assist in obtaining approval of the
      applicable Gaming Authority and any other Governmental Authorities with
      jurisdiction, if required, for any action or transactions contemplated by this
      Agreement or the Loan Documents, including, preparation, execution, and filing
      with the applicable Gaming Authority and any other Governmental Authorities
      with
      jurisdiction of any application or applications for authorization pursuant
      to
      the Gaming Laws for the receiver to continue the operation of the businesses
      of
      the Borrower and the Borrower and its Subsidiaries under any Gaming License
      or
      transfer of control necessary or appropriate under the applicable Gaming Laws
      for approval of the transfer or assignment of any portion of the Collateral.
      Each Loan Party acknowledges that the authorization pursuant to the Gaming
      Laws
      for the receiver to continue the operation of the businesses of the Borrower
      and
      its Subsidiaries under the Gaming Licenses or for a transfer of control is
      integral to Collateral Agent’s realization of the value of the Collateral, that
      there is no adequate remedy at law for failure by such Loan Party to comply
      with
      the provisions of this Section 9.02
      and that
      such failure would not be adequately compensable in damages, and therefore
      agree
      that the agreements contained in this Section 9.02
      may be
      specifically enforced; and

     

    
      
        
        

      

      
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    (b) All
      rights, remedies, and powers provided in this Agreement and the other Loan
      Documents may be exercised only to the extent that the exercise thereof does
      not
      violate any applicable mandatory provision of the Gaming Laws and all provisions
      of this Agreement and the other Loan Documents are intended to be subject to
      all
      applicable mandatory provisions of the Gaming Laws and to be limited solely
      to
      the extent necessary to not render the provisions of this Agreement or the
      other
      Loan Documents invalid or unenforceable, in whole or in part. Collateral Agent
      will timely apply for and receive all required approvals of the applicable
      Gaming Authority for the sale or other disposition of gaming equipment regulated
      by the Gaming Laws (including any such sale or disposition of gaming equipment
      and associated gaming equipment consisting of slot machines, gaming tables,
      cards, dice, gaming chips, player tracking systems, and all other “gaming
      devices” (as such term or words of like import referring thereto are defined in
      the Gaming Laws), and “associated equipment” (as such term or words of like
      import referring thereto are defined in the Gaming Laws).

     

    ARTICLE
      X

     

    AGENTS

     

    Section
      10.01 Appointment.
      Each
      Lender (and each subsequent maker of any Loan by its making thereof) hereby
      irrevocably appoints and authorizes the Administrative Agent and the Collateral
      Agent to perform the duties of each such Agent as set forth in this Agreement
      including: (i) to receive on behalf of each Lender any payment of principal
      of or interest on the Loans outstanding hereunder and all other amounts accrued
      hereunder for the account of the Lenders and paid to such Agent, and, subject
      to
Section 2.02
      of this
      Agreement, to distribute promptly to each Lender its Pro Rata Share of all
      payments so received; (ii) to distribute to each Lender copies of all
      material notices and agreements received by such Agent and not required to
      be
      delivered to each Lender pursuant to the terms of this Agreement, provided
      that
      the Agents shall not have any liability to the Lenders for any Agent’s
      inadvertent failure to distribute any such notices or agreements to the Lenders;
      (iii) to maintain, in accordance with its customary business practices,
      ledgers and records reflecting the status of the Obligations, the Loans, and
      related matters and to maintain, in accordance with its customary business
      practices, ledgers and records reflecting the status of the Collateral and
      related matters; (iv) to execute or file any and all financing or similar
      statements or notices, amendments, renewals, supplements, documents,
      instruments, proofs of claim, notices and other written agreements with respect
      to this Agreement or any other Loan Document; (v) to make the Loans and
      Collateral Agent Advances, for such Agent or on behalf of the applicable Lenders
      as provided in this Agreement or any other Loan Document; (vi) to perform,
      exercise, and enforce any and all other rights and remedies of the Lenders
      with
      respect to the Loan Parties, the Obligations, or otherwise related to any of
      same to the extent reasonably incidental to the exercise by such Agent of the
      rights and remedies specifically authorized to be exercised by such Agent by
      the
      terms of this Agreement or any other Loan Document; (vii)  to incur and pay
      such fees necessary or appropriate for the performance and fulfillment of its
      functions and powers pursuant to this Agreement or any other Loan
      Document;
      and
      (viii) subject to Section 10.03
      of this
      Agreement, to take such action as such Agent deems appropriate on its behalf
      to
      administer the Loans and the Loan Documents and to exercise such other powers
      delegated to such Agent by the terms hereof or the other Loan Documents
      (including the power to give or to refuse to give notices, waivers, consents,
      approvals and instructions and the power to make or to refuse to make
      determinations and calculations) together with such powers as are reasonably
      incidental thereto to carry out the purposes hereof and thereof. As to any
      matters not expressly provided for by this Agreement and the other Loan
      Documents (including enforcement or collection of the Loans), the Agents shall
      not be required to exercise any discretion or take any action, but shall be
      required to act or to refrain from acting (and shall be fully protected in
      so
      acting or refraining from acting) upon the instructions of the Required Lenders,
      and such instructions of the Required Lenders shall be binding upon all Lenders
      and all makers of Loans.

     

    
      
        
        

      

      
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    Section
      10.02 Nature
      of Duties.
      The
      Agents shall have no duties or responsibilities except those expressly set
      forth
      in this Agreement or in the other Loan Documents. The duties of the Agents
      shall
      be mechanical and administrative in nature. The Agents shall not have by reason
      of this Agreement or any other Loan Document a fiduciary relationship in respect
      of any Lender. Nothing in this Agreement or any other Loan Document, express
      or
      implied, is intended to or shall be construed to impose upon the Agents any
      obligations in respect of this Agreement or any other Loan Document except
      as
      expressly set forth herein or therein. Each Lender shall make its own
      independent investigation of the financial condition and affairs of the Loan
      Parties in connection with the making and the continuance of the Loans hereunder
      and shall make its own appraisal of the creditworthiness of the Loan Parties
      and
      the value of the Collateral, and the Agents shall have no duty or
      responsibility, either initially or on a continuing basis, to provide any Lender
      with any credit or other information with respect thereto, whether coming into
      their possession before the initial Loan hereunder or at any time or times
      thereafter, provided that, upon the reasonable request of a Lender, each Agent
      shall provide to such Lender any documents or reports delivered to such Agent
      by
      the Loan Parties pursuant to the terms of this Agreement or any other Loan
      Document. If any Agent seeks the consent or approval of the Required Lenders
      to
      the taking or refraining from taking any action hereunder, such Agent shall
      send
      notice thereof to each Lender. Each Agent shall promptly notify each Lender
      any
      time that the Required Lenders have instructed such Agent to act or refrain
      from
      acting pursuant hereto.

     

    Section
      10.03 Rights,
      Exculpation, Etc.
      The
      Agents and their directors, officers, agents or employees shall not be liable
      for any action taken or omitted to be taken by them under or in connection
      with
      this Agreement or the other Loan Documents, except for their own gross
      negligence or willful misconduct as determined by a final judgment of a court
      of
      competent jurisdiction. Without limiting the generality of the foregoing, the
      Agents (i) may treat the payee of any Loan as the owner thereof until the
      Collateral Agent receives written notice of the assignment or transfer thereof,
      pursuant to Section 12.07,
      signed
      by such payee and in form satisfactory to the Collateral Agent; (ii) may
      consult with legal counsel (including counsel to any Agent or counsel to the
      Loan Parties), independent public accountants, and other experts selected by
      any
      of them and shall not be liable for any action taken or omitted to be taken
      in
      good faith by any of them in accordance with the advice of such counsel or
      experts; (iii) make no warranty or representation to any Lender and shall
      not be responsible to any Lender for any statements, certificates, warranties
      or
      representations made in or in connection with this Agreement or the other Loan
      Documents; (iv) shall not have any duty to ascertain or to inquire as to
      the performance or observance of any of the terms, covenants or conditions
      of
      this Agreement or the other Loan Documents on the part of any Person, the
      existence or possible existence of any Default or Event of Default, or to
      inspect the Collateral or other property (including the books and records)
      of
      any Person; (v) shall not be responsible to any Lender for the due
      execution, legality, validity, enforceability, genuineness, sufficiency or
      value
      of this Agreement or the other Loan Documents or any other instrument or
      document furnished pursuant hereto or thereto; and (vi) shall not be deemed
      to
      have made any representation or warranty regarding the existence, value or
      collectability of the Collateral, the existence, priority or perfection of
      the
      Collateral Agent’s Lien thereon, or any certificate prepared by any Loan Party
      in connection therewith, nor shall the Agents be responsible or liable to the
      Lenders for any failure to monitor or maintain any portion of the Collateral.
      The provisions of this Section
      10.03
      are
      subject to, and shall not limit in any respect, the provisions of Section
      12.07.
      The
      Agents shall not be liable for any apportionment or distribution of payments
      made in good faith pursuant to Section 4.04,
      and if
      any such apportionment or distribution is subsequently determined to have been
      made in error the sole recourse of any Lender to whom payment was due but not
      made, shall be to recover from other Lenders any payment in excess of the amount
      which they are determined to be entitled. The Agents may at any time request
      instructions from the Lenders with respect to any actions or approvals which
      by
      the terms of this Agreement or of any of the other Loan Documents the Agents
      are
      permitted or required to take or to grant, and if such instructions are promptly
      requested, the Agents shall be absolutely entitled to refrain from taking any
      action or to withhold any approval under any of the Loan Documents until they
      shall have received such instructions from the Required Lenders. Without
      limiting the foregoing, no Lender shall have any right of action whatsoever
      against any Agent as a result of such Agent acting or refraining from acting
      under this Agreement or any of the other Loan Documents in accordance with
      the
      instructions of the Required Lenders.

     

    
      
        
        

      

      
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    Section
      10.04 Reliance.
      Each
      Agent shall be entitled to rely upon any written notices, statements,
      certificates, orders or other documents or any telephone message believed by
      it
      in good faith to be genuine and correct and to have been signed, sent or made
      by
      the proper Person, and with respect to all matters pertaining to this Agreement
      or any of the other Loan Documents and its duties hereunder or thereunder,
      upon
      advice of counsel selected by it.

     

    Section
      10.05 Indemnification.
      To the
      extent that any Agent is not reimbursed and indemnified by any Loan Party,
      the
      Lenders will reimburse and indemnify such Agent from and against any and all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      costs, expenses, advances or disbursements of any kind or nature whatsoever
      which may be imposed on, incurred by, or asserted against such Agent in any
      way
      relating to or arising out of this Agreement or any of the other Loan Documents
      or any action taken or omitted by such Agent under this Agreement or any of
      the
      other Loan Documents, in proportion to each Lender’s Pro Rata Share, including
      advances and disbursements made pursuant to Section 10.08;
      provided,
      however,
      that no
      Lender shall be liable for any portion of such liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses, advances or
      disbursements for which there has been a final judicial determination that
      such
      liability resulted from such Agent’s gross negligence or willful misconduct. The
      obligations of the Lenders under this Section 10.05
      shall
      survive the payment in full of the Loans and the termination of this Agreement.
      

     

    
      
        
        

      

      
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    Section
      10.06 Agents
      Individually.
      With
      respect to its Pro Rata Share of the Total Commitment hereunder and the Loans
      made by it, each Agent shall have and may exercise the same rights and powers
      hereunder and is subject to the same obligations and liabilities as and to
      the
      extent set forth herein for any other Lender or maker of a Loan. The terms
      “Lenders” or “Required Lenders” or any similar terms shall, unless the context
      clearly otherwise indicates, include each Agent in its individual capacity
      as a
      Lender or one of the Required Lenders. Each Agent and its Affiliates may accept
      deposits from, lend money to, and generally engage in any kind of banking,
      trust
      or other business with the Borrower as if it were not acting as an Agent
      pursuant hereto without any duty to account to the other Lenders.

     

    Section
      10.07 Successor
      Agent.
      

     

    (a) Each
      Agent may resign from the performance of all its functions and duties hereunder
      and under the other Loan Documents at any time by giving at least 30 Business
      Days prior written notice to the Borrower and each Lender. Such resignation
      shall take effect upon the acceptance by a successor Agent of appointment
      pursuant to clauses (b) and (c) below or as otherwise provided
      below.

     

    (b) Upon
      any
      such notice of resignation, the Required Lenders may appoint a successor Agent.
      Upon the acceptance of any appointment as Agent hereunder by a successor Agent,
      such successor Agent shall thereupon succeed to and become vested with all
      the
      rights, powers, privileges and duties of the retiring Agent, and the retiring
      Agent shall be discharged from its duties and obligations under this Agreement
      and the other Loan Documents. After any Agent’s resignation hereunder as an
      Agent, the provisions of this Article X shall inure to its benefit as to
      any actions taken or omitted to be taken by it while it was an Agent under
      this
      Agreement and the other Loan Documents.

     

    (c) If
      a
      successor Agent shall not have been so appointed within said thirty (30)
      Business Day period, the retiring Agent, with the consent of the other Agent
      shall then appoint a successor Agent who shall serve as an Agent until such
      time, if any, as the Required Lenders, with the consent of the other Agent,
      appoint a successor Agent as provided above.

     

    Section
      10.08 Collateral
      Matters.

     

    (a) The
      Collateral Agent may from time to time make such disbursements and advances
      (“Collateral
      Agent Advances”)
      which
      the Collateral Agent, in its sole discretion, deems necessary or desirable
      to
      preserve, protect, prepare for sale or lease or dispose of the Collateral or
      any
      portion thereof, to enhance the likelihood or maximize the amount of repayment
      by the Borrower of the Loans, and other Obligations or to pay any other amount
      chargeable to the Borrower pursuant to the terms of this Agreement, including
      costs, fees and expenses as described in Section 12.04.
      The
      Collateral Agent Advances shall be repayable on demand and be secured by the
      Collateral. The Collateral Agent Advances shall constitute Obligations hereunder
      which may be charged to the Loan Account in accordance with Section
      4.02.
      The
      Collateral Agent shall notify each Lender and the Borrower in writing of each
      such Collateral Agent Advance, which notice shall include a description of
      the
      purpose of such Collateral Agent Advance. Without limitation to its obligations
      pursuant to Section 10.05,
      each
      Lender agrees that it shall make available to the Collateral Agent, upon the
      Collateral Agent’s demand, in Dollars in immediately available funds, the amount
      equal to such Lender’s Pro Rata Share of each such Collateral Agent Advance. If
      such funds are not made available to the Collateral Agent by such Lender, the
      Collateral Agent shall be entitled to recover such funds on demand from such
      Lender, together with interest thereon for each day from the date such payment
      was due until the date such amount is paid to the Collateral Agent, at the
      Federal Funds Rate for 3 Business Days and thereafter at the Reference
      Rate.

     

    
      
        
        

      

      
        -86-

        
          

        

      

      
        
        

      

    

     

    (b) The
      Lenders hereby irrevocably authorize the Collateral Agent, at its option and
      in
      its discretion, to release any Lien granted to or held by the Collateral Agent
      upon any Collateral upon termination of the Total Commitment and payment in
      full
      in cash of all Obligations (other than unasserted contingent
      indemnification Obligations);
      or
      constituting property being sold or disposed of in compliance with the terms
      of
      this Agreement and the other Loan Documents; or constituting property in which
      the Loan Parties owned no interest at the time the Lien was granted or at any
      time thereafter; or if approved, authorized or ratified in writing by the
      Lenders. Upon request by the Collateral Agent at any time, the Lenders will
      confirm in writing the Collateral Agent’s authority to release particular types
      or items of Collateral pursuant to this Section 10.08(b).

     

    (c) Without
      in any manner limiting the Collateral Agent’s authority to act without any
      specific or further authorization or consent by the Lenders (as set forth in
      Section 10.08(b)),
      each
      Lender agrees to confirm in writing, upon request by the Collateral Agent,
      the
      authority to release Collateral conferred upon the Collateral Agent under
Section 10.08(b).
      Upon
      receipt by the Collateral Agent of confirmation from the Lenders of its
      authority to release any particular item or types of Collateral, and upon prior
      written request by any Loan Party, the Collateral Agent shall (and is hereby
      irrevocably authorized by the Lenders to) execute such documents as may be
      necessary to evidence the release of the Liens granted to the Collateral Agent
      for the benefit of the Agents and the Lenders upon such Collateral; provided,
      however,
      that
      (i) the Collateral Agent shall not be required to execute any such document
      on
      terms which, in the Collateral Agent’s opinion, would expose the Collateral
      Agent to liability or create any obligations or entail any consequence other
      than the release of such Liens without recourse or warranty, and (ii) such
      release shall not in any manner discharge, affect or impair the Obligations
      or
      any Lien upon (or obligations of any Loan Party in respect of) all interests
      in
      the Collateral retained by any Loan Party.

     

    (d) The
      Collateral Agent shall have no obligation whatsoever to any Lender to assure
      that the Collateral exists or is owned by the Loan Parties or is cared for,
      protected or insured or has been encumbered or that the Lien granted to the
      Collateral Agent pursuant to this Agreement or any other Loan Document has
      been
      properly or sufficiently or lawfully created, perfected, protected or enforced
      or is entitled to any particular priority, or to exercise at all or in any
      particular manner or under any duty of care, disclosure or fidelity, or to
      continue exercising, any of the rights, authorities and powers granted or
      available to the Collateral Agent in this Section 10.08
      or in
      any other Loan Document, it being understood and agreed that in respect of
      the
      Collateral, or any act, omission or event related thereto, the Collateral Agent
      may act in any manner it may deem appropriate, in its sole discretion, given
      the
      Collateral Agent’s own interest in the Collateral as one of the Lenders and that
      the Collateral Agent shall have no duty or liability whatsoever to any other
      Lender, except as otherwise provided herein.

     

    
      
        
        

      

      
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    Section
      10.09 Agency
      for Perfection.
      Each
      Lender hereby appoints each Agent and each other Lender as agent and bailee
      for
      the purpose of perfecting the security interests in and liens upon the
      Collateral in assets which, in accordance with Article 9 of the Code, can be
      perfected only by possession or control (or where the security interest of
      a
      secured party with possession or control has priority over the security interest
      of another secured party) and each Agent and each Lender hereby acknowledges
      that it holds possession or control of any such Collateral for the benefit
      of
      the Collateral Agent as secured party. Should any Lender obtain possession
      or
      control of any such Collateral, such Lender shall notify the Collateral Agent
      thereof, and, promptly upon the Collateral Agent’s request therefor shall
      deliver possession or control of such Collateral to the Collateral Agent or
      in
      accordance with the Collateral Agent’s instructions. Each
      Loan Party by its execution and delivery of this Agreement hereby consents
      to
      the foregoing.

     

    ARTICLE
      XI

     

    GUARANTY

     

    Section
      11.01 Guaranty.
      Each
      Guarantor hereby jointly and severally unconditionally and irrevocably
      guarantees the punctual payment when due, whether at stated maturity, by
      acceleration or otherwise, of all Obligations of the Borrower now or hereafter
      existing under any Loan Document, whether for principal, interest (including
      all
      interest that accrues after the commencement of any Insolvency Proceeding
      irrespective of whether a claim therefor is allowed in such case or proceeding),
      fees, expenses or otherwise (such obligations, to the extent not paid by the
      Borrower, being the “Guaranteed Obligations”), and agrees to pay any and all
      expenses (including reasonable counsel fees and expenses) incurred by the Agents
      or the Lenders (or any of them) in enforcing any rights under the guaranty
      set
      forth in this Article. Without limiting the generality of the foregoing, each
      Guarantor’s liability shall extend to all amounts that constitute part of the
      Guaranteed Obligations and would be owed by the Borrower to the Agents or the
      Lenders under any Loan Document but for the fact that they are unenforceable
      or
      not allowable due to the existence of a bankruptcy, reorganization or similar
      proceeding involving any Loan Party.

     

    Section
      11.02 Guaranty
      Absolute.
      Each
      Guarantor jointly and severally guarantees that the Guaranteed Obligations
      will
      be paid strictly in accordance with the terms of the Loan Documents, regardless
      of any law, regulation or order now or hereafter in effect in any jurisdiction
      affecting any of such terms or the rights of the Agents, the Lenders with
      respect thereto. Each Guarantor agrees that this Article constitutes a guaranty
      of payment when due and not of collection and waives any right to require that
      any resort be made by any Agent or any Lender to any Collateral. The obligations
      of each Guarantor under this Article are independent of the Guaranteed
      Obligations, and a separate action or actions may be brought and prosecuted
      against each Guarantor to enforce such obligations, irrespective of whether
      any
      action is brought against any Loan Party or whether any Loan Party is joined
      in
      any such action or actions. The liability of each Guarantor under this Article
      shall be irrevocable, absolute and unconditional irrespective of, and each
      Guarantor hereby irrevocably waives any defenses it may now or hereafter have
      in
      any way relating to, any or all of the following:

     

    
      
        
        

      

      
        -88-

        
          

        

      

      
        
        

      

    

     

    (a) any
      lack
      of validity or enforceability of any Loan Document or any agreement or
      instrument relating thereto;

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the Guaranteed Obligations, or any other amendment or waiver of or
      any
      consent to departure from any Loan Document, including any increase in the
      Guaranteed Obligations resulting from the extension of additional credit to
      any
      Loan Party or otherwise;

     

    (c) any
      taking, exchange, release or non-perfection of any Collateral, or any taking,
      release or amendment or waiver of or consent to departure from any other
      guaranty, for all or any of the Guaranteed Obligations;

     

    (d) the
      existence of any claim, set-off, defense or other right that any Guarantor
      may
      have at any time against any Person, including, without limitation, any Agent
      or
      any Lender;

     

    (e) any
      change, restructuring or termination of the corporate, limited liability company
      or partnership structure or existence of any Loan Party; or

     

    (f) any
      other
      circumstance (including any statute of limitations) or any existence of or
      reliance on any representation by the Agents, the Lenders that might otherwise
      constitute a defense available to, or a discharge of, any Loan Party or any
      other guarantor or surety.

     

    This
      Article shall continue to be effective or be reinstated, as the case may be,
      if
      at any time any payment of any of the Guaranteed Obligations is rescinded or
      must otherwise be returned by the Agents, the Lenders, or any other Person
      upon
      the insolvency, bankruptcy or reorganization of the Borrower or otherwise,
      all
      as though such payment had not been made.

     

    Section
      11.03 Waiver.
      Each
      Guarantor hereby waives (i) promptness and diligence, (ii) notice of acceptance
      and any other notice with respect to any of the Guaranteed Obligations and
      this
      Article and any requirement that the Agents or the Lenders exhaust any right
      or
      take any action against any Loan Party or any other Person or any Collateral,
      (iii) any right to compel or direct any Agent or any Lender to seek payment
      or recovery of any amounts owed under this Article from any one particular
      fund
      or source or to exhaust any right or take any action against any other Loan
      Party, any other Person or any Collateral, (iv) any requirement that any Agent
      or any Lender protect, secure, perfect or insure any security interest or Lien
      on any property subject thereto or exhaust any right to take any action against
      any Loan Party, any other Person or any Collateral, and (v) any other defense
      available to any Guarantor. Each Guarantor agrees that the Agents and the
      Lenders shall have no obligation to marshal any assets in favor of any Guarantor
      or against, or in payment of, any or all of the Obligations. Each Guarantor
      acknowledges that it will receive direct and indirect benefits from the
      financing arrangements contemplated herein and that the waiver set forth in
      this
Section 11.03
      is
      knowingly made in contemplation of such benefits. Each Guarantor hereby waives
      any right to revoke this Article, and acknowledges that this Article is
      continuing in nature and applies to all Guaranteed Obligations, whether existing
      now or in the future.

     

    
      
        
        

      

      
        -89-

        
          

        

      

      
        
        

      

    

     

    Section
      11.04 Continuing
      Guaranty; Assignments.
      This
      Article is a continuing guaranty and shall (a) remain in full force and effect
      until the later of (i) the cash payment in full of the Guaranteed Obligations
      (other than indemnification obligations as to which no claim has been made)
      and
      all other amounts payable under this Article and (ii) the Final Maturity Date,
      (b) be binding upon each Guarantor, its successors and assigns and (c)
      inure to the benefit of and be enforceable by the Agents and the Lenders and
      their successors, pledgees, transferees and assigns. Without limiting the
      generality of the foregoing clause (c), any Lender may pledge, assign or
      otherwise transfer all or any portion of its rights and obligations under this
      Agreement (including all or any portion of its Commitments or its Loans) to
      any
      other Person, and such other Person shall thereupon become vested with all
      the
      benefits in respect thereof granted such Lender herein or otherwise, in each
      case as provided in Section 12.07.

     

    Section
      11.05 Subrogation.
      No
      Guarantor will exercise any rights that it may now or hereafter acquire against
      any Loan Party or any other guarantor that arise from the existence, payment,
      performance or enforcement of such Guarantor’s obligations under this Article,
      including any right of subrogation, reimbursement, exoneration, contribution
      or
      indemnification and any right to participate in any claim or remedy of the
      Agents and the Lenders against any Loan Party or any other guarantor or any
      Collateral, whether or not such claim, remedy or right arises in equity or
      under
      contract, statute or common law, including the right to take or receive from
      any
      Loan Party or any other guarantor, directly or indirectly, in cash or other
      property or by set-off or in any other manner, payment or security solely on
      account of such claim, remedy or right, unless and until all of the Guaranteed
      Obligations and all other amounts payable under this Article shall have been
      paid in full in cash and the Final Maturity Date shall have occurred. If any
      amount shall be paid to any Guarantor in violation of the immediately preceding
      sentence at any time prior to the later of the payment in full in cash of the
      Guaranteed Obligations and all other amounts payable under this Article and
      the
      Final Maturity Date, such amount shall be held in trust for the benefit of
      the
      Agents and the Lenders and shall forthwith be paid to the Agents and the Lenders
      to be credited and applied to the Guaranteed Obligations and all other amounts
      payable under this Article, whether matured or unmatured, in accordance with
      the
      terms of this Agreement, or to be held as Collateral for any Guaranteed
      Obligations or other amounts payable under this Article thereafter arising.
      If
      (i) any Guarantor shall make payment to the Agents and the Lenders of all
      or any part of the Guaranteed Obligations, (ii) all of the Guaranteed
      Obligations and all other amounts payable under this Article shall be paid
      in
      full in cash and (iii) all Commitments have been terminated, the Agents and
      the Lenders will, at such Guarantor’s request and expense, execute and deliver
      to such Guarantor appropriate documents, without recourse and without
      representation or warranty, necessary to evidence the transfer by subrogation
      to
      such Guarantor of an interest in the Guaranteed Obligations resulting from
      such
      payment by such Guarantor.

     

    
      
        
        

      

      
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    ARTICLE
      XII

     

    MISCELLANEOUS

     

    Section
      12.01 Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be in writing
      and
      shall be mailed, telecopied or delivered, if to any Loan Party, at the following
      address:

     

    

     

    GAMETECH
      INTERNATIONAL, INC.

    900
      Sandhill Road

    Reno,
      Nevada 89521

    Attention:
      Chief Financial Officer

    Telephone:
      775-850-6110

    Telecopier:
      775-850-6090

     

    with
      a
      copy to:

     

    Jones,
      Walker, Waechter, Poitevent, Carrere & Denegre L.L.P.

    201
      St.
      Charles Ave., Floor 50

    New
      Orleans, LA 70170

    Attention:
      Thomas Y. Roberson

    Telephone:
      504-582-8382

    Telecopier:
      504-589-8382

     

    if
      to the
      Administrative Agent,
      to
      it at the following address:

    

    ABLECO
      FINANCE LLC

    299
      Park
      Avenue, 23rd Floor

    New
      York,
      New York 10171

    Attention:
      Kevin Genda

    Telephone:
      (212) 891-2117

    Telecopier:
      (212) 891-1541

     

    with
      a
      copy to:

     

    CERBERUS
      CALIFORNIA, INC.

    11812
      San
      Vicente Boulevard, Suite 300

    Los
      Angeles, CA 90049

    Attention:
      Michael Grenier and Christopher Hebble

    Telephone:
      (310) 903-5010 and (310) 903-5016

    Telecopier:
      (310) 826-9203

     

    
      
        
        

      

      
        -91-

        
          

        

      

      
        
        

      

    

     

    if
      to the
      Collateral Agent, to it at the following address:

     

    ABLECO
      FINANCE LLC

    299
      Park
      Avenue, 23rd Floor

    New
      York,
      New York 10171

    Attention:
      Kevin Genda

    Telephone:
      (212) 891-2117

    Telecopier:
      (212) 891-1541

     

    with
      a
      copy to:

     

    CERBERUS
      CALIFORNIA, INC.

    11812
      San
      Vicente Boulevard, Suite 300

    Los
      Angeles, CA 90049

    Attention:
      Michael Grenier and Christoper Hebble

    Telephone:
      (310) 903-5010 and (310) 903-5016

    Telecopier:
      (310) 826-9203

     

    in
      each
      case, with a copy to:

     

    PAUL,
      HASTINGS, JANOFSKY & WALKER LLP

    515
      South
      Flower Street

    Los
      Angeles, CA 90071

    Attention:
      John Francis Hilson, Esq.

    Telephone:
      213-683-6300

    Telecopier:
      213-996-3300

     

    or,
      as to
      each party, at such other address as shall be designated by such party in a
      written notice to the other parties complying as to delivery with the terms
      of
      this Section 12.01.
      All
      such notices and other communications shall be effective, (i) if mailed, when
      received or 3 days after deposited in the mails, whichever occurs first, (ii)
      if
      telecopied, when transmitted and confirmation received, or (iii) if
      delivered, upon delivery, except that notices to any Agent pursuant to
      Articles II and III shall not be effective until received by such Agent ,
      as the case may be.

     

    Section
      12.02 Amendments,
      Etc.
      iii)
      No
      amendment or waiver of any provision of this Agreement or any other Loan
      Document, and no consent to any departure by any Loan Party therefrom, shall
      in
      any event be effective unless the same shall be in writing and signed by the
      Required Lenders or by the Collateral Agent with the consent of the Required
      Lenders, and then such waiver or consent shall be effective only in the specific
      instance and for the specific purpose for which given, provided,
      however,
      that no
      amendment, waiver or consent shall (i) increase the Commitment of any
      Lender, reduce the principal of, or interest on, the Loans payable to any
      Lender, reduce the amount of any fee payable for the account of any Lender,
      or
      postpone or extend any date fixed for any payment of principal of, or interest
      or fees on, the Loans payable to any Lender, in each case without the written
      consent of any Lender affected thereby, (ii) increase the Total Commitment
      without the written consent of each Lender, (iii) change the percentage of
      the Commitments or of the aggregate unpaid principal amount of the Loans that
      is
      required for the Lenders or any of them to take any action hereunder,
      (iv) amend the definition of “Required Lenders” or “Pro Rata Share”,
      (v) release all or a substantial portion of the Collateral (except as
      otherwise provided in this Agreement and the other Loan Documents), subordinate
      any Lien granted in favor of the Collateral Agent for the benefit of the Agents
      and the Lenders (except as otherwise provided in this Agreement and the other
      Loan Documents), or release the Borrower or any Guarantor, (vi) amend,
      modify or waive Section
      4.04
      or this
Section 12.02
      of this
      Agreement, or (vii) amend the definition of “Borrowing Base” without the written
      consent of each Lender. Notwithstanding the foregoing, no amendment, waiver
      or
      consent shall, unless in writing and signed by an Agent, affect the rights
      or
      duties of such Agent (but not in its capacity as a Lender) under this Agreement
      or the other Loan Documents.

     

    
      
        
        

      

      
        -92-

        
          

        

      

      
        
        

      

    

     

    Section
      12.03 No
      Waiver; Remedies, Etc.
      No
      failure on the part of any Agent or any Lender to exercise, and no delay in
      exercising, any right hereunder or under any other Loan Document shall operate
      as a waiver thereof; nor shall any single or partial exercise of any right
      under
      any Loan Document preclude any other or further exercise thereof or the exercise
      of any other right. The rights and remedies of the Agents and the Lenders
      provided herein and in the other Loan Documents are cumulative and are in
      addition to, and not exclusive of, any rights or remedies provided by law.
      The
      rights of the Agents and the Lenders under any Loan Document against any party
      thereto are not conditional or contingent on any attempt by the Agents and
      the
      Lenders to exercise any of their rights under any other Loan Document against
      such party or against any other Person.

     

    Section
      12.04 Expenses;
      Taxes; Attorneys Fees.
      The
      Borrower will pay on demand, all costs and expenses incurred by or on behalf
      of
      each Agent (and, in the case of clauses (b) through (m) below, each Lender),
      regardless of whether the transactions contemplated hereby are consummated,
      including reasonable fees, costs, client charges and expenses of counsel for
      each Agent (and, in the case of clauses (b) through (m) below, each Lender),
      accounting, due diligence, periodic field audits, physical counts, valuations,
      investigations, searches and filings, monitoring of assets, appraisals of
      Collateral, title searches and reviewing environmental assessments,
      miscellaneous disbursements, examination, travel, lodging and meals, arising
      from or relating to: (a) the negotiation, preparation, execution, delivery,
      performance and administration of this Agreement and the other Loan Documents
      (including the preparation of any additional Loan Documents pursuant to
Section 7.01(b)
      or the
      review of any of the agreements, instruments and documents referred to in
Section 7.01(f)),
      (b) any requested amendments, waivers or consents to this Agreement or the
      other Loan Documents whether or not such documents become effective or are
      given, (c) the preservation and protection of any of the Lenders’ rights
      under this Agreement or the other Loan Documents, (d) the defense of any claim
      or action asserted or brought against any Agent or any Lender by any Person
      that
      arises from or relates to this Agreement, any other Loan Document, the Agents’
or the Lenders’ claims against any Loan Party, or any and all matters in
      connection therewith, (e) the commencement or defense of, or intervention in,
      any court proceeding arising from or related to this Agreement or any other
      Loan
      Document, (f) the filing of any petition, complaint, answer, motion or
      other pleading by any Agent or any Lender, or the taking of any action in
      respect of the Collateral or other security, in connection with this Agreement
      or any other Loan Document, (g) the protection, collection, lease, sale, taking
      possession of or liquidation of, any Collateral or other security in connection
      with this Agreement or any other Loan Document, (h) any attempt to enforce
      any
      Lien or security interest in any Collateral or other security in connection
      with
      this Agreement or any other Loan Document, (i) any attempt to collect from
      any
      Loan Party, (j) all liabilities and costs arising from or in connection with
      the
      past, present or future operations of any Loan Party involving any damage to
      real or personal property or natural resources or harm or injury alleged to
      have
      resulted from any Release of Hazardous Materials on, upon or into such property,
      (k) any Environmental Liabilities and Costs incurred in connection with the
      investigation, removal, cleanup or remediation of any Hazardous Materials
      present or arising out of the operations of any facility owned or operated
      by
      any Loan Party, (l) any Environmental Liabilities and Costs incurred in
      connection with any Environmental Lien, or (m) the receipt by any Agent or
      any
      Lender of any advice from professionals with respect to any of the foregoing.
      Without limitation of the foregoing or any other provision of any Loan Document:
      (x) the Borrower agrees to pay all stamp, document, transfer, recording or
      filing taxes or fees and similar impositions now or hereafter determined by
      any
      Agent or any Lender to be payable in connection with this Agreement or any
      other
      Loan Document, and the Borrower agrees to save each Agent and each Lender
      harmless from and against any and all present or future claims, liabilities
      or
      losses with respect to or resulting from any omission to pay or delay in paying
      any such taxes, fees or impositions, (y) the Borrower agrees to pay all broker
      fees that may become due in connection with the transactions contemplated by
      this Agreement and the other Loan Documents, and (z) if the Borrower fails
      to
      perform any covenant or agreement contained herein or in any other Loan
      Document, any Agent may itself perform or cause performance of such covenant
      or
      agreement, and the expenses of such Agent incurred in connection therewith
      shall
      be reimbursed on demand by the Borrower.

     

    
      
        
        

      

      
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    Section
      12.05 Right
      of Set-off.
      

     

    (a) Each
      of
      the Lenders agrees that it shall not, without the express written consent of
      the
      Collateral Agent, and that it shall, to the extent it is lawfully entitled
      to do
      so, upon the written request of the Collateral Agent, set off against the
      Obligations, any amounts owing by such Lender to Borrower or any deposit
      accounts of Borrower now or hereafter maintained with such Lender. Each of
      the
      Lenders further agrees that it shall not, unless specifically requested to
      do so
      in writing by the Collateral Agent, take or cause to be taken any action,
      including, the commencement of any legal or equitable proceedings, to foreclose
      any Lien on, or otherwise enforce any security interest in, any of the
      Collateral.

     

    (b) If,
      at
      any time or times any Lender shall receive (i) by payment, foreclosure, setoff,
      or otherwise, any proceeds of Collateral or any payments with respect to the
      Obligations, except for any such proceeds or payments received by such Lender
      from Administrative Agent pursuant to the terms of this Agreement, or (ii)
      payments from Administrative Agent in excess of such Lender’s ratable portion of
      all such distributions by Administrative Agent, such Lender promptly shall
      (1)
      turn the same over to Administrative Agent, in kind, and with such endorsements
      as may be required to negotiate the same to Administrative Agent, or in
      immediately available funds, as applicable, for the account of all of the
      Lenders and for application to the Obligations in accordance with the applicable
      provisions of this Agreement, or (2) purchase, without recourse or warranty,
      an
      undivided interest and participation in the Obligations owed to the other
      Lenders so that such excess payment received shall be applied ratably as among
      the Lenders in accordance with their Pro Rata Shares; provided,
      however,
      that to
      the extent that such excess payment received by the purchasing party is
      thereafter recovered from it, those purchases of participations shall be
      rescinded in whole or in part, as applicable, and the applicable portion of
      the
      purchase price paid therefor shall be returned to such purchasing party, but
      without interest except to the extent that such purchasing party is required
      to
      pay interest in connection with the recovery of the excess payment.

     

    
      
        
        

      

      
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    Section
      12.06 Severability.
      Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining portions
      hereof or affecting the validity or enforceability of such provision in any
      other jurisdiction.

     

    Section
      12.07 Assignments
      and Participations.   

     

    (a) This
      Agreement and the other Loan Documents shall be binding upon and inure to the
      benefit of each Loan Party and each Agent and each Lender and their respective
      successors and assigns; provided,
      however,
      that
      none of the Loan Parties may assign or transfer any of its rights hereunder
      or
      under the other Loan Documents without the prior written consent of each Lender
      and any such assignment without the Lenders’ prior written consent shall be null
      and void.

     

    (b) Each
      Lender may with the written consent of the Collateral Agent, assign to one
      or
      more other lenders or other entities all or a portion of its rights and
      obligations under this Agreement with respect to all or a portion of its
      Commitment and Loans made by it; provided,
      however,
      that
      (i) such assignment is in an amount which is at least $5,000,000 or a multiple
      of $1,000,000 in excess thereof (or the remainder of such Lender’s Commitment)
      (except such minimum amount shall not apply to an assignment by a Lender to
      (x)
      a Lender, an Affiliate of such Lender or a Related Fund of such Lender or (y)
      a
      group of new Lenders, each of whom is an Affiliate or Related Fund of each
      other
      of each other to the extent the aggregate amount to be assigned to all such
      new
      Lenders is at least $5,000,000 or a multiple of $1,000,000 in excess thereof),
      and (ii) the parties to each such assignment shall execute and deliver to the
      Collateral Agent, for its acceptance, an Assignment and Acceptance, together
      with any promissory note subject to such assignment and such parties shall
      deliver to the Collateral Agent, for the benefit of the Collateral Agent, a
      processing and recordation fee of $5,000 (except the payment of such fee shall
      not be required (y) in connection with an assignment by a Lender to a Lender,
      an
      Affiliate of such Lender or to a Related Fund of such Lender or (z) if
      Collateral Agent, in its sole discretion, waives payment of such fee). Upon
      such
      execution, delivery and acceptance, from and after the effective date specified
      in each Assignment and Acceptance, which effective date shall be at least 3
      Business Days after the delivery thereof to the Collateral Agent (or such
      shorter period as shall be agreed to by the Collateral Agent and the parties
      to
      such assignment), (A) the assignee thereunder shall become a “Lender” hereunder
      and, in addition to the rights and obligations hereunder held by it immediately
      prior to such effective date, have the rights and obligations hereunder that
      have been assigned to it pursuant to such Assignment and Acceptance and (B)
      the
      assigning Lender thereunder shall, to the extent that rights and obligations
      hereunder have been assigned by it pursuant to such Assignment and Acceptance,
      relinquish its rights and be released from its obligations under this Agreement
      (and, in the case of an Assignment and Acceptance covering all or the remaining
      portion of an assigning Lender’s rights and obligations under this Agreement,
      such Lender shall cease to be a party hereto). 

     

    
      
        
        

      

      
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    (c) By
      executing and delivering an Assignment and Acceptance, the assigning Lender
      and
      the assignee thereunder confirm to and agree with each other and the other
      parties hereto as follows: (i) other than as provided in such Assignment and
      Acceptance, the assigning Lender makes no representation or warranty and assumes
      no responsibility with respect to any statements, warranties or representations
      made in or in connection with this Agreement or any other Loan Document or
      the
      execution, legality, validity, enforceability, genuineness, sufficiency or
      value
      of this Agreement or any other Loan Document furnished pursuant hereto; (ii)
      the
      assigning Lender makes no representation or warranty and assumes no
      responsibility with respect to the financial condition of any Loan Party or
      any
      of its Subsidiaries or the performance or observance by any Loan Party of any
      of
      its obligations under this Agreement or any other Loan Document furnished
      pursuant hereto; (iii) such assignee confirms that it has received a copy of
      this Agreement and the other Loan Documents, together with such other documents
      and information it has deemed appropriate to make its own credit analysis and
      decision to enter into such Assignment and Acceptance; (iv) such assignee will,
      independently and without reliance upon the assigning Lender, any Agent or
      any
      Lender and based on such documents and information as it shall deem appropriate
      at the time, continue to make its own credit decisions in taking or not taking
      action under this Agreement and the other Loan Documents; (v) such assignee
      appoints and authorizes the Agents to take such action as agents on its behalf
      and to exercise such powers under this Agreement and the other Loan Documents
      as
      are delegated to the Agents by the terms hereof and thereof, together with
      such
      powers as are reasonably incidental hereto and thereto; and (vi) such assignee
      agrees that it will perform in accordance with their terms all of the
      obligations which by the terms of this Agreement and the other Loan Documents
      are required to be performed by it as a Lender.

     

    (d) The
      Collateral Agent shall, acting solely for this purpose as a non-fiduciary agent
      of the Borrower, maintain, or cause to be maintained at the Payment Office,
      a
      copy of each Assignment and Acceptance delivered to and accepted by it and
      a
      register (the “Register”)
      for
      the recordation of the names and addresses of the Lenders and the Commitments
      of, and the principal amount of the Loans (and stated interest thereon) (the
      “Registered
      Loans”).
      The
      entries in the Register shall be conclusive and binding for all purposes, absent
      manifest error, and the Borrower, the Agents and the Lenders may treat each
      Person whose name is recorded in the Register as a Lender hereunder for all
      purposes of this Agreement. The Register shall be available for inspection
      by
      the Borrower and any Lender at any reasonable time and from time to time upon
      reasonable prior notice. 

     

    (e) Upon
      receipt by the Collateral Agent of an Assignment and Acceptance, and subject
      to
      any consent required from the Collateral Agent pursuant to Section
      12.07(b)
      (which
      consent of the Collateral Agent must be evidenced by the Collateral Agent’s
      execution of an acceptance to such Assignment and Acceptance), the Collateral
      Agent shall accept the Assignment and Acceptance and record the information
      contained therein in the Register.

     

    (f) A
      Registered Loan (and the registered note, if any, evidencing the same) may
      be
      assigned or sold in whole or in part only by registration of such assignment
      or
      sale on the Register (and each registered note shall expressly so provide).
      Any
      assignment or sale of all or part of such Registered Loan (and the registered
      note, if any, evidencing the same) may be effected only by registration of
      such
      assignment or sale on the Register, together with the surrender of the
      registered note, if any, evidencing the same duly endorsed by (or accompanied
      by
      a written instrument of assignment or sale duly executed by) the holder of
      such
      registered note, whereupon, at the request of the designated assignee(s) or
      transferee(s), one or more new registered notes in the same aggregate principal
      amount shall be issued to the designated assignee(s) or transferee(s). Prior
      to
      the registration of assignment or sale of any Registered Loan (and the
      registered note, if any, evidencing the same), the Agents shall treat the Person
      in whose name such Registered Loan (and the registered note, if any, evidencing
      the same) is registered as the owner thereof for the purpose of receiving all
      payments thereon, notwithstanding notice to the contrary.

     

    
      
        
        

      

      
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    (g) In
      the
      event that any Lender sells participations in a Registered Loan, such Lender
      shall maintain a register for this purpose as a non-fiduciary agent of the
      Borrower on which it enters the name of all participants in the Registered
      Loans
      held by it and the principal amount (and stated interest thereon) of the portion
      of the Registered Loan that is the subject of the participation (the
“Participant
      Register”).
      A
      Registered Loan (and the registered note, if any, evidencing the same) may
      be
      participated in whole or in part only by registration of such participation
      on
      the Participant Register (and each registered note shall expressly so provide).
      Any participation of such Registered Loan (and the registered note, if any,
      evidencing the same) may be effected only by the registration of such
      participation on the Participant Register. Any such Participant Register shall
      be available for inspection by the Borrower, any Agent and any Lender at any
      reasonable time and from time to time upon reasonable prior notice.

     

    (h) Any
      Non-U.S. Lender who is assigned an interest in any portion of such Registered
      Loan pursuant to an Assignment and Acceptance shall comply with Section
      2.08(d).

     

    (i) Each
      Lender may sell participations to one or more banks or other entities in or
      to
      all or a portion of its rights and obligations under this Agreement and the
      other Loan Documents (including, all or a portion of its Commitments or the
      Loans made by it); provided, that (i) such Lender’s obligations under this
      Agreement (including without limitation, its Commitments hereunder) and the
      other Loan Documents shall remain unchanged; (ii) such Lender shall remain
      solely responsible to the other parties hereto for the performance of such
      obligations, and the Borrower, the Agents and the other Lenders shall continue
      to deal solely and directly with such Lender in connection with such Lender’s
      rights and obligations under this Agreement and the other Loan Documents; and
      (iii) a participant shall not be entitled to require such Lender to take or
      omit
      to take any action hereunder except (A) action directly effecting an extension
      of the maturity dates or decrease in the principal amount of the Loans,
      (B) action directly effecting an extension of the due dates or a decrease
      in the rate of interest payable on the Loans or the fees payable under this
      Agreement, or (C) actions directly effecting a release of all or a substantial
      portion of the Collateral or any Loan Party (except as set forth in Section
      10.08
      of this
      Agreement or any other Loan Document). The Loan Parties agree that each
      participant shall be entitled to the benefits of Section
      2.08
      and
Section
      4.05
      of this
      Agreement with respect to its participation in any portion of the Commitments
      and the Loans as if it was a Lender.

     

    Section
      12.08 Counterparts.
      This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which shall be deemed to be an
      original, but all of which taken together shall constitute one and the same
      agreement. Delivery of an executed counterpart of this Agreement by
      telefacsimile shall be equally as effective as delivery of an original executed
      counterpart of this Agreement. Any party delivering an executed counterpart
      of
      this Agreement by telefacsimile also shall deliver an original executed
      counterpart of this Agreement but the failure to deliver an original executed
      counterpart shall not affect the validity, enforceability, and binding effect
      of
      this Agreement. The foregoing shall apply to each other Loan Document mutatis
      mutandis.

     

    
      
        
        

      

      
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    Section
      12.09 GOVERNING
      LAW.
      THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE
      CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT) SHALL
      BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
      YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW
      YORK.

     

    Section
      12.10 CONSENT
      TO JURISDICTION; SERVICE OF PROCESS AND VENUE.
      EACH OF THE PARTIES HERETO AGREE THAT ANY LEGAL ACTION OR PROCEEDING WITH
      RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT IN THE
      COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED
      STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION
      AND DELIVERY OF THIS AGREEMENT, EACH LOAN PARTY HEREBY IRREVOCABLY ACCEPTS
      IN
      RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF
      THE
      AFORESAID COURTS; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST
      ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT COLLATERAL AGENT’S OPTION,
      IN THE COURTS OF ANY JURISDICTION WHERE COLLATERAL AGENT ELECTS TO BRING SUCH
      ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
EACH
      LOAN PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND ALL LEGAL
      PROCESS, SUMMONS, NOTICES, AND DOCUMENTS IN ANY SUIT, ACTION, OR PROCEEDING
      BROUGHT IN THE UNITED STATES OF AMERICA ARISING OUT OF OR IN CONNECTION WITH
      THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS BY THE MAILING (BY REGISTERED
      MAIL OR CERTIFIED MAIL, POSTAGE PREPAID) OR DELIVERING OF A COPY OF SUCH PROCESS
      TO SUCH LOAN PARTY, C/O THE BORROWER, AT THE BORROWER’S ADDRESS FOR NOTICES AS
      SET FORTH IN SECTION 12.01.
      THE LOAN PARTIES AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING
      SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
      JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING HEREIN SHALL AFFECT
      THE
      RIGHT OF THE AGENTS AND THE LENDERS TO SERVE PROCESS IN ANY OTHER MANNER
      PERMITTED BY LAW. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES,
      TO
      THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER
      HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT
      IN
      ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS
      BEEN
      BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY LOAN PARTY HAS OR
      HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY
      LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
      ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
      PROPERTY, EACH LOAN PARTY HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT
      OF
      ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN
      DOCUMENTS.

     

    
      
        
        

      

      
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    Section
      12.11 WAIVER
      OF JURY TRIAL, ETC.
      EACH LOAN PARTY, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL
      BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER
      THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER,
      CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE
      FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING
      RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY
      SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND
      NOT
      BEFORE A JURY. EACH LOAN PARTY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT
      OR ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
      THAT ANY AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING
      OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH LOAN PARTY HEREBY
      ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENTS AND
      THE
      LENDERS ENTERING INTO THIS AGREEMENT.

     

    Section
      12.12 Consent
      by the Agents and Lenders.
      Except
      as otherwise expressly set forth herein to the contrary, if the consent,
      approval, satisfaction, determination, judgment, acceptance or similar action
      (an “Action”)
      of any
      Agent or any Lender shall be permitted or required pursuant to any provision
      hereof or any provision of any other agreement to which any Loan Party is a
      party and to which any Agent or any Lender has succeeded thereto, such Action
      shall be required to be in writing and may be withheld or denied by such Agent
      or such Lender, in its sole discretion, with or without any reason, and without
      being subject to question or challenge on the grounds that such Action was
      not
      taken in good faith.

     

    Section
      12.13 No
      Party Deemed Drafter.
      Each of
      the parties hereto agrees that no party hereto shall be deemed to be the drafter
      of this Agreement.

     

    Section
      12.14 Reinstatement;
      Certain Payments.
      If any
      claim is ever made upon any Agent or any Lender for repayment or recovery of
      any
      amount or amounts received by such Agent or such Lender in payment or on account
      of any of the Obligations, such Agent or such Lender shall give prompt notice
      of
      such claim to each other Agent and Lender and the Borrower, and if such Agent
      or
      such Lender repays all or part of such amount by reason of (i) any
      judgment, decree or order of any court or administrative body having
      jurisdiction over such Agent or such Lender or any of its property, or
      (ii) any good faith settlement or compromise of any such claim effected by
      such Agent, such Lender with any such claimant, then and in such event each
      Loan
      Party agrees that (A) any such judgment, decree, order, settlement or compromise
      shall be binding upon it notwithstanding the cancellation of any Indebtedness
      hereunder or under the other Loan Documents or the termination of this Agreement
      or the other Loan Documents, and (B) it shall be and remain liable to such
      Agent or such Lender hereunder for the amount so repaid or recovered to the
      same
      extent as if such amount had never originally been received by such Agent or
      such Lender.

     

    
      
        
        

      

      
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    Section
      12.15 Indemnification.
      In
      addition to each Loan Party’s other Obligations under this Agreement, each Loan
      Party agrees to, jointly and severally, defend, protect, indemnify and hold
      harmless each Agent, each Lender and all of their respective officers,
      directors, employees, attorneys, consultants and agents (collectively called
      the “Indemnitees”)
      from
      and against any and all losses, damages, liabilities, obligations, penalties,
      fees, reasonable costs and expenses (including reasonable attorneys fees, costs
      and expenses) incurred by such Indemnitees, whether prior to or from and after
      the Effective Date, whether direct, indirect or consequential, as a result
      of or
      arising from or relating to or in connection with any of the following: (i)
      the
      negotiation, preparation, execution or performance or enforcement of this
      Agreement, any other Loan Document or of any other document executed in
      connection with the transactions contemplated by this Agreement, (ii) any
      Agent’s or any Lender’s furnishing of funds to the Borrower under this Agreement
      or the other Loan Documents, including the management of any such Loans,
      (iii) any matter relating to the financing transactions contemplated by
      this Agreement or the other Loan Documents or by any document executed in
      connection with the transactions contemplated by this Agreement or the other
      Loan Documents, or (iv) any claim, litigation, investigation or proceeding
      relating to any of the foregoing, whether or not any Indemnitee is a party
      thereto (collectively, the “Indemnified
      Matters”);
      provided,
      however,
      that
      the Loan Parties shall not have any obligation to any Indemnitee under this
      Section 12.15
      for any
      Indemnified Matter caused by the gross negligence or willful misconduct of
      such
      Indemnitee, as determined by a final judgment of a court of competent
      jurisdiction. Such indemnification for all of the foregoing losses, damages,
      fees, costs and expenses of the Indemnitees are chargeable against the Loan
      Account. To the extent that the undertaking to indemnify, pay and hold harmless
      set forth in this Section 12.15
      may be
      unenforceable because it is violative of any law or public policy, each Loan
      Party shall, jointly and severally, contribute the maximum portion which it
      is
      permitted to pay and satisfy under applicable law, to the payment and
      satisfaction of all Indemnified Matters incurred by the Indemnitees. This
      Indemnity shall survive the repayment of the Obligations and the discharge
      of
      the Liens granted under the Loan Documents.

     

    Section
      12.16 Records.
      The
      unpaid principal of and interest on the Loans, the interest rate or rates
      applicable to such unpaid principal and interest, the duration of such
      applicability, the Commitments, and the accrued and unpaid fees payable pursuant
      to Section
      2.06,
      including the Closing Fee, the Loan Servicing Fee, the Anniversary Fee, the
      Unused Line Fee, the Commitment Fee, shall at all times be ascertained from
      the
      records of the Agents, which shall be conclusive and binding absent manifest
      error.

     

    Section
      12.17 Binding
      Effect.
      This
      Agreement shall become effective when it shall have been executed by each Loan
      Party, each Agent and each Lender and thereafter shall be binding upon and
      inure
      to the benefit of each Loan Party, each Agent and each Lender, and their
      respective successors and assigns, except that the Loan Parties shall not have
      the right to assign their rights hereunder or any interest herein without the
      prior written consent of each Lender, and any assignment by any Lender shall
      be
      governed by Section 12.07.

     

    
      
        
        

      

      
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    Section
      12.18 Interest.
      It is
      the intention of the parties hereto that each Agent and each Lender shall
      conform strictly to usury laws applicable to it. Accordingly, if the
      transactions contemplated hereby or by any other Loan Document would be usurious
      as to any Agent or any Lender under laws applicable to it (including the laws
      of
      the United States of America and the State of New York or any other jurisdiction
      whose laws may be mandatorily applicable to such Agent or such Lender
      notwithstanding the other provisions of this Agreement), then, in that event,
      notwithstanding anything to the contrary in this Agreement or any other Loan
      Document or any agreement entered into in connection with or as security for
      the
      Obligations, it is agreed as follows: (i) the aggregate of all consideration
      which constitutes interest under law applicable to any Agent or any Lender
      that
      is contracted for, taken, reserved, charged or received by such Agent or such
      Lender under this Agreement or any other Loan Document or agreements or
      otherwise in connection with the Obligations shall under no circumstances exceed
      the maximum amount allowed by such applicable law, any excess shall be canceled
      automatically and if theretofore paid shall be credited by such Agent or such
      Lender on the principal amount of the Obligations (or, to the extent that the
      principal amount of the Obligations shall have been or would thereby be paid
      in
      full, refunded by such Agent or such Lender, as applicable, to the Borrower);
      and (ii) in the event that the maturity of the Obligations is accelerated by
      reason of any Event of Default under this Agreement or otherwise, or in the
      event of any required or permitted prepayment, then such consideration that
      constitutes interest under law applicable to any Agent or any Lender may never
      include more than the maximum amount allowed by such applicable law, and excess
      interest, if any, provided for in this Agreement or otherwise shall be canceled
      automatically by such Agent or such Lender, as applicable, as of the date of
      such acceleration or prepayment and, if theretofore paid, shall be credited
      by
      such Agent or such Lender, as applicable, on the principal amount of the
      Obligations (or, to the extent that the principal amount of the Obligations
      shall have been or would thereby be paid in full, refunded by such Agent or
      such
      Lender to the Borrower). All sums paid or agreed to be paid to any Agent or
      any
      Lender for the use, forbearance or detention of sums due hereunder shall, to
      the
      extent permitted by law applicable to such Agent or such Lender, be amortized,
      prorated, allocated and spread throughout the full term of the Loans until
      payment in full so that the rate or amount of interest on account of any Loans
      hereunder does not exceed the maximum amount allowed by such applicable law.
      If
      at any time and from time to time (i) the amount of interest payable to any
      Agent or any Lender on any date shall be computed at the Highest Lawful Rate
      applicable to such Agent or such Lender pursuant to this Section 12.18
      and
      (ii) in respect of any subsequent interest computation period the amount of
      interest otherwise payable to such Agent or such Lender would be less than
      the
      amount of interest payable to such Agent or such Lender computed at the Highest
      Lawful Rate applicable to such Agent or such Lender, then the amount of interest
      payable to such Agent or such Lender in respect of such subsequent interest
      computation period shall continue to be computed at the Highest Lawful Rate
      applicable to such Agent or such Lender until the total amount of interest
      payable to such Agent or such Lender shall equal the total amount of interest
      which would have been payable to such Agent or such Lender if the total amount
      of interest had been computed without giving effect to this Section
      12.18.

     

    For
      purposes of this Section 12.18,
      the
      term “applicable law” shall mean that law in effect from time to time and
      applicable to the loan transaction between the Borrower, on the one hand, and
      the Agents and the Lenders, on the other, that lawfully permits the charging
      and
      collection of the highest permissible, lawful non-usurious rate of interest
      on
      such loan transaction and this Agreement, including laws of the State of New
      York and, to the extent controlling, laws of the United States of America.
      

     

    
      
        
        

      

      
        -101-

        
          

        

      

      
        
        

      

    

     

    The
      right
      to accelerate the maturity of the Obligations does not include the right to
      accelerate any interest that has not accrued as of the date of
      acceleration.

     

    Section
      12.19 Confidentiality.
      Each
      Agent and each Lender agrees (on behalf of itself and each of its affiliates,
      directors, officers, employees and representatives) to use reasonable
      precautions to keep confidential, in accordance with its customary procedures
      for handling confidential information of this nature and in accordance with
      safe
      and sound practices of comparable companies, any material non-public information
      supplied to it by the Loan Parties pursuant to this Agreement or the other
      Loan
      Documents (and which at the time is not, and does not thereafter become,
      publicly available or available to such Person from another source not known
      to
      be subject to a confidentiality obligation to such Person not to disclose such
      information), provided
      that
      nothing herein shall limit the disclosure of any such information (i) to
      the extent required by statute, rule, regulation or judicial process,
      (ii) to counsel for any Agent or any Lender, (iii) to examiners,
      auditors, accountants or Securitization Parties, (iv) in connection with
      any litigation to which any Agent or any Lender is a party or (v) to any
      assignee or participant (or prospective assignee or participant) so long as
      such
      assignee or participant (or prospective assignee or participant) first agrees,
      in writing, to be bound by confidentiality provisions similar in substance
      to
      this Section 12.19.
      Each
      Agent and each Lender agrees that, upon receipt of a request or identification
      of the requirement for disclosure pursuant to clause (iv) hereof, it will
      make reasonable efforts to keep the Loan Parties informed of such request or
      identification; provided
      that
      each Loan Party acknowledges that each Agent and each Lender may make disclosure
      as required or requested by any Governmental Authority or representative thereof
      and that each Agent and each Lender may be subject to review by Securitization
      Parties or other regulatory agencies and may be required to provide to, or
      otherwise make available for review by, the representatives of such parties
      or
      agencies any such non-public information.

     

    Section
      12.20 Section
      Headings.
      Headings and numbers have been set forth herein for convenience only. Unless
      the
      contrary is compelled by the context, everything contained in each Section
      applies equally to this entire Agreement.

     

    Section
      12.21 Integration.
      This
      Agreement, together with the other Loan Documents, reflects the entire
      understanding of the parties with respect to the transactions contemplated
      hereby and shall not be contradicted or qualified by any other agreement, oral
      or written, before the date hereof.

     

    
      
        
          
          

        

        
          -102-

          
            

          

        

        
          
          

        

      

    

    

    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.

     

    
      	 	 	 
	 	
              “BORROWER”

            
	 	 
	 	GAMETECH INTERNATIONAL,
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

     

    
      	 	 	 
	 	
              
                “GUARANTORS”

              

            
	 	 
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

     

    
      	 	 	 
	 	
              “COLLATERAL
                AGENT AND LENDER”

            
	 	 
	 	ABLECO
              FINANCE LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

     

    
      	
            	 	 
	 	
              “ADMINISTRATIVE
                AGENT AND LENDER”

            
	 	 
	 	ABLECO
              FINANCE LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

            
	 	Title: 

    

     

    
      
        
        

      

      
        -103-Unassociated Document

    Exhibit
      10.1

     

    WONDER
      AUTO TECHNOLOGY, INC.

    INDEPENDENT
      DIRECTOR’S CONTRACT

    

    THIS
      AGREEMENT (The “Agreement”) is made as of the 23rd
      day of
      March, 2007 and is by and between Wonder Auto Technology, Inc., a Nevada
      corporation (hereinafter referred to as “Company”) and Larry Goldman
      (hereinafter referred to as “Director”).

    

    BACKGROUND

    

    The
      Board
      of Directors of the Company desires to appoint Director to fill an existing
      vacancy and to have the Director perform the duties of independent director
      and
      Director desires to be so appointed for such position and to perform the duties
      required of such position in accordance with the terms and conditions of this
      Agreement.

    

    AGREEMENT

    

    In
      consideration for the above recited promises and the mutual promises contained
      herein, the adequacy and sufficiency of which are hereby acknowledged, Company
      and Director hereby agree as follows:

    

    1. DUTIES.
      The
      Company requires that the Director be available to perform the duties of an
      independent director as described in the Company’s Handbook for Prospective
      Directors and such other duties customarily related to this function as may
      be
      determined and assigned by the Board of Directors of the Company and as may
      be
      required by the Company’s constituent instruments, including its certificate or
      articles of incorporation, bylaws and its corporate governance and board
      committee charters, each as amended or modified from time to time, and by
      applicable law, including the Nevada General Corporation Law. Director agrees
      to
      devote as much time as is necessary to perform completely the duties as Director
      of the Company, including duties as a member of the Audit Committee and such
      other committees as the Director may hereafter be appointed to. The Director
      will perform such duties described herein in accordance with the general
      fiduciary duty of Directors arising under the Nevada General Corporation Law
      and
      Chapter 78 of the Nevada Revised Statutes.

    

    2. TERM.
      The
      term of this Agreement shall commence as of the date of the Director’s
      appointment by the board of directors of the Company (in the event the Director
      is appointed to fill a vacancy) or the date of the Director’s election by the
      stockholders of the Company and shall continue until the Director’s removal or
      resignation. Each 12-month period ending on the anniversary date of the
      Director’s appointment is a “Service Year.”

    

    3. COMPENSATION.
      For all
      services to be rendered by Director in any capacity hereunder, the Company
      agrees to pay Director a fee of $50,000 in cash per Service Year payable in
      equal quarterly installments (the “Compensation”) throughout the Company’s
      fiscal year. The initial year’s Compensation is considered earned when paid and
      is nonrefundable. Upon execution of this Agreement, the Company shall pay to
      the
      Director a pro rata portion of the initial Service Year’s Compensation described
      above (pro-rated for the remaining portion of the Company’s then-current fiscal
      year). Thereafter, payment shall be due on or before the first business day
      of
      the Company’s next fiscal year and in succeeding fiscal quarters as described
      above. Such Compensation and grant shares may be adjusted from time to time
      as
      agreed by the parties. 

    

    4. EXPENSES.
      In
      addition to the compensation provided in paragraph 3 hereof, the Company will
      reimburse Director for pre-approved reasonable business related expenses
      incurred in good faith in the performance of Director’s duties for the Company.
      Such payments shall be made by the Company upon submission by the Director
      of a
      signed statement itemizing the expenses incurred. Such statement shall be
      accompanied by sufficient documentary matter to support the
      expenditures.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5. CONFIDENTIALITY.
      The
      Company and Director each acknowledge that, in order for the intents and
      purposes of this Agreement to be accomplished, Director shall necessarily be
      obtaining access to certain confidential information concerning the Company
      and
      its affairs, including, but not limited to business methods, information
      systems, financial data and strategic plans which are unique assets of the
      Company (“Confidential Information”). Director covenants not to, either directly
      or indirectly, in any manner, utilize or disclose to any person, firm,
      corporation, association or other entity any Confidential
      Information.

    

    6. NON-COMPETE.
      During
      the Term and for a period of twelve (12) months following the Director’s removal
      or resignation from the Board of Directors of the Company or any of its
      Subsidiaries or Affiliates (the “Restricted Period”), the Director shall not,
      directly or indirectly, (i) in any manner whatsoever engage in any capacity
      with
      any business competitive with the Company's current lines of business or any
      business then engaged in by the Company, any of its Subsidiaries or any of
      its
      Affiliates (the “Company’s Business”) for the Director’s own benefit or for the
      benefit of any person or entity other than the Company or any Subsidiary or
      Affiliate; or (ii) have any interest as owner, sole proprietor, shareholder,
      partner, lender, director, officer, manager, employee, consultant, agent or
      otherwise in any business competitive with the Company's Business; provided,
      however,
      that
      the Director may hold, directly or indirectly, solely as an investment, not
      more
      than one percent (1%) of the outstanding securities of any person or entity
      which are listed on any national securities exchange or regularly traded in
      the
      over-the-counter market notwithstanding the fact that such person or entity
      is
      engaged in a business competitive with the Company's Business. In addition,
      during the Restricted Period, the Director shall not develop any property for
      use in the Company's Business on behalf of any person or entity other than
      the
      Company, its Subsidiaries and Affiliates.

    

    7. TERMINATION.
      With or
      without cause, the Company and Director may each terminate this Agreement at
      any
      time upon ten (10) days written notice, and the Company shall be obligated
      to
      pay to Director the compensation and expenses due up to the date of the
      termination. If the director voluntarily resigns prior to October 1st of any
      year after the first year of this agreement, the Company shall be entitled
      to
      receive, upon written request by the Company, a prorated refund of the portion
      of the Compensation that relates to the period after the termination date.
      Such
      written request must be submitted within ninety (90) days of the termination
      date. Nothing contained herein or omitted herefrom shall prevent the
      shareholder(s) of the Company from removing Director with immediate effect
      at
      any time for any reason.

    

    8. INDEMNIFICATION.
      The
      Company shall indemnify, defend and hold harmless Director, to the full extent
      allowed by the law of the State of Nevada, and as provided by, or granted
      pursuant to, any charter provision, bylaw provision, agreement (including,
      without limitation, the Indemnification Agreement executed herewith), vote
      of
      stockholders or disinterested directors or otherwise, both as to action in
      Director’s official capacity and as to action in another capacity while holding
      such office. The Company and the Director are executing the Indemnification
      Agreement in the form attached hereto as Exhibit A.

    

    9. EFFECT
      OF WAIVER.
      The
      waiver by either party of the breach of any provision of this Agreement shall
      not operate as or be construed as a waiver of any subsequent breach
      thereof.

    

    10. NOTICE.
      Any and
      all notices referred to herein shall be sufficient if furnished in writing
      at
      the addresses specified on the signature page hereto or, if to the Company,
      to
      the Company’s address as specified in filings made by the Company with the U.S.
      Securities and Exchange Commission and if by fax to 202.318.2502.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11. GOVERNING
      LAW.
      This
      Agreement shall be interpreted in accordance with, and the rights of the parties
      hereto shall be determined by, the laws of the State of Nevada without reference
      to that state’s conflicts of laws principles.

    

    12. ASSIGNMENT.
      The
      rights and benefits of the Company under this Agreement shall be transferable,
      and all the covenants and agreements hereunder shall inure to the benefit of,
      and be enforceable by or against, its successors and assigns. The duties and
      obligations of the Director under this Agreement are personal and therefore
      Director may not assign any right or duty under this Agreement without the
      prior
      written consent of the Company.

    

    13. MISCELLANEOUS.
      If any
      provision of this Agreement shall be declared invalid or illegal, for any reason
      whatsoever, then, notwithstanding such invalidity or illegality, the remaining
      terms and provisions of the within Agreement shall remain in full force and
      effect in the same manner as if the invalid or illegal provision had not been
      contained herein.

    

    14. ARTICLE
      HEADINGS.
      The
      article headings contained in this Agreement are for reference purposes only
      and
      shall not affect in any way the meaning or interpretation of this
      Agreement.

    

    15. COUNTERPARTS.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one instrument. Facsimile execution and delivery
      of
      this Agreement is legal, valid and binding for all purposes.

    

    16. ENTIRE
      AGREEMENT. Except
      as
      provided elsewhere herein, this Agreement sets
      forth the entire agreement of the parties with respect to
      its
      subject
      matter and supersedes all prior agreements, promises, covenants, arrangements,
      communications, representations or warranties, whether oral or written, by
      any
      officer, employee or representative of any party to this
      Agreement with respect
      to
      such
      subject matter.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Independent Director’s
      Contract to be duly executed and signed as of the day and year first above
      written.

     

    
      	 	 	 
	 	WONDER
              AUTO
              TECHNOLOGY, INC.
	 
 	 
 	 
 
	 	By:  	/s/ Qingjie
              Zhao
	 	
              
Name: Qingjie
              Zhao
	 	Title: CEO
              and President

    

     

    
      	 	 	 
	 	INDEPENDENT
              DIRECTOR
	 
 	 
 	 
 
	 	By:  	/s/ Larry
              Goldman
	 	
              
Name: 
              Larry Goldman

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