Document:

Exhibit
10.1

 

SECOND AMENDMENT TO CREDIT
AGREEMENT

 

SECOND AMENDMENT (this “Amendment”), dated as of September 23, 2009, among PENN
NATIONAL GAMING, INC., a Pennsylvania corporation (the “Borrower”),
DEUTSCHE BANK SECURITIES INC., WELLS FARGO SECURITIES, LLC, BANC OF AMERICA
SECURITIES LLC and RBS SECURITIES INC., as co-lead arrangers and co-book
running managers (in such capacities, the “Co-Lead Arrangers”),
WELLS FARGO BANK, NATIONAL ASSOCIATION and BANK OF AMERICA, N.A., as
syndication agents (in such capacities, the “Syndication
Agents”), the Lenders (as defined below) party hereto, DEUTSCHE BANK
TRUST COMPANY AMERICAS, as Swingline Lender, Administrative Agent and
Collateral Agent under the Credit Agreement (as defined below), WACHOVIA BANK
NATIONAL ASSOCIATION, as L/C Lender under the Credit Agreement, and the other
parties hereto to the Credit Agreement, dated as of October 3, 2005 (as
amended, modified or supplemented through the date hereof, the “Credit Agreement”), among the Borrower, the subsidiary guarantors
party thereto from time to time (the “Guarantors”),
the lenders from time to time party thereto (the “Lenders”),
the L/C Lenders party thereto, DEUTSCHE BANK SECURITIES INC., GOLDMAN SACHS
CREDIT PARTNERS L.P. and LEHMAN BROTHERS INC., as joint lead arrangers and
joint bookrunners, GOLDMAN SACHS CREDIT PARTNERS L.P. and LEHMAN COMMERCIAL
PAPER INC., as co-syndication agents, DEUTSCHE BANK TRUST COMPANY AMERICAS, as
swingline lender (in such capacity, together with its successors in such
capacity, the “Swingline Lender”), as administrative
agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as collateral agent (in such
capacity, together with its successors in such capacity, the “Collateral Agent”), and CALYON NEW YORK BRANCH, WELLS FARGO
BANK, NATIONAL ASSOCIATION and BANK OF SCOTLAND, as co-documentation agents.

 

WHEREAS, the Borrower has
requested, and certain Revolving Lenders (“Extending Revolving
Lenders”) have agreed, upon the terms and subject to the conditions
set forth herein, to extend the maturity of all or a portion of their
respective Revolving Commitments and Revolving Loans to July 3, 2012;

 

WHEREAS, the Borrower has
requested, and certain Persons (“Incremental Tranche B
Revolving Lenders”) have agreed, upon the terms and subject to the
conditions set forth herein and in a Tranche B Revolving Lender Addendum
substantially in the form of Annex A hereto (“Tranche B
Revolving Lender Addendum”), executed and delivered by each such
Incremental Tranche B Revolving Lender, to hold Tranche B Revolving Commitments
(as defined below) (the “Incremental Tranche B
Revolving Commitments”); and

 

WHEREAS, the Borrower has
requested that the Lenders agree, upon the terms and subject to the conditions set
forth herein, to amend certain provisions of the Credit Agreement to, among
other things, permit Borrower Loan Purchases (as defined below);

 

NOW THEREFORE, in
consideration of the mutual agreements contained in this Amendment and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

 

SECTION 1.                                Defined Terms.  Unless otherwise indicated, all capitalized
terms used but not defined herein shall have the respective meanings ascribed
to such terms in the Credit Agreement.

 

SECTION 2.                                Amendments to
the Credit Agreement.

 

Effective as of the Second
Amendment Effective Date (as defined below), the Credit Agreement is amended as
follows:

 

 

(a)                                  Section 1.01
of the Credit Agreement is hereby amended:

 

(i)                                     by deleting the
definitions of “Consolidated Senior Leverage Ratio”,
“Incremental Term A/B Loan Commitments”
and “Incremental Term A/B Loans”;

 

(ii)                                  by adding the
following new definitions to appear in proper alphabetical order:

 

“Auction Amount”
shall have the meaning provided in Exhibit P hereto.

 

“Auction Manager”
shall mean DBSI (or such other financial institution as shall be selected by
the Borrower in a written notice to the Administrative Agent) in its capacity
as Auction Manager.

 

“Auction Procedures”
shall mean, collectively, the auction procedures, auction notice, return bid
and Borrower Assignment Agreement in substantially the form set forth as Exhibit P
hereto; provided, however,
the Auction Manager, with the prior written consent of the Borrower, may amend
or modify the procedures, notices, bids and Borrower Assignment Agreement in connection
with any Borrower Loan Purchase (but excluding economic terms of a particular
auction after any Lender has validly tendered Term Loans requested in an offer
relating to such auction, other than to increase the Auction Amount or raise
the Discount Range applicable to such auction); provided,
further, that no such amendments or
modifications may be implemented after 24 hours prior to the date and time return
bids are due in such auction.

 

“Borrower Assignment
Agreement” shall mean, with respect to any assignment to Borrower
pursuant to Section 13.05(d), an Assignment and Acceptance Agreement
substantially in the form of Annex C to the Auction Procedures (as may be
modified from time to time as set forth in the definition of Auction
Procedures).

 

“Borrower Assignment
Effective Date” shall have the meaning provided in Section 13.05(d).

 

“Borrower Letter”
shall mean a Borrower Letter substantially in the form attached as Exhibit Q
hereto.

 

“Borrower Loan Purchase”
shall mean any purchase of Term Loans (other than Term A Facility Loans) by
Borrower pursuant to Section 13.05(d).

 

“Cash Collateralize”
shall mean, in respect of an obligation, to provide and pledge (as a first
priority perfected security interest) cash collateral in Dollars, at a location
and pursuant to documentation in form and substance reasonably satisfactory to
each of the Administrative Agent, the L/C Lender (in the case of obligations
owing to the L/C Lender) and the Swingline Lender (in the case of obligations
owing to the Swingline Lender) (and “Cash Collateral”
and “Cash Collateralization” have
corresponding meanings).

 

“Consolidated Senior
Secured Leverage Ratio” shall mean, as of any date of determination,
the ratio of (a) Consolidated Indebtedness as of such date, minus, without duplication, all unsecured Indebtedness of
Borrower and its Restricted Subsidiaries as of such date, to (b) Consolidated
EBITDA for the Test Period in respect of such date.  The calculation of Consolidated Senior
Secured Leverage Ratio shall be subject to Section 10.08(e).

 

2

 

“Discount Range”
shall have the meaning provided in Exhibit P hereto.

 

“Excluded Information”
shall have the meaning provided in Section 12.06.

 

“Existing Revolving Loans”
shall have the meaning provided in Section 2.13(b).

 

“Existing Revolving Tranche”
shall have the meaning provided in Section 2.13(b).

 

“Existing Term Loan Tranche”
shall have the meaning provided in Section 2.13(a).

 

“Existing Tranche”
shall mean any Existing Term Loan Tranche or Existing Revolving Tranche.

 

“Extended Loans/Commitments”
shall mean Extended Term Loans and/or Extended Revolving Commitments.

 

“Extended Revolving
Commitments” shall have the meaning provided in Section 2.13(b).

 

“Extended Revolving Loans”
shall have the meaning provided in Section 2.13(b).

 

“Extended Term Loans”
shall have the meaning provided in Section 2.13(a).

 

“Extending Lender”
shall have the meaning provided in Section 2.13(c).

 

“Extension Amendment”
shall have the meaning provided in Section 2.13(d).

 

“Extension Date”
shall mean any date on which any Existing Term Loan Tranche or Existing
Revolving Tranche is modified to extend the related scheduled maturity date(s) in
accordance with Section 2.13 (with respect to Lenders under such Existing
Term Loan Tranche or Existing Revolving Tranche which agree to such
modification).

 

“Extension Election”
shall have the meaning provided in Section 2.13(c).

 

“Extension Request”
shall mean any Term Loan Extension Request or Revolving Extension Request.

 

“Extension Series”
shall mean all Extended Term Loans or Extended Revolving Commitments that are
established pursuant to the same Extension Amendment (or any subsequent Extension
Amendment to the extent such Extension Amendment expressly provides that the Extended
Term Loans or Extended Revolving Commitments, as applicable, provided for
therein are intended to be a part of any previously established Extension
Series).

 

“Incremental Existing
Tranche Revolving Commitments” shall have the meaning set forth in Section 2.12(a).

 

“Incremental Revolving
Commitments” shall mean the New Incremental Revolving Commitments
and the Incremental Existing Tranche Revolving Commitments.

 

“Incremental Tranche B
Revolving Commitments” shall have the meaning provided in the Second
Amendment.

 

3

 

“Incremental Tranche B
Revolving Lenders” shall have the meaning provided in the Second
Amendment.

 

“Lender Insolvency Event”
shall mean that (i) a Lender or its Parent Company is insolvent, or is
generally unable to pay its debts as they become due, or admits in writing its
inability to pay its debts as they become due, or makes a general assignment
for the benefit of its creditors, or (ii) such Lender or its Parent
Company is the subject of a bankruptcy, insolvency, reorganization, liquidation
or similar proceeding, or a receiver, trustee, conservator, intervenor or
sequestrator or the like has been appointed for such Lender or its Parent
Company, or such Lender or its Parent Company has taken any action authorizing
or indicating its consent to or acquiescence in any such proceeding or
appointment; provided, however,
that a Lender Insolvency Event shall not be deemed to exist solely as the
result of the acquisition or maintenance of an ownership interest in such
Lender or its Parent Company by a Governmental Authority or an instrumentality
thereof.

 

“New Incremental Revolving
Commitment” shall have the meaning set forth in Section 2.12(a).

 

“New Incremental Revolving
Loan” shall have the meaning set forth in Section 2.12(a).

 

“New Incremental Revolving
Loan Facility” shall mean each credit facility comprising a series
or Tranche of New Incremental Revolving Commitments and any related New Incremental
Revolving Loans.

 

“New Incremental Revolving
Loan Maturity Date” shall mean, with respect to any New Incremental
Revolving Commitments and any related New Incremental Revolving Loans, the
maturity date thereof as determined in accordance with Section 2.12(c).

 

“Parent Company”
shall mean, with respect to a Lender, the bank holding company (as defined in
Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person
owning, beneficially or of record, directly or indirectly, a majority of the
shares of such Lender.

 

“Revolving Extension
Request” shall have the meaning provided in Section 2.13(b).

 

“Second Amendment”
shall mean the Second Amendment to this Agreement.

 

“Second Amendment Effective
Date” shall mean the date of the satisfaction of the conditions
referred to in Section 7 of the Second Amendment.

 

“Term Loan Extension
Request” shall have the meaning provided in Section 2.13(a).

 

“Total Tranche B Revolving Commitments”
shall mean, at any time, the Tranche B Revolving Commitments of all the Tranche
B Revolving Lenders at such time.

 

“Tranche A Letter of Credit”
shall mean a Letter of Credit with an expiration date on or before the fifth
Business Day preceding the Tranche A R/C Maturity Date.

 

“Tranche A R/C Maturity
Date” shall mean October 3, 2010.

 

“Tranche A Revolving
Commitment” shall mean, with respect to each Revolving Lender, the
commitment of such Revolving Lender to make Tranche A Revolving Loans hereunder,
as the same may be (a) changed pursuant to Section 13.05(b), (b) reduced
or terminated

 

4

 

from time to time pursuant
to Sections 2.04 and/or 11.01, as applicable, or (c) increased or otherwise
adjusted from time to time in accordance with this Agreement, including
pursuant to Section 2.12.

 

“Tranche A Revolving
Lenders” shall mean the Lenders from time to time holding Tranche A
Revolving Loans and/or a Tranche A Revolving Commitment as in effect from time
to time.

 

“Tranche A Revolving Loans”
shall mean Revolving Loans made in respect of Tranche A Revolving Commitments.

 

“Tranche B Letter of Credit”
shall mean a Letter of Credit with an expiration date after the fifth Business
Day preceding the Tranche A R/C Maturity Date.

 

“Tranche B R/C Maturity
Date” shall mean July 3, 2012.

 

“Tranche B Revolving
Commitment” shall mean, with respect to each Revolving Lender, the
commitment of such Revolving Lender to make Tranche B Revolving Loans hereunder,
as the same may be (a) changed pursuant to Section 13.05(b), (b) reduced
or terminated from time to time pursuant to Sections 2.04 and/or 11.01, as
applicable, or (c) increased or otherwise adjusted from time to time in
accordance with this Agreement, including pursuant to Section 2.12.

 

“Tranche B Revolving
Lenders” shall mean the Lenders from time to time holding Tranche B
Revolving Loans and/or a Tranche B Revolving Commitment as in effect from time
to time.

 

“Tranche B Revolving Loans”
shall mean Revolving Loans made in respect of Tranche B Revolving Commitments.

 

“Unaffiliated Joint
Ventures” shall mean any joint venture of Borrower or any of its
Subsidiaries; provided, however,
that (i) Borrower and its Subsidiaries shall not own, directly or
indirectly, in excess of 60% of the Equity Interests of such joint venture, (ii) all
Investments in, and other transactions entered into with, such joint venture by
Borrower or any of its Restricted Subsidiaries were made in compliance with
this Agreement and (iii) no Affiliate (other than Borrower or any
Subsidiary) or officer or director of Borrower or any of its Subsidiaries owns
any Equity Interest, or has any material economic interest, in such joint
venture.

 

(iii)                               by restating
the following definitions in their entirety as follows:

 

“Agent” shall
mean any of Administrative Agent, Auction Manager, Collateral Agent, Lead Arrangers,
Co-Syndication Agents and/or Co-Documentation Agents, as applicable.  All discretionary authority vested in
Collateral Agent hereunder may be exercised in consultation with Lead Arrangers
and/or counsel to Lead Arrangers and Administrative Agent.

 

“Alternate Base Rate”  shall mean for any day, the greatest of (i) the
corporate base rate of interest announced by Administrative Agent from time to
time, changing effective on the date of announcement of said corporate base
rate changes, (ii) the Federal Funds Rate plus 0.50% per annum and
(iii) the LIBO Rate for an Interest Period of one-month beginning on such
day (or if such day is not a Business Day, on the immediately preceding
Business Day) plus 100 basis points; provided, however, that the Alternate Base Rate shall not equal the
rate set forth in the

 

5

 

foregoing clause (iii) for
more than thirty (30) days in any 12-month period.  The corporate base rate is not necessarily
the lowest rate charged by Administrative Agent to its customers.

 

“Eligible Assignee”
shall mean and include (i) a commercial bank, an insurance company, a
finance company, a financial institution, any fund that invests in loans or any
other “accredited investor” (as defined in Regulation D) and (ii) solely
for purposes of Borrower Loan Purchases, Borrower; provided,
however, that, other than as set forth
in clause (ii) of this definition, neither Borrower nor any of Borrower’s
Affiliates or Subsidiaries shall be an Eligible Assignee.

 

“Final Maturity Date”
shall mean the latest of the latest R/C Maturity Date, the Term A Facility
Maturity Date, the Term B Facility Maturity Date, the latest New Incremental
Term Loan Maturity Date and the latest final maturity date applicable to any Extended
Term Loans.

 

“Incremental Commitment
Amount” shall mean $700.0 million (as the same may be reduced or
terminated from time to time pursuant to Section 2.04); provided, however, that
in no event shall the aggregate amount of all Incremental Revolving Commitments
provided pursuant to Section 2.12 exceed $200.0 million.  Notwithstanding the foregoing, the
Incremental Commitment Amount (and, in the case of Incremental Revolving
Commitments, the permitted amount of Incremental Revolving Commitments referred
to in the preceding sentence) shall exclude, and not be reduced by, (i) the
Incremental Tranche B Revolving Commitments extended on the Second Amendment Effective
Date or (ii) the amount of Incremental Term Loan Commitments and Incremental
Revolving Commitments that are used, concurrently with the extension of such
Incremental Commitments, to repay then-outstanding Term Loans, in the case of
Incremental Term Loan Commitments, or to repay, replace and terminate
then-outstanding Revolving Commitments and Revolving Loans, in the case of
Incremental Revolving Commitments and, in each case, to pay fees and expenses
directly related to the extension of such Incremental Commitments.

 

“Incremental Commitments”
shall mean the Incremental Revolving Commitments, the Incremental Term B Loan
Commitments and the New Incremental Term Loan Commitments.

 

“Incremental Term Loan
Commitments” shall mean the Incremental Term B Loan Commitments and
the New Incremental Term Loan Commitments.

 

“Incremental Term Loans”
shall mean the Incremental Term B Loans and the New Incremental Term Loans.

 

“Lender Default”
shall mean, in respect of any Lender, (i) such Lender has failed, for more
than one (1) Business Day, to comply with its obligations under this
Agreement to make a Loan, make a payment to the L/C Lender in respect of an L/C
Disbursement and/or make a payment to the Swingline Lender in respect of a
Swingline Loan (each a “funding obligation”),
(ii) such Lender has notified the Administrative Agent, or has stated
publicly, that it will not comply with any such funding obligation hereunder,
or has defaulted generally (excluding bona fide disputes) on its funding
obligations under other loan agreements or credit agreements or other similar
agreements or (iii) a Lender Insolvency Event has occurred and is
continuing with respect to such Lender. 
Any determination of a Lender Default under clauses (i) through (iii) above
will be made by the Administrative Agent in its reasonable discretion acting in
good faith.

 

“R/C Maturity Date”
shall mean (a) the Tranche A R/C Maturity Date in the case of Tranche A
Revolving Commitments or Tranche A Letters of Credit, (b) the Tranche B
R/C Maturity Date in the case of Tranche B Revolving Commitments or Tranche B
Letters of Credit and

 

6

 

(c) the maturity date set forth in the applicable Extension
Amendment or Incremental Joinder Agreement in the case of any other Tranche of
Revolving Commitments.  Unless the
context otherwise requires, references to the R/C Maturity Date in this
Agreement shall mean the latest maturity date of any Tranche of Revolving
Commitments then in effect.

 

“Required Tranche Lenders”  shall mean:  (a) with
respect to Lenders having Revolving Commitments or Revolving Loans of any
particular Tranche, Non-Defaulting Lenders having more than 50% of the
aggregate sum of the Unutilized R/C Commitments, Revolving Loans, Swingline
Exposure and L/C Liabilities, in each case, in respect of such Tranche and then
outstanding; (b) with respect to Lenders having Term A Facility Loans or
Term A Facility Commitments, Lenders having more than 50% of the aggregate sum
of the Term A Facility Loans and Term A Facility Commitments then outstanding; (c) with
respect to Lenders having Term B Facility Loans, Term B Facility Commitments or
Incremental Term B Loan Commitments, Lenders having more than 50% of the
aggregate sum of the Term B Facility Loans, Term B Facility Commitments and
Incremental Term B Loan Commitments then outstanding; and (d) for each New
Incremental Term Loan Facility, if applicable, with respect to Lenders having
New Incremental Term Loans or New Incremental Term Loan Commitments, in each case,
in respect of such New Incremental Term Loan Facility, Lenders having more than
50% of the aggregate sum of such New Incremental Term Loans and New Incremental
Term Loan Commitments then outstanding.

 

“Revolving Availability
Period” shall mean, (i) with respect to the Tranche A Revolving
Commitments, the period from and including the Closing Date to but excluding
the earlier of the Tranche A R/C Maturity Date and the date of termination of
the Tranche A Revolving Commitments, (ii) with respect to Tranche B
Revolving Commitments, the period from and including the Second Amendment
Effective Date to but excluding the earlier of the Tranche B R/C Maturity Date
and the date of termination of the Tranche B Revolving Commitments and (iii) with
respect to any other Tranche of Revolving Commitments, the period from and
including the date such Tranche of Revolving Commitments is established to but
excluding the earlier of the maturity date set forth in the applicable
Extension Amendment or Incremental Joinder Agreement and the date of
termination of such Tranche of Revolving Commitments.  Unless the context otherwise requires,
references in this Agreement to the Revolving Availability Period shall mean
the Revolving Availability Period ending on the latest R/C Maturity Date then
in effect.

 

“Term A Facility”  shall mean the credit facility comprising the Term A
Facility Commitments and the Term A Facility Loans.

 

“Term A Facility Lenders”  shall mean (a) on the Closing Date, the Lenders having
Term A Facility Commitments on Annex A-2 hereof and (b) thereafter,
Lenders from time to time holding any Term A Facility Loans, as the case may
be, after giving effect to any assignments thereof permitted by Section 13.05(b).

 

“Term A Facility Loans” shall mean,
collectively, term loans made pursuant to Section 2.01(b).

 

“Term Facilities”  shall
mean, collectively, the credit facilities comprising the Term A Facility, the
Term B Facility, any New Incremental Term Loan Facilities and the credit
facilities comprising the Extended Term Loans, if any.

 

“Term Loans”  shall
mean, collectively, the Term A Facility Loans, the Term B Facility Loans, any
Extended Term Loans and any New Incremental Term Loans.

 

7

 

“Tranche”  shall mean (i) with respect to Lenders, each of the
following classes of Lenders:  (a) Lenders
having Tranche A Revolving Loans or Tranche A Revolving Commitments, (b) Lenders
having Tranche B Revolving Loans or Tranche B Revolving Commitments, (c) Lenders
having such other Tranche of Revolving Loans or Revolving Commitments created
pursuant to an Extension Amendment or Incremental Joinder Agreement, (d) Lenders
having Term A Facility Commitments or Term A Facility Loans, (e) Lenders
having Term B Facility Commitments, Incremental Term B Loan  Commitments
or Term B Facility Loans and (f) Lenders having such other Tranche of Term
Loan Commitments or Term Loans created pursuant to an Extension Amendment or
Incremental Joinder Agreement, and (ii) with respect to Loans or
Commitments, each of the following classes of Loans or Commitments:  (a) Tranche A Revolving Loans or Tranche
A Revolving Commitments, (b) Tranche B Revolving Loans or Tranche B
Revolving Commitments, (c) such other Tranche of Revolving Commitments or
Revolving Loans created pursuant to an Extension Amendment or Incremental
Joinder Agreement, (d) Term A Facility Commitments or Term A Facility
Loans, (e) Term B Facility Commitments, Incremental Term B Loan  Commitments or Term B Facility Loans and (f) such
other Tranche of Term Loan Commitments or Term Loans created pursuant to an
Extension Amendment or Incremental Joinder Agreement.

 

(iv)                              by amending the
definition of “Adjusted Net Income” by replacing
clause (b) of such definition with the following:

 

“(b) any non-recurring or extraordinary items of income (including
cancellation of indebtedness income) or non-recurring or extraordinary items of
cost or expense for such period and the net tax consequences thereof for such
period (as determined in good faith by Borrower), except that Adjusted Net
Income for such period shall be increased (to the extent not otherwise included
in Adjusted Net Income) by the amount of insurance proceeds received during
such period in respect of any Casualty Event; provided,
however, that (A) such amount of
insurance proceeds plus the
Adjusted Net Income (excluding such insurance proceeds), if any, attributable
to the Property subject to such Casualty Event for such period shall not exceed
(B) an amount equal to the Adjusted Net Income attributable to such
Property for the previous Test Period most recently ended prior to the date of
such Casualty Event (calculated on a pro forma
annualized basis to the extent such Property was not operational for the full
previous Test Period)”.

 

(v)                                 by amending the
definition of “Adjusted Net Income” by replacing
clause (g) of such definition with the following:

 

“(g)  income of any Unrestricted Subsidiaries, Joint Ventures
(other than Joint Ventures that are Restricted Subsidiaries) or 50% or
less-owned entities, except that Adjusted Net Income shall be increased (to the
extent not otherwise included in Adjusted Net Income) to the extent of the
amount of dividends or other distributions or payments (including management
fees) actually received in cash from such Unrestricted Subsidiaries, Joint
Ventures or 50% or less-owned entities”.

 

(vi)                              by amending the
definition of “Cash Equivalents” by deleting the “or”
before clause (g) of such definition and adding the following after such
clause (g) and before the “.”:

 

“; or (h) solely with respect to any Foreign Subsidiary, (i) marketable
direct obligations issued by, or unconditionally guaranteed by, the country in
which such Foreign Subsidiary maintains its chief executive office and
principal place of business, or issued by any agency of such country and backed
by the full faith and credit of such country, in each case maturing within one
year from the date of acquisition, so long as the indebtedness of such country
is rated at least “A”

 

8

 

or
the equivalent thereof by S&P or “A2” or the equivalent thereof by Moody’s
and (ii) time deposits, certificates of deposit or bankers’ acceptances
issued by any commercial bank which is organized and existing under the laws of
the country in which such Foreign Subsidiary maintains its chief executive
office and principal place of business, and whose short-term commercial paper
rating from S&P is at least “A-1” or the equivalent thereof or from Moody’s
is at least “P-1” or the equivalent thereof and maturing within one year of the
date of acquisition.”

 

(vii)                           by amending the
definition of “Consolidated EBITDA” by replacing
clause (4) of such definition with the following:

 

“(4) any extraordinary non-cash items (other than cancellation of
indebtedness income)”.

 

(viii)                        by amending the
definition of “Debt Issuance” to replace each
occurrence of the term “Consolidated Senior Leverage Ratio” in such definition
with the term “Consolidated Senior Secured Leverage Ratio”.

 

(ix)                                by amending the
definition of “Excess Cash Flow” by inserting the
following after “Commitments)” and before the “;” at the end of the first
sentence of clause (h) of such definition:

 

“and excluding Indebtedness repurchased, redeemed, retired, acquired,
defeased or cancelled pursuant to clause (n) of Section 10.10 hereof”.

 

(x)                                   by amending the
definition of “Fixed Charges” by replacing the
phrase “Asset Sales not in the ordinary course of business” in clause (c) of
such definition with the following:

 

“(x) Asset Sales not in the ordinary course of
business or (y) non-recurring or extraordinary items (including
cancellation of indebtedness income), in each case, to the extent that such
Asset Sales or non-recurring or extraordinary items are (A) excluded from
Adjusted Net Income pursuant to the definition thereof and (B) otherwise
not included in Consolidated EBITDA pursuant to the definition thereof”.

 

(xi)                                by amending the
definition of “Interest Period” by inserting “of
such Revolving Loan” immediately after each reference to “R/C Maturity Date” in
such definition.

 

(xii)                             by amending the
definition of “Investments” by replacing clause (y) of
the proviso of such definition with the following:

 

“(y) the amount of Investments in such Subsidiary that was deemed
to have been made (directly or indirectly) at the time of, or has been made
(directly or indirectly) since, the Designation of such Subsidiary as an
Unrestricted Subsidiary, to the extent that such amount constitutes an
outstanding Investment under clauses (i), (j), (l) or (m) of Section 10.04
at the time of such Revocation”.

 

(xiii)                          by amending the
definition of “L/C Liability” by replacing the
second sentence of such definition with the following:

 

“The L/C Liability of any Revolving Lender at any time shall mean such
Revolving Lender’s participations and obligations in respect of outstanding
Letters of Credit at such time”.

 

9

 

(xiv)                         by amending the
definition of “LIBO Rate” by adding the following
after the first sentence of such definition:

 

“Notwithstanding the foregoing, for purposes of clause (c) of the
definition of Alternate Base Rate, the rates referred to above shall be the
rates as of 11:00 a.m., London, England time, on the date of determination
(rather than the second Business Day preceding the date of determination).”

 

(xv)                            by amending the
definition of “Maintenance Capital Expenditures”
by replacing the phrase “which materially add to or significantly improve any
such property” in such definition with the following:

 

“(x) which materially add to or significantly improve any such
property or (y) expended with Net Available Proceeds from Casualty Events”.

 

(xvi)                         by amending the
definition of “Permitted Acquisition” by
replacing the phrase “all or substantially all the assets of, or all the Equity
Interests in, a person or business of a person” in such definition with the
following:

 

“all or substantially all the business, property or assets of, or
Equity Interests in, a person or any division or line of business of a person”.

 

(xvii)                      by amending the
definition of “Permitted Subordinated Indebtedness”
by replacing clause (a) of such definition with the following:

 

“(a) (i) that contains subordination provisions that are
reasonably satisfactory to Lead Arrangers (it being understood that
subordination provisions providing that such Indebtedness is at least as
subordinated in all material respects to the Obligations then outstanding as
the obligations under the Borrower Outstanding Bond Indentures, as in effect on
the date hereof, to the Obligations are reasonably satisfactory to Lead
Arrangers) or (ii) that contains subordination provisions that are
reasonably satisfactory to DBSI and”.

 

(xviii)                   by amending the definition
of “R/C Percentage” by adding the following
after the first sentence of such definition:

 

“For the purpose of determining the participation (and obligation) of a
Revolving Lender in respect of a Tranche B Letter of Credit, the R/C Percentage
of such Revolving Lender shall mean a fraction (expressed as a percentage) the
numerator of which is the Tranche B Revolving Commitment of such Revolving
Lender at such time and the denominator of which is the Total Tranche B
Revolving Commitments at such time.”

 

(xix)                           by amending the
definition of “Telerate British Bankers Assoc. Interest Settlement
Rates Page” by replacing the phrase “Page 3750 on the Telerate
System Incorporated Service” with the phrase “Reuters Screen LIBOR01”.

 

(b)                                 Section 1.02
of the Credit Agreement is hereby amended by deleting the following terms and
related cross-references from the list of definitions in such Section: “Incremental Revolving Commitment”, “Incremental
Term A Loan Commitments” and “Incremental Term A Loans”.

 

(c)                                  Section 1.04
of the Credit Agreement is hereby amended by replacing the second sentence
thereof with the following:

 

10

 

“The “Class” of a Loan (or of a Commitment to make a Loan) refers to
whether such Loan is a Tranche A Revolving Loan, Tranche B Revolving Loan, any
particular Tranche of New Incremental Revolving Loans, any particular Tranche
of Revolving Loans created pursuant to an Extension Amendment, Term A Facility
Loan, Term B Facility Loan, any particular Tranche of New Incremental Term
Loans, any particular Tranche of Term Loans created pursuant to an Extension
Amendment or a Swingline Loan, each of which constitutes a Class.”

 

(d)                                 Section 2.01(a) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(a)                            Revolving
Loans.  With respect to each Tranche
of Revolving Commitments, each Revolving Lender holding Revolving Commitments
in respect of such Tranche agrees, severally and not jointly, on the terms and
conditions of this Agreement, to make revolving loans (the “Revolving Loans”)  to Borrower in
Dollars from time to time, on any Business Day during the Revolving
Availability Period applicable to such Tranche, in an aggregate principal
amount at any one time outstanding not exceeding the amount of such Revolving
Commitment of such Revolving Lender in respect of such Tranche as in effect
from time to time; provided, however,  that, after
giving effect to any Borrowing of Revolving Loans, (i) the sum of the aggregate
principal amount of (without duplication) all Revolving Loans and Swingline
Loans then outstanding plus the
aggregate amount of all L/C Liabilities shall not exceed the Total Revolving
Commitments as in effect at such time, (ii) the Revolving Exposure of such
Revolving Lender shall not exceed such Revolving Lender’s Revolving Commitments
in effect at such time and (iii) the Revolving Exposure of such Revolving
Lender with respect to any particular Tranche of Revolving Commitments shall
not exceed such Revolving Lender’s Revolving Commitments in effect at such time
in respect of such Tranche.  Subject to
the terms and conditions of this Agreement, during the applicable Revolving
Availability Period, Borrower may borrow, repay and re-borrow the amount of the
Revolving Commitments in respect of the relevant Tranche by means of ABR Loans
and LIBOR Loans.”

 

(e)                                  Section 2.01(d) of
the Credit Agreement is hereby amended by replacing the first sentence thereof
with the following:

 

“No more than 30 separate Interest Periods in respect of LIBOR Loans
may be outstanding at any one time.”

 

(f)                                    Section 2.01(e)(i) of
the Credit Agreement is hereby amended by replacing clause (y) of the
first sentence thereof with the following:

 

“(y) (1) the sum of the total Revolving Exposures exceeding
the Total Revolving Commitments or (2) the Revolving Exposure of any
Revolving Lender exceeding the Revolving Commitments of such Lender then in
effect;”.

 

(g)                                 Section 2.02
of the Credit Agreement is hereby amended by adding the following after “R/C
Percentage” and before the “.” at the end of the third sentence of such section:

 

“(for the avoidance of doubt, for so long as
multiple Tranches of Revolving Commitments are outstanding, each borrowing of Revolving
Loans shall be made pro rata across
all such Tranches (based on the aggregate Unutilized R/C Commitments with
respect to each such Tranche); provided, however, that borrowings of Revolving Loans made on the
Second Amendment Effective Date and on each Incremental Effective Date may be
made on such basis as shall result in all Revolving Loans outstanding on the
Second Amendment Effective Date or such Incremental Effective Date, as
applicable, (after giving effect to such borrowings) being held by all

 

11

 

Revolving
Lenders (including Incremental Tranche B Revolving Lenders or any Revolving
Lender which is acquiring a new or additional Revolving Commitment on such
Incremental Effective Date, as applicable) ratably in accordance with their
Revolving Commitments (after giving effect to the extension of Incremental
Tranche B Revolving Commitments or the relevant Incremental Revolving
Commitments, as applicable); provided, further, that borrowings of Revolving Loans made on or after
the fifth Business Day preceding the R/C Maturity Date applicable to a particular
Tranche shall be made pro rata across
all other Tranches)”.

 

(h)                                 Section 2.03(a)(i) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(i) the aggregate amount of (A) all L/C Liabilities, plus the aggregate principal amount of all the Revolving Loans and Swingline Loans then
outstanding, exceed at any time the Total Revolving Commitments as in effect at
such time or (B) all L/C Liabilities in respect of
Tranche B Letters of Credit, plus the
aggregate principal amount of all the
Tranche B Revolving Loans and Swingline Loans (to the extent constituting
Swingline Exposure in respect of Tranche B Revolving Commitments) then
outstanding, exceed at any time the Total Tranche B Revolving Commitments as in
effect at such time,”

 

(i)                                     Section 2.03(a)(ii) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“the sum of the
aggregate principal amount of all (i) Revolving Loans of any Revolving
Lender then outstanding, plus such
Revolving Lender’s L/C Liability plus such
Revolving Lender’s Swingline Exposure exceed at any time such Revolving Lender’s
Revolving Commitment as in effect at such time or (ii) Tranche B Revolving
Loans of any Tranche B Revolving Lender then outstanding, plus
such Tranche B Revolving Lender’s L/C Liability in respect of Tranche B Letters
of Credit plus such Tranche B Revolving Lender’s
Swingline Exposure (with respect to its Tranche B Revolving Commitments)  exceed at any time such Tranche B Revolving
Lender’s Tranche B Revolving Commitment as in effect at such time,”

 

(j)                                     Section 2.03(a)(v) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(v)                           the expiration date of any Letter of Credit
extend beyond the earlier of (x) the fifth Business Day preceding the next
succeeding R/C Maturity Date (or, in the case of Tranche B Letters of Credit
only, the 364th day after the Tranche B R/C Maturity Date) and (y) the
date twelve months following the date of such issuance for standby Letters of
Credit or 180 days after the date of such issuance for commercial documentary
Letters of Credit, unless the Required Revolving Lenders have approved such
expiry date in writing (but never beyond the fifth Business Day prior to the
next succeeding R/C Maturity Date (or, in the case of Tranche B Letters of
Credit only, the 364th day after the Tranche B R/C Maturity Date)); provided, however, that
any standby Letter of Credit may be automatically extendible for periods of up
to one year (but never beyond the fifth Business Day prior to the next
succeeding R/C Maturity Date (or, in the case of Tranche B Letters of Credit
only, the 364th day after the Tranche B R/C Maturity Date)).”

 

(k)                                  Section 2.03(b) of
the Credit Agreement is hereby amended by adding the following after “R/C
Maturity Date” and before the “.” at the end of the second sentence of such section:

 

“(or, in the case of Tranche B Letters of
Credit only, the 364th day after the Tranche B R/C Maturity Date)”.

 

(l)                                     Section 2.03(d) of
the Credit Agreement is hereby amended by replacing the fourth sentence thereof
with the following:

 

12

 

“Borrower hereby unconditionally agrees to pay and reimburse L/C Lender
for the amount of payment under such Letter of Credit in Dollars, together with
interest thereon at a rate per annum equal
to the Alternate Base Rate in effect from time to time plus
the Applicable Margin applicable to (i) if such Letter of Credit is a
Tranche A Letter of Credit, Revolving Loans (determined based on such Alternate
Base Rate plus a weighted average of the
Applicable Margins applicable to each Tranche of Revolving Commitments then
outstanding based on the respective Revolving Commitments outstanding under
each such Tranche) or (ii) if such Letter of Credit is a Tranche B Letter
of Credit, Tranche B Revolving Loans, in each case, that are maintained as ABR
Loans as are in effect from time to time from the date payment was made to such
beneficiary to the date on which payment is due, such payment to be made not
later than the first Business Day after the date on which Borrower receives the
applicable L/C Payment Notice (or the second Business Day thereafter if such L/C
Payment Notice is received on a date that is not a Business Day or after 1:00 p.m.
(New York City time) on a Business Day).”

 

(m)                               Section 2.03(h) of
the Credit Agreement is hereby amended by replacing the first and second
sentence thereof with the following:

 

“Borrower shall pay to Administrative Agent, for the account of each
Revolving Lender, in respect of each Letter of Credit for which such Revolving
Lender has a L/C Liability, a letter of credit commission equal to (x) the
rate per annum equal to the Applicable Margin
for (A) if such Letter of Credit is a Tranche A Letter of Credit,
Revolving Loans made by such Revolving Lender (determined based on a weighted
average of the Applicable Margins applicable to each Tranche of Revolving
Commitments held by such Revolving Lender based on such Revolving Lender’s
respective Revolving Commitments outstanding under each such Tranche) or (B) if
such Letter of Credit is a Tranche B Letter of Credit, Tranche B Revolving
Loans, in each case, that are LIBOR Loans in effect from time to time,
multiplied by (y) the daily Dollar Equivalent of the Stated Amount of each
Letter of Credit (such Dollar Equivalent to be determined in accordance with Section 1.06)
for the period from and including the date of issuance of each Letter of Credit
(i) in the case of a Letter of Credit which expires in accordance with its
terms, to and including such expiration date and (ii) in the case of a
Letter of Credit which is drawn in full or is otherwise terminated other than
on the stated expiration date of such Letter of Credit, to and excluding the
date on such Letter of Credit is drawn in full or is terminated.  Such commission will be non-refundable and is
to be paid (1) quarterly in arrears on each Quarterly Date, (2) on
each R/C Maturity Date (other than in respect of Letters of Credit with a
stated expiration date after such R/C Maturity Date) and (3) on the first
day on or after the Tranche B R/C Maturity Date upon which no Letters of Credit
remain outstanding.”

 

(n)                                 Section 2.03(h) of
the Credit Agreement is hereby amended by adding the following after “Quarterly
Date” and before the “.” at the end of the third sentence thereof:

 

“and on the first day on or after the Tranche B R/C Maturity Date upon
which no Letters of Credit remain outstanding”.

 

(o)                                 Section 2.03(j) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“If and to the extent that any Revolving Lender fails to pay an amount
required to be paid pursuant to Section 2.03(f) or 2.03(g) on
the due date therefor, such Revolving Lender shall pay to L/C Lender (through
Administrative Agent) interest on such amount for each day from and including
such due date to but excluding the date such payment is made at a rate per annum equal to the Federal Funds Rate (as in effect from
time to time) for the first three days and at the interest rate (in effect from
time to time) applicable to (A) if the relevant Letter of Credit is a
Tranche A

 

13

 

Letter
of Credit, Revolving Loans made by such Revolving Lender (determined based on a
weighted average of the rates applicable to each Tranche of Revolving
Commitments held by such Revolving Lender based on such Revolving Lender’s
respective Revolving Commitments outstanding under each such Tranche) or (B) if
the relevant Letter of Credit is a Tranche B Letter of Credit, Tranche B
Revolving Loans, in each case, that are maintained as ABR Loans for each day
thereafter.”

 

(p)                                 Section 2.04(a)(iv) of
the Credit Agreement is hereby amended by deleting the phrase “, and to zero on
the date that is the third anniversary of the Closing Date” at the end of such
section.

 

(q)                                 Section 2.04(a)(v) of
the Credit Agreement is hereby amended by replacing the phrase “, and to zero
on the date that is the third anniversary of the Closing Date” at the end of
such section with the following:

 

“; provided, however,
that the Incremental Commitment Amount shall not be reduced by (i) the
Incremental Tranche B Revolving Commitments extended on the Second Amendment Effective
Date or (ii) the amount of Incremental Term Loan Commitments and
Incremental Revolving Commitments that are used, concurrently with the
extension of such Incremental Commitments, to repay then-outstanding Term
Loans, in the case of Incremental Term Loan Commitments, or to repay, replace
and terminate then-outstanding Revolving Commitments and Revolving Loans, in
the case of Incremental Revolving Commitments and, in each case, to pay fees
and expenses directly related to the extension of such Incremental Commitments”.

 

(r)                                    Section 2.04(a)(vi) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(vi) The aggregate amount of the
Revolving Commitments of any Tranche shall be automatically and permanently reduced
to zero on the R/C Maturity Date applicable to such Tranche and the L/C
Commitments and the Swingline Commitment shall be automatically and permanently
reduced to zero on the latest R/C Maturity Date.”

 

(s)                                  Section 2.04(b) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“Borrower shall have the right at any time or from time to time
(without premium or penalty except breakage costs (if any) pursuant to Section 5.05)
(i) so long as no Revolving Loans, Swingline Loans or L/C Liabilities will
be outstanding as of the date specified for termination (after giving effect to
all transactions occurring on such date), to terminate the Revolving Commitments
in their entirety, (ii) to reduce the aggregate amount of the Unutilized
R/C Commitments (which shall be pro rata among
Revolving Lenders) and (iii) so long as the remaining Tranche A Revolving
Commitments will equal or exceed the outstanding Tranche A Revolving Loans, Swingline
Exposure and L/C Liabilities of Tranche A Revolving Lenders in respect of such
Tranche A Revolving Commitments, to reduce the aggregate amount of the Tranche
A Revolving Commitments (which shall be pro rata among
Tranche A Revolving Lenders) without concurrently reducing the aggregate amount
of the Tranche B Revolving Commitments; provided, however, that (x) Borrower shall give notice of each
such termination or reduction as provided in Section 4.05, and (y) each
partial reduction shall be in an aggregate amount at least equal to $5.0 million
(or any whole multiple of $1.0 million in excess thereof) or, if less, the
remaining Unutilized R/C Commitments; provided, further, that, in the case of clause (iii) participations
in Letters of Credit and Swingline Loans held by Tranche A Revolving Lenders
shall be reallocated to Tranche B Revolving Lenders as shall be necessary in
order that, after giving effect to such reallocation, such participations will
be held by Tranche A Revolving Lenders and Tranche B 

 

14

 

Revolving
Lenders ratably in accordance with their R/C Percentages after giving effect to
such reduction in Tranche A Revolving Commitments.”

 

(t)                                    Section 2.05(a) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(a)                            Borrower shall
pay to Administrative Agent for the account of each Revolving Lender (other
than a Defaulting Lender), with respect to such Revolving Lender’s Revolving
Commitments, a commitment fee for the period from and including the Closing
Date (or, following the conversion of such Revolving Commitment into another
Tranche, the applicable Extension Date) to but not including the earlier of (i) the
date such Revolving Commitment is terminated or expires (or is modified to
constitute another Tranche) and (ii) the R/C Maturity Date applicable to
such Revolving Commitment, in each case, computed at a rate per annum equal to the Applicable Fee Percentage in effect
from time to time during such period on the daily average amount of such
Revolving Lender’s Unutilized R/C Commitment. 
For purposes of computing commitment fees with respect to Revolving
Commitments, a Revolving Commitment of a Revolving Lender shall be deemed to be
used to the extent of the outstanding Revolving Loans and L/C Liability of such
Revolving Lender (and the Swingline Exposure of such Revolving Lender shall be
disregarded for such purpose).  Any
accrued commitment fee under this Section 2.05(a) in respect of any
Revolving Commitment shall be payable in arrears on each Quarterly Date and on
the earlier of (i) the date such Revolving Commitment is terminated or
expires (or is modified to constitute another Tranche) and (ii) the R/C
Maturity Date applicable to such Revolving Commitment; provided,
however, that accrued commitment fees in
respect of Revolving Commitments modified to constitute Tranche B Revolving
Commitments on the Second Amendment Effective Date shall be payable on the next
succeeding Quarterly Date after the Second Amendment Effective Date.”

 

(u)                                 Section 2.05
of the Credit Agreement is hereby amended by adding new clause (d) to the
end of such section as follows

 

“(d)                           Borrower shall
pay to the Auction Manager for its own account, in connection with any Borrower
Loan Purchase, such fees as may be agreed between Borrower and the Auction
Manager.”

 

(v)                                 Section 2.09(b)(i) of
the Credit Agreement is hereby amended by adding the following after “Borrower”
and before the “.” at the end of Section 2.09(b)(i):

 

“; provided, however,
that, except in connection with a reduction in Tranche A Revolving Commitments
pursuant to Section 2.04(b)(iii), prior to the Tranche A R/C Maturity
Date, each payment or prepayment of principal of Revolving Loans shall be made
for the account of the relevant Lenders pro rata in
accordance with the respective unpaid principal amount of Revolving Loans held by
them”.

 

(w)                               Section 2.09(b)(iii) of
the Credit Agreement is hereby amended by replacing the term “Consolidated
Senior Leverage Ratio” in such section with the term “Consolidated Senior
Secured Leverage Ratio”.

 

(x)                                   Section 2.10(a)(iv) of
the Credit Agreement is hereby amended by replacing each occurrence of the term
“Consolidated Senior Leverage Ratio” in such section with the term “Consolidated
Senior Secured Leverage Ratio”.

 

15

 

(y)                                 Section 2.10
of the Credit Agreement is hereby amended by adding new clause (f) to the
end of such section as follows:

 

“(f)                              Outstanding
Letters of Credit.   If any
Letter of Credit is outstanding on the 30th day prior to the Tranche B R/C
Maturity Date which has an expiry date later than the fifth Business Day
preceding the Tranche B R/C Maturity Date (or which, pursuant to its terms, may
be extended to a date later than the fifth Business Day preceding the Tranche B
R/C Maturity Date), the Borrower shall, on such 30th day, either (x) pay
to the Administrative Agent an amount of cash equal to 105% of the aggregate
Stated Amount of all such Letters of Credit to be held as security for all
obligations of the Borrower to the L/C Lender in respect of such Letters of
Credit in a Cash Collateral account to be established by, and under the sole
dominion and control of, the Administrative Agent (it being understood that
such Cash Collateral shall be released to the extent that such aggregate Stated
Amount is reduced upon the expiration or termination of such Letters of Credit,
so that the Cash Collateral shall not exceed 105% of the aggregate Stated
Amount of such Letters of Credit outstanding at any particular time) or (y) deliver
to the Administrative Agent a standby letter of credit (other than a Letter of
Credit) in favor of the Administrative Agent and in a stated amount equal to
105% of the aggregate Stated Amount of all such Letters of Credit, which
standby letter of credit shall be in form and substance, and issued by a
financially sound financial institution, reasonably acceptable to the Administrative
Agent.”

 

(z)                                   Section 2.11(a) of
the Credit Agreement is hereby amended by adding the following after the phrase
“generally able to do so” and before the term “and/or” in clause (x) of
such section:

 

“or such Lender is, and has been for a period of more than 10 Business
Days, a Defaulting Lender”.

 

(aa)                            Section 2.11(a) of
the Credit Agreement is hereby amended by replacing the parenthetical
immediately following the phrase “and in each case L/C Interests of, the
Replaced Lender” in clause (i) of the proviso to the first sentence of
such section with the following:

 

“(or if the Replaced Lender is being replaced as a result of (1) clause
(y) above and the applicable consent requires approval of all Lenders of a
particular Tranche but not all Lenders, then the Replacement Lender shall
acquire all Commitments, Loans and L/C Interests of such Replaced Lender under
such Tranche or (2) such Replaced Lender being a Defaulting Lender, then
the Replacement Lender shall acquire all Revolving Commitments, Revolving Loans
and L/C Interests of such Replaced Lender under one or more Tranches of
Revolving Commitments)”.

 

(bb)                          Section 2.12(a) of
the Credit Agreement is hereby amended by replacing the first sentence thereof
with the following:

 

“Borrower may, at any time during the period
commencing on the Second Amendment Effective Date, by written notice to
Administrative Agent, request (i) the establishment of one or more new
Tranches of Revolving Commitments (“New Incremental Revolving
Commitments” and the related Revolving Loans, “New
Incremental Revolving Loans”), (ii) an increase to any existing
Tranche of Revolving Commitments (the “Incremental Existing
Tranche Revolving Commitments”), (iii)  the establishment
of additional Term B Facility Loans with terms and conditions identical to the
terms and conditions of existing Term B Facility Loans hereunder (“Incremental Term B Loans” and the related commitments, the “Incremental Term B Loan Commitments”); provided,
however, that, subject to Section 3.02(d),
upfront fees or original issue discount may be paid to Lenders providing such
Incremental Term B Loan Commitments

 

16

 

and/or (iv) the
establishment of one or more new term loans (“New
Incremental Term Loans” and the related commitments, “New Incremental Term Loan Commitments”); provided, however, that (x) the
aggregate amount of all Incremental Commitments provided pursuant to this Section 2.12
shall not exceed the Incremental Commitment Amount (excluding, for the
avoidance of doubt, Incremental Commitments excluded from the Incremental
Commitment Amount pursuant to the definition thereof) and (y) any such
request for Incremental Commitments shall be in a minimum amount of $25.0 million.”

 

(cc)                            Section 2.12(b) of
the Credit Agreement is hereby amended by replacing the term “Increased
Commitments” in such section with the term “Incremental Commitments”.

 

(dd)                          Section 2.12(b)(vi) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(vi)                        the pro forma Consolidated Senior Secured Leverage Ratio of
Borrower (after giving effect to (A) the borrowing of any such applicable
Incremental Term Loans, (B) the application of the proceeds therefrom and (C) the
application of Section 10.08(e) to any transactions of the type
referenced therein (1) that have occurred after the most recent Test Date
for which financial statements are available pursuant to Section 9.04(a) or
9.04(b), but on or prior to the date of determination of such Consolidated
Senior Secured Leverage Ratio pursuant to this clause (vi) and (2) the
occurrence of which, and any resulting pro forma
adjustments to the amount of Consolidated Indebtedness, Consolidated EBITDA
and/or Consolidated Interest Expense to be applied pursuant to this sub-clause (C) in
calculating such pro forma Consolidated Senior
Secured Leverage Ratio for the applicable pro forma Test
Period, have been publicly disclosed by the Borrower prior to such date of
determination) would not exceed the maximum Consolidated Senior Secured
Leverage Ratio permitted by Section 10.08(b) as of the most recent
Test Date for which financial statements are available pursuant to Section 9.04(a) or
9.04(b).”

 

(ee)                            Section 2.12(b) of
the Credit Agreement is hereby amended by replacing the first and second
sentence of the last paragraph thereof with the following:

 

“Upon the effectiveness of any Incremental Commitment pursuant to this Section 2.12,
any Incremental  Lender that was not a Lender
hereunder at such time shall become a Lender hereunder.  Administrative Agent shall promptly notify
each Lender as to the effectiveness of any Incremental Commitments, and (i) in
the case of Incremental Revolving Commitments, the Total Revolving Commitments
under, and for all purpose of this Agreement, shall be increased by the
aggregate amount of such Incremental Revolving Commitments and Annex A-1 shall
be modified to reflect the revised Revolving Commitments of the affected
Lenders, (ii) any New Incremental Revolving Loans shall be deemed to be
additional Revolving Loans hereunder, (iii) any Revolving Loans made under
Incremental Existing Tranche Revolving Commitments shall be deemed to be
Revolving Loans of the relevant Tranche hereunder, (iv) any Incremental
Term B Loans (to the extent funded) shall be deemed to be Term B Facility Loans
hereunder and (v) any New Incremental Term Loans shall be deemed to be
additional Term Loans hereunder.”

 

(ff)                                Section 2.12(c)(i) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(i) (A) the terms and provisions of any New Incremental
Revolving Commitments and the related New Incremental Revolving Loans shall be
as set forth in this Agreement and as otherwise determined by Borrower,
Administrative Agent and Lenders under such Tranche of New Incremental
Revolving Commitments and set forth in the related Incremental Joinder
Agreement (which, for the avoidance of doubt, may provide for the re-allocation
from Pre-Increase Revolving Lenders to Post-Increase Revolving Lenders of
participations in Letters of Credit and

 

17

 

Swingline Loans on a ratable basis and for the re-allocation to
Post-Increase Revolving Lenders of all Letters of Credit expiring on or after
the latest R/C Maturity Date then in effect, as contemplated by Section 2.12(d) hereof);
provided, however,
that the R/C Maturity Date applicable to such Tranche of New Incremental
Revolving Commitments shall not be earlier than the latest R/C Maturity Date
then in effect and (B) the terms and provisions of Incremental Existing
Tranche Revolving Commitments and the related Revolving Loans shall be
identical to the relevant existing Tranche of Revolving Commitments and any
provisions applicable to Revolving Loans of such Tranche made hereunder; provided, further, that
upfront fees may be paid to Lenders providing Incremental Existing Tranche
Revolving Commitments;”

 

(gg)                          Section 2.12(c)(ii) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(ii)                            [Reserved];”

 

(hh)                          Section 2.12(d) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(d)                           Adjustment
of Revolving Loans.  To the
extent the Revolving Commitments are being increased on the relevant
Incremental Effective Date, then (i) in the case of New Incremental
Revolving Commitments, each of the Revolving Lenders having a Revolving Commitment
prior to such Incremental Effective Date or (ii) in the case of
Incremental Existing Tranche Revolving Commitments, each of the Revolving
Lenders having a Revolving Commitment under the relevant Tranche prior to such
Incremental Effective Date (such Revolving Lenders referred to in clause (i) or
(ii) the “Pre-Increase Revolving Lenders”),
in each case, shall assign or transfer to any Revolving Lender which is
acquiring a new or additional Revolving Commitment on the Incremental Effective
Date (the “Post-Increase Revolving Lenders”),
and such Post-Increase Revolving Lenders shall purchase from each such
Pre-Increase Revolving Lender, at the principal amount thereof, such interests
in the Revolving Loans and participation interests in L/C Liabilities and
Swingline Loans (but not, for the avoidance of doubt, the related Revolving Commitments)
outstanding on such Incremental Effective Date as shall be necessary in order
that, after giving effect to all such assignments or transfers and purchases,
such Revolving Loans and participation interests in L/C Liabilities and
Swingline Loans will be held by Pre-Increase Revolving Lenders and Post-Increase
Revolving Lenders ratably in accordance with their Revolving Commitments (in
respect of the relevant Tranche, in the case of Incremental Existing Tranche
Revolving Commitments) after giving effect to such Incremental Revolving
Commitments (and after giving effect to any Revolving Loans made on the
relevant Incremental Effective Date); provided, however, that, notwithstanding the foregoing, in the case of
New Incremental Revolving Commitments with a maturity date occurring after the
latest R/C Maturity Date then in effect, if so provided in the relevant
Incremental Joinder Agreement and with the consent of the L/C Lender,
participations in Letters of Credit expiring on or after such latest R/C
Maturity Date shall be re-allocated from Pre-Increase Revolving Lenders to
Post-Increase Revolving Lenders in accordance with the terms of such
Incremental Joinder Agreement.  Such
assignments or transfers and purchases shall be made pursuant to such
procedures as may be designated by the Administrative Agent and shall not be
required to be effectuated in accordance with Section 13.05.  For the avoidance of doubt, Revolving Loans
and participation interests in L/C Liabilities and Swingline Loans assigned or
transferred and purchased (or re-allocated) pursuant to this Section 2.12(d) shall,
upon receipt thereof by the relevant Post-Increase Revolving Lenders, be deemed
to be Revolving Loans and participation interests in L/C Liabilities and
Swingline Loans in respect of the relevant new or additional Revolving Commitments
acquired by such Post-Increase Revolving Lenders on the relevant Incremental
Effective Date and the terms of such Revolving Loans and participation
interests (including, without limitation, the interest rate and maturity applicable
thereto) shall be adjusted accordingly.”

 

18

 

(ii)                                  Section 2.12
of the Credit Agreement is hereby amended by adding new clauses (g) and (h) to
the end of such section as follows:

 

“(g)                           Incremental
Tranche B Revolving Lenders.  Notwithstanding the foregoing, the extension
of Incremental Tranche B Revolving Commitments by the Incremental Tranche B
Revolving Lenders on the Second Amendment Effective Date shall be effective as
of the Second Amendment Effective Date without the requirement to comply with
the procedures set forth above in this Section 2.12 (and shall not, for
the avoidance of doubt, reduce the Incremental Commitment Amount); provided, however, that,
after giving effect to any borrowings of Revolving Loans made on the Second
Amendment Effective Date, any adjustment of Revolving Loans and participation
interests in L/C Liabilities and Swingline Loans necessary to comply with, and
contemplated by, Section 2.12(d) shall occur and Borrower shall make
any payments required pursuant to Section 5.05 in connection with such
adjustment.  Effective as of the Second
Amendment Effective Date, (i) the Incremental Tranche B Revolving Lenders
shall be deemed to be Tranche B Revolving Lenders, (ii) the Incremental
Tranche B Revolving Commitments (in the amounts accepted by the Administrative
Agent and the Borrower) shall be deemed to be Tranche B Revolving Commitments
and (iii) loans made pursuant to the Incremental Tranche B Revolving
Commitments shall be deemed to be Tranche B Revolving Loans, in each case,
under, and shall be entitled to all the benefits afforded by, this Agreement
and the other Credit Documents, and shall, without limiting the foregoing,
benefit equally and ratably from the Guarantees and security interests created by
the Security Documents.

 

(h)                                 Incremental
Joinder Agreements. An Incremental Joinder Agreement may, subject to Section 2.12(c),
without the consent of any other Lenders, effect such amendments to this
Agreement and the other Credit Documents as may be necessary or advisable, in
the reasonable opinion of the Administrative Agent and the Borrower, to effect
the provisions of this Section 2.12 (including, without limitation, (A) amendments
to Section 2.04(b)(iii) and Section 2.09(b)(i) to permit
reductions of Tranches of Revolving Commitments (and prepayments of the related
Revolving Loans) with an R/C Maturity Date prior to the R/C Maturity Date applicable
to a Tranche of New Incremental Revolving Commitments without a concurrent reduction
of such Tranche of New Incremental Revolving Commitments and (B) such
other technical amendments as may be necessary or advisable, in the reasonable
opinion of the Administrative Agent and the Borrower, to give effect to the
terms and provisions of any Incremental Commitments (and any Loans made in
respect thereof)).  It is understood and
agreed that each Lender that has consented to the Second Amendment has
consented, and shall at the Second Amendment Effective Date be deemed to consent
to each amendment to this Agreement and the other Credit Documents authorized
by this Section 2.12 and the arrangements described above in connection
therewith (and, for the avoidance of doubt, no further consent from any Lender
shall be required in connection therewith, other than Lenders providing
Incremental Commitments under such Incremental Joinder Agreement).”

 

(jj)                                  Article II
of the Credit Agreement is hereby amended by adding a new Section 2.13 as
follows:

 

“SECTION 2.13.            Extensions of Loans and Commitments.

 

(a)                                  The Borrower
may, at any time and from time to time after the Second Amendment Effective
Date, request that all or a portion of the Term Loans of any Tranche (other
than Term A Facility Loans) (an “Existing Term Loan Tranche”)
be modified to constitute another Tranche of Term Loans in order to extend the
scheduled final maturity date thereof (any such Term Loans which have been so
modified, “Extended Term Loans”) and to
provide for other

 

19

 

terms consistent with this Section 2.13.  In order to establish any Extended Term
Loans, the Borrower shall provide a notice to the Administrative Agent (who
shall provide a copy of such notice to each of the Lenders of the applicable
Existing Term Loan Tranche) (a “Term Loan Extension
Request”) setting forth the proposed terms of the Extended Term
Loans to be established, which terms shall be identical to those applicable to
the Term Loans of the Existing Term Loan Tranche from which they are to be
modified except (i) the scheduled final maturity date shall be extended to
the date set forth in the applicable Extension Amendment, (ii)(A) the
Applicable Margins with respect to the Extended Term Loans may be higher or
lower than the Applicable Margins for the Term Loans of such Existing Term Loan
Tranche and/or (B) additional fees may be payable to the Lenders providing
such Extended Term Loans in addition to or in lieu of any increased Applicable
Margins contemplated by the preceding clause (A), in each case, to the extent
provided in the applicable Extension Amendment, (iii) the optional and
mandatory prepayment rights of the Extended Term Loans shall be subject to the
provisions set forth in Sections 2.09(b) and 2.10(b), (iv) the
amortization schedule set forth on Annex C-2 applicable to such Existing Term
Loan Tranche shall be adjusted to reflect the scheduled final maturity date of
the Extended Term Loans and the amortization schedule (including the principal
amounts payable pursuant thereto) in respect of such Extended Term Loans set
forth in the applicable Extension Amendment; provided,
however, that the Weighted Average Life
to Maturity of such Extended Term Loans shall be no shorter than the Weighted
Average Life to Maturity of the Term Loans of such Existing Term Loan Tranche
and (v) the covenants set forth in Section 10.08 may be modified in a
manner acceptable to the Borrower, the Administrative Agent and the Lenders
party to the applicable Extension Amendment, such modifications to become
effective only after the Final Maturity Date in effect immediately prior to
giving effect to such Extension Amendment (it being understood that each Lender
providing Extended Term Loans, by executing an Extension Amendment, agrees to
be bound by such provisions and waives any inconsistent provisions set forth in
Section 4.02(c)).  Each Lender
holding Extended Term Loans shall be entitled to all the benefits afforded by
this Agreement (including, without limitation, the provisions set forth in Section 2.09(b) and
2.10(b) applicable to Term Loans) and the other Credit Documents, and
shall, without limiting the foregoing, benefit equally and ratably from the
Guarantees and Security Interests created by the Security Documents.  No Lender shall have any obligation to agree
to have any of its Term Loans of any Existing Term Loan Tranche modified to
constitute Extended Term Loans pursuant to any Term Loan Extension
Request.  Any Extended Term Loans of any
Extension Series shall constitute a separate Tranche and Class of
Term Loans from the Existing Term Loan Tranche from which they were
modified.  There shall be no more than 3
Tranches, in the aggregate, of Term Loans outstanding at any time.

 

(b)                                 The Borrower
may, at any time and from time to time after the Second Amendment Effective
Date, request that all or a portion of the Revolving Commitments of any Tranche
(an “Existing Revolving Tranche” and any
related Revolving Loans thereunder, “Existing Revolving Loans”)
be modified to constitute another Tranche of Revolving Commitments in order to
extend the termination date thereof (any such Revolving Commitments which have
been so modified, “Extended Revolving
Commitments” and any related Revolving Loans, “Extended
Revolving Loans”) and to provide for other terms consistent with
this Section 2.13.  In order to
establish any Extended Revolving Commitments, the Borrower shall provide a
notice to the Administrative Agent (who shall provide a copy of such notice to
each of the Lenders of the applicable Existing Revolving Tranche) (a “Revolving Extension Request”) setting forth the proposed
terms of the Extended Revolving Commitments to be established, which terms
shall be identical to those applicable to the Revolving Commitments of the
Existing Revolving Tranche from which they are to be modified except (i) the
scheduled termination date of the Extended Revolving Commitments and the
related scheduled maturity date of the related Extended Revolving Loans shall
be extended to the date set forth in the applicable Extension Amendment, (ii) (A) the

 

20

 

Applicable Margins with
respect to the Extended Revolving Loans may be higher or lower than the
Applicable Margins for the Revolving Loans of such Existing Revolving Tranche
and/or (B) additional fees may be payable to the Lenders providing such
Extended Revolving Commitments in addition to or in lieu of any increased
Applicable Margins contemplated by the preceding clause (A), in each case, to
the extent provided in the applicable Extension Amendment, (iii) the
Applicable Fee Percentage with respect to the Extended Revolving Commitments
may be higher or lower than the Applicable Fee Percentage for the Revolving
Commitments of such Existing Revolving Tranche and (iv) the covenants set
forth in Section 10.08 may be modified in a manner acceptable to the Borrower,
the Administrative Agent and the Lenders party to the applicable Extension
Amendment, such modifications to become effective only after the Final Maturity
Date in effect immediately prior to giving effect to such Extension Amendment
(it being understood that each Lender providing Extended Revolving Commitments,
by executing an Extension Amendment, agrees to be bound by such provisions and
waives any inconsistent provisions set forth in Section 4.02(c)).  Each Lender holding Extended Revolving
Commitments shall be entitled to all the benefits afforded by this Agreement
(including, without limitation, the provisions set forth in Sections 2.09(b) and
2.10(b) applicable to existing Revolving Loans) and the other Credit Documents,
and shall, without limiting the foregoing, benefit equally and ratably from the
Guarantees and security interests created by the Security Documents.  No Lender shall have any obligation to agree
to have any of its Revolving Commitments of any Existing Revolving Tranche
modified to constitute Extended Revolving Commitments pursuant to any Revolving
Extension Request.  Any Extended
Revolving Commitments of any Extension Series shall constitute a separate
Tranche and Class of Revolving Commitments from the Existing Revolving
Tranche from which they were modified. 
There shall be no more than 4 Tranches, in the aggregate, of Revolving
Commitments outstanding at any time.  If,
on any Extension Date, any Revolving Loans of any Extending Lender are
outstanding under the applicable Existing Revolving Tranche, such Revolving
Loans (and any related participations) shall be deemed to be allocated as
Extended Revolving Loans (and related participations) and Existing Revolving
Loans (and related participations) in the same proportion as such Extending
Lender’s Extended Revolving Commitments bear to its remaining Revolving
Commitments of the Existing Revolving Tranche. 
In addition, if so provided in the relevant Extension Amendment and with
the consent of the L/C Lender, participations in Letters of Credit expiring on
or after the latest R/C Maturity Date then in effect shall be re-allocated from
Lenders of the Existing Revolving Tranche to Lenders holding Extending Revolving
Commitments in accordance with the terms of such Extension Amendment; provided, however, that
such participation interests shall, upon receipt thereof by the relevant
Lenders holding Extending Revolving Commitments, be deemed to be participation
interests in respect of such Extending Revolving Commitments and the terms of
such participation interests (including, without limitation, the commission
applicable thereto) shall be adjusted accordingly.

 

(c)                                  The Borrower
shall provide the applicable Extension Request at least five (5) Business
Days prior to the date on which Lenders under the Existing Tranche are
requested to respond.  Any Lender (an “Extending Lender”) wishing to have all or a portion of its
Term Loans or Revolving Commitments of the Existing Tranche subject to such
Extension Request modified to constitute Extended Loans/Commitments shall
notify the Administrative Agent (an “Extension Election”)
on or prior to the date specified in such Extension Request of the amount of
its Term Loans or Revolving Commitments of the Existing Tranche which it has
elected to modify to constitute Extended Loans/Commitments.  In the event that the aggregate amount of
Term Loans or Revolving Commitments of the Existing Tranche subject to
Extension Elections exceeds the amount of Extended Loans/Commitments requested
pursuant to the Extension Request, Term Loans or Revolving Commitments subject
to such Extension Elections shall be modified to constitute Extended
Loans/Commitments on a pro rata basis based on the amount of Term Loans or
Revolving Commitments included in such Extension Elections. The Borrower shall
have the

 

21

 

right to withdraw any
Extension Request upon written notice to the Administrative Agent in the event
that the aggregate amount of Term Loans or Revolving Commitments of the
Existing Tranche subject to such Extension Request is less than the amount of
Extended Loans/Commitments requested pursuant to such Election Request.

 

(d)                                 Extended
Loans/Commitments shall be established pursuant to an amendment (an “Extension Amendment”) to this Agreement (which shall be
substantially in the form of Exhibit R or Exhibit S to this
Agreement, as applicable).  Each
Extension Amendment shall be executed by the Borrower, the Administrative Agent
and the Extending Lenders (it being understood that such Extension Amendment
shall not require the consent of any Lender other than the Extending Lenders
with respect to the Extended Loans/Commitments established thereby).  An Extension Amendment may, subject to
Sections 2.13(a) and (b), without the consent of any other Lenders, effect
such amendments to this Agreement and the other Credit Documents as may be
necessary or advisable, in the reasonable opinion of the Administrative Agent
and the Borrower, to effect the provisions of this Section 2.13 (including,
without limitation, (A) amendments to Section 2.04(b)(iii) and Section 2.09(b)(i) to
permit reductions of Tranches of Revolving Commitments (and prepayments of the
related Revolving Loans) with an R/C Maturity Date prior to the R/C Maturity
Date applicable to a Tranche of Extended Revolving Commitments without a
concurrent reduction of such Tranche of Extended Revolving Commitments and (B) such
other technical amendments as may be necessary or advisable, in the reasonable
opinion of the Administrative Agent and the Borrower, to give effect to the
terms and provisions of any Extended Loans/Commitments).  It is understood and agreed that each Lender
that has consented to the Second Amendment has consented, and shall at the
Second Amendment Effective Date be deemed to consent to each amendment to this
Agreement and the other Credit Documents authorized by this Section 2.13
and the arrangements described above in connection therewith (and, for the
avoidance of doubt, no further consent from any Lender shall be required in
connection therewith, other than Lenders providing Extended Loans/Commitments
under such Extension Amendment).

 

(e)                                  In addition to
any conditions precedent set forth in any applicable Extension Amendment, no
Extension Amendment shall be effective unless, (i) no Default or Event of Default shall have occurred and
be continuing at the time of such extension or after giving effect thereto and (ii) (A) the
pro forma Consolidated Total Leverage
Ratio of Borrower would not exceed the maximum Consolidated Total Leverage
Ratio permitted by Section 10.08(a), (B) the pro forma
Consolidated Senior Secured Leverage Ratio of Borrower would not exceed the maximum
Consolidated Senior Secured Leverage Ratio permitted by Section 10.08(b) and
(C) the pro forma Fixed Charge Coverage
Ratio would not be less than the minimum Fixed Charge Coverage Ratio permitted
by Section 10.08(c), in each case, as of the most recent Test Date for
which financial statements are available pursuant to Section 9.04(a) or
9.04(b) and after giving effect to (x) such extension and (y) the
application of Section 10.08(e) to any transactions of the type
referenced therein (1) that have occurred after such Test Date, but on or
prior to the date of determination of such pro forma
Consolidated Total Leverage Ratio, Consolidated Senior Secured Leverage Ratio
and Fixed Charge Coverage Ratio pursuant to this paragraph (e) and (2) the
occurrence of which, and any resulting pro forma
adjustments to the amount of Consolidated Indebtedness, Consolidated EBITDA
and/or Consolidated Interest Expense to be applied pursuant to this sub-clause (y) in
calculating the pro forma Consolidated Total
Leverage Ratio, Consolidated Senior Secured Leverage Ratio and Fixed Charge
Coverage Ratio for the applicable pro forma Test
Period pursuant to this paragraph (e) have been publicly disclosed by the
Borrower prior to such date of determination.

 

22

 

(f)                                    Notwithstanding
the foregoing, the extension of the Revolving Commitments on the Second
Amendment Effective Date shall be effective as of the Second Amendment Effective
Date without the requirement to comply with the procedures set forth above in
this Section 2.13 and the Second Amendment shall be deemed to be an
Extension Amendment.  The modification
into Tranche B Revolving Commitments and Tranche B Revolving Loans shall be
evidenced by the applicable Extending Lender’s signature to the Second
Amendment and the indication on such signature page as to the amount of
Revolving Commitments extended. 
Effective as of the Second Amendment Effective Date, all Revolving
Commitments and Revolving Loans extended as of the Second Amendment Effective
Date shall be deemed to be Tranche B Revolving Commitments and Tranche B
Revolving Loans, respectively, and all Revolving Commitments and Revolving
Loans (excluding, for the avoidance of doubt, Incremental Tranche B Revolving
Commitments and Revolving Loans made pursuant thereto by the Incremental
Tranche B Revolving Lenders on the Second Amendment Effective Date) not so
extended shall be deemed to be Tranche A Revolving Commitments and Tranche A
Revolving Loans, respectively.”

 

(kk)                            Article II
of the Credit Agreement is hereby amended by adding a new Section 2.14 as
follows:

 

“SECTION 2.14.                                     Defaulting
Lender Provisions.

 

(a)                                  In addition to
the other conditions precedent herein set forth, if any Lender becomes, and
during the period it remains, a Defaulting Lender, the L/C Lender will not be required
to (but at its option may) issue any Letter of Credit or to amend any
outstanding Letter of Credit to increase the face amount thereof, alter the
drawing terms thereunder or extend the expiry date thereof, and the Swingline
Lender will not be required to (but at its option may) make any Swingline Loan,
unless (i) the Borrower provides Cash Collateral to the L/C Lender or the
Swingline Lender, as the case may be, in an amount equal to the aggregate
amount of the funding obligations (contingent or otherwise) of such Defaulting
Lender in respect thereof or (ii) the L/C Lender or the Swingline Lender,
as the case may be, is otherwise satisfied that any exposure that would result
therefrom is eliminated or fully covered by the Commitments of the
Non-Defaulting Lenders or by Cash Collateralization or a combination thereof
satisfactory to the L/C Lender or Swingline Lender.

 

(b)                                 If, following
the Second Amendment Effective Date, any Lender becomes, and during the period
it remains, a Defaulting Lender, if any Letter of Credit or Swingline Loan is
at the time outstanding, the L/C Lender and the Swingline Lender, as the case
may be, may, by notice to the Borrower and such Defaulting Lender through the
Administrative Agent, require the Borrower to Cash Collateralize, within 10
Business Days of such notice, the obligations of the Borrower to the L/C Lender
and the Swingline Lender in respect of such Letter of Credit or Swingline Loan
in an amount equal to the aggregate amount of the funding obligations (contingent
or otherwise) of such Defaulting Lender in respect thereof, unless the Borrower
has made other arrangements satisfactory to the Administrative Agent, and to
the L/C Lender and the Swingline Lender, as the case may be, in their
reasonable discretion to protect them against the risk of non-payment by such
Defaulting Lender.

 

(c)                                  If the
Borrower, the Administrative Agent, the L/C Lender and the Swingline Lender
agree in writing in their discretion that a Lender that is a Defaulting Lender
should no longer be deemed to be a Defaulting Lender, the Administrative Agent
will so notify the parties hereto, whereupon, as of the effective date
specified in such notice and subject to any conditions set forth therein, such
Lender will cease to be a Defaulting Lender and will be a Non-Defaulting Lender
and any Cash Collateral provided by the Borrower in respect of such Defaulting
Lender

 

23

 

shall be released to the Borrower; provided, however, that, except to the extent otherwise expressly
agreed by the affected parties, no change hereunder from Defaulting Lender to
Non-Defaulting Lender will constitute a waiver or release of any claim of any
party hereunder arising from such Lender having been a Defaulting Lender.”

 

(ll)                                  Section 3.01(a) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(a)                            Revolving
Credit Loans and Swingline Loans.  Borrower hereby promises to pay (i) to
Administrative Agent for the account of each Revolving Lender on each R/C
Maturity Date, the entire outstanding principal amount of such Revolving Lender’s
Revolving Loans made to Borrower pursuant to the Tranche of Revolving
Commitments that terminates on such R/C Maturity Date, and each such Revolving
Loan shall mature on such R/C Maturity Date and (ii) to the Swingline
Lender the then unpaid principal amount of each Swingline Loan on the earlier
of the latest R/C Maturity Date and the first date after such Swingline Loan is
made that is the 15th or last day of a calendar month and is at least two
Business Days after such Swingline Loan is made; provided,
however, that on each date that a
Revolving Borrowing is made, Borrower shall repay all Swingline Loans that were
outstanding on the date such Borrowing was requested.”

 

(mm)                      Section 3.01(c) of
the Credit Agreement is hereby amended by inserting the phrase “or in Section 2.13”
immediately after the phrase “or as provided in Section 2.12” in such
section.

 

(nn)                          Section 3.01(d) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(d)                           New
Incremental Term Loans; Extended Term Loans.  New Incremental Term Loans shall mature in
installments as specified in the related Incremental Joinder Agreement pursuant
to which such New Incremental Term Loans were made, subject, however, to Section 2.12(c).  Extended Term Loans shall mature in
installments as specified in the applicable Extension Amendment pursuant to
which such Extended Term Loans were established, subject, however, to Section 2.13(a).”

 

(oo)                          Section 3.02(a)(i) of
the Credit Agreement is hereby amended by adding the following after “Margin”
and before the “,” at the end of such clause:

 

“; provided, however,
that, for so long as multiple Tranches of Revolving Commitments are
outstanding, the interest rate on Swingline Loans shall be the weighted average
of the rates then applicable to ABR Loans that are Revolving Loans based on the
respective Revolving Commitments outstanding under each such Tranche”.

 

(pp)                          Section 3.02(b) of
the Credit Agreement is hereby amended by adding the following after “time” and
before the “.” at the end of the first sentence of Section 3.02(b):

 

“(determined based on a weighted average if multiple Tranches of
Revolving Commitments are then outstanding)”.

 

(qq)                          Section 3.02(c) of
the Credit Agreement is hereby amended by adding the following at the end of
such section:

 

“For the avoidance of doubt, unless otherwise payable on such date,
accrued interest on Revolving Loans modified to constitute Tranche B Revolving
Loans on the Second Amendment Effective Date shall be not be payable on such date
solely by reason of such modification.”

 

24

 

(rr)                                Section 3.02(d) of
the Credit Agreement is hereby restated in its entirety as follows:

 

“(d)                           If the weighted
average interest rate of any Incremental Term Loans (other than New Incremental
Term Loans that are used, concurrently with the extension of such New Incremental
Term Loans, to repay then-outstanding Term B Facility Loans and to pay fees and
expenses directly related to the extension of such New Incremental Term Loans)
(whether in the form of interest, fees, original issue discount or a
combination thereof but excluding arrangement, commitment or underwriting fees
(with upfront fees and original issue discount being equated to interest based
on the shorter of (x) the remaining life to maturity of such Incremental
Term Loans and (y) an assumed four-year average life (e.g.,
in the case of this clause (y), 200 basis points in upfront fees or original
issue discount equals 50 basis points of interest)) is higher by more than 50
basis points than the weighted average yield to maturity (including fees and
original issue discount but excluding arrangement or underwriting fees) payable
in respect of the Term B Facility Loans immediately prior to the incurrence of
any such Incremental Term Loans, then the Applicable Margins then applicable to
the Term B Facility shall be increased to the extent necessary to result in the
weighted average interest rate applicable to such Incremental Term Loans being
not more than 50 basis points higher than the weighted average interest rate
applicable to the Term B Facility.  In
addition, if pursuant to the terms of any Incremental Term Loans (other than
New Incremental Term Loans that are used, concurrently with the extension of such
New Incremental Term Loans, to repay then-outstanding Term B Facility Loans and
to pay fees and expenses directly related to the extension of such New
Incremental Term Loans), the Alternate Base Rate and/or LIBO Rate (or similar
rate) applicable to such Incremental Term Loans cannot fall below a specified
minimum rate, then the Alternate Base Rate and/or LIBO Rate, as the case may
be, applicable to the Term B Facility Loans shall also be subject to such
minimum rate.”

 

(ss)                            Section 5.06(a) of
the Credit Agreement is hereby amended by replacing the first through fifth
sentences thereof with the following:

 

“Except as provided in this Section 5.06(a), all payments made by
any Credit Party hereunder or under any Note or any Guarantee will be made
without setoff, counterclaim or other defense. 
Except as provided in this Section 5.06(a), all such payments will
be made free and clear of, and without deduction or withholding for, any
present or future Taxes now or hereafter imposed by any Governmental Authority
or taxing authority with respect to such payments (but excluding any Excluded
Tax) (all such Taxes (other than Excluded Taxes) being referred to collectively
as “Covered Taxes”).  If any Covered Taxes are so levied or imposed
(including through withholding by a Credit Party or an Agent), each Credit
Party agrees on a joint and several basis to pay the full amount of such
Covered Taxes, and such additional amounts as may be necessary so that every
payment of all amounts due under this Agreement, the Guarantees or any other
Credit Document, after withholding or deduction for or on account of any
Covered Taxes, will not be less than the amount provided for herein or in such
other Credit Document; provided, however,
that no such additional amount shall be required to be paid to any Lender under
this Section 5.06 to the extent such additional amount relates to a
portion of any sums paid or payable to such Lender under any Note or Guarantee
with respect to which such Lender does not act for its own account unless the
Beneficial Owner would otherwise be entitled to such additional amount.  The applicable withholding agent shall timely
pay the amount of any Covered Taxes to the relevant Governmental Authority in
accordance with applicable law.  If a
Credit Party is the applicable withholding agent, such relevant Credit Party
shall furnish to Administrative Agent within 45 days after the date the payment
of any Covered Taxes is due pursuant to applicable law documentation reasonably
satisfactory to such Lender evidencing such payment by such Credit Party.”

 

25

 

(tt)                                Section 7.02(i) of
the Credit Agreement is hereby amended by deleting “pro forma” in the phrase “after
giving pro forma effect thereto” in the first sentence of such section.

 

(uu)                          Section 8.11(a)(i) of
the Credit Agreement is hereby amended by inserting the phrase “made on the
Closing Date” immediately before the phrase “to finance the Transactions” in
such section.

 

(vv)                          Section 8.11(b) of
the Credit Agreement is hereby amended by replacing the phrase “or for any
purpose that entails a violation of, or this is inconsistent with,” with the
following:

 

“or for any other purpose, in each case, that entails a violation of,
or is inconsistent with,”.

 

(ww)                      Section 10.02(n) of
the Credit Agreement is hereby amended by adding the following after the term “Security
Documents” and before the “;”:

 

“or in respect of Cash Collateral (to the extent required by the
definition of “Cash Collateralize”) provided pursuant to Section 2.10 or
2.14 hereof”.

 

(xx)                              Section 10.04(c) of
the Credit Agreement is hereby amended by deleting the proviso in such section.

 

(yy)                          Section 10.04(m) of
the Credit Agreement is hereby amended by replacing each occurrence of the term
“Consolidated Senior Leverage Ratio” in such section with the term “Consolidated
Senior Secured Leverage Ratio.”

 

(zz)                              Section 10.04
of the Credit Agreement is hereby amended by inserting the phrase “clauses (f),
(h), (j), (l), (m) or (n) of” immediately before “this Section 10.04”
in the proviso to such section.

 

(aaa)                      Section 10.06(h) of
the Credit Agreement is hereby amended by inserting the phrase “from and after
the Second Amendment Effective Date” immediately before (i) the phrase “the
Borrower” and (ii) the phrase “under Section 10.10(m)”, in each case,
in such section.

 

(bbb)                   Section 10.07
is hereby amended by (A) replacing the “and” before clause (iv) of
such section with a “,” and (B) adding the following after such clause (iv) and
before the “.”:

 

“(v) may enter into transactions with Unaffiliated Joint Ventures
and Wholly-Owned Subsidiaries of Unaffiliated Joint Ventures, in each case,
relating to the provision of management services, overhead, sharing of customer
lists and customer loyalty programs”.

 

(ccc)                      Section 10.08(a) of
the Credit Agreement is hereby amended by replacing the last two rows in the
table set forth in such section with the following:

 

	
  September 30,
  2009

  	
   

  	
  5.50 to 1.00

  
	
  December 31,
  2009 and each fiscal quarter of Borrower thereafter

  	
   

  	
  5.25 to 1.00

  

 

(ddd)                   Section 10.08(b) of
the Credit Agreement is hereby amended by replacing each occurrence of the term
“Consolidated Senior Leverage Ratio” in such section (including in the title of
such section) with the term “Consolidated Senior Secured Leverage Ratio.”

 

26

 

(eee)                      Section 10.08(b) of
the Credit Agreement is hereby amended by replacing the last seven rows in the
table set forth in such section with the following:

 

	
  September 30,
  2009

  	
   

  	
  4.00 to 1.00

  
	
  December 31,
  2009

  	
   

  	
  4.00 to 1.00

  
	
  March 31,
  2010

  	
   

  	
  4.00 to 1.00

  
	
  June 30,
  2010

  	
   

  	
  4.00 to 1.00

  
	
  September 30,
  2010

  	
   

  	
  4.00 to 1.00

  
	
  December 31,
  2010

  	
   

  	
  4.00 to 1.00

  
	
  March 31,
  2011 and each fiscal quarter of Borrower thereafter

  	
   

  	
  3.75 to 1.00

  

 

(fff)                            Section 10.08(e) of
the Credit Agreement is hereby amended by replacing the term “Consolidated
Senior Leverage Ratio” in such section with the term “Consolidated Senior
Secured Leverage Ratio.”

 

(ggg)                   Section 10.10
of the Credit Agreement is hereby amended by inserting the phrase “of the
Borrower or any of its Restricted Subsidiaries” immediately after the first and
second occurrences (excluding in the title of such section) of the term “Indebtedness”
in such section.

 

(hhh)                   Section 10.10(e) of
the Credit Agreement is hereby amended by replacing the term “Consolidated
Senior Leverage Ratio” in such section with the term “Consolidated Senior
Secured Leverage Ratio.”

 

(iii)                               Section 10.10(m) of
the Credit Agreement is hereby amended by inserting the phrase “from and after
the Second Amendment Effective Date” immediately before (i) the phrase “the
purchase” and (ii) the phrase “under Section 10.06(h)”, in each case,
in such section.

 

(jjj)                               Section 10.10
of the Credit Agreement is hereby amended by deleting the “and” before clause (m) of
such section and adding the following after such clause (m) and before the
“.”:

 

“; and (n) payment, repurchase, redemption, retirement,
acquisition, defeasance or cancellation of Borrower’s and its Restricted
Subsidiaries’ Indebtedness; provided, however, that (i) the pro forma
Consolidated Total Leverage Ratio of Borrower would not exceed the maximum
Consolidated Total Leverage Ratio permitted by Section 10.08(a) and (ii) the
pro forma Consolidated Senior Secured
Leverage Ratio of Borrower would not exceed the maximum Consolidated Senior
Secured Leverage Ratio permitted by Section 10.08(b), in each case, as of
the most recent Test Date for which financial statements are available pursuant
to Section 9.04(a) or 9.04(b) and after giving effect to (x) such
payment, repurchase, redemption, retirement, acquisition, defeasance or
cancellation and (y) the application of Section 10.08(e) to any
transactions of the type referenced therein (1) that have occurred after
such Test Date, but on or prior to the date of determination of such pro forma Consolidated Total Leverage Ratio and Consolidated
Senior Secured Leverage Ratio pursuant to this paragraph (n) and (2) the
occurrence of which, and any resulting pro forma
adjustments to the amount of Consolidated Indebtedness, Consolidated EBITDA
and/or Consolidated Interests Expense to be applied pursuant to this sub-clause
(y) in calculating the pro forma
Consolidated Total Leverage Ratio and Consolidated Senior Secured Leverage
Ratio for the applicable pro forma Test
Period pursuant to this paragraph (n) have been publicly disclosed by the
Borrower prior to such date of determination.”

 

(kkk)                      Section 12.01
of the Credit Agreement is hereby amended by adding the following between the
first and second sentences of such section:

 

27

 

“DBSI is hereby appointed Auction Manager
hereunder, and each Lender hereby authorizes the Auction Manager to act as its
agent in accordance with the terms hereof and of the other Credit Documents; provided, that the Borrower shall have the right to select
and appoint a replacement Auction Manager from time to time by written notice
to the Administrative Agent and any such replacement shall also be so
authorized to act in such capacity.  The
Lenders agree that the Auction Manager shall have solely the obligations in its
capacity as Auction Manager as are specifically described in this Agreement and
shall be entitled to the benefits of Article XII, as applicable.”

 

(lll)                               Section 12.06
of the Credit Agreement is hereby amended by adding the following as a new
paragraph to the conclusion thereof:

 

“Each Lender acknowledges that in connection
with Borrower Loan Purchases, (i) Borrower may purchase or acquire Term
Loans (other than Term A Facility Loans) hereunder from Lenders from time to
time, subject to the restrictions set forth in the definition of Eligible Assignee,
(ii) Borrower currently may have, and later may come into possession of,
information regarding such Term Loans or the Credit Parties hereunder that is
not known to such Lender and that may be material to a decision by such Lender
to enter into an assignment of such Loans hereunder (“Excluded
Information”), (iii) such Lender has independently and without
reliance on any other party made such Lender’s own analysis and determined to
enter into an assignment of such Loans and to consummate the transactions
contemplated thereby notwithstanding such Lender’s lack of knowledge of the
Excluded Information and (iv) Borrower shall have no liability to such
Lender, and such Lender hereby waives and releases, to the extent permitted by
law, any claims such Lender may have against Borrower, under applicable laws or
otherwise, with respect to the nondisclosure of the Excluded Information; provided, however, that
the Excluded Information shall not and does not affect the truth or accuracy of
the representations or warranties of Borrower in the Standard Terms and
Conditions set forth in the applicable assignment agreement.  Each Lender further acknowledges that the
Excluded Information may not be available to the Administrative Agent, the
Auction Manager or the other Lenders hereunder.”

 

(mmm)             Article XII
of the Credit Agreement is hereby amended by adding a new Section 12.12 as
follows:

 

“SECTION 12.12.                              Withholding
Tax.  To the extent required by
any applicable Requirement of Law, an Agent may withhold from any payment to
any Lender, an amount equivalent to any applicable withholding tax.  Without limiting or expanding the provisions
of Section 5.06, each Lender shall, and does hereby, indemnify the
relevant Agent, and shall make payable in respect thereof within 30 calendar
days after demand therefor, against any and all Taxes and any and all related
losses, claims, liabilities and expenses (including fees, charges and disbursements
of any counsel for the Agent) incurred by or asserted against the Agent by the
Internal Revenue Service or any other Governmental Authority as a result of the
failure of the Agent to properly withhold tax from amounts paid to or for the
account of any Lender for any reason (including, without limitation, because
the appropriate form was not delivered or not property executed, or because
such Lender failed to notify the Administrative Agent of a change in circumstance
that rendered the exemption from, or reduction of withholding tax
ineffective).  A certificate as to the
amount of such payment or liability delivered to any Lender by the
Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative
Agent to set off and apply any and all amounts at any time owing to such Lender
under this Agreement or any other Loan Document against any amount due the
Administrative Agent under this Section 12.12.  The agreements in this Section 12.12
shall survive the resignation and/or replacement of the Administrative Agent,
any assignment of rights by, or the replacement of, a

 

28

 

Lender,
and the repayment, satisfaction or discharge of any Loans and all other amounts
payable hereunder.”

 

(nnn)                   Section 13.05
of the Credit Agreement is hereby amended by inserting the following after the
end of Section 13.05(c) as follows:

 

“(d)                           Notwithstanding
anything to the contrary contained in this Section 13.05 or any other
provision of this Agreement, so long as (x) no Default or Event of Default
has occurred and is continuing or would result therefrom and (y) at the
time of and after giving effect to such purchase and cancellation (as described
below), the sum of (1) the aggregate cash and Cash Equivalents of the
Borrower and its Restricted Subsidiaries (excluding any cash and Cash
Equivalents held to satisfy minimum cash-on-hand requirements under Gaming Laws
and “cage cash”), plus (2) the aggregate
Unutilized R/C Commitments would not be less than $300.0 million, Borrower may
purchase outstanding Term Loans (other than Term A Facility Loans) on the following
basis:

 

(i)                                     At any time,
and from time to time following the Second Amendment Effective Date, Borrower shall
have the right to purchase, for cash, Term Loans (other than Term A Facility
Loans) up to an amount to be specified by Borrower at a purchase price to be
determined, in each case in accordance with the Auction Procedures established
for each such purchase; provided, however, that (x) Borrower shall be entitled to
purchase Term Loans pursuant to this Section 13.05(d) solely pursuant
to an auction managed by the Auction Manager and shall not be permitted to
purchase Term Loans in any other manner (including pursuant to secondary market
purchases) and (y) Borrower shall not purchase in excess of a total of
$400.0 million aggregate principal amount of Term Loans pursuant to this Section 13.05(d).

 

(ii)                                  With respect to
all purchases and cancellation by Borrower of the Term Loans pursuant to this Section 13.05(d),
such purchases and cancellation shall not, for the avoidance of doubt,
constitute prepayments or repayments of the Loans (including, without
limitation, pursuant to Section 2.09, Section 2.10 or Article IV)
for any purpose hereunder.

 

(iii)                               Immediately
upon any Borrower Loan Purchase, the Term Loans purchased pursuant thereto
shall be cancelled for all purposes and no longer outstanding (and may not be
resold, assigned or participated out by Borrower) for all purposes of this
Agreement and all other Credit Documents, including, but not limited to (A) the
making of, or the application of, any payments to the Lenders under this
Agreement or any other Credit Document, (B) the making of any request,
demand, authorization, direction, notice, consent or waiver under this
Agreement or any other Credit Document, (C) the providing of any rights to
Borrower as a Lender under this Agreement or any other Credit Document, and (D) the
determination of Required Lenders, or for any similar or related purpose, under
this Agreement or any other Credit Document.

 

(iv)                              Any Borrower
Loan Purchase shall be effective upon recordation in the Register (in the
manner set forth below) by the Administrative Agent (it being understood that
such recordation by the Administrative Agent shall only occur following receipt
by the Administrative Agent of (x) a fully executed and completed Borrower
Letter, (y) a fully executed and completed Borrower Assignment Agreement
effecting the assignment thereof and (z) a written representation from the
Borrower that the funds required to be paid with respect to such Borrower Loan
Purchase have been transmitted to the assigning Lender).  The Administrative Agent shall deliver to the
Lenders upon receipt thereof, the

 

29

 

Borrower Letter as described in clause (x) above.  Each assignment shall be recorded in the
Register following the completion of the relevant auction conducted pursuant to
the relevant Auction Procedures on the Business Day that the Administrative
Agent has received the items noted in clauses (x), (y) and (z) above,
if received by 1:00 p.m. New York time, and on the following Business Day
if received after such time.  Prompt
notice of such recordation shall be provided to Borrower and a copy of such
Borrower Assignment Agreement shall be maintained by the Administrative
Agent.  The date of such recordation of a
transfer shall be referred to herein as the “Borrower
Assignment Effective Date.” 
After such assignment has been recorded in the Register, the Borrower
and such Term Loans shall each be removed by the Administrative Agent from the
Register in their entirety.  The
assignment fee as set forth in Section 13.05(b) shall not be
applicable to any Borrower Loan Purchase consummated pursuant to this Section 13.05(d).

 

(v)                                 Borrower shall
make payment of the purchase price for Term Loans accepted for purchase
pursuant to the Auction Procedures by transmitting funds directly to the
assigning Lender.

 

(vi)                              The provisions
of this Section 13.05(d) shall not require Borrower to offer to
purchase any Term Loans.

 

(vii)                           If either
S&P or Moody’s ever downgrades the Borrower’s corporate rating or corporate
family rating, as applicable (in each case to levels less than those in existence
on the Second Amendment Effective Date), for any reason (including as a result
of any Borrower Loan Purchase being deemed to be a “distressed exchange”),
then, with respect to each Borrower Loan Purchase to be consummated thereafter
(even if such downgrade is subsequently “cured”), each of S&P and Moody’s
shall have confirmed in writing to the Borrower that such Borrower Loan
Purchase shall not be deemed to be a “distressed exchange”.

 

(viii)                        At the time of
each Borrower Loan Purchase to be consummated at a time when preceding
paragraph (vii) is applicable, the Borrower shall have delivered to the
Administrative Agent and the Auction Manager an Officer’s Certificate of a
Responsible Officer of the Borrower certifying as to compliance with preceding
paragraph (vii).”

 

(ooo)                   Article XIII
of the Credit Agreement is hereby amended by adding a new Section 13.16 as
follows:

 

“SECTION 13.16.                              Waiver
of Claims. 
Notwithstanding anything in this Agreement or the other Credit Documents
to the contrary, the Credit Parties hereby agree that Borrower shall not
acquire any rights as a Lender under this Agreement as a result of any Borrower
Loan Purchase and may not make any claim as a Lender against any Agent or any
Lender with respect to the duties and obligations of such Agent or Lender
pursuant to this Agreement and the other Credit Documents; provided,
however, that, for the avoidance of
doubt, the foregoing shall not impair Borrower’s ability to make a claim in
respect of a breach of the representations or warranties or obligations of the
relevant Assignor in a Borrower Loan Purchase, including in the Standard Terms
and Conditions set forth in the assignment agreement applicable to a Borrower
Loan Purchase.”

 

SECTION 3.                                Amendments to
Annexes and Exhibits.  The Credit
Agreement is hereby amended by amending or adding the Annexes and Exhibits
thereto as follows:

 

30

 

(a)                                  Annex B-1 to
the Credit Agreement is hereby replaced in its entirety by Annex B-1 attached
hereto.

 

(b)                                 Exhibit A-1
(Form of Revolving Note) is hereby replaced in its entirety by Exhibit A-1
attached hereto.

 

(c)                                  Exhibit B
(Form of Notice of Borrowing) to the Credit Agreement is hereby replaced
in its entirety by Exhibit B attached hereto.

 

(d)                                 Exhibit L
(Form of Letter of Credit Request) to the Credit Agreement is hereby
amended by deleting the parenthetical “(date must not be beyond the five
Business Days prior to the R/C Maturity Date)” in footnote 4 to such Exhibit.

 

(e)                                  Exhibit P
(Form of Auction Procedures) attached hereto is hereby added to the Credit
Agreement.

 

(f)                                    Exhibit Q
(Form of Borrower Letter) attached hereto is hereby added to the Credit
Agreement.

 

(g)                                 Exhibit R
(Form of Term Loan Extension Amendment) attached hereto is hereby added to
the Credit Agreement.

 

(h)                                 Exhibit S
(Form of Revolving Extension Amendment) attached hereto is hereby added to
the Credit Agreement.

 

SECTION 4.                                Extensions.  As of the Second Amendment Effective Date,
each Lender that has executed and delivered to the Administrative Agent a
counterpart of this Amendment indicating that all or a portion of its Revolving
Commitments (and related Revolving Loans) shall be extended shall be deemed to
hold Tranche B Revolving Commitments (and related Tranche B Revolving Loans)
(and its participations in Letters of Credit and Swingline Loans in respect of
such Revolving Commitments so extended shall be deemed to be participations in
respect of such Tranche B Revolving Commitments) in such indicated
amounts.  Each such Lender agrees that
such Tranche B Revolving Commitments (and related Tranche B Revolving Loans)
are subject to the terms of the Credit Agreement as amended by this Amendment.

 

SECTION 5.                                Incremental
Tranche B Revolving Commitments.  As of the Second Amendment Effective Date,
each Person that has executed and delivered to the Administrative Agent a
Tranche B Revolving Lender Addendum agrees to hold an Incremental Tranche B
Revolving Commitment up to the amount indicated in such Tranche B Revolving
Lender Addendum; provided, however,
that the Administrative Agent and the Borrower shall determine the final
allocation of Incremental Tranche B Revolving Commitments in their sole
discretion and may accept or reject any Incremental Tranche B Revolving
Commitment in whole or in part; provided, further, that the aggregate amount of Incremental Tranche B
Revolving Commitments that shall be accepted by the Administrative Agent and
the Borrower and become effective on the Second Amendment Effective Date shall
not exceed $250.0 million (i) minus the
amount by which the aggregate principal amount of Revolving Commitments (and
related Revolving Loans) extended on the Second Amendment Effective Date
exceeds $500.0 million and (ii) plus the amount
by which the aggregate principal amount of Revolving Commitments (and related
Revolving Loans) extended on the Second Amendment Effective Date is less than
$500.0 million (provided that (A) the amount
referred to in this clause (ii) shall not exceed $25.0 million and (B) on
the Second Amendment Effective Date, the aggregate amount of Tranche A
Revolving Commitments shall be permanently reduced by an amount equal to the
amount referred to in this clause (ii) (which shall

 

31

 

be pro rata
among Tranche A Revolving Lenders)). 
Each Incremental Tranche B Revolving Lender holding an Incremental
Tranche B Revolving Commitment that is accepted by the Administrative Agent and
the Borrower agrees that such Incremental Tranche B Revolving Commitment is
subject to the terms of the Credit Agreement as amended by this Amendment.

 

SECTION 6.                                Consent and
Waiver.  Pursuant to Section 13.04
of the Credit Agreement, the Lenders party hereto hereby consent to the
transactions described in this Amendment and waive the requirements of any
provision of the Credit Agreement or any other Credit Document that might
otherwise result in a breach of the Credit Agreement or such other Credit
Documents or a Default or Event of Default as a result of or in connection with
the consummation of such transactions.

 

SECTION 7.                                Conditions to
Effectiveness.  This
Amendment shall become effective on the date (the “Second
Amendment Effective Date”) on which each of the following conditions
is satisfied:

 

(a)                                  the
Administrative Agent (or its counsel) shall have received from the Required
Lenders, the L/C Lender, the Swingline Lender, the Borrower, the Guarantors and
each of the other parties hereto, a counterpart of this Amendment signed on
behalf of such party;

 

(b)                                 a minimum
aggregate principal amount to be agreed by the Borrower and the Co-Lead
Arrangers of Revolving Commitments (and related Revolving Loans) shall have
been agreed to be extended by Extending Revolving Lenders;

 

(c)                                  the
Administrative Agent shall have received payment of (i) a consent fee on
behalf of each Lender consenting to this Amendment in an amount equal to 0.20%
of the aggregate amount of Term Loans and/or Revolving Commitments held by such
Lender, (ii) an additional extension fee on behalf of each Revolving
Lender also agreeing to become an Extending Revolving Lender in an amount equal
to 0.90% of the aggregate amount of the Revolving Commitments (and related
Revolving Loans) of such Lender being extended and (iii) an upfront fee in
an amount to be agreed by the Borrower and the Administrative Agent on behalf
of each Person agreeing to hold an Incremental Tranche B Revolving Commitment
that is accepted by the Administrative Agent and the Borrower, in each case, to
the extent that such Lender or other Person has executed and delivered to the
Administrative Agent (or its designee) a counterpart hereof (and/or, in the
case of clause (iii), an Incremental Tranche B Revolving Lender Addendum) by
5:00 p.m. (New York time) on August 25, 2009 (it being understood
that the Borrower in its sole discretion may, but shall be under no obligation
to, agree with the Administrative Agent (A) to pay the fees referred to in
clauses (i) and (ii) to the Administrative Agent on behalf of Revolving
Lenders that consent to this Amendment and agree to become Extending Revolving
Lenders after such time and date, (B) to pay the fee referred to in clause
(ii) to the Administrative Agent on behalf of Revolving Lenders that have
consented to this Amendment before such time and date and agree to become
Extending Revolving Lenders after such time and date and/or (C) to pay the
fee referred to in clause (iii) to the Administrative Agent on behalf of
Persons that agree after such time and date to hold an Incremental Tranche B
Revolving Commitment that is accepted by the Administrative Agent and the
Borrower);

 

(d)                                 the Co-Lead
Arrangers shall have received all respective fees and expenses due to them pursuant
to those certain engagement letters by and between certain of the Co-Lead
Arrangers and the Borrower relating to this Amendment;

 

32

 

(e)                                  the
Administrative Agent shall have received reimbursement or payment of all fees
and expenses (including the reasonable fees, charges and disbursements of
Cahill Gordon & Reindel LLP) incurred in connection with this
Amendment to the extent invoiced;

 

(f)                                    all corporate
and other proceedings taken or to be taken in connection with this Amendment
and all documents incidental thereto, whether or not referred to herein, shall
be reasonably satisfactory in form and substance to the Administrative Agent
and the Administrative Agent shall have received certified true and complete
copies of the charter and by-laws and all amendments thereto (or equivalent
documents) of each Credit Party and of all corporate or other authority for
each Credit Party (including board of directors (or the functional equivalent
thereof) resolutions) with respect to the execution, delivery and performance
of this Amendment and each other document to be delivered by each such Credit
Party from time to time in connection herewith and the extensions of credit
hereunder, certified as of the Second Amendment Effective Date as complete and
correct copies thereof by the Secretary or an Assistant Secretary of each such
Credit Party;

 

(g)                                 the
representations and warranties in Section 8 of this Amendment shall be
true and correct (or, in the case of the representations and warranties in Section 8(c) and
8(f), true and correct in all material respects) and the Administrative Agent
shall have received an Officer’s Certificate of Borrower, dated the Second
Amendment Effective Date, certifying to the effect set forth in Sections 8(d) and
8(e) of this Amendment;

 

(h)                                 the Borrower
shall have received receipt of approvals required for this Amendment from any
applicable Gaming Authority;

 

(i)                                     the Borrower
shall have provided to the Administrative Agent a Notice of Borrowing within
the relevant time period specified in Section 4.05 of the Credit Agreement
in respect of any borrowing of Revolving Loans to be made on the Second
Amendment Effective Date;

 

(j)                                     the conditions
precedent set forth in Section 7.02 of the Credit Agreement shall be
satisfied in respect of any borrowing of Revolving Loans to be made on the
Second Amendment Effective Date and the Administrative Agent shall have
received an Officer’s Certificate of Borrower, dated the Second Amendment
Effective Date, certifying to such effect;

 

(k)                                  all Term A
Facility Loans outstanding under the Credit Agreement shall have been repaid
prior to, or shall be repaid concurrently with, the effectiveness of this
Amendment on the Second Amendment Effective Date in accordance with the terms
of the Credit Agreement;

 

(l)                                     not less than
$70.0 million aggregate principal amount of Term B Facility Loans shall have
been repaid prior to, or shall be repaid concurrently with, the effectiveness
of this Amendment on the Second Amendment Effective Date in accordance with the
terms of the Credit Agreement;

 

(m)                               the
Administrative Agent and the Collateral Agent shall have received the results
of lien searches conducted against Borrower and its Restricted Subsidiaries;

 

(n)                                 the
Administrative Agent shall have received a completed “Life-of-Loan” Federal
Emergency Management Agency Standard Flood Hazard Determination with respect to
each Mortgaged Real Property (together with (y) a notice about special
flood hazard area status and flood disaster assistance duly executed by the
Borrower and each applicable Guarantor relating

 

33

 

thereto and (z) evidence of insurance with
respect to the Mortgaged Real Properties in form and substance reasonably
satisfactory to the Collateral Agent); and

 

(o)                                 the
Administrative Agent shall have received legal opinions in form and substance
satisfactory to the Administrative Agent, dated the Second Amendment Effective
Date, of (i) Skadden, Arps, Slate, Meagher & Flom LLP, counsel to
the Borrower and certain of the Guarantors, (ii) Ballard Spahr LLP,
Pennsylvania counsel to the Borrower, and (iii) local counsel to certain
of the Credit Parties in Delaware, Illinois, Indiana, Louisiana, Maine,
Mississippi, Missouri and West Virginia, in each case addressed to the
Administrative Agent and each Lender and with respect to such matters as the
Administrative Agent shall reasonably request.

 

Upon satisfaction of the conditions precedent set
forth above, the Administrative Agent shall promptly notify the Borrower and
the Lenders of its determination that this Amendment has become effective,
which determination shall, absent manifest error, be conclusive and binding on
the Borrower and the Lenders for all purposes.

 

Concurrently with the effectiveness of this
Amendment on the Second Amendment Effective Date, the aggregate amount of
Tranche A Revolving Commitments shall be permanently reduced by the amount, if
any, required by Section 5 of this Amendment (which shall be pro rata among Tranche A Revolving Lenders) and the Borrower
shall repay such amount of Tranche A Revolving Loans as is necessary to cause
the remaining Tranche A Revolving Commitments to equal or exceed the
outstanding Tranche A Revolving Loans, Swingline Exposure and L/C Liabilities
of Tranche A Revolving Lenders, in each case, in accordance with the Credit
Agreement.

 

SECTION 8.                                Representations
and Warranties.  Each Credit
Party represents and warrants to the Administrative Agent and to each of the
Lenders that:

 

(a)                                  This Amendment
has been duly executed and delivered by such Credit Party and constitutes its
legal, valid and binding obligation, enforceable against such Credit Party in
accordance with its terms, except to the extent that the enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws generally affecting creditors’ rights and by equitable
principles (regardless of whether enforcement is sought in equity or at law).

 

(b)                                 The execution,
delivery and performance by such Credit Party of this Amendment are within such
Credit Party’s corporate or other organizational powers, have been duly
authorized by all necessary corporate or other organizational action, and do
not (i) contravene the constitutional or organizational documents of such
Credit Party; (ii) contravene any material law, statute, rule or
regulation binding on or affecting such Credit Party, except as would not
result in a Material Adverse Effect; (iii) violate or result in a default
or event of default or an acceleration of any rights or benefits (A) under
the Credit Agreement or any other Credit Document or (B) except as would
not result in a Material Adverse Effect, any material indenture, agreement or
other instrument binding upon such Credit Party; or (iv) result in, or
require the creation or imposition of, any Lien on any assets of such Credit
Party that would have or could reasonably be expected to have a Material
Adverse Effect, except Liens created under the Credit Documents.

 

(c)                                  After giving
effect to this Amendment, neither the modification of the Credit Agreement
effected pursuant to this Amendment nor the execution, delivery, performance or
effectiveness of this Amendment:

 

34

 

(i)                                     impairs the
validity, effectiveness or priority of the Liens granted pursuant to any Credit
Document, and such Liens continue unimpaired with the same priority to secure
repayment of all Obligations, whether heretofore or hereafter incurred; or

 

(ii)                                  requires that
any new filings be made or other action taken to perfect or to maintain the
perfection of such Liens other than the actions required by Section 7 of
this Amendment.

 

(d)                                 Both before and
after giving effect to this Amendment, the representations and warranties of
each Credit Party set forth in the Credit Documents (including, without
limitation, the representations and warranties set forth in Article VIII
of the Credit Agreement) are true and correct in all material respects on and
as of the Second Amendment Effective Date, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case such representations and warranties were true and correct in all material
respects as of such earlier date).

 

(e)                                  Both before and
after giving effect to this Amendment, no Default or Event of Default shall
have occurred and be continuing.

 

(f)                                    There has been
no change in the information required pursuant to the Perfection Certificate
dated April 6, 2009, except as set forth in an updated Perfection
Certificate executed and delivered by the Borrower to the Administrative Agent
and the Collateral Agent on or prior to the Second Amendment Effective Date.

 

SECTION 9.                                Real Estate
Matters.  The Borrower covenants that it
shall deliver to the Administrative Agent or Collateral Agent, as applicable:

 

(a)                                  with respect to
(1) each Mortgage encumbering Mortgaged Real Property, an amendment
thereof (each a “Mortgaged Real Property Amendment”)
duly executed and acknowledged by the applicable Credit Party, and (2) each
Ship Mortgage encumbering Mortgaged Vessels, an amendment thereof (each a “Ship Mortgage Amendment”, and together with the Mortgaged
Real Property Amendments, the “Mortgage Amendment(s)”),
in each case, in form for recording or filing in the recording office or filing
office where each such Mortgage or Ship Mortgage was recorded or filed,
together with such documentation, including without limitation, certificates,
affidavits, questionnaires or returns as shall be required in connection with
the recording or filing thereof under applicable law or which shall be required
to confirm the current ownership of or title to all Mortgaged Real Property and
Mortgaged Vessels and in form and substance reasonably satisfactory to the
Collateral Agent;

 

(b)                                 with respect to
each Mortgaged Real Property, the results of Lien (including tax) searches
conducted by a title insurance company, and in form and substance, reasonably
satisfactory to the Administrative Agent;

 

(c)                                  with respect to
each Mortgage Amendment, opinions of local counsel and admiralty counsel to the
Credit Parties, which opinions (1) shall be addressed to each Agent and
each of the Lenders, (2) shall cover the due authorization, execution,
delivery and enforceability of the respective Mortgage or Ship Mortgage as
amended by the respective Mortgage Amendment, as applicable, and such other
matters incident to the transactions contemplated herein as the Agents may
reasonably request and (3) shall be in form and substance reasonably
satisfactory to the Agents; and

 

35

 

(d)                                 evidence
acceptable to the Collateral Agent of payment by the appropriate Credit Party
of all applicable search and examination charges and related charges, mortgage
recording taxes, fees, charges, costs and expenses required for the recording
and filing of the Mortgage Amendments referred to in this Section 9.

 

The Borrower shall deliver or cause to be
delivered each of the documents and instruments required pursuant to this Section 9
within thirty (30) days after the Second Amendment Effective Date, unless extended
by the Administrative Agent in its sole discretion.

 

SECTION 10.                          Other Matters.  The Credit Parties acknowledge and agree that
the Credit Agreement (as modified hereby) and each other Credit Document, and
all Obligations and Liens thereunder, are valid and enforceable against the
Credit Parties in every respect and all of the terms and conditions thereof are
legally binding upon the Credit Parties, in each case all without offset,
counterclaims or defenses of any kind, and they are hereby reaffirmed and
ratified.

 

By executing and delivering a counterpart
hereof, each Credit Party hereby agrees that all Obligations of the Credit
Parties shall be fully guaranteed pursuant to the Guarantees. Each of the
Credit Parties acknowledges and agrees that all of its assets pledged,
assigned, conveyed, mortgaged, hypothecated or transferred to the Collateral
Agent pursuant to the Security Documents are (and shall continue to be) subject
to the fully perfected liens and security interests of the Collateral Agent for
the benefit of the Secured Parties (subject to any applicable provisions set
forth in the Credit Documents with respect to limitations as to Liens on the
Collateral), as collateral security for all of the Obligations. In connection
with the foregoing, each Credit Party hereby respectively reaffirms and
ratifies (a) any Guarantee given by it and (b) its prior conveyances
to the Collateral Agent for the benefit of the Lenders of a continuing security
interest in and Lien on the Collateral described in the instrument conveying
such security interest.

 

SECTION 11.                          Reference to
and Effect on the Agreement.  On and after giving effect to this Amendment,
each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof”
or words of like import referring to the Credit Agreement, and each reference
in each of the Credit Documents to “the Credit Agreement,” “thereunder,” “thereof”
or words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement as amended by this Amendment.  The Credit Agreement and each of the other
Credit Documents, as specifically amended by this Amendment, are and shall
continue to be in full force and effect and are hereby in all respects ratified
and confirmed.  The execution, delivery
and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of any Lender or any
Agent under any of the Credit Documents, nor constitute a waiver of any
provision of any of the Credit Documents.

 

SECTION 12.                          Counterparts.   This Amendment may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute but one and the same
agreement.  Delivery of an executed
counterpart of a signature page to this Amendment by telecopier or
electronic mail shall be effective as delivery of a manually executed
counterpart of this Amendment.

 

SECTION 13.                          Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK. 
ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AMENDMENT MAY BE
BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE

 

36

 

COUNTY OF NEW YORK, AND, BY
EXECUTION AND DELIVERY OF THIS AMENDMENT, THE BORROWER HEREBY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
JURISDICTION OF THE AFORESAID COURTS.

 

SECTION 14.                          Certain Notices.  Notwithstanding anything to the contrary
contained in Sections 2 through 11 of this Amendment or Section 4.05 of
the Credit Agreement, (i) the Notice of Borrowing referred to in Section 7(i) of
this Amendment, (ii) the notice of prepayment in respect of the repayment
of Term A Facility Loans referred to in Section 7(k) of this
Amendment and (iii) the notice of reduction in respect of the permanent
reduction of Tranche A Revolving Commitments (and any required repayment of Tranche
A Revolving Loans), if any, required by Section 5 of this Amendment, in
each case, delivered by the Borrower to the Administrative Agent may be
conditioned on the satisfaction of the conditions in Section 7 of this
Amendment.

 

[Signature Pages Follow]

 

37

 

IN WITNESS WHEREOF, the parties, intending to be
bound hereby, have caused this Amendment to be executed on their behalf by
their duly authorized officers on the date first above written.

 

	
   

  	
  PENN
  NATIONAL GAMING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BSL,
  INC.

  
	
   

  	
  BTN,
  INC.

  
	
   

  	
  CHC
  CASINOS CORP.

  
	
   

  	
  CRC
  HOLDINGS, INC.

  
	
   

  	
  HOLLYWOOD
  CASINO CORPORATION

  
	
   

  	
  HWCC-TUNICA,
  INC.

  
	
   

  	
  LOUISIANA
  CASINO CRUISES, INC.

  
	
   

  	
  MOUNTAINVIEW THOROUGHBRED RACING

  
	
   

  	
   

  	
  ASSOCIATION

  
	
   

  	
  PENN
  BULLPEN, INC.

  
	
   

  	
  PENN
  BULLWHACKERS, INC.

  
	
   

  	
  PENN
  NATIONAL HOLDING COMPANY

  
	
   

  	
  PENNSYLVANIA
  NATIONAL TURF CLUB, INC.

  
	
   

  	
  ARGOSY
  GAMING COMPANY

  
	
   

  	
  THE
  INDIANA GAMING COMPANY

  
	
   

  	
  INDIANA
  GAMING HOLDING COMPANY

  
	
   

  	
  THE
  MISSOURI GAMING COMPANY

  
	
   

  	
  OHIO
  RACING COMPANY

  
	
   

  	
  RACEWAY
  PARK, INC.

  
	
   

  	
  CRAZY
  HORSES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PNGI CHARLES TOWN GAMING
  LIMITED

  
	
   

  	
   

  	
  LIABILITY
  COMPANY

  
	
   

  	
  By:

  	
  Penn
  National Holding Company,

  
	
   

  	
   

  	
  Its
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  INDIANA
  GAMING II, L.P.

  
	
   

  	
  By:

  	
  Indiana
  Gaming Holding Company,

  
	
   

  	
   

  	
  Its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INDIANA
  GAMING COMPANY, L.P.

  
	
   

  	
  By:

  	
  The
  Indiana Gaming Company,

  
	
   

  	
   

  	
  Its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PENN
  NATIONAL GSFR, LLC

  
	
   

  	
  By:

  	
  Penn
  National Gaming, Inc.,

  
	
   

  	
   

  	
  Its
  Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ALTON
  GAMING COMPANY

  
	
   

  	
  ARGOSY
  OF IOWA, INC.

  
	
   

  	
  BANGOR
  HISTORIC TRACK, INC.

  
	
   

  	
  EMPRESS
  CASINO JOLIET CORPORATION

  
	
   

  	
  HOLLYWOOD
  CASINO-AURORA, INC.

  
	
   

  	
  IOWA
  GAMING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Peter M. Carlino

  
	
   

  	
   

  	
  Name:  Peter M. Carlino

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BELLE
  OF SIOUX CITY, L.P.

  
	
   

  	
  By:

  	
  Iowa
  Gaming Company,

  
	
   

  	
   

  	
  Its
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Peter M. Carlino

  
	
   

  	
   

  	
  Name:  Peter M. Carlino

  
	
   

  	
   

  	
  Title:
  Chief Executive Officer

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  KANSAS
  PENN GAMING LLC

  
	
   

  	
  PENN
  SUMNER, LLC

  
	
   

  	
  ZIA
  PARK LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Robert S. Ippolito

  
	
   

  	
   

  	
  Name:
  Robert S. Ippolito

  
	
   

  	
   

  	
  Title:
  Treasurer

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  DEUTSCHE
  BANK SECURITIES INC.,

  
	
   

  	
  as
  Co-Lead Arranger, Co-Book Running Manager

  and Auction Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Kevin Sherlock

  
	
   

  	
   

  	
  Name:
  Kevin Sherlock

  
	
   

  	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  William Frauen

  
	
   

  	
   

  	
  Name:
  William Frauen

  
	
   

  	
   

  	
  Title:
  Managing Director

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  WELLS
  FARGO SECURITIES, LLC,

  
	
   

  	
  as
  Co-Lead Arranger and

  
	
   

  	
  Co-Book
  Running Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Whitney Wall

  
	
   

  	
   

  	
  Name:  Whitney Wall

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  BANC
  OF AMERICA SECURITIES LLC,

  
	
   

  	
  as
  Co-Lead Arranger and

  
	
   

  	
  Co-Book
  Running Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Richard Arendale

  
	
   

  	
   

  	
  Name:
  Richard Arendale

  
	
   

  	
   

  	
  Title:
  Principal

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  RBS
  SECURITIES INC.,

  
	
   

  	
  as
  Co-Lead Arranger and

  
	
   

  	
  Co-Book
  Running Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Douglas P. Harmon

  
	
   

  	
   

  	
  Name:
  Douglas P. Harmon

  
	
   

  	
   

  	
  Title:
  Managing Director

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL

  ASSOCIATION, as Syndication Agent and L/C

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Peitty Chou

  
	
   

  	
   

  	
  Name:
  Peitty Chou

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  BANK
  OF AMERICA, N.A.,

  
	
   

  	
  as
  Syndication Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Brian D. Corum

  
	
   

  	
   

  	
  Name:
  Brian D. Corum

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY

  AMERICAS, as Administrative Agent, Collateral

  Agent and Swingline Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Erin Morrissey

  
	
   

  	
   

  	
  Name:
  Erin Morrissey

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  Evelyn Thierry

  
	
   

  	
   

  	
  Name:
  Evelyn Thierry

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  WACHOVIA
  BANK NATIONAL ASSOCIATION,

  as L/C Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  G. Lee Wagner, Jr.

  
	
   

  	
   

  	
  Name:
  G. Lee Wagner, Jr.

  
	
   

  	
   

  	
  Title: Vice President

  

 

[Signature page to Second
Amendment]

 

 

	
   

  	
  *

  	
  ,

  
	
   

  	
  as
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  two signatures are required:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

	
   

  	
  Amount
  of Revolving Commitments Extended:

  	
  $

  	
   

  

 

 

*
Form of signature page executed by the
other lenders party to this amendment.

 

[Signature page to Second
Amendment]

 

 

ANNEX A

 

LENDER ADDENDUM

 

Reference is made to the SECOND AMENDMENT (the “Second Amendment”) to be entered into among PENN NATIONAL
GAMING, INC., a Pennsylvania corporation, DEUTSCHE BANK SECURITIES INC., WELLS
FARGO SECURITIES, LLC and BANC OF AMERICA SECURITIES LLC, as co-lead arrangers
and co-book running managers, WELLS FARGO BANK, NATIONAL ASSOCIATION and BANK
OF AMERICA, N.A., as syndication agents, the Lenders party thereto, DEUTSCHE
BANK TRUST COMPANY AMERICAS, as Swingline Lender, Administrative Agent and
Collateral Agent under the Credit Agreement (as defined below), WACHOVIA BANK
NATIONAL ASSOCIATION, as L/C Lender under the Credit Agreement, and the other
parties thereto to the Credit Agreement, dated as of October 3, 2005 (as
amended, modified or supplemented prior to the Second Amendment Effective Date,
the “Credit Agreement”), among the Borrower,
the Subsidiary Guarantors party thereto from time to time, the Lenders from
time to time party thereto, the L/C Lenders party thereto, DEUTSCHE BANK SECURITIES
INC., GOLDMAN SACHS CREDIT PARTNERS L.P. and LEHMAN BROTHERS INC., as joint
lead arrangers and joint bookrunners, GOLDMAN SACHS CREDIT PARTNERS L.P. and
LEHMAN COMMERCIAL PAPER INC., as co-syndication agents, DEUTSCHE BANK TRUST
COMPANY AMERICAS, as swingline lender, as administrative agent (in such
capacity, together with its successors in such capacity, the “Administrative Agent”) and as collateral agent, and CALYON
NEW YORK BRANCH, WELLS FARGO BANK, NATIONAL ASSOCIATION and BANK OF SCOTLAND, as
co-documentation agents.  Unless
otherwise defined herein, terms defined in the Second Amendment and used herein
shall have the meanings given to them in the Second Amendment.

 

The undersigned hereby agrees to become an
Incremental Tranche B Revolving Lender under the Credit Agreement, as amended
by the Second Amendment, having an Incremental Tranche B Revolving Commitment
of
$                                  .  The undersigned understands that final allocations
of Incremental Tranche B Revolving Commitments will be made at the sole
discretion of the Administrative Agent and the Borrower and that the
Administrative Agent and the Borrower may accept or reject any Incremental
Tranche B Commitment in whole or in part.

 

THIS TRANCHE B REVOLVING LENDER ADDENDUM SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK.

 

Delivery of an executed signature page hereof
by facsimile transmission (or email) shall be effective as delivery of a
manually executed counterpart hereof.

 

The undersigned’s address for notices pursuant to
the Credit Agreement is as follows:

 

	
  Name
  of Incremental Tranche B Revolving Lender:

  	
   

  	
   

  
	
  Notice
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  

 

A-1

 

IN WITNESS WHEREOF, the undersigned has caused this
Tranche B Revolving Lender Addendum to be duly executed and delivered by its
proper and duly authorized officers as of this
           day of August 2009.

 

	
   

  	
   

  	
  ,

  
	
   

  	
  as
  Incremental Tranche B Revolving Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  two signatures are required:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

A-2

 

ANNEX B-1

 

Applicable
Margin for Revolving Loans,

Swingline
Loans and Term A Facility Loans

and

Applicable
Fee Percentage

 

	
  Pricing

  	
   

  	
  Consolidated Total

  	
   

  	
  Applicable Margin

  for Tranche A 

  Revolving Loans,

  Swingline Loans (1) and

  Term A Facility Loans

  	
   

  	
  Applicable Margin

  for Tranche B

  Revolving Loans and

  Swingline Loans (1)

  	
   

  	
  Applicable

  Fee

  	
   

  
	
  Level

  	
   

  	
  Leverage Ratio

  	
   

  	
  LIBOR+

  	
   

  	
  ABR+

  	
   

  	
  LIBOR+

  	
   

  	
  ABR+

  	
   

  	
  Percentage (2)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level I

  	
   

  	
  Greater than 5.50 to
  1.00

  	
   

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  	
  3.75

  	
  %

  	
  2.75

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level II

  	
   

  	
  Less than or equal to
  5.50 to 1.00 but greater than 5.00 to 1.00

  	
   

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  3.50

  	
  %

  	
  2.50

  	
  %

  	
  0.500

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level III

  	
   

  	
  Less than or equal to
  5.00 to 1.00 but greater than 4.50 to 1.00

  	
   

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  	
  3.25

  	
  %

  	
  2.25

  	
  %

  	
  0.375

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level IV

  	
   

  	
  Less than or equal to
  4.50 to 1.00 but greater than 4.00 to 1.00

  	
   

  	
  1.50

  	
  %

  	
  0.50

  	
  %

  	
  3.00

  	
  %

  	
  2.00

  	
  %

  	
  0.300

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level V

  	
   

  	
  Less than or equal to
  4.00 to 1.00 but greater than 3.50 to 1.00

  	
   

  	
  1.25

  	
  %

  	
  0.25

  	
  %

  	
  2.75

  	
  %

  	
  1.75

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level VI

  	
   

  	
  Less than or equal to
  3.50 to 1.00 but greater than 3.00 to 1.00

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  2.50

  	
  %

  	
  1.50

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level VII

  	
   

  	
  Less than or equal to
  3.00 to 1.00 but greater than 2.50 to 1.00

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  2.25

  	
  %

  	
  1.25

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level VIII

  	
   

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

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  2.00

  	
  %

  	
  1.00

  	
  %

  	
  0.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level IX

  	
   

  	
  Less than or equal to
  2.00 to 1.00

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  	
  1.75

  	
  %

  	
  0.75

  	
  %

  	
  0.250

  	
  %

  

 

(1)           Swingline Loans may only be
maintained as ABR Loans.  For so long as
multiple Tranches of Revolving Commitments are outstanding, the interest rate
on Swingline Loans shall be the weighted average of the rates then applicable
to ABR Loans that are Revolving Loans based on the respective Revolving
Commitments outstanding under each such Tranche.

 

(2)           Applies to Revolving Facility.

 

B-1Exhibit 4.3

 

FIRST AMENDMENT TO WARRANT AGREEMENT

 

THIS FIRST AMENDMENT TO WARRANT AGREEMENT made as of
[              ], 2009 (this “Amendment”)
amends that certain Warrant Agreement dated January 12, 2009 (the “Warrant
Agreement”) between ProUroCare Medical Inc., a Nevada corporation (the “Company”)
and Interwest Transfer Company Inc., a Utah corporation (the “Warrant Agent”).   Capitalized terms that are used and not
defined in this Amendment shall have the meanings assigned to them in the
Warrant Agreement.

 

W I T N E S S E T H:

 

WHEREAS, the Company is engaged in a tender offer (the “Tender
Offer”) to promote the early exercise of all of the Warrants that are the
subject of the Warrant Agreement, and the terms of the Warrants have been
temporarily modified during the period of such Tender Offer, which, as defined
by the documents relating to the Tender Offer, is the period of twenty-five
(25) business days after September 25, 2009, or until October 30,
2009 at 1 P.M. Central Daylight Time, unless earlier withdrawn or
otherwise extended by the Company (the “Offer Period”), so that each
Warrant holder who tenders a Warrant for early exercise will receive, in
addition to the shares of Common Stock purchased upon exercise, one new
three-year redeemable warrant to purchase the same number of shares of Common
Stock at an exercise price of $1.30 per share (the “Replacement Warrant”);
and

 

WHEREAS, as a result of the Tender Offer, the Company may
issue and deliver Replacement Warrants to purchase up to 6,108,381 shares of
Common Stock to those Warrant holders who tender their Warrants for early
exercise during the Offer Period; and

 

WHEREAS, the Company desires the Warrant Agent to act on
behalf of the Company, and the Warrant Agent is willing to so act, in connection
with the issuance, registration, transfer, exchange, redemption and exercise of
the Replacement Warrants; and

 

WHEREAS, Section 9(h) of the Warrant Agreement
provides that the Warrant Agreement may be amended by the parties thereto
without the consent of any Registered Holder for the purpose of adding or
changing any provisions with respect to matters arising under the Warrant
Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the interest of the Registered Holders; and

 

WHEREAS, the parties desire to amend the Warrant Agreement to
expand the scope of the Warrant Agent’s appointment to include the Replacement
Warrants in addition to the Warrants, and the parties deem that such amendment
does not adversely affect the interest of the Registered Holders.

 

NOW, THEREFORE, in consideration of the foregoing and the
mutual agreements herein contained, and intending to be legally bound hereby,
the Company and the Warrant Agent hereby agree as follows:

 

 

1.                                       Definition of “Warrants”
to Include Replacement Warrants.  The term “Warrants” as used in the Warrant
Agreement shall be deemed to include the Public Warrants, the Private Warrants
and the Replacement Warrants.

 

2.                                       Amendment to Section 2(d).  Section 2(d) of the Warrant
Agreement shall be deleted in its entirety and replaced with the following:

 

“(d)                           Detachability
of Warrants.  Each Public
Warrant and Private Warrant shall initially be issued together with one share
of Common Stock as a Unit.  The share of
Common Stock and Public Warrant or Private Warrant comprising a Unit shall not
be separately transferable before the 30th day following the date of the
prospectus with respect to the Company’s Public Offering (and the Units will
thereafter continue trading following such separation) (the “Detachment Date”).  Prior to the Detachment Date, the Public
Warrants and Private Warrants may be transferred or exchanged only together
with the Unit in which such Public Warrant or Private Unit is included, and
only for the purpose of effecting, or in conjunction with, a transfer or
exchange of such Unit.  Furthermore,
prior to the Detachment Date, each transfer of a Unit on the register relating
to such Units shall operate also to transfer the Public Warrant or Private
Warrant included in such Unit.”

 

3.                                       Amendment to Section 3(b).  Section 3(b) of the Warrant
Agreement shall be deleted in its entirety and replaced with the following:

 

“(b)                           Duration of
Warrants.  A Public
Warrant or Private Warrant may be exercised only during the period commencing
on the 30th day following the date of the prospectus with respect to the
Company’s Public Offering, and terminating at 5:00 p.m., Minneapolis,
Minnesota time on the earlier to occur of (i) January 7, 2014 or (ii) the
date fixed for redemption of the Public Warrants and Private Warrants as
provided in Section 6 of this Warrant Agreement.  A Replacement Warrant may be exercised only
during the period commencing on the closing date of the offering, which shall
be a date promptly following expiration of the Offer Period (the “Closing Date”),
and terminating at 5:00 p.m., Minneapolis, Minnesota time on the earlier
to occur of (i) the three-year anniversary of the Closing Date or (ii) the
date fixed for redemption of the Replacement Warrants as provided in Section 6
of this Warrant Agreement.  The term “Exercise
Period” as used in this Warrant Agreement refers to the period during which
a Warrant may be exercised in accordance with the foregoing sentences, and the
term “Expiration Date” as used in this Warrant Agreement refers to the
last date of the applicable Exercise Period as set forth in the foregoing
sentences.  Except with respect to the
right to receive the Redemption Price (as set forth in Section 6
hereunder), each Warrant not exercised on or before the applicable Expiration
Date shall become void, and all rights thereunder and all rights in respect
thereof under this Warrant Agreement shall cease at 5:00 p.m.,
Minneapolis, Minnesota time on the applicable Expiration Date.  The Company in its sole discretion may extend
the duration of the Warrants by delaying the applicable Expiration Date;
provided, however, that the Company will provide notice to Registered Holders
of Warrants of such extension not less than 20 days prior to such extension
becoming effective.”

 

2

 

4.                                       Amendment to Section 6(a).  Section 6(a) of the Warrant
Agreement shall be deleted in its entirety and replaced with the following:

 

“(a)                            Redemption.  Subject to Section 6(d) hereof, not
less than all of the outstanding Public Warrants and Private Warrants together
may be redeemed, at the option of the Company, at any time after they become
exercisable and prior to their expiration, at the office of the Warrant Agent,
upon the notice referred to in Section 6(b), at the price of $0.01 per
Public Warrant and Private Warrant, provided that the last sales price of the
Common Stock has been equal to or greater than $1.82 per share, for 10
consecutive trading days; provided, however, that the Private Warrants issued
pursuant to the Underwriter’s Warrant may not be redeemed prior to one year
following the date of the prospectus with respect to the Company’s Public
Offering and following the notice period required by Section 6(b).  Subject to Section 6(d) hereof, not
less than all of the outstanding Replacement Warrants may be redeemed, at the
option of the Company, at any time after they become exercisable and prior to
their expiration, at the office of the Warrant Agent, upon the notice referred
to in Section 6(b), at the price of $0.01 per Replacement Warrant,
provided that the last sales price of the Common Stock has been equal to or
greater than $4.00 per share, for 10 consecutive trading days.  The term “Redemption Price” as used in
this Warrant Agreement refers to the price per share to be paid by the Company
to redeem any of the Public Warrants, Private Warrants or Replacement Warrants.”

 

5.                                       Amendment to Section 6(b).  Section 6(b) of the Warrant
Agreement shall be deleted in its entirety and replaced with the following:

 

“(b)                           Date Fixed for,
and Notice of, Redemption.  In
the event the Company shall elect to redeem all of the Public Warrants and
Private Warrants together, or all of the Replacement Warrants, the Company shall
fix a date for such redemption. Notice of redemption shall be mailed by first
class mail, postage prepaid, by the Company not less than 30 days prior to the
date fixed for redemption to the Registered Holders of the Warrants to be
redeemed at their last addresses as they shall appear on the Warrant Register.
Any notice mailed in the manner herein provided shall be conclusively presumed
to have been duly given whether or not the Registered Holder received such
notice.”

 

6.                                       Amendment to Section 7(d).  Section 7(d) of the Warrant
Agreement shall be deleted in its entirety and replaced with the following:

 

“(d)                           Registration
Requirement. 
Notwithstanding anything else in this Warrant Agreement, no Warrants may
be exercised unless at the time of exercise (i) a registration statement
covering the shares of Common Stock to be issued upon exercise (other than
shares of Common Stock to be issued upon exercise of any Private Warrant) is
effective under the Act and (ii) a prospectus thereunder relating to the
shares of Common Stock (other than shares of Common Stock to be issued upon
exercise of any Private Warrant) is current. 
The Company shall use its best efforts to have a registration statement
in effect covering the shares of Common Stock issuable upon exercise of the
Warrants (other than shares of Common Stock to be issued upon exercise of any
Private Warrant)

 

3

 

from
the date the Warrants become exercisable and to maintain a current prospectus
relating to shares of Common Stock to be issued upon exercise of the Warrants
(other than shares of Common Stock to be issued upon exercise of any Private
Warrant) until such warrants expire or are redeemed.  In the event that, at the end of the Exercise
Period, a registration statement covering the shares of Common Stock to be
issued upon exercise of the Warrants (other than shares of Common Stock to be
issued upon exercise of any Private Warrant) is not effective under the Act,
the Exercise Period shall be extended until a registration statement covering
the shares of Common Stock to be issued upon exercise of the Warrants (other
than shares of Common Stock to be issued upon exercise of any Private Warrant)
is effective under the Act and 30 days’ notice of such effectiveness has been
provided to the Registered Holders of any then-outstanding Warrants.  Upon such 30 days’ written notice of such
effectiveness to the Registered Holders of any then-outstanding Warrants, all
the rights of holders hereunder shall terminate and all of the Warrants shall
expire unexercised and worthless.  In no
event shall the Warrants be settled on a net cash basis nor shall the Company
be required to issue unregistered shares upon the exercise of any Warrant that
is not a Private Warrant.  This Section 7(d) shall
not work to shorten the Exercise Period of the Warrants.”

 

7.                                       Amendment to Exhibit A.  Exhibit A to the Warrant
Agreement is hereby amended to label the present form of warrant set forth in Exhibit A
as “Form of Public Warrant and Private Warrant” and to insert the form of
Replacement Warrant attached hereto immediately following the Form of
Public Warrant and Private Warrant.

 

8.                                       Binding Effect.  Except to the extent expressly provided
herein, the Warrant Agreement shall remain in full force and effect in
accordance with its terms.  This
Amendment shall be governed by and construed as one with the Warrant Agreement,
and the Warrant Agreement shall be read and construed so as to incorporate this
Amendment.

 

9.                                       Governing Law.  This Amendment shall be governed by and
construed in accordance with the law of the State of Utah applicable to
contracts made in Utah by persons domiciled in Salt Lake City and without
regard to its principles of conflicts of laws.

 

10.                                 Counterparts;
Effectiveness.  This
Amendment may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

 

[Remainder of Page Intentionally Left Blank.]

 

4

 

IN WITNESS WHEREOF,  this First Amendment to Warrant Agreement has
been duly executed by the parties hereto as of the day and year first above
written.

 

 

	
   

  	
  PROUROCARE
  MEDICAL INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Richard C. Carlson

  	 

	
   

  	
  Title:
  Chief Executive Officer

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  INTERWEST
  TRANSFER COMPANY INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   

  	 

	
   

  	
  Name:
  Kurtis Hughes

  	 

	
   

  	
  Title:
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]