Document:

Exhibit 10.3

 

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

 

THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Credit Agreement”)
is made and entered into as of the 28th day of March, 2003, by and among MTR
GAMING GROUP, INC., a Delaware corporation (“MTRI”), MOUNTAINEER PARK, INC., a
West Virginia corporation (“MPI”), SPEAKEASY GAMING OF LAS VEGAS, INC., a
Nevada corporation (“SGLVI”), SPEAKEASY GAMING OF RENO, INC., a Nevada
corporation (“SGRI”), PRESQUE ISLE DOWNS, INC., a Pennsylvania corporation
(“PIDI”) and RACING ACQUISITION, INC., an Ohio corporation (“RAI” and together
with MTRI, MPI, SGLVI, SGRI and PIDI, collectively referred to as the
“Borrowers”), each financial institution whose name is set forth on the
signature pages of this Credit Agreement and each lender which may hereafter
become a party to this Credit Agreement pursuant to Section 10.10(b) (each
individually a “Lender” and collectively the “Lenders”), WELLS FARGO BANK,
National Association, as the swingline lender (herein in such capacity,
together with its successors and assigns, the “Swingline Lender”), and WELLS
FARGO BANK, National Association, as the issuer of letters of credit following
the Closing Date (in such capacity, together with its successors and assigns,
the “L/C Issuer”) and WELLS FARGO BANK, National Association, as administrative
and collateral agent for the Lenders, Swingline Lender and L/C Issuer (herein,
in such capacity, called the “Agent Bank” and, together with the Lenders,
Swingline Lender and L/C Issuer, collectively referred to as the “Banks”).

 

R E C I T A L S:

 

WHEREAS:

 

A.                                   In
this Credit Agreement all capitalized words and terms shall have the respective
meanings and be construed herein as hereinafter provided in Section 1.01 of
this Credit Agreement and shall be deemed to incorporate such words and terms
as a part hereof in the same manner and with the same effect as if the same
were fully set forth.

 

B.                                     MPI,
SGLVI, SGRI, PIDI and RAI are wholly owned subsidiaries of MTRI.  As of the date hereof, MTRI, MPI, SGLVI,
SGRI and PIDI are indebted to WFB and other lenders as set forth in the
Existing Credit Agreement under the terms of the Existing Credit Facility.

 

C.                                     Under
the terms of the Scioto Merger Agreement, on the Scioto Merger Effective Date,
SDI and RAI will merge, with SDI remaining as the surviving corporation as a
wholly owned subsidiary of MTRI and owner of the SDI Facility.

 

 

D.                                    MTRI
has issued One Hundred Thirty Million Dollars ($130,000,000.00) in 9 3/4%
Senior Notes due April 1, 2010 (the “Initial Senior Unsecured Notes”) in a
limited offering to Qualified Institutional Buyers (as defined in Rule 144A of
the Securities and Exchange Commission (the “SEC”)), accredited institutional
investors (as defined in Rule 501(a) (1), (2), (3) or (7) of the Securities
Act) and non United States Persons (as defined in Rule 903 of Regulation S
of the Securities Act), which Initial Senior Unsecured Notes are intended to be
issued under and pursuant to the Senior Unsecured Indenture.  Following the issuance of the Initial Senior
Unsecured Notes and in order to facilitate trading in such debt securities,
MTRI intends to file a registration statement with the SEC seeking to register
an exchange offer for the exchange of the Initial Senior Unsecured Notes for an
issue of One Hundred Thirty Million Dollars ($130,000,000.00) in 9 3/4% Senior
Notes due April 1, 2010 (the “Exchange Senior Unsecured Notes”) under and
pursuant to the Senior Unsecured Indenture. 
The Exchange Senior Unsecured Notes will be identical in all material
respects to the Initial Senior Unsecured Notes.

 

E.                                      The
Borrowers desire to fully amend and restate the Existing Credit Facility as a
secured revolving credit facility in the amount of Fifty Million Dollars
($50,000,000.00), the proceeds of which will be used to fund ongoing Capital
Expenditures and working capital requirements and for other general corporate
purposes, including a swingline subfacility for fundings in smaller minimum
amounts and on shorter notice in the maximum amount of Ten Million Dollars
($10,000,000.00) at any time outstanding and a letter of credit subfacility for
the issuance of Letters of Credit up to the maximum aggregate amount of Ten
Million Dollars ($10,000,000.00) at any time outstanding.

 

F.                                      Lenders
are willing to establish the Credit Facility in favor of the Borrower
Consolidation in the principal amount of Fifty Million Dollars ($50,000,000.00)
at any time outstanding, including the Swingline Facility to be funded by the
Swingline Lender, as a subfacility in the maximum aggregate amount of Ten
Million Dollars ($10,000,000.00) at any time outstanding and a letter of credit
subfacility for the issuance of Letters of Credit up to the maximum aggregate
amount of Ten Million Dollars ($10,000,000.00) at any time outstanding, all on the
terms and subject to the conditions, covenants and understandings hereinafter
set forth and contained in each of the Loan Documents.

 

NOW,
THEREFORE, in consideration of the foregoing, and other valuable considerations
as hereinafter described, the parties hereto do promise, covenant and agree as
follows:

 

2

 

ARTICLE I

DEFINITIONS

 

Section 1.01.                             Definitions.  For the purposes of this Credit Agreement,
each of the following terms shall have the meaning specified with respect
thereto, unless a different meaning clearly appears from the context:

 

“Acquisition”
means any transaction, or any series of related transactions, consummated after
the Closing Date, by which any member of the Borrower Consolidation directly or
indirectly acquires (i) any real property that does not constitute an
Expansion Capital Expenditure, (ii) any New Venture or any ongoing
business, or (iii) all or substantially all of the assets of any firm,
partnership, joint venture, limited liability company, corporation or division
thereof, whether through purchase of assets, merger or otherwise.

 

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

 

For the Fiscal Quarter under review, together with the most recently
ended three (3) preceding Fiscal Quarters, the sum of: (i) EBITDA, less
(ii) the aggregate amount of Distributions actually paid, less
(iii) the aggregate amount of actually paid federal and state taxes on or
measured by income, less (iv) the aggregate amount of the Capital
Expenditure Proxy Amount

 

Divided by ( ̧)

 

The sum of: (i) Interest Expense (expensed and capitalized) determined
for the Fiscal Quarter under review together with the most recently ended three
(3) preceding Fiscal Quarters, plus (ii) the current portion of all
interest bearing Indebtedness as of the end of the Fiscal Quarter under review,
plus (iii) the current portion of Capitalized Lease Liabilities as of the
end of the Fiscal Quarter under review.

 

“Affiliate”,
as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person.  For the purposes of this definition,
“control” (including, with correlative meanings, the terms “controlling”,
“controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of that Person, whether through
the ownership of voting securities or by contract or otherwise.

 

“Agent Bank”
shall mean WFB in its capacity as administrative and collateral agent for
Lenders.

 

3

 

“Aggregate
Commitment” shall mean reference to the aggregate amount committed by Lenders
for advance to or on behalf of the Borrower Consolidation as Borrowings
under the Credit Facility in the initial principal amount of Fifty Million
Dollars ($50,000,000.00), as may be reduced from time to time by:
(i) Voluntary Permanent Reductions, and/or (ii) Mandatory Commitment
Reductions.

 

“Aggregate
Outstandings” shall mean collective reference to the sum of the Funded
Outstandings, Swingline Outstandings and L/C Exposure as of any given date of
determination.

 

“Alternative
Payments” shall mean the “Alternative Payments” as defined and described in the
Scioto Merger Agreement.

 

“Applicable
Margin” means for any Base Rate Loan or LIBOR Loan, the applicable percentage
amount to be added to the Base Rate or LIBO Rate, as the case may be, as
follows: (i) commencing on the Closing Date and continuing until the Rate
Adjustment Date, the Applicable Margins as calculated on the Pricing
Certificate to be delivered by Borrowers to Agent Bank on the Closing Date pursuant
to Section 3.26 and; (ii) commencing on the Rate Adjustment Date and
continuing until Credit Facility Termination, the margin rates as set forth in
Table One below in each instance based on the Leverage Ratio calculated with
regard to the Borrower Consolidation as of each Fiscal Quarter end, commencing
with the Fiscal Quarter ending March 31, 2003, together with the immediately
preceding three (3) Fiscal Quarters on a four (4) Fiscal Quarter basis, any
change in the applicable percentage amount by reason thereof to be effective as
of the 1st day of the third (3rd) month immediately following each such Fiscal
Quarter end:

 

	
   

  	
   

  	
  TABLE ONE

  	
   

  	
  TABLE TWO

  	
   

  
	
  Leverage Ratio

  	
   

  	
  Base Rate

  Margin

  	
   

  	
  LIBO

  Rate

  Margin

  	
   

  	
  Commitment

  Percentage

  	
   

  
	
  Greater than or equal to 3.50 to 1.00

  	
   

  	
  2.75

  	
  %

  	
  4.00

  	
  %

  	
  0.75

  	
  %

  
	
  Greater than or equal to 3.00 to 1.00 but less than
  3.50 to 1.00

  	
   

  	
  2.25

  	
  %

  	
  3.50

  	
  %

  	
  0.75

  	
  %

  
	
  Greater than or equal to 2.50 to 1.0 but less than
  3.00 to 1.00

  	
   

  	
  1.75

  	
  %

  	
  3.00

  	
  %

  	
  0.625

  	
  %

  
	
  Greater than or equal to 2.00 to 1.0 but less than
  2.50 to 1.00

  	
   

  	
  1.25

  	
  %

  	
  2.50

  	
  %

  	
  0.500

  	
  %

  
	
  Less than 2.00 to 1.00

  	
   

  	
  0.75

  	
  %

  	
  2.00

  	
  %

  	
  0.375

  	
  %

  

 

4

 

“Arneault”
shall mean Edson (Ted) Arneault, an individual, President and Chief Executive
Officer of MTRI as of the Closing Date.

 

“Assets” shall
mean the total assets of the Borrower Consolidation determined in accordance
with GAAP.

 

“Assignment
and Assumption Agreement” shall mean the document evidencing an assignment of a
Syndication Interest by any Lender to an Eligible Assignee in the form of the
Assignment, Assumption and Consent Agreement marked “Exhibit H”, affixed
hereto and by this reference incorporated herein and made a part hereof.

 

“Authorized
Officer(s)” shall mean, relative to the Borrower Consolidation, those of the
respective officers whose signatures and incumbency shall have been certified
to Agent Bank and the Banks as required in Section 3.05(iv) of the Credit
Agreement with the authority and responsibility to deliver Notices of
Borrowing, Notice of Swingline Advances, Continuation/Conversion Notices,
Pricing Certificates, Compliance Certificates and all other requests, notices,
reports, consents, certifications and authorizations on behalf of Borrowers and
the Borrower Consolidation.

 

“Available
Borrowings” shall mean, at any time, and from time to time, the aggregate
amount available to Borrowers for a Borrowing or issuance of a Letter of Credit
not exceeding the amount of the Maximum Availability, as of each date of
determination.

 

“Bank
Facilities” shall mean collective reference to the Credit Facility, Swingline
Facility and L/C Facility.

 

“Banking
Business Day” means (a) with respect to any Borrowing, payment or rate
determination of LIBOR Loans, a day, other than a Saturday or Sunday, on which
Agent Bank is open for business in San Francisco and on which dealings in
Dollars are carried on in the London interbank market, and (b) for all
other purposes any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the States of California and/or Nevada, or is a day
on which banking institutions located in California and/or Nevada are required
or authorized by law or other governmental action to close.

 

“Bankruptcy
Code” shall mean the United States Bankruptcy Code, as amended, 11 U.S.C.
Section 101, et seq.

 

“Banks” shall
have the meaning set forth in the Preamble to this Credit Agreement.

 

5

 

“Base Rate”
shall mean, as of any date of determination, the rate per annum equal to the
higher of (a) the Prime Rate in effect on such date and (b) the Federal
Funds Rate in effect on such date plus one-half of one percent (1/2 of 1%)
(fifty basis points).

 

“Base Rate
Loan” shall mean reference to that portion of the unpaid principal balance of
the Credit Facility bearing interest with reference to the Base Rate plus the
Applicable Margin.

 

“Borrower
Consolidation” shall mean collective reference to Borrowers and each Restricted
Subsidiary created in accordance with Section 5.27 on a consolidated
basis, without regard to any Unrestricted Subsidiary.

 

“Borrowers”
shall mean collective reference to MTRI, MPI, SGLVI, SGRI, PIDI and RAI (and,
following the Scioto Merger Effective Date, SDI as RAI’s successor by merger).

 

“Borrowing(s)”
shall mean collective reference to such amounts as Borrowers may request from
time to time to be advanced under the Credit Facility by Notice of Borrowing in
the manner provided in Section 2.03, or at the request of Agent Bank pursuant
to Section 2.08 or 2.14.

 

“Breakage
Charges” shall have the meaning set forth in Section 2.07(c) of the Credit
Agreement.

 

“Capital
Expenditure Proxy Amount” as used herein shall mean two percent (2.0%) of
revenues net of promotional allowances determined for the four (4) consecutive
Fiscal Quarter period ending with the Fiscal Quarter under review.

 

“Capital
Expenditures” shall mean, for any period, without duplication, the aggregate of
all expenditures (whether paid in cash or accrued as liabilities during that
period and including Capitalized Lease Liabilities) by a Borrower or the
Borrower Consolidation, as the context may require, during such period that, in
conformity with GAAP, are required to be included in or reflected by the
property, plant or equipment or similar fixed or capital asset accounts
reflected in the balance sheet of a Borrower or the Borrower Consolidation, as
the context may require (including equipment which is purchased simultaneously
with the trade-in of existing equipment owned by Borrower or the Borrower Consolidation,
as the context may require, to the extent of (a) the gross amount of such
purchase price less (b) the cash proceeds of trade-in credit of the
equipment being traded in at such time), but excluding capital expenditures
made in connection with the replacement or restoration of assets, to the extent
reimbursed or refinanced from insurance proceeds paid on account of the loss of
or damage to the assets being replaced or restored, or from awards of
compensation arising from the

 

6

 

taking by condemnation of or the exercise of the power of eminent
domain with respect to such assets being replaced or restored.

 

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

 

“Capitalized
Lease Liabilities” means all monetary obligations of the Borrower Consolidation
under any leasing or similar arrangement which, in accordance with GAAP, would
be classified as capitalized leases, and, for purposes of this Credit Agreement,
the amount of such obligations shall be the capitalized amount thereof,
determined in accordance with GAAP, and the stated maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty.

 

“Cash” shall
mean, when used in connection with any Person, all monetary and non-monetary
items owned by that Person that are treated as cash in accordance with GAAP.

 

“Cash
Collateral Account” shall mean the restricted depository savings account to be
established by Borrowers or Agent Bank on behalf of Borrowers with L/C Issuer
at its offices located at 3800 Howard Hughes Parkway, Las Vegas, Nevada, or at
such other office located in the United States as may be designated from time
to time by L/C Issuer, for the purpose of depositing Cash collateral for the
aggregate L/C Exposure upon the occurrence of any Event of Default.

 

“Cash
Collateral Pledge Agreement” shall mean the Pledge and Assignment of Savings
Account Agreement to be executed by Borrowers in favor of L/C Issuer as of the
Closing Date as the same may be amended or modified from time to time under the
terms of which all sums held from time to time in the Cash Collateral Account
are pledged in favor of L/C Issuer to secure repayment of any funding required
under any outstanding Letters of Credit, a copy of the form of which Cash
Collateral Pledge Agreement is marked “Exhibit R”, affixed to the Credit
Agreement and by this reference incorporated herein and made a part hereof.

 

7

 

“Cash
Equivalents” shall mean, when used in connection with any Person, that Person’s
Investments in:

 

(a)                                  Government Securities
due within one (1) year after the date of the making of the Investment;

 

(b)                                 readily marketable
direct obligations of any State of the United States of America given on the
date of such Investment a credit rating of at least Aa by Moody’s Investors
Service, Inc. or AA by Standard & Poor’s Corporation, in each case due
within one (1) year from the making of the Investment;

 

(c)                                  certificates of
deposit issued by, bank deposits in, eurodollar deposits through, bankers’
acceptance of, and repurchase agreements covering Government Securities
executed by, United National Bank of West Virginia or any bank incorporated
under the laws of the United States of America or any State thereof and having
on the date of such Investment combined capital, surplus and undivided profits
of at least Two Hundred Fifty Million Dollars ($250,000,000.00), or total
assets of at least Five Billion Dollars ($5,000,000,000.00), in each case due
within one (1) year after the date of the making of the Investment;

 

(d)                                 certificates of
deposit issued by, bank deposits in, eurodollar deposits through, bankers’
acceptances of, and repurchase agreements covering Government Securities
executed by, any branch or office located in the United States of America of a
bank incorporated under the laws of any jurisdiction outside the United States
of America having on the date of such Investment combined capital, surplus and
undivided profits of at least Five Hundred Million Dollars ($500,000,000.00),
or total assets of at least Fifteen Billion Dollars ($15,000,000,000.00) in
each case due within one year after the date of the making of the Investment;

 

(e)                                  repurchase agreements
covering Government Securities executed by a broker or dealer registered under
Section 15(b) of the Securities Exchange Act of 1934 having on the date of the
Investment capital of at least One Hundred Million Dollars ($100,000,000.00),
due within thirty (30) days after the date of the making of the Investment; provided
that the maker of the Investment receives written confirmation of the transfer
to it of record ownership of the Government Securities on the books of a
“primary dealer” in such Government Securities on the books of such registered
broker or dealer, as soon as practicable after the making of the Investment;

 

8

 

(f)                                    readily marketable
commercial paper of corporations doing business in and incorporated under the
laws of the United States of America or any State thereof or of any corporation
that is the holding company for a bank described in clauses (c) or (d) above
given on the date of such Investment a credit rating of at least P-1 by Moody’s
Investors Service, Inc. or A-1 by Standard & Poor’s Corporation, in each
case due within three hundred sixty-five (365) days after the date of the making
of the Investment;

 

(g)                                 “money market
preferred stock” issued by a corporation incorporated under the laws of the
United States of America or any State thereof given on the date of such
Investment a credit rating of at least Aa by Moody’s Investors Service, Inc. or
AA by Standard & Poor’s Corporation, in each case having an investment
period not to exceed fifty (50) days; provided that (i) the amount of
all such Investments issued by the same issuer does not exceed Five Million
Dollars ($5,000,000.00) and (ii) the aggregate amount of all such
Investments does not exceed Fifteen Million Dollars ($15,000,000.00); and

 

(h)                                 a readily redeemable
“money market mutual fund” sponsored by a bank described in clauses (c) or (d)
hereof, or a registered broker or dealer described in clause (e) hereof, that
has and maintains an investment policy limiting its investments primarily to
instruments of the types described in clauses (a) through (g) hereof and having
on the date of such Investment total assets of at least One Billion Dollars
($1,000,000,000.00).

 

“Change of
Control” shall mean the occurrence of any of the following:

 

(a)                                  Any “person” or
“group” (as such terms are defined in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) other than any such “person” or
“group” which is or which includes the holders of the common stock (voting and
non-voting) of MTRI as of the Closing Date or their Affiliates, own or control,
more than forty percent (40%) of the common voting stock of MTRI; or

 

(b)                                 During any period of
twenty-four (24) consecutive months commencing after the Closing Date,
individuals who at the beginning of such period constituted MTRI’s Board of
Directors (together with any new or replacement directors whose election by
MTRI’s Board of Directors or whose nomination for election by MTRI’s
shareholders, was approved by a vote of at least a majority of the directors
then still in office who were

 

9

 

either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the directors then in office; or

 

(c)                                  MTRI fails to own,
directly or indirectly, one hundred percent (100%) of the capital stock
interests of MPI, SGLVI, SGRI, PIDI and RAI.

 

“Closing Date”
shall mean the date upon which: (i) each requirement set forth in Article IIIA
of this Credit Agreement has been satisfied or waived and (ii) the Security
Documentation have each been filed and/or recorded in accordance with and in
the manner required by the Closing Instructions.

 

“Closing
Disbursements” shall have the meaning set forth by Section 2.02(a).

 

“Closing
Instructions” shall mean a collective reference to the SGLVI Closing Instructions,
the SGRI Closing Instructions and the MPI Closing Instructions.

 

“Collateral”
shall mean: (a) a collective reference to the MPI Collateral, SGLVI Collateral,
the SGRI Collateral and the MTRI Collateral; and (b) any and all other property
and/or intangible rights, interests or benefits inuring to or in favor of
Borrowers which are in any manner assigned, pledged, encumbered or otherwise
hypothecated in favor of Lenders or Agent Bank on behalf of the Lenders to
secure repayment of the Bank Facilities.

 

“Collateral
Properties”  shall mean collective
reference to the real properties, improvements and associated FF&E which
are pledged and encumbered as Collateral securing repayment of the Bank
Facilities from time to time, which shall consist of the MPI Real Property,
SGLVI Real Property and MTRI Hawaii Real Property, together with any other real
property or interests therein which may be held by Agent Bank from time to time
to secure repayment of the Bank Facilities, including, without limitation, the SDI
Real Property following the Scioto Merger Effective Date.

 

“Commencement
of Construction” shall mean the start of the actual construction of works of
improvement by breaking ground on a Construction Project.

 

“Commercial
Letter(s) of Credit” shall mean a letter or letters of credit issued by L/C
Issuer pursuant to Section 2.14 of the Credit Agreement for the purpose of
assuring payment for goods, equipment or materials supplied to any member of
the Borrower Consolidation.

 

“Commitment
Fee” shall have the meaning ascribed to such term in Section 2.09(b) of this
Credit Agreement.

 

10

 

“Compliance
Certificate” shall mean a compliance certificate as described in Section
5.08(e) which is more particularly described on “Exhibit D”, affixed hereto and
by this reference incorporated herein and made a part hereof.

 

“Construction
Project(s)” shall mean, as the context may require: (i) the PIDI Construction
Project, (ii) the SDI Construction Project, and/or (iii) any other
construction project for which the projected or budgeted cost to complete,
including all Expansion Capital Expenditures, is equal to or in excess of
Fifteen Million Dollars ($15,000,000.00).

 

“Construction
Project Reviews” shall mean, with reference to each of the Construction
Projects, a quarterly review of such Construction Project by Lenders’
Consultant, including, without limitation:

 

(a)                                  a review of each set
of plans and specifications and determination and acceptability of
documentation relating to each applicable Construction Project.

 

(b)                                 site inspections of
the applicable Construction Project to verify:

 

(i)                                     the
percentage of construction completed;

 

(ii)                                  the
applicable Construction Project is in substantial compliance with the
applicable governing construction documentation, ie., plans, specifications,
construction budgets and approved change orders, etc.;

 

(c)                                  A review of budgetary
aspects, including construction cost and project completion analysis on a
monthly basis.

 

“Contingent
Liability(ies)” shall mean, as to any Person any obligation of such Person
guaranteeing or having the economic effect of guaranteeing any Indebtedness,
leases or dividends (“primary obligations”) of any other Person that is not a
Borrower hereunder (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of such Person,
whether or not contingent, (a) to purchase any such primary obligation or
any property constituting direct or indirect security therefor, (b) to
advance or supply funds (i) for the purchase or payment of any such
primary obligation or (ii) to maintain working capital or equity capital
of the primary obligor or otherwise to maintain the net worth or solvency of
the primary obligor, (c) to purchase property, securities or services
primarily for the purpose of assuring the owner of any such primary obligation
of the ability of the primary obligor

 

11

 

to make payment of such primary obligation, (d) to make payment in
respect of any net liability arising in connection with any Interest Rate
Hedges, foreign currency exchange agreement, commodity hedging agreement or any
similar agreement or arrangement in any such case if the purpose or intent of
such agreement is to provide assurance that such primary obligation will be
paid or discharged, or that any agreements relating thereto will be complied
with, or that the holders of such primary obligation will be protected (in
whole or in part) against loss in respect thereof or (e) otherwise to
assure or hold harmless the holder of such primary obligation against loss in
respect thereof; provided, however, that the term Contingent Liability shall
not include endorsements of instruments for deposit or collection in the
ordinary course of business, trade payables incurred in the ordinary course of
business and less than ninety (90) days in arrears.  The amount of any Contingent Liability shall be deemed to be an
amount equal to the stated or determinable amount of the primary obligation in
respect of which such Contingent Liability is made or, if not stated or
determinable, the reasonably anticipated liability in respect thereof (assuming
such Person is required to perform thereunder) as determined by such Person in
good faith.

 

“Continuation/Conversion
Notice” shall mean a notice of continuation of or conversion to a LIBOR Loan
and certificate duly executed by an Authorized Officer, substantially in the
form of that certain exhibit marked “Exhibit C”, affixed hereto and
by this reference incorporated herein and made a part hereof.

 

“Convert,
Conversion and Converted” shall refer to a Borrowing at or continuation of a
particular interest rate basis or conversion of one interest rate basis to
another pursuant to Section 2.05(c).

 

“Credit
Agreement” shall mean this Third Amended and Restated Credit Agreement together
with all Schedules and Exhibits attached thereto, executed by and among
Borrowers and Banks setting forth the terms and conditions of the Credit
Facility, as may be amended, modified, extended, renewed or restated from time
to time.

 

“Credit
Facility” shall mean the agreement of Lenders to fund a secured revolving line
of credit during the Revolving Credit Period subject to the terms and
conditions set forth in this Credit Agreement and the Revolving Credit Note, up
to the Maximum Permitted Balance as may be reduced from time to time in
accordance with the terms of this Credit Agreement and the Revolving Credit
Note.

 

“Credit
Facility Termination” shall mean indefeasible payment in full of all sums owing
under the Bank Facilities and each of the other Loan Documents, the occurrence
of the Stated Expiry Date or other termination of all outstanding Letters of
Credit, and the irrevocable termination of: (i) the obligation of Lenders to
advance Borrowings under the Credit Facility, (ii) the obligation of L/C
Issuer to issue Letters of

 

12

 

Credit under the L/C Facility, and (iii) the obligation of Swingline
Lender to make Swingline Advances under the Swingline Facility.

 

“Deeds of
Trust”  shall mean collective reference to the MPI Deed
of Trust, the SGLVI Deed of Trust and the MTRI Hawaii Mortgage, together with
any other deeds of trust or mortgages which may be executed by a member of the
Borrower Consolidation in favor of Agent Bank from time to time for the purpose
of securing Borrowers’ payment and performance under the Bank Facilities, in
each case as the same may be amended, modified, extended, renewed or restated from
time to time.

 

“Default”
shall mean the occurrence or non-occurrence, as the case may be, of any event
that with the giving of notice or passage of time, or both, would become an
Event of Default.

 

“Default Rate”
shall have the meaning set forth in Section 2.10(b) with respect to defaults
occurring under the Revolving Credit Note and shall mean the Prime Rate plus
the then Applicable Margin plus two percent (2%) per annum for all other
purposes.

 

“Defaulting
Lender” means any Lender which fails or refuses to perform its obligations
under this Credit Agreement within the time period specified for performance of
such obligation or, if no time frame is specified, if such failure or refusal
continues for a period of five (5) Banking Business Days after notice from
Agent Bank.

 

“Designated
Deposit Account” shall mean a deposit account to be maintained by Borrowers
with Agent Bank, as from time to time designated in writing by an Authorized
Officer.

 

“Disposition”
shall have the meaning ascribed to such term in Section 6.11(c).

 

“Dispute”
shall have the meaning set forth in Section 10.14(a).

 

“Distributions”
shall mean and collectively refer to any and all cash dividends on stock,
loans, management fees, payments, advances or other distributions, fees or
compensation of any kind or character whatsoever, other than within the
Borrower Consolidation, but shall not include consideration paid for tangible
and intangible assets in an arms length exchange for fair market value, trade
payments made and other payments for liabilities incurred in the ordinary
course of business or compensation to officers, directors and employees of
Borrowers in the ordinary course of business.

 

“Documents”
shall have the meaning set forth in Section 10.14(a).

 

13

 

“Dollars” and
“$” means the lawful money of the United States of America.

 

“EBITDA” shall
mean with reference to any Person, for any fiscal period under review, the sum
of (i) Net Income for that period, less (ii) any one-time non-Cash gain
reflected in such Net Income, plus (iii) any losses on sales of assets and
other extraordinary losses and one-time non-Cash charges, plus
(iv) Interest Expense (expensed and capitalized) for that period, plus
(v) the aggregate amount of federal and state taxes on or measured by
income for that period (whether or not payable during that period), plus
(vi) depreciation, amortization and all other non-cash expenses for that
period, plus (vii) preopening expenses for that period, in each case determined
in accordance with GAAP and, in the case of items (iii), (iv), (v), (vi) and
(vii), only to the extent deducted in the determination of Net Income for that
period.  For purposes of Financial
Covenants and pricing calculations EBITDA shall (i) not include the results of
SDI for periods prior to the Scioto Merger Effective Date, and (ii) include
only Cash distributions actually funded by an Unrestricted Subsidiary that are
received by the Borrower Consolidation.

 

“ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended from time
to time.

 

“Eligible
Assignee” means (a) another Lender, (b) with respect to any Lender,
any Affiliate of that Lender and (c) any commercial bank having a combined
capital and surplus of Fifty Million Dollars ($50,000,000.00) or more that is
(i) organized under the Laws of the United States of America, any State
thereof or the District of Columbia or (ii) organized under the Laws of
any other country which is a member of the Organization for Economic Cooperation
and Development, or a political subdivision of such a country, provided
that (A) such bank is acting through a branch or agency located in the United
States of America and (B) is otherwise exempt from withholding of tax on
interest and delivers Form 1001 or Form 4224 at the time of any
assignment.

 

“Environmental
Certificate” shall mean the Certificate and Indemnification Regarding Hazardous
Substances to be executed by Borrowers on or before the Closing Date and
delivered to Agent Bank as a further inducement to the Banks to establish the
Bank Facilities, as such certificate may be amended, modified, extended,
renewed or restated from time to time.

 

“Equipment
Leases and Contracts”  shall mean collective reference to the MPI
Equipment Leases and Contracts and SGLVI Equipment Leases and Contracts,
together with any other equipment leases and contracts which may be executed by
a member of the Borrower Consolidation in favor of Agent Bank from time to time
for the purpose of securing Borrowers’ payment and performance under the Bank
Facilities, in

 

14

 

each case as the same may be amended, modified, extended, renewed or
restated from time to time.

 

“Equity
Offering” shall mean the issuance and sale of shares of common voting stock by
MTRI to the public after the Closing Date in exchange for Cash or Cash
Equivalents but shall not include, however, shares of stock utilized in a
stock-for-stock Acquisition or a stock-for-assets Acquisition.

 

“Event of
Default” shall mean any event of default as defined in Section 7.01 hereof.

 

“Excess
Capital Proceeds” shall have the meaning ascribed to such term in
Section 6.11(c) of this Credit Agreement.

 

“Exchange
Senior Unsecured Notes” shall have the meaning ascribed to such term in Recital
Paragraph D.

 

“Existing
Credit Agreement” shall mean that certain Second Amended and Restated Credit
Agreement dated as of June 27, 2002, executed by and among Borrowers and
the lenders therein named.

 

“Existing
Credit Facility” shall mean the revolving line of credit up to the maximum
principal amount of One Hundred Million Dollars ($100,000,000.00) at any time
outstanding, evidenced by the Existing Credit Agreement.

 

“Existing
Security Documents” shall have the meaning ascribed to such term “Security
Documentation” in the Existing Credit Agreement.

 

“Expansion
Capital Expenditures” shall mean collective reference to Capital Expenditures
(a) made or advanced for the construction, development and completion of the
PIDI Construction Project, (b) made or advanced for the construction,
development and completion of the SDI Construction Project, and (c) made
to or for the benefit of or for use in connection with any Hotel/Casino
Facility, any other Construction Project or New Venture which (i) are not for
the purpose of maintaining, repairing or replacing existing assets of the
Borrower Consolidation, (ii) consist of the acquisition, construction or
creation of additional assets and improvements owned by the Borrower
Consolidation, and (iii) are added as Collateral under the Credit Facility
and are encumbered by the Security Documentation, any amendments required by
Agent Bank for such purpose to be at the expense of the Borrower Consolidation.

 

“FF&E”
shall mean reference to the MPI FF&E and SGLVI FF&E and any other
furniture, fixtures and equipment, including, without limitation, all gaming
devices

 

15

 

and associated equipment, inventories and supplies used in connection
with the Hotel/Casino Facilities or any New Venture.

 

“FIRREA” shall
mean the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

 

“Federal Funds
Rate” means, as of any date of determination, the rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication,
published by the Federal Reserve Board (including any such successor,
“H.15(519)”) for such date opposite the caption “Federal Funds
(Effective)”.  If for any relevant date
such rate is not yet published in H.15(519), the rate for such date will be the
rate set forth in the daily statistical release designated as the Composite
3:30 p.m. Quotations for U.S. Government Securities, or any successor
publication, published by the Federal Reserve Bank of New York (including any
successor, the “Composite 3:30 p.m. Quotation”) for such date under the
caption “Federal Funds Effective Rate”. 
If on any relevant date the appropriate rate for such date is not yet
published in either H.15(519) or the Composite 3:30 p.m. Quotations, the
rate for such date will be the arithmetic mean of the rates for the last
transaction in overnight Federal funds arranged prior to 9:00 a.m. (New
York City time) on that date by each of three leading brokers of Federal funds
transactions in New York City selected by the Agent Bank.  For purposes of the Credit Agreement, any
change in the Base Rate due to a change in the Federal Funds Rate shall be
effective as of the opening of business on the effective date of such change.

 

“Fee Side
Letter” shall mean the Confidential Fee Letter dated March 20, 2003,
executed by and between Borrowers and Agent Bank concerning payment of the fees
more particularly therein described.

 

“Financial
Covenants” shall mean collective reference to the financial covenants set forth
in Article VI of this Credit Agreement.

 

“Financing
Statements” shall mean collective reference to the MPI Financing Statements,
SGLVI Financing Statements, SGRI Financing Statements and MTRI Financing
Statements, together with any other financing statements which may be executed
by a member of the Borrower Consolidation in favor of Agent Bank from time to
time for the purpose of securing Borrowers’ payment and performance under the
Bank Facilities, in each case as the same may be amended, modified, extended, renewed
or restated from time to time.

 

“Fiscal
Quarter” shall mean the consecutive three (3) month periods during each Fiscal
Year beginning on January 1, April 1, July 1 and October 1
and ending on March 31, June 30, September 30 and
December 31, respectively.

 

16

 

“Fiscal Year”
shall mean the fiscal year period beginning January 1 of each calendar
year and ending on the following December 31.

 

“Fiscal Year
End” shall mean December 31 of each calendar year.

 

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

 

“Funded
Outstandings” shall mean the unpaid principal amount outstanding on the Credit
Facility as of any given date of determination for Borrowings made thereunder.

 

“Funding Date”
shall mean each date upon which Lenders fund Borrowings requested by Borrowers
in accordance with the provisions of Section 2.03 or at the request of
Agent Bank pursuant to Section 2.08 or 2.14.

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board, or in such other statements by such other entity as
may be in general use by significant segments of the accounting profession,
which are applicable to the circumstances as of the date of determination.

 

“Gaming
Authority(ies)” shall mean any agency, authority, board, bureau, commission,
department, office or instrumentality of any nature whatsoever of the United
States federal or foreign government, any state, province or any city or other
political subdivision or otherwise and whether now or hereafter in existence or
any officer or official thereof, including, without limitation, Nevada Gaming
Authorities and West Virginia Gaming Authorities, with authority to regulate
any gaming operation owned, managed or operated by the Borrower Consolidation.

 

“Gaming Devices”
shall mean slot machines and other devices which constitute gaming devices and
related equipment.

 

“Gaming Laws”
means all statutes, rules, regulations, ordinances, codes and administrative or
judicial precedents pursuant to which any Gaming Authority possesses
regulatory, licensing or permit authority over gambling, gaming or casino
activities conducted by the Borrower Consolidation within its jurisdiction,
including the Nevada Gaming Control Act and the West Virginia Racing Act and
Lottery Act.

 

17

 

“Gaming
Permits” shall mean collective reference to every license, permit or other
authorization required to own, operate and otherwise conduct unrestricted
gaming operations at the Hotel/Casino Facilities or any New Venture.

 

“Government
Securities” means readily marketable (a) direct full faith and credit
obligations of the United States of America or obligations guaranteed by the
full faith and credit of the United States of America and (b) obligations of an
agency or instrumentality of, or corporation owned, controlled or sponsored by,
the United States of America that are generally considered in the securities
industry to be implicit obligations of the United States of America.

 

“Governmental
Authority” or “Governmental Authorities” shall mean any federal, state,
regional, county or municipal governmental agency, board, commission, officer
or official whose consent or approval is required or whose regulations must be
followed as a prerequisite to (i) the continued operation and occupancy of the
Collateral Properties, the Hotel/Casino Facilities or any New Venture, or (ii)
the performance of any act or obligation or the observance of any agreement,
provision or condition of whatever nature herein contained.

 

“Green Shingle
Loan” shall mean the loan made by MTRI to Tecnica in the amount of Two Million
Forty-Five Thousand Six Hundred Fifty-Three Dollars and Sixty-Four Cents
($2,045,653.64), plus closing costs, to finance the purchase of the Green
Shingle Property by Tecnica.

 

“Green Shingle
Loan Agreement” shall mean that certain Loan Agreement, dated March 22,
2002, by and between Tecnica, as borrower, and MTRI, as Lender, setting forth
the terms, conditions and understandings with respect to the Green Shingle
Loan, including, without limitation, provisions that MTRI has the option to
purchase the Green Shingle Property in exchange for the Indebtedness evidenced
by the Green Shingle Loan.

 

“Green Shingle
Loan Documents” shall have the meaning set forth in Section 3.21(c).

 

“Green Shingle
Mortgage” shall mean that certain Mortgage, which was executed by Tecnica, as
mortgagor, for the benefit of MTRI, as mortgagee, and which was recorded in the
Official Records of Erie County, Pennsylvania on March 29, 2002 in Mortgage
Book Volume 0865 at Page 2046, all for the purpose of encumbering the
Green Shingle Property, as a first priority mortgage lien, securing repayment
of the Green Shingle Loan.

 

“Green Shingle
Note” shall mean that certain Promissory Note, which was executed by Tecnica
under date of March 22, 2002, and which is payable to the order of

 

18

 

MTRI in the principal amount of Two Million Forty-Five Thousand Six
Hundred Fifty-Three Dollars and Sixty-Four Cents ($2,045,653.64), as evidence
of Tecnica’s obligation to repay the Green Shingle Loan together with accrued
interest thereon.

 

“Green Shingle
Perfection Items” shall mean collective reference to: (i) an endorsement
of the Green Shingle Note executed by MTRI in favor of Agent Bank; (ii) a
collateral assignment of the Green Shingle Mortgage executed by MTRI in favor
of Agent Bank; (iii) the original stock certificates which are subject to
the Tecnica Stock Pledge; and (iv) such title insurance policies and/or
endorsements regarding the Lien of the Green Shingle Mortgage (or proforma
commitment for the issuance thereof), as may be requested by Agent Bank; all of
which shall be in a form and substance acceptable to Agent Bank.

 

“Green Shingle
Property” shall mean a parcel containing approximately eighty-three (83) acres
encompassing the Green Shingle Restaurant/Motel at 6468 Sterrettania Road and
the Poplar White Thruway Service at 6450 Sterrettania Road in McKean Township,
Erie, Pennsylvania.

 

“Green Shingle
Security Documents” shall mean collective reference to the Green Shingle
Mortgage, Tecnica Stock Pledge and all other documents and instruments securing
repayment of the Green Shingle Loan.

 

“Hawaii Title
Insurance Company” shall mean Title Guaranty of Hawaii, Inc., with offices
located at 235 Queen Street, Honolulu, Hawaii, as the issuing agent for Ticor
Title Insurance Company, together with such reinsurers with direct access as
are requested by Agent Bank or other title insurance company or companies as may
be reasonably acceptable to Agent Bank.

 

“Hazardous
Materials Laws” shall have the meaning set forth in Section 5.20.

 

“Hotel/Casino
Facility” shall mean individual reference and “Hotel/Casino Facilities” shall
mean collective reference to the MPI Hotel/Casino Facilities and the SGLVI
Hotel/Casino Facility, in each case including any future expansions thereof,
related thereto or used in connection therewith, and all appurtenances thereto.

 

“Indebtedness”
of any Person includes all obligations, contingent or otherwise, which in
accordance with GAAP should be classified upon such Person’s balance sheet as
liabilities, but in any event including liabilities for borrowed money or other
liabilities secured by any lien existing on property owned or acquired by such
Person, Affiliate or a Subsidiary thereof (whether or not the liability secured
thereby shall have been assumed), obligations which have been or under GAAP
should be capitalized for financial reporting purposes, and all guaranties,
endorsements, and other

 

19

 

contingent obligations with respect to Indebtedness of others,
including, but not limited to, any obligations to acquire any of such
Indebtedness, to purchase, sell, or furnish property or services primarily for
the purpose of enabling such other Person to make payment of any of such
Indebtedness, or otherwise to assure the owner of any of such Indebtedness
against loss with respect thereto.

 

“Indenture
Trustee” shall mean Wells Fargo Bank Minnesota, National Association.

 

“Initial
Senior Unsecured Notes” shall have the meaning ascribed to such term in Recital
Paragraph D.

 

“Insider Cash
Loans” shall mean collective reference to all loans advanced by any member of
the Borrower Consolidation in Cash to any officer or director of any member of
the Borrower Consolidation, for the purpose of funding taxes payable by such
officers and directors from the purchase and sale of shares of MTRI acquired
through stock options or other employee incentive plans established by the
Borrower Consolidation.

 

“Insider
Non-Cash Loans” shall mean collective reference to loans made by book entry
(and not evidenced by the advance of Cash) to any officer or director of any
member of the Borrower Consolidation for the purpose of exercising stock
options for the acquisition of shares of the stock of MTRI.

 

“Intangibles”
shall mean the aggregate goodwill, trademarks, patents, organizational expense
and other similar intangible items of the Borrower Consolidation determined on
a consolidated basis in accordance with GAAP.

 

“Interest
Expense” shall mean with respect to any Person, as of the last day of any
fiscal period under review, the sum of (i) all interest, fees, charges and
related expenses paid or payable (without duplication but including capitalized
interest) for that fiscal period by such Person to a lender in connection with
borrowed money (including any obligations for fees, charges and related
expenses payable to the issuer of any letter of credit) or the deferred purchase
price of assets that are considered “interest expense” under GAAP, plus
(ii) the portion of the up front costs and expenses for Interest Rate
Hedges (to the extent not included in (i)) fairly allocated to such
interest rate hedges as expenses for such period, plus (iii) the portions
of Capital Lease Liabilities paid or payable with respect to such period that
should be treated as interest in accordance with GAAP.

 

“Interest
Period(s)” shall have the meaning set forth in Section 2.05(d) of the
Credit Agreement.

 

20

 

“Interest Rate
Hedges” shall mean, with respect to any Person, all liabilities of such Person
under interest rate swap agreements, interest rate cap agreements, basis swap,
forward rate agreement and interest collar or floor agreements and all other
agreements or arrangements designed to protect such Person against fluctuations
in interest rates or currency exchange rates.

 

“Interest Rate
Option” shall have the meaning ascribed to such term in Section 2.05(b) of
the Credit Agreement.

 

“Investment”
shall mean, when used in connection with any Person: (i) any investment by
or of that Person, whether by means of purchase or other acquisition of stock
or other securities of any other Person or by means of a loan, advance creating
a debt, capital contribution, guaranty or other debt or equity participation or
interest in any other Person, including any partnership and joint
venture interests of such Person, (ii) any Acquisition, and (iii) any
other item that is or would be classified as an investment on a balance sheet
of such Person prepared in accordance with GAAP, as in effect as of the Closing
Date.  The amount of any Investment
shall be the amount actually invested without adjustment for subsequent increases
or decreases in the value of such Investment.

 

“J&J
Drywall Insurance Coverage” shall mean provisions acceptable to Agent Bank, to
be included in the MPI Title Insurance Policy (by endorsement or otherwise),
providing affirmative coverage against any loss which may be sustained by
reason of the J&J Drywall Lien having priority over the MPI Deed of Trust
(including, without limitation, any cost to the Banks of providing a defense
against the J&J Drywall Lien).

 

“J&J
Drywall Lien” shall mean a reference to the mechanics lien which is
contemplated by that certain notice of mechanic’s lien filed by J&J
Drywall, Inc. and recorded in the Office of the Clerk of the County Court of
Hancock County, West Virginia, on September 24, 2002, in Mechanics Lien
Book E at Page 361, in the amount of One Million Eight Hundred
Seventy-Seven Thousand Six Hundred Twenty Dollars and Sixty Cents
($1,877,620.60).

 

“L/C
Agreement(s)” shall mean collective reference to the Application and Agreement
for Standby Letter of Credit and Application and Agreement for Commercial
Letter of Credit and addendum(s) thereto executed by an Authorized Officer of
Borrowers in favor of L/C Issuer in L/C Issuer’s standard form, setting forth
the terms and conditions upon which L/C Issuer shall issue a Letter(s) of
Credit, as the same may be amended or modified from time to time.

 

“L/C Exposure”
shall mean the aggregate amount which L/C Issuer may be required to fund or is
contingently liable for disbursement under all issued and

 

21

 

outstanding Letter(s) of Credit, which amount shall be determined by
subtracting from the aggregate of the Stated Amount of each such Letter(s) of
Credit, the principal amount of all L/C Reimbursement Obligations which have
accrued and have been fully satisfied as of each date of determination.

 

“L/C Facility”
shall mean the agreement of L/C Issuer to issue Letters of Credit subject to
the terms and conditions and up to the maximum amounts and duration as set
forth in Section 2.14 of the Credit Agreement.

 

“L/C Fee”
shall have the meaning set forth in Section 2.09(c) of the Credit
Agreement.

 

“L/C Issuer”
shall mean WFB in its capacity as the issuer of Letters of Credit under the L/C
Facility following the Closing Date.

 

“L/C
Reimbursement Obligation(s)” shall mean the obligation of Borrowers to
reimburse L/C Issuer for amounts funded or disbursed under a Letter(s) of
Credit, together with accrued interest thereon.

 

“LIBO Rate”
means, relative to any LIBOR Loan Interest Period for any LIBOR Loan included
in any Borrowing, the per annum rate (reserve adjusted as hereinbelow provided)
of interest quoted by Agent Bank, rounded upwards, if necessary, to the nearest
one-sixteenth of one percent (0.0625%) at which Dollar deposits in immediately
available funds are offered by Agent Bank to leading banks in the London
interbank market at approximately 11:00 a.m. London, England time two (2)
Banking Business Days prior to the beginning of such Interest Period, for
delivery on the first day of such Interest Period for a period approximately
equal to such Interest Period and in an amount equal or comparable to the LIBOR
Loan to which such Interest Period relates. 
The foregoing rate of interest shall be reserve adjusted by dividing the
applicable LIBO Rate by a one (1.00) minus the LIBOR Reserve Percentage, with
such quotient to be rounded upward to the nearest whole multiple of
one-hundredth of one percent (0.01%). 
All references in this Credit Agreement or other Loan Documents to a
LIBO Rate include the aforesaid reserve adjustment.

 

“LIBOR Loan”
shall mean each portion of the total unpaid principal under the Credit Facility
which bears interest at a rate determined by reference to the LIBO Rate plus
the Applicable Margin.

 

“LIBOR Reserve
Percentage” means, relative to any Interest Period for LIBOR Loans made by any
Lender, the reserve percentage (expressed as a decimal) equal to the actual
aggregate reserve requirements (including all basic, emergency, supplemental,
marginal and other reserves and taking into account any transactional
adjustments or other scheduled changes in reserve requirements) announced
within

 

22

 

Agent Bank as the reserve percentage applicable to Agent Bank as
specified under regulations issued from time to time by the Federal Reserve
Board.  The LIBOR Reserve Percentage
shall be based on Regulation D of the Federal Reserve Board or other
regulations from time to time in effect concerning reserves for “Eurocurrency
Liabilities” from related institutions as though Agent Bank were in a net
borrowing position.

 

“Laws” means,
collectively, all international, foreign, federal, state and local statutes,
maritime laws, treaties, rules, regulations, ordinances, codes and administrative
or judicial precedents.

 

“Lender Reply
Period” shall have the meaning set forth in Section 9.10(d).

 

“Lenders’
Consultant” shall mean the Affiliate or other representative of Agent Bank to
be engaged by Agent Bank in connection with the Construction Project Reviews.

 

“Lenders”
shall have the meaning set forth in the Preamble to this Credit Agreement.  At all times that there are no Lenders other
than WFB, the terms “Lender” and “Lenders” means WFB in its individual
capacity.  With respect to matters
requiring the consent to or approval of all Lenders at any given time, all then
existing Defaulting Lenders will be disregarded and excluded, and, for voting
purposes only, “all Lenders” shall be deemed to mean “all Lenders other than
Defaulting Lenders”.

 

“Letter(s) of
Credit” shall mean collective reference to the Standby Letter(s) of Credit
and/or Commercial Letters of Credit, as the case may be, issued by L/C Issuer
on behalf of Borrowers, as the same may be extended, renewed or reissued from
time to time.

 

“Leverage
Ratio” as of the end of any Fiscal Quarter shall mean the ratio resulting by
dividing (a) Funded Debt as of the end of the Fiscal Quarter under review by
(b) the sum of EBITDA for the Fiscal Quarter under review plus EBITDA for each
of the most recently ended three (3) preceding Fiscal Quarters.

 

“Liabilities”
shall mean the total liabilities of the Borrower Consolidation in accordance
with GAAP.

 

“Liabilities
and Costs” means all claims, judgments, liabilities, obligations,
responsibilities, losses, damages (including lost profits), punitive or treble
damages, costs, disbursements and expenses (including, without limitation,
reasonable attorneys’, experts’ and consulting fees and costs of investigation
and feasibility studies), fines, penalties and monetary sanctions, interest,
direct or indirect, known or unknown, absolute or contingent, past, present or
future.

 

23

 

“Lien” means
any lien, mortgage, pledge, assignment, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof, and any agreement to give
any security interest) and any option, trust or other preferential arrangement
having the practical effect of any of the foregoing.

 

“Loan
Documents” shall mean collective reference to the Credit Agreement, the
Revolving Credit Note, the Security Documentation, Cash Collateral Pledge
Agreement, the Environmental Certificate and all other documents and instruments
which may hereafter be executed and delivered by or on behalf of Borrowers or
any other Person in connection with the Credit facility for the benefit of
Banks or Agent Bank on behalf of the Lenders, as the same may be amended,
modified, supplemented, replaced, renewed or restated from time to time.

 

“Logan Filly
Parcel” shall mean the real property subject to the Logan Filly Purchase
Agreement which is particularly described on that certain exhibit marked
“Exhibit O” affixed hereto and by this reference incorporated herein and
made a part hereof.

 

“Logan Filly
Parcel Closing” shall mean closing of the sale transaction for MPI’s
acquisition of the Logan Filly Parcel.

 

“Logan Filly
Parcel Permitted Exceptions” shall mean a collective reference to Exceptions
numbered 1 through 7, 9, 11 through 14, 18 and 20 through 24 which are set
forth by that certain Title Insurance Commitment which has been issued by
Chicago Title Insurance Company, with respect to the Logan Filly Parcel, under
Commitment No. A-4893 and dated as of April 13, 1999.

 

“Logan Filly
Purchase Agreement” shall mean that certain Purchase Agreement Filly Parcel,
under date of June 22, 1999, by and between MPI, as purchaser, and the
Logan Group, as seller, pursuant to which, among other things, the Logan Group
agreed to sell the Logan Filly Parcel to MPI in accordance with the terms and
conditions set forth therein.

 

“Logan Group”
shall mean a collective reference to Robert Logan, an individual, Realm, Inc.,
a West Virginia corporation, and Realm Corp., an Ohio corporation.

 

“Logan Loan
Documents” shall mean a collective reference to: (i) the promissory note which
is to be executed by MPI and payable to the order of the Logan Group, in a
principal amount of Three Hundred Eighty-three Thousand Dollars ($383,000.00),
and in the form which is attached to the Logan Primary Purchase

 

24

 

Agreement as “Exhibit E”, as part of the purchase price for the Logan
Primary Parcel; and (ii) a Deed of Trust (Commercial Loan), securing
performance under such promissory note, in the form which has been delivered to
Agent Bank under cover of a letter from Robert Gach, Esq. dated December 14,
1999 and addressed to Henderson & Morgan, LLC; all of which are to be executed
and delivered as of the Logan Primary Parcel Closing in accordance with the
terms and conditions of the Logan Primary Purchase Agreement.

 

“Logan Primary
Parcel” shall mean the real property subject to the Logan Primary Purchase
Agreement which is particularly described on that certain exhibit marked
“Exhibit N” affixed hereto and by this reference incorporated herein and
made a part hereof.

 

“Logan Primary
Parcel Closing” shall mean closing of the sale transaction for MPI’s
acquisition of the Logan Primary Parcel from the Logan Group.

 

“Logan Primary
Parcel Permitted Exceptions” shall mean a collective reference to: (i) the
Logan Loan Documents; and (ii) exceptions 2, 5 through 9, 12, 13, 15 through
24, 26 through 29 and 31, all as set forth on that certain Title Insurance
Commitment which has been issued by Chicago Title Insurance Company, with
respect to the Logan Primary Parcel, under Commitment No. A-4700 and dated as
of September 15, 1998.

 

“Logan Primary
Purchase Agreement” shall mean that certain Purchase Agreement, under date of
June 22, 1999, by and between MPI, as purchaser, and the Logan Group, as
seller, pursuant to which, among other things, the Logan Group agreed to sell
the Logan Primary Parcel to MPI in accordance with the terms and conditions set
forth therein.

 

“Logan
Purchase Agreements” shall mean a collective reference to the Logan Filly
Purchase Agreement and the Logan Primary Purchase Agreement.

 

“MPI” shall
have the meaning ascribed to such term in the Preamble of this Credit Agreement.

 

“MPI
Assignment of Entitlements, Contracts, Rents and Revenues” shall mean the
assignment to be executed by MPI on or before the Closing Date, whereby MPI
presently assigns to Agent Bank in consideration of the Bank Facilities
(reserving a revocable license to retain use and enjoy): (a) all of its
right, title and interest under all MPI Spaceleases and MPI Equipment Leases
and Contracts relating to the MPI Hotel/Casino Facilities, (b) all of its
right, title and interest in and to all permits, licenses and contracts
relating to the MPI Hotel/Casino Facilities, except Gaming Permits and except
those permits, licenses and contracts which are unassignable, and (c) all
rents,

 

25

 

issues, profits, revenues and income from the MPI Real Property, from
the operation of the MPI Hotel/Casino Facilities and from any other business
activity conducted on the MPI Real Property, as such assignment may be amended,
modified, extended, renewed, restated, substituted or replaced from time to
time.

 

“MPI Closing
Instructions” shall mean the closing letter to be given to the MPI Title
Insurance Company, by Agent Bank, on or before the Closing Date setting forth
the requirements for issuance of the MPI Title Insurance Policy and other
conditions for recording the MPI Deed of Trust and the other MPI Security
Documents; all to the reasonable satisfaction of Agent Bank, Lenders and the
Borrowers.

 

“MPI
Collateral” shall mean collective reference to: (i) all of the MPI Real
Property and MPI FF&E and the contract rights, leases, intangibles and
other interests of MPI which are subject to the liens and security interests of
the MPI Security Documents; (ii) all rights of MPI presently assigned
pursuant to the terms of the MPI Security Documents; and (iii) any and all
other property and/or intangible rights, interest or benefits inuring to or in
favor of MPI, which are in any manner assigned, pledged, encumbered or
otherwise hypothecated in favor of Agent Bank on behalf of Lenders to secure
payment of the Bank Facilities.

 

“MPI Deed of
Trust” shall mean the Deed of Trust, Fixture Filing and Security Agreement with
Assignment of Rents to be executed by MPI on or before the Closing Date in
favor of Agent Bank, encumbering the MPI Real Property, MPI FF&E, MPI
Hotel/Casino Facilities and other Collateral described therein, all for the
purpose of securing the Bank Facilities and Borrowers’ payment and performance
under each of the Loan Documents (other than the Environmental Certificate) as
such deed of trust may be amended, modified, extended, renewed, restated,
substituted or replaced from time to time.

 

“MPI Equipment
Leases and Contracts” shall mean the executed leases and purchase contracts
pertaining to the MPI FF&E wherein MPI is the lessee or vendee, as the case
may be, as set forth on that certain schedule marked “Schedule 4.16(A)”,
affixed hereto and by this reference incorporated herein and made a part
hereof.

 

“MPI FF&E”
shall mean the furniture, fixtures and equipment and all gaming equipment and
devices which have been installed or are to be installed and used, owned or
leased by MPI in connection with the operation of the MPI Hotel/Casino
Facilities.

 

“MPI Financing
Statements” shall mean the Uniform Commercial Code financing statements to be
filed in the Office of the Secretary of State of the State of West Virginia and
in the Office of the County Recorder of Hancock County, West

 

26

 

Virginia, in order to perfect the security interest granted to Agent
Bank under the MPI Deed of Trust and under other Security Documentation, all in
accordance with requirements of the West Virginia Uniform Commercial Code, as
such financing statements may be amended, modified, extended, renewed, restated,
substituted or replaced from time to time.

 

“MPI
Hotel/Casino Facilities” shall mean the racetrack, hotel and casino business
and related activities conducted on the MPI Real Property under the common law
trade names of the “Mountaineer Racetrack & Gaming Resort”, “Mountaineer
Lodge” and “Woodview Golf Course”.

 

“MPI Permitted
Encumbrances” shall mean, at any particular time, (i) liens for taxes,
assessments or governmental charges not then due and payable or not then
delinquent, (ii) statutory liens for labor and/or materials and liens for
taxes, assessments or governmental charges the validity of which, in either
instance, are being contested in good faith by Borrowers by appropriate
proceedings, and as provided in Sections 5.03 and 5.10 hereof, respectively,
provided that, Borrowers shall have maintained adequate reserves in accordance
with GAAP for payment of same, (iii) liens incurred or deposits made in
the ordinary course of business in connection with workers’ compensation,
unemployment insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, surety and appeal bonds, bids,
leases, government contracts, trade contracts, performance and return-of-money
bonds and other similar obligations (exclusive of obligations for the payment
of borrowed money); (iv) leases or subleases granted to others (including,
without limitation, any Subsidiary) not interfering in any material respect
with the ordinary conduct of the business of the MPI Hotel/Casino Facilities,
including, without limitation, the MPI Trailer Park Leases, (v) liens
created or contemplated by the MPI Security Documents, (vi) the liens,
encumbrances and restrictions on the MPI Real Property and MPI FF&E which
are shown as exceptions on Schedule B of the MPI Title Insurance Policy,
including, without limitation, the Woodview Loan Documents, (vii) liens
consented to in writing by Agent Bank upon the approval of Requisite Lenders,
(viii) liens of legally valid capital leases and purchase money security
interests for MPI FF&E to the extent permitted by Section 6.09(c),
(ix) each and every easement, restriction, license or right-of-way that
(A) is hereafter granted to any Governmental Authority or public utility
providing services to the MPI Real Property and (B) does not interfere in any
material respect with the MPI Hotel/Casino facilities; (x) judgment liens,
writs, warrants, levies, distraints, attachments and other similar process
which do not constitute an Event of Default; (xi) subsequent to the Logan
Primary Parcel Closing, the Logan Primary Parcel Permitted Exceptions; (xii)
subsequent to the Logan Filly Parcel Closing, the Logan Filly Parcel Permitted
Exceptions; and (xiii) the J&J Drywall Lien, so long as permitted
under Section 5.03.

 

“MPI Real
Property”  shall mean: (i) the real property owned by MPI
which is more particularly described on that certain exhibit marked “Exhibit
K”, affixed hereto

 

27

 

and by this reference incorporated herein and made a part hereof
(excluding any Route 2 Condemnation Easements and Route 2
Condemnation Property which has been acquired by the West Virginia Department
of Transportation pursuant to any MPI Route 2 Condemnations); (ii)
subsequent to occurrence of the Logan Primary Parcel Closing, the Logan Primary
Parcel; and (iii) subsequent to occurrence of the Logan Filly Parcel
Closing, the Logan Filly Parcel.

 

“MPI Route 2
Condemnations” shall mean acquisition, from time to time, of the MPI
Route 2 Condemnation Property (or portions thereof) and the MPI
Route 2 Condemnation Easements (or portions thereof) from MPI by the West
Virginia Department of Transportation for the purpose of facilitating its
expansion of West Virginia State Route 2, pursuant to: (i) condemnation;
or (ii) any transfer in lieu of such condemnation.

 

“MPI
Route 2 Condemnation Easements” shall mean collective reference to
easements, over that portion of the MPI Real Property and for the purposes
which are particularly described by “Exhibit M-2” attached hereto.

 

“MPI Route 2
Condemnation Property” shall mean that portion of the MPI Real Property which
is particularly described by “Exhibit M-1” attached hereto and incorporated by
reference herein.

 

“MPI Security
Documents” shall
mean collective reference to the MPI Deed of Trust, MPI Assignment of
Entitlements, Contracts, Rents and Revenues, the MPI Financing Statements and
all other documents, instruments or agreements which are executed or delivered
by or on behalf of MPI and accepted by Agent Bank, on behalf of Lenders, as
security for payment of the Bank Facilities.

 

“MPI
Spaceleases” shall
mean the executed leases and concession agreements pertaining to the MPI
Hotel/Casino Facilities, or any portion thereof, wherein MPI is the lessor, as
set forth on that certain schedule marked “Schedule 4.15(A)”, affixed
hereto and by this reference incorporated herein and made a part hereof.

 

“MPI Title
Insurance Company”  shall mean Commonwealth Land Title Insurance
Company, with offices located at 300 Bilmar Drive, Suite 150 in
Pittsburgh, Pennsylvania, together with such reinsurers with direct access as
are requested by Agent Bank or other title insurance company or companies as
may be reasonably acceptable to Agent Bank.

 

“MPI Title
Insurance Policy” shall mean the ALTA Extended Coverage Lenders Policy of Title
Insurance which is to be issued by the MPI Title Insurance Company, as of the
Closing Date, in the aggregate amount of Fifty Million Dollars

 

28

 

($50,000,000.00), in favor of Agent Bank, insuring the MPI Deed of
Trust as a first priority Lien encumbering the MPI Real Property; subject only
to the exceptions shown on Schedule B, Part One thereof, together with
such endorsements thereto as are required by Agent Bank (including, without
limitation, a tie-in endorsement with respect to the SGLVI Title Insurance
Policy), all in accordance with the MPI Closing Instructions.

 

“MPI Trailer
Park Leases”  shall mean collective reference to the leases of
trailer spaces at Mountaineer Mobile City which are more particularly described
on Schedule 4.15(A).

 

“MTRI”  shall have the
meaning ascribed to such term in the Preamble of this Credit Agreement.

 

“MTRI
Collateral” shall mean collective reference to: (i) all of the MTRI Hawaii
Real Property, the Green Shingle Loan Documents and the contract rights,
leases, intangibles and other interests of MTRI which are subject to the liens
and security interests of the MTRI Security Documents; (ii) all rights of
MTRI presently assigned pursuant to the terms of the MTRI Security Documents;
and (iii) any and all other property and/or intangible rights, interest or
benefits inuring to or in favor of MTRI, which are in any manner assigned,
pledged, encumbered or otherwise hypothecated in favor of Agent Bank on behalf
of Lenders to secure payment of the Bank Facilities.

 

“MTRI
Financing Statements” shall mean the Uniform Commercial Code financing
statement to be filed in the Office of the Secretary of State of the State of
Delaware in order to perfect the security interest granted to Agent Bank under
the MTRI Security Agreement and under other Security Documentation, all in
accordance with requirements of the Delaware Uniform Commercial Code, as such
financing statement may be amended, modified, extended, renewed, restated,
substituted or replaced from time to time.

 

“MTRI Hawaii
Closing Instructions” shall mean the closing letter to be given to the Hawaii
Title Insurance Company, by Agent Bank, on or before the Closing Date setting
forth the requirements for issuance of the MTRI Hawaii Title Insurance Policy
and other conditions for recording of the MTRI Hawaii Mortgage; all to the
reasonable satisfaction of Agent Bank, Lenders and the Borrowers.

 

“MTRI Hawaii
Mortgage” shall mean the Mortgage to be executed by MTRI on or before the
Closing Date in favor of Agent Bank, encumbering the MTRI Hawaii Real Property,
all for the purpose of securing the Bank Facilities and Borrowers’ payment and
performance under each of the Loan Documents as such Mortgage may be amended,
modified, extended, renewed, restated, substituted or replaced from time to
time.

 

29

 

“MTRI Hawaii
Real Property” shall mean a condominium leasehold estate in the residential
condominium unit commonly referred to as Apartment No. 2101 of the Foster
Tower Condominium Project in Honolulu, Hawaii.

 

“MTRI Hawaii
Title Insurance Policy” shall mean the ALTA Extended Coverage Lenders Policy of
Title Insurance which is to be issued by the Hawaii Title Insurance Company, as
of the Closing Date, in the aggregate amount of Two Hundred Fifty Thousand
Dollars ($250,000.00), in favor of Agent Bank, insuring the MTRI Hawaii
Mortgage as a first priority Lien encumbering the condominium lessee’s interest
in the MTRI Hawaii Real Property; subject only to the exceptions shown on
Schedule B, Part One thereof, together with such endorsements thereto as
are required by Agent Bank, all in accordance with the MTRI Hawaii Closing
Instructions.

 

“MTRI
Permitted Encumbrances”  shall mean, at any particular time, (i)
liens for taxes, assessments or governmental charges not then due and payable
or not then delinquent, (ii) statutory liens for labor and/or materials and
liens for taxes, assessments or governmental charges the validity of which, in
either instance, are being contested in good faith by Borrowers by appropriate
proceedings, and as provided in Sections 5.03 and 5.10 hereof,
respectively, provided that, Borrowers shall have maintained adequate reserves in
accordance with GAAP for payment of same, (iii) liens incurred or deposits
made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, government contracts, trade contracts, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money); (iv) liens created or contemplated by
the MTRI Security Documents; (v) the liens, encumbrances and restrictions on
the MTRI Hawaii Real Property and existing improvements which are shown as
exceptions on Schedule B of the MTRI Hawaii Title Insurance Policy; (vi) liens
consented to in writing by Agent Bank upon the approval of Requisite Lenders,
(vii) liens of legally valid capital leases and purchase money security
interests for FF&E to the extent permitted by Section 6.09(c); and
(viii) judgment liens, writs, warrants, levies, distraints, attachments and
other similar process which do not constitute an Event of Default.

 

“MTRI Security
Agreement” shall mean the Security Agreement to be executed by MTRI, as debtor,
on or before the Closing Date, pursuant to which, among other things, MTRI
grants a blanket security interest to Agent Bank in and to all personal
property of MTRI (including, without limitation, all right, title and interest
of MTRI in, and to, the Green Shingle Loan Documents), all as security for
payment and performance under the Bank Facilities, as such Security Agreement
may be renewed, extended, amended, restated, replaced, substituted or otherwise
modified from time to time.

 

30

 

“MTRI Security
Documents” shall mean collective reference to the Stock Pledges, the MTRI
Security Agreement, the Green Shingle Perfection Items, the MTRI Hawaii
Mortgage, the MTRI Financing Statements and all other documents, instruments or
agreements which are executed or delivered by or on behalf of MTRI, and
accepted by Agent Bank, on behalf of the Lenders, as security for payment of
the Bank Facilities.

 

“Maintenance
Capital Expenditures” shall mean collective reference to Capital Expenditures
made to or for the benefit of or for use in connection with the Hotel/Casino
Facilities or any New Venture which are for the purpose of maintaining,
repairing and/or replacing existing assets of the Borrower Consolidation.

 

“Mandatory
Commitment Reduction(s)” shall mean a permanent reduction of the Aggregate
Commitment which shall be made from time to time as may be required under
Sections 5.12, 5.26, 6.11(c), 6.12(b) and/or 8.02.

 

“Margin Stock”
shall have the meaning provided in Regulation U of the Board of Governors of
the Federal Reserve System.

 

“Material
Adverse Change” shall mean: (i) any set of circumstances of events which, other
than with respect to the Representations and Warranties set forth in Article IV
of the Credit Agreement which shall be construed to be applicable to
circumstances and events existing both as of the Closing Date (or such earlier
date as may be referenced in each particular provision) and subsequent to the
Closing Date, are not in existence as of the Closing Date, which are material
and adverse to (a) the Collateral or (b) the condition (financial or
otherwise) or business operations of the Borrower Consolidation taken as a
whole, or (c) the ability of any of the Lenders to enforce any of their
material rights or remedies under any of the Loan Documents, or (ii) any
events or changes, which, other than with respect to the Representations and
Warranties set forth in Article IV of the Credit Agreement which shall be
construed to be applicable to events and changes existing both as of the
Closing Date (or such earlier date as may be referenced in each particular
provision) and subsequent to the Closing Date, are not in existence as of the
Closing Date and which have or result in a material adverse effect upon
(a) the value of the Hotel/Casino Facilities taken as a whole or the priority
of the security interests granted to Agent Bank, (b) the validity of any
of the Loan Documents, or (c) the use, occupancy or operation of the
Hotel/Casino Facilities taken as a whole.

 

“Maturity
Date” shall mean April 1, 2008.

 

“Maximum
Availability” shall mean the Maximum Permitted Balance less the Aggregate
Outstandings.

 

31

 

“Maximum
Maintenance Cap Ex Limit” shall have the meaning ascribed to such term in
Section 6.06(a) of the Credit Agreement.

 

“Maximum
Permitted Balance” shall mean the maximum amount of principal which may be
outstanding on the Credit Facility from time to time, which shall be the amount
of the Aggregate Commitment as may be reduced from time to time by:
(i) Voluntary Permanent Reductions and (ii) Mandatory Commitment
Reductions.

 

“Minimum
Maintenance Cap Ex Requirement” shall have the meaning ascribed to such term in
Section 6.06(a) of the Credit Agreement.

 

“Net Income”
shall mean with respect to the Borrower Consolidation for any fiscal period,
the net income of the Borrower Consolidation (determined without regard to any
Insider Non-Cash Loans, until such Insider Non-Cash Loans have been repaid)
during such fiscal period determined in accordance with GAAP.

 

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

 

“Nevada Gaming
Authorities” shall mean, without limitation, the Nevada Gaming Commission and
the State Gaming Control Board and any other applicable governmental or
administrative state or local agency involved in the regulation of gaming and
gaming activities conducted by the Borrower Consolidation in the State of
Nevada.

 

“New
Acquisition Certifications” shall mean the requirements and certifications to
be made by Borrowers concurrently with the Acquisition of any real property to
be added as Collateral under the Bank Facilities, consisting of each of the
following (a) evidence that such additional real property and improvements
located thereon, if any, are protected by insurance coverages as required for
Collateral under Section 5.09, (b) certification that such additional
real property is not within an area

 

32

 

designated as a one hundred (100) year flood zone, and (c) a
Phase I Environmental Site Assessment prepared in conformance with the
scope and limitations of ASTM Standard Designation E 1527-93, approved by
Agent Bank, with any recommended action stated therein having been completed by
Borrowers.

 

“New Venture”
means collective reference to: (a) the SDI Facility upon consummation of
the Merger, (b) the acquisition of land for the PIDI Facility, and
(c) each other casino, hotel, casino/hotel, resort, casino/resort,
riverboat casino, dock casino, dog or horse racing business, entertainment
center or similar facility (or any site or proposed site for any of the
foregoing or entity that provides management or other services or goods to any
of the foregoing) owned in whole by any member of the Borrower Consolidation
(including each Restricted Subsidiary created in accordance with
Section 5.27).

 

“New Venture
Investment” shall mean any Investment made by the Borrower Consolidation in or
to any New Venture, but shall not include the Expansion Capital Expenditures to
the extent permitted under Section 6.06(b).

 

“New Venture
Investments” shall mean collective reference to each and every New Venture
Investment.

 

“Non Pro Rata
Borrowing” means a Borrowing with respect to which fewer than all Lenders have
funded their respective Pro Rata Shares of such Borrowing and the failure of
the non-funding Lender or Lenders to fund its or their respective Pro Rata
Shares of such Borrowing constitutes a breach of this Credit Agreement.

 

“Notes” shall
mean collective reference to the Revolving Credit Note and the Swingline Note.

 

“Notice of
Borrowing” shall have the meaning set forth in Section 2.03.

 

“Notice of
Swingline Advance” shall have the meaning set forth in Section 2.08(b).

 

“Obligations”
means, from time to time, all Indebtedness of Borrowers owing to Agent Bank, any
Lender or any Person entitled to indemnification pursuant to Section 5.14,
or any of their respective successors, transferees or assigns, of every type
and description, whether or not evidenced by any note, guaranty or other
instrument, arising under or in connection with this Credit Agreement, any
other Loan Document or any Interest Rate Hedge, whether or not for the payment
of money, whether direct or indirect (including those acquired by assignment),
absolute or contingent, due or to become due, now existing or hereafter arising
and however acquired.  The term
includes, without limitation, all interest, charges, expenses, fees,

 

33

 

reasonable attorneys’ fees and disbursements, reasonable fees and
disbursements of expert witnesses and other consultants, and any other sum now
or hereinafter chargeable to Borrowers under or in connection with Credit
Agreement or any other Loan Document. 
Notwithstanding the foregoing definition of “Obligations”, Borrowers’ obligations
under any environmental indemnity agreement constituting a Loan Document, or
any environmental representation, warranty, covenant, indemnity or similar
provision in this Credit Agreement or any other Loan Document, shall be secured
by the Collateral only to the extent, if any, specifically provided in the
Security Documentation.

 

“PIDI” shall
have the meaning ascribed to such term in the Preamble of this Credit
Agreement.

 

“PIDI
Construction Project” shall mean the project, as may be proposed by Borrowers,
for the construction and development of the PIDI Facility in accordance with
plans and specifications and budget analysis to be provided to Agent Bank and
Lenders’ Consultant in accordance with Section 5.30.

 

“PIDI
Facility” shall mean the real property, improvements and appurtenances which
are acquired by PIDI or any member of the Borrower Consolidation in Erie,
Pennsylvania, including, without limitation, the Green Shingle Property, if so
acquired, for the purpose of constructing a new thoroughbred horse race track
to be known as “Presque Isle Downs”, including, without limitation, if certain
legislation legalizing slot machines at race tracks is passed in Pennsylvania,
casino and gaming facilities and related appurtenances.

 

“PIDI Options”
shall mean a collective reference to those option agreements which are
particularly described by Exhibit S attached hereto and incorporated by
reference herein pursuant to which PIDI is the optionee of various parcels of
real property located in Erie County, Pennsylvania, with an aggregate area of
approximately 268 acres.

 

“PIDI Real
Property” shall mean the real property which is subject to the PIDI Options.

 

“Pension Plan”
means any “employee pension benefit plan” (other than a “multi-employer plan”
as defined in Title IV of ERISA which is maintained by any Person which is not
a member of the Borrower Consolidation) that is subject to Title IV of ERISA
and which is maintained for employees of Borrowers or any of its ERISA
Affiliates.

 

34

 

“Permitted
Encumbrances” shall mean collective reference to the MPI Permitted
Encumbrances, SGLVI Permitted Encumbrances, the MTRI Permitted Encumbrances and
the Restricted Subsidiary Permitted Encumbrances.

 

“Person” means
an individual, firm, corporation, limited liability company, trust,
association, partnership, joint venture, tribunal or other entity.

 

“Policies of
Insurance” shall mean the insurance to be obtained and maintained by Borrowers
throughout the term of this Credit Agreement as provided by Section 5.09
herein.

 

“Post
Foreclosure Plan” shall have the meaning set forth in Section 9.11(e).

 

“Pricing
Certificate” shall have the meaning set forth in Section 5.08(b).

 

“Prime Rate”
means at any time, and from time to time, the rate of interest most recently
announced within WFB at its principal office in San Francisco, California, as
its “Prime Rate”, with the understanding that WFB’s “Prime Rate” is one of its
base rates and serves as the basis upon which effective rates of interest are
calculated for those loans and extensions of credit making reference thereto,
and is evidenced by the recording thereof after its announcement in such
internal publication or publications as WFB may designate.  Each change in the Prime Rate shall be
effective on the day the change is announced within WFB.

 

“Principal
Prepayments” shall have the meaning set forth in Section 2.07(a) of this
Credit Agreement.

 

“Pro Rata
Share” shall mean, with respect to any Lender, a percentage equal to such
Lender’s Syndication Interest in the Credit Facility as set forth on the
Schedule of Lenders’ Proportions in Credit Facility.

 

“Protective
Advance” means all sums expended as determined by Agent Bank to be necessary
to: (a) protect the priority, validity and enforceability of the Security
Documentation on, and security interests in, any Collateral and the instruments
evidencing or securing the Obligations, or (b) prevent the value of any
Collateral from being materially diminished (assuming the lack of such a
payment within the necessary time frame could potentially cause such Collateral
to lose value), or (c) protect any of the Collateral from being materially
damaged, impaired, mismanaged or taken, including, without limitation, any
amounts expended in accordance with Section 10.20 or post-foreclosure
ownership, maintenance, operation or marketing of any Collateral.

 

35

 

“Qualified
Appraisal” shall mean reference to an appraisal or appraisals of the Hotel/Casino
Facilities and Collateral, or any portion thereof, acceptable to Agent Bank,
prepared at Borrowers’ expense in compliance with FIRREA by an appraiser
acceptable to Agent Bank, with sufficient copies delivered to Agent Bank for
distribution to each of the Lenders.

 

“RAI” shall
have the meaning ascribed to such term in the Preamble of the Credit Agreement.

 

“RRLLC” shall
mean collective reference to R R LLC, a Nevada limited liability company,
Martin R. Giudici and Kristi B. Giudici, husband and wife, and Quantum
Investments, a Nevada limited liability company.

 

“RRLLC Deed of
Trust” shall mean the Deed of Trust with Assignment of Leases and Rents,
Security Agreement and Fixture Filing dated as of March 10, 2003, executed
by RRLLC, as trustor, to First American Title Company of Nevada, as trustee,
for the benefit of SGRI, as beneficiary and secured party, recorded on
March 11, 2003, in the Official Records of Washoe County, Nevada, as
Document No. 2818895.

 

“RRLLC
Guarantys” shall mean collective reference to the respective Personal Guarantys
guarantying the full payment and performance of all present and future
indebtedness and obligations under the RRLLC Note and RRLLC Deed of Trust
executed by Leland F. Hernandez, Michael E. Benjamin, Martin R. Giudici and
Kristi B. Giudici, respectively.

 

“RRLLC Note”
shall mean the Promissory Note Secured by Deed of Trust dated as of
March 11, 2003, in the principal sum of Two Million One Hundred Sixty-Two
Thousand Five Hundred Dollars ($2,162,500.00), executed by RRLLC, payable to
the order of SGRI.

 

“Rate
Adjustment Date” shall mean June 1, 2003.

 

“Regulatory
Redemption” shall have the meaning ascribed to the term “Required Regulatory
Redemption” in Section 3.9 of the Senior Unsecured Indenture.

 

“Related
Entities” shall mean collective reference to all stockholders, employees,
Affiliates and Subsidiaries of the Borrowers, or any of them, other than
another Borrower.

 

“Replacement
Note(s)” shall have the meaning set forth in Section 2.06(i) of the Credit
Agreement.

 

36

 

“Reportable
Event” shall mean any of the events described in Section 4043(b) of ERISA,
other than an event for which the thirty (30) day notice requirement is waived
by regulations.

 

“Requisite
Lenders” means, as of any date of determination prior to the occurrence of an
Event of Default, Lenders holding Syndication Interests equal to or in excess
of seventy-five percent (75.0%) of the Credit Facility; and at all times during
which an Event of Default has occurred and remains continuing, Lenders holding
a percentage equal to or in excess of seventy-five percent (75%) of the Funded
Outstandings; provided  that, (i) in determining such percentage
at any given time, all then existing Defaulting Lenders will be disregarded and
excluded and the Pro Rata Shares of Lenders shall be redetermined, for voting
purposes only, to exclude the Pro Rata Shares of such Defaulting Lenders, and
(ii) notwithstanding the foregoing, at all times when two or more Lenders
are party to this Credit Agreement, the term Requisite Lenders shall in no
event mean less than two (2) Lenders.

 

“Restricted
Subsidiary” shall mean a wholly owned Subsidiary of MTRI (other than MPI,
SGLVI, SGRI, PIDI and RAI) which: (a) has not incurred any Indebtedness
other than in connection with a Subsidiary Guaranty, guaranties issued in
connection with the Senior Unsecured Notes, and accrued expenses, tax
liability, deferred taxes and trade accounts payable less than ninety (90) days
past due and other accrued or deferred liabilities incurred in the ordinary
course of business, (b) is not subject to any Liens except Restricted
Subsidiary Permitted Encumbrances and in connection with a Restricted
Subsidiary Stock Pledge, (c) has executed and delivered to Agent Bank a
Subsidiary Guaranty and has executed and delivered to Agent Bank such security
instruments, mortgages, ship mortgages and other documents as Agent Bank may
reasonably require for the purpose of adding its assets, real and personal, as
additional Collateral securing repayment of the Bank Facilities and the
Subsidiary Guaranty, (d) all of the stock or other evidence of ownership
thereof has been pledged in favor of Agent Bank by a Restricted Subsidiary
Security Agreement, and (e) has been designated by MTRI to be a Restricted
Subsidiary by written notice thereof to Agent Bank, subject to MTRI’s right to
redesignate such New Venture Subsidiary as an Unrestricted Subsidiary by
written notice thereof to Agent Bank so long as: (i) no Default or Event
of Default has occurred and remains continuing, and (ii) giving effect to
such redesignation as of the end of the most recently ended Fiscal Quarter on a
pro forma basis, no Default or Event of Default would exist under the Financial
Covenants.

 

“Restricted
Subsidiary Permitted Encumbrances” shall mean, at any particular time with
respect to a Restricted Subsidiary, (i) Liens for taxes, assessments or
governmental charges not then due, payable and delinquent, (ii) statutory Liens
for labor or materials or liens for taxes, assessments or governmental charges
not then required to be paid pursuant to Section 5.10, (iii) Liens in
favor of Agent Bank or any Lender created or contemplated by the Security
Documentation, (iv) Liens consented to

 

37

 

in writing by Agent Bank upon the approval of Requisite Lenders,
(v) Liens of legally valid capital leases and purchase money security
interests for acquired FF&E up to the maximum amount permitted under
Section 6.09(c), and only to the extent of the lesser of the purchase
money loan or the fair market value of the acquired FF&E at the time of the
acquisition thereof, (vi) Liens of legally valid leases for FF&E,
(vii) easements, licenses or rights-of-way, now existing or hereafter granted
to any Governmental Authority or public utility providing services to the
Restricted Subsidiary or Restricted Subsidiary Venture, (viii) judgment and
attachment Liens which do not constitute an Event of Default,
(ix) statutory Liens of landlords and Liens of carriers, warehousemen,
mechanics, customs and revenue authorities and materialmen and other similar
Liens imposed by law incurred in the ordinary course of business which could
not reasonably be expected to cause a Material Adverse Change and which are
discharged in accordance with Section 5.04, (x) Liens incurred or
deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, government contracts, trade contracts, performance and
return-of-money bonds and other similar obligations; (xi) leases or
subleases granted to others not interfering in any material respect with the
ordinary conduct of the business of such Restricted Subsidiary; (xii) the
replacement or renewal of any Lien otherwise permitted hereunder;
(xiii) minor defects, encroachments or irregularities in title not
interfering in any material respect with the ordinary conduct of the business
of such Restricted Subsidiary; and (xiv) Liens in existence at the time of
acquisition or designation of any Restricted Subsidiary, so long as such Lien
is not created or perfected in contemplation of such acquisition or
designation.

 

“Restricted
Subsidiary Stock Pledge” shall mean the Security Agreement and Pledge Agreement
in substantially the form of the Stock Pledges, and in any case to the
reasonable satisfaction of Agent Bank, to be executed by MTRI in favor of Agent
Bank on behalf of the Banks for the purpose of pledging and granting a security
interest in the capital stock and other interests which it may have in any
Restricted Subsidiary, as it may be amended, modified, supplemented, extended,
renewed or restated from time to time.

 

“Restricted
Subsidiary Venture” shall mean a New Venture wholly owned by a Restricted
Subsidiary.

 

“Revolving
Credit Note” shall mean the Revolving Credit Note, a copy of which is marked
“Exhibit A”, affixed hereto and by this reference incorporated herein and
made a part hereof, to be executed by Borrowers on the Closing Date, payable to
the order of Agent Bank on behalf of the Lenders, evidencing the Credit
Facility, as may be amended, modified, extended, renewed or restated from time
to time.

 

38

 

“Revolving
Credit Period” shall mean the period commencing on the Closing Date and
terminating on the Maturity Date.

 

“SDI” shall
mean Scioto Downs, Inc., an Ohio corporation.

 

“SDI Construction
Project” shall mean the expansion project, as may be proposed by Borrowers, for
the construction and development of additional improvements at the SDI Facility
following the Scioto Merger Effective Date, including, without limitation,
potential casino gaming if permitted under Law, in accordance with plans and
specifications and budget analysis to be provided to Agent Bank and Lenders’
Consultant in accordance with Section 5.30.

 

“SDI Facility”
shall mean the real property, improvements and appurtenances located in
Columbus, Ohio, owned by SDI, on which SDI owns and operates a harness horse
racing facility with pari mutual wagering known as “Scioto Downs”.

 

“SEC” shall
mean Securities and Exchange Commission.

 

“SGLVI” shall
have the meaning ascribed to such term in the Preamble of this Credit
Agreement.

 

“SGLVI
Assignment of Entitlements, Contracts, Rents and Revenues” shall mean the
assignment to be executed by SGLVI on or before the Closing Date, whereby SGLVI
presently assigns to Agent Bank in consideration of the Bank Facilities
(reserving a revocable license to retain use and enjoy): (a) all of its
right, title and interest under all SGLVI Spaceleases and SGLVI Equipment
Leases and Contracts relating to the SGLVI Hotel/Casino Facility, (b) all
of its right, title and interest in and to all permits, licenses and contracts
relating to the SGLVI Hotel/Casino Facility, except Gaming Permits and except
those permits, licenses and contracts which are unassignable, and (c) all
rents, issues, profits, revenues and income from the SGLVI Real Property, from
the operation of the SGLVI Hotel/Casino Facility and from any other business
activity conducted on the SGLVI Real Property, as such assignment may be
amended, modified, extended, renewed, restated, substituted or replaced from
time to time.

 

“SGLVI Closing
Instructions” shall mean the closing letter to be given to the SGLVI Title
Insurance Company, by Agent Bank, on or before the Closing Date setting forth
the requirements for issuance of the SGLVI Title Insurance Policy and other
conditions for recording the SGLVI Deed of Trust and the other SGLVI Security
Documents; all to the reasonable satisfaction of Agent Bank, Lenders and the
Borrowers.

 

39

 

“SGLVI Collateral”
shall mean collective reference to: (i) all of the SGLVI Real Property,
SGLVI FF&E, and the contract rights, leases, intangibles and other
interests of SGLVI, which are subject to the liens and security interests of
the SGLVI Security Documents; (ii) all rights of SGLVI presently assigned
pursuant to the terms of the SGLVI Security Documents; and (iii) any and
all other property and/or intangible rights, interest or benefits inuring to or
in favor of SGLVI, which are in any manner assigned, pledged, encumbered or
otherwise hypothecated in favor of Agent Bank on behalf of Lenders to secure
payment of the Bank Facilities.

 

“SGLVI Deed of
Trust” shall mean the Deed of Trust, Fixture Filing and Security Agreement with
Assignment of Rents to be executed by SGLVI on or before the Closing Date in
favor of Agent Bank, encumbering the SGLVI Real Property, SGLVI FF&E, SGLVI
Hotel/Casino Facility and other Collateral described therein, all for the
purpose of securing the Bank Facilities and Borrowers’ payment and performance
under each of the Loan Documents (other than the Environmental Certificate) as
such deed of trust may be amended, modified, extended, renewed, restated,
substituted or replaced from time to time.

 

“SGLVI
Equipment Leases and Contracts” shall mean the executed leases and purchase
contracts pertaining to the SGLVI FF&E wherein SGLVI is the lessee or
vendee, as the case may be, as set forth on that certain schedule marked
“Schedule 4.16(B)”, affixed hereto and by this reference incorporated herein
and made a part hereof.

 

“SGLVI
FF&E” shall mean the furniture, fixtures and equipment and all gaming
equipment and devices which have been installed or are to be installed and
used, owned or leased by SGLVI in connection with the operation of the SGLVI
Hotel/Casino Facility.

 

“SGLVI
Financing Statements” shall mean the Uniform Commercial Code financing
statements to be filed in the Office of the Secretary of State of the State of
Nevada and in the Office of the County Recorder of Clark County, Nevada, in
order to perfect the security interest granted to Agent Bank under the SGLVI
Deed of Trust and under other Security Documentation, all in accordance with
requirements of the Nevada Uniform Commercial Code, as such financing
statements may be amended, modified, extended, renewed, restated, substituted
or replaced from time to time.

 

“SGLVI
Hotel/Casino Facility” shall mean the improvements and the hotel and casino
business and related activities conducted on the SGLVI Real Property under the
trade name of Ramada Inn and Speedway Casino.

 

“SGLVI
Permitted Encumbrances” shall mean, at any particular time, (i) liens for
taxes, assessments or governmental charges not then due and payable or not

 

40

 

then delinquent, (ii) statutory liens for labor and/or materials and
liens for taxes, assessments or governmental charges the validity of which, in
either instance, are being contested in good faith by Borrowers by appropriate
proceedings, and as provided in Sections 5.03 and 5.10 hereof,
respectively, provided that, Borrowers shall have maintained adequate reserves
in accordance with GAAP for payment of same, (iii) liens incurred or
deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other types of social security, or to
secure the performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, government contracts, trade contracts, performance and
return-of-money bonds and other similar obligations (exclusive of obligations
for the payment of borrowed money); (iv) leases or subleases granted to others
(including, without limitation, any Subsidiary) not interfering in any material
respect with the ordinary conduct of the business of the SGLVI Hotel/Casino
Facility; (v) liens created or contemplated by the SGLVI Security
Documents, (vi) the liens, encumbrances and restrictions on the SGLVI Real
Property, SGLVI FF&E and existing improvements which are shown as
exceptions on Schedule B of the SGLVI Title Insurance Policy,
(vii) liens consented to in writing by Agent Bank upon the approval of
Requisite Lenders, (viii) liens of legally valid capital leases and purchase
money security interests for SGLVI FF&E to the extent permitted by Section 6.09(c),
and (ix) each and every easement, license, restriction or right-of-way that (A)
is hereafter granted to any Governmental Authority or public utility providing
services to the SGLVI Real Property and (B) does not interfere in any material
respect with the SGLVI Hotel/Casino Facility; and (x) judgment liens,
writs, warrants, levies, distraints, attachments and other similar process
which do not constitute an Event of Default.

 

“SGLVI Real
Property” shall mean the real property owned by SGLVI which is more
particularly described on that certain exhibit marked “Exhibit L”, affixed
hereto and by this reference incorporated herein and made a part hereof.

 

“SGLVI
Security Documents” shall mean collective reference to the SGLVI Deed of Trust,
SGLVI Assignment of Entitlements, Contracts, Rents and Revenues, the SGLVI
Financing Statements and all other documents, instruments or agreements which
are executed or delivered by or on behalf of SGLVI, and accepted by Agent Bank,
on behalf of the Lenders, as security for payment of the Bank Facilities.

 

“SGLVI
Spaceleases” shall mean the executed leases and concession agreements
pertaining to the SGLVI Hotel/Casino Facility, or any portion thereof, wherein
SGLVI is the lessor, as set forth on that certain schedule marked
“Schedule 4.15(B)”, affixed hereto and by this reference incorporated
herein and made a part hereof.

 

“SGLVI Title
Insurance Company” shall mean Nevada Title Company, with offices located at
2500 North Buffalo Drive, Suite 150, Las Vegas, Nevada, as the

 

41

 

issuing agent for Commonwealth Land Title Insurance Company, together
with such reinsurers with direct access as are requested by Agent Bank or other
title insurance company or companies as may be reasonably acceptable to Agent
Bank.

 

“SGLVI Title
Insurance Policy” shall mean the ALTA Extended Coverage Lenders Policy of Title
Insurance which is to be issued by the SGLVI Title Insurance Company, as of the
Closing Date, in the aggregate amount of Six Million Dollars ($6,000,000.00) in
favor of Agent Bank, insuring the SGLVI Deed of Trust as a first priority Lien
encumbering the SGLVI Real Property; subject only to the exceptions shown on
Schedule B, Part One thereof, together with such endorsements thereto as
are required by Agent Bank (including, without limitation, a tie-in endorsement
with respect to the MPI Title Insurance Policy), all in accordance with the
SGLVI Closing Instructions.

 

“SGRI” shall
have the meaning ascribed to such term in the Preamble of this Credit
Agreement.

 

“SGRI
Collateral” shall mean collective reference to: (i) SGRI Loan Documents
and other interests of SGRI which are subject to the liens and security
interests of the SGRI Security Documents; (ii) all rights of SGRI
presently assigned and/or pledged pursuant to the terms of the SGRI Security
Documents; and (iii) any and all other property and/or intangible rights,
interest or benefits inuring to or in favor of SGRI, which are in any manner
assigned, pledged, encumbered or otherwise hypothecated in favor of Agent Bank
on behalf of Lenders to secure payment of the Bank Facilities.

 

“SGRI Loan
Documents” shall mean collective reference to the RRLLC Note, RRLLC Deed of
Trust and RRLLC Guarantys.

 

“SGRI Security
Documents” shall mean collective reference to (i) the Security Agreement
and Pledge of Secured Promissory Note dated as of March 11, 2003, as
amended by First Amendment to Security Agreement and Pledge of Secured
Promissory Note dated concurrently herewith, each executed between SGRI and
Agent Bank, (ii) Endorsement executed by SGRI in favor of Agent Bank,
(iii) Notice of Assignment executed by SGRI and Agent Bank, (iv) each
of the SGRI Loan Documents, and (v) all other documents, instruments or
agreements which are executed or delivered by or on behalf of SGRI and accepted
by Agent Bank, on behalf of Lenders, as additional security for Borrowers’
payment and performance under the Bank Facilities.

 

“Schedule of
Restricted and Unrestricted Subsidiaries” shall mean the Schedule of Restricted
and Unrestricted Subsidiaries, a copy of which is set forth as Schedule 4.24,
affixed hereto and by this reference incorporated herein and made a

 

42

 

part hereof, setting forth the information described in Section 4.24
with respect to each Restricted and Unrestricted Subsidiary which exists as of
the Closing Date.

 

“Schedule of
Lenders’ Proportions in Credit Facility” shall mean the Schedule of Lenders’
Proportions in Credit Facility, a copy of which is marked
“Schedule 2.01(a)”, affixed hereto and by this reference incorporated
herein and made a part hereof, setting forth the respective Syndication
Interest and maximum amount to be funded under the Credit Facility by each
Lender, as the same may be amended, modified or restated from time to time in
connection with an Assignment and Assumption Agreement.

 

“Schedule of
Significant Litigation” shall mean the Schedule of Significant Litigation, a
copy of which is set forth as Schedule 3.18, affixed hereto and by this
reference incorporated herein and made a part hereof, setting forth the
information described in Section 3.18 with respect to each Significant
Litigation.

 

“Scioto
Merger” shall mean the merger of SDI and RAI with SDI remaining

 

as the surviving corporation as
a wholly owned Subsidiary of MTRI, pursuant to the terms of the Scioto Merger
Agreement.

 

“Scioto Merger
Agreement” shall mean the Agreement and Plan of Merger dated December 23, 2002,
as amended by Amendment No. 1 to Agreement and Plan of Merger dated
February 24, 2003, executed among MTRI, as parent, RAI, as the merger
subsidiary, and SDI, as the company, setting forth the terms and conditions for
the Scioto Merger.

 

“Scioto Merger
Effective Date” shall mean the date upon which the Scioto Merger has been
consummated.

 

“Secured
Interest Rate Hedge(s)” shall mean any Interest Rate Hedge entered into between
any Borrower and any Lender, or Affiliate of any Lender, which is secured by
the Security Documentation.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Security
Documentation” shall mean a collective reference to the MPI Security Documents,
SGLVI Security Documents, SGRI Security Documents, the MTRI Security Documents,
the Trademark Security Agreement and all other instruments and agreements to be
executed by or on behalf of Borrowers or other applicable Persons, in favor of
Agent Bank on behalf of the Lenders securing repayment of the Credit Facility.

 

“Senior
Unsecured Indenture” shall mean that certain Indenture dated as of
March 25, 2003, executed by and among MTRI, as issuer, MPI, SGLVI, SGRI
and

 

43

 

PIDI, as guarantors, each other Subsidiary of MTRI that is or becomes a
guarantor thereunder, and the Indenture Trustee, as trustee, pursuant to which
MTRI issued the Senior Unsecured Notes.

 

“Senior
Unsecured Notes” shall mean at any time the issued and outstanding 9 3/4%
Initial Senior Unsecured Notes and/or the Exchange Senior Unsecured Notes, as
applicable, due April 1, 2010, in the aggregate principal amount of One
Hundred Thirty Million Dollars ($130,000,000.00).

 

“Senior
Unsecured Notes Effective Date” shall mean the date upon which the Initial
Senior Unsecured Notes shall have been issued by MTRI and MTRI shall have
received the proceeds thereof, net of any discounts and any other amounts due
to the initial purchasers or third parties in connection with offering and
issuance of the Initial Senior Unsecured Notes.

 

“Share
Repurchases” shall mean the purchase of shares of any class of stock, option,
right or other equity interest, whether voting or non-voting of MTRI by any
member of the Borrower Consolidation, or any of them.

 

“Significant
Litigation” shall mean each action, suit, proceeding, litigation and controversy
involving Borrowers, or any of them, involving claims in excess of One Million
Dollars ($1,000,000.00) or which if determined adverse to the interests of
Borrowers, or any of them, could result in a Material Adverse Change.

 

“Spaceleases”
shall mean collective reference to the MPI Spaceleases and SGLVI Spaceleases.

 

“Standby
Letter(s) of Credit” shall mean a letter or letters of credit issued by L/C
Issuer pursuant to Section 2.14 of the Credit Agreement for the purpose of
securing payment or performance of a financial obligation of Borrowers, other
than in connection with the payment for goods, equipment or materials.

 

“Stated
Amount” shall mean the maximum amount which L/C Issuer may be required to
disburse to the beneficiary(ies) of a Letter(s) of Credit under the terms
thereof.

 

“Stated Expiry
Date(s)” shall mean the date set forth on the face of a Letter(s) of Credit as
the date when all obligations of L/C Issuer to advance funds thereunder will
terminate, as the same may be extended from time to time.

 

“Stock
Pledges” shall mean collective reference to: (i) the Security Agreement
and Pledge of Stock (Nevada) dated as of February 10, 2000, executed
between MTRI, as debtor, and Agent Bank, as secured party, together with
Speakeasy

 

44

 

Gaming of Las Vegas, Inc. Certificate No. 2 dated January 24,
2000, for 100 shares, issued in favor of MTRI and the Irrevocable Stock Power
executed in connection therewith, and further together with Speakeasy Gaming of
Reno, Inc. Certificate No. 2 dated January 24, 2000, for 100 shares, issued in
favor of MTRI and the Irrevocable Stock Power executed in connection therewith,
(ii) the Security Agreement and Pledge of Stock dated concurrently
herewith, executed between MTRI, as debtor, and Agent Bank, as secured party,
together with Mountaineer Park, Inc. Certificate No. 16 dated October 16,
1992 for 110 shares, issued in favor of MTRI (formerly Excalibur Holding
Corporation) and the Irrevocable Stock Power executed in connection therewith,
and (iii) each of Security Agreement and Pledge of Stock and related stock
powers executed in favor of Agent Bank, including each Restricted Subsidiary
Stock Pledge and the Stock Pledges to be executed on or before the Closing Date
for the issued and outstanding shares of PIDI and RAI; in each case executed
and delivered to Agent Bank on behalf of the Lenders as security for the Bank
Facilities and all other sums which may be owing by Borrowers to the Banks from
time to time under the Credit Agreement, as the same may be amended, modified
or restated from time to time (including, without limitation, the amendment and
restatement of the Existing Credit Agreement evidenced by this Credit Agreement
and the Revolving Credit Note executed concurrently herewith), as the same may
be amended, modified or restated from time to time.

 

“Subsidiary”
shall mean, on the date in question, any Person of which an aggregate of 50% or
more of the stock of any class or classes (or equivalent interests) is owned of
record or beneficially, directly or indirectly, by another Person and/or any of
its Subsidiaries, if the holders of the stock of such class or classes (or
equivalent interests) (a) are ordinarily, in the absence of contingencies,
entitled to vote for the election of a majority of the directors (or
individuals performing similar functions) of such Person, even though the right
so to vote has been suspended by the happening of such a contingency, or (b)
are entitled, as such holders, to vote for the election of a majority of the
directors (or individuals performing similar functions) of such Person, whether
or not the right so to vote exists by reason of the happening of a contingency.

 

“Subsidiary
Guaranty” shall mean the General Continuing Subsidiary Guaranty to be executed
by each Subsidiary in favor of the Agent Bank on behalf of Banks in the form of
the General Continuing Subsidiary Guaranty marked “Exhibit J”, affixed
hereto and by this reference incorporated herein and made a part hereof, under
the terms of which each Subsidiary irrevocably and unconditionally guaranties
to Agent Bank on behalf of the Banks the full and prompt payment and
performance of all Obligations.

 

“Swingline
Advance” shall mean each advance made by Swingline Lender to Borrowers under
the Swingline Facility.

 

45

 

“Swingline
Facility” shall mean the agreement of Swingline Lender to make Swingline
Advances to Borrowers subject to the terms and conditions and up to the maximum
amounts and for the duration as set forth in Section 2.08 of this Credit
Agreement.

 

“Swingline
Lender” shall have the meaning set forth in the Preamble of this Credit
Agreement.

 

“Swingline
Note” shall mean the Swingline Note, a copy of which is marked “Exhibit P”,
affixed hereto and by this reference incorporated herein and made a part
hereof, to be executed by Borrowers on the Closing Date, payable to the order
of Swingline Lender evidencing the Swingline Facility, as the same may be
amended or restated from time to time.

 

“Swingline
Outstandings” shall mean the aggregate amount of all outstanding and unpaid
Swingline Advances as of each date of determination.

 

“Syndication
Costs” shall mean collective reference to all costs and expenses incurred by
Agent Bank in connection with the sale, transfer and/or assignment of a
Syndication Interest to any other Lender.

 

“Syndication
Interest” shall mean the proportionate interest of each Lender in the Credit
Facility as set forth on the Schedule of Lenders’ Proportions in Credit
Facility, as the same may be amended or restated from time to time.

 

“Tangible Net
Worth” shall mean Assets, excluding Intangibles, less Liabilities, in each
instance calculated without regard to Insider Non-Cash Loans and Insider Cash
Loans.

 

“Tecnica”
shall mean Tecnica Development Corp.

 

“Tecnica Stock
Pledge” shall mean the pledge of all outstanding stock of Tecnica in favor of
MTR as additional security for repayment of the Green Shingle Loan.

 

“Title
Insurance Companies” shall mean collective reference to the MPI Title Insurance
Company and the SGLVI Title Insurance Company.

 

“Title
Insurance Policies” shall mean collective reference to the MPI Title Insurance
Policy, SGLVI Title Insurance and the MTRI Hawaii Title Insurance Policy.

 

“Trademark
Security Agreement”  shall mean the security agreement to be
executed by each of the Borrowers as of the Closing Date for the purpose of
granting a security interest in favor of Agent Bank in all trademarks,
tradenames, copyrights and 

 

46

 

servicemarks used in connection with the Hotel/Casino Facilities,
including, without limitation each registration and application set forth on
Schedule 4.22 or otherwise described on Schedule A to the Trademark
Security Agreement, as such Trademark Security Agreement may be amended,
modified, supplemented, replaced, renewed or restated from time to time.

 

“Unrestricted
Subsidiary shall mean each Subsidiary of MTRI which is not a Restricted
Subsidiary or a Borrower.

 

“Unsuitable
Lender” shall have the meaning set forth in Section 10.10(d).

 

“Voluntary
Permanent Reduction” shall have the meaning set forth in Section 2.01(c).

 

“WFB” shall
mean Wells Fargo Bank, National Association.

 

“West Virginia
Gaming Authorities” shall mean the West Virginia State Racing Commission and
West Virginia State Lottery Commission and any other applicable governmental or
administrative state or local agency involved in the regulation of gaming and
gaming activities conducted by the Borrower Consolidation in the State of West
Virginia.

 

“Woodview
Citizens Bank Documents”  shall
mean a collective reference to: (i) that certain Deed of Trust encumbering the
Woodview Real Property which is executed by Robert H. Hillis, as borrower,
for the benefit of The Citizens Banking Company, as lender, and which is
recorded in the Official Records of Hancock County, West Virginia on February
4, 1994 in Book 313 at Page 609 as Document No. 007556; (ii) the
promissory note secured by said Deed of Trust which is executed by the Woodview
Partnership under date of January 31, 1994 and is payable to the order of
The Citizens Banking Company in the original principal amount of Two Hundred
Six Thousand Dollars ($206,000.00); and (iii) that certain Commercial Loan
Modification Agreement which is executed under date of January 21, 1999 by the
Woodview Partnership, MPI, Robert B. Hillis, Randall J. Hillis and
The Citizens Banking Company.

 

“Woodview
Citizens Bank Estoppel” shall mean the Estoppel Certificate (The Citizens Banking
Company) to be duly executed by The Citizens Banking Company, on or before the
Closing Date, wherein it certifies and represents to Agent Bank that:
(a) the Woodview Citizens Bank Documents represent the entire agreement
between The Citizens Banking Company and the borrowers under the Woodview
Citizens Bank Documents, (b)  the Woodview Citizens Bank Documents have
not been modified, supplemented or amended except as described therein,
(c) to the best knowledge of The Citizens Banking Company, there are no
existing or continuing defaults under the Woodview Citizens Bank Documents, and
(d) other provisions are

 

47

 

set forth regarding notice to
Agent Bank in the event of default under the Woodview Citizens Bank Documents
and the rights of Banks to cure any such default.

 

“Woodview
Estoppel Certificates” shall mean a collective reference to the Woodview
Citizens Bank Estoppel and the Woodview Hillis Estoppel.

 

“Woodview
Hillis Documents” shall mean a collective reference to: (i) that certain Deed
of Trust encumbering the Woodview Real Property which is executed by MPI, as
grantor, for the benefit of Robert B. Hillis and Randall J. Hillis,
as lenders, and which is recorded in the Official Records of Hancock County,
West Virginia on January 22, 1999 in Book 379 at Page 239 as Document
No. 012844; and (ii) the promissory note secured by said Deed of
Trust which is executed by MPI under date of January 21, 1999 and is
payable to the order of Robert B. Hillis and Randall J. Hillis in the
original principal amount of Six Hundred Three Thousand Four Hundred
Seventy-nine Dollars and Nine Cents ($603,479.09).

 

“Woodview
Hillis Estoppel” shall mean an Estoppel Certificate (Hillis) to be executed by
Robert B. Hillis and Randall J. Hillis, on or before the Closing Date,
wherein they certify and represent to Agent Bank that: (a) the Woodview
Hillis Documents represent the entire agreement between them and MPI, (b) 
the Woodview Hillis Documents have not been modified, supplemented or amended
except as described therein, (c) to their best knowledge, there are no
existing or continuing defaults under the Woodview Hillis Documents, and
(d) other provisions are set forth regarding notice to Agent Bank in the
event of default under the Woodview Hillis Documents and the rights of Banks to
cure any such default.

 

“Woodview Loan
Documents” shall mean a collective reference to the Woodview Citizens Bank
Documents and the Woodview Hillis Documents.

 

“Woodview
Partnership” shall mean Woodview Golf Course, a West Virginia general
partnership.

 

“Woodview Real
Property” shall mean that portion of the MPI Real Property which is described
as Parcel 2 on Exhibit K affixed hereto and by this reference
incorporated herein and made a part hereof.

 

Section 1.02.                             Interpretation
and Construction.  In this Credit
Agreement, unless the context otherwise requires:

 

(a)                                  Articles
and Sections mentioned by number only are the respective Articles and Sections
of this Credit Agreement as so numbered;

 

48

 

(b)                                 Words
importing a particular gender mean and include every other gender, and words
importing the singular number mean and include the plural number and vice
versa;

 

(c)                                  All
times specified herein, unless otherwise specifically referred, shall be the
time in San Francisco, California;

 

(d)                                 Any
headings preceding the texts of the several Articles and Sections of this
Credit Agreement, and any table of contents or marginal notes appended to
copies hereof, shall be solely for convenience of reference and shall not
constitute a part of this Credit Agreement, nor shall they affect its meaning,
construction or effect;

 

(e)                                  If
any clause, definition, provision or Section of this Credit Agreement shall be
determined to be apparently contrary to or conflicting with any other clause,
definition, provision or Section of this Credit Agreement then the clause,
definition, provision or Section containing the more specific provisions shall
control and govern with respect to such apparent conflict.  The parties hereto do agree that each has
contributed to the drafting of this Credit Agreement and all Loan Documents and
that the provisions herein contained shall not be construed against either
Borrowers or Lenders as having been the person or persons responsible for the
preparation thereof;

 

(f)                                    The
terms “herein”, “hereunder”, “hereby”, “hereto”, “hereof” and any similar terms
as used in the Credit Agreement refer to this Credit Agreement; the term
“heretofore” means before the date of execution of this Credit Agreement; and
the term “hereafter” means after the date of the execution of this Credit
Agreement;

 

(g)                                 All
accounting terms used herein which are not otherwise specifically defined shall
be used in accordance with GAAP;

 

(h)                                 If
any clause, provision or Section of this Credit Agreement shall be ruled
invalid or unenforceable by any court of competent jurisdiction, such holding
shall not invalidate or render unenforceable any of the remaining provisions
hereof;

 

(i)                                     Each
reference to this Credit Agreement or any other Loan Document or any of them,
as used in this Credit Agreement or in any other Loan Document, shall be deemed
a reference to this Credit Agreement or such Loan Document, as applicable, as
the same may be amended, modified, supplemented, replaced, renewed or restated
from time to time; and

 

(j)                                     Every
affirmative duty, covenant and obligation of Borrowers hereunder shall be
equally applicable to each of the Borrowers individually and where

 

49

 

the context would result in the best interests or rights of Banks shall
be construed to mean “Borrowers or any of them” or “Borrowers and each of
them”, as applicable.

 

Section 1.03.                             Use
of Defined Terms.  Unless otherwise
defined or the context otherwise requires, terms for which meanings are
provided in this Credit Agreement shall have such meanings when used in the
Revolving Credit Note and in each Loan Document and other communication
delivered from time to time in connection with this Credit Agreement or any
other Loan Document.

 

Section 1.04.                             Cross-References.  Unless otherwise specified, references in
this Credit Agreement and in each other Loan Document to any Article or Section
are references to such Article or Section of this Credit Agreement or such
other Loan Document, as the case may be, and, unless otherwise specified,
references in any Article, Section or definition to any clause are references
to such clause of such Article, Section or definition.

 

Section 1.05.                             Exhibits
and Schedules.  All Exhibits and
Schedules to this Credit Agreement, either as originally existing or as the
same may from time to time be supplemented, modified or amended, are
incorporated herein by this reference.

 

ARTICLE II

 

AMOUNT, TERMS AND SECURITY OF THE CREDIT
FACILITY

 

Section 2.01.                             The
Credit Facility.

 

a.                                       Subject to the
conditions and upon the terms hereinafter set forth and in accordance with the
terms and provisions of the Revolving Credit Note, on and after the Closing
Date Lenders severally agree in the proportions set forth on the Schedule of
Lenders’ Proportions in Credit Facility to lend and advance Borrowings to
Borrowers, up to the Maximum Availability such amounts as Borrowers may request
during the Revolving Credit Period by Notice of Borrowing duly executed by an
Authorized Officer and delivered to Agent Bank from time to time for Borrowings
under the Credit Facility as provided in Section 2.03.

 

b.                                      Subject to the
uses and purposes set forth in Section 2.02, on and after the Closing Date
Borrowers may borrow, repay and reborrow the Available Borrowings up to the
Maximum Permitted Balance from time to time. 
Provided, however, amounts of Funded Outstandings bearing interest with
reference to a LIBO Rate shall be subject to Breakage Charges incident to
prepayment.  The Credit Facility shall
be for a term commencing on the Closing Date and terminating on the Maturity
Date, on which date the entire outstanding balance of the Credit Facility shall
be fully paid and Credit Facility Termination shall occur.  In no event shall any Lender be liable to
fund any amounts under the Credit Facility in excess of its respective
Syndication Interest in any Borrowing.

 

50

 

c.                                       Borrowers may
voluntarily permanently reduce the Maximum Permitted Balance from time to time
(a “Voluntary Permanent Reduction”) on the following conditions:

 

(i)                                     that
each such Voluntary Permanent Reduction be in the minimum amount of One Million
Dollars ($1,000,000.00) and made in writing by an Authorized Officer, effective
on the fifth (5th) Banking Business Day following receipt by Agent Bank;

 

(ii)                                  that
each such Voluntary Permanent Reduction shall be irrevocable and a permanent
reduction to the Maximum Permitted Balance; and

 

(iii)                               in
the event any Voluntary Permanent Reduction reduces the Maximum Permitted
Balance to less than the sum of the Funded Outstandings, the Borrowers shall
immediately cause the Funded Outstandings to be reduced by such amount as may
be necessary to cause the Funded Outstandings to be equal to or less than the
Maximum Permitted Balance.

 

Section 2.02.                             Use
of Proceeds of the Credit Facility. 
Available Borrowings shall be used for the purposes of:

 

a.                                       On the Closing
Date (collectively the “Closing Disbursements”):

 

(i)                                     continuing
up to Fifty Million Dollars ($50,000,000.00) of the outstanding principal
balance under the Existing Credit Facility as Funded Outstandings under the
Credit Facility; and

 

(ii)                                  paying
in full the fees due Agent Bank as set forth in the Fee Side Letter, the costs,
fees and expenses of Title Insurance Companies incurred in connection with the
issuance of the Title Endorsements, the costs, fees and expenses of the
attorneys for Borrowers and the costs, fees and expenses of Henderson &
Morgan, LLC, attorneys for Agent Bank, and associate counsel and insurance
consultants retained by them incurred to the Closing Date.

 

b.                                      During the
Revolving Credit Period:

 

51

 

(i)                                     funding
working capital needs of the Borrower Consolidation relating to the
Hotel/Casino Facilities;

 

(ii)                                  funding
ongoing Capital Expenditure requirements of the Borrower Consolidation relating
to the Hotel/Casino Facilities; and

 

(iii)                               funding
for other general corporate purposes.

 

Section 2.03.                             Notice
of Borrowings.

 

a.                                       An Authorized
Officer may give Agent Bank, no later than 9:00 a.m. on any Banking Business
Day at Agent Bank’s office specified in Section 2.07, three (3) full Banking
Business Days prior written notice in the form of the Notice of Borrowing
(“Notice of Borrowing”), a copy of which is marked “Exhibit B”, affixed
hereto and by this reference incorporated herein and made a part hereof, for
each proposed Borrowing to be made with reference to a LIBO Rate and at least
one (1) full Banking Business Day prior notice for all other Borrowings,
specifying the date and amount of each proposed Borrowing.  Agent Bank shall give prompt notice of each
Notice of Borrowing to Lenders of the amount to be funded and specifying the
Funding Date in accordance with Section 9.03(a).  Not later than 11:00 a.m. on the Funding Date specified, each
Lender shall disburse to Agent Bank its Pro Rata Share of the amount to be
advanced by each such Lender in lawful money of the United States of America
and in immediately available funds. 
Agent Bank shall make the proceeds of such fundings received by it on or
before 11:00 a.m. from the Lenders available to Borrowers by depositing, prior
to 1:00 p.m. on the day so received (but not prior to the Funding Date) in the
Designated Deposit Account maintained with Agent Bank, the amounts received
from the Lenders.  No Borrowing may
exceed the Available Borrowings.  Each Borrowing
to be made with reference to the Base Rate shall be in a minimum amount of Five
Hundred Thousand Dollars ($500,000.00) and in increments of One Hundred
Thousand Dollars ($100,000.00). 
Borrowers shall be entitled to no more than three (3) Borrowings during
each calendar month, exclusive of Borrowings made for the sole purpose of
funding repayment of a Swingline Advance.

 

b.                                      The failure of
any Lender to fund its Pro Rata Share of any Borrowing on any Funding Date
shall neither relieve any other Lender of any obligation hereunder to fund its
Pro Rata Share of such Borrowing on such Funding Date nor relieve such Lender
which has failed to fund its Pro Rata Share of its obligations to Borrowers
hereunder.  No Lender shall be
responsible for the failure of any other Lender to fund its Pro Rata Share of
such Borrowing on any Funding Date nor shall any Lender be responsible for the
failure of any other Lender to perform its respective

 

52

 

obligations
hereunder.  The provisions set forth in
Section 10.10(d) shall be applicable to a Defaulting Lender to the same
extent as if such Defaulting Lender was found to be an Unsuitable Lender.

 

Section 2.04.                             Conditions
of Borrowings.  Borrowings, other
than Borrowings made at the request of Agent Bank for the purpose of funding
repayment of Swingline Outstandings and/or L/C Reimbursement Obligations as
hereinafter provided, will only be made so long as Borrowers are in full
compliance with each of the requirements and conditions precedent set forth in
Article III B of this Credit Agreement; provided, however, upon the
consent of Requisite Lenders, Lenders shall advance Borrowings notwithstanding
the existence of less than full compliance with the requirements of Article III
B and Borrowings so made shall be deemed to have been made pursuant to this Credit
Agreement.

 

Section 2.05.                             The
Revolving Credit Note and Interest Rate Options.

 

a.                                       The Credit
Facility shall be further evidenced by the Revolving Credit Note payable to the
order of Agent Bank on behalf of the Lenders. 
Agent Bank shall record manually or electronically the date and amount
of each Borrowing advanced by the Lenders together with the applicable Interest
Period in the case of portions of the unpaid principal under the Credit
Facility bearing interest with reference to a LIBO Rate, and the amount of each
repayment of principal made thereunder by Borrowers and the entry of such
records shall be conclusive absent manifest or demonstrable error; provided,
however, the failure to make such a record or notation with respect to any
Borrowing or repayment thereof, or an error in making such a record or
notation, shall not limit or otherwise affect the obligations of Borrowers
hereunder or under the Revolving Credit Note.

 

b.                                      Interest shall
accrue on the entire outstanding principal balance of the Credit Facility at a
rate per annum equal to the Base Rate plus the Applicable Margin, unless
Borrowers request a LIBOR Loan pursuant to Section 2.03 or elect pursuant
to Section 2.05(c) hereinbelow to have interest accrue on a portion or
portions of the outstanding principal balance of the Credit Facility at a LIBO
Rate (“Interest Rate Option”), in which case interest on such portion or
portions shall accrue at a rate per annum equal to such LIBO Rate plus the
Applicable Margin in effect as of the second Banking Business Day prior to the
first day of the applicable Interest Period, as long as: (i) each such
LIBOR Loan is in a minimum amount of Five Million Dollars ($5,000,000.00) plus
minimum increments of One Million Dollars ($1,000,000.00), or such lesser
amount as equals the Maximum Permitted Balance, and (ii) no more than five
(5) LIBOR Loans may be outstanding at any one time.  Interest accrued on each Base Rate Loan shall be due and payable
on the first day of the month following the Closing Date, on the first day of
each successive month thereafter, and on the Maturity Date.  For each LIBOR Loan, accrued interest shall
be due and payable at the end of

 

53

 

each Interest
Period applicable thereto, but in any event no less frequently than at the end
of each three (3) month period during the term of such LIBOR Loan.  Agent Bank shall notify Borrower in writing
five (5) Banking Business Days prior to each payment of interest due herewith,
detailing the amount owed and the calculation thereof.  Except as qualified above, the outstanding
principal balance hereunder may be a Base Rate Loan or one or more LIBOR Loans,
or any combination thereof, as Borrowers shall specify.

 

c.                                       So long as no
Default or Event of Default shall have occurred and remains continuing,
Borrowers may Convert from one Interest Rate Option to another Interest Rate
Option or continue an Interest Rate Option for another Interest Period by
giving irrevocable notice to Agent Bank of such Conversion by 11:00 a.m., on a
day which is at least three (3) Banking Business Days prior to the proposed
date of such Conversion to or Continuation of each LIBOR Loan or one (1)
Banking Business Day prior to the proposed date of such Conversion to each Base
Rate Loan.  Each such notice shall be
made by an Authorized Officer by telephone and thereafter immediately confirmed
in writing by delivery to Agent Bank of a Continuation/Conversion Notice
specifying the date of such Conversion or Continuation, the amounts to be so
Converted or Continued and the Interest Period if the Conversion or
Continuation is being made with reference to a LIBOR Loan.  Upon receipt of such Continuation/Conversion
Notice, Agent Bank shall promptly set the applicable interest rate (which in
the case of a LIBOR Loan shall be the LIBO Rate plus the Applicable Margin as
of the second Banking Business Day prior to the first day of the applicable
Interest Period) and the applicable Interest Period if the Conversion or
Continuation is being made with reference to a LIBOR Loan and shall confirm the
same in writing to Borrowers and Lenders. 
Each Conversion or Continuation shall be on a Banking Business Day.  No LIBOR Loan shall be converted to a Base
Rate Loan or renewed on any day other than the last day of the current Interest
Period relating to such amounts outstanding unless Borrowers pay any applicable
Breakage Charges.  All Borrowings
advanced at the request of Agent Bank under Section 2.08 of the Credit
Agreement shall bear interest with reference to the Base Rate plus the
Applicable Margin, subject to Borrowers’ right to Convert such Borrowing to a
LIBOR Loan or LIBOR Loans as provided herein. 
If Borrowers fail to give a Continuation/Conversion Notice for the
continuation of a LIBOR Loan as a LIBOR Loan for a new Interest Period in
accordance with this Section 2.05(c), such LIBOR Loan shall automatically
become a Base Rate Loan at the end of its then current Interest Period.

 

d.                                      Each interest
period (each individually an “Interest Period” and collectively the “Interest
Periods”) for a LIBOR Loan shall commence on the date such LIBOR Loan is made
or the date of Conversion or Continuation of any amount or amounts of the
outstanding Borrowings hereunder to a LIBOR Loan, as the case may be, and shall
end on the date which is one (1), two (2), three (3) or six (6) months
thereafter, as elected by Borrowers. 
However, no Interest Period may extend beyond the Maturity Date.  Each Interest Period for a LIBOR Loan shall
commence and end on

 

54

 

a Banking
Business Day.  If any Interest Period
commences on a date for which there is no corresponding date in the month in
which it is scheduled to end, such Interest Period shall end on the last
Banking Business Day of such month.  If
any Interest Period would otherwise expire on a day which is not a Banking
Business Day, the Interest Period shall be extended to expire on the next
succeeding Banking Business Day, unless the result of such extension would be
to carry such Interest Period into another calendar month, in which event such
Interest Period shall end on the immediately preceding Banking Business Day.

 

e.                                       The applicable
LIBO Rate and Base Rate shall be determined by the Agent Bank, and notice
thereof shall be given promptly to Borrowers and Lenders.  Each determination of the applicable Base
Rate and LIBO Rate shall be conclusive and binding upon the Borrowers, in the
absence of manifest or demonstrable error. 
The Agent Bank shall, upon written request of Borrowers or any Lender,
deliver to Borrowers or such Lender, as the case may be, a statement showing
the computations used by the Agent Bank in determining any rate hereunder.

 

f.                                         Computation of
fees and interest on all Base Rate Loans and LIBOR Loans shall be calculated on
the basis of a year of three hundred sixty (360) days and the actual number of
days elapsed.  The applicable Base Rate
shall be effective the same day as a change in the Base Rate is announced by
WFB as being effective.

 

g.                                      If with respect
to any Interest Period, (a) the Agent Bank reasonably determines (which
determination shall be binding and conclusive on Borrowers) that by reason of
circumstances affecting the inter-bank eurodollar market adequate and
reasonable means do not exist for ascertaining the applicable LIBO Rate, or
(b) Requisite Lenders advise Agent Bank that the LIBO Rate as determined
by Agent Bank will not adequately and fairly reflect the cost to such Lenders
of maintaining or funding, for such Interest Period, a LIBOR Loan under the
Credit Facility, then so long as such circumstances shall continue:  (i) Agent Bank shall promptly notify
Borrowers thereof, (ii) the Lenders shall not be under any obligation to
make a LIBOR Loan or Convert a Base Rate Loan into a LIBOR Loan for which such
circumstances exist, and (iii) on the last day of the then current Interest
Period, the LIBOR Loan for which such circumstances exist shall, unless then
repaid in full, automatically Convert to a Base Rate Loan.

 

h.                                      Notwithstanding
any other provisions of the Credit Agreement, if, after the Closing Date, any
law, rule, regulation, treaty, interpretation or directive (whether having the
force of law or not) or any change therein shall make it unlawful for any
Lender to make or maintain LIBOR Loans, then (i) the commitment and agreement
to maintain LIBOR Loans as to such

 

55

 

Lender shall
immediately be suspended, and (ii) unless required to be terminated earlier,
LIBOR Loans as to such Lender, if any, shall be Converted on the last day of
the then current Interest Period applicable thereto to Base Rate Loans.  If it shall become lawful for such Lender to
again maintain LIBOR Loans, then Borrowers may once again as to such Lender
request Conversions to the LIBO Rate. 
During any period of such suspension, such Lender shall make Base Rate
Loans.

 

i.                                          The Borrowers
agree that upon written notice by: (y) Agent Bank or (z) any Lender to the
Borrowers (with a copy of such notice concurrently delivered to Agent Bank) to
the effect that a promissory note or other evidence of indebtedness is required
for such Lender by a Governmental Authority, banking regulatory agency or
regulatory audit in order for such Lender to evidence (whether for the purposes
of pledge, enforcement or otherwise) the Borrowings owing to, or to be made by,
such Lender:

 

(i)                                     The
Borrowers shall promptly execute and deliver to each Lender a promissory note
payable to the order of each such Lender (each individually a “Replacement
Note” and collectively the “Replacement Notes”) in the form of the Revolving
Credit Note in the amount of each Lender’s respective Syndication Interest in
the Credit Facility;

 

(ii)                                  The
Replacement Notes shall, in the aggregate, fully replace the Revolving Credit
Note and each reference to the Revolving Credit Note in this Credit Agreement
and each of the Loan Documents shall be deemed to be a collective reference to
the Replacement Notes;

 

(iii)                               Borrowings,
Interest Rate Options, Construction/Conversion Notices and all other provisions
for the disbursement of funds, setting of interest rates and collection of
repayments of interest and principal shall continue to be made by Agent Bank as
the administrative and collateral agent for the Lenders in the same manner and
to the same extent as provided in the Revolving Credit Note and this Credit
Agreement as fully applicable to each of the Replacement Notes;

 

(iv)                              the
Agent Bank, upon the consent of Requisite Lenders, shall cause the Title
Insurance Company to issue, at the expense of Lenders, such endorsements to the
Title Insurance Policies as may be reasonably necessary to assure the aggregate
obligation evidenced by the Replacement Notes is secured by the

 

56

 

Deed of Trust with the same coverage and
priority as the obligation evidenced by the Revolving Credit Note; and

 

(v)                                 Concurrently
with the delivery of the Replacement Notes, Agent Bank shall return the
original Revolving Credit Note to Borrower marked as superseded and replaced by
the Replacement Notes.

 

Section 2.06.                             Security
for the Credit Facility.  The
Security Documentation shall secure the due and punctual payment and
performance of the terms and provisions of this Credit Agreement, the Revolving
Credit Note and all of the other Loan Documents.  In furtherance of such security, the Security Document Amendments
shall be executed and delivered to Agent Bank, as of the Closing Date, by the
respective parties to each of the Security Document Amendments and recorded
and/or filed as required by the Closing Instructions.

 

Section 2.07.                             Place
and Manner of Payment.

 

a.                                       All amounts
payable by Borrowers to the Lenders shall be made to Agent Bank on behalf of
Lenders pursuant to the terms of the Credit Agreement and the Notes and shall
be made on a Banking Business Day in lawful money of the United States of
America and in immediately available funds. 
Other than in connection with principal payments which may be required
to decrease the Funded Outstandings to an amount equal to or less than the
Maximum Permitted Balance, Borrowers shall not make repayments (“Principal
Prepayments”) of the outstanding balance of principal owing under the Revolving
Credit Note more frequently than three (3) such Principal Prepayments during
each calendar month.  Each such
Principal Prepayment of a Base Rate Loan shall be in a minimum amount of Five
Hundred Thousand Dollars ($500,000.00) (or, if less, the outstanding principal
amount of Base Rate Loans) and in increments of One Hundred Thousand Dollars
($100,000.00) in excess thereof.  Each
such Principal Prepayment of a LIBOR Loan shall be in a minimum amount of Five
Million Dollars ($5,000,000.00) and in increments of One Million Dollars
($1,000,000.00) in excess thereof; provided, that in no event shall any
outstanding LIBOR Loan have a principal balance of less then Five Million
Dollars ($5,000,000.00).  Borrowers
shall give written notice to Agent Bank of each Principal Payment by 11:00 a.m.
on a day which is at least three (3) Banking Business Days prior to each
Principal Prepayment of all or any portion of a LIBOR Loan or one (1) Banking
Business Day prior to each Principal Prepayment of all or any portion of a Base
Rate Loan.

 

b.                                      All such amounts
payable by Borrowers shall be made to Agent Bank at its office located at Wells
Fargo Bank, Syndications Division, 201 Third

 

57

 

Street, Eighth
Floor, San Francisco, California 94103, or at such other address as may be
directed in writing by Agent Bank from time to time.  If such payment is received by Agent Bank prior to 11:00 a.m.,
Agent Bank shall credit Borrowers with such payment on the day so received and
shall promptly disburse to the appropriate Lenders on the same day the Pro Rata
Share of payments relating to the Credit Facility, in immediately available
funds.  If such payment is received by
Agent Bank after 11:00 a.m., Agent Bank shall credit Borrowers with such
payment as of the next Banking Business Day and disburse to the appropriate Lenders
on the next Banking Business Day such Pro Rata Share of such payment relating
to the Credit Facility in immediately available funds.  Any payment on the Credit Facility made by
Borrowers to Agent Bank pursuant to the terms of this Credit Agreement or the
Revolving Credit Note for the account of Lenders shall constitute payment to
the appropriate Lenders.  If the
Revolving Credit Note or any payment required to be made thereon or hereunder,
is or becomes due and payable on a day other than a Banking Business Day, the
due date thereof shall be extended to the next succeeding Banking Business Day
and interest thereon shall be payable at the then applicable rate during such
extension.

 

c.                                       Subject to
Section 2.07(a), the outstanding principal owing under the Credit Facility
and the Revolving Credit Note may be prepaid at any time in whole or in part
without penalty; provided, however, that any portion or portions of the unpaid
principal balance which is accruing interest at a LIBO Rate may only be prepaid
or repaid on the last day of the applicable Interest Period unless Borrowers
give three (3) days prior written notice to Agent Bank and additionally pay
concurrently with such prepayment or repayment such additional amount or
amounts as will compensate Lenders for any losses, costs or expenses which they
may incur as a result of such payment, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred by the
liquidation or reemployment of deposits or other funds acquired by such Lender
to fund or maintain such LIBOR Loan (“Breakage Charges”).  A certificate of a Lender as to amounts
payable hereunder shall be conclusive and binding on Borrowers for all
purposes, absent manifest or demonstrable error.  Any calculation hereunder shall be made on the assumption that
each Lender has funded or will fund each LIBOR Loan in the London interbank
market; provided that no Lender shall have any obligation to actually
fund any LIBOR Loan in such manner.

 

d.                                      Unless the Agent
Bank receives notice from an Authorized Officer prior to the date on which any
payment is due to the Lenders that the Borrowers will not make such payment in
full as and when required, the Agent Bank may assume that the Borrowers have
made such payment in full to the Agent Bank on such date in immediately
available funds and the Agent Bank may (but shall not be so required), in
reliance upon such assumption, distribute to each Lender on such due date an
amount equal to the amount then due such Lender.  If and to the extent the Borrowers have not made such payment in
full to the Agent Bank, each Lender shall repay to the Agent Bank on demand
such amount distributed to such Lender, together with interest thereon

 

58

 

at the Federal
Funds Rate for each day from the date such amount is distributed to such Lender
until the date repaid.

 

e.                                       If, other than
as expressly provided elsewhere herein, any Lender shall obtain any payment
with respect to the Credit Facility (whether voluntary, involuntary, through
the exercise of any right of set-off, or otherwise) in excess of its
Syndication Interest, such Lender shall immediately (a) notify the Agent Bank
of such fact, and (b) purchase from the other Lenders such participations
in the Credit Facility as shall be necessary to cause such purchasing Lender to
share the excess payment with each of them in proportion to their respective
Syndication Interests; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender, such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefor, together with an amount
equal to such paying Lender’s ratable share (according to the proportion of
(i) the amount of such paying Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered.  The Borrowers agree that
any Lender so purchasing a participation from another Lender may, to the
fullest extent permitted by law, exercise all its rights of payment with
respect to such participation as fully as if such Lender were the direct
creditor of the Borrowers in the amount of such participation.  The Agent Bank will keep records (which
shall be conclusive and binding in the absence of manifest or demonstrable
error) of each participation purchased under this section and will in each case
notify the Lenders following any such purchases or repayments.

 

Section 2.08.                             The
Swingline Facility.

 

a.                                       Subject to the
conditions and upon the terms hereinafter set forth and in accordance with the
terms and provisions of the Swingline Note, Exhibit P affixed hereto, on
and after the Closing Date, Swingline Lender agrees to lend and advance
Swingline Advances to Borrowers in the amounts and at the times provided
below.  Notwithstanding anything herein
contained to the contrary, however, Borrower shall not be entitled to any
Swingline Advances on and after the date which is ten (10) calendar days prior
to the Maturity Date.

 

b.                                      With respect to
each proposed Swingline Advance, an Authorized Officer shall give Swingline
Lender written notice in the form of the Notice of Swingline Advance (“Notice
of Swingline Advance”), a copy of which is marked “Exhibit Q”, affixed
hereto and by this reference incorporated herein and made a part hereof, to be
received by Swingline Lender no later than 12:00 noon on the date for each
proposed Swingline Advance specifying the requested amount to be funded or oral
notice to be received by Swingline Lender no later than 12:00 noon on such
date, to be followed by a duly completed and executed Notice of Swingline Advance
no later

 

59

 

than 1:00 p.m.
on the same date.  Swingline Lender
shall, on the date for each proposed Swingline Advance, deposit into the
Designated Deposit Account in lawful money of the United States of America in
immediately available funds such amounts as Borrowers may request; provided,
that: (i) after giving effect to such Swingline Advance, the Swingline
Outstandings shall not exceed Ten Million Dollars ($10,000,000.00),
(ii) the amount requested does not exceed the Available Borrowings,
(iii) no Default or Event of Default has occurred and is continuing, and
(iv) the conditions precedent set forth in Sections 3.23 and 3.24 shall
have been satisfied.  Within the
foregoing limitations, Borrowers may borrow, repay and reborrow under the
Swingline Facility.  Each Swingline
Advance shall be in an integral multiple of One Hundred Thousand Dollars
($100,000.00).  Promptly after receipt
of each request for a Swingline Advance, Swingline Lender shall obtain telephonic
verification from Agent Bank that, giving effect to such request, the amount of
such request does not exceed the then Available Borrowings (such verification
to be promptly confirmed in writing). 
Unless notified to the contrary by the Swingline Lender, each repayment
of a Swingline Advance shall be in an amount which is an integral multiple of
One Hundred Thousand Dollars ($100,000.00), together with the accrued interest
thereon.  The Swingline Lender shall promptly
notify the Agent Bank of the Swingline Outstandings each time there is a change
therein.

 

c.                                       Each Swingline
Advance shall bear interest at the Base Rate plus the Applicable Margin and
shall be payable at the times and in the manner set forth below and, in any
event, on or before ten (10) days prior to the Maturity Date.  Unless otherwise paid, interest accrued on
the unpaid balance of Swingline Outstandings for the period commencing on the
first calendar day and ending on the last calendar day of each and every month
shall be paid monthly in arrears on or before the fifth (5th) day following
receipt by Borrowers of an invoice from Swingline Lender setting forth the
amount of such accrued interest.  In the
event any Swingline Advance is outstanding for ten (10) consecutive Banking
Business Days or as of the tenth (10th) day prior to the Maturity Date, then on
the next Banking Business Day (unless Borrowers have made other arrangements
acceptable to the Swingline Lender to pay the Swingline Outstanding in full or
to continue such Swingline Outstanding), Borrowers shall request a Borrowing
under the Credit Facility in an amount sufficient to pay the applicable
Swingline Advance in full, together with all interest accrued thereon.  Upon receipt of the amount of the Borrowing
from the Lenders, the Agent Bank shall provide such amount to the Swingline
Lender for repayment of the applicable Swingline Advance and the balance of the
Borrowing, if any, shall be deposited in immediately available funds to the
Designated Deposit Account.  In the
event Borrowers fail to request a Borrowing within the period specified above,
Agent Bank shall, without notice to the Borrowers and without regard to any
other conditions precedent for the making of Borrowings under the Credit
Facility, including, without limitation the remedies set forth in
Section 7.02, promptly (but subject to the notice periods for Borrowings
set forth in Section 2.03) cause a Borrowing to be made and funded by the
Lenders under the Credit Facility in

 

60

 

the amount necessary to pay the
applicable Swingline Advance in full, together with all interest accrued
thereon, to the extent of Available Borrowings, and the Borrowers shall be
deemed to have requested such Borrowing and consented to its being made as
provided for herein.

 

d.                                      Each Lender’s
obligation to advance Borrowings in the proportionate amount of its Syndication
Interest in the Credit Facility of any unreimbursed Swingline Outstandings
pursuant hereto is several, and not joint or joint and several.  The failure of any Lender to perform its
obligation to advance a Borrowing in a proportionate amount of such Lender’s
Syndication Interest of any unreimbursed Swingline Outstandings shall neither
relieve any other Lender of its obligation hereunder to advance such Borrowing
in the amount of such other Lender’s proportionate Syndication Interest of such
amount, nor relieve the Lender which has failed to fund of its obligations to
Borrowers hereunder.  The Borrowers
agree to accept the Borrowings for payment of Swingline Outstandings as
provided hereinabove, whether or not such Borrowings could have been made
pursuant to the terms of Article III B or any other section of this Credit
Agreement.

 

Section 2.09.                             Fees.

 

a.                                       On the Closing
Date and on each other applicable date, Borrowers shall pay the fees as
required in the Fee Side Letter, each of such fees to be retained by Agent Bank
or distributed to Lenders as agreed between Agent Bank and each Lender.

 

b.                                      Borrowers shall
pay a quarterly nonusage fee (the “Commitment Fee”) to the Agent Bank for the
account of Lenders based on the Leverage Ratio, calculated as of each Fiscal
Quarter end following the Closing Date with reference to the Borrower
Consolidation, to determine the applicable Commitment Percentage determined as
set forth in Table Two of the definition of Applicable Margin.  As of the Closing Date, the Commitment
Percentage shall be set in accordance with the Pricing Certificate to be
delivered by Borrowers to Agent Bank on the Closing Date pursuant to
Section 3.04.

 

The Commitment Fee shall
commence to accrue on the Closing Date and shall be calculated as the product
of (i) the applicable Commitment Percentage multiplied by (ii) the
daily average of the Maximum Permitted Balance less the daily average of the
Funded Outstandings computed on the basis of a three hundred sixty (360) day
year based on the number of actual days elapsed.  Each Commitment Fee shall be payable in arrears on a quarterly
basis on or before the fifth (5th) day following receipt by
Borrowers of an invoice from Agent Bank setting forth the amount of such
Commitment Fee for each applicable Fiscal Quarter, and upon Bank Facility
Termination.  Each Commitment Fee shall
be promptly distributed by Agent Bank to Lenders in proportion

 

61

 

to their respective Syndication
Interests in the Credit Facility, as in effect from time to time during each
applicable Fiscal Quarter.

 

c.                                       Concurrently
with the issuance of each Letter of Credit, Borrowers shall pay an issuance fee
to the L/C Issuer (“L/C Fee”) in an amount equal to the Stated Amount of each
such Letter of Credit multiplied by the LIBO Rate Margin, as set forth in Table
One of the definition of Applicable Margin, applicable as of such date of
issuance, calculated on a per annum basis for the number of days elapsing from
the issuance date to the Stated Expiry Date of each such Letter of Credit, but
in no event shall the L/C Fee be less than Five Hundred Dollars ($500.00) for
each Letter of Credit.  From each L/C
Fee the greater of Five Hundred Dollars ($500.00) or one quarter of one percent
(.25%) of the Stated Amount of each such Letter of Credit, calculated on a per
annum basis as provided hereinabove, shall be retained by L/C Issuer for its
own account and the balance of each L/C Fee shall be promptly distributed by
Agent Bank to Lenders in proportion to their respective Syndication Interests
in the Credit Facility.  All L/C Fees
paid by Borrowers are nonrefundable and shall be deemed fully earned upon
issuance of the applicable Letter of Credit.

 

Section 2.10.                             Late
Charges and Default Rate.

 

a.                                       If any payment
due under the Revolving Credit Note is not paid within three (3) Banking
Business Days after receipt by Borrowers of written notice of such nonpayment
from Agent Bank, Borrowers promise to pay a late charge in the amount of three
percent (3%) of the amount of such delinquent payment and Agent Bank need not
accept any late payment made unless it is accompanied by such three percent
(3%) late payment charge.  Any late
charge shall be paid to Lenders in proportion to their respective Syndication
Interests.

 

b.                                      In the event of
the existence of an Event of Default, commencing on the first (1st) Banking
Business Day following the receipt by Borrowers of written notice of the
occurrence of such Event of Default from Agent Bank, the total of the unpaid
balance of the principal and the then accrued and unpaid interest owing under
the Revolving Credit Note shall commence accruing interest at a rate equal to
two percent (2.0%) over the interest rate otherwise applicable to the Revolving
Credit Note (the “Default Rate”) until all Events of Default which may exist
have been cured, at which time the interest rate shall revert to the rate of interest
otherwise accruing pursuant to the terms of the Revolving Credit Note.

 

c.                                       In the event of
the occurrence of an Event of Default, Borrowers agree to pay all reasonable
costs of collection, including the reasonable attorneys’ fees incurred by Agent
Bank, in addition to and at the time of the payment of such sum of money and/or
the performance of such acts as may be required to cure such Event of
Default.  In the event legal action is
commenced for the collection of any sums owing hereunder or under the terms of
the Revolving Credit Note, the Borrowers

 

62

 

agree that any
judgment issued as a consequence of such action against Borrowers shall bear
interest at a rate equal to the Default Rate until fully paid.

 

Section 2.11.                             Net
Payments.  All payments under this
Credit Agreement, the Revolving Credit Note and/or L/C Reimbursement
Obligations shall be made without set-off, counterclaim, recoupment or defense
of any kind and in such amounts as may be necessary in order that all such
payments, after deduction or withholding for or on account of any future taxes,
levies, imposts, duties or other charges of whatsoever nature imposed by the
United States or any Governmental Authority, other than franchise taxes or any
tax on or measured by the gross receipts or overall net income of any Lender
pursuant to the income tax laws of the United States or any State, or the
jurisdiction where each Lender’s principal office is located (collectively
“Taxes”), shall not be less than the amounts otherwise specified to be paid
under this Credit Agreement and the Revolving Credit Note.  A certificate as to any additional amounts
payable to the Lenders under this Section 2.10 submitted to the Borrowers by
the Lenders shall show in reasonable detail an accounting of the amount payable
and the calculations used to determine in good faith such amount and shall be
conclusive absent manifest or demonstrable error.  Any amounts payable by the Borrowers under this Section 2.10 with
respect to past payments shall be due within ten (10) days following receipt by
the Borrowers of such certificate from the Lenders; any such amounts payable
with respect to future payments shall be due within ten (10) days after demand
with such future payments.  With respect
to each deduction or withholding for or on account of any Taxes, the Borrowers
shall promptly furnish to the Lenders such certificates, receipts and other
documents as may be required (in the reasonable judgment of the Lenders) to
establish any tax credit to which the Lenders may be entitled.

 

Section 2.12.                             Increased
Costs.  If after the date hereof the
adoption of, or any change in, any applicable law, rule or regulation
(including without limitation Regulation D of the Board of Governors of
the Federal Reserve System and any successor thereto), or any change in the
interpretation or administration thereof by any Governmental Authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender with any future request or future
directive (whether or not having the force of law) of any such Governmental
Authority, central bank or comparable agency:

 

a.                                       Shall subject
any Lender to any tax, duty or other charge with respect to the Credit Facility
and/or the Revolving Credit Note or such Lender’s obligation to make any
funding of the Credit Facility, or shall change the basis of taxation of
payments to such Lender of the principal of, or interest on, the Credit
Facility or any other amounts due under the Revolving Credit Note in respect of
the Credit Facility or such Lender’s obligation to fund the Credit Facility
(except for changes in the rate of tax on the overall net income of such Lender
imposed by the United States or

 

63

 

any
Governmental Authority pursuant to the income tax laws of the United States or
any State, or the jurisdiction where each Lender’s principal office is
located); or

 

b.                                      With respect to
the Credit Facility or the obligation of the Lenders to advance Borrowings
under the Credit Facility shall impose, modify or deem applicable any reserve
imposed by the Board of Governors of the Federal Reserve System, special
deposit, capitalization, capital adequacy or similar requirement against assets
of, deposits with or for the account of, or credit extended by, any Lender; or

 

c.                                       Shall impose on
any Lender any other condition affecting the Credit Facility, the Revolving
Credit Note or such Lender’s obligation to advance Borrowings under the Credit
Facility;

 

and the result of any of the foregoing, as set forth in subsections
(a), (b) or (c) is to increase the cost to (or in the case of Regulation D
or reserve requirements referred to above or a successor thereto, to impose a
cost on) such Lender of making or maintaining the Credit Facility, or to reduce
the amount of any sum or rate of return received or receivable by such Lender
under the Revolving Credit Note, then within ten (10) days after demand by
such Lender (which demand shall be accompanied by a certificate setting forth
the basis of such demand), the Borrowers shall pay directly to such Lender such
additional amount or amounts as will compensate such Lender for such increased
cost (or in the case of Regulation D or reserve requirements referred to
above or a successor thereto, such costs which may be imposed upon such Lender)
or such reduction of any sum or rate of return received or receivable under the
Revolving Credit Note less the amount, if any, of the reduction of the Lenders’
tax liability to another taxing authority resulting from the payment of such
taxes.  A certificate as to any
additional amounts payable to any Lender under this Section 2.11 submitted to
the Borrowers by such Lender shall show in reasonable detail an accounting of
the amount payable and the calculations used to determine in good faith such
amount and shall be conclusive absent manifest or demonstrable error.

 

Section 2.13.                             Mitigation;
Exculpation.

 

a.                                       Each Lender
agrees that it will promptly notify the Borrowers in writing upon its becoming
aware that any payments are to become due to it under this Credit Agreement
pursuant to Section 2.11 or 2.12.  Each
Lender further agrees that it will use reasonable efforts not materially
disadvantageous to it (in its reasonable determination) in order to avoid or
minimize, as the case may be, the payment by the Borrowers of any additional
amounts pursuant to Section 2.11 or 2.12. 
Each Lender represents, to the best of its knowledge, that as of the
Closing Date no such amounts are payable to it.

 

b.                                      Borrowers shall
not be liable to any Lender for any payments under Section 2.11 or 2.12
arising to the extent of such Lender’s gross negligence or wilful misconduct or
breach of any laws (other than as a result of Borrowers’ breach), or

 

64

 

for amounts
which were incurred more than ninety (90) days prior to the date Borrowers are
notified of the incurrence of such amount.

 

Section 2.14.                             Issuance
of Letters of Credit.

 

a.                                       Any Authorized
Officer of Borrowers may from time to time request that a Standby Letter of
Credit or Commercial Letter of Credit be issued by delivering to L/C Issuer
(with a telecopy to the Agent Bank) on a Banking Business Day, at least five
(5) Banking Business Days prior to the date of such proposed issuance, an L/C
Agreement in L/C Issuer’s then standard form (consistent with the terms of the
Credit Agreement), completed to the satisfaction of L/C Issuer and such other
certificates as the L/C Issuer may reasonably request; provided, however, that
no Letter of Credit shall be issued (a) if any Default or Event of Default has
occurred and remains continuing, or (b) if after giving effect to the
issuance thereof, the aggregate Stated Amount of outstanding Letters of Credit
would exceed Ten Million Dollars ($10,000,000.00), or (c) the Stated
Amount of the requested Letter of Credit exceeds the Maximum Availability.  Each Letter of Credit shall be issued by the
L/C Issuer on the Banking Business Day specified in the Borrower’s application
therefor.  Each request for a Letter of
Credit and each Letter of Credit shall be subject to the Uniform Customs and
Practice for Documentary Credits, International Chamber of Commerce Publication
New 1994 Revision No. 500, or any successor publication then in effect.  Each Standby Letter of Credit will be issued
for a term not greater than one (1) year and shall not include any provision
for automatic renewal.  Each Commercial
Letter of Credit will be issued for a term not greater than one hundred eighty
(180) calendar days.  In no event shall
any Letter of Credit have a Stated Expiry Date later than thirty (30) days
prior to the Maturity Date.  Promptly
after receipt of each request for the issuance of a Letter of Credit and
immediately prior to the issuance thereof, L/C Issuer shall obtain telephonic
verification from Agent Bank that the amount of such request does not exceed
the then Available Borrowings.  The L/C
Issuer shall promptly notify the Agent Bank of the aggregate L/C Exposure of
outstanding Letters of Credit each time there is a change therein.

 

b.                                      Upon presentation
of a draft drawn under any Letter of Credit, L/C Issuer shall promptly notify
the Agent Bank and Borrowers of the amount under such draft and the date upon
which such draft is to be funded.  On or
before two (2) Banking Business Days following such notice (unless Borrowers
have made other arrangements acceptable to the L/C Issuer to pay the amount of
such draft in full), Borrowers shall advance to L/C Issuer the amount of such
draft from Borrowers’ available funds or shall request a Borrowing under the
Credit Facility in an amount sufficient to pay the amount of such draft in
full.  The Agent Bank, upon receipt of
such funds from the Lenders, shall automatically provide such amount to the L/C
Issuer for payment of the amount of such draft and the balance of the Borrowing
shall be deposited in immediately available funds to the Designated Deposit
Account.  In the

 

65

 

event
Borrowers fail to advance to L/C Issuer the amount of such draft from
Borrowers’ available funds or to request a Borrowing within two (2) Banking
Business Days from receipt of the notice as specified above, on the third (3rd)
Banking Business Day following Agent Bank’s receipt of such notice, Agent Bank
shall, without notice to or consent of the Borrowers and without regard to any
other conditions precedent for the making of Borrowings under the Credit
Facility, cause a Borrowing to be made and funded by the Lenders under the
Credit Facility and Lenders agree to fund their respective Pro Rata Share of
such Borrowing in the amount necessary to pay the amount of such draft in
full.  Upon the occurrence of any Event
of Default, L/C Issuer shall, without notice or further authorization or
consent of Borrowers whatsoever, be authorized to immediately cause the Cash
Collateral Account to be established and funded by Lenders with a Borrowing
advanced to Agent Bank equal to the aggregate amount of the L/C Exposure then
outstanding.  All amounts held by L/C
Issuer in the Cash Collateral Account shall be held as security for the
repayment of any L/C Reimbursement Obligation thereafter arising pursuant to
the terms of the L/C Agreement(s) and the Cash Collateral Pledge
Agreement.  Borrowings advanced by
Lenders to pay drafts drawn upon or to secure repayment of the L/C Exposure
under Letters of Credit pursuant to this subsection shall: (i) constitute
Borrowings under the Credit Facility, (ii) initially be Base Rate Loans
and (iii) be subject to all of the provisions of this Credit Agreement
concerning Borrowings under the Credit Facility, except that such Borrowings
shall be made upon demand of the Agent Bank as set forth above rather than upon
Notice of Borrowing by Borrowers and shall be made, notwithstanding anything in
this Credit Agreement to the contrary, without regard to any other conditions
precedent to the making of Borrowings under the Credit Agreement and
notwithstanding any Default or Event of Default thereunder.  All amounts paid by L/C Issuer on a draft
drawn under any Letter of Credit which has not been funded or concurrently
reimbursed by Borrowers or through a Borrowing as provided hereinabove, shall
bear interest at the Base Rate plus the Applicable Margin per annum until
repaid or reimbursed to L/C Issuer.

 

c.                                       Each Lender’s
obligation to advance Borrowings in the proportionate amount of its Syndication
Interest in the Credit Facility of any unreimbursed amounts outstanding under
any Letter of Credit pursuant hereto is several, and not joint or joint and
several.  The failure of any Lender to
perform its obligation to advance a Borrowing in a proportionate amount of such
Lender’s Syndication Interest of any unreimbursed amounts outstanding under a
Letter of Credit will not relieve any other Lender of its obligation hereunder
to advance such Borrowing in the amount of such other Lender’s proportionate
Syndication Interest of such amount, nor relieve the Lender which has failed to
fund of its obligation to fund hereunder. 
The Borrowers agree to accept the Borrowings for payment of Letters of
Credit as provided hereinabove, whether or not such Borrowings could have been
made pursuant to the terms of Article III B or any other section of the Credit
Agreement.

 

66

 

d.                                      Letters of Credit
shall be used and issued for the benefit of Borrowers for the general corporate
purposes of Borrowers relating to the Hotel/Casino Facilities or any New
Venture.

 

ARTICLE III

 

CONDITIONS
PRECEDENT TO THE CLOSING DATE

 

A.                                   Closing
Conditions.  The obligation of each
of the Banks to fund any Closing Disbursement under the Credit Facility is
subject to the following conditions precedent, each of which shall be satisfied
on or before April 4, 2003 (unless all of the Banks, in their sole and
absolute discretion, shall agree otherwise). 
The occurrence of the Closing Date is subject to and contingent upon
Agent Bank having received, in each case in form and substance reasonably
satisfactory to Agent Bank, or in the case of an occurrence, action or event,
the occurrence of, each of the following:

 

Section 3.01.                             Credit
Agreement.  Executed counterparts of
this Credit Agreement in sufficient duplicate originals for Borrowers and each
of the Banks.

 

Section 3.02.                             The
Notes.

 

a.                                       On or before the
Closing Date, the Revolving Credit Note duly executed by the Borrowers in favor
of Agent Bank shall be delivered to Agent Bank.

 

b.                                      On or before the
Closing Date, the Swingline Note duly executed by the Borrowers in favor of
Swingline Lender shall be delivered to Swingline Lender.

 

Section 3.03.                             Security
Documentation.  The Security
Documentation duly executed by each of the applicable Borrowers or other
parties thereto (except that the Financing Statements shall not be executed),
consisting of the following:

 

With Respect to the MPI Hotel/Casino
Facilities

 

a.                                       MPI Deed of
Trust;

 

b.                                      MPI Assignment of
Entitlements, Contracts, Rents and Revenues; and

 

c.                                       MPI Financing
Statements.

 

With Respect to the SGLVI Hotel/Casino
Facility

 

d.                                      SGLVI Deed of
Trust;

 

e.               SGLVI Assignment of Entitlements,
Contracts, Rents and Revenues;

 

67

 

f.                 SGLVI Financing Statements;

 

With Respect to SGRI

 

g.                                      the SGRI Loan Documents
and SGRI Security Documents;

 

With Respect to MTRI

 

h.                                      The Stock Pledges
of all issued and outstanding stock of MPI, SGLVI, SGRI, PIDI and RAI, together
with the Irrevocable Stock Powers and the originals of the stock certificates
pledged thereunder;

 

i.                                          MTRI Security
Agreement;

 

j.                                          MTRI Hawaii
Mortgage;

 

k.                                       MTRI Financing
Statement; and

 

l.                                          Green Shingle
Perfection Items;

 

With respect to all Borrowers

 

m.                                    Trademark Security
Agreement.

 

Section 3.04.                             Other
Loan Documents.  The following Loan
Documents duly executed by each of the applicable Borrowers and any other
applicable party thereto, consisting of the following shall be delivered or
caused to be delivered to Agent Bank on or before the Closing Date:

 

a.                                       Environmental
Certificate;

 

b.                                      Woodview
Citizens Bank Estoppel; and

 

c.                                       Woodview
Hillis Estoppel.

 

Section 3.05.                             Articles
of Incorporation, Bylaws, Corporate Resolutions, Certificates of Good Standing
and Closing Certificate.  On or
before the Closing Date, Agent Bank shall have received from each of the
Borrowers: (i) a Certificate of Good Standing issued by the Secretary of State
of the applicable state of incorporation and dated within thirty (30) Banking
Business Days of the Closing Date, (ii) a copy of the articles of
incorporation and by-laws certified to be true and correct by a duly Authorized
Officer of each respective Borrower, (iii) an original Certificate of
Corporate Resolution and Certificate of Incumbency executed by the Secretary of
each respective Borrower and attested to by its President, Vice President, or
Treasurer authorizing Borrowers to enter into all documents and agreements to
be executed by it pursuant to this Credit Agreement and further authorizing and
empowering the officer or officers who will execute such documents and
agreements with the authority and power to execute such

 

68

 

documents and
agreements on behalf of each respective Borrower, (iv) designation by
corporate certificate (“Authorized Officer Certificate”), substantially in the
form of the Authorized Officer Certificate marked “Exhibit F”, affixed
hereto and by this reference incorporated herein and made a part hereof, of the
officers of each respective Borrower who are authorized to give Notices of Borrowing,
Continuation/ Conversion Notices, Pricing Certificates, Compliance Certificates
and all other notices, requests, reports, consents, certifications and
authorizations on behalf of each of the Borrowers and the Borrower
Consolidation, each individually an “Authorized Officer” and collectively the
“Authorized Officers”, and (v) an original closing certificate (“Closing
Certificate”), substantially in the form of the Closing Certificate marked
“Exhibit G”, affixed hereto and by this reference incorporated herein and made
a part hereof, duly executed by an Authorized Officer of Borrowers.

 

Section 3.06.                             Opinion
of Counsel.  One or more opinions of
counsel to the Borrowers, dated as of the Closing Date and addressed to the
Agent Bank on behalf of itself and each of the Banks, together with their
respective successors and assigns, substantially in the form of the legal
opinion marked “Exhibit I”, affixed hereto and by this reference incorporated
herein and made a part hereof.

 

Section 3.07.                             Title
Insurance Policies.  As of the
Closing Date, the Title Insurance Policies (or proforma commitment for the
issuance thereof) consistent with the requirements of the Closing Instructions.

 

Section 3.08.                             Survey.  If required by Title Insurance Company as a
condition for the issuance of the MPI Title Endorsements, a current boundary
and location survey for the MPI Real Property, subject to exceptions approved
by Lenders prior to the Closing Date, delivered to Agent Bank no less than ten
(10) Banking Business Days prior to the Closing Date, which, if so required,
must (a) be certified to Agent Bank and the MPI Title Insurance Company, (b)
show the MPI Real Property to be free of encroachments, overlaps, and other
survey defects, (c) show the courses and distances of the lot lines for the MPI
Real Property, (d) show that all existing improvements are located within said
lot and building lines, and (e) show the location  of all above and below ground easements, improvements,
appurtenances, utilities, rights-of-way, water rights and ingress and egress,
by reference to book and page numbers and/or filed map reference.  On or before the Closing Date, Borrowers
shall comply with all other survey requirements of Title Insurance Companies
for the issuance of the Title Insurance Policies without reference to any
exception of title based on any survey requirement.

 

Section 3.09.                             Payment
of Taxes.  Evidence satisfactory to
Agent Bank that all past and current real and personal property taxes and
assessments which are presently due and payable applicable to the Collateral
Properties have been paid in full.

 

69

 

Section 3.10.                             Insurance.  Copies of declaration pages of each
insurance policy, certified to be true and correct in all respects by an Authorized
Officer of Borrowers, together with original binders evidencing Borrowers as
the named insured, and original certificates of insurance, loss payee and
mortgagee endorsements naming Agent Bank as mortgagee, loss payee and
additional insured as required by the insurance provisions set forth in
Section 5.09 of this Credit Agreement.

 

Section 3.11.                             Payment
of Fees.  Payment by Borrowers to
Agent Bank of the fees to the extent then due and payable on the Closing Date
as provided in Section 2.09(a) hereinabove.

 

Section 3.12.                             Reimbursement
for Expenses and Fees. 
Reimbursement by Borrowers for all reasonable fees and out-of-pocket
expenses incurred by Agent Bank in connection with the Credit Facility,
excluding, however, all Syndication Costs, but including, but not limited to,
escrow charges, title insurance premiums, environmental examinations, recording
fees, appraisal fees, reasonable attorney’s fees of Henderson & Morgan, LLC
and insurance consultant fees, and all other like fees and expenses remaining unpaid
as of the Closing Date to the extent then due and payable on the Closing Date,
provided that the amount then invoiced shall not thereafter preclude Borrowers’
obligation to pay such costs and expenses relating to the closing of the Credit
Facility following the Closing Date or to reimburse Agent Bank for the payment
thereof.

 

Section 3.13.                             Schedules
of Spaceleases and Equipment Leases and Contracts.  The Schedules of Spaceleases
(Schedules 4.15(A) and (B)) and Equipment Leases and Contracts (Schedules 4.16(A)
and (B)) in each instance setting forth the name of the other party thereto, a
brief description of each spacelease, equipment lease and contract and the
commencement and ending date thereof.

 

Section 3.14.                             Phase
I Environmental Site Assessments.

 

a.                                       A Phase I
Environmental Site Assessment or Assessments of the Collateral Properties
prepared in conformance with the scope and limitations of ASTM Standard
Designation E1527-93 and approved by Agent Bank.  The Phase I Environmental Site Assessments delivered to
Agent Bank in connection with the Existing Credit Facility shall be deemed to
satisfy this requirement.  Any
recommended action shall have been completed by Borrowers.

 

b.                                      Borrowers hereby
confirm the representations contained in Sections 2.1 and 2.2 of the
Environmental Certificate are true and correct in all respects, except with
respect to the matters disclosed on the Schedule of Significant Litigation.

 

70

 

Section 3.15.                             Evidence
of Right to Occupancy of Collateral Properties.  A copy of the permanent certificate of occupancy issued by each
applicable Governmental Authority, evidencing the right of the Borrower
Consolidation to use and hold open for the use and occupancy of the public of
the Hotel/Casino Facilities.

 

Section 3.16.                             Gaming
Permits.  Copies of those Gaming
Permits issued by each applicable Gaming Authority evidencing the right of the
Borrower Consolidation to conduct pari-mutuel wagering on live horseracing and
simulcast horse and greyhound racing at the MPI Hotel/Casino Facilities and to
conduct gaming activities and games of chance at each of the Hotel/Casino
Facilities.

 

Section 3.17.                             Financial
Statements.  Audited financial
statements of the Borrower Consolidation for the most recently ended Fiscal
Year, to the extent the same have been prepared and are available.

 

Section 3.18.                             Schedule
of all Significant Litigation.  A
Schedule of Significant Litigation (Schedule 3.18) involving any member of
the Borrower Consolidation, in each instance setting forth the names of the
other parties thereto, a brief description of such litigation, whether or not
such litigation is covered by insurance and, if so, whether the defense thereof
and liability therefor has been accepted by the applicable insurance company
indicating whether such acceptance of such defenses with or without a
reservation of rights, the commencement date of such litigation and the amount
sought to be recovered by the adverse parties thereto or the amount which is
otherwise in controversy.

 

Section 3.19.                              No
Injunction or Other Litigation.  No
law or regulation shall prohibit, and no order, judgment or decree of any
Governmental Authority shall, and no litigation shall be pending or threatened
which in the reasonable judgment of the Agent Bank would or would reasonably be
expected to, enjoin, prohibit, limit or restrain the execution and delivery of
this Credit Agreement or the making of any advance under the Credit Facility.

 

Section 3.20.                             Additional
Documents and Statements.  As of the
Closing Date such additional documents, affidavits, certificates and opinions
as Requisite Lenders may reasonably require to insure compliance with this
Credit Agreement.  The statements set
forth in Section 3.23 shall be true and correct.

 

Section 3.21.                             Woodview
Loan Documents, Logan Purchase Agreements, Green Shingle Loan Documents, SGRI
Loan Documents, Scioto Merger Agreement and PIDI Options.

 

a.                                       A true and
correct copy of the Woodview Loan Documents and of all amendments and
modifications thereto;

 

71

 

b.                                      A true and
correct copy of the Logan Purchase Agreements and of all amendments and
modifications thereto;

 

c.                                       Each of the
following with respect to the Green Shingle Loan:

 

(i)                                     the
originals of each of the Green Shingle Note, Green Shingle Loan Agreement,
Green Shingle Security Documents and the original stock certificates of Tecnica
stock referenced in the Tecnica Stock Pledge (collectively, the “Green Shingle
Loan Documents”);

 

(ii)                                  Such
endorsements and assignments of the Green Shingle Loan Documents as are
reasonably required by Agent Bank and its attorneys to perfect a first position
security interest in the Green Shingle Loan Documents as additional collateral
for the Credit Facility;

 

d.                                      The duly executed
originals of each of the RRLLC Note, RRLLC Deed of Trust and RRLLC Guarantys;

 

e.                                       A true and
correct copy of the Scioto Merger Agreement and all amendments, modifications,
schedules, attachments and addenda relating thereto; and

 

f.                                         A true and
correct copy of each PIDI Option.

 

Section 3.22.                             Issuance
of Senior Unsecured Notes.  On or
before the Closing Date: (i) the Senior Unsecured Notes Effective Date
shall have occurred, (ii) MTRI shall have issued the Senior Unsecured
Notes in an aggregate face amount of no less than One Hundred Twenty-Five
Million Dollars ($125,000,000.00) bearing interest at no greater than eleven
percent (11.0%) per annum, and (iii) Agent Bank shall have received a true
and correct final execution copy of the Senior Unsecured Indenture.  Additionally, as of the Closing Date, the
Credit Agreement shall constitute the “Credit Agreement” as defined in the
Senior Unsecured Indenture and the incurrence and maintenance of the Bank Facilities
shall be permitted under the Senior Unsecured Indenture as secured Indebtedness
of the Borrower Consolidation.

 

B.                                     Conditions
Precedent to all Borrowings.  The
obligation of each Lender and Agent Bank to make any Borrowing requested to be
made on any Funding Date, except Borrowings made upon the demand of Agent Bank
for the purpose of funding repayment of Swingline Advances and/or L/C
Reimbursement Obligations, is

 

72

 

subject to the
occurrence of each of the following conditions precedent as of such Funding
Date:

 

Section 3.23.                             Notice
of Borrowing.  With respect to any
Borrowing, the Agent Bank shall have received in accordance with
Section 2.03 on or before such Funding Date an original and duly executed
Notice of Borrowing or facsimile copy thereof, to be promptly followed by an
original.

 

Section 3.24.                             Certain
Statements.  On the Closing Date and
as of the Funding Date the following statements shall be true and correct:

 

a.                                       The
representations and warranties with respect to the Borrowers contained in
Article IV hereof (other than representations and warranties which expressly
speak only as of a different date which shall be true and correct as of such
date) are true and correct on and as of the Funding Date and as of the Closing
Date in all material respects as though made on and as of that date, except to
the extent that such representations and warranties are not true and correct as
a result of a change which is permitted by this Credit Agreement or by any
other Loan Document, or which is otherwise consented to by Requisite Lenders;

 

b.                                      The
representations and certifications contained in the Environmental Certificate
are true and correct in all material respects (other than representations and
warranties which expressly speak only as of a different date which shall be
true and correct as of such date);

 

c.                                       Since the date
of the most recent financial statements referred to in Section 3.17 and
5.08(b), no Material Adverse Change shall have occurred; and

 

d.                                      No event has
occurred or as a result of any Borrowings contemplated hereby would occur and
is continuing, or would result from the making thereof, which constitutes a
Default or Event of Default hereunder.

 

Section 3.25.                             Gaming
Permits.  The Borrower Consolidation shall have all Gaming Permits
material to or required for the conduct of its gaming businesses and the
conduct of games of chance at the MPI Hotel/Casino Facilities and the SGLVI
Hotel/Casino Facility and such Gaming Permits shall not then be suspended,
enjoined or prohibited (for any length of time) by any Gaming Authority or any
other Governmental Authority.

 

Section 3.26.                             Compliance
and Pricing Certificates.  A
Compliance Certificate and a Pricing Certificate each prepared on a projected
pro forma basis for the Fiscal Quarter ending December 31, 2002.

 

73

 

ARTICLE IV

 

REPRESENTATIONS
AND WARRANTIES

 

To induce Banks to enter into this Credit
Agreement, Borrowers make the following representations and warranties:

 

Section 4.01.                             Organization;
Power and Authorization.  MTRI is a
corporation duly organized and validly existing under the laws of the State of
Delaware.  SGLVI and SGRI are each a
corporation duly organized and validly existing under the laws of the State of
Nevada.  MPI is a corporation duly
organized and validly existing under the laws of the State of West
Virginia.  PIDI is a corporation duly
organized and validly existing under the laws of the Commonwealth of
Pennsylvania.  RAI is a corporation duly
organized and validly existing under the laws of the State of Ohio.  Each Borrower (i) has all requisite
corporate power, authority and legal right to execute and deliver each
document, agreement or certificate to which it is a party or by which it is
bound in connection with the Credit Facility, to consummate the transactions
and perform its obligations hereunder and thereunder, and to own its properties
and assets and to carry on and conduct its business as presently conducted or
proposed to be conducted, and (ii) has taken all necessary corporate action to
authorize the execution, delivery and performance of this Credit Agreement and
the other Loan Documents to which it is a party or by which it is bound and to
consummate the transactions contemplated hereunder and thereunder.

 

Section 4.02.                             No
Conflict With, Violation of or Default Under Laws or Other Agreements.  Neither the execution and delivery of this
Credit Agreement, the Revolving Credit Note or any other Loan Document, or any
other agreement, certificate or instrument to which any Borrower is a party or
by which it is bound in connection with the Credit Facility, nor the
consummation of the transactions contemplated hereunder or thereunder, nor the
compliance with or performance of the terms and conditions herein or therein,
is prevented by, limited by, conflicts in any material respect with, or will
result in a material breach or violation of, or a material default (with due
notice or lapse of time or both) under, or the creation or imposition of any
lien, charge, or encumbrance of any nature whatsoever upon any of their
respective property or assets by virtue of, the terms, conditions or provisions
of (a) any indenture, evidence of indebtedness, loan or financing  agreement, or other agreement or instrument
of whatever nature to which any Borrower is bound, or (b) any provision of any
existing law, rule, regulation, order, writ, injunction or decree of any court
or Governmental Authority to which Borrowers are subject.

 

Section 4.03.                             Litigation.  Except as disclosed on the Schedule of
Significant Litigation delivered in connection with Section 3.18, to the
best knowledge of Borrowers, after due inquiry and investigation, there is no
action, suit, proceeding, inquiry, hearing or investigation pending or
threatened, in any court of law or in equity,

 

74

 

or before any
Governmental Authority, which reasonably would be expected to (a) result in any
Material Adverse Change in the operation of the Hotel/Casino Facilities or in
its business, financial condition, properties or operations, (b) materially
adversely affect the Borrowers’ ability to perform their respective obligations
under the Credit Agreement and the other Loan Documents, or (c) materially
adversely affect the validity or enforceability of this Credit Agreement and
the other Loan Documents.  To the best
knowledge of Borrowers, after due inquiry and investigation, no Borrower is in
violation of or default with respect to any order, writ, injunction, decree or
demand of any Governmental Authority.

 

Section 4.04.                             Agreements
Legal, Binding, Valid and Enforceable. 
This Credit Agreement, the Revolving Credit Note, the Security
Documentation and all other Loan Documents, when executed and delivered by
Borrowers in connection with the Credit Facility will constitute legal, valid
and binding obligations of Borrowers, enforceable against Borrowers in
accordance with their respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
relating to or affecting the enforcement of creditors’ rights and the exercise
of judicial discretion in accordance with general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or
at law).

 

Section 4.05.                             Information
and Financial Data Accurate; Financial Statements; No Adverse Event.  To the best of Borrowers’ knowledge,
information and belief, all information and financial and other data previously
furnished in writing by Borrowers in connection with the Credit Facility was
true, correct and complete in all material respects as of the date furnished
(unless subsequently corrected prior to the date hereof), and there has been no
Material Adverse Change with respect thereto to the date of this Credit
Agreement since the dates thereof.  No
information has been omitted which would make the information previously
furnished in such financial statements to Banks misleading or incorrect in any
material respect to the date of this Credit Agreement.  Any and all financial statements heretofore
furnished to Banks by Borrowers: (a) present fairly the financial position of
Borrowers as of their respective dates and the results of operations and
changes in financial position for the periods to which they apply, and (b) have
been prepared in conformity with GAAP applied on a consistent basis throughout
the periods involved.  Since the date of
the financial statements referred to in this Section 4.05, there has been no
Material Adverse Change in the financial condition, assets, liabilities,
business or operations of Borrowers.

 

Section 4.06.                             Governmental
Approvals.  All timely consents,
approvals, orders or authorizations of, or registrations, declarations, notices
or filings with any Governmental Authority which are required in connection
with the valid execution and delivery of this Credit Agreement and the other
Loan Documents by Borrowers and the carry-out or performance of any of the
transactions required or contemplated hereunder, or thereunder, by Borrowers,
have been obtained or accomplished and are in full force

 

75

 

and effect, or
can be obtained or accomplished by Borrowers. 
To the best of Borrowers’ knowledge, all timely consents, approvals,
orders or authorizations of, or registrations, declarations, notices or filings
with any Governmental Authority which are required by Borrowers in connection
with the use and operation of the MPI Hotel/Casino Facilities and SGLVI
Hotel/Casino Facility have been obtained or accomplished and are in full force
and effect.

 

Section 4.07.                             Payment
of Taxes.  To the best of Borrowers’
knowledge, Borrowers have duly filed or caused to be filed all federal, state
and local tax reports and returns which are required to be filed by them and
have paid or made provisions for the payment of, all material taxes,
assessments, fees and other governmental charges which have or may have become
due pursuant to said returns or otherwise pursuant to any assessment received
by Borrowers except such taxes, assessments, fees or other governmental
charges, if any, as are being contested in good faith by Borrowers by
appropriate proceedings and for which Borrowers have maintained adequate
reserves for the payment thereof in accordance with GAAP.

 

Section 4.08.                             Title
to Properties.  To the best of
Borrowers’ knowledge, Borrowers shall have good and marketable title to the
Collateral Properties as of the Closing Date and at all times during the term
of the Credit Facility (including, without limitation, the Logan Primary Parcel
subsequent to the Logan Primary Parcel Closing and the Logan Filly Parcel
subsequent to the Logan Filly Parcel Closing). 
Each of the Borrowers has good and marketable title to:  (a) all of its properties and assets
reflected in the most recent financial statements referred to in Section 4.05
hereof as owned by them (except those properties and assets disposed of since
the date of said financial statements in the ordinary course of business or
those properties and assets which are no longer used or useful in the conduct
of its businesses), including, but not limited to, Borrowers’ interest in
patents, trademarks, tradenames, servicemarks, and licenses relating to or
pertaining to the Collateral Properties or the Hotel/Casino Facilities, and
(b) all properties and assets acquired by them subsequent to the date of
the most recent financial statements referred to in Section 4.05
hereof.  All such properties and assets
are not subject to any liens, encumbrances or restrictions except Permitted
Encumbrances.  All roads, easements and
rights of way necessary for the full utilization of the Collateral Properties
have been completed and/or obtained.

 

Section 4.09.                             No
Untrue Statements.  To the best of Borrowers’ knowledge, all
statements, representations and warranties made by Borrowers in this Credit
Agreement, any other Loan Document and any other agreement, document,
certificate or instrument previously furnished or to be furnished by Borrowers
to Banks pursuant to the provisions of this Credit Agreement, at the time they
were made and on and as of the Closing Date: (a) are and shall be true, correct
and complete in all material respects, (b) do not and shall not contain any
untrue statement of a material fact, and (c) do not and shall not omit to state
a material fact, the absence of which

 

76

 

makes the
information contained herein or therein materially misleading or
incomplete.  Borrowers understand that
all such statements, representations and warranties shall be deemed to have
been relied upon by Banks as a material inducement to establish the Credit
Facility.

 

Section 4.10.                             Brokerage
Commissions.  No person is entitled
to receive any brokerage commission, finder’s fee or similar fee or payment in
connection with the extensions of credit contemplated by this Credit
Agreement.  No brokerage or other fee,
commission or compensation is to be paid by Banks with respect to the
extensions of credit contemplated hereby and Borrowers agree to indemnify Banks
against any such claims for brokerage fees or commissions and to pay all
expenses including, without limitation, reasonable attorney’s fees incurred by
Banks in connection with the defense of any action or proceeding brought to
collect any such brokerage fees or commissions.

 

Section 4.11.                             No
Defaults.  No Borrower has received
any notice, declaration or similar correspondence or communication, oral or
written, evidencing, declaring or claiming a violation of any applicable law
and/or regulations, the violation of which materially and adversely affects the
business, financial condition or operations of the Hotel/Casino
Facilities.  Borrowers are not in
violation or default (nor is there any waiver in effect which, if not in
effect, would result in a violation or default) in any material and adverse
respect under any indenture, evidence of indebtedness, loan or financing
agreement or other agreement or instrument of whatever nature to which they are
a party or by which they are bound (except for any defaults previously brought
to Lenders’ attention in writing, for which Borrowers have received a waiver
from Requisite Lenders), a default under which would reasonably be expected to
result in a Material Adverse Change.

 

Section 4.12.                             Employee
Retirement Income Security Act of 1974. 
No Reportable Event has occurred and is continuing with respect to any
Pension Plan under ERISA, that gives rise to liabilities that would constitute
a Material Adverse Change.

 

Section 4.13.                             Availability
of Utility Services.  All utility
services and facilities necessary for the Hotel/Casino Facilities and the
Collateral Properties including, without limitation, electrical, water, gas and
sewage services and facilities are available at the boundaries of the Collateral
Properties.

 

Section 4.14.                             Policies
of Insurance.  As of the Closing
Date, each of the copies of the declaration pages, original binders and
certificates of insurance evidencing the Policies of Insurance relating to the
Hotel/Casino Facilities delivered to Agent Bank by Borrowers (i) is a true,
correct and complete copy of the respective original thereof as in effect on
the date hereof, and no amendments or modifications of any of said documents or
instruments not included in such copies have been made, and (ii) has not been
terminated and is in full force and effect. 
Borrowers are not in default in the

 

77

 

observance or
performance of their respective obligations under said documents and
instruments, and Borrowers have done all things required to be done as of the
Closing Date to keep unimpaired their respective rights thereunder.

 

Section 4.15.                             Spaceleases.  Schedules of all executed Spaceleases
pertaining to the Hotel/Casino Facilities, or any portion thereof, in existence
as of the Closing Date, are set forth on Schedules 4.15(A) and (B)
attached hereto.

 

Section 4.16.                             Equipment
Leases and Contracts.  Schedules of
all executed Equipment Leases and Contracts pertaining to the Hotel/Casino
Facilities or any portion thereof, in existence as of the Closing Date, are set
forth on Schedules 4.16 (A) and (B) attached hereto.

 

Section 4.17.                             Gaming
Permits and Approvals.  All Gaming
Permits required to be held by Borrowers are current and in good standing and
Borrowers presently hold all Gaming Permits necessary for the continued
operation of the Hotel/Casino Facilities.

 

Section 4.18.                             Environmental
Certificate.  The representations
and certifications contained in the Environmental Certificate are true and
correct in all material respects.

 

Section 4.19.                             Investment
Company Act.  Each Borrower is
neither an “investment company” nor a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 4.20.                             Public
Utility Holding Company Act.  Each
Borrower is neither a “holding company,” nor a “subsidiary company” of a
“holding company,” nor an “affiliate” of a “holding company” nor of a
“subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

 

Section 4.21.                             Labor
Relations.  There is no strike or
work stoppage in existence, or to the best knowledge of Borrowers threatened,
involving any Borrower or the Hotel/Casino Facilities that reasonably would be
expected to result in a Material Adverse Change.

 

Section 4.22.                             Trademarks,
Patents, Licenses, Franchises, Formulas and Copyrights.  Except as disclosed in Schedule 4.22,
each of the Borrowers owns all the patents, trademarks, permits, service marks,
trade names, copyrights, licenses, franchises and formulas, or has a valid
license or sublicense of rights with respect to the foregoing, and has obtained
assignments of all leases and other rights of whatever nature, necessary for
the present conduct of its respective businesses, without any known conflict
with the rights of others which, or the failure to obtain which, as the case
may be, could reasonably be expected to result in a Material Adverse Change on
the

 

78

 

business,
operations, property, assets or condition (financial or otherwise) of
Borrowers.  Each of the patents,
trademarks, servicemarks, tradenames and copyrights owned by Borrowers under
the common law or which is registered with any Governmental Authority is set
forth on Schedule 4.22, attached hereto.

 

Section 4.23.                             Contingent
Liabilities.  As of the Closing
Date, Borrowers have incurred no material Contingent Liabilities (any
Contingent Liability in excess of One Million Dollars ($1,000,000.00) being
deemed material) other than those described on Schedule 4.23.

 

Section 4.24.                             Subsidiaries.  As of the Closing Date, no member of the
Borrower Consolidation has any Subsidiaries that are not members of the
Borrower Consolidation, other than those Subsidiaries existing as of the
Closing Date which are described on the Schedule of Restricted and Unrestricted
Subsidiaries attached hereto as Schedule 4.24.

 

Section 4.25.                             Woodview
Loan Documents, Logan Purchase Agreements, Green Shingle Loan Documents, SGRI
Loan Documents, Scioto Merger Agreement and PIDI Options.

 

79

 

a.                                       The copies of
the Woodview Loan Documents and Logan Purchase Agreements which have been
delivered to Agent Bank in accordance with Section 3.21(a) and (b) are
true and correct copies of the originals thereof.

 

b.                                      The Green Shingle
Loan Documents and the SGRI Loan Documents which have been delivered to Agent
Bank in accordance with Section 3.21(c) and (d), respectively, are
originals.

 

c.                                       The copy of the
Scioto Merger Agreement and all other amendments, attachments and addenda which
have been delivered to Agent Bank in accordance with Section 3.21(e) are
true and correct copies of the originals thereof.

 

d.                                      The copies of the
PIDI Options which have been delivered to Agent Bank in accordance with
Section 3.21(f) are true and correct copies of the originals thereof.

 

e.                                       The Woodview
Loan Documents, Logan Purchase Agreement, Green Shingle Loan Documents, SGRI
Loan Documents, Scioto Merger Agreement and PIDI Options are all in full force
and effect, and none of them have been amended or otherwise modified except as
set forth by documents delivered to Agent Bank in accordance with Section 3.21.

 

Section 4.26.                             Pledged
Stock.  The stock certificates
delivered to Agent Bank in connection with the Stock Pledges represent one
hundred percent (100%) of all of the issued and outstanding stock of MPI,
SGLVI, SGRI, PIDI and RAI.

 

Section 4.27.                             Senior
Unsecured Indenture.  The copy of
the Senior Unsecured Indenture and all modifications and amendments thereto (if
any) which have been delivered to Agent Bank in accordance with Section 3.22 is
a true, correct and complete copy of the respective original thereof, as in
effect on the Closing Date, and no amendments or modifications have been made
to such Senior Unsecured Indenture, except as set forth by documents delivered
to Agent Bank in accordance with said Section 3.22 or otherwise reasonably
approved in writing by Requisite Lenders. 
The Senior Unsecured Indenture, as amended, has not been terminated and
is in full force and effect.  The
Borrower Consolidation is not in default in the observance or performance of
any of its material obligations under the Senior Unsecured Indenture and has
done all things required to be done as of the Closing Date to keep unimpaired
its rights thereunder.

 

ARTICLE V

 

GENERAL
COVENANTS OF BORROWERS

 

To induce the Banks to enter into this Credit
Agreement, Borrowers covenant to Banks as follows:

 

80

 

Section 5.01.                             FF&E.  The Borrower Consolidation shall furnish,
fixture and equip the Hotel/Casino Facilities with FF&E it reasonably deems
appropriate for the operation of the Hotel/Casino Facilities.  All FF&E that is purchased and installed
in the Hotel/Casino Facilities shall be purchased free and clear of any liens,
encumbrances or claims, other than Permitted Encumbrances.

 

Section 5.02.                             Permits;
Licenses and Legal Requirements. 
Borrowers shall comply in all material respects with and keep in full
force and effect, as and when required, all Gaming Permits and all material
permits, licenses and approvals obtained from any Governmental Authorities
which are required for the operation and use of the MPI Hotel/Casino Facilities
and SGLVI Hotel/Casino Facility. 
Borrowers shall comply in all material respects with all applicable
material existing and future laws, rules, regulations, orders, ordinances and
requirements of all Governmental Authorities, and with all recorded restrictions
affecting the Collateral Properties.

 

Section 5.03.                             Protection
Against Lien Claims.  Borrowers
shall promptly pay and discharge or cause to be paid and discharged all claims
and liens for labor done and materials and services supplied and furnished in connection
with the Hotel/Casino Facilities in accordance with this Section 5.03, except
such claims and liens, if any, as are being contested in good faith by
Borrowers by appropriate proceedings and for which Borrowers have maintained
adequate reserves for the payment thereof in accordance with GAAP.  If any mechanic’s lien or materialman’s lien
shall be recorded, filed or suffered to exist against the Collateral Properties
or any of them or any interest therein by reason of work, labor, services or
materials supplied, furnished or claimed to have been supplied and furnished in
connection with the Hotel/Casino Facilities, upon Borrowers receipt of written
notice from Agent Bank demanding the release and discharge of such lien, said
lien or claim shall be paid, released and discharged of record within ninety
(90) days following its receipt of such notice, or, in lieu of such payment
Borrowers may (i) with respect to the SGLVI Hotel/Casino Facility cause
said mechanic’s lien or materialman’s lien to be released of record pursuant to
the provisions set forth in the Nevada Revised Statutes 108.2413, et. seq.,
within one hundred twenty (120) days of the date of such notice; and (ii) to
the extent that any such mechanic’s lien or materialman’s lien shall be recorded,
filed or suffered to exist in the State of West Virginia, Borrowers shall cause
said mechanic’s lien to be released of record pursuant to a bonding or similar
statutory procedure under the laws of the State of West Virginia, which
statutory procedures shall be reasonably acceptable to Agent Bank and
accomplished within one hundred twenty (120) days of the date of such notice,
except that Borrowers shall not be required to provide for release of the
J&J Drywall Lien so long as the J&J Drywall Insurance Coverage remains
of full force and effect and the J&J Drywall Lien claimant has not
commenced litigation or other judicial proceeding for the enforcement of the
J&J Drywall Lien.

 

81

 

Section 5.04.                             Logan
Property.

 

a.                                       Concurrently, or
substantially concurrent, with occurrence of the Logan Primary Parcel Closing,
MPI shall execute and deliver, or cause the execution and delivery of, such
documents, and take such actions (including without limitation the purchase of
appropriate title insurance coverage) as may be required in the reasonable
discretion of Agent Bank in order to: (i) make and comply with each of the
New Acquisition Certifications, (ii) cause the Logan Primary Parcel to be
encumbered as Collateral hereunder subject only to MPI Permitted Encumbrances;
and (iii) provide Agent Bank with adequate assurances of such encumbrance
and priority.

 

b.                                      Concurrently, or
substantially concurrent, with occurrence of the Logan Filly Parcel Closing,
MPI shall execute and deliver, or cause the execution and delivery of, such
documents, and take such actions (including without limitation the purchase of
appropriate title insurance coverage) as may be required in the reasonable
discretion of Agent Bank in order to: (i) make and comply with each of the
New Acquisition Certifications, (ii) cause the Logan Filly Parcel to be
encumbered as Collateral hereunder subject only to MPI Permitted Encumbrances;
and (iii) provide Agent Bank with adequate assurances of such encumbrance
and priority.

 

Section 5.05.                             No
Change in Character of Business or Location of Chief Executive Office.  At all times throughout the term of the
Credit Facility (a) the chief executive office of Borrowers shall be
located at State Route 2, South, P.O. Box 356, Chester, West Virginia 26034;
provided, however, Borrowers shall be entitled to move their chief executive
office to another location upon no less than thirty (30) days prior written
notice to Agent Bank, (b) the Hotel/Casino Facilities shall be operated by the
Borrower Consolidation, and (c) Borrowers shall not effect a material
change in the nature and character of the business at the Hotel/Casino
Facilities as presently conducted and as presently contemplated and disclosed
to Banks.

 

Section 5.06.                             Preservation
and Maintenance of Properties and Assets; Acquisition of Additional Property.

 

a.                                       At all times
throughout the term of the Credit Facility, (i) the Borrower Consolidation
shall operate, maintain and preserve all rights, privileges, franchises, licenses,
Gaming Permits and other properties and assets necessary to conduct its
businesses and the Hotel/Casino Facilities, in accordance with all applicable
governmental laws, ordinances, approvals, rules and regulations and
requirements, including, but not limited to, zoning, sanitary, pollution,
building, environmental and safety laws and ordinances, rules and regulations
promulgated thereunder, and (ii) Borrowers shall not consolidate with, remove,
demolish, materially alter, discontinue the use of, sell, transfer, assign,
hypothecate or otherwise dispose of to any Person, any part of its properties
and assets necessary for the continuance of its business, as presently
conducted and as presently contemplated, other than in the normal course of

 

82

 

business,
alterations or modifications as are reasonably expected to increase the value
of the Collateral, or as otherwise permitted pursuant to this Credit Agreement.

 

b.                                      Furthermore, in
the event any Borrower, or any Affiliate and/or Related Entity thereof, shall
acquire any other real property or rights to the use of real property which is:
(i) adjacent to any of the Collateral Properties and used in a material
manner in connection with the use and/or operation at the Collateral
Properties, the Hotel/Casino Facilities, or any of them, or (ii) if not so
adjacent, necessary and required for the use and operation of such Collateral
Property, Hotel/Casino Facilities, or any of them, Borrowers shall concurrently
with the acquisition of such real property or the rights to the use of such
real property, execute or cause the execution of such documents as may be
necessary to add such real property or rights to the use of real property as
Collateral under the Bank Facilities, together with each of the New Acquisition
Certifications.

 

c.                                       Concurrently, or
substantially concurrent with closing of any MPI Route 2 Condemnation,
Agent Bank shall cause: (i) any MPI Route 2 Condemnation Property,
which was subject to such MPI Route 2 Condemnation, to be released from
the MPI Security Documents; and (ii) the MPI Security Documents to be
subordinated to any MPI Route 2 Condemnation Easements which were subject
to such MPI Route 2 Condemnation; in each case pursuant to such
documentation and subject to such conditions as are acceptable to Agent Bank,
in its discretion.

 

Section 5.07.                             Repair
of Properties and Assets.  At all
times throughout the term of the Credit Facility, Borrowers shall, at their own
cost and expense, (a) maintain, preserve and keep in a manner consistent with
hotel and gaming casino operating practices, as the case may be, applicable to
hotel/casino operations operating in the jurisdictions in which such properties
are located, its assets and properties, including, but not limited to, the
Collateral Properties and all FF&E owned or leased by Borrowers in good and
substantial repair, working order and condition, ordinary wear and tear
excepted, (b) from time to time, make or cause to be made, all necessary and
proper repairs, replacements, renewals, improvements and betterments thereto,
and (c) from time to time, make such substitutions, additions, modifications
and improvements as may be necessary and as shall not impair the structural
integrity, operating efficiency and economic value of said assets and
properties.  All alterations,
replacements, renewals, or additions made pursuant to this Section 5.07 shall
become and constitute a part of said assets and property and subject, inter
alia, to the provisions of Section 5.01 and subject to the lien of the Loan
Documents.

 

Section 5.08.                             Financial
Statements; Reports; Certificates and Books and Records.  Until Credit Facility Termination, Borrowers
shall, unless the Agent Bank (with the written approval of the Requisite Lenders)
otherwise consents, at Borrowers’ sole expense, deliver to the Agent Bank and
each of the Lenders a full and complete

 

83

 

copy of each
of the following and shall comply with each of the following financial
requirements:

 

a.                                       Monthly and
Quarterly Financial Reporting.

 

(i)                                     As
soon as practicable, and in any event within twenty (20) days after the end of
each calendar month (including the last calendar month of each Fiscal Year),
the consolidated and consolidating balance sheet, income statement, statement
of cash flows, statement of retained earnings and operating statement for the
calendar month under review and reflecting year-to-date performance of the
Borrower Consolidation and a comparison of the financial performance of the
Borrower Consolidation to the prior Fiscal Year’s operations and projected
results from operations at the Hotel/Casino Facilities (in each case reconciled
with year end audited statements and compared to budget and prior year period)
of the Borrower Consolidation all in reasonable detail.  Such financial statements shall be certified
by an Authorized Officer of the Borrower Consolidation as fairly presenting the
financial condition, results of operations and cash flows of the Borrower
Consolidation in accordance with GAAP (other than footnote disclosures) as at
such date and for such periods, subject only to normal year-end accruals and
audit adjustments;

 

(ii)                                  As
soon as practicable, and in any event within forty-five (45) days after the end
of each Fiscal Quarter (including the fourth Fiscal Quarter in any Fiscal
Year), the consolidated and consolidating balance sheet, income statement,
statement of cash flows, statement of retained earnings and operating statement
for the Fiscal Quarter under review and reflecting year-to-date performance of
the Borrower Consolidation and a comparison of the financial performance of the
Borrower Consolidation to the prior Fiscal Year’s operations and projected
results from operations at the Hotel/Casino Facilities (in each case reconciled
with year end audited statements and compared to budget and prior year period)
of the Borrower Consolidation all in reasonable detail.  Such financial statements shall be certified
by an Authorized Officer of the Borrower Consolidation as fairly presenting the
financial condition, results of operations and cash flows of the Borrower
Consolidation in accordance with GAAP (other than footnote disclosures) as at
such date and for such periods, subject only to normal year-end accruals and
audit adjustments;

 

84

 

b.                                      Pricing
Certificate.  As soon as
practicable, and in any event within forty-five (45) days after the end of each
Fiscal Quarter (including the fourth (4th) Fiscal Quarter in any Fiscal Year),
a pricing certificate in the form marked “Exhibit E”, affixed to the
Credit Agreement and by this reference incorporated herein and made a part
hereof (the “Pricing Certificate”) setting forth a preliminary calculation of
the Leverage Ratio as of the last day of such Fiscal Quarter, and providing
reasonable detail as to the calculation thereof, which calculations shall be
based on the preliminary unaudited financial statements of the Borrower
Consolidation for such Fiscal Quarter, and as soon as practicable thereafter,
in the event of any material variance in the actual calculation of the Leverage
Ratio from such preliminary calculation, a revised Pricing Certificate setting
forth the actual calculation thereof; provided, however, that in the event that
Borrowers do not deliver a Pricing Certificate when due, then until (but only
until) such Pricing Certificate is delivered as provided herein, the Leverage
Ratio shall be deemed, for the purpose of determining the Applicable Margin, to
be greater than 2.5 to 1.0 and the Applicable Margin determined with respect
thereto.

 

c.                                       Annual
Financial Reporting.  As soon as
practicable, and in any event within ninety (90) days after the end of each
Fiscal Year, (i) the consolidated and consolidating balance sheet, income
statement, statement of retained earnings and cash flows (reconciled with year
end audited statements) of the Borrower Consolidation as at the end of such
Fiscal Year, all in reasonable detail. 
Such financial statements shall be prepared in accordance with GAAP and
shall be accompanied by a report of independent public accountants of
recognized standing selected by Borrowers and reasonably satisfactory to the
Agent Bank (it being understood that Ernst & Young, LLP or any “Big 5”
accounting firm shall be automatically deemed satisfactory to the Agent Bank),
which report shall be prepared in accordance with generally accepted auditing
standards as at such date, and shall not be subject to any qualifications or
exceptions as to the scope of the audit nor to any other qualification or
exception determined by the Requisite Lenders in their good faith business
judgment to be adverse to the interests of the Banks.  Such accountants’ report shall be accompanied by a certificate
stating that, in making the examination pursuant to generally accepted auditing
standards necessary for the certification of such financial statements and such
report, such accountants have obtained no knowledge of any Default or, if, in
the opinion of such accountants, any such Default shall exist, stating the
nature and status of such Default, and stating that such accountants have
reviewed the Financial Covenants as at the end of such Fiscal Year (which shall
accompany such certificate) under Sections 6.01 through 6.07, have read such
Sections (including the definitions of all defined terms used therein) and that
nothing has come to the attention of such accountants in the course of such
examination that would cause them to believe that the same were not calculated
by the Borrower Consolidation in the manner prescribed by this Credit
Agreement.  Such financial statements
shall be certified by an Authorized Officer of the Borrower Consolidation in
the same manner as required with respect to financial statements delivered
pursuant to Section 5.08(a);

 

85

 

d.                                      Budgets and
Projections.  As soon as
practicable, and in any event no later than fifteen (15) days following the
commencement of each Fiscal Year, a budget (including a Capital Expenditure
budget) and projection by Fiscal Quarter for that Fiscal Year and by Fiscal
Year for the next four (4) succeeding Fiscal Years, including for the
first such Fiscal Year, projected consolidated and consolidating balance
sheets, statements of operations and statements of cash flow and, for the
second (2nd) and third (3rd) such Fiscal Years, projected consolidated and
consolidating condensed balance sheets and statements of operations and cash
flows, of the Borrower Consolidation, all in reasonable detail.

 

e.                                       Compliance
Certificate.  Concurrently with the
financial statements and reports required pursuant to Sections 5.08(a)(ii) and
5.08(c), Compliance Certificate signed by an Authorized Officer;

 

f.                                         SEC
Reporting.  Promptly after the same
are available, copies of each annual report, proxy or financial statement or
other report or communication that shall have been sent to the stockholders of
MTRI, and copies of all annual, regular, periodic and special reports
(including, without limitation, each 10Q and 10K report) and registration
statements which MTRI shall have filed or be required to file with the
Securities and Exchange Commission under Section 13 or 15(d) of the
Securities Exchange Act of 1934, as amended, and not otherwise required to be
delivered to the Banks pursuant to other provisions of this Section 5.08.

 

g.                                      Books and
Records.  Until Credit Facility
Termination, Borrowers, and each of them, shall keep and maintain complete and
accurate books and records in accordance with GAAP, consistently applied.  Subject to compliance with all applicable
Gaming Laws and the Securities and Exchange Act of 1934, as amended, Borrowers,
and each of them, shall permit Banks and any authorized representatives of
Banks to have reasonable access to and to inspect, examine and make copies of
the books and records, any and all accounts, data and other documents of
Borrowers at all reasonable times upon the giving of reasonable notice of such
intent.  In addition:  (i) in the event of the occurrence of
any Default or Event of Default, or (ii) in the event any Material Adverse
Change occurs, Borrowers shall promptly, and in any event within three (3) days
after actual knowledge thereof, notify Agent Bank in writing of such
occurrence; and

 

h.                                      Construction
Projects Reporting.  On or before
thirty (30) days after the end of each calendar month occurring subsequent to
the Commencement of Construction of any Construction Project and continuing
until forty-five (45) days after final completion of such Construction Project,
Borrowers shall submit a written report to Agent Bank and to Lenders’
Consultant reporting on the status of such construction, including, without
limitation, percentage of completion, line item breakdown of amounts expended
and amounts remaining to be expended to completion and comparison to the

 

86

 

approved
construction budgets, including, without limitation, any changes, variances
and/or overages to the line items, scope or total costs of such Construction
Project.

 

i.                                          Other
Information.  Until Credit Facility
Termination, Borrowers, and each of them, shall furnish to Agent Bank, with
sufficient copies for distribution to each of the Banks, any financial
information or other information bearing on the financial status of the
Borrowers, or any of them, which is reasonably requested by Agent Bank or
Requisite Lenders.

 

Section 5.09.                             Insurance.  Until Credit Facility Termination, Borrowers
shall obtain, or cause to be obtained, and shall maintain or cause to be
maintained with respect to the Collateral, at their own cost and expense, and
shall deposit with Agent Bank on or before the Closing Date:

 

a.                                       Property
Insurance.  Borrowers shall maintain
a special causes of loss (“All Risk” - ISO form or equivalent), perils policy
covering the buildings and improvements, and any other permanent structures for
one hundred percent (100%) of the replacement cost.  Borrowers shall maintain a Ten Million Dollar ($10,000,000.00)
limit of coverage for the perils of flood and earthquake covering the
Collateral.  Upon the request of Agent
Bank, replacement cost for insurance purposes will be established by an
independent appraiser mutually selected by Borrowers and Agent Bank.  The policy will include Agreed Amount
(waiving co-insurance), replacement cost valuation and building ordinance
endorsements.  The policy will include a
standard mortgagee clause (ISO form or equivalent, i.e. Borrower’s acts will
not impair mortgagee’s right to recover, exclusive payment of loss to mortgagee
and automatic notice of cancellation or non-renewal to mortgagee) and provide
that all losses in excess of Two Hundred Thousand Dollars ($200,000.00) be
adjusted with the Agent Bank.  The
Borrowers waive any and all rights of subrogation against Banks resulting from
losses to property.

 

b.                                      Personal
Property (including machinery, equipment, furniture, fixtures, stock).  Borrowers shall maintain a special causes of
loss (“All Risk”) perils property coverage for all personal property owned,
leased or for which Borrowers are legally liable.  The coverage will include a lenders’ loss payable endorsement in
favor of Agent Bank.

 

The policy
providing real property and personal property coverages, as specified in
5.09(a) and (b) hereinabove, may include a deductible of no more than
Twenty-Five Thousand Dollars ($25,000.00) for any single occurrence.  Flood and earthquake deductibles can be no
more than Two Hundred Fifty Thousand Dollars ($250,000.00), if a separate
deductible applies.

 

c.                                       Business
Interruption/Extra Expense. 
Borrowers shall maintain combined Business Interruption/Extra Expense
coverage for the Hotel/Casino Facilities with a limit representing no less than
eighty percent (80%) of the net profit plus

 

87

 

continuing
expenses (including debt service) for the race track, hotel and casino
facilities (including all video lottery/slot operations).  Such coverage shall include an extensions
for off premises power losses at One Million Dollars ($1,000,000.00) and
extended period of indemnity of one hundred eighty (180) days endorsement.  These coverages may have deductible of no
greater than twenty-four (24) hours, or Twenty-Five Thousand ($25,000.00), if a
separate deductible applies.  This coverage
will be specifically endorsed to include Agent Bank as loss payee.

 

d.                                      Boiler and
Machinery.  Borrowers shall maintain
a Boiler and Machinery policy for the Casino Facilities written on a
Comprehensive Form with a combined direct and indirect limit of no less than
Ten Million Dollars ($10,000,000.00). 
The policy shall include extensions for Agreed Amount (waiving
co-insurance) and Replacement Cost Valuation. 
The policy may contain deductibles of no greater than Ten Thousand
Dollars ($10,000.00) direct and twenty-four (24) hours indirect.

 

e.                                       Crime
Insurance.  Borrowers shall obtain a
comprehensive crime policy, including the following coverages:

 

(i)                                     employee
dishonesty - One Million Dollars ($1,000,000.00);

 

(ii)                                  money
and securities (inside) - Five Hundred Thousand Dollars ($500,000.00);

 

(iii)                               money
and securities (outside) - Five Hundred Thousand Dollars ($500,000.00);

 

(iv)                              depositor’s
forgery - One Million Dollars ($1,000,000.00);

 

(v)                                 computer
fraud - One Million Dollars ($1,000,000.00).

 

The policy
must be amended so that money is defined to include “tokens and chips” (as
defined in Regulation 12.010 of the Nevada Gaming Authorities).  The policy may contain deductibles of no
greater than Twenty-Five Thousand Dollars ($25,000,000.00) for all coverages
listed above.

 

f.                                         Commercial
General Liability (1998 Form or Equivalent).  Borrowers shall maintain a Commercial General Liability policy
with a One Million Dollar ($1,000,000.00) combined single limit for bodily
injury and property damage, including Products Liability, Contractual
Liability, and all standard policy form extensions.  The

 

88

 

policy must
provide a Two Million Dollar ($2,000,000.00) general aggregate (per location,
if multi-location risk) and be written on an “occurrence form”.  The policy will also include extensions for
Liquor Legal Liability, Employee Benefits Legal Liability, Innkeepers Legal and
Safe Deposit Legal coverages and Spectator Liability coverages (if necessary, a
separate policy can be secured for Spectator Liability).  If the general liability policy contains a
self-insured retention, it shall be no greater than Ten Thousand Dollars
($10,000.00) per occurrence, with an aggregate retention of no more than Two
Hundred Fifty Thousand Dollars ($250,000.00), including expenses.

 

The policy
shall be endorsed to include Agent Bank as an additional insured on behalf of
the Banks.  Definition of additional
insured shall include all officers, directors, employees, agents and representatives
of the additional insured.  The coverage
for additional insured shall apply on a primary basis irrespective of any other
insurance whether collectible or not (ISO Form #CG20261185 Additional Insured -
Designated Person or Organization, or Equivalent).

 

g.                                      Care, Custody
and Control Liability.  Borrowers
shall maintain a care, custody and control liability policy with a single limit
of no less than One Hundred Thousand Dollars ($100,000.00) (each horse)/One
Million Dollars ($1,000,000.00) (in the aggregate) per occurrence for any
injury, damage or death to horses in the care, custody and control of the
Borrowers.  The Agent Bank shall be
included as an additional insured under such policy.

 

h.                                      Automobile.  Borrowers shall maintain a comprehensive Automobile
Liability Insurance Policy written under coverage “symbol 1”, providing a One
Million Dollar ($1,000,000.00) combined single limit for bodily injury and
property damage covering all owned, non-owned and hired vehicles of the
Borrowers.  If the policy contains a
self insured retention it shall be no greater than Ten Thousand Dollars
($10,000.00) per occurrence with an aggregate retention of no more than Two
Hundred Fifty Thousand Dollars ($250,000.00), including expenses.  The following additional coverages must be
purchased by Borrowers:

 

(i)                                     Garage
Liability.  A One Million Dollar
($1,000,000.00) combined single limit for bodily and property damage for the
garage operation.

 

(ii)                                  Garagekeepers
Legal Liability.  Five Hundred
Thousand Dollar ($500,000.00) limit for comprehensive and collision coverages
for physical damage to vehicles in the Borrowers’ care, custody and
control.  The policy can be subject to a
deductible of no greater than Two Thousand Five Hundred Dollars ($2,500.00) for
each auto and Ten Thousand Dollars ($10,000.00) for each loss.

 

89

 

i.                                          Workers
Compensation and Employers Liability Insurance.  Borrowers shall maintain a standard workers compensation policy
covering the states of Nevada, West Virginia (as West Virginia is a
monopolistic state coverage must be secured through the state fund) and any
other state where the company is operating, including employers liability
coverage subject to a limit of no less than One Million Dollars ($1,000,000.00)
each employee, One Million Dollars ($1,000,000.00) each accident, One Million
Dollars ($1,000,000.00) policy limit. 
The policy shall include endorsements for Voluntary Compensation, Stop
Gap Liability, Long-Shoreman’s and Harbors Workmans Compensation Act and
Maritime Coverages (as applicable).  If
the Borrowers have elected to self-insure Workers Compensation coverage in the
State of Nevada (or any other state), the Agent Bank must be furnished with a
copy of the certificate from the state(s) permitting self-insurance and
evidence of a Stop Loss Excess Workers Compensation policy with a specific
retention of no greater than One Hundred Fifty Thousand Dollars ($150,000.00)
per occurrence.

 

j.                                          Retention.  If Borrowers’ general liability and automobile
policies include a self-insured retention, it is agreed and fully understood
that Borrowers are solely responsible for payment of all amounts due within
said self-insured retentions.  Any
Indemnification/Hold Harmless provision is extended to cover all liabilities
associated with said self-insured retentions.

 

k.                                       Umbrella
Liability.  An Umbrella Liability
policy shall be purchased with a limit of not less than Fifty Million Dollars
($50,000,000.00) providing excess coverage over all limits and coverages
indicated in paragraphs (f), (h) and (i) above.  The limits can be obtained by a combination of Primary and Excess
Umbrella policies, provided that all layers follow form with the underlying
policies indicated in (f), (h) and (i) are written on an “occurrence”
form.  This policy shall be endorsed to
include the Agent Bank as an additional insured on behalf of the Banks, in the
same manner set forth in Section 5.09(f) hereinabove.

 

l.                                          Key Man
Life Insurance.  The Borrower
Consolidation shall maintain key-man life insurance on the life of Arneault in
an aggregate amount of no less than Eight Million Dollars ($8,000,000.00).  Each such key man life insurance policy or
policies shall designate MTRI as the beneficiary thereof and shall provide that
written notice shall be given to Agent Bank no less than thirty (30) days prior
to any cancellation or termination thereof.

 

m.                                    Ratings.  All policies indicated above shall be
written with insurance companies licensed and admitted to do business in all
states where the Borrower Consolidation, or any of them, is operating and shall
be rated no lower than “A XII” in the most recent addition of A.M. Best’s
and “AA” in the most recent edition of Standard & Poor’s, or such other
carrier reasonably acceptable to Agent Bank. 
All policies discussed above shall be endorsed to provide that in the
event of a

 

90

 

cancellation,
non-renewal or material modification, Agent Bank shall receive thirty (30) days
prior written notice thereof.  The
Borrowers shall furnish Agent Bank with Certificates of Insurance executed by
an authorized agent evidencing compliance with all insurance provisions
discussed above on an annual basis.  The
Borrowers shall also furnish actual policy endorsements evidencing appropriate
status of Agent Bank (as mortgagee, loss payee and additional insured).  Certificates of Insurance executed by an
authorized agent of each carrier providing insurance evidencing continuation of
all coverages will be provided on the Closing Date and annually on or before
ten (10) days prior to the expiration of each policy.  All certificates and other notices related to the insurance
program shall be delivered to Agent Bank concurrently with the delivery of such
certificates or notices to such carrier or to Borrowers, or any of them, as
applicable.

 

n.                                      Other Coverage.  Any other insurance reasonably requested by
Agent Bank or Requisite Lenders in such amount and covering such risks as may
be reasonably required and customary in the race track hotel/casino industry in
the general location of the Hotel/Casino Facilities.  Approval of any insurance by Agent Bank shall not be a
representation of solvency of any insurer or sufficiency of any coverage
required under this Credit Agreement.  All requirements are considered minimum in terms of the purchase
and maintenance of insurance under this Credit Agreement.

 

Section 5.10.                             Taxes.  Throughout the term of the Credit Facility,
Borrowers shall prepare and timely file or cause to be prepared and timely
filed all federal, state and local tax returns required to be filed by it, and
Borrowers shall pay and discharge prior to delinquency all taxes, assessments
and other governmental charges or levies imposed upon it, or in respect of any
of any of its properties and assets except such taxes, assessments and other
governmental charges or levies, if any, as are being contested in good faith by
Borrowers in the manner which is set forth for such contests by Section 4.07
herein.

 

Section 5.11.                             Permitted
Encumbrances Only.  At all times
throughout the term of the Credit Facility, Borrowers shall not create, incur,
assume or suffer to exist any mortgage, deed of trust, pledge, lien, security
interest, encumbrance, attachment, levy, distraint, or other judicial process
and burdens of every kind and nature except the Permitted Encumbrances on or
with respect to the Collateral, except (a) with respect to matters described in
Sections 5.03 and 5.10 such items as are being contested in the manner
described therein, and (b) with respect to any other items, if any, as are
being contested in good faith by appropriate proceedings and for which
Borrowers have maintained adequate reserves for the payment thereof.

 

Section 5.12.                             Advances.  At any time during the term of the Credit
Facility, if Borrowers should fail (a) to perform or observe, or (b) to cause
to be performed or observed, any covenant or obligation of Borrowers under this
Credit

 

91

 

Agreement or
any of the other Loan Documents, then Agent Bank, upon the giving of reasonable
notice may (but shall be under no obligation to) take such steps as are
necessary to remedy any such non-performance or non-observance and provide for
payment thereof.  All amounts advanced
by Agent Bank or Lenders pursuant to this Section 5.12 shall become an
additional obligation of Borrowers to Lenders secured by the Deeds of Trust and
other Loan Documents, shall constitute a Mandatory Commitment Reduction until
repaid and shall become due and payable by Borrowers on the next interest
payment date, together with interest thereon at a rate per annum equal to the
Default Rate (such interest to be calculated from the date of such advancement
to the date of payment thereof by Borrowers).

 

Section 5.13.                             Further
Assurances.  Borrowers will do,
execute, acknowledge and deliver, or cause to be done, executed, acknowledged
and delivered, such amendments or supplements hereto or to any of the Loan
Documents and such further documents, instruments and transfers as Requisite
Lender or Agent Bank may reasonably require for the curing of any defect in the
execution or acknowledgement hereof or in any of the Loan Documents, or in the
description of the Collateral Properties or other Collateral or for the proper
evidencing of giving notice of each lien or security interest securing
repayment of the Credit Facility. 
Further, upon the execution and delivery of the Deeds of Trust and each
of the Loan Documents and thereafter, from time to time, Borrowers shall cause
the Deeds of Trust and each of the Loan Documents and each amendment and
supplement thereto to be filed, registered and recorded and to be refiled,
re-registered and re-recorded in such manner and in such places as may be
reasonably required by the Requisite Lenders or Agent Bank, in order to publish
notice of and fully protect the liens of the Deeds of Trust and the Loan
Documents and to protect or continue to perfect the security interests created
by the Deeds of Trust and Loan Documents in the Collateral Properties and
Collateral and to perform or cause to be performed from time to time any other
actions required by law and execute or cause to be executed any and all
instruments of further assurance that may be necessary for such publication, perfection,
continuation and protection.

 

Section 5.14.                             Indemnification.  Borrowers agree to and do hereby jointly and
severally indemnify, protect, defend and save harmless Agent Bank and each of
the Banks and their respective trustees, officers, employees, agents, attorneys
and shareholders (individually an “Indemnified Party” and collectively the
“Indemnified Parties”) from and against any and all losses, damages, expenses
or liabilities of any kind or nature from any suits, claims, or demands,
including reasonable counsel fees incurred in investigating or defending such
claim, suffered by any of them and caused by, relating to, arising out of,
resulting from, or in any way connected with this Credit Agreement, with any
other Loan Document or with the transactions contemplated herein and thereby;
provided, however, Borrowers shall not be obligated to indemnify, protect,
defend or save harmless an Indemnified Party if, and to the extent, the loss,
damage, expense or liability was caused by (a) the gross negligence or
intentional misconduct of

 

92

 

such
Indemnified Party, or (b) the breach of this Credit Agreement or any other Loan
Document by such Indemnified Party or the breach of any laws, rules or
regulation by such Indemnified Party (other than those breaches of laws arising
from any Borrowers’ default).  In case
any action shall be brought against any Indemnified Party based upon any of the
above and in respect to which indemnity may be sought against Borrowers, Agent
Bank shall promptly notify Borrowers in writing, and Borrowers shall assume the
defense thereof, including the employment of counsel selected by Borrowers and
reasonably satisfactory to Indemnified Party, the payment of all costs and
expenses and the right to negotiate and consent to settlement upon the consent
of the Indemnified Party.  Upon
reasonable determination made by Indemnified Party that such counsel would have
a conflict representing such Indemnified Party and Borrowers, the applicable Indemnified
Party shall have the right to employ separate counsel in any such action and to
participate in the defense thereof. 
Borrowers shall not be liable for any settlement of any such action
effected without their consent, but if settled with Borrowers’ consent, or if
there be a final judgment for the claimant in any such action, Borrowers agree
to indemnify, defend and save harmless such Indemnified Parties from and
against any loss or liability by reason of such settlement or judgment.  The provisions of this Section 5.14 shall
survive the termination of this Credit Agreement and the repayment of the
Credit Facility and the assignment or subparticipation of all or any portion of
the Syndication Interest held by any Lender pursuant to Section 11.10.

 

Section 5.15.                             Inspection
of the Collateral and Appraisal.  At
all times during the term of the Credit Facility and subject to compliance with
all applicable Gaming Laws, Borrowers shall provide or cause to be provided to
Banks and any authorized representatives of Banks, accompanied by
representatives of Borrowers, the reasonable right of entry and free access to
the Collateral Properties to inspect same on reasonable prior notice to
Borrowers.  Provided, however, Lenders
shall use commercially reasonable efforts to avoid undue interference with
Borrowers’ business operations.  If at
any time any Qualified Appraisal of the Collateral Properties, or any of them,
is required to be made by any banking regulatory authority or determined to be
necessary by Agent Bank or Requisite Lenders after the occurrence of an Event
of Default, Borrowers agree to pay all fees, costs and expenses incurred by
Agent Bank in connection with the preparation of such Qualified Appraisal.

 

Section 5.16.                             Compliance
With Other Loan Documents. 
Borrowers shall comply with each and every term, condition and agreement
contained in the Loan Documents including, without limitation, the
Environmental Certificate and all of the Security Documentation.

 

Section 5.17.                             Suits
or Actions Affecting Borrowers. 
Throughout the term of the Credit Facility, Borrowers shall promptly
advise Agent Bank in writing within ten (10) days after Borrowers obtain
knowledge of (a) any claims, litigation, proceedings or disputes (whether or
not purportedly on behalf of Borrowers) against, or to the actual

 

93

 

knowledge of
Borrowers, threatened or affecting Borrowers which, if adversely determined,
would result in a Material Adverse Change in the Collateral Properties or the
business, operations or financial conditions of Borrowers, (b) any material
labor controversy resulting in or threatening to result in a strike against any
of the Collateral Properties or Hotel/Casino Facilities, or (c) any
proposal by any Governmental Authority to acquire any of the material assets or
business of Borrowers.

 

Section 5.18.                             Consents
of and Notice to Gaming Authorities.

 

a.                                       Borrowers shall
make all necessary applications to and procure all necessary consents and
approvals of the applicable Gaming Authorities to the: (i) pledge of the
stock of MPI, SGLVI, SGRI, PIDI and RAI pursuant to the Stock Pledges, (ii) the
restrictions on transfer and hypothecation of the stock of MPI, SGLVI, SGRI,
PIDI and RAI contained in Sections 6.12(a) and 7.01(s), and (iii) the
terms set forth in the Credit Agreement and each of the Loan Documents, to the
extent which may be required by the West Virginia Gaming Authorities; and

 

b.                                      Borrowers shall
comply in all material respects with all applicable statutes, rules and
regulations requiring reports and disclosures to all applicable Gaming
Authorities, including, but not limited to, reporting this Credit Facility
transaction, within the time period required by Regulation 8.130(2) of the
Regulations of Nevada Gaming Commission and State Gaming Control Board and as
may be required by the West Virginia Gaming Authorities.

 

Section 5.19.                             Tradenames,
Trademarks and Servicemarks. 
Borrowers shall not assign or in any other manner alienate their
respective interests in any material tradenames, trademarks or servicemarks
relating or pertaining to the Hotel/Casino Facilities during the term of the
Credit Facility.  No Borrower shall
change its name without first giving at least thirty (30) days prior written
notice to Agent Bank.

 

Section 5.20.                             Notice
of Hazardous Materials.  Within ten
(10) days after an executive officer of any of the Borrowers shall have
obtained actual knowledge thereof, Borrowers shall promptly advise Agent Bank
and each of the Lenders in writing of and deliver a copy of: (a) any and all
enforcement, clean-up, removal or other governmental or regulatory actions
instituted or threatened by any Governmental Agency pursuant to any applicable
federal, state or local laws, ordinances or regulations relating to any
Hazardous Materials (as defined in the Environmental Certificate) affecting the
Collateral Properties (“Hazardous Materials Laws”); (b) all written claims made
or threatened by any third party against Borrowers, the Collateral Properties,
the Hotel/Casino Facilities, or any of them, relating to damage, contribution,
cost recovery compensation, loss or injury resulting from any Hazardous
Materials (the matters set forth in clauses (a) and (b) above are hereinafter
referred to as “Hazardous Materials Claims”); and (c) the discovery of any
occurrence or condition on any real property adjoining or in the vicinity of
the Collateral Properties, the Hotel/Casino Facilities, or any 

 

94

 

of them, that
could cause any Borrower or any part thereof to be held liable under the
provisions of, or to be otherwise subject to any restrictions on the ownership,
occupancy, transferability or use of the Collateral Properties or the
Hotel/Casino Facilities under, any Hazardous Materials Laws.

 

Section 5.21.                             Compliance
with Access Laws.

 

a.                                       Borrowers agree
that Borrowers, the Hotel/Casino Facilities and the Collateral Properties shall
at all times strictly comply with the requirements of the Americans with
Disabilities Act of 1990; the Fair Housing Amendments Act of 1988; and other
federal, state or local laws or ordinances related to disabled access; or any
statute, rule, regulation, ordinance, order of Governmental Authorities, or
order or decree of any court adopted or enacted with respect thereto, as now
existing or hereafter amended or adopted (collectively, the “Access Laws”), as
may be applicable to the respective Hotel/Casino Facilities.  At any time, Agent Bank may require a certificate
of compliance with the Access Laws and indemnification agreement in a form
reasonably acceptable to Agent Bank. 
Agent Bank may also require a certificate of compliance with the Access
Laws from an architect, engineer, or other third party acceptable to Agent
Bank.

 

b.                                      Notwithstanding
any provisions set forth herein or in any other document, Borrowers shall not
alter or permit any tenant or other person to alter the Hotel/Casino Facilities
or the Collateral Properties in any manner which would increase Borrowers’
responsibilities for compliance with the Access Laws without the prior written
approval of Agent Bank.  In connection
with such approval, Agent Bank may require a certificate of compliance with the
Access Laws from an architect, engineer or other person acceptable to Agent
Bank.

 

c.                                       Borrowers agree
to give prompt written notice to Agent Bank of the receipt by Borrowers of any
claims of violation of any of the Access Laws and of the commencement of any
proceedings or investigations which relate to compliance with any of the Access
Laws.

 

d.                                      Borrowers shall
indemnify, defend and hold harmless Indemnified Parties from and against any
and all claims, demands, damages, costs, expenses, losses, liabilities,
penalties, fines and other proceedings including, without limitation,
reasonable attorneys’ fees and expenses arising directly or indirectly from or
out of or in any way connected with any failure of the Hotel/Casino Facilities
or the Collateral Properties to comply with any of the Access Laws as the same
may have been applicable during the term of the Credit Facility.  The obligations and liabilities of Borrowers
under this section shall survive Credit Facility Termination, any satisfaction,
assignment, judicial or nonjudicial foreclosure proceeding, or delivery of a
deed in lieu of foreclosure.

 

95

 

Section 5.22.                             Compliance
with and Restriction on Amendment of Woodview Loan Documents and Logan Loan
Documents.

 

a.                                       Until Credit
Facility Termination, Borrowers shall fully perform and comply with or cause to
be performed and complied with all of the respective material covenants,
material terms and material conditions imposed or assumed by them, or any of
them, under each of the Woodview Loan Documents.  Borrowers shall not amend, modify or terminate, or enter into any
agreement to amend, modify or terminate any of the Woodview Loan Documents
without the prior written consent of Requisite Lenders.

 

b.                                      Upon occurrence
of the Logan Primary Parcel Closing, and until Credit Facility Termination,
Borrowers shall fully perform and comply with or cause to be performed and
complied with all of the respective material covenants, material terms and
material conditions imposed or assumed by them, or any of them, under each of
the Logan Loan Documents.  Borrowers
shall not amend, modify or terminate, or enter into any agreement to amend,
modify or terminate any of the Logan Loan Documents without the prior written
consent of Requisite Lenders.

 

Section 5.23.                             Compliance
with and Restriction on Amendment of Green Shingle Loan Documents and SGRI Loan
Documents.

 

a.                                       Until Credit
Facility Termination, Borrowers shall fully perform and comply with or cause to
be performed and complied with all of the respective material covenants,
material terms and material conditions imposed or assumed by them, or any of
them, under each of the Green Shingle Loan Documents.  Borrowers shall not amend, modify or terminate, or enter into any
agreement to amend, modify or terminate any of the Green Shingle Loan Documents
without the prior written consent of Requisite Lenders.

 

b.                                      Until Credit
Facility Termination SGRI shall fully perform and comply with or cause to be
performed and complied with all of the respective material covenants, material
terms and material conditions imposed or assumed by it under each of the SGRI
Loan Documents.  SGRI shall not amend,
modify or terminate, or enter into any agreement to amend, modify or terminate
any of the SGRI Loan Documents without the prior written consent of Requisite
Lenders.

 

Section 5.24.                             Compliance
with and Restriction on Amendment of Senior Unsecured Indenture and Senior
Unsecured Notes.

 

a.                                       Until Credit
Facility Termination, Borrowers shall fully perform and comply and cause
compliance with all material agreements, covenants, terms and conditions
imposed upon, or assumed by, MTRI and its Subsidiaries under the Senior
Unsecured Indenture and Senior Unsecured Notes.

 

96

 

b.                                      No amendments or
modifications shall be made to, nor shall any agreement be made or entered or
entered into to amend or modify the Senior Unsecured Indenture or Senior
Unsecured Notes without the prior written consent of Agent Bank, or if in the
opinion of Agent Bank such amendment or modification is material or in any manner
adverse to the Borrower Consolidation, or any of them or the Lenders, without
the prior written consent of Requisite Lenders, which consent of Agent Bank, or
Requisite Lenders, as applicable, shall not be unreasonably withheld.

 

Section 5.25.                             Prohibition
on Prepayment or Defeasance of Senior Unsecured Debt.  Notwithstanding anything contained in the
Credit Agreement to the contrary, no member of the Borrower Consolidation
shall, except with the prior written consent of the Requisite Lenders,
purchase, redeem, retire or otherwise acquire for value, or set apart any money
for a sinking, defeasance or other analogous fund for, the purchase,
redemption, retirement or other acquisition of, or make any voluntary payment
or prepayment of the principal of or interest on, or any other amount owing in
respect of, the Senior Unsecured Notes, except for (i) regularly scheduled
payments of interest in respect of such Senior Unsecured Notes required
pursuant to the instruments evidencing such Senior Unsecured Notes and the
Senior Unsecured Indenture, and (ii) the principal amount of any
Regulatory Redemption required by any Gaming Authority.

 

Section 5.26.                             Key
Man Life Insurance.  In the event of
the death of Arneault prior to Credit Facility Termination, Borrowers shall
cause a Mandatory Commitment Reduction to be made to the Credit Facility in the
amount of Four Million Dollars ($4,000,000.00), which Mandatory Commitment
Reduction shall be made on or before the earlier to occur of (a) receipt by
MTRI of the proceeds of the key man life insurance required to be maintained by
the Borrower Consolidation under Section 5.09; or (b) one hundred twenty (120)
days following the death of Arneault.

 

Section 5.27.                             Compliance
With Other Loan Documents, Execution of Subsidiary Guaranties and Pledge of
Restricted Subsidiary Stock.  Each
member of the Borrower Consolidation shall comply with each and every term,
condition and agreement contained in the Loan Documents to which they, or any
of them, are a party.  Borrowers shall
notify Agent Bank in writing on or before ten (10) days following the creation
thereof, of each Restricted Subsidiary and Unrestricted Subsidiary, together
with a description of each New Venture owned or to be acquired by such
Restricted Subsidiary or Unrestricted Subsidiary.  Borrowers shall further cause each Restricted Subsidiary created
or otherwise occurring from time to time following the Closing Date to join in
the execution of the Subsidiary Guaranty in favor of Agent Bank and to deliver
the original thereof, or a duly executed Certificate of Joinder in the form
attached to the Subsidiary Guaranty as Exhibit A, to Agent Bank promptly,
but in no event later than thirty (30) days following the creation or other
occurrence of such Restricted Subsidiary. 
MTRI shall execute or cause to be executed a Restricted Subsidiary
Security

 

97

 

Agreement no
later than thirty (30) days following the creation or other occurrence of each
Restricted Subsidiary.  In the case of a
Restricted Subsidiary which is the holder of Gaming Permits, MTRI shall use its
best efforts to cause all necessary Governmental Authorities to consent to the
delivery of the applicable stock certificates, together with a stock power
executed in blank, to Agent Bank as soon as reasonably practical.  MTRI shall deliver the applicable stock
certificates to Agent Bank promptly following receipt of such approval.  In the case of a Restricted Subsidiary that
is not the holder of any Gaming Permits, the applicable stock certificates,
together with a stock power executed in blank, shall be delivered to Agent Bank
concurrently with the execution of the Restricted Subsidiary Security
Agreement.

 

Section 5.28.                             Prohibition
on Amendment of Scioto Merger Agreement. 
Other than with respect to amendments or modifications that constitute
immaterial changes or clarifications having no adverse economic impact or
consequence to MTRI or RAI, no amendments or modifications shall be made to,
nor shall any agreement be made or entered or entered into to amend or modify
the Scioto Merger Agreement without the prior written consent of Agent Bank, or
if in the opinion of Agent Bank such amendment or modification is material or
in any manner adverse to the Borrower Consolidation, or any of them or the
Lenders, without the prior written consent of Requisite Lenders, which consent
of Agent Bank, or Requisite Lenders, as applicable, shall not be unreasonably
withheld.  For the purposes of this
Section 5.28, any change to the parties to the Scioto Merger Agreement or any
increase of the Merger Consideration or to the Contingent Payments, each as
defined therein, shall be deemed “material”. 
Borrowers shall give written notice to Agent Bank of each amendment or
modification to the Scioto Merger Agreement promptly following each such
amendment or modification.

 

Section 5.29.                             Requirements
for Scioto Merger.  Borrowers agree
to promptly deliver to Agent Bank any information concerning the Scioto Merger,
SDI and/or the SDI Facility which is reasonably requested by Agent Bank.  Concurrently or substantially concurrent
with the occurrence of the Scioto Merger Effective Date, Borrower shall:

 

a.                                       Deliver or cause
to be delivered to Agent Bank a full and complete set of all transfer
instruments, assignments, merger certificates and other documents executed in
connection with the Scioto Merger and which evidence the occurrence of the
Scioto Merger Effective Date;

 

b.                                      A written
certification and agreement by SDI in favor of Agent Bank under which SDI certifies
and agrees that (i) the Scioto Merger Effective Date has occurred,
(ii) it is a wholly owned subsidiary of MTRI, and (iii) as the
surviving corporation of the Merger and a member of the Borrower Consolidation,
it has assumed

 

98

 

and is liable
for all Obligations which are then or thereafter may be owing to the Banks
under the Bank Facilities and Loan Documents;

 

c.                                       Cause SDI to
execute and deliver each of the New Acquisition Certifications, together with
security documents and instruments consistent with the form of the Security
Documentation in all material respects for the purpose of creating and
perfecting a first priority lien and security interest in all assets of SDI,
including, but not limited to the SDI Facility and all real and personal
property owned by SDI, except to the extent Borrowers elect to continue:
(i) secured financing in favor of National City Bank existing prior to the
Scioto Merger Effective Date, so long as the unpaid principal balance thereof
is not increased nor the terms of repayment thereof modified in any respect
that would increase the cost of such financing to the Borrower Consolidation,
in which case Agent Bank shall have a second lien and security interest as to
the Collateral securing repayment of such secured financing, and/or
(ii) lease financing obligations existing prior to the Merger Effective
Date, in which case Agent Bank shall have a second lien and security interest
as to the equipment or items so financed; and

 

d.                                      As of the 60th
day following the Scioto Merger Effective Date, no member of the Borrower
Consolidation shall have assumed or shall have permitted SDI to assume or
remain obligated for any direct or contingent liabilities (other than the Bank
Facilities, the Senior Unsecured Notes and, trade payables incurred in the
ordinary course of business and the existing secured financing in favor of
National City Bank described in Section 5.29(c)(i) above) in excess of Fifty
Thousand Dollars ($50,000.00) for any single item of Two Hundred Fifty Thousand
Dollars ($250,000.00) in the aggregate without the prior written approval of
Agent Bank, including, without limitation: 
(i) any unfunded pension plan obligations in excess of Fifty Thousand
Dollars ($50,000.00) in the aggregate, and (ii) any existing lease financing
obligations described in Section 5.29(c)(ii) above.  Provided, however, that in the event Borrowers are unable to
procure any Governmental Approvals which may be necessary in order to satisfy
or otherwise remove any unfunded pension plan obligations in excess of Fifty
Thousand Dollars ($50,000.00) by the sixtieth (60th) day following
the Merger Effective Date, such sixty (60) day period shall be extended so long
as Borrowers are acting in good faith and are diligently using their best
efforts to procure such Governmental Approvals.

 

Section 5.30.                             Requirements
for Construction Projects.

 

a.                                       On or before
thirty (30) calendar days prior to the Commencement of Construction of each
Construction Project, Borrowers shall deliver to Agent Bank with respect to
such Construction Project each of the following items:

 

(i)                                     a
full and detailed Expansion Capital Expenditure and line item construction
budget;

 

99

 

(ii)                                  a
full set of the current plans and specifications, together with all change
orders and revisions; and

 

(iii)                               any
other construction documents and information related thereto reasonably
requested by Agent Bank.

 

b.                                      Lenders’
Consultant shall, at all times during the construction of the applicable
Construction Project, have the right of reasonable entry and free access to
such Construction Project and the right to inspect all work done, labor
performed and materials furnished in connection with such Construction Project
and the right to inspect all work done, labor performed and materials furnished
in connection with such Construction Project and the right of reasonable
inspection to inspect all draw requests books, contracts and construction
records which such Lenders’ Consultant reasonably deems necessary for the
Construction Project Reviews.  In
performing such inspections, Agent Bank and Lenders’ Consultant shall cooperate
with Borrowers in making suitable arrangements to minimize disruption of the
construction work, and each such inspection shall be conducted pursuant to
applicable insurance, safety and security requirements.

 

c.                                       Until completion
of the Construction Project Lenders’ Consultant shall submit to Agent Bank on
or before the thirtieth (30th) day following the end of each Fiscal
Quarter, a report on the Construction Project Reviews and the status of
construction as of the end of such Fiscal Quarter, together with any other
information, accounting or documents reasonably requested by Agent Bank or upon
the request of Requisite Lenders.

 

d.                                      Borrowers agree
to reimburse Agent Bank for the costs and expenses of the Lenders’ Consultant
within thirty (30) days of Borrowers’ receipt of a written invoice setting
forth the amount due.

 

ARTICLE VI

 

FINANCIAL
COVENANTS

 

Until payment in full of all sums owing
hereunder and under the Revolving Credit Note and the occurrence of Credit
Facility Termination, Borrowers agree, as set forth below, to comply or cause
compliance with the following Financial Covenants.

 

Section 6.01.                             Leverage
Ratio.  Commencing as of the first
Fiscal Quarter ending subsequent to the Closing Date and continuing as of each
Fiscal Quarter end until Credit Facility Termination, the Borrower
Consolidation shall maintain a Leverage Ratio no greater than the ratios
described hereinbelow to be calculated as of the end of each Fiscal Quarter in
accordance with the following schedule:

 

100

 

 

	
  Fiscal Quarter End

  	
   

  	
  Maximum Leverage

  Ratio

  
	
  As of the Closing Date and as of each Fiscal Quarter end through
  December 31, 2004

  	
   

  	
  4.00
  to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the Fiscal Quarter ending March 31, 2005 and as of each Fiscal
  Quarter end through December 31, 2005

  	
   

  	
  3.75
  to 1.00

  
	
   

  	
   

  	
   

  
	
  As of the Fiscal Quarter ending March 31, 2006, and as of each Fiscal
  Quarter end through Credit Facility Termination

  	
   

  	
  3.50
  to 1.00

  

 

Section 6.02.                             Adjusted
Fixed Charge Coverage Ratio. 
Commencing as of the first Fiscal Quarter ending subsequent to the
Closing Date and continuing as of each Fiscal Quarter end until Credit Facility
Termination, the Borrower Consolidation shall maintain an Adjusted Fixed Charge
Coverage Ratio no less than (i) 1.25 to 1.00 during the period commencing on
the Closing Date and continuing through December 31, 2004, and (ii) 1.75
to 1.00 during the period commencing January 1, 2005 and continuing through
December 31, 2005, and (iii) 2.00 to 1.00 during the period commencing on
January 1, 2006 and continuing through Credit Facility Termination.

 

Section 6.03.                             Minimum
Tangible Net Worth.  The Borrower
Consolidation shall maintain as of the last day of each Fiscal Quarter a
Tangible Net Worth equal to or greater than the sum of (a) ninety percent (90%)
of the Tangible Net Worth of the Borrower Consolidation calculated as of
December 31, 2002, plus (b) eighty-five percent (85.0%) of Net Income
after taxes realized by the Borrower Consolidation as of each Fiscal Quarter
end occurring on and after December 31, 2002, without deduction for any
net losses, plus (c) ninety percent (90.0%) of the Net Proceeds received by the
Borrower Consolidation all Equity Offerings made subsequent to the Closing
Date.

 

Section 6.04.                             Limitation
on Indebtedness.  The Borrower
Consolidation shall not owe or incur any Indebtedness, except as specifically
permitted hereinbelow:

 

a.                                       Funded
Outstandings under the Credit Facility;

 

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

 

c.                                       Indebtedness
owing by Borrowers as of the Closing Date, including, without limitation, the
Senior Unsecured Notes up to the maximum aggregate principal amount of One
Hundred Thirty Million Dollars ($130,000,000.00);

 

101

 

d.                                      Secured purchase
money Indebtedness and Capital Lease Liabilities relating to FF&E used and
to be used in connection with the Hotel/Casino Facilities up to the maximum
aggregate principal amount of Thirty-Five Million Dollars ($35,000,000.00) at
any time outstanding;

 

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

 

f.                                         Indebtedness
evidenced by the Logan Loan Documents and/or the Woodview Loan Documents; and

 

g.                                      Indebtedness
incurred for the purpose of financing premiums on Directors’ and Officers’
Liability Insurance Coverage up to the aggregate amount of Five Hundred
Thousand Dollars ($500,000.00) at any time outstanding.

 

Section 6.05.                             Restriction
on Distributions.  No member of the
Borrower Consolidation shall make any Distributions, other than:
(a) Distributions to other members of the Borrower Consolidation,
(b) Distributions made in connection with Insider Cash Loans and Insider
Non-Cash Loans, (c) Share Repurchases to the extent permitted by
Section 6.08(i).

 

Section 6.06.                             Capital
Expenditure Requirements.

 

a.                                       During each
Fiscal Year, Borrowers shall make or cause to be made, Maintenance Capital
Expenditures to the Hotel/Casino Facilities in a minimum aggregate amount equal
to or greater (“Minimum Maintenance Cap Ex Requirement”) (i) than one
percent (1%) of net revenues during each of the Fiscal Years ending
December 31, 2003 and December 31, 2004, and (ii) during each Fiscal
Year thereafter occurring equal to or greater than two percent (2%) of net
revenues, in each case determined with reference to the net revenues derived
from the Hotel/Casino Facilities by the Borrower Consolidation during the
immediately preceding Fiscal Year, but in no event shall Maintenance Capital
Expenditures made during any Fiscal Year be greater than a maximum aggregate
amount equal to six percent (6%) of net revenues (“Maximum Maintenance Cap Ex
Limit”) derived from the Hotel/Casino Facilities by the Borrower Consolidation
during the immediately preceding Fiscal Year.

 

b.                                      In no event shall
the sum of (i) the cumulative aggregate of Expansion Capital Expenditures, plus
(ii) the cumulative aggregate amount of New Venture Investments permitted
under Section 6.08(j), exceed the amount of One Hundred Twenty-Five
Million Dollars ($125,000,000.00) in the aggregate at any time prior to Credit
Facility Termination.

 

Section 6.07.                             Contingent
Liability(ies).  The Borrower
Consolidation shall not directly or indirectly incur any Contingent
Liability(ies) without the prior written

 

102

 

consent of Requisite
Lenders.  In no event shall any
Contingent Liabilities be secured by a Lien on any property or assets of any
member of the Borrower Consolidation, except for unfunded pension plan
obligations in the amounts and during the period described in
Section 5.29(d) hereinabove.

 

Section 6.08.                             Investment
Restrictions.  Other than
Investments permitted hereinbelow or approved in writing by Requisite Lenders,
the Borrower Consolidation shall not make any Investments (whether by way of
loan, stock purchase, capital contribution, or otherwise) other than the
following:

 

a.                                       Cash, Cash
Equivalents and direct obligations of the United States Government;

 

b.                                      Prime commercial
paper (AA rated or better);

 

c.                                       Certificates of
Deposit or Repurchase Agreement issued by a commercial bank having capital
surplus in excess of One Hundred Million Dollars ($100,000,000.00);

 

d.                                      Money market or
other funds of nationally recognized institutions investing solely in
obligations described in (a), (b) and (c) above;

 

e.                                       Insider Cash
Loans not exceeding One Million Five Hundred Thousand Dollars ($1,500,000.00)
in the aggregate during any Fiscal Year, provided that each of such Insider
Cash Loans shall bear interest at a rate no less than the Prime Rate plus one
percent (1.0%) per annum and shall in each instance be fully due and payable on
or before two (2) years from the date such Insider Cash Loan is advanced by any
member of the Borrower Consolidation;

 

f.                                         Insider
Non-Cash Loans to the extent permitted by Law;

 

g.                                      The amounts owing
to SGRI under the terms of the RRLLC Note and SGRI Loan Documents;

 

h.                                      Capital
Expenditures to the extent permitted under Section 6.06;

 

i.                                          Share
Repurchases up to the maximum cumulative aggregate amount of Thirty Million
Dollars ($30,000,000.00) during the period commencing on the Closing Date and
ending at Credit Facility Termination;

 

j.                                          New Venture
Investments, including, without limitation, the Scioto Merger and all
Alternative Payments which may be made under the terms thereof following the
Scioto Merger Effective Date, the exercise of the option to acquire

 

103

 

the Green Shingle Property or
any other Acquisition made in connection with the SDI Facility, the PIDI
Facility or any New Venture, no greater than the cumulative maximum aggregate
amount of Fifty Million Dollars ($50,000,000.00) through Credit Facility
Termination, so long as:

 

(i)                                     in
each instance the New Venture or assets acquired by such New Venture Investment
is concurrently pledged as additional Collateral securing the Bank Facilities;

 

(ii)                                  each
of the New Acquisition Certifications are made and delivered by Borrowers with
respect to any real property to be added as Collateral; and

 

(iii)                               no
Default or Event of Default shall have occurred and remains continuing;

 

k.                                       Loans to Scioto
made prior to the Scioto Merger Effective Date for working capital and capital
expenditure purposes up to the maximum aggregate amount of One Million Dollars
($1,000,000.00); and

 

l.                                          The Green
Shingle Loan up to the maximum amount of Two Million Six Hundred Thousand
Dollars ($2,600,000.00), subject to compliance with the requirements of
Section 3.21(c).

 

Section 6.09.                             Total
Liens.  The Borrower Consolidation
shall not directly or indirectly, create, incur, assume or permit to exist any
Lien on or with respect to any of the Collateral, whether now owned or
hereafter acquired, or any income or profits therefrom, or file or permit the
filing of, or permit to remain in effect, any financing statement or other
similar notice of any Lien with respect to any of the Collateral under the
Uniform Commercial Code of any State or under any similar recording or notice
statute, except:

 

a.                                       Permitted
Encumbrances;

 

b.                                      Liens granted or
permitted pursuant to the Security Documentation;

 

c.                                       Liens on the
FF&E and other goods securing Indebtedness to finance the purchase price
thereof; provided that (i) such Liens shall extend only to the
equipment and other goods so financed and the proceeds thereof, (ii) such Liens
shall not secure Indebtedness in excess of Thirty-Five Million Dollars
($35,000,000.00)

 

104

 

in the aggregate at any time,
and (iii) Agent Bank, upon the written request of an Authorized Officer,
shall confirm the priority of such Liens as paramount to the Security
Documentation to the extent such Liens are permitted under this Section 6.9(c);
and

 

d.                                      Liens creating a
security interest in the proceeds of the insurance policy or policies the
premiums for which are financed as permitted under Section 6.04(g).

 

Section 6.10.                             No
Change of Control.  Until the
occurrence of Credit Facility Termination, no Change of Control shall occur.

 

Section 6.11.                             Sale
of Assets, Consolidation, Merger, or Liquidation.  Other than as approved in writing by Requisite Lenders, no member
of the Borrower Consolidation shall wind up, liquidate or dissolve its affairs
or enter into any transaction of merger or consolidation (except a merger or
consolidation with another entity within the Borrower Consolidation), or
convey, sell, lease or otherwise dispose of (or make an agreement to do any of
the foregoing at any time prior to Credit Facility Termination) all or any
material part of its respective property or assets (except to another entity
within the Borrower Consolidation), except that the following shall be
permitted:

 

a.                                       the Borrowers
may make sales of inventory and other assets in the ordinary course of
business;

 

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

 

c.                                       If the Borrower
Consolidation should sell, transfer, convey or otherwise dispose
(“Disposition”) of any FF&E or other items of Collateral and, in the case
of FF&E and other items of Collateral which have been designated at the
time of such Disposition by written notice to Agent Bank for replacement (the
“Designated Replacement Assets”), not replace such Designated Replacement
Assets with purchased items of equivalent value and utility or with leased
FF&E or other items of Collateral of equivalent value and utility within
the permissible leasing and purchase agreement limitation set forth in Section
6.04(d) herein, to the extent the sum of: (i) the Net Proceeds from the
Disposition of FF&E and other items of Collateral which are not Designated
Replacement Assets, plus (ii) the Net Proceeds from the Disposition of
Designated Replacement Assets which are not used to replace such Designated
Replacement Assets during the consecutive twelve (12) month period following
the date of such Disposition, which twelve (12) month period ends during the
Fiscal Year under review, plus (iii) Cash payments received for principal
owing under any promissory notes or deferred payment arrangements payable to
the order of any member of the

 

105

 

Borrower Consolidation from the
Disposition of Collateral during the current or any prior Fiscal Year, exceeds
the cumulative aggregate amount of One Million Dollars ($1,000,000.00) during
any single Fiscal Year (the “Excess Capital Proceeds”), on or before
March 1 of the immediately following Fiscal Year Borrowers shall be
required to permanently reduce the Maximum Permitted Balance of the Credit Facility
by a Mandatory Commitment Reduction in the amount of such Excess Capital
Proceeds, subject, however, to the right of Agent Bank to verify to its
reasonable satisfaction the amount of such Excess Capital Proceeds;

 

d.                                      In the event a
sale of the SGLVI Collateral or other real property that is not an income
producing asset of the Borrower Consolidation results in a promissory note
receivable payable to the order of SGLVI or other member of the Borrower
Consolidation for a portion of the applicable purchase price, such note shall
be permitted so long as (1) the principal is not in excess of 75% of the
applicable purchase price, (2) the note is secured by a first priority
lien and security interest encumbering the SGLVI Collateral or other real
property Collateral so sold, and (3) the note and all such liens and
security interests are pledged, collaterally assigned to and a first priority
security interest perfected in favor of Agent Bank as additional Collateral for
the Bank Facilities in substantially the same manner as set forth in the SGRI
Security Documents.

 

e.                                       Notwithstanding
the foregoing, the Borrower Consolidation shall be permitted to contribute real
property Collateral to an Unrestricted Subsidiary and Agent Bank agrees and is
authorized to release such real property as Collateral so long as (i) such real
property is not an income producing asset of the Borrower Consolidation at the
time of such contribution and does not have a fair market value in excess of
$1,000,000, excepting the parcel of land located in Hancock County, West
Virginia consisting of approximately 255 acres, commonly known as the “Quarry
Property” which may be contributed to an Unrestricted Subsidiary without regard
to the $1,000,000 fair market value limitation, (ii) no member of the Borrower
Consolidation directly, indirectly or contingently becomes liable for the
debts, liabilities or obligations of such Unrestricted Subsidiary, and
(iii) in no event shall the Borrower Consolidation contribute or in any
other manner invest in excess of $1,000,000 (or in the case of the Quarry
Property $3,500,000) in the aggregate, in any Unrestricted Subsidiary without
the prior written consent of Lenders.

 

Section 6.12.                             No
Transfer of Ownership; Equity Offerings.

 

a.                                       MTRI shall not
transfer or hypothecate its ownership interests in MPI, SGLVI, SGRI, PIDI or
RAI except in connection with the Security Documentation.

 

b.                                      MTRI shall not
make any Equity Offering, unless ninety percent (90%) of the Net Proceeds
received by the Borrower Consolidation in

 

106

 

connection with such Equity
Offering are used to make a Mandatory Commitment Reduction promptly following
receipt thereof as provided in Section 6.03(c).

 

Section 6.13.                             ERISA.  No Borrower shall:

 

a.                                       At any time,
permit any Pension Plan which is maintained by any Borrower or to which any
Borrower is obligated to contribute on behalf of its employees, in such case if
to do so would constitute a Material Adverse Change, to:

 

(i)                                     engage
in any non-exempt “prohibited transaction”, as such term is defined in
Section 4975 of the Code;

 

(ii)                                  incur
any material “accumulated funding deficiency”, as that term is defined in
Section 302 of ERISA; or

 

(iii)                               suffer
a termination event to occur which may reasonably be expected to result in
liability of any Borrower to the Pension Plan or to the Pension Benefit
Guaranty Corporation or the imposition of a lien on the Collateral pursuant to
Section 4068 of ERISA.

 

b.                                      Fail, upon any
Borrower becoming aware thereof, promptly to notify the Agent Bank of the
occurrence of any Reportable Event with respect to any Pension Plan or of any
non-exempt “prohibited transaction” (as defined in Section 4975 of the
Code) with respect to any Pension Plan which is maintained by any Borrower or to
which Borrowers are obligated to contribute on behalf of their employees or any
trust created thereunder which Reportable Event or prohibited transaction would
constitute a Material Adverse Change.

 

c.                                       At any time,
permit any Pension Plan which is maintained by any Borrower or to which any
Borrower is obligated to contribute on behalf of its employees to fail to
comply with ERISA or other applicable laws in any respect that would result in
a Material Adverse Change.

 

Section 6.14.                             Margin
Regulations.  No part of the
proceeds of the Credit Facility will be used by Borrowers to purchase or carry
any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.  Neither the
making of such loans, nor the use of the proceeds of such loans will violate or
be inconsistent with the provisions of Regulations G, T, U or X of the Board of
Governors of the Federal Reserve System.

 

107

 

Section 6.15.                             Transactions
with Affiliates.  No Borrower shall
engage in any transaction with any Affiliate of Borrowers which is not a member
of the Borrower Consolidation, other than arms length transactions for fair
market value, except to the extent more favorable to the Borrower
Consolidation.

 

Section 6.16.                             Limitation
on Additional Subsidiaries.  No
Subsidiary of MTRI which is a member of the Borrower Consolidation shall create
any additional Subsidiaries without the prior written consent of Requisite
Lenders.

 

Section 6.17.                             Limitation
on Consolidated Tax Liability.  No
member of the Borrower Consolidation shall be liable for federal income taxes
relating to the taxable income of any Subsidiary or Affiliate of MTRI which is
not a member of the Borrower Consolidation, or any of them, in excess of the
amount of federal income taxes it would pay if reporting as a separate entity,
unless such member of the Borrower Consolidation is fully reimbursed by such
Subsidiary or Affiliate of MTRI on or before the payment of such taxes.

 

Section 6.18.                             Change
in Accounting Principles.  Except as
otherwise provided herein, if any changes in accounting principles from those
used in the preparation of the most recent financial statements delivered to
Agent Bank pursuant to the terms hereof are hereinafter required or permitted
by the rules, regulations, pronouncements and opinions of the Financial
Accounting Standards Board or the American Institute of Certified Public
Accountants (or successors thereto or agencies with similar functions) and are
adopted by the Borrowers with the agreement of their independent certified
public accountants and such changes result in a change in the method of
calculation of any of the financial covenants, standards or terms found herein,
the parties hereto agree to enter into negotiations in order to amend such
provisions so as to equitably reflect such changes with the desired result that
the criteria for evaluating the financial condition of Borrowers shall be the
same after such changes as if such changes had not been made; provided, however,
that no change in GAAP that would affect the method of calculation of any of
the financial covenants, standards or terms shall be given effect in such
calculations until such provisions are amended, in a manner satisfactory to
Agent Bank and Requisite Lenders, to so reflect such change in accounting
principles.

 

ARTICLE VII

 

EVENTS OF DEFAULT

 

Section 7.01.                             Events
of Default.  Any of the following
events and the passage of any applicable notice and cure periods shall
constitute an Event of Default hereunder:

 

a.                                       Any
representation or warranty made by Borrowers pursuant to or in connection with
this Credit Agreement, the Revolving Credit Note, the

 

108

 

Environmental Certificate, or
any other Loan Document or in any report, certificate, financial statement or
other writing furnished by Borrowers in connection herewith, shall prove to be
false, incorrect or misleading in any materially adverse aspect as of the date
when made;

 

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

 

c.                                       Borrowers shall
have defaulted under the terms of any other obligation owing Agent Bank under
the terms of this Credit Agreement, which default continues beyond any
applicable grace period therein contained;

 

d.                                      Borrowers shall
have defaulted in the payment of any late charge, Nonusage Fees, expenses,
indemnities or any other amount owing under any Loan Document or under the Fee
Side Letter for a period of five (5) days after notice thereof to Borrowers
from Agent Bank;

 

e.                                       Borrowers or any
Restricted Subsidiary shall fail duly and punctually to perform or comply with:
(i) any term, covenant, condition or promise contained in
Sections 6.01, 6.02, 6.03, 6.04, 6.05, 6.06, 6.07, 6.08, 6.09, 6.10, or
6.12, or (ii) any other term, covenant, condition or promise contained in
this Credit Agreement, the Revolving Credit Note or Swingline Note, the Deeds
of Trust or any other Loan Document and, in the case of any term, covenant,
condition or promise covered by this clause (ii), such failure shall continue
thirty (30) days after written notice thereof is delivered to Borrowers by
Agent Bank or any Lender of such failure;

 

f.                                         Any of the
Security Documentation or any provision thereof: (i) shall cease to be in
full force and effect in any material respect and such cessation results in a
Material Adverse Change, or (ii) shall cease to give the Agent Bank in any
material respect the liens, rights, powers and privileges purported to be
created thereby, or (iii) the Borrowers or any Restricted Subsidiary shall
default in the due performance or observance of any term, covenant or agreement
on their part to be performed or observed pursuant to the Security
Documentation for a period of thirty (30) days after written notice thereof is
delivered to Borrowers by Agent Bank of such failure (or such shorter period
following such notice as may be specifically required in any Loan Document),
provided, however, that in the event the cure for such Event of Default
reasonably requires more than thirty (30) days, the cure period shall be
extended for an additional period so long as Borrowers diligently and promptly undertake
such cure and in no event shall the default remain uncured for a period in
excess of ninety (90) days following such written notice;

 

g.                                      Any Borrower or
any Restricted Subsidiary shall commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief

 

109

 

with respect to it or its debts
under the Bankruptcy Code or any bankruptcy, insolvency or other similar law
now or hereafter in effect or seeking the appointment of a trustee, receiver,
liquidator, custodian or other similar official, for all or substantially all
of its property, or shall consent to any such relief or to the appointment or
taking possession by any such official in any involuntary case or other proceeding
against it;

 

h.                                      An involuntary
case or other proceeding shall be commenced against any Borrower or any
Restricted Subsidiary seeking liquidation, reorganization or other relief with
respect to itself or its debts under the Bankruptcy Code or any bankruptcy,
insolvency or other similar law now or hereafter in effect or seeking the
appointment of a trustee, receiver, liquidator, custodian or other similar
official, for all or substantially all of its property, and such involuntary
case or other proceeding shall remain undismissed and unstayed for a period of
ninety (90) days;

 

i.                                          Any Borrower
or any Restricted Subsidiary makes an assignment for the benefit of its
creditors or admits in writing its inability to pay its debts generally as they
become due;

 

j.                                          Borrowers
default, beyond any applicable grace period, under the terms of the Senior
Unsecured Indenture or Senior Unsecured Notes if the effect thereof is to
permit the acceleration or require prepayment, purchase or redemption thereof
by the holders thereof or Borrowers shall fail to make any payment when due
(whether by scheduled maturity, required prepayment, offer to purchase,
redemption, acceleration, demand or otherwise, in each case beyond the grace
period provided with respect to such Indebtedness) on the Indebtedness
evidenced by the Woodview Loan Documents or on any other Indebtedness, if the
aggregate amount of such Indebtedness is Two Million Five Hundred Thousand
Dollars ($2,500,000.00), or more, or any breach, default or event of default shall
occur, or any other event shall occur or condition shall exist, under any
instrument, agreement or indenture pertaining thereto if the effect thereof is
to accelerate, the maturity of any such Indebtedness; or any such Indebtedness
shall be declared to be due and payable or shall be required to be prepaid,
purchased or redeemed (other than by a regularly scheduled required prepayment)
prior to the stated maturity thereof, or the holder of any lien in any amount,
shall commence foreclosure of such lien upon property of Borrowers having a
value in excess of One Million Dollars ($1,000,000.00) and such foreclosure
shall continue against such property to a date less than thirty (30) days prior
to the date of the proposed foreclosure sale;

 

k.                                       The occurrence
of any event of default, beyond any applicable grace period, under the terms of
any agreement with any Lender in connection with a Secured Interest Rate Hedge
relating to the Credit Facility;

 

l.                                          Any Borrower
or any Restricted Subsidiary shall be voluntarily or involuntarily divested of
title or possession of any Collateral Property or

 

110

 

shall lease or in any other
manner, voluntarily or involuntarily alienate any of its interest in any
Collateral Property or any portion of the Hotel/Casino Facilities, other than
the Permitted Encumbrances and as permitted in Section 6.11 or other than
within the Borrower Consolidation;

 

m.                                    Except as otherwise
provided in Section 5.29(d) hereinabove, the occurrence of any Reportable
Event with respect to a Pension Plan which Agent Bank determines in good faith
constitutes proper grounds for the termination of any Pension Plan by the
Pension Benefit Guaranty Corporation or for the appointment by an appropriate
United States District Court of a trustee to administer any such plan that
would result in a Material Adverse Change, should occur and should continue for
thirty (30) days after written notice of such determination shall have been
given to Borrowers by Agent Bank;

 

n.                                      Commencement
against any Borrower, any time after the execution of this Credit Agreement, of
any litigation which is not stayed, bonded, dismissed, terminated or disposed
of to the satisfaction of Agent Bank within ninety (90) days after its
commencement, and which (i) has a reasonable probability of success, and could,
if successful, in the reasonable opinion of Agent Bank, materially and
adversely affect the priority of the Liens granted Agent Bank by the Deeds of
Trust in the Collateral Properties, or (ii) results in the issuance of a
preliminary or permanent injunction which is not dissolved or stayed pending
appeal within sixty (60) days of its issuance and which preliminary or
permanent injunction materially adversely affects any Borrowers’ right to use
the Collateral Properties as the Hotel/Casino Facilities;

 

o.                                      The loss,
revocation, non-renewal or suspension, other than on account of forces majeure,
of any Borrower’s unrestricted Gaming Permits or the failure of any Borrower to
maintain gaming activities at the Hotel/Casino Facilities other than
(i) on account of forces majeure at least to the same general extent as is
presently conducted thereon for a period in excess of thirty (30) consecutive
days, or (ii) loss of the Gaming Permits applicable to the PIDI Facility
so long as such loss occurs prior to the Commencement of Construction of the
PIDI Construction Project;

 

p.                                      Any money
judgment, writ or warrant of attachment or similar process involving
(i) in any individual case an amount in excess of One Million Dollars
($1,000,000.00) or (ii) in the aggregate at any time an amount in excess
of Two Million Dollars ($2,000,000.00) (in either case not adequately covered
by insurance as to which a solvent and unaffiliated insurance company has
acknowledged coverage or released, bonded or expunged as provided in
Section 5.03) shall be entered or filed against any Borrower or any
Restricted Subsidiary or any of their respective assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days
(or in any event later than five (5) days prior to the date of any proposed
sale thereunder);

 

111

 

q.                                      Any order,
judgment or decree shall be entered against any Borrower decreeing its involuntary
dissolution or split up and such order shall remain undischarged and unstayed
for a period in excess of thirty (30) days, or Borrowers shall otherwise
dissolve or cease to exist;

 

r.                                         The occurrence
of any Change of Control;

 

s.                                       MTRI sells,
transfers, assigns, hypothecates or otherwise alienates its interest in all or
any portion of the common voting stock of MPI, SGLVI, SGRI, PIDI or RAI, other
than in connection with the Stock Pledges;

 

t.                                         The occurrence
of any default under any Subsidiary Guaranty delivered to Agent Bank or the
revocation, termination or repudiation of such Subsidiary Guaranty by any
Subsidiary prior to Credit Facility Termination;

 

u.                                      The occurrence of
any Material Adverse Change; or

 

v.                                      Any Subsidiary
Guaranty shall cease to be in full force or effect in any material respect, or
any Subsidiary Guarantor shall deny or disaffirm such Subsidiary Guarantor’s
obligations under the Subsidiary Guaranty, or such Subsidiary Guarantor shall
default for a period of thirty (30) days after notice thereof from Agent Bank
in the due performance or observance of any term, covenant or agreement on its
part to be performed or observed pursuant to the Subsidiary Guaranty.

 

Section 7.02.                             Default
Remedies.

 

a.                                       Upon the
occurrence and during the continuance of any Event of Default, Agent Bank may
and, upon the consent of Requisite Lenders shall: (i) declare all of the
outstanding unpaid Indebtedness hereunder and under the Notes and the other
Loan Documents, together with all accrued interest thereon, to be fully due and
payable without presentation, demand, protest or notice of any kind, and, in
the event of such declaration; (ii) shall terminate the obligation of
Lenders to make any advances for Borrowings; and (iii) shall terminate the
obligation of the Swingline Lender to make any advances under the Swingline
Facility; and (iv) shall terminate the obligation of the L/C Issuer to issue
Letters of Credit; and (v) shall direct the Borrowers to pay (and each of the
Borrowers hereby jointly and severally agree upon receipt of such notice to
pay) to the L/C Issuer an amount in Cash equal to the then outstanding L/C
Exposure, such Cash to be held by L/C Issuer in the Cash Collateral Account as
security for the repayment of all L/C Reimbursement Obligations thereafter
occurring; provided, that, the remedies set forth in clauses (i) through (v)
above will be deemed to have been automatically exercised on the occurrence of
any event set out in Sections 7.01(g), (h) or (i);

 

112

 

b.                                      Additionally,
while any Event of Default has occurred and remains continuing, the Banks
and/or Agent Bank may (i) exercise any and all remedies available to Banks
or Agent Bank under the Loan Documents; and/or (ii) exercise any other
remedies available to Banks or Agent Bank at law or in equity, including
requesting the appointment of a receiver to perform any acts required of
Borrowers, or any of them, under this Credit Agreement;

 

c.                                       The Banks and/or
Agent Bank may exercise any other remedies available to Banks or Agent Bank at
law or in equity, including requesting the appointment of a receiver to perform
any acts required of Borrowers under this Credit Agreement, and Borrowers
hereby specifically consent to any such request by Banks.

 

For the
purpose of carrying out this section and exercising these rights, powers and
privileges and subject to all applicable Gaming Laws, Borrowers hereby
irrevocably constitute and appoint Agent Bank as their true and lawful
attorney-in-fact to execute, acknowledge and deliver any instruments and do and
perform any acts such as are referred to in this paragraph in the name and on
behalf of Borrowers.  Agent Bank on
behalf of Lenders may exercise one or more of Lenders’ remedies simultaneously
and all its remedies are nonexclusive and cumulative.  Agent Bank and Lenders shall not be required to pursue or exhaust
any Collateral or remedy before pursuing any other Collateral or remedy.  Agent Bank and Lenders’ failure to exercise
any remedy for a particular default shall not be deemed a waiver of (i) such
remedy, nor their rights to exercise any other remedy for that default, nor
(ii) their right to exercise that remedy for any subsequent default.

 

Section 7.03.                             Application
of Proceeds.  All payments and
proceeds received and all amounts held or realized from the sale or other
disposition of the Collateral Properties and/or Collateral, which are to be
applied hereunder towards satisfaction of Borrowers’ obligations under the
Credit Facility, shall be applied in the following order of priority:

 

a.                                       First, to the
payment of all reasonable fees, costs and expenses (including reasonable
attorney’s fees and expenses) incurred by Agent Bank and Banks, their agents or
representatives in connection with the realization upon any of the Collateral;

 

b.                                      Next, to the
payment in full of any other amounts due under this Credit Agreement, the
Security Documentation, or any other Loan Documents (other than the Notes and
any liability under the Secured Interest Rate Hedges);

 

c.                                       Next, to the
balance of interest remaining unpaid on the Notes;

 

d.                                      Next, to the
balance of principal remaining unpaid on the Revolving Credit Note;

 

113

 

e.                                       Next, to the
payment of any other amounts owing to Banks which is necessary to cause Credit
Facility Termination, including, without limitation, any amounts owing with
respect to the Secured Interest Rate Hedges; and

 

f.                                         Next, the
balance, if any, of such payments or proceeds to whomever may be legally entitled
thereto.

 

Section 7.04.                             Notices.  In order to entitle Agent Bank and/or Banks
to exercise any remedy available hereunder, it shall not be necessary for Agent
Bank and/or Banks to give any notice, other than such notice as may be required
expressly herein or by applicable law.

 

Section 7.05.                             Agreement
to Pay Attorney’s Fees and Expenses. 
Subject to the provisions of Section 10.14, upon the occurrence of
an Event of Default, as a result of which Agent Bank shall require and employ
attorneys or incur other expenses for the collection of payments due or to
become due or the enforcement or performance or observance of any obligation or
agreement on the part of Borrowers contained herein, Borrowers shall, on
demand, pay to Agent Bank the reasonable fees of such attorneys and such other
reasonable expenses so incurred by Agent Bank.

 

Section 7.06.                             No
Additional Waiver Implied by One Waiver. 
In the event any agreement contained in this Credit Agreement should be
breached by either party and thereafter waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to
waive any other breach hereunder.

 

Section 7.07.                             Licensing
of Agent Bank and Lenders.  In the
event of the occurrence of an Event of Default hereunder or under any of the
Loan Documents and it shall become necessary, or in the opinion of Requisite
Lenders advisable, for an agent, supervisor, receiver or other representative
of Agent Bank and Banks to become licensed under the provisions of the laws
and/or regulations of any Gaming Authority as a condition to receiving the
benefit of any Collateral encumbered by the Deeds of Trust or other Loan
Documents for the benefit of Lenders or otherwise to enforce their rights
hereunder, Borrowers hereby give their consent to the granting of such license
or licenses and agree to execute such further documents as may be required in
connection with the evidencing of such consent.

 

Section 7.08.                             Exercise
of Rights Subject to Applicable Law. 
All rights, remedies and powers provided by this Article VII may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of the laws of any Governmental Authority and all of the
provisions of this Article VII are intended to be subject to all applicable
mandatory provisions of law that may be controlling and to be limited to the
extent necessary so that they will not render this Credit Agreement invalid,
unenforceable or not entitled to be recorded or filed under the provisions of any
applicable law.

 

114

 

Section 7.09.                             Discontinuance
of Proceedings.  In case Agent Bank
and/or Banks shall have proceeded to enforce any right, power or remedy under
this Credit Agreement, the Notes, the Deeds of Trust or any other Loan Document
by foreclosure, entry or otherwise, and such proceedings shall have been
discontinued or abandoned for any reason or shall have been determined
adversely to Banks, then and in every such case Borrowers, Agent Bank and/or
Banks shall be restored to their former positions and rights hereunder with
respect to the Collateral, and all rights, remedies and powers of Agent Bank
and Banks shall continue as if such proceedings had not been taken, subject to
any binding rule by the applicable court or other tribunal in any such
proceeding.

 

ARTICLE VIII

 

DAMAGE, DESTRUCTION AND CONDEMNATION

 

Section 8.01.                             No
Abatement of Payments.  If all or
any part of the Collateral shall be materially damaged or destroyed, or if
title to or the temporary use of the whole or any part of any of the Collateral
shall be taken or condemned by a competent authority for any public use or
purpose, there shall be no abatement or reduction in the amounts payable by
Borrowers hereunder or under the Revolving Credit Note, and Borrowers shall
continue to be obligated to make such payments.

 

Section 8.02.                             Distribution
of Capital Proceeds Upon Occurrence of Fire, Casualty, Other Perils or
Condemnation.  All Capital Proceeds
received from insurance policies under Section 5.09, including flood and
earthquake, covering any of the Collateral or from condemnation or similar
actions in regard to said Collateral, shall be paid directly to Agent
Bank.  In the event the amount of
Capital Proceeds paid to Agent Bank is equal to or less than One Million
Dollars ($1,000,000.00), such Capital Proceeds shall be paid to Borrowers,
unless a Default in the payment of any principal or interest owing under the
terms of the Bank Facilities or an Event of Default (other than non-monetary
Events of Default occurring as a direct consequence of each casualty loss or
condemnation) shall have occurred hereunder and is continuing.  In the event the amount of Capital Proceeds
paid to Agent Bank is greater than One Million Dollars ($1,000,000.00), then,
unless a Default or Event of Default (other than non-monetary Events of Default
occurring as a direct consequence of each casualty loss or condemnation) has
occurred hereunder and is then continuing, the entire amount so collected or so
much thereof as may be required (any excess to be returned to Borrowers) to
repair or replace the destroyed or condemned property, shall, subject to the
conditions set forth below, be released to Borrowers for repair or replacement
of the property destroyed or condemned or to reimburse Borrowers for the costs
of such repair or replacement incurred prior to the date of such release.  If a Default or Event of Default has
occurred hereunder and is then continuing such amount may, at the option of
Requisite Lenders, be applied as a Mandatory Commitment Reduction.  In the event Banks are required to release
all or a portion of the collected funds to Borrowers for

 

115

 

such repair or replacement of
the property destroyed or condemned, such release of funds shall be made in
accordance with the following terms and conditions:

 

a.                                       The repairs,
replacements and rebuilding shall be made in accordance with plans and
specifications approved by Requisite Lenders and in accordance with all
applicable laws, ordinances, rules, regulations and requirements of
Governmental Authorities;

 

b.                                      Borrowers shall
provide Agent Bank with a detailed estimate of the costs of such repairs or
restorations;

 

c.                                       Borrowers shall
satisfy the Requisite Lenders that after the reconstruction is completed, the
value of the Collateral, as determined by the Requisite Lenders in their
reasonable discretion, will not be less than the value of the Collateral
immediately prior to such destruction or condemnation as determined by the
Requisite Lenders pursuant to this Credit Agreement;

 

d.                                      In the Requisite
Lenders’ sole reasonable opinion, any undisbursed portion of the Available
Borrowings contemplated hereunder, after deposit of such insurance or
condemnation proceeds, is sufficient to pay all costs of reconstruction of the
Hotel/Casino Facility or other Collateral damaged, destroyed or condemned; or
if the undisbursed portion of such Credit Facility is not sufficient, Borrowers
shall deposit additional funds with the Agent Bank, sufficient to pay such
additional costs of reconstructing the Collateral;

 

e.                                       Borrowers have
delivered to the Agent Bank a construction contract for the work of
reconstruction in form and content, including insurance requirements, acceptable
to the Requisite Lenders with a contractor acceptable to the Requisite Lenders;

 

f.                                         The Requisite
Lenders in their reasonable discretion have determined that after the work of
reconstruction is completed, the Hotel/Casino Facilities will produce income sufficient
to pay all costs of operations and maintenance of the Hotel/Casino Facilities
with a reasonable reserve for repairs, and service all Indebtedness secured by
the Security Documentation;

 

g.                                      No Default in the
payment of any principal or interest owing under the terms of the Bank
Facilities, and no Event of Default has occurred and is continuing hereunder;

 

h.                                      Borrowers have
deposited with the Agent Bank that amount reasonably determined by the
Requisite Lenders (taking into consideration the amount of Borrowings available
and the amount of proceeds, if any, of insurance policies covering property
damage and business interruption, loss or rental income in

 

116

 

connection with the
Hotel/Casino Facility or Collateral damaged, destroyed or condemned accruing
and immediately forthcoming to the Agent Bank) to be sufficient to service no
less than seventy-five percent (75.0%) of the Indebtedness secured hereby
during the period of reconstruction, as reasonably estimated by the Requisite
Lenders;

 

i.                                          Before
commencing any such work, Borrowers shall, at their own cost and expense,
furnish Agent Bank with appropriate endorsements, if needed, to the “All Risk”
insurance policy which Borrowers are then presently maintaining, and course of
construction insurance to cover all of the risks during the course of such
work;

 

j.                                          Such work
shall be commenced by Borrowers within one hundred twenty (120) days after (i)
settlement shall have been made with the insurance companies or condemnation
proceeds shall have been received, and (ii) all the necessary governmental
approvals shall have been obtained, and such work shall be completed within a
reasonable time, free and clear of all liens and encumbrances so as not to
interfere with the lien of the Deeds of Trust; and

 

k.                                       Disbursements of
such Capital Proceeds shall be made in the customary manner used by Agent Bank
for the disbursement of construction loans.

 

ARTICLE IX

 

AGENCY PROVISIONS

 

Section 9.01.                             Appointment.

 

a.                                       Each Lender
hereby (i) designates and appoints WFB as the Agent Bank of such Lender under
this Credit Agreement and the Loan Documents, (ii) authorizes and directs
Agent Bank to enter into the Loan Documents other than this Credit Agreement
for the benefit of Lenders, and (iii) authorizes Agent Bank to take such
action on its behalf under the provisions of this Credit Agreement and the Loan
Documents and to exercise such powers as are set forth herein or therein,
together with such other powers as are reasonably incidental thereto, subject
to the limitations referred to in Sections 9.10(a) and 9.10(b).  Agent Bank agrees to act as such on the
express conditions contained in this Article IX.

 

b.                                      The provisions of
this Article IX are solely for the benefit of Agent Bank and Lenders, and
Borrowers shall not have any rights to rely on or enforce any of the provisions
hereof (other than as set forth in the provisions of Sections 9.03, 9.09
and 10.10), provided, however, that the foregoing shall in no way limit Borrowers’
obligations under this Article IX.  In
performing its functions and duties under this Credit Agreement, Agent Bank
shall act solely as Agent Bank of Lenders and does not assume and shall not be
deemed to have assumed any obligation toward or relationship of agency or trust
with or for Borrowers or any other Person.

 

117

 

Section 9.02.                             Nature
of Duties.  Agent Bank shall not
have any duties or responsibilities except those expressly set forth in this
Credit Agreement or in the Loan Documents. 
The duties of Agent Bank shall be administrative in nature.  Subject to the provisions of Sections 9.05
and 9.07, Agent Bank shall administer the Credit Facility in the same manner as
it administers its own loans.  Promptly
following the effectiveness of this Credit Agreement, Agent Bank shall send to
each Lender a duplicate executed original, to the extent the same are available
in sufficient numbers, of the Credit Agreement and a copy of each other Loan
Document in favor of Lenders and a copy of the filed or recorded Security
Documentation, with the originals of the latter to be held and retained by
Agent Bank for the benefit of all Lenders. 
Agent Bank shall not have by reason of this Credit Agreement a fiduciary
relationship in respect of any Lender. 
Nothing in this Credit Agreement or any of the Loan Documents, expressed
or implied, is intended or shall be construed to impose upon Agent Bank any
obligation in respect of this Credit Agreement or any of the Loan Documents
except as expressly set forth herein or therein.  Each Lender shall make its own independent investigation of the
financial condition and affairs of the Borrowers and the Collateral in
connection with the making and the continuance of the Credit Facility hereunder
and shall make its own appraisal of the creditworthiness of the Borrowers and
the Collateral, and, except as specifically provided herein, Agent Bank shall
not have any duty or responsibility, either initially or on a continuing basis,
to provide any Lender with any credit or other information with respect
thereto, whether coming into its possession before the Closing Date or at any
time or times thereafter.

 

Section 9.03.                             Disbursement
of Borrowings.

 

a.                                       Not later than
the next Banking Business Day following receipt of a Notice of Borrowing, Agent
Bank shall notify each Lender of the proposed Borrowing and the Funding
Date.  Each Lender shall make available
to Agent Bank (or the funding bank or entity designated by Agent Bank), the
amount of such Lender’s Pro Rata Share of such Borrowing in immediately
available funds not later than the times designated in Section 9.03(b).  Unless Agent Bank shall have been notified
by any Lender not later than the close of business (San Francisco time) on the
Banking Business Day immediately preceding the Funding Date in respect of any
Borrowing that such Lender does not intend to make available to Agent Bank such
Lender’s Pro Rata Share of such Borrowing, Agent Bank may assume that such
Lender shall make such amount available to Agent Bank.  If any Lender does not notify Agent Bank of
its intention not to make available its Pro Rata Share of such Borrowing as
described above, but does not for any reason make available to Agent Bank such
Lender’s Pro Rata Share of such Borrowing, such Lender shall pay to Agent Bank
forthwith on demand such amount, together with interest thereon at the Federal
Funds Rate.  In any case where a Lender
does not for any reason make available to Agent Bank such Lender’s Pro Rata
Share of such Borrowing, Agent Bank, in its sole discretion, may, but shall not
be obligated to, fund to Borrowers such Lender’s Pro Rata Share of such

 

118

 

Borrowing.  If Agent Bank funds to Borrowers such Lender’s
Pro Rata Share of such Borrowing and if such Lender subsequently pays to Agent
Bank such corresponding amount, such amount so paid shall constitute such
Lender’s Pro Rata Share of such Borrowing. 
Nothing in this Section 9.03(a) shall alter the respective rights
and obligations of the parties hereunder in respect of a Defaulting Lender or a
Non-Pro Rata Borrowing.

 

b.                                      Requests by Agent
Bank for funding by Lenders of Borrowings will be made by facsimile.  Each Lender shall make the amount of its Pro
Rata Share of such Borrowing available to Agent Bank in Dollars and in
immediately available funds, to such bank and account, in San Francisco,
California as Agent Bank may designate, not later than 11:00 a.m. (San
Francisco time) on the Funding Date designated in the Notice of Borrowing with
respect to such Borrowing, but in no event later than one (1) Banking Business
Day notice with respect to Base Rate Loans and two (2) Banking Business Days
notice with respect to LIBOR Loans, in each case following Lender’s receipt of
the applicable Notice of Borrowing.

 

c.                                       Nothing in this
Section 9.03 shall be deemed to relieve any Lender of its obligation hereunder
to make its Pro Rata Share of Borrowings on any Funding Date, nor shall any
Lender be responsible for the failure of any other Lender to perform its
obligations to advance its Pro Rata Share of any Borrowing hereunder, and the
Pro Rata Share of the Aggregate Commitment of any Lender shall not be increased
or decreased as a result of the failure by any other Lender to perform its
obligation to advance its Pro Rata Share of any Borrowing.

 

Section 9.04.                             Distribution
and Apportionment of Payments.

 

a.                                       Subject to
Section 9.04(b), payments actually received by Agent Bank for the account of
Lenders shall be paid to them promptly after receipt thereof by Agent Bank, but
in any event within one (1) Banking Business Day, provided that Agent Bank
shall pay to Lenders interest thereon, at the Federal Funds Rate from the
Banking Business Day following receipt of such funds by Agent Bank until such
funds are paid in immediately available funds to Lenders.  Subject to Section 9.04(b), all payments of
principal and interest in respect of Funded Outstandings, all payments of the
fees described in this Credit Agreement, and all payments in respect of any
other Obligations shall be allocated among such other Lenders as are entitled
thereto, in proportion to their respective Pro Rata Shares or otherwise as
provided herein.  Agent Bank shall promptly
distribute, but in any event within one (1) Banking Business Day, to each
Lender at its primary address set forth on the appropriate signature page
hereof or on the applicable Assignment and Assumption Agreement, or at such
other address as a Lender may request in writing, such funds as it may be
entitled to receive, provided that Agent Bank shall in any event not be bound
to inquire into or determine the validity, scope or priority of any interest or
entitlement of any Lender and may suspend all

 

119

 

payments and seek appropriate
relief (including, without limitation, instructions from Requisite Lenders or
all Lenders, as applicable, or an action in the nature of interpleader) in the
event of any doubt or dispute as to any apportionment or distribution
contemplated hereby.  The order of
priority herein is set forth solely to determine the rights and priorities of
Lenders as among themselves and may at any time or from time to time be changed
by Lenders as they may elect, in writing in accordance with Section 10.01,
without necessity of notice to or consent of or approval by Borrowers or any
other Person.  All payments or other
sums received by Agent Bank for the account of Lenders (including, without limitation,
principal and interest payments, the proceeds of any and all insurance
maintained with respect to any of the Collateral, and any and all condemnation
proceeds with respect to any of the Collateral) shall not constitute property
or assets of the Agent Bank and shall be held by Agent Bank, solely in its
capacity as administrative and collateral agent for itself and the other
Lenders, subject to the Loan Documents.

 

b.                                      Notwithstanding
any provision hereof to the contrary, until such time as a Defaulting Lender
has funded its Pro Rata Share of Borrowing which was previously a Non Pro Rata
Borrowing, or all other Lenders have received payment in full (whether by
repayment or prepayment) of the principal due in respect of such Non Pro Rata
Borrowing, all principal sums owing to such Defaulting Lender hereunder shall
be subordinated in right of payment to the prior payment in full of all
principal, in respect of all Non Pro Rata Borrowing in which the Defaulting
Lender has not funded its Pro Rata Share. 
This provision governs only the relationship among Agent Bank, each
Defaulting Lender, and the other Lenders; nothing hereunder shall limit the
obligation of Borrowers to repay all Borrowings in accordance with the terms of
this Credit Agreement.  The provisions
of this section shall apply and be effective regardless of whether an Event of
Default occurs and is then continuing, and notwithstanding (i) any other
provision of this Credit Agreement to the contrary, (ii) any instruction
of Borrowers as to their desired application of payments or (iii) the
suspension of such Defaulting Lender’s right to vote on matters which are
subject to the consent or approval of Requisite Lenders or all Lenders.  No Commitment Fee or L/C Fees shall accrue
in favor of, or be payable to, such Defaulting Lender from the date of any
failure to fund Borrowings or reimburse Agent Bank for any Liabilities and
Costs as herein provided until such failure has been cured, and Agent Bank
shall be entitled to (A) withhold or setoff, and to apply to the payment of the
defaulted amount and any related interest, any amounts to be paid to such
Defaulting Lender under this Credit Agreement, and (B) bring an action or
suit against such Defaulting Lender in a court of competent jurisdiction to
recover the defaulted amount and any related interest.  In addition, the Defaulting Lender shall
indemnify, defend and hold Agent Bank and each of the other Lenders harmless
from and against any and all Liabilities and Costs, plus interest thereon at
the Default Rate, which they may sustain or incur by reason of or as a direct
consequence of the Defaulting Lender’s failure or refusal to abide by its
obligations under this Credit Agreement.

 

120

 

Section 9.05.                             Rights,
Exculpation, Etc.  Neither Agent
Bank, any Affiliate of Agent Bank, nor any of their respective officers,
directors, employees, agents, attorneys or consultants, shall be liable to any
Lender for any action taken or omitted by them hereunder or under any of the
Loan Documents, or in connection herewith or therewith, except that Agent Bank
shall be liable for its gross negligence or willful misconduct.  In the absence of gross negligence or
willful misconduct, Agent Bank shall not be liable for any apportionment or
distribution of payments made by it in good faith pursuant to
Section 9.04, and if any such apportionment or distribution is
subsequently determined to have been made in error the sole recourse of any
Person to whom payment was due, but not made, shall be to recover from the recipients
of such payments any payment in excess of the amount to which they are
determined to have been entitled.  Agent
Bank shall not be responsible to any Lender for any recitals, statements,
representations or warranties herein or for the execution, effectiveness,
genuineness, validity, enforceability, collectibility or sufficiency of this
Credit Agreement, any of the Security Documentation or any of the other Loan
Documents, or any of the transactions contemplated hereby and thereby; or for
the financial condition of the Borrowers or any of their Affiliates.  Agent Bank shall not be required to make any
inquiry concerning either the performance or observance of any of the terms,
provisions or conditions of this Credit Agreement or any of the Loan Documents
or the financial condition of the Borrowers or any of their Affiliates, or the
existence or possible existence of any Default or Event of Default.

 

Section 9.06.                             Reliance.  Agent Bank shall be entitled to rely upon
any written notices, statements, certificates, orders or other documents,
telecopies or any telephone message believed by it in good faith to be genuine
and correct and to have been signed, sent or made by the proper Person, and
with respect to all matters pertaining to this Credit Agreement or any of the
Loan Documents and its duties hereunder or thereunder, upon advice of legal
counsel (including counsel for Borrowers), independent public accountant and
other experts selected by it.

 

Section 9.07.                             Indemnification.  To the extent that Agent Bank is not
reimbursed and indemnified by Borrowers, Lenders will reimburse, within ten
(10) Banking Business Days after notice from Agent Bank, and indemnify and
defend Agent Bank for and against any and all Liabilities and Costs which may
be imposed on, incurred by, or asserted against it in any way relating to or
arising out of this Credit Agreement, the Security Documentation or any of the
other Loan Documents or any action taken or omitted by Agent Bank or under this
Credit Agreement, the Security Documentation or any of the other Loan
Documents, in proportion to each Lender’s Pro Rata Share; provided that no
Lender shall be liable for any portion of such Liabilities and Costs resulting
from Agent Bank’s gross negligence or willful misconduct.  The obligations of Lenders under this
Section 9.07 shall survive the payment in full of all Obligations and the
termination of this Credit Agreement. 
In the event that after payment and distribution of any amount by Agent
Bank to Lenders, any Lender or third

 

121

 

party, including Borrowers, any
creditor of Borrowers or a trustee in bankruptcy, recovers from Agent Bank any
amount found to have been wrongfully paid to Agent Bank or disbursed by Agent
Bank to Lenders, then Lenders, in proportion to their respective Pro Rata
Shares, shall reimburse Agent Bank for all such amounts.  Notwithstanding the foregoing, Agent Bank
shall not be obligated to advance Liabilities and Costs and may require the
deposit by each Lender of its Pro Rata Share of any material Liabilities and
Costs anticipated by Agent Bank before they are incurred or made payable.

 

Section 9.08.                             Agent
Individually.  With respect to its
Pro Rata Share of the Aggregate Commitment hereunder and the Borrowings made by
it, Agent Bank shall have and may exercise the same rights and powers hereunder
and is subject to the same obligations and liabilities as and to the extent set
forth herein for any other Lender.  The
terms “Lenders”, “Requisite Lenders” or any similar terms may include Agent
Bank in its individual capacity as a Lender or one of the Requisite Lenders,
but Requisite Lenders shall not include Agent Bank solely in its capacity as
Agent Bank and need not necessarily include Agent Bank in its capacity as a
Lender.  Agent Bank and any Lender and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of banking, trust or other business with Borrowers or any of their
Affiliates as if it were not acting as Agent Bank or Lender pursuant hereto.

 

Section 9.09.                             Successor
Agent Bank; Resignation of Agent Bank; Removal of Agent Bank.

 

a.                                       Agent Bank may
resign from the performance of all its functions and duties hereunder at any
time by giving at least thirty (30) Banking Business Days’ prior written notice
to Lenders and Borrowers, and shall automatically cease to be Agent Bank
hereunder in the event a petition in bankruptcy shall be filed by or against
Agent Bank or the Federal Deposit Insurance Corporation or any other
Governmental Authority shall assume control of Agent Bank or Agent Bank’s
interests under the Bank Facilities. 
Further, Lenders (other than Agent Bank) may unanimously remove Agent
Bank at any time upon the occurrence of gross negligence or wilful misconduct
by Agent Bank by giving at least thirty (30) Banking Business Days’ prior
written notice to Agent Bank, Borrowers and all other Lenders.  Such resignation or removal shall take
effect upon the acceptance by a successor Agent Bank of appointment pursuant to
clause (b) or (c).

 

b.                                      Upon any such
notice of resignation by or removal of Agent Bank, Requisite Lenders shall
appoint a successor Agent Bank which appointment shall be subject to Borrowers’
consent (other than upon the occurrence and during the continuance of any Event
of Default), which shall not be unreasonably withheld or delayed.  Any successor Agent Bank must be a bank
(i) the senior debt obligations of which (or such bank’s parent’s senior
unsecured debt obligations) are rated not less

 

122

 

than Baa-2 by Moody’s Investors
Services, Inc. or a comparable rating by a rating agency acceptable to
Requisite Lenders and (ii) which has total assets in excess of Ten Billion
Dollars ($10,000,000,000.00).

 

c.                                       If a successor
Agent Bank shall not have been so appointed within said thirty (30) Banking
Business Day period, the retiring or removed Agent Bank, with the consent of
Borrowers (other than upon the occurrence and during the continuance of any
Event of Default) (which may not be unreasonably withheld or delayed), shall
then appoint a successor Agent Bank who shall meet the requirements described
in subsection (b) above and who shall serve as Agent Bank until such time, if
any, as Requisite Lenders, with the consent of Borrowers (other than upon the
occurrence and during the continuance of any Event of Default), appoint a
successor Agent Bank as provided above.

 

Section 9.10.                             Consent
and Approvals.

 

a.                                       Each consent,
approval, amendment, modification or waiver specifically enumerated in this
Section 9.10(a) shall require the consent of Requisite Lenders:

 

(i)                                     Approval
of Borrowings with less than full compliance with requirements of Article IIIB
(Section 2.04);

 

(ii)                                  Consent
to modification to financial reporting requirements or production of additional
financial or other information (Section 5.08);

 

(iii)                               Approval
of Investments (Section 6.08);

 

(iv)                              Approval
of a change in the method of calculation of any financial covenants, standards
or terms as a result of a change in accounting principle (Section 6.18);

 

(v)                                 Direct
Agent Bank to declare the unpaid balance of the Credit Facility fully due and
payable (Section 7.02);

 

(vi)                              Direct
the disposition of insurance proceeds or condemnation awards under certain
circumstances (Section 8.02);

 

123

 

(vii)                           Approval
of appointment of successor Agent Bank (Section 9.09);

 

(viii)                        Approval
of certain Protective Advances (Section 9.11(a));

 

(ix)                                Approval
of a Post-Foreclosure Plan and related matters (Section 9.11(e));

 

(x)                                   Consent
to action or proceeding against Borrowers or the Collateral by any Lender
(Section 9.12);

 

(xi)                                Except
as referred to in subsection (b) below, approval of any amendment, modification
or termination of this Credit Agreement, or waiver of any provision herein
(Section 10.01).

 

b.                                      Each consent,
approval, amendment, modification or waiver specifically enumerated in
Section 10.01 shall require the consent of all Lenders.

 

c.                                       In addition to
the required consents or approvals referred to in subsection (a) above,
Agent Bank may at any time request instructions from Requisite Lenders with
respect to any actions or approvals which, by the terms of this Credit
Agreement or of any of the Loan Documents, Agent Bank is permitted or required
to take or to grant without instructions from any Lenders, and if such
instructions are promptly requested, Agent Bank shall be absolutely entitled to
refrain from taking any action or to withhold any approval and shall not be
under any liability whatsoever to any Person for refraining from taking any
action or withholding any approval under any of the Loan Documents until it
shall have received such instructions from Requisite Lenders.  Without limiting the foregoing, no Lender
shall have any right of action whatsoever against Agent Bank as a result of
Agent Bank acting or refraining from acting under this Credit Agreement, the
Security Documentation or any of the other Loan Documents in accordance with
the instructions of Requisite Lenders or, where applicable, all Lenders.  Agent Bank shall promptly notify each Lender
at any time that the Requisite Lenders have instructed Agent Bank to act or
refrain from acting pursuant hereto.

 

d.                                      Each Lender
agrees that any action taken by Agent Bank at the direction or with the consent
of Requisite Lenders in accordance with the provisions of this Credit Agreement
or any Loan Document, and the exercise by Agent Bank at the

 

124

 

direction or with the consent
of Requisite Lenders of the powers set forth herein or therein, together with
such other powers as are reasonably incidental thereto, shall be authorized and
binding upon all Lenders, except for actions specifically requiring the
approval of all Lenders.  All communications
from Agent Bank to Lenders requesting Lenders’ determination, consent, approval
or disapproval (i) shall be given in the form of a written notice to each
Lender, including notice of the Lender Reply Period described immediately
hereinbelow, (ii) shall be accompanied by a description of the matter or
thing as to which such determination, approval, consent or disapproval is
requested, or shall advise each Lender where such matter or thing may be
inspected, or shall otherwise describe the matter or issue to be resolved,
(iii) shall include, if reasonably requested by a Lender and to the extent
not previously provided to such Lender, written materials and a summary of all
oral information provided to Agent Bank by Borrowers in respect of the matter or
issue to be resolved, and (iv) shall include Agent Bank’s recommended
course of action or determination in respect thereof.  Each Lender shall reply promptly, but in any event within ten
(10) Banking Business Days (the “Lender Reply Period”).  Unless a Lender shall give written notice to
Agent Bank that it objects to the recommendation or determination of Agent Bank
(together with a written explanation of the reasons behind such objection)
within the Lender Reply Period, such Lender shall be deemed to have approved of
or consented to such recommendation or determination.  With respect to decisions requiring the approval of Requisite
Lenders or all Lenders, Agent Bank shall submit its recommendation or
determination for approval of or consent to such recommendation or
determination to all Lenders and upon receiving the required approval or
consent shall follow the course of action or determination recommended to
Lenders by Agent Bank or such other course of action recommended by Requisite
Lenders, and each non-responding Lender shall be deemed to have concurred with
such recommended course of action.

 

Section 9.11.                             Agency
Provisions Relating to Collateral.

 

a.                                       Agent Bank is
hereby authorized on behalf of all Lenders, without the necessity of any notice
to or further consent from any Lender, from time to time prior to an Event of
Default, to take any action with respect to any Collateral or Loan Document
which may be necessary to perfect and maintain Liens of the Security
Documentation upon the Collateral granted pursuant to the Loan Documents.  Agent Bank may make, and shall be reimbursed
by Lenders (in accordance with their Pro Rata Shares), to the extent not
reimbursed by Borrowers, for, Protective Advance(s) during any one (1) calendar
year with respect to the Collateral up to the sum of (i) amounts expended
to pay real estate taxes, assessments and governmental charges or levies
imposed upon such Collateral, (ii) amounts expended to pay insurance
premiums for policies of insurance related to such Collateral, and
(iii) One Hundred Thousand Dollars ($100,000.00).  Protective Advances in excess of said sum
during any calendar year for any Collateral shall require the consent of
Requisite Lenders.  In addition, Agent
Bank is hereby authorized on behalf of all Lenders, without the necessity of
any notice to or

 

125

 

further consent from any
Lender, to waive the imposition of the late fees provided for in Section
2.09(a) up to a maximum of two (2) times per calendar year, including any
extensions.

 

b.                                      Lenders hereby
irrevocably authorize Agent Bank, at its option and in its discretion, to
release any Security Documentation granted to or held by Agent Bank upon any
Collateral (i) upon Credit Facility Termination and repayment and
satisfaction of all Borrowings, and all other Obligations and the termination
of this Credit Agreement, or (ii) if approved, authorized or ratified in
writing by Agent Bank at the direction of all Lenders.  Agent Bank shall not be required to execute
any document to evidence the release of the Security Documentation granted to
Agent Bank for the benefit of Lenders herein or pursuant hereto upon any
Collateral if, in Agent Bank’s opinion, such document would expose Agent Bank
to liability or create any obligation or entail any consequence other than the
release of such Security Documentation without recourse or warranty, and such
release shall not in any manner discharge, affect or impair the Obligations or
any Security Documentation upon (or obligations of Borrowers in respect of) any
property which shall continue to constitute part of the Collateral.

 

c.                                       Except as
provided in this Credit Agreement, Agent Bank shall have no obligation
whatsoever to any Lender or to any other Person to assure that the Collateral
exists or is owned by Borrowers or is cared for, protected or insured or has
been encumbered or that the Security Documentation granted to Agent Bank herein
or in any of the other Loan Documents or pursuant hereto or thereto have been
properly or sufficiently or lawfully created, perfected, protected or enforced
or are entitled to any particular priority.

 

d.                                      Should Agent Bank
(i) employ counsel for advice or other representation (whether or not any suit
has been or shall be filed) with respect to any Collateral or any part thereof,
or any of the Loan Documents, or the attempt to enforce any security interest
or Security Documentation on any of the Collateral, or (ii) commence any
proceeding or in any way seek to enforce its rights or remedies under the Loan
Documents, irrespective of whether as a result thereof Agent Bank shall acquire
title to any Collateral, either through foreclosure, deed in lieu of
foreclosure or otherwise, each Lender, upon demand therefor from time to time,
shall contribute its share (based on its Pro Rata Share) of the reasonable
costs and/or expenses of any such advice or other representation, enforcement
or acquisition, including, but not limited to, fees of receivers or trustees,
court costs, title company charges, filing and recording fees, appraisers’ fees
and fees and expenses of attorneys to the extent not otherwise reimbursed by
Borrowers; provided that Agent Bank shall not be entitled to reimbursement of
its attorneys’ fees and expenses incurred in connection with the resolution of
disputes between Agent Bank and other Lenders unless Agent Bank shall be the
prevailing party in any such dispute. 
Any loss of principal and interest resulting from any Event of Default
shall be shared by Lenders in accordance with their

 

126

 

respective Pro Rata
Shares.  It is understood and agreed
that in the event Agent Bank determines it is necessary to engage counsel for
Lenders from and after the occurrence of an Event of Default, said counsel
shall be selected by Agent Bank.

 

e.                                       In the event
that all or any portion of the Collateral is acquired by Agent Bank as the
result of a foreclosure or the acceptance of a deed or assignment in lieu of
foreclosure, or is retained in satisfaction of all or any part of Borrowers’
obligations, title to any such Collateral or any portion thereof shall be held
in the name of Agent Bank or a nominee or subsidiary of Agent Bank, as agent,
for the ratable benefit of Agent Bank and Lenders.  Agent Bank shall prepare a recommended course of action for such
Collateral (the “Post-Foreclosure Plan”), which shall be subject to the
approval of the Requisite Lenders. 
Unless a Lender shall give written notice to Agent Bank that it objects
to the recommended Post-Foreclosure Plan or any alternative Post-Foreclosure
Plan as set forth below, within the Lender Reply Period, such Lender shall be
deemed to have approved such Post-Foreclosure Plan.  In the event that Requisite Lenders do not approve such
Post-Foreclosure Plan, any Lender shall be permitted to submit an alternative
Post-Foreclosure Plan to Agent Bank, and Agent Bank shall submit any and all
such additional Post-Foreclosure Plans to the Lenders for evaluation and the
approval of Requisite Lenders.  In accordance
with the approved Post-Foreclosure Plan, Agent Bank shall manage, operate,
repair, administer, complete, construct, restore or otherwise deal with the
Collateral acquired and administer all transactions relating thereto,
including, without limitation, employing a management agent, leasing agent and
other agents, contractors and employees, including agents of the sale of such
Collateral, and the collecting of rents and other sums from such Collateral and
paying the expenses of such Collateral; actions taken by Agent Bank with
respect to the Collateral, which are not provided for in the approved
Post-Foreclosure Plan or reasonably incidental thereto, shall require the
consent of Requisite Lenders by way of supplement to such Post-Foreclosure
Plan.  Upon demand therefor from time to
time, each Lender will contribute its share (based on its Pro Rata Share) of
all reasonable costs and expenses incurred by Agent Bank pursuant to the
Post-Foreclosure Plan in connection with the construction, operation, management,
maintenance, leasing and sale of such Collateral.  In addition, Agent Bank shall render or cause to be rendered by
the managing agent, to each of the Lenders, monthly, an income and expense
statement for such Collateral, and each of the Lenders shall promptly
contribute its Pro Rata Share of any operating loss for such Collateral, and
such other expenses and operating reserves as Agent Bank shall deem reasonably
necessary pursuant to and in accordance with the Post-Foreclosure Plan.  To the extent there is net operating income
from such Collateral, Agent Bank shall, in accordance with all applicable
Gaming Laws and the Post-Foreclosure Plan, determine the amount and timing of
distributions to Lenders.  All such
distributions shall be made to Lenders in accordance with their respective Pro
Rata Shares.  Lenders acknowledge that
if title to any Collateral is obtained by Agent Bank or its nominee, such
Collateral will not be held as a permanent investment but will be liquidated as
soon as practicable.  Agent Bank

 

127

 

shall undertake to sell such
Collateral, at such price and upon such terms and conditions as the Requisite
Lenders shall reasonably determine to be most advantageous.  Any purchase money mortgage or deed of trust
taken in connection with the disposition of such Collateral in accordance with
the immediately preceding sentence shall name Agent Bank, as agent for Lenders,
as the beneficiary or mortgagee.  In
such case, Agent Bank and Lenders shall enter into an agreement with respect to
such purchase money mortgage defining the rights of Lenders in the same Pro
Rata Shares as provided hereunder, which agreement shall be in all material
respects similar to this Article IX insofar as the same is appropriate or
applicable.

 

Section 9.12.                             Lender
Actions Against Collateral.  Each
Lender agrees that it will not take any action, nor institute any actions or
proceedings, against Borrowers or any other obligor hereunder, under the
Security Documentation or under any other Loan Documents with respect to
exercising claims against or rights in any Collateral without the consent of
Requisite Lenders.

 

Section 9.13.                             Ratable
Sharing.  Subject to Section 9.03
and 9.04, Lenders agree among themselves that (i) with respect to all amounts
received by them which are applicable to the payment of the Obligations,
equitable adjustment will be made so that, in effect, all such amounts will be
shared among them ratably in accordance with their Pro Rata Shares, whether
received by voluntary payment, by counterclaim or cross action or by the
enforcement of any or all of the Obligations, or the Collateral, (ii) if
any of them shall by voluntary payment or by the exercise of any right of
counterclaim or otherwise, receive payment of a proportion of the aggregate
amount of the Obligations held by it which is greater than its Pro Rata Share
of the payments on account of the Obligations, the one receiving such excess
payment shall purchase, without recourse or warranty, an undivided interest and
participation (which it shall be deemed to have done simultaneously upon the
receipt of such payment) in such Obligations owed to the others so that all
such recoveries with respect to such Obligations shall be applied ratably in
accordance with their Pro Rata Shares; provided, that if all or part of such
excess payment received by the purchasing party is thereafter recovered from
it, those purchases shall be rescinded and the purchase prices paid for such
participations shall be returned to that party to the extent necessary to
adjust for such recovery, but without interest except to the extent the
purchasing party is required to pay interest in connection with such
recovery.  Borrowers agree that any Lender
so purchasing a participation from another Lender pursuant to this Section 9.13
may, to the fullest extent permitted by law, exercise all its rights of payment
with respect to such participation as fully as if such Lender were the direct
creditor of Borrowers in the amount of such participation.  No Lender shall exercise any setoff,
banker’s lien or other similar right in respect to any Obligations without the
prior written approval by Agent Bank.

 

128

 

Section 9.14.                             Delivery
of Documents.  Agent Bank shall as
soon as reasonably practicable distribute to each Lender at its primary address
set forth on the appropriate counterpart signature page hereof, or at such
other address as a Lender may request in writing, (i) copies of all documents
to which such Lender is a party or of which is executed or held by Agent Bank
on behalf of such Lender, (ii) all documents of which Agent Bank receives
copies from Borrowers pursuant to Article VI and Section 10.03, (iii) all
other documents or information which Agent Bank is required to send to Lenders
pursuant to the terms of this Credit Agreement, (iv) other information or
documents received by Agent Bank at the request of any Lender, and (v) all
notices received by Agent Bank pursuant to Section 5.20.  In addition, within fifteen (15) Banking
Business Days after receipt of a request in writing from a Lender for written
information or documents provided by or prepared by Borrowers, Agent Bank shall
deliver such written information or documents to such requesting Lender if
Agent Bank has possession of such written information or documents in its
capacity as Agent Bank or as a Lender.

 

Section 9.15.                             Notice
of Events of Default.  Agent Bank
shall not be deemed to have knowledge or notice of the occurrence of any Default
or Event of Default (other than nonpayment of principal of or interest on the
Credit Facility) unless Agent Bank has received notice in writing from a Lender
or Borrowers referring to this Credit Agreement or the other Loan Documents,
describing such event or condition and expressly stating that such notice is a
notice of a Default or Event of Default. 
Should Agent Bank receive such notice of the occurrence of a Default or
Event of Default, or should Agent Bank send Borrowers a notice of Default or Event
of Default, Agent Bank shall promptly give notice thereof to each Lender.

 

ARTICLE X

 

GENERAL TERMS AND CONDITIONS

 

The following
terms and conditions shall be applicable throughout the term of this Credit
Agreement:

 

Section 10.01.                       Amendments
and Waivers. (a) No amendment or modification of any provision of this
Credit Agreement shall be effective without the written agreement of Requisite
Lenders (after notice to all Lenders) and Borrowers (except for rights and
priorities of Lenders as amongst themselves as provided in Section 9.04(a)
which do not require the consent of Borrowers), and (b) no termination or
waiver of any provision of this Credit Agreement, or consent to any departure
by Borrowers therefrom (except as expressly provided in Section 9.11(a) with
respect to waivers of late fees), shall in any event be effective without the
written concurrence of Requisite Lenders (after notice to all Lenders), which
Requisite Lenders shall have the right to grant or withhold at their sole
discretion, except that the following amendments, modifications or waivers
shall require the consent of all Lenders:

 

129

 

(i)                                     modify
any requirement hereunder that any particular action be taken by all the
Lenders or by the Requisite Lenders, modify this Section 10.01 or change the
definition of “Requisite Lenders”, or remove Agent Bank under
Section 9.09(a), shall be effective unless consented to by all of the
Lenders, without regard to the vote of Agent Bank as a Lender;

 

(ii)                                  increase
the Aggregate Commitment or the Syndication Interest of any Lender, release any
Collateral except as specifically provided in the Credit Agreement, extend the
Maturity Date, release any Subsidiary that has executed a Subsidiary Guaranty
or change any provision expressly requiring the consent of all Lenders shall be
made without the consent of each Lender; or

 

(iii)                               reduce
any fees described in Section 2.10 or extend the due date for, or reduce
or postpone the amount of, any required principal reduction on the Credit
Facility, or reduce the rate of interest or postpone the payment of interest on
the Credit Facility, shall be made without the consent of all of the Lenders.

 

No amendment, modification, termination or waiver of any provision of
Article IX or any other provision referring to Agent Bank shall be effective
without the written concurrence of Agent Bank, but only if such amendment,
modification, termination or waiver alters the obligations or rights of Agent
Bank.  Any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
it was given.  No notice to or demand on
Borrowers in any case shall entitle Borrowers to any other further notice or
demand in similar or other circumstances. 
Any amendment, modification, termination, waiver or consent effected in
accordance with this Section 10.01 shall be binding on each assignee,
transferee or recipient of Agent Bank’s or any Lender’s Syndication Interest
under this Credit Agreement or the Credit Facility at the time
outstanding.  No modification of
Section 2.08 shall be made without the consent of Swingline Lender.  No modification of Section 2.14 shall
be made without the consent of the L/C Issuer.

 

Section 10.02.                       Failure
to Exercise Rights.  Nothing herein
contained shall impose upon Banks or Borrowers any obligation to enforce any
terms, covenants or conditions contained herein.  Failure of Banks or Borrowers, in any one or more instances, to
insist upon strict performance by Borrowers or Banks of any terms, covenants or
conditions of this Credit Agreement or the other Loan Documents, shall not be
considered or taken as a waiver or relinquishment by Banks or Borrowers of
their right to insist upon and to enforce in the future, by injunction or other
appropriate legal or equitable remedy, strict compliance by Borrowers or Banks
with all the terms, covenants and conditions of this Credit Agreement and the
other Loan Documents.  The consent of
Banks or Borrowers to any act or omission by Borrowers or Banks shall not be
construed to be a consent to any other or subsequent act or omission or to
waive the requirement for Banks’ or Borrowers’ consent to be obtained in any
future or other instance.

 

130

 

Section 10.03.                       Notices
and Delivery.  Unless otherwise
specifically provided herein, any consent, notice or other communication herein
required or permitted to be given shall be in writing and may be personally
served, telecopied or sent by courier service or United States mail and shall
be deemed to have been given when delivered in person or by courier service,
upon receipt of a telecopy (or on the next Banking Business Day if such
telecopy is received on a non-Banking Business Day or after 5:00 p.m. on a Banking
Business Day) or four (4) Banking Business Days after deposit in the United
States mail (registered or certified, with postage prepaid and properly
addressed).  Notices to Agent Bank
pursuant to Article II shall not be effective until received by Agent
Bank.  For the purposes hereof, the
addresses of the parties hereto (until notice of a change thereof is delivered
as provided in this Section 10.03) shall be as set forth below each party’s
name on the signature pages hereof, or, as to each party, at such other address
as may be designated by such party in an Assignment and Assumption Agreement or
in a written notice to all of the other parties.  All deliveries to be made to Agent Bank for distribution to the
Lenders shall be made to Agent Bank at the addresses specified for notice on
the signature page hereto and in addition, a sufficient number of copies of
each such delivery shall be delivered to Agent Bank for delivery to each Lender
at the address specified for deliveries on the signature page hereto or such
other address as may be designated by Agent Bank in a written notice.

 

Section 10.04.                       Modification
in Writing.  This Credit Agreement
and the other Loan Documents constitute the entire agreement between the
parties and supersede all prior agreements whether written or oral with respect
to the subject matter hereof, including, but not limited to, any term sheets
furnished by any of the Banks to Borrowers. 
Neither this Credit Agreement, nor any other Loan Documents, nor any
provision herein, or therein, may be changed, waived, discharged or terminated
orally, but only by an instrument in writing signed by the party against whom
enforcement of the change, waiver, discharge or termination is sought.

 

Section 10.05.                       Other
Agreements.  If the terms of any
documents, certificates or agreements delivered in connection with this Credit
Agreement are inconsistent with the terms of the Loan Documents, Borrowers
shall use their best efforts to amend such document, certificate or agreement
to the satisfaction of Agent Bank to remove such inconsistency.

 

Section 10.06.                       Counterparts.  This Credit Agreement may be executed by the
parties hereto in any number of separate counterparts with the same effect as
if the signatures hereto and hereby were upon the same instrument.  All such counterparts shall together
constitute but one and the same document.

 

Section 10.07.                       Rights,
Powers and Remedies are Cumulative. 
None of the rights, powers and remedies conferred upon or reserved to
Agent Bank, Banks or

 

131

 

Borrowers in this Credit
Agreement are intended to be exclusive of any other available right, power or
remedy, but each and every such right, power and remedy shall be cumulative and
not alternative, and shall be in addition to every right, power and remedy
herein specifically given or now or hereafter existing at law, in equity or by
statute.  Any forbearance, delay or
omission by Agent Bank, Banks or Borrowers in the exercise of any right, power
or remedy shall not impair any such right, power or remedy or be considered or
taken as a waiver or relinquishment of the right to insist upon and to enforce
in the future, by injunction or other appropriate legal or equitable remedy,
any of said rights, powers and remedies given to Agent Bank, Banks or Borrowers
herein.  The exercise of any right or
partial exercise thereof by Agent Bank, Banks or Borrowers shall not preclude
the further exercise thereof and the same shall continue in full force and
effect until specifically waived by an instrument in writing executed by Agent
Bank or Banks, as the case may be.

 

Section 10.08.                       Continuing
Representations.  All agreements,
representations and warranties made herein shall survive the execution and
delivery of this Credit Agreement, the making of the Credit Facility hereunder
and the execution and delivery of each other Loan Document until and final
payment of all sums owing under the Credit Facility and the occurrence of
Credit Facility Termination.

 

Section 10.09.                       Successors
and Assigns.  All of the terms,
covenants, warranties and conditions contained in this Credit Agreement shall
be binding upon and inure to the sole and exclusive benefit of the parties
hereto and their respective successors and assigns.

 

Section 10.10.                       Assignment
of Loan Documents by Borrowers or Syndication Interests by Lenders.

 

a.                                       This Credit
Agreement and the other Loan Documents to which Borrowers are a party will be
binding upon and inure to the benefit of Borrowers, the Agent Bank, each of the
Banks, and their respective successors and assigns, except that,
Borrowers may not assign their rights hereunder or thereunder or any interest
herein or therein without the prior written consent of all the Lenders.  Any attempted assignment or delegation in
contravention of the foregoing shall be null and void.  Any Lender may at any time pledge its
Syndication Interest in the Credit Facility, the Credit Agreement and the Loan
Documents to a Federal Reserve Bank, but no such pledge shall release that
Lender from its obligations hereunder or grant to such Federal Reserve Bank the
rights of a Lender hereunder absent foreclosure of such pledge.

 

b.                                      Each Lender may
assign all or any part of its Syndication Interest in the Credit Facility to
any Affiliate of such Lender which is an Eligible Assignee or to any other
Lender without consent and to one or more financial institutions that are
Eligible Assignees with the prior consent of the Agent Bank and Borrowers (so
long as no Event of Default has occurred and remains continuing), which
consents shall not be

 

132

 

unreasonably withheld or
delayed; provided, however, that the minimum amount of each such
assignment shall be One Million Dollars ($1,000,000.00), or such lesser amount
as constitutes the remaining amount of a Lender’s Syndication Interest in the
Credit Facility (except that there shall be no minimum assignment among the
Lenders or to their Affiliates), and each assignee Lender (or assignor if so
agreed between the assignee Lender and such assignor) shall pay to the Agent
Bank an assignment fee of Three Thousand Five Hundred Dollars ($3,500.00) with
respect to each such assignment.  Each
such assignment shall be evidenced by an assignment substantially in the form
of the Assignment and Assumption Agreement. 
Upon any such assignment, the assignee financial institution shall
become a Lender for all purposes under the Credit Agreement and each of the
Loan Documents and the assigning Lender shall be released from its further obligations
hereunder to the extent of such assignment. 
Agent Bank agrees to give prompt notice to Borrowers of each assignment
made under this Section 10.10(b) and to deliver to Borrowers each revision
to the Schedule of Lenders’ Proportions in Credit Facility made as a
consequence of each such assignment.

 

c.                                       Each Lender may
sell participations for all or any part of its Syndication Interest in the
Credit Facility; provided, however, that (i) such Lender shall
remain responsible for its total obligations under the Credit Agreement and
each of the Loan Documents, (ii) the Borrowers and the Agent Bank shall
continue to deal solely with such Lender in connection with such Lender’s
rights and obligations under the Credit Agreement and each of the Loan Documents,
and (iii) such Lender shall not sell any participation under which the
participant would have rights to approve any amendment or waiver relating to
the Credit Agreement or any Loan Document except to the extent any such
amendment or waiver would (w) extend the final Maturity Date or the date
for the payment or any installments of fees, principal or interest due in
respect of the Credit Facility, (x) reduce the amount of any required
principal reduction in respect to the Credit Facility, (y) reduce the interest
rates or fees applicable to the Credit Facility or (z) release any
material portion of the Collateral. 
Notwithstanding the foregoing, the rights of the Lenders to make
assignments and to grant participations shall be subject to the approval by the
Gaming Authorities of the assignee or participant, to the extent required by
applicable Gaming Laws, and to applicable securities laws.

 

d.                                      In the event any
Lender is found unsuitable as a Lender under the Credit Facility by the Nevada
Gaming Authorities (“Unsuitable Lender”), then to the extent permitted by
applicable Laws: (a) Agent Bank shall use its best efforts to find a
replacement Lender, (b) Borrowers shall have the right to make a Voluntary
Permanent Reduction in the amount necessary to reduce the Aggregate Commitment
by the amount of the Syndication Interest held by the Unsuitable Lender, and
any payments required in connection with such Voluntary Permanent Reduction
shall be made to the Unsuitable Lender and not on a pro rata basis to all
Lenders, (without any penalties, including any Breakage Charges) until a
replacement Lender, if any, commits to acquire the Syndication Interest of the
Unsuitable Lender, at which time the

 

133

 

Aggregate Commitment shall be
increased by the amount of the Voluntary Permanent Reduction, and (c) upon full
payment of all outstanding amounts of principal and interest owing it, such
Unsuitable Lender shall execute such documents as may be required by Agent
Bank, Borrowers or any applicable gaming authorities to evidence the
termination of its Syndication Interest in the Credit Facility.

 

Section 10.11.                       Action
by Lenders.  Whenever Banks shall
have the right to make an election, or to exercise any right, or their consent
shall be required for any action under this Credit Agreement or the Loan
Documents, then such election, exercise or consent shall be given or made for
all Banks by Agent Bank in accordance with the provisions of
Section 10.01.  Notices, reports
and other documents required to be given by Borrowers to Banks hereunder may be
given by Borrowers to Agent Bank on behalf of Banks, with sufficient copies for
distribution to each of the Banks, and the delivery to Agent Bank shall
constitute delivery to Banks.  In the event
any payment or payments are received by a Lender other than Agent Bank,
Borrowers consent to such payments being shared and distributed as provided
herein.

 

Section 10.12.                       Time of
Essence.  Time shall be of the
essence of this Credit Agreement.

 

Section 10.13.                       Choice
of Law and Forum.  This Credit
Agreement and each of the Loan Documents shall be governed by and construed in
accordance with the internal laws of the State of Nevada without regard to
principles of conflicts of law. 
Borrowers further agree that the full and exclusive forum for the
determination of any action relating to this Credit Agreement, the Loan
Documents, or any other document or instrument delivered in favor of Banks
pursuant to the terms hereof shall be either an appropriate Court of the State
of Nevada or the United States District Court or United States Bankruptcy Court
for the District of Nevada.

 

Section 10.14.                       Arbitration.

 

a.                                       Upon the request
of any party, whether made before or after the institution of any legal
proceeding, any action, dispute, claim or controversy of any kind (e.g.,
whether in contract or in tort, statutory or common law, legal or equitable)
(“Dispute”) now existing or hereafter arising between the parties in any way
arising out of, pertaining to or in connection with the Credit Agreement, Loan
Documents or any related agreements, documents, or instruments (collectively
the “Documents”), may, by summary proceedings (e.g., a plea in abatement or
motion to stay further proceedings), bring an action in court to compel
arbitration of any Dispute.

 

b.                                      All Disputes
between the parties shall be resolved by binding arbitration governed by the
Commercial Arbitration Rules of the American Arbitration Association.  Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction.

 

134

 

c.                                       No provision of,
nor the exercise of any rights under this arbitration clause shall limit the
rights of any party, and the parties shall have the right during any Dispute,
to seek, use and employ ancillary or preliminary remedies, judicial or
otherwise, for the purposes of realizing upon, preserving, protecting or
foreclosing upon any property, real or personal, which is involved in a
Dispute, or which is subject to, or described in, the Documents, including,
without limitation, rights and remedies relating to: (i) foreclosing
against any real or personal property collateral or other security by the
exercise of a power of sale under the Security Documentation or other security
agreement or instrument, or applicable law, (ii) exercising self-help remedies
(including setoff rights) or (iii) obtaining provisional or ancillary remedies
such as injunctive relief, sequestration, attachment, garnishment or the appointment
of a receiver from a court having jurisdiction before, during or after the
pendency of any arbitration.  The
institution and maintenance of an action for judicial relief or pursuit of
provisional or ancillary remedies or exercise of self-help remedies shall not
constitute a waiver of the right of any party, including the plaintiff, to
submit the Dispute to arbitration nor render inapplicable the compulsory
arbitration provision hereof.

 

Section 10.15.                       Waiver
of Jury Trial.  TO THE MAXIMUM
EXTENT PERMITTED BY LAW, BORROWERS AND EACH OF THE BANKS EACH MUTUALLY HEREBY
EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY ACTION, CAUSE OF ACTION,
CLAIM, DEMAND, OR PROCEEDING ARISING UNDER OR WITH RESPECT TO THIS CREDIT
AGREEMENT, THE REVOLVING CREDIT NOTE OR ANY OF THE LOAN DOCUMENTS, OR IN ANY
WAY CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE DEALINGS OF BORROWERS AND
BANKS WITH RESPECT TO THIS CREDIT AGREEMENT, THE REVOLVING CREDIT NOTE, OR ANY
OF THE LOAN DOCUMENTS, OR THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND IRRESPECTIVE OF WHETHER SOUNDING IN
CONTRACT, TORT, OR OTHERWISE.  TO THE
MAXIMUM EXTENT PERMITTED BY LAW, BORROWERS AND EACH OF THE BANKS EACH MUTUALLY
AGREE THAT ANY SUCH ACTION, CAUSE OF ACTION, CLAIM, DEMAND, OR PROCEEDINGS
SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY AND THAT THE DEFENDING PARTY
MAY FILE AN ORIGINAL COUNTERPART OF THIS SECTION WITH ANY COURT OR OTHER
TRIBUNAL AS WRITTEN EVIDENCE OF THE CONSENT OF THE COMPLAINING PARTY TO THE
WAIVER OF ITS RIGHT TO TRIAL BY JURY.

 

Section 10.16.                       Scope of
Approval and Review.  Any inspection
of the Hotel/Casino Facilities or other documents shall be deemed to be made
solely for Banks’ internal purposes and shall not be relied upon by the Borrowers
or any third party.  In no event shall
Lenders be deemed or construed to be joint venturers or partners of Borrowers.

 

135

 

Section 10.17.                       Severability
of Provisions.  In the event any one
or more of the provisions contained in this Credit Agreement shall be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby.

 

Section 10.18.                       Cumulative
Nature of Covenants.  All covenants
contained herein are cumulative and not exclusive of each other covenant.  Any action allowed by any covenant shall be
allowed only if such action is not prohibited by any other covenant.

 

Section 10.19.                       Costs to
Prevailing Party.  If any action or
arbitration proceeding is brought by any party against any other party under
this Credit Agreement or any of the Loan Documents, the prevailing party shall
be entitled to recover such costs and attorney’s fees as the court in such
action or proceeding may adjudge reasonable.

 

Section 10.20.                       Expenses.

 

a.                                       Generally.  Borrowers agree upon demand to pay, or
reimburse Agent Bank for, all of Agent Bank’s documented reasonable
out-of-pocket costs and expenses of every type and nature (excluding, however,
all Syndication Costs) incurred by Agent Bank at any time (whether prior to, on
or after the date of this Credit Agreement) in connection with (i) any
requests for consent, waiver or other modification of any Loan Document made by
Borrowers; (ii) the negotiation, preparation and execution of this Credit
Agreement (including, without limitation, the satisfaction or attempted
satisfaction of any of the conditions set forth in Article III), the Security
Documentation and the other Loan Documents and the advance of Borrowings;
(iii) the subordination of any Collateral, including title charges,
recording fees and reasonable attorneys’ fees and costs incurred in connection
therewith; (iv) any appraisals performed after the occurrence of an Event
of Default; (v) the creation, perfection or protection of the Security
Documentation on the Collateral (including, without limitation, any fees and
expenses for title and lien searches, local counsel in various jurisdictions,
filing and recording fees and taxes, duplication costs and corporate search
fees); and (vi) the protection, collection or enforcement of any of the
Obligations or the Collateral, including Protective Advances.

 

b.                                      After Event of
Default.  Borrowers further agree to
pay, or reimburse Agent Bank and Lenders, for all reasonable out-of-pocket
costs and expenses, including without limitation reasonable attorneys’ fees and
disbursements incurred by Agent Bank or Lenders after the occurrence of an
Event of Default (i) in enforcing any Obligation or in foreclosing against
the Collateral or exercising or enforcing any other right or remedy available
by reason of such Event of Default; (ii) in connection with any
refinancing or restructuring of the credit arrangements provided under this
Credit Agreement in the nature of a “work-out” or in any insolvency or

 

136

 

bankruptcy proceeding;
(iii) in commencing, defending or intervening in any litigation or in
filing a petition, complaint, answer, motion or other pleadings in any legal
proceeding relating to Borrowers and related to or arising out of the
transactions contemplated hereby; (iv) in taking any other action in or
with respect to any suit or proceeding (whether in bankruptcy or otherwise);
(v) in protecting, preserving, collecting, leasing, selling, taking
possession of, or liquidating any of the Collateral; or (vi) in attempting
to enforce or enforcing any lien in any of the Collateral or any other rights
under the Security Documentation.

 

Section 10.21.                       Setoff.  In addition to any rights and remedies of
the Agent Bank provided by law, if any Event of Default exists, Agent Bank is
authorized at any time and from time to time, without prior notice to any
Borrower, any such notice being waived by the Borrowers to the fullest extent
permitted by law, to set-off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held by Agent Bank
to or for the credit or the account of Borrowers against any and all
obligations of Borrowers under the Credit Facility, now or hereafter existing,
irrespective of whether or not the Agent Bank shall have made demand under this
Credit Agreement or any Loan Document and although such amounts owed may be contingent
or unmatured.  Agent Bank agrees
promptly to notify the Borrowers (and Agent Bank shall promptly notify each
other Lender) after any such setoff and application made by Agent Bank;
provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. 
The rights of Agent Bank under this Section 10.21 are in addition
to the other rights and remedies which Agent Bank may have.

 

Section 10.22.                       Borrower
Waivers and Consents.

 

a.                                       Each Borrower
shall be jointly and severally liable for the repayment of all sums owing under
the terms of this Credit Agreement and each the Loan Documents.

 

b.                                      Each Borrower
agrees that neither the Agent Bank nor any Bank shall have any responsibility
to inquire into the apportionment, allocation or disposition of any Borrowings
as among the Borrowers or within the Borrower Consolidation.

 

c.                                       For the purpose
of implementing the joint borrower provisions of this Credit Agreement and each
of the Loan Documents, each Borrower and the Collateral Affiliate hereby
irrevocably appoints each Authorized Officer as its agent and attorney-in-fact
for all purposes of this Credit Agreement and each of the Loan Documents,
including without limitation the giving and receiving of notices and other
communications, the making of requests for, or conversions or continuations of,
Borrowings, the execution and delivery of certificates and the receipt and
allocation of disbursements from the Banks.

 

137

 

d.                                      Each Borrower
acknowledges that the handling of the Credit Facility on a joint borrowing
basis as set forth in this Credit Agreement is solely an accommodation to
Borrowers and is done at their request. 
Each Borrower agrees that neither the Agent Bank, nor any Lender, shall
incur any liability to any Borrower as a result thereof.  To induce the Agent Bank and the Lenders to
enter into this Credit Agreement, and in consideration thereof, in accordance
with the provisions set forth in Section 5.14 of this Credit Agreement, each
Borrower hereby agrees to indemnify the Agent Bank and each Lender and hold
each such entity harmless from and against any and all liabilities, expenses,
losses, damages and/or claims of damage or injury asserted against such entity
by any Borrower or by any other Person arising from or incurred by reason of
the structuring of the Credit Facility as herein provided, reliance by the
Agent Bank or the Lenders on any requests or instructions from any Borrower or
any Authorized Officer, or any other action taken by the Agent Bank or a Lender
under the terms of this Credit Agreement or any of the Loan Documents at the
request of any Borrower or Authorized Officer. 
This Section 10.22(d) shall survive termination of this Credit
Agreement.

 

e.                                       Each Borrower
represents and warrants to the Agent Bank and the Lenders that (i) it has
established adequate means of obtaining from each Borrower on a continuing
basis financial and other information pertaining to the business, operations
and condition (financial and otherwise) of each of the Borrowers and its
respective property, and (ii) each Borrower now is and hereafter will be
completely familiar with the business, operations and condition (financial and
otherwise) of each Borrower, and its property. 
Each Borrower hereby waives and relinquishes any duty on the part of the
Agent Bank or any Lender to disclose to such Borrower any matter, fact or thing
relating to the business, operations or condition (financial or otherwise) of
any Borrower, or the property of any Borrower, whether now or hereafter known
by the Agent Bank or any Lender at any time through Credit Facility
Termination.

 

f.                                         Each Borrower
acknowledges that the Funded Outstandings, or portions thereof, may derive from
value provided directly to another Borrower and, in full recognition of that
fact, each Borrower consents and agrees that the Agent Bank and any Lender may,
at any time and from time to time, without notice or demand, and without
affecting the enforceability or security of the Loan Documents:

 

(i)                                     accept
partial payments on the Credit Facility;

 

(ii)                                  receive
and hold additional security or guaranties for the Credit Facility or any part
thereof;

 

138

 

(iii)                               release,
reconvey, terminate, waive, abandon, subordinate, exchange, substitute,
transfer and enforce any security or guaranties, and apply any security and
direct the order or manner of sale thereof, as the Agent Bank or Requisite
Lenders in their sole and absolute discretion may determine;

 

(iv)                              release
any party or any guarantor from any personal liability with respect to the
Credit Facility or any part thereof;

 

(v)                                 settle,
release on terms satisfactory to the Agent Bank or Requisite Lenders or by
operation of applicable laws or otherwise liquidate or enforce the Credit
Facility and any security or guaranty in any manner, consent to the transfer of
any security and bid and purchase at any sale; and/or

 

(vi)                              consent
to the merger, change or any other restructuring or termination of the
corporate existence of any other Borrower or any other Person, and
correspondingly restructure the Credit Facility, continuing existence of any
lien or encumbrance under any other Loan Document to which any Borrower is a
party or the enforceability hereof or thereof with respect to all or any part
of the Credit Facility.

 

Each Borrower expressly waives any right to require the Agent Bank or
any Lender to marshal assets in favor of any Borrower, any other party or any
other Person or to proceed against any other Borrower or any other party or any
Collateral provided by any Borrower or any other party, and agrees that the
Agent Bank and Lenders may proceed against Borrowers and/or the Collateral in
such order as they shall determine in their sole and absolute discretion.  The Agent Bank and Lenders may file a
separate action or actions against any Borrower, whether action is brought or
prosecuted with respect to any other security or against any other Person, or
whether any other Person is joined in any such action or actions.  Each Borrower agrees that the Agent Bank or
Lenders and any other Borrower may deal with each other in connection with the
Credit Facility or otherwise, or alter any contracts or agreements now or
hereafter existing between any of them, in any manner whatsoever, all without
in any way altering or affecting the obligations of such Borrower under the
Loan Documents or the perfection of the Security Documentation.  Each

 

139

 

Borrower
expressly waives any and all defenses now or hereafter arising or asserted by
reason of: (a) any disability or other defense of any Borrower or any other
party with respect to the Credit Facility, (b) the unenforceability or
invalidity as to any Borrower, or any other party of the Credit Facility, (c)
intentionally omitted, (d) the cessation for any cause whatsoever of the
liability of any Borrower or any other party (other than by reason of the full
payment and performance of the Credit Facility and the occurrence of Credit
Facility Termination), (e) any failure of the Agent Bank or any Lender to
give notice of sale or other disposition to any Borrower or any defect in any
notice that may be given in connection with any sale or disposition, (f) any
act or omission of the Agent Bank or any Lender or others that directly or
indirectly results in or aids the discharge or release of any Borrower or any
other Person or the Credit Facility or any other security or guaranty therefor
by operation of law or otherwise, (g) any law which provides that the
obligation of a surety or guarantor must neither be larger in amount nor in
other respects more burdensome than that of the principal or which reduces a
surety’s or guarantor’s obligation in proportion to the principal obligation,
(h) any failure of the Agent Bank or any Lender to file or enforce a claim
in any bankruptcy or other proceeding with respect to any Person, (i) the
election by the Agent Bank or any Lender, in any bankruptcy proceeding of any Person,
of the application or non-application of Section 1111(b)(2) of the United
States Bankruptcy Code, (j) any extension of credit or the grant of any
lien or encumbrance under Section 364 of the United States Bankruptcy
Code, (k) any use of cash collateral under Section 363 of the United
States Bankruptcy Code, (l) any agreement or stipulation with respect to
the provision of adequate protection in any bankruptcy proceeding of any
Person, (m) the avoidance of any lien or encumbrance in favor of the Agent Bank
or any Lender for any reason, (n) any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including any discharge of, or bar or stay
against collecting, all or any of the obligations (or any interest thereon) in
or as a result of any such proceeding, or (o) any election of remedies by
the Agent Bank or any Lender, even if the effect thereof is to destroy or
impair any Borrower’s right to subrogation, reimbursement, exoneration,
indemnification or contribution.

 

g.                                      Each Borrower
authorizes the Agent Bank and any Lender, upon the occurrence of any
acceleration of the Indebtedness then owing under the

 

140

 

Credit Facility, at their sole
option, without any other notice or demand and without affecting any of the
Credit Facility or the validity or enforceability of any liens or encumbrance
in favor of the Agent Bank or any Lender on any Collateral, to foreclose any or
all of the Deeds of Trust by judicial or nonjudicial sale.  To the extent permitted by applicable law,
each Borrower expressly waives any defenses to the enforcement of the Loan
Documents or any liens or encumbrances created or granted under the Loan
Documents or to the recovery by the Agent Bank or any Lender against any other
Borrower or any guarantor or any other Person liable therefor of any deficiency
after a judicial or nonjudicial foreclosure or sale, even though such a
foreclosure or sale may impair the subrogation rights of a Borrower and may
preclude a Borrower from obtaining reimbursement or contribution from any other
Borrower.

 

h.                                      Notwithstanding
anything to the contrary elsewhere contained herein or in any other Loan
Document to which any Borrower is a party, each Borrower hereby expressly
agrees with respect to the Borrowers and their successors and assigns
(including any surety) and any other Person which is directly or indirectly a
creditor of the other Borrowers or any surety for any other Borrower, not to
exercise, until Credit Facility Termination has irrevocably occurred, any
rights at law or in equity to subrogation, to reimbursement, to exoneration, to
contribution, to setoff or to any other rights that could accrue to a surety
against a principal, to a guarantor against a maker or obligor, to an
accommodation party against the party accommodated, or to a holder or
transferee against a maker, and which such Borrower may have or hereafter
acquire against any of the Borrowers or any other such Person in connection
with or as a result of such Borrower’s execution, delivery and/or performance
of this Credit Agreement or any other Loan Document to which such Borrower is a
party.

 

Section 10.23.                       Confidentiality.  Each of the Banks agrees to hold any non-public
information that it may receive from Borrowers pursuant to this Credit
Agreement (or pursuant to any other Loan Document) in confidence and consistent
with their respective policies for handling material non-public information, except
for disclosure: (a) To the other Banks; (b) To legal counsel and accountants
for Borrowers or any of the Banks; 
(c) To the other professional advisors to Borrowers or any of the
Banks, provided that the recipient has accepted such information subject to a
confidentiality agreement substantially similar to this Section 10.23;
(d) To regulatory officials having jurisdiction over that Bank; (e) To any
Gaming Authority having regulatory jurisdiction over Borrowers or their
respective Subsidiaries, provided that each of the Banks agrees to endeavor to
notify Borrowers of any such disclosure; (f) As required by law or legal
process or in connection with any legal proceeding, provided that such
disclosing Bank uses reasonable efforts to notify Borrowers prior to any such
disclosure; and (g) To another financial institution in connection with a
disposition or proposed disposition to that financial institution of all or
part of that Lender’s Syndication Interest hereunder or in the Revolving Credit
Note, provided that the recipient has accepted such information subject to a
confidentiality agreement substantially similar to

 

141

 

this Section 10.23.  For purposes of the foregoing, “non-public
information” shall mean any information respecting Borrowers or their
respective Subsidiaries reasonably considered by Borrowers to be material and
not available to the public, other than (i) information previously
filed with any governmental agency and available to the public,
(ii) information which is available to the general public at the time of
use or disclosure, (iii) information which becomes available to the
general public, other than by manner of unauthorized disclosure or use, or (iv)
information previously published in any public medium from a source other than,
directly or indirectly, that Bank. 
Nothing in this Section shall be construed to create or give rise to any
fiduciary duty on the part of the Agent Bank or the Banks to Borrowers.

 

Section 10.24.                       The
Existing Credit Agreement and Security Documents.  The parties hereto agree that as of the Closing Date:
(i) the Existing Credit Agreement shall be and is hereby amended,
superseded and restated in its entirety by this Credit Agreement; and
(ii) each of the Existing Security Documents shall be and are hereby
amended, superseded and restated in their entirety by the Security
Documentation.

 

Section 10.25.                       Schedules
Attached.  Schedules are attached
hereto and incorporated herein and made a part hereof as follows:

 

	
  Schedule
  2.01(a)

  	
  -

  	
  Schedule of
  Lenders’ Proportions in Credit Facility

  
	
   

  	
   

  	
   

  
	
  Schedule
  3.18

  	
  -

  	
  Schedule of
  Significant Litigation

  
	
   

  	
   

  	
   

  
	
  Schedule
  4.15

  	
  -

  	
  Schedules of
  Spaceleases

  

 

(A)      MPI Schedule of Spaceleases

 

(B)        SGLVI
Schedule of Spaceleases

 

	
  Schedule 4.16

  	
  -

  	
  Schedules of Equipment Leases and Contracts

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (A)                                      MPI Schedule of
  Equipment Leases and Contracts

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (B)                                        SGLVI
  Schedule of Equipment Leases and Contracts

  
	
   

  	
   

  	
   

  
	
  Schedule 4.22

  	
  -

  	
  Schedule of Trademarks, Patents, Licenses, Franchises, Formulas and
  Copyrights

  
	
   

  	
   

  	
   

  
	
  Schedule 4.23

  	
  -

  	
  Schedule of Contingent Liabilities

  
	
   

  	
   

  	
   

  
	
  Schedule 4.24

  	
  -

  	
  Schedule of Restricted and Unrestricted Subsidiaries

  
	
   

  	
   

  	
   

  

 

142

 

Section 10.26.                       Exhibits
Attached.  Exhibits are attached
hereto and incorporated herein and made a part hereof as follows:

 

	
  Exhibit A

  	
  -

  	
  Revolving
  Credit Note

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Notice of
  Borrowing - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Continuation/Conversion
  Notice -Form

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Compliance
  Certificate - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Pricing Certificate
  - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Authorized
  Officer Certificate -Form

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Closing
  Certificate - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  -

  	
  Assignment
  and Assumption Agreement - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  -

  	
  Legal
  Opinion - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit J

  	
  -

  	
  Subsidiary
  Guaranty - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit K

  	
  -

  	
  MPI Real
  Property Description

  
	
   

  	
   

  	
   

  
	
  Exhibit L

  	
  -

  	
  SGLVI Real
  Property Description

  
	
   

  	
   

  	
   

  
	
  Exhibit M-1

  	
  -

  	
  MPI
  Route 2 Condemnation Property Description

  
	
   

  	
   

  	
   

  
	
  Exhibit M-2

  	
  -

  	
  MPI Route 2
  Condemnation Easements Description

  
	
   

  	
   

  	
   

  
	
  Exhibit N

  	
  -

  	
  Logan
  Primary Parcel Description

  
	
   

  	
   

  	
   

  
	
  Exhibit O

  	
  -

  	
  Logan Filly
  Parcel Description

  
	
   

  	
   

  	
   

  
	
  Exhibit P

  	
  -

  	
  Swingline
  Note - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit Q

  	
  -

  	
  Notice of
  Swingline Advance - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit R

  	
  -

  	
  Cash
  Collateral Pledge Agreement - Form

  
	
   

  	
   

  	
   

  
	
  Exhibit S

  	
  -

  	
  PIDI Options

  

 

143

 

IN WITNESS WHEREOF, the parties hereto have
caused this Credit Agreement to be executed as of the day and year first above
written.

 

	
   

  	
   

  	
  BORROWERS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MTR GAMING GROUP, INC.,

  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MOUNTAINEER PARK, INC.,

  a West Virginia corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SPEAKEASY GAMING OF LAS VEGAS, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
						

 

S-1

 

	
   

  	
   

  	
  SPEAKEASY GAMING OF RENO, INC.,

  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PRESQUE ISLE DOWNS, INC.,

  a Pennsylvania corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RACING ACQUISITION, INC.,

  an Ohio corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Borrowers:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State Route 2, South

  
	
   

  	
   

  	
  P.O. Box 356

  
	
   

  	
   

  	
  Chester, West Virginia 26034

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attn: Edson R. Arneault

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (304) 387-8300

  
	
   

  	
   

  	
  Facsimile: (304) 387-1598

  
							

 

S-2

 

	
   

  	
   

  	
  BANKS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WELLS FARGO BANK,

  National Association, Agent Bank, Lender,

  Swingline Lender and L/C Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Virginia Christenson

  	
   

  
	
   

  	
   

  	
   

  	
  Virginia Christenson,

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3800 Howard Hughes Parkway

  Las Vegas, NV  89109

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (702) 791-6224

  
	
   

  	
   

  	
  Facsimile: (702) 791-6248

  

 

S-3

 

	
   

  	
   

  	
  NATIONAL CITY BANK OF

  PENNSYLVANIA, Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Neil Corry-Roberts

  	
   

  
	
   

  	
   

  	
   

  	
  Neil Corry-Roberts,

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  20 Stanwix Street

  Pittsburgh, PA  15222-4802

  Attn:  Neil Corry-Roberts, VP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (412) 644-8218

  Facsimile: (412) 644-8889

  

 

S-4

 

	
   

  	
   

  	
  BRANCH BANKING AND TRUST

  COMPANY,

  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Robert J. Bowlby

  	
   

  
	
   

  	
   

  	
   

  	
  Robert J. Bowlby

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  496 High Street

  Morgantown, WV  26505

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone: (304) 285-5638

  Facsimile: (304) 285-5635

  

 

S-5Exhibit 10.4

 

REVOLVING CREDIT NOTE

 

	
  $50,000,000.00

  	
   

  	
  March 28, 2003

  

 

FOR VALUE
RECEIVED, the undersigned, MTR GAMING GROUP, INC., a Delaware corporation,
MOUNTAINEER PARK, INC., a West Virginia corporation, SPEAKEASY GAMING OF LAS
VEGAS, INC., a Nevada corporation, SPEAKEASY GAMING OF RENO, INC., a Nevada
corporation, PRESQUE ISLE DOWNS, INC., a Pennsylvania corporation, and RACING
ACQUISITION, INC., an Ohio corporation (collectively the “Borrowers”) jointly
and severally promise to pay to the order of WELLS FARGO BANK, National
Association, as Agent Bank on behalf of itself and the other Lenders as defined
and described in the Credit Agreement described hereinbelow (each, together
with their respective successors and assigns, individually being referred as a
“Lender” and collectively as the “Lenders”) such sums as Lenders may hereafter
loan or advance or re-loan to the Borrowers from time to time pursuant to the
Credit Facility as described in the Credit Agreement, hereinafter defined up to
the maximum principal sum of Fifty Million Dollars ($50,000,000.00) (or such
lesser amount of such loans and advances as may be outstanding from time to
time), the unpaid balance of which shall not exceed in the aggregate the
Maximum Permitted Balance at any time, together with interest on the principal
balance outstanding from time to time at the rate or rates set forth in the
Credit Agreement.

 

A.                                   Incorporation
of Credit Agreement.

 

1.                                       Reference
is made to the Third Amended and Restated Credit Agreement dated concurrently
herewith (as may be further amended, modified, extended, renewed or restated
from time to time, the “Credit Agreement”), executed by and among the Borrowers
and the Lenders, Swingline Lender and L/C Issuer therein named, and Wells Fargo
Bank, National Association, as administrative and collateral agent for itself
and for the Lenders (the “Agent Bank”). 
Terms defined in the Credit Agreement and not otherwise defined herein
are used herein with the meanings defined for those terms in the Credit
Agreement.  This is the Revolving Credit
Note (“Revolving Credit Note”) referred to in the Credit Agreement, and any
holder hereof (in accordance with the Credit Agreement) is entitled to all of
the rights, remedies, benefits and privileges provided for in the Credit
Agreement as originally executed or as it may from time to time be
supplemented, modified or amended.  The
Credit Agreement, among other things, contains provisions for acceleration of
the maturity hereof upon the happening of certain stated events upon the terms
and conditions therein specified.

 

2.                                       The
outstanding principal indebtedness evidenced by this Revolving Credit Note
shall be payable as provided in the Credit Agreement and in any event on April
1, 2008, the Maturity Date.

 

1

 

3.                                       Interest
shall be payable on the outstanding daily unpaid principal amount of each
Borrowing hereunder from the date thereof until payment in full and shall
accrue and be payable at the rates and on the dates set forth in the Credit
Agreement both before and after Default and before and after maturity and
judgment, with interest on overdue interest to bear interest at the Default
Rate, to the fullest extent permitted by applicable law.

 

4.                                       The
amount of each payment hereunder shall be made to the Agent Bank at the Agent
Bank’s office as specified in the Credit Agreement for the account of the
Lenders at the time or times set forth therein, in lawful money of the United
States of America and in immediately available funds.

 

5.                                       Borrowings
hereunder shall be made in accordance with the terms, provisions and procedures
set forth in the Credit Agreement.

 

B.                                     Default.  The “Late Charges and Default Rate”
provisions contained in Section 2.10 and the “Events of Default”
provisions contained in Article VII of the Credit Agreement are hereby
incorporated by this reference as though fully set forth herein.  Upon the occurrence of a Default or Event of
Default, Borrowers’ right to convert or exercise its Interest Rate Option for a
LIBOR Loan, or the continuation thereof at the expiration of the then current
Interest Period, shall immediately, without notice or demand, terminate for so
long as a Default or Event of Default is continuing.

 

C.                                     Waiver.  Borrowers
waive diligence, demand, presentment for payment, protest and notice of
protest.

 

D.                                    Collection
Costs.  In the event of the
occurrence of an Event of Default, the Borrowers agree to pay all reasonable
costs of collection, including reasonable attorneys fees, in addition to and at
the time of the payment of such sum of money and/or the performance of such
acts as may be required to cure such default. 
In the event legal action is commenced for the collection of any sums
owing hereunder the undersigned agrees that any judgment issued as a consequence
of such action against Borrowers shall bear interest at a rate equal to the
Default Rate until fully paid.

 

E.                                      Interest
Rate Limitation.  Notwithstanding
any provision herein or in any document or instrument now or hereafter securing
this Revolving Credit Note, the total liability for payments in the nature of
interest shall not exceed the limits now imposed by the applicable laws of the
State of Nevada or the United States of America.

 

F.                                      Security.  This Revolving Credit Note is secured by the
Security Documentation described in the Credit Agreement.

 

2

 

G.                                     Governing
Law.  This Revolving Credit Note has
been delivered in Las Vegas, Nevada, and shall be governed by and construed in
accordance with the laws of the State of Nevada.

 

H.                                    Partial
Invalidity.  If any provision of
this Revolving Credit Note shall be prohibited by or invalid under any
applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
of any other provision of this Revolving Credit Note.

 

I.                                         No
Conflict with Credit Agreement. 
This Revolving Credit Note is issued under, and subject to, the terms,
covenants and conditions of the Credit Agreement, which Credit Agreement is by
this reference incorporated herein and made a part hereof.  No reference herein to the Credit Agreement
and no provision of this Revolving Credit Note or the Credit Agreement shall
alter or impair the obligations of Borrowers, which are absolute and
unconditional, to pay the principal of and interest on this Revolving Credit
Note at the place, at the respective times, and in the currency prescribed in
the Credit Agreement.  If any provision
of this Revolving Credit Note conflicts or is inconsistent with any provision
of the Credit Agreement, the provisions of the Credit Agreement shall govern.

 

3

 

IN WITNESS
WHEREOF, this Revolving Credit Note has been executed as of the date first
hereinabove written.

 

	
   

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  MTR GAMING GROUP, INC.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  MOUNTAINEER PARK, INC.,

  a West Virginia corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF LAS VEGAS,

  INC., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  SPEAKEASY GAMING OF RENO,

  INC., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  PRESQUE ISLE DOWNS, INC.,

  a Pennsylvania corporation

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  

 

4

 

	
   

  	
  RACING ACQUISITION, INC., an Ohio

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Edson R. Arneault

  	
   

  
	
   

  	
   

  	
  Edson R. Arneault,

  
	
   

  	
   

  	
  President

  
					

 

5

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