Loan Agreement [Amended and Restated No. 2] (2004)Full Document 

Start of Preview
                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

                          Dated as of December 17, 2004

                                      among

                         GREEN VALLEY RANCH GAMING, LLC

                 The Lenders and Syndication Agent herein named

                                       and

                             BANK OF AMERICA, N.A.,

                             as Administrative Agent

                         BANC OF AMERICA SECURITIES LLC

                                       and

                             WELLS FARGO BANK, N.A.,

                    as Joint Lead Arrangers and Book Managers








                                TABLE OF CONTENTS
                                -----------------
                                                                                                               Page
                                                                                                               ----
                                                                                                           
ARTICLE 1 DEFINITIONS AND ACCOUNTING TERMS........................................................................1

         1.1      Defined Terms...................................................................................1

         1.2      Use of Defined Terms...........................................................................28

         1.3      Accounting Terms...............................................................................28

         1.4      Rounding.......................................................................................28

         1.5      Exhibits and Schedules.........................................................................28

         1.6      References to "Borrower and its Subsidiaries"..................................................28

         1.7      Miscellaneous Terms............................................................................28

         1.8      Letter of Credit Amounts.......................................................................29

ARTICLE 2 LOANS AND LETTERS OF CREDIT............................................................................29

         2.1      Loans General..................................................................................29

         2.2      Base Rate Loans................................................................................31

         2.3      LIBOR Loans....................................................................................31

         2.4      Letters of Credit..............................................................................31

         2.5      Voluntary Reduction of the Revolving Commitment................................................38

         2.6      Mandatory Reductions of the Term Commitment and Prepayments of the Term Commitment.............38

         2.7      Optional Increase to the Commitments...........................................................38

         2.8      Optional Extensions of Revolving Maturity Date.................................................40

         2.9      Administrative Agent's Right to Assume Funds Available for Advances............................41

         2.10     Swing Line.....................................................................................41

         2.11     Collateral and Guaranty........................................................................43

         2.12     Senior Indebtedness............................................................................43




                                      -i-





                                                                                                           
ARTICLE 3 PAYMENTS AND FEES......................................................................................44

         3.1      Principal and Interest.........................................................................44

         3.2      Arrangement Fee................................................................................45

         3.3      Upfront Fees...................................................................................45

         3.4      Commitment Fees................................................................................45

         3.5      Letter of Credit Fees..........................................................................45

         3.6      Agency Fee.....................................................................................46

         3.7      Increased Commitment Costs.....................................................................46

         3.8      Eurodollar Costs and Related Matters...........................................................47

         3.9      Late Payments..................................................................................50

         3.10     Computation of Interest and Fees...............................................................50

         3.11     Non Business Days..............................................................................50

         3.12     Manner and Treatment of Payments...............................................................50

         3.13     Funding Sources................................................................................52

         3.14     Failure to Charge Not Subsequent Waiver........................................................52

         3.15     Administrative Agent's Right to Assume Payments Will be Made...................................52

         3.16     Fee Determination Detail.......................................................................53

         3.17     Survivability..................................................................................53

ARTICLE 4 REPRESENTATIONS AND WARRANTIES.........................................................................53

         4.1      Existence and Qualification; Power; Compliance With Laws.......................................53

         4.2      Authority; Compliance With Other Agreements and Instruments and Government Regulations.........53

         4.3      No Governmental Approvals Required.............................................................54

         4.4      Subsidiaries...................................................................................54

         4.5      Financial Statements...........................................................................54

         4.6      No Other Liabilities; No Material Adverse Changes..............................................55




                                      -ii-





                                                                                                           
         4.7      Title to Property..............................................................................55

         4.8      Intangible Assets..............................................................................55

         4.9      Public Utility Holding Company Act.............................................................55

         4.10     Litigation.....................................................................................55

         4.11     Binding Obligations............................................................................55

         4.12     No Default.....................................................................................56

         4.13     ERISA..........................................................................................56

         4.14     Regulation U; Investment Company Act...........................................................56

         4.15     Disclosure.....................................................................................56

         4.16     Tax Liability..................................................................................56

         4.17     Projections....................................................................................57

         4.18     Hazardous Materials............................................................................57

         4.19     Gaming Laws....................................................................................57

         4.20     Security Interests.............................................................................57

         4.21     Tax Shelter Regulations........................................................................58

ARTICLE 5 AFFIRMATIVE COVENANTS..................................................................................58

         5.1      Payment of Taxes and Other Potential Liens.....................................................58

         5.2      Preservation of Existence......................................................................58

         5.3      Maintenance of Properties......................................................................58

         5.4      Maintenance of Insurance.......................................................................59

         5.5      Compliance With Laws...........................................................................59

         5.6      Inspection Rights..............................................................................59

         5.7      Keeping of Records and Books of Account........................................................59

         5.8      Compliance With Agreements.....................................................................59

         5.9      Use of Proceeds................................................................................59




                                     -iii-





                                                                                                           
         5.10     New Subsidiaries...............................................................................60

         5.11     Hazardous Materials Laws.......................................................................60

ARTICLE 6 NEGATIVE COVENANTS.....................................................................................61

         6.1      Payment of Subordinated Obligations............................................................61

         6.2      Disposition of Property........................................................................61

         6.3      Mergers........................................................................................61

         6.4      Hostile Acquisitions...........................................................................61

         6.5      Distributions..................................................................................61

         6.6      ERISA..........................................................................................62

         6.7      Change in Nature of Business...................................................................62

         6.8      Liens and Negative Pledges.....................................................................62

         6.9      Indebtedness and Guaranty Obligations..........................................................63

         6.10     Transactions with Affiliates...................................................................64

         6.11     Fixed Charge Coverage Ratio....................................................................64

         6.12     Leverage Ratio.................................................................................65

         6.13     Capital Expenditures...........................................................................65

         6.14     Investments....................................................................................65

         6.15     Acquisitions...................................................................................66

         6.16     Management Fees................................................................................66

         6.17     Amendments to Constituent Documents............................................................66

         6.18     Prepayments....................................................................................66

         6.19     Synthetic Leases...............................................................................67

         6.20     Phase III Project..............................................................................67

ARTICLE 7 CONSTRUCTION PERIOD COVENANTS..........................................................................68

         7.1      Construction of Project........................................................................68





                                      -iv-





                                                                                                           
         7.2      Construction Requirements......................................................................68

         7.3      Construction Services..........................................................................68

         7.4      Notice of Changes..............................................................................68

         7.5      Construction Progress Reports..................................................................68

         7.6      Construction Information.......................................................................68

         7.7      Construction, Permits, Licenses and Approvals..................................................68


         7.8      Purchase of Materials..........................................................................69

         7.9      Purchase of Offsite Materials..................................................................69

         7.10     Site Visits....................................................................................69

         7.11     Protection Against Lien Claims.................................................................69

         7.12     Completion Certificates........................................................................69

         7.13     Completion Survey..............................................................................69

ARTICLE 8 INFORMATION AND REPORTING REQUIREMENTS.................................................................70

         8.1      Financial and Business Information.............................................................70

         8.2      Compliance Certificates........................................................................73

ARTICLE 9 CONDITIONS.............................................................................................74

         9.1      Conditions to Closing..........................................................................74

         9.2      Any Advance....................................................................................75

         9.3      Any Letter of Credit...........................................................................76

ARTICLE 10 DEFAULT AND REMEDIES UPON EVENT OF DEFAULT............................................................77

         10.1     Events of Default..............................................................................77

         10.2     Remedies Upon Event of Default.................................................................80

ARTICLE 11 ADMINISTRATIVE AGENT..................................................................................83

         11.1     Appointment and Authorization of Administrative Agent..........................................83

         11.2     Delegation of Duties...........................................................................83




                                      -v-





                                                                                                           
         11.3     Liability of Administrative Agent..............................................................83

         11.4     Reliance by Administrative Agent...............................................................84

         11.5     Notice of Default..............................................................................84

         11.6     Credit Decision; Disclosure of Information by Administrative Agent.............................85

         11.7     Indemnification of Administrative Agent........................................................85

         11.8     Administrative Agent in its Individual Capacity................................................86

         11.9     Successor Administrative Agent.................................................................86

         11.10    Administrative Agent May File Proofs of Claim..................................................87

         11.11    Other Agents; Arrangers and Managers...........................................................87

         11.12    Proportionate Interest in any Collateral.......................................................87

         11.13    Foreclosure on Collateral......................................................................88

         11.14    Subordination, Non Disturbance and Attornment Agreements.......................................88

         11.15    No Obligations of Borrower.....................................................................88

ARTICLE 12 MISCELLANEOUS.........................................................................................89

         12.1     Cumulative Remedies; No Waiver.................................................................89

         12.2     Amendments; Consents...........................................................................89

         12.3     Attorney Costs, Expenses and Taxes.............................................................90

         12.4     Nature of Lenders' Obligations.................................................................91

         12.5     Survival of Representations and Warranties.....................................................92

         12.6     Notices........................................................................................92

         12.7     Execution of Loan Documents....................................................................93

         12.8     Binding Effect; Assignment.....................................................................93

         12.9     Right of Setoff................................................................................96

         12.10    Sharing of Setoffs.............................................................................96

         12.11    Indemnification by Borrower....................................................................97




                                      -vi-





                                                                                                           
         12.12    Nonliability of the Lenders....................................................................97

         12.13    No Third Parties Benefited.....................................................................98

         12.14    Confidentiality................................................................................98

         12.15    Further Assurances.............................................................................99

         12.16    Integration...................................................................................100

         12.17    Governing Law.................................................................................100

         12.18    Severability of Provisions....................................................................100

         12.19    Headings......................................................................................100

         12.20    Time of the Essence...........................................................................100

         12.21    Foreign Lenders and Participants..............................................................100

         12.22    Hazardous Material Indemnity..................................................................102

         12.23    Gaming Compliance.............................................................................103

         12.24    Termination of Make Well Agreement and Greenspun Pledge Agreement.............................103

         12.25    Payments Set Aside............................................................................104

         12.26    Waiver of Right to Trial by Jury..............................................................104

         12.27    Purported Oral Amendments.....................................................................104


Exhibits

A  -     Assignment Agreement
B  -     Compliance Certificate
C-1      Revolving Note
C-2      Term Note
D  -     Pricing Certificate
E  -     Request for Loan
F  -     Subordination, Non-Disturbance and Attornment Agreement
G  -     Lender Consent to Amendment and Restatement

Schedules
2.1      Pro Rata Shares of the Commitments
4.3      Governmental Approvals
4.7      Existing Liens, Negative Pledges and Rights of Others
4.8      Trademarks and Trade Names



                                     -vii-


4.10     Material Litigation
4.18     Hazardous Materials Matters
6.9      Existing Indebtedness
6.14     Investments
12.6     Notice Addresses



                                     -viii-


                   SECOND AMENDED AND RESTATED LOAN AGREEMENT

                          Dated as of December 17, 2004

     This SECOND  AMENDED AND  RESTATED  LOAN  AGREEMENT  is entered into by and
among  Green  Valley  Ranch  Gaming,  LLC, a Nevada  limited  liability  company
(together with its  successors and permitted  assigns,  the  "Borrower"),  Wells
Fargo Bank, N.A., as Syndication  Agent and Joint Lead Arranger and book manager
("Wells Fargo"),  the Lenders referred to herein, and Bank of America,  N.A., as
Administrative  Agent. While not a party hereto, Banc of America Securities LLC,
along with Wells Fargo,  has served as Joint Lead  Arranger and book manager for
the credit facilities described herein.  Borrower,  Administrative Agent and the
other Lenders, covenant and agree with reference to the following facts:

     A.  Borrower  and  Administrative  Agent have  previously  entered into the
Existing Loan Agreement described herein.

     B. Effective on the Closing Date,  Borrower,  Administrative  Agent and the
Lenders  desire to amend the  Existing  Loan  Agreement  as set forth  herein to
provide,  inter  alia (i) for an  increase  in the  amount of the Term  Loans to
$200,000,000,  (ii) a  $50,000,000  reduction of the Revolving  Commitment,  and
(iii) an  extension of the maturity  thereof and  revisions to the  covenants of
Borrower set forth therein.

     C. Each of the Term Loans outstanding under the Loan Agreement shall remain
outstanding  on the  Closing  Date and shall  continue  to be  evidenced  by the
Existing  Term  Notes,  provided  that each  Lender  providing  a portion of the
increase to the Term Loans shall be entitled to the  issuance of a new Term Note
to evidence such increased amount.

     NOW,  THEREFORE,  in  consideration  of the  foregoing  and  of the  mutual
covenants and agreements herein contained, the parties hereto covenant and agree
as follows:

                                    ARTICLE 1
                        DEFINITIONS AND ACCOUNTING TERMS
                        --------------------------------

     1.1 Defined Terms.  As used in this  Agreement,  the following  terms shall
have the meanings set forth below:

     "Acquisition" means any transaction, or any series of related transactions,
by which Borrower and/or any of its Subsidiaries directly or indirectly acquires
any  ongoing  business  or all or  substantially  all of the assets of any firm,
corporation  or  division  thereof  constituting  an ongoing  business,  whether
through a purchase of capital stock or assets, a merger or otherwise.

     "Administrative  Agent" means Bank of America,  when acting in its capacity
as the  Administrative  Agent under any of the Loan Documents,  or any successor
Administrative Agent.

     "Administrative Agent's Office" means the Administrative Agent's address as
set forth on the signature pages of this Agreement,



                                      -1-


or such other  address as the  Administrative  Agent  hereafter may designate by
written notice to Borrower and the Lenders.

     "Advance" means any advance made or to be made by any Lender to Borrower as
provided in Article 2, and includes each Base Rate Advance and LIBOR Advance.

     "Affiliate"  means,  as to any Person,  any other Person which  directly or
indirectly controls,  or is under common control with, or is controlled by, such
Person.  As used in this  definition,  "control"  (and  the  correlative  terms,
"controlled by" and "under common control with") shall mean possession, directly
or  indirectly,  of power to direct  or cause the  direction  of  management  or
policies  (whether  through  ownership of  securities  or  partnership  or other
ownership interests, by contract or otherwise); provided that, in any event, any
Person that owns,  directly or indirectly,  10% or more of the securities having
ordinary voting power for the election of directors or other governing body of a
corporation that has more than 100 record holders of such securities,  or 10% or
more of the  partnership or other  ownership  interests of any other Person that
has more than 100  record  holders  of such  interests,  will be deemed to be an
Affiliate of such corporation, partnership or other Person.

     "Agent-Related  Persons" means the Administrative  Agent, together with its
Affiliates  (including,  in the case of Bank of America in its  capacity  as the
Administrative Agent and the Joint Lead Arranger), and the officers,  directors,
employees, agents and attorneys-in-fact of such Persons and Affiliates.

     "Agreement"  means this Second Amended and Restated Loan Agreement,  either
as originally executed or as it may from time to time be supplemented, modified,
amended, restated or extended.

     "Applicable Margins" means, as of any date of determination:

          (a) as to the Term Loans, the following  percentages per annum,  based
          upon the Pricing Level on that date:

------------------------- ------------------------- --------------------------
     Pricing Level            Base Rate Margin            LIBOR Margin
------------------------- ------------------------- --------------------------
           I                       0.500%                    1.750%
------------------------- ------------------------- --------------------------
           II                      0.750%                    2.000%
------------------------- ------------------------- --------------------------
          III                      0.750%                    2.000%
------------------------- ------------------------- --------------------------

          (b) as to the Revolving  Loans,  the following  percentages per annum,
          based upon the Pricing Level on that date:



                                      -2-





                                                                               

------------------------- ----------------------- ----------------------------- ------------------------
     Pricing Level           Base Rate Margin     LIBOR Margin and Letter of        Commitment Fee
     -------------           ----------------     ---------------------------       --------------
                                                        Credit Fee Rate
                                                        ---------------
------------------------- ----------------------- ----------------------------- ------------------------
           I                      0.250%                     1.500%                     0.250%
------------------------- ----------------------- ----------------------------- ------------------------
           II                     0.375%                     1.625%                     0.375%
------------------------- ----------------------- ----------------------------- ------------------------
          III                     0.500%                     1.750%                     0.375%
------------------------- ----------------------- ----------------------------- ------------------------


     "Architect"  means (a) in respect of the Phase II Project,  the Friedmutter
Group,  and (b) in respect of the Phase III Contract,  the Friedmutter  Group or
any other  replacement  architect  which is selected by Borrower and approved by
the Administrative Agent (which approval shall not be unreasonably withheld).

     "Architect  Contracts"  means (a) in respect of the Phase II  Project,  the
Agreement for Architectural  Services,  dated as of October 1, 2003, between the
Architect and Borrower,  and (b) in respect of the Phase III Project,  any other
contract between the relevant  Architect and Borrower relating to the design and
construction  of the  Phase  III  Project  and the  preparation  of the  related
Construction Plans, together with all amendments thereto.

     "Assignment Agreement" means an Assignment and Assumption  substantially in
the form of Exhibit A.

     "Attorney Costs" means and includes all fees, expenses and disbursements of
any law firm or other external counsel and, without  duplication,  the allocated
cost of internal legal services and all expenses and  disbursements  of internal
counsel.

     "Bank of America" means Bank of America, N.A., its successors and assigns.

     "Base  Rate"  means for any day a  fluctuating  rate per annum equal to the
higher of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest
in  effect  for  such day as  publicly  announced  from  time to time by Bank of
America as its "prime  rate." The "prime  rate" is a rate set by Bank of America
based upon various factors including Bank of America's costs and desired return,
general economic conditions and other factors,  and is used as a reference point

End of Preview