Participation Agreement (2003)Full Document 

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PARTICIPATION AGREEMENT

 

dated as of June 30, 2003

 

among

 

MANDALAY RESORT GROUP,
MANDALAY CORP.,
RAMPARTS, INC.,
NEW CASTLE CORP., AND
CIRCUS CIRCUS CASINOS, INC.,
as Lessees,

 

MANDALAY RESORT GROUP AND ITS
SUBSIDIARIES LISTED ON SCHEDULE I,
as Guarantors,

 

WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION,
 
not in its individual capacity, but solely as Lessor and Trustee,

 

THE PERSONS LISTED ON SCHEDULE III,
as Lenders,

 

and

 

WELLS FARGO BANK NEVADA, NATIONAL ASSOCIATION,
as Collateral Agent

 

 

BANC OF AMERICA LEASING & CAPITAL, LLC,
as Arranger

 

THE CIT GROUP/EQUIPMENT FINANCING, INC.
as Documentation Agent

 

BANK OF SCOTLAND,
as Syndication Agent

 



 

Table of Contents

 

SECTION

 

HEADING

 

 

ARTICLE I

DEFINITIONS

 

 

ARTICLE II

CONDITIONS; ACQUISITION AND LEASE; GENERAL PROVISIONS

 

 

Section 2.1.

Effectiveness of Agreement; Closing Conditions

Section 2.2.

Sale and Purchase

Section 2.3.

Participation in Purchase Price

Section 2.4.

Advance Date Procedures

Section 2.5.

Instructions to Trustee; Satisfaction of Conditions

Section 2.6.

Postponement of Advance Date

Section 2.7.

Obligations Several

Section 2.8.

Amortization Schedule

Section 2.9.

No More Than Two Advance Dates

Section 2A.1.

Additional Equipment Collateral

Section 2A.2.

Tranche B Rent Prepayment

Section 2A.3.

Tranche A Refinancing of Tranche B Loans

 

 

ARTICLE III

INTEREST; FEES; TERMINATION AND REDUCTION OF COMMITMENTS

 

 

Section 3.1.

[Reserved]

Section 3.2.

Interest on Loans

Section 3.3.

Payments and Prepayments of Loans and Other Amounts

Section 3.4.

Fees

Section 3.5.

Highest Lawful Rate

 

 

ARTICLE IV

CERTAIN INTENTIONS OF THE PARTIES

 

 

Section 4.1.

Nature of Transaction

Section 4.2.

Amounts Due Under Lease

Section 4.3.

Distribution

Section 4.4.

Adjustments

 

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES

 

 

Section 5.1.

Representations and Warranties of the Lease Obligors

Section 5.2.

Representations and Warranties of Each Lender

Section 5.3.

Representations and Warranties of Trustee

Section 5.4.

Representations and Warranties of Collateral Agent

 

 

ARTICLE VI

COVENANTS

 

 

Section 6.1.

Covenants of Lease Obligors

 



 

ARTICLE VII

COVENANTS OF CREDITORS

 

 

Section 7.1.

Covenants of Trustee

Section 7.2.

Covenants of Lenders

Section 7.3.

Trust Agreement

Section 7.4.

Loan Agreement

 

 

ARTICLE VIII

ASSIGNMENT BY LENDERS; PARTICIPATIONS

 

 

Section 8.1.

Assignments

Section 8.2.

Participations

Section 8.3.

Miscellaneous Provisions Regarding Assignments and Participations

 

 

ARTICLE IX

INDEMNIFICATION

 

 

Section 9.1.

General Indemnification

Section 9.2.

General Tax Indemnity

Section 9.3.

[Reserved.]

Section 9.4.

Claims Procedure

Section 9.5.

Gross Up

Section 9.6.

Increased Commitment Costs

Section 9.7.

Additional  Costs and Related Matters

Section 9.8.

Trustee Indemnification

 

 

ARTICLE X

MISCELLANEOUS

 

 

Section 10.1.

Survival of Agreements

Section 10.2.

No Broker, etc

Section 10.3.

Notices

Section 10.4.

Counterparts

Section 10.5.

Amendments

Section 10.6.

Headings, etc

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