Term Loan Agreement (2001)Full Document 

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TERM LOAN AGREEMENT

Dated as of August 22, 2001

among

MANDALAY RESORT GROUP

The Lenders, Co-Documentation Agents and Senior Managing Agents herein named

CITICORP USA, INC. and BANKERS TRUST COMPANY as Syndication Agents

and

BANK OF AMERICA, N.A.

as Administrative Agent

BANC OF AMERICA SECURITIES LLC and SALOMON SMITH BARNEY INC.

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   18
    1.3   Accounting Terms   18
    1.4   Rounding   18
    1.5   Exhibits and Schedules   19
    1.6   References to "Borrower and its Subsidiaries"   19
    1.7   Miscellaneous Terms   19
Article 2  LOANS   20
    2.1   Loans—General   20
    2.2   Base Rate Loans   20
    2.3   Eurodollar Rate Loans   21
    2.4   [Intentionally Omitted.]   21
    2.5   [Intentionally Omitted.]   21
    2.6   Voluntary Reduction of Commitment   21
    2.7   Optional Termination of Commitment   21
    2.8       21
    2.9   Extension of the Maturity Date   21
Article 3  PAYMENTS AND FEES   23
    3.1   Principal and Interest   23
    3.2   Arrangement Fee   24
    3.3   Upfront Fees   24
    3.4   [Intentionally Omitted.]   24
    3.5   [Intentionally Omitted.]   24
    3.6   Agency Fees   24
    3.7   Increased Commitment Costs   24
    3.8   Eurodollar Costs and Related Matters   24
    3.9   Default Rate   27
    3.10   Computation of Interest and Fees   27
    3.11   Non-Business Days   27
    3.12   Manner and Treatment of Payments   28
    3.13   Funding Sources   28
    3.14   Failure to Charge Not Subsequent Waiver   28
    3.15   Administrative Agent's Right to Assume Payments Will be Made by Borrower   29
    3.16   Fee Determination Detail   29
    3.17   Survivability   29
Article 4  REPRESENTATIONS AND WARRANTIES   30
    4.1   Existence and Qualification; Power; Compliance With Laws   30
    4.2   Authority; Compliance With Other Agreements and Instruments and Government Regulations   30
    4.3   No Governmental Approvals Required   30
    4.4   Subsidiaries   31
    4.5   Financial Statements   31
    4.6   No Other Liabilities; No Material Adverse Effect   31
    4.7   Title to Property   32
    4.8   Intangible Assets   32
    4.9   Public Utility Holding Company Act   32
    4.10   Litigation   32

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    4.11   Binding Obligations   32
    4.12   No Default   32
    4.13   ERISA   32
    4.14   Regulations T, U and X; Investment Company Act   33
    4.15   Disclosure   33
    4.16   Tax Liability   33
    4.17   Projections   33
    4.18   Hazardous Materials   33
    4.19   Developed Properties   33
    4.20   Gaming Laws   33
Article 5  AFFIRMATIVE COVENANTS (OTHER THAN INFORMATION AND REPORTING REQUIREMENTS)   34
    5.1   Payment of Taxes and Other Potential Liens   34
    5.2   Preservation of Existence   34
    5.3   Maintenance of Properties   34
    5.4   Maintenance of Insurance   34
    5.5   Compliance With Laws   34
    5.6   Inspection Rights   34
    5.7   Keeping of Records and Books of Account   35
    5.8   Compliance With Agreements   35
    5.9   Use of Proceeds   35
    5.10   New Significant Subsidiaries   35
    5.11   Hazardous Materials Laws   35
Article 6  NEGATIVE COVENANTS   36
    6.1   Payment of Subordinated Debt   36
    6.2   Disposition of Property   36
    6.3   Mergers   36
    6.4   Hostile Tender Offers   37
    6.5   Distributions   37
    6.6   ERISA   37
    6.7   Change in Nature of Business   37
    6.8   Liens, Negative Pledges, Sale Leasebacks and Rights of Others   37
    6.9   Indebtedness and Contingent Obligations   39
    6.10   Transactions with Affiliates   39
    6.11   Total Debt Ratio   40
    6.12   Interest Coverage Ratio   40
    6.13   Significant Subsidiaries   40
Article 7  INFORMATION AND REPORTING REQUIREMENTS   41
    7.1   Financial and Business Information   41
    7.2   Compliance Certificates   43
Article 8  CONDITIONS   44
    8.1   Initial Advances, Etc.   44
    8.2   [Intentionally Omitted.]   45
Article 9  EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT   46
    9.1   Events of Default   46
    9.2   Remedies Upon Event of Default   48
Article 10 THE ADMINISTRATIVE AGENT   50
    10.1   Appointment and Authorization   50
    10.2   Administrative Agent and Affiliates   50
    10.3   Proportionate Interest in any Collateral   50

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    10.4   Lenders' Credit Decisions   50
    10.5   Action by Administrative Agent   51
    10.6   Liability of Administrative Agent   51
    10.7   Indemnification   52
    10.8   Successor Administrative Agent   52
    10.9   No Obligations of Borrower   53
Article 11 MISCELLANEOUS   54
    11.1   Cumulative Remedies; No Waiver   54
    11.2   Amendments; Consents   54
    11.3   Costs, Expenses and Taxes   54
    11.4   Nature of Lenders' Obligations   55
    11.5   Survival of Representations and Warranties   55
    11.6   Notices   55
    11.7   Execution of Loan Documents   56
    11.8   Binding Effect; Assignment   56
    11.9   Right of Setoff   58
    11.10   Sharing of Setoffs   58
    11.11   Indemnity by Borrower   59
    11.12   Nonliability of the Lenders   60
    11.13   No Third Parties Benefited   61
    11.14   Confidentiality   61
    11.15   Removal of a Lender   61
    11.16   Further Assurances   62
    11.17   Integration   62
    11.18   Governing Law   62
 
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