AGREEMENT AND PLAN OF MERGER

Page

ARTICLE I
THE MERGER

SECTION 1.1

The Merger

1

SECTION 1.2

Effective Time

1

SECTION 1.3

Closing of the Merger

2

SECTION 1.4

Effects of the Merger

2

SECTION 1.5

Articles of Incorporation and Bylaws

2

SECTION 1.6

Directors

2

SECTION 1.7

Officers

2

ARTICLE II

CONVERSION OF SHARES; CONSIDERATION

SECTION 2.1

Conversion of Shares.

2

SECTION 2.2

Total Transaction Consideration; Adjustments.

3

SECTION 2.3

Merger Fund; Exchange of Certificates.

8

SECTION 2.4

Dissenters’ Rights

11

ARTICLE III

REPRESENTATIONS AND WARRANTIES

SECTION 3.1

Representations and Warranties of the Company

11

SECTION 3.2

Representations and Warranties of Parent and Merger Sub

18

ARTICLE IV

COVENANTS

SECTION 4.1

Conduct of Business

20

SECTION 4.2

Access to Information; Confidentiality.

22

SECTION 4.3

Consents and Governmental Approvals

23

SECTION 4.4

Company Bonds; Credit Agreement

24

SECTION 4.5

Employee Benefit Plans

25

SECTION 4.6

[INTENTIONALLY OMITTED]

27

SECTION 4.7

Financial Information

27

SECTION 4.8

[INTENTIONALLY OMITTED].

27

SECTION 4.9

Publicity

27

SECTION 4.10

Certain Understandings.

27

SECTION 4.11

Taxes

28

SECTION 4.12

Certain Notifications

28

SECTION 4.13

Indemnification of Directors and Officers.

28

SECTION 4.14

Debt Financing

29

SECTION 4.15

Further Assurances

29

SECTION 4.16

Selected Memorabilia

30

SECTION 4.17

Termination of Affiliate Agreements

30

SECTION 4.18

Other Transaction Documents

30

ARTICLE V

CONDITIONS PRECEDENT

SECTION 5.1

Conditions Precedent to Each Party’s Obligations

30

SECTION 5.2

Conditions Precedent to Parent’s and Merger Sub’s Obligations

31

SECTION 5.3

Conditions Precedent to the Company’s Obligations

31

ARTICLE VI

TERMINATION

SECTION 6.1

Termination

32

SECTION 6.2

Effect of Termination.

33

SECTION 6.3

Specific Performance

36

ARTICLE VII

SURVIVAL; INDEMNIFICATION

SECTION 7.1

Survival of Representations, Warranties and Covenants

36

SECTION 7.2

Obligation of Stockholders

36

SECTION 7.3

Obligation of Parent

37

SECTION 7.4

Minimum Losses

37

SECTION 7.5

Maximum Indemnification

37

SECTION 7.6

No Tax Attribute Indemnity

37

SECTION 7.7

Notice; Procedure for Third-Party Claims

37

SECTION 7.8

Survival of Indemnity

38

SECTION 7.9

No Consequential Damages

39

SECTION 7.10

No Double Recovery

39

ARTICLE VIII

DEFINITIONS

SECTION 8.1

Definitions

39

SECTION 8.2

Interpretation

42

ARTICLE IX

MISCELLANEOUS

SECTION 9.1

Notices

42

SECTION 9.2

Severability

44

SECTION 9.3

Counterparts

44

SECTION 9.4

Mutual Drafting

44

SECTION 9.5

Entire Agreement

44

SECTION 9.6

Governing Law; Jurisdiction

44

SECTION 9.7

Amendment; Waiver

44

SECTION 9.8

Assignment

44

SECTION 9.9

No Third-Party Beneficiaries

45

SECTION 9.10

Stockholders’ Representative.

45

SECTION 9.11

Arbitration

45

Exhibit A

Copy of PMR Purchase and Sale Agreement

Exhibit B

Form of Trademark Agreement

Exhibit C

Copy of Escrow Agreement

Exhibit D

Form of License Agreement

Exhibit E

Form of Morton Trademark Assignment

Exhibit F

Copy of Action by Written Consent

Defined Term

Initial Section Reference

Accountants

2.2(c)(ii)

Additional Consideration

2.2(a)(i)

Affected Employee

4.5(a)

Affiliate

8.1

Affiliate Agreements

4.17

Agreement

First Paragraph

Applicable First Call Date

8.1

Applicable Percentage

2.2(a)(ii)

Articles of Merger

1.2

Business Day

8.1

Cage Cash

2.2(a)(ix)

Class A Company Common Stock

2.1(a)(i)

Class B Company Common Stock

2.1(a)(i)

Closing

1.3

Closing Balance Sheet

2.2(c)

Closing Date

1.3

Closing Date Cage Cash

2.2(c)

Closing Date Working Capital

2.2(c)

Closing Schedule

2.2(c)

Company

First Paragraph

Company Bonds

8.1

Company Common Stock

2.1(a)(i)

Company Condition Failure

6.1(c)

Company Consents

3.1(e)

Company Disclosure Letter

8.1

Company Intellectual Property

3.1(q)

Company Junior Notes

8.1

Company SEC Report

3.1(f)

Company SEC Reports

3.1(f)

Company Second Lien Notes

8.1

Confidentiality Agreement

4.2(c)

Contract

8.1

Credit Agreement

8.1

Deposit

2.2(d)

Disputed Holdback Amount

2.2(c)(ii)

Dissenting Shares

2.4

Effective Time

1.2

Employee Benefit Plan

3.1(m)

Enterprise Price

2.2(a)(vii)

Environmental Laws

3.1(s)

ERISA

3.1(o)(ii)

ERISA Affiliate

3.1(o)(v)

Escrow Agent

2.2(d)

Escrow Agreement

2.2(d)

Escrow Costs

2.2(e)

Estimated Cage Cash

2.2(b)(i)

Estimated Working Capital

2.2(b)(i)

Exchange Act

3.1(f)

Expense Reimbursement

6.2(b)(iv)

Expiration Date

7.1

Final Adjustments

2.2(c)(iii)

Final Adjustment Consideration

2.2(c)(iv), 2.2(c)(iii)(2)

Final Adjustment Date

2.2(c)(iii)

Final Balance Sheet Adjustment

2.2(c)(iii)(2)

Final Determination Date

2.2(c)(ii)

Final Holdback Amount

2.2(c)(iii)

Financial Statements

3.1(f)

Financing

3.2(e)

Financing Commitments

3.2(e)

GAAP

3.1(f)

Gaming Approvals