Letter Amendment to Loan and Security Agreement between Resorts International Hotel, Inc. and Bank (March 29, 2006)
This letter amendment, dated March 29, 2006, is between Resorts International Hotel, Inc. and its bank. The bank agrees to modify certain financial covenants in the existing Loan and Security Agreement, specifically adjusting the net worth, interest coverage, and EBITDA requirements for the periods ending December 31, 2005, March 31, 2006, and June 30, 2006. The net worth requirements are now fixed dollar amounts. In exchange for these changes, Resorts International Hotel, Inc. must pay a $50,000 amendment fee. The amendment is effective upon execution and payment of the fee.
Exhibit 10.61
Peter L. Davis
Senior Vice President
Middle Market
March 29, 2006
Mark LeFever, CFO
Resorts International Hotel, Inc
1133 Boardwalk
Atlantic City, NJ 08401
Dear Mark,
I am pleased to inform you that the bank as consented to your request for covenant changes for sections 6.8(a), 6.8(b), 6.8(c) under The Third Amendment to the Loan and Security Agreement for the net worth, interest coverage and trailing 12 month EBITDA tests for the 12/31/05, 3/31/06, and 6/30/06 covenant test dates under the current Loan and Security Agreement.
Pursuant to your request we have agreed to amend and replace the existing financial covenants of the above reference section of the Agreement as follow:
| Section | Test | 12/31/05 | 3/31/06 | 6/30/06 | ||||
| 6.8(a) | Net Worth | $68,000,000 | $65,000,000 | $65,000,000 | ||||
| 6.8(b) | Interest Coverage | 1.25:1 | 1.10:1 | 1.10:1 | ||||
| 6.8(c) | EBITDA | $30,000,000 | $29,000,000 | $28,000,000 |
Please note that the net work requirements agreed to above are absolute and fixed dollar amounts and are not subject to automatic adjustments as originally contemplated in section 6.8(a) of the Third Amendment to the Credit Agreement.
In consideration for making the above changes to the Agreement, the bank is charging an Amendment Fee of $50,000. Please execute the attached copy of this letter and return to my attention with the Amendment Fee.
| Sincerely, | Agreed and Accepted | | ||||
 |  | |||||
| Peter L. Davis | Mark Lefever, CFO | |||||
One Commerce Square
2005 Market Street; 2nd Floor
Philadelphia, Pennsylvania 19103
215 ###-###-####
Fax: 215 ###-###-####
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