Document:

EXHIBIT
10.50

GUARANTY
AGREEMENT

This GUARANTY AGREEMENT,
dated as of November 30, 2006 (this “Guaranty Agreement”), made by
EquityCo, L.L.C., a Nevada limited liability company (the “Guarantor”),
in favor of the Mezzanine Investors (as such term is defined in the Investor
Rights Agreement, defined below) (the “Mezzanine Investors”), and Post
Advisory Group, L.L.C., a Delaware limited liability company (its successors
and assigns and any other financial institution reasonably acceptable to the
Mezzanine Investors, the “Collateral Agent”), is entered into pursuant
to that certain Amended and Restated Investor Rights Agreement, dated as of
November 30, 2006  (as
amended, supplemented or otherwise modified from time to time, the “Investor
Rights Agreement”), by and among MezzCo, L.L.C., a Nevada limited liability
company (the “Company”), the Guarantor, and the Securityholders
identified therein.  Capitalized terms
used herein but not otherwise defined herein shall have the meaning ascribed
thereto in the Investor Rights  Agreement.

RECITALS

WHEREAS, the Guarantor
has agreed that it will be a guarantor of the Company’s obligations to the
Mezzanine Investors in connection with the Investor Rights Agreement; and

WHEREAS, the Company has received substantial benefit
from the issuance of  Warrants to the
Mezzanine Investors and the other transactions contemplated by the
Restructuring Documents, and Guarantor, as the managing member of the Company,
is expected to benefit, directly or indirectly, from such transactions;

NOW, THEREFORE, in
consideration of the foregoing premises and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantor
hereby agrees with the Mezzanine Investors and the Collateral Agent, as
follows:

1.     Guaranty.  The Guarantor hereby irrevocably, absolutely
and unconditionally guarantees to the Mezzanine Investors and each of their
respective successors, transferees and assigns, as obligor and not merely as a
surety, the prompt and complete payment (as and when due and payable) of (i)
the obligation of the Company to pay the Redemption Price (as defined in the
Warrants) prior to the expiration of the Put Demand Period (as defined in the
Warrants) and (ii)  any indebtedness arising
under the Put Note (as defined in the Warrant) issued or deemed to be issued
pursuant to the Warrants (or any other instruments at any time evidencing any
of the obligations referenced in clause (i) or (ii), the “Guaranteed
Obligations”) and agrees to pay on demand any and all reasonable costs and
expenses (including reasonable fees and out-of-pocket expenses of one outside
legal counsel and one outside Nevada counsel for the Collateral Agent and the Mezzanine
Investors) which may be paid or incurred by the Collateral Agent or any
Mezzanine Investor in collecting, enforcing or exercising any available
remedies in respect of any or all of the Guaranteed Obligations and the
obligations of the Guarantor under this Guaranty Agreement (its “Guaranty”).  The Guarantor acknowledges and agrees that
this Guaranty constitutes a guaranty of payment when due and not of collection,
and waives any right to require any resort of the Mezzanine Investors or the
Collateral Agent to any of the Collateral (as such term is defined in that
certain Pledge Agreement, between the Collateral Agent and the

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Guarantor, dated as of
the date hereof), (the “Collateral”) held as security of the Guaranteed
Obligations.

2.     Obligations Unconditional.  The Guarantor hereby guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of
the Warrants, regardless of: (a) any law now or hereafter in effect in any
jurisdiction affecting any such terms or the rights of any Mezzanine Investor
with respect thereto, or the obligations and liabilities or validity or
enforceability of any of the Guaranteed Obligations and the Warrants, or any
agreement or instrument relating thereto; (b) any change in the time, manner,
or place of payment of, or in any other term in respect of, all or any of the
Guaranteed Obligations or any other documents or instruments executed in
connection with or related to the Guaranteed Obligations; (c) any exchange or
release of, or non-perfection of any lien on or in, any Collateral, if any, or
any release or amendment or waiver of or consent to any departure from any
other guaranty, for all or any of the Guaranteed Obligations; or (d) any other
circumstances which might otherwise constitute a defense (including a surety
defense) available to, or a discharge of, the Company in respect of the
Guaranteed Obligations or of the Guarantor in respect of its Guaranty other
than the prompt or complete payment in full of such obligations.

This Guaranty Agreement
is a continuing guaranty and shall remain in full force and effect until: (a)
the prompt and complete payment in full of all the Guaranteed Obligations, and
(b) the payment of the other expenses required to be paid by the Guarantor
pursuant to Section 1 of this Guaranty Agreement.  This Guaranty Agreement shall continue to be
effective or shall be reinstated, as the case may be, if at any time any
payment, or any part thereof, of any of the Guaranteed Obligations is rescinded
or is required by any Governmental Authority to be returned by the Collateral
Agent or any Mezzanine Investor upon or in connection with the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Company, the
Guarantor or otherwise, all as though such payment had not been made.

The obligations and
liabilities of the Guarantor under this Guaranty Agreement shall not be
conditioned or contingent upon the pursuit by the Collateral Agent, any
Mezzanine Investor or any other Person at any time of any right or remedy
against the Company or any other Person which may be or become liable in
respect of all or any part of the Guaranteed Obligations or against any
Collateral, if any, or other security or guarantee therefore, if any, or right
of set off which respect thereto.

The Guarantor hereby
consents and agrees that, without the necessity of any reservation of rights
against the Guarantor and without notice to or further assent by the Guarantor,
any demand for payment of any of the Guaranteed Obligations made by the
Collateral Agent or any Mezzanine Investor may be rescinded by the Collateral
Agent or such Mezzanine Investor and any of the Guaranteed Obligations
continued after such rescission.

3.     Waivers.  The Guarantor hereby waives, to the fullest
extent permitted by law, (a) promptness and diligence; (b) notice of or proof
of reliance by the Collateral Agent or any Mezzanine Investor upon the Guaranty
or acceptance of the Guaranty; (c) notice of the incurrence of any Guaranteed
Obligations by the Company or the renewal, extension or accrual of any
Guaranteed Obligations; (d) notice of any actions taken by the Company or any
other party under the Warrants, or any other agreement or instrument relating
to the Guaranteed

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Obligations; (e) except
to the extent required by Applicable Law, presentment, all other notices,
demands and protests, and all other formalities of every kind in connection
with the enforcement of the Guaranteed Obligations or of the obligations of the
Guarantor hereunder, the omission of or delay in which, but for the provisions
of this Section 3 might constitute grounds for relieving the Guarantor
of its obligations hereunder; (f) the failure to perfect any security interest
in any of the Collateral; and (g) any requirement that the Collateral Agent of
any Mezzanine Investor protect, secure, perfect or insure any lien on any
Collateral subject thereto or exhaust any right or take any action against the
Company or any other Person or any Collateral, if any.  The Mezzanine Investors and the Collateral
Agent may, at their election, foreclose on any Collateral by one or more
non-judicial or judicial sales, accept an assignment of any Collateral in lieu
of foreclosure, compromise or adjust any part of the Guaranteed Obligations,
make any other accommodations with the Company or Guarantor or exercise any
other right or remedy available to them against the Company or Guarantor,
without affecting or impairing in any way any liability of Guarantor hereunder,
except to the extent the Guaranteed Obligations have been paid in full.  Pursuant to Applicable Law, Guarantor waives
any defense arising out of any foregoing election even though such election
operates, pursuant to Applicable Law, to impair or to extinguish any right of
reimbursement or subrogation or other right or remedy of Guarantor against the
Company or any Collateral.

4.     Subrogation.  The Guarantor will not exercise any rights
which it may acquire by way of subrogation under this Guaranty Agreement,
whether acquired by any payment made hereunder, by any set-off or application
of funds of the Guarantor by the Collateral Agent, by any Mezzanine Investor or
otherwise, until (a) the prompt and complete payment in full of the Guaranteed
Obligations and (b) the payment of all other reasonable costs and expenses
required to be paid by the Guarantor pursuant to Section 1 hereof.  If any amount shall be paid to the Guarantor
on account of such subrogation rights at any time when all of the Guaranteed
Obligations and all such other expenses shall not have been paid in full, such
amount shall be held in trust by Collateral Agent for the benefit of the Mezzanine
Investors, shall be segregated from the other funds of the Guarantor and shall
forthwith upon receipt by Guarantor, be paid over to the Collateral Agent for
the benefit of the Mezzanine Investors in exact form received by Guarantor (and
duly endorsed by Guarantor to the Collateral Agent for the benefit of the
Mezzanine Investors, if required) to be credited and applied by the Collateral
Agent against the Guaranteed Obligations in accordance with the Warrants,
whether matured or unmatured, and all such other expenses in accordance with
the terms of this Guaranty Agreement.

5.     Limitation of Liability.  The maximum amount of liability that can be
incurred by the Guarantor hereunder shall be limited to an aggregate amount
equal to the largest amount that would not render its obligations hereunder
voidable under fraudulent conveyance or fraudulent transfer laws of the Untied
States Bankruptcy Code or any comparable provision of any applicable state law.

6.     No Waiver; Cumulative Remedies.  No failure or delay on the part of the
Collateral Agent or any Mezzanine Investor, in exercising any right, power or
remedy hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right, power or remedy preclude any other or
further exercise thereof or the exercise of any other right, power or remedy
hereunder.  The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

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7.     Amendments, Waivers and Consents.  Any provision in this Guaranty Agreement, the
Warrants, or the other Restructuring Documents to the contrary notwithstanding,
changes in or additions to this Guaranty Agreement may be made, and compliance
with any covenant or provision herein set forth may be omitted or waived only
in accordance with Section 9 of the Investor Rights Agreement.  Any waiver or consent may be given subject to
satisfaction of conditions stated therein and any waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

8.     Addresses for Notices, Etc.  All notices, requests, demands and other
communications provided for hereunder shall be in writing and mailed (by first
class registered or certified mail, postage prepaid), sent by express or
overnight mail or courier service or electronic facsimile transmission with a
copy by mail, or delivered to the applicable party at the addresses indicated
below:

If to the Guarantor:

EquityCo, L.L.C.

c/o OpBiz, L.L.C.

3667 Las Vegas Boulevard South

Las Vegas, Nevada 
89109

Attention: 
Joshua Revitz c/o Debbie Faint

Telecopier No.: (702)
785-5080

With a copy to:

Greenberg Traurig LLP

200 Park Avenue

New York, New York 10166

Attn: Joseph Kishel, Esq.

Telecopier No.:
(212) 801-6400

If to the
Collateral Agent:

Post Advisory Group,
L.L.C.

11755 Wilshire Boulevard
Suite 1400

Los Angeles, CA 90025 

Attention: Carl Goldsmith

Telephone: (310) 996-9600

Telecopier: (310)
996-9669

With a copy to:

Proskauer Rose LLP

One International Place

Boston, MA 02110

Attention: Stephen A.
Boyko, Esq.

Telecopier: (617)
526-9899

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If to any other
Mezzanine Investor:

at such Mezzanine
Investor’s address for notice as set forth in the transfer records of the
Company, or, as to each of the foregoing, at such other address as shall be
designated by such Person in a written notice to the other party complying as
to delivery with the terms of this Section. 
All such notices, requests, demands and other communications shall, when
mailed or sent, respectively, be effective (i) three days after being deposited
in the mails or (ii) one Business Day after being deposited with the express
overnight mail or courier service or sent by electronic facsimile transmission
(with receipt confirmed), respectively, addressed as aforesaid.

9.             Binding Effect; Assignment.  This Guaranty Agreement shall be binding upon
and inure to the benefit of the Mezzanine Investors and their respective
successors, endorsees, transferees and assigns. 
Except as expressly set forth herein, nothing in this Guaranty Agreement
shall confer any claim, right, interest or remedy on any third party or inure
to the benefit of any third party.

10.           Severability.  The invalidity or unenforceability of any
provision hereof shall in no way affect the validity or enforceability of any
other provision.

11.           Governing Law.  This Guaranty Agreement shall be governed by,
and construed in accordance with, the internal laws of the State of New York.

12.           Headings.  Article, Section and subsection headings in
this Guaranty Agreement are included herein for convenience of reference only
and shall not constitute a part of this Guaranty Agreement for any other
purpose.

13.           Counterparts.  This Guaranty Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one
and the same instrument, and each of the parties hereto may execute this
Guaranty Agreement by signing any such counterpart.

14.           Number and Gender.  Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

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IN
WITNESS WHEREOF, the parties hereto have executed this
Guaranty Agreement as of the date first above written.

	
  

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  
	
   

  	
  EQUITYCO,
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

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  COLLATERAL AGENT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  POST
  ADVISORY GROUP, L.L.C., as Collateral

  
	
   

  	
  Agent

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
  Name:

  	
  Lawrence A. Post

  
	
   

  	
  Title:  

  	
  Chief Investment
  Officer

  
					

 

 7EXHIBIT 10.51

PLEDGE AGREEMENT

This Pledge Agreement (this “Agreement”) dated
as of November  30, 2006 by and between Post
Advisory Group, L.L.C., a Delaware limited liability company (its successors
and assigns and any other financial institution reasonably acceptable to the
Mezzanine Investors, the “Collateral Agent”) for the benefit of the
Mezzanine Investors (as defined in the Investor Rights Agreement, defined
below) (the “Mezzanine Investors”) and EquityCo, L.L.C., a Nevada
limited liability company, having an office at 3667 Las Vegas Boulevard South,
Las Vegas, NV 89109 (“Pledgor”).

BACKGROUND TO THE AGREEMENT

Pledgor, MezzCo, L.L.C., a Nevada limited liability
company and subsidiary of the Pledgor (the “Company”) and the
Securityholders named therein have entered into or are entering into that
certain  Amended and Restated Investor Rights
Agreement dated as of November 30, 2006 (as amended, modified, restated or
supplemented from time to time, the “Investor Rights Agreement”) which
agreement sets forth certain rights and obligations with respect to the
Warrants (as defined in the Investor Rights Agreement) (the “Warrants”).

In order to induce the Mezzanine Investors to
consummate the transactions contemplated by the Restructuring Documents (as
such term is defined in that certain Restructuring Agreement (the “Restructuring
Agreement”), dated as of the date hereof, by and among Pledgor, the Company
and the Securityholders described therein) (the “Restructuring Documents”),
Pledgor has agreed to pledge and grant a security interest to Collateral Agent
for the ratable benefit of the Mezzanine Investors in the Collateral (as
hereinafter defined).

NOW, THEREFORE, in consideration of the premises and
for other good and valuable consideration the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:

1.             Definitions.

All capitalized terms used herein which are not
defined shall have the meanings given to them in the Investor Rights Agreement.

2.             Pledge and Grant
of Security Interest.

To secure the full and punctual payment and
performance of the Put Right (as defined in the Warrants), including any
obligation under the Put Notes (as defined in the Warrants) and the termination
or satisfaction of the Put Right (the “Warrant Obligations”), Pledgor
hereby pledges and grants at first priority security interest to Collateral
Agent for the ratable benefit of the Mezzanine Investors in all of its right,
title and interest in and to all of the following (the “Collateral”):

(a)           the membership
interests of the Company set forth on Schedule A annexed hereto and
expressly made a part hereof (the “Pledged Interests”), (including the
certificate or other instrument representing the Pledged Interests), together
with all dividends, cash,

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instruments and other property or proceeds
from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of the Pledged Interests; and

(b)           all additional membership interests of any issuer of the
Pledged Interests (the “Issuer”) from time to time acquired by the
Pledgor in any manner, including, without limitation, dividends or a
distribution in connection with any increase or reduction of capital,
reclassification, merger, consolidation, sale of assets, combination of
membership interests, splits, spin-offs or split-offs (which additional
membership interests shall be deemed to be part of the Collateral, whether or
not represented by a certificated security or other instrument), and the
certificates or other instruments representing such additional membership
interests, if any, and all dividends, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such membership interests; and

(c)           all options and other Equity Interests of the Issuer,
whether as an addition to, in substitution of or in exchange for the Pledged
Interests.

Notwithstanding the foregoing, the pledge and grant of
the security interest herein above shall become effective immediately upon the
satisfaction of the condition set forth in Section 23(d)(i) hereof.

3.             Delivery of
Collateral; Acknowledgement by Issuer; Distributions.

(a)           Delivery of Collateral. 
The Pledgor shall cause each certificate evidencing the Pledged
Interests to be delivered to the Collateral Agent’s Custodian (defined below)
in the State of Nevada as directed in writing by the Collateral Agent,
accompanied by duly executed instruments of transfer or assignment in blank,
all in form and substance reasonably satisfactory to the Collateral Agent.  Pledgor hereby authorizes the Issuer upon
written demand by Collateral Agent to deliver any certificates or other
distributions of Equity Interests issued by the Issuer to Pledgor evidencing or
constituting Collateral directly to Collateral Agent, in each case to be held
and applied by Collateral Agent or its Custodian in accordance with the terms
hereof and applicable Gaming Laws. 
Collateral Agent agrees to hold (or cause its Custodian to hold) all
certificates evidencing the Collateral within the State of Nevada at all times
during the team of this Agreement.  Upon
the occurrence and during the continuance of any Event of Default (as defined
in Section 7 hereof), subject to the Gaming Laws and the requirements of
the Gaming Authorities, Collateral Agent shall have the right, at any time in
its discretion and without prior notice to the Pledgor, to register in the name
of Collateral Agent or any of its nominees any or all of the Pledged Interests.
 In addition, Collateral Agent shall have
the right at any time to require the Pledged Interests to be certificated (if
not already certificated or evidenced by an existing instrument), or to
exchange existing certificates or instruments representing or evidencing
Pledged Interests (if any) for certificates or instruments of smaller or larger
denominations.  As used herein, “Custodian”
shall mean, subject to the requirements of applicable Gaming Laws, any Person
appointed by the Collateral Agent, subject to approval by the Mezzanine
Investors, to be the custodian in the State of Nevada of any certificates
representing the Pledged Interests.

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(b)           Acknowledgement and Covenants by Issuer.  Issuer hereby acknowledges and agrees that
(i) the Pledged Interests have been pledged to Collateral Agent for the ratable
benefit of the Mezzanine Investors in connection with the Restructuring
Documents and the transactions contemplated thereunder and (ii) it will notify
the Collateral Agent promptly in writing of the occurrence of any Event of
Default with respect to the Pledged Interests issued by Issuer.

(c)           Distributions. 
Subject to Section 3(a) and Section 6 hereof, the Pledgor shall be
permitted to (i) receive, retain and utilize distributions on the Pledged
Interests made by the Issuer for any purpose not prohibited by the Investor
Rights  Agreement.

4.             Representations
and Warranties of Pledgor.

Pledgor represents and warrants to Collateral Agent on
the Effective Date (as hereinafter defined) that:

(a)           Pledgor has the necessary limited liability company power
and authority to enter into this Agreement, to pledge the Collateral for the
purposes described herein and to carry out the transactions contemplated by
this Agreement.

(b)           The execution, delivery and performance by Pledgor of this
Agreement and the pledge of the Collateral hereunder have been (i) duly and
properly authorized by all necessary limited liability company action and (ii)
do not and will not result in any violation of any material agreement,
indenture, instrument, license, judgment, decree, order, law, statute,
ordinance or other governmental rule or regulation applicable to Pledgor.

(c)           This Agreement constitutes the legal, valid and binding
obligation of Pledgor and is enforceable against Pledgor in accordance with its
terms.

(d)           Pledgor is the direct and beneficial owner of all of the
Pledged Interests.

(e)           All of the Pledged Interests have been validly issued or
pledged to Pledgor and otherwise created.

(f)            This Agreement creates and grants a valid first priority
Lien on and a security interest in the Collateral and the proceeds thereof,
subject to no prior Lien, other than (i) Liens created under this Agreement and
(ii) inchoate tax liens on Equity Interests arising by operation of state law
(collectively, “Permitted Liens”).

(g)           Except for the restrictions on transfers required pursuant
to the Gaming Laws and restrictions expressly set forth in the Investor Rights  Agreement, there are no restrictions on
the transfer of the Pledged Interests contained in the articles of organization
or operating agreement of the Issuer pursuant to this Agreement which have not
otherwise been enforceably and legally waived by the necessary parties.

(h)           None of the Pledged Interests has been issued or
transferred by Pledgor in violation of the Gaming Laws or any securities laws
of any jurisdiction to which such issuance or transfer may be subject.

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(i)            There are no pending or, to Pledgor’s knowledge,
threatened actions or proceedings before any court, judicial body, administrative
agency or arbitrator which could reasonably be expected to materially adversely
affect the aggregate value of the Collateral.

(j)            Except for the required notices to, filings with and
consents, authorizations and approvals from the Commission pursuant to the
Gaming Laws and other consents, notices and filings specified in Schedule C
attached hereto, no consent, approval or authorization of any Person and no
consent, authorization, approval or other action by, and no notice to or filing
with, any Governmental Authority is required by the Pledgor either (i) to
perfect the security interest of the Collateral Agent in the Collateral
pursuant to this Agreement (except for the filing of a Uniform Commercial Code
financing statement with the Secretary of State of the State of Nevada to
perfect the Collateral Agent’s security interest in the Collateral) or for the
execution, delivery or performance of the Pledgor of this Agreement or (ii) for
the exercise by the Collateral Agent of the voting or other rights or the
remedies in respect of the Collateral provided for pursuant to this Agreement,
except as may be required under any applicable securities laws relating to the
offer and sale of securities generally in connection with the sale or other
disposition of the Collateral.

(k)           The Pledged Interests constitute one hundred percent
(100%) of the issued and outstanding membership interests of the Issuer, as set
forth on Schedule A annexed hereto.

(l)            Except as set forth on Schedule B, as of the date
hereof, there are no existing options or warrants (other than the Warrants
described in the Investor Rights Agreement) or other Equity Interests
evidencing any Pledged Interests and no indebtedness or securities convertible
into any Pledged Interests.

(m)          The Pledgor will, at all times, cause the Issuer to provide
in its operating agreement or other applicable organizational document that all
Pledged Interests of the Issuer will be “securities” under Article 8 of the
Uniform Commercial Code of the State of Nevada.

(n)           None of the Pledged Interests will constitute “uncertificated
securities” as defined in Article 8 of the Uniform Commercial Code of the State
of New York (the “New York UCC”).

The representations and warranties set forth in this
Section 4 shall survive the execution and delivery of this Agreement.

5.             Covenants.

Until such time as all of the Warrant Obligations have
been paid and performed in full (including the termination or satisfaction of
the Put Right), Pledgor shall:

(a)           Not sell, assign, transfer, convey, hypothecate or
otherwise dispose of any part of the Collateral or any of its rights or
interest in or to the Collateral, except any issuances permitted by Sections
5(e) hereof; nor create, incur or permit to exist any Lien whatsoever with
respect to any of the Collateral or the proceeds thereof other than Permitted
Liens.

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(b)           At Pledgor’s sole cost and expense, defend Collateral
Agent’s right, title and security interest in and to the Collateral against the
claims of any Person and keep the Collateral free from all Liens, except for
Permitted Liens.

(c)           At any time, and from time to time, upon the written
request of Collateral Agent, execute and deliver such further documents and do
such further acts and things as Collateral Agent may reasonably request in
order to effect the purposes of this Agreement including, but without
limitation, and subject to all applicable laws, the Gaming Laws and the
requirements of the Nevada Gaming Authorities, delivering to Collateral Agent
upon the occurrence and during the continuance of any Event of Default, subject
to the application of the irrevocable proxies in respect of the Collateral in
form satisfactory to Collateral Agent. 
Subject to the requirements of the Gaming Authorities and applicable
laws, this Agreement hereby constitutes Pledgor’s proxy to Collateral Agent or
its nominee to vote all membership interests (at the direction and on behalf of
the Majority Holders) arising from ownership of the Collateral then registered
in Pledgor’s name upon the occurrence and during the continuance of any Event
of Default.

(d)           Within two (2) Business Days of receipt thereof by
Pledgor, deliver to Collateral Agent all notices and statements which contain
material information pertaining to the security interest of the Collateral
Agent in the Collateral or its rights and remedies hereunder.

(e)           Without the prior written consent of the Majority Holders,
not consent to, approve or permit the issuance by the Issuer of (i) any
additional membership interests or other Equity Interests of the Issuer; (ii)
any securities convertible either voluntarily by the holder thereof or
automatically upon the occurrence or nonoccurrence of any event or condition
into, or any securities exchangeable for, any such membership interests; or
(iii) any warrants, options, contracts or other commitments entitling any
person to purchase or otherwise acquire any such membership interests, except,
in each case, for any issuances to Pledgor of any of the foregoing Equity
Interests made in exchange for capital contributions from Pledgor to the Issuer
pursuant to Section 7.1 of the Investor Rights Agreement.

6.             Voting Rights
and Dividends.

In addition to Collateral Agent’s rights and remedies
set forth in Section 8 hereof, upon the occurrence and during the continuance
of any Event of Default, the Collateral Agent shall be entitled, subject to the
Gaming Laws and the requirements of the Nevada Gaming Authorities and only
until such Event of Default is cured or waived, (a) to vote the Collateral, (b)
to give consents, waivers and ratifications in respect of the Collateral
(Pledgor hereby irrevocably constituting and appointing Collateral Agent, with
full power of substitution, the proxy and attorney-in-fact of Pledgor for such
purposes) and (c) to collect and receive and apply to the outstanding  cash dividends and other distributions constituting
Collateral and apply them to the Warrant Obligations in accordance with the
Investor Rights  Agreement.  Pledgor shall not be permitted to exercise or
refrain from exercising any voting rights or other powers in respect of the
Collateral if, in the reasonable judgment of Collateral Agent acting in good
faith, such action would have a material adverse effect on the aggregate value
of the Collateral.  Upon the occurrence
and during the continuation of an Event of Default, subject to the Gaming Laws
and the requirements of the Nevada Gaming Authorities, all dividends and all
other distributions 

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constituting any of the
Collateral, whenever paid or made, shall be delivered to Collateral Agent to
hold as Collateral and shall, if received by the Pledgor, be received in trust
for the benefit of Collateral Agent, be segregated from the other property or
funds of the Pledgor, and be forthwith delivered to Collateral Agent as
Collateral in the same form as so received (with any necessary endorsement).

7.             Events of
Default.

The term “Event of Default” wherever used
herein shall include (i) any breach of any term, representation, warranty or
covenant of this Agreement and (ii) any failure to perform or satisfy the
Warrant Obligations (until such time as each such Event of Default is cured or
waived).  Following the occurrence and
during the continuance of an Event of Default, Pledgor shall use commercially
reasonable efforts in cooperating with, and not in any manner oppose any
actions taken by or on behalf of, the Collateral Agent in connection with the
enforcement of its rights and remedies hereunder conducted in a manner that
does not violate applicable laws (including Gaming Laws), the efforts of
Collateral Agent in obtaining all approvals from the Gaming Authorities or any
other Governmental Authority that are required by law for or in connection with
any action or transaction, which may be taken by the Collateral Agent under
this Agreement or by Article 9 of the New York UCC and, at Collateral Agent’s
request after and during the continuance of an Event of Default, to prepare,
sign and file with the Nevada Gaming Authorities the transferor’s portion of
any application or applications for consent to the transfer of control thereof
necessary or appropriate under applicable Gaming Laws for approval of any sale
or transfer of the Pledged Interests pursuant to the exercise by the Collateral
Agent on behalf of the Mezzanine Investors of any  remedies hereunder and under the
Restructuring Documents and the enforcement by the Collateral Agent on behalf
of the Mezzanine Investors of any other rights or remedies hereunder.

8.             Remedies.

Upon the occurrence and during the continuance of an
Event of Default, the Collateral Agent, on behalf of the Mezzanine Investors
and subject to Gaming Laws and the requirements of the
Nevada Gaming Authorities applicable to the exercise by the Collateral
Agent of its rights and remedies hereunder, shall, at the request of the
Majority Holders:

(a)           Demand, collect, receipt for, settle, compromise, adjust,
sue for, foreclose or realize upon the Collateral (or any part thereof);

(b)           Transfer any or all of the Collateral into its name for
the benefit of the Mezzanine Investors, or into the name of its nominee or
nominees;

(c)           Exercise all rights
with respect to the Collateral including, without limitation, all rights of
conversion, exchange, subscription or any other rights, privileges or options
pertaining to any membership interests constituting the Collateral as if it
were the absolute owner thereof, including, but without limitation, the right
to exchange, at its discretion, any or all of the Collateral upon the merger,
consolidation, reorganization, recapitalization or other readjustment of the
Issuer thereof, or upon the exercise by the Issuer of any right, privilege or
option pertaining to any of the Collateral, and, in connection therewith, to
deposit and deliver

 6
 

any and all of the Collateral with any
committee, depository, transfer agent, registrar or other designated agent upon
such terms and conditions as it may determine, all without liability except to
account for property actually received by it; and

(d)           Subject to the requirements of applicable laws, the Gaming
Laws and the requirements of the Nevada Gaming Authorities, sell, assign and
deliver to any Person, the whole or, from time to time, any part of the
Collateral at the time held by Collateral Agent, at any private or public sale
or auction, with or without demand, advertisement or notice of the time or
place of sale or adjournment thereof or otherwise (all of which are hereby
waived, except such notice as is required by applicable laws and cannot be
waived), for cash or credit or for other property for immediate or future
delivery, and for such price or prices and on such terms as are reasonably
acceptable to the Majority Holders, in each case, in accordance with applicable
laws.

To the fullest extent permitted by Applicable Law, the
Gaming Laws and the requirements of the Nevada Gaming Authorities, Pledgor
hereby waives and releases any and all right or equity of redemption, whether
before or after sale hereunder.  At any
such sale, unless expressly prohibited by applicable laws (including the Gaming
Laws and the requirements of the Nevada Gaming Authorities), and subject to
Sections 9 and 10 hereof, Collateral Agent may bid for and purchase the whole
or any part of the Collateral so sold free from any such right or equity of
redemption.  All moneys received by
Collateral Agent hereunder whether upon sale of the Collateral or any part
thereof or otherwise shall be held by Collateral Agent and applied by it as
provided in Section 11 hereof.  No
failure or delay on the part of Collateral Agent in exercising any rights
hereunder shall operate as a waiver of any such rights nor shall any single or
partial exercise of any such rights preclude any other or future exercise
thereof or the exercise of any other rights hereunder.  Subject to the Gaming Laws and the requirements
of the Nevada Gaming Commission, Collateral Agent shall have no duty as to the
collection or protection of the Collateral or any income thereon nor any duty
as to preservation of any rights pertaining thereto, except to apply the funds
in accordance with the requirements of Section 11 hereof and comply with the
applicable provisions of applicable laws. 
Collateral Agent may exercise its rights with respect to property held
hereunder without resort to other security for or sources of reimbursement for the
Warrant Obligations.  In addition to the
foregoing, Collateral Agent shall have all of the rights, remedies and
privileges of a secured party under applicable laws regardless of the
jurisdiction in which enforcement hereof is sought.

9.             Registration Rights; Public Sale.  If upon the occurrence and during the
continuation of an Event of Default the Majority Holders shall instruct the
Collateral Agent to exercise their right to sell any or all of the Pledged
Interests pursuant to this Agreement, and if in the opinion of the Collateral
Agent it is necessary or advisable to have the Pledged Interests, or that
portion thereof to be sold, and registered under the provisions of the
Securities Act of 1933, as amended (the “Securities Act”), subject to
applicable Gaming Laws and the express requirements of the Nevada Gaming
Authorities, the Pledgor will cause the Issuer upon receipt of a written
request of the Collateral Agent to (i) execute and deliver, and cause the
managers, directors, officers and members, as applicable, of the Issuer to
execute and deliver, all such instruments and documents, and do or cause to be
done all such other acts as may be, in the reasonable opinion of the Collateral
Agent, necessary or advisable to register the Pledged Interests, or that
portion thereof to be sold, under the provisions of the Securities Act, (ii)
use its commercially reasonable best efforts to cause the registration
statement relating thereto to

 7
 

become effective
and to remain effective for a period of one year from the date of the first
public offering of the Pledged Interests, or that portion thereof to be sold,
and (iii) make all amendments thereto and/or to the related prospectus which,
in the reasonable opinion of the Collateral Agent, are necessary or advisable, and
in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto.  Pledgor agrees to cause the Issuer to comply
with the provisions of the securities or “Blue Sky” laws of any and all
jurisdictions which the Collateral Agent shall designate, and to make available
to the Mezzanine Investors, as soon as practicable, an earning statement (which
need not be audited) which will satisfy the provisions of Section 11(a) of the
Securities Act.

10.           Private Sale;
Further Assurances

(a)           Pledgor recognizes that the Collateral Agent may be unable
to effect a public sale of any or all of the Pledged Interests, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws or otherwise, and may desire to resort to one or more private
sales thereof to a restricted group of purchasers which will be obliged to
agree, among other things, to acquire such securities for their own account for
investment, and not with a view to the distribution or resale thereof.  Pledgor acknowledges and agrees that any such
private sale may result in prices and other terms less favorable than if such
sale were a public sale, and notwithstanding such current circumstances, agrees
that any such private sale shall be deemed to have been made in a commercially
reasonable manner provided that such private sale does not violate applicable
laws.  The Collateral Agent may take any
measures deemed necessary by the Collateral Agent, in its reasonable
discretion, to comply with any requirement, limitation or restriction under any
applicable securities laws (including the Securities Act) in connection with
such sale as it may be reasonably advised by counsel is required in order to avoid
any violation of any such applicable securities laws (including, without
limitation, compliance with procedures under applicable securities laws (if
any) that may restrict the number of prospective bidders and purchasers,
require that such prospective bidders and purchasers have certain
qualifications, and restrict such prospective bidders and purchasers to Persons
who will represent and agree that they are purchasing for their own account for
investment and not with a view to the distribution or resale of such Pledged
Interests).  At or before any private
sale, the Collateral Agent may require that prospective bidders establish, to
the Collateral Agent’s reasonable satisfaction, that they are investors which
qualify as purchasers of the Pledged Interests under the Securities Act, any
other applicable securities laws or any exemption thereunder.  The Collateral Agent shall be under no
obligation to delay a sale or any of the Pledged Interests for the period of
time necessary to permit the Issuer thereof to register such securities for
public sale under the Securities Act, or under applicable state securities
laws, even if such Issuer would agree to do so.

(b)           Pledgor agrees to
use its commercially reasonable best efforts to do or cause to be done all such
other acts as may be necessary to make such public or private sale of all or
any portion of the Pledged Interests pursuant to this Agreement valid and
binding and in compliance with any and all other applicable requirements of
law, the Gaming Laws, and the requirements of the Nevada Gaming
Authorities.  Pledgor further agrees that
a breach of any of the covenants contained in either Section 9 or Section 10 of
this Agreement will cause irreparable injury to the Collateral Agent and the
Mezzanine Investors, that the Collateral Agent and the Mezzanine Investors have
no adequate remedy at law in respect of such breach, and, as a

 8
 

consequence, that each and every covenant
contained in Section 9 and Section 10 shall be specifically enforceable against
Pledgor, and Pledgor hereby waives and agrees not to assert any defenses
against an action for specific performance of such covenants except for a
defense that (i) no Event of Default has occurred or (ii) the exercise by the
Collateral Agent of its rights and remedies violated the terms of this
Agreement or applicable laws.

(c)           If notice of disposition is required by applicable laws be
given, such notice shall be sufficient and commercially reasonable if given to
the Pledgor by or on behalf of the Collateral Agent at least ten (10) days
prior to the proposed disposition.

(d)           The Collateral Agent may, on the request of the Majority
Holders,  purchase any or all of the
Pledged Interests sold at any public sale or, to the extent permitted by
applicable laws, at any private sale.

(e)           The Collateral Agent shall not be obligated to make any
sale pursuant to any notice given and may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for the sale, and such sale
may be resumed upon notice to the Pledgor at any time and place to which the
same may be so adjourned in a commercially reasonable manner.

(f)            At any sale, the Collateral Agent shall have the right to
transfer to the purchaser thereof the Pledged Interests sold.

(g)           At any sale, the Pledged Interests may be sold in one lot
as an entirety or in separate portions, as the Majority Holders may reasonably
determine in good faith and in a commercially reasonable manner.

11.           Proceeds of Sale.

Subject to the Gaming Laws and the requirements of the
Nevada Gaming Authorities, the proceeds of any collection, recovery, receipt,
appropriation, realization, disposition or sale of the Collateral following the
occurrence and during the continuance of an Event of Default shall be applied
by Collateral Agent as follows:

(a)           First, to the payment of all reasonable costs, expenses
and charges of Collateral Agent and to the reimbursement of Collateral Agent
for the prior payment of such costs, expenses and charges incurred in
connection with the care and safekeeping of any of the Collateral (including,
without limitation, the expenses of any sale or other proceeding, the expenses
of any taking, reasonable attorneys’ fees and expenses, court costs, any other
fees or expenses reasonably incurred or expenditures or advances made by
Collateral Agent and the Mezzanine Investors in the protection, enforcement or
exercise of its rights, powers or remedies hereunder) with interest on any such
reimbursement at the rate prescribed in the Warrants as the  Default Rate from the date of payment.

(b)           Second, to the payment of the other Warrant Obligations,
in whole or in part, in accordance with the Warrants.

 9
 

(c)           Third, to such Persons (if any) as required by Section
9-615(a)(3) of the New York UCC.

(d)           Fourth, to the extent of any surplus thereafter remaining,
to Pledgor or as a court of competent jurisdiction may direct.

In the event that the proceeds of any collection,
recovery, receipt, appropriation, realization or sale are insufficient to
satisfy the Warrant Obligations, Pledgor shall be liable for the deficiency
plus the reasonable costs and fees of any attorneys employed by Collateral
Agent and/or the Mezzanine Investors to collect such deficiency.

12.           Waiver of
Marshaling.

Pledgor hereby waives any right to compel any
marshaling of any of the Collateral.

13.           Collateral Agent
Appointed Attorney-In-Fact and Performance by Collateral Agent.

Upon the occurrence and during the continuance of an
Event of Default, and subject to the Gaming Laws, the requirements of the
Nevada Gaming Authorities, Pledgor hereby irrevocably constitutes and appoints
Collateral Agent as Pledgor’s true and lawful attorney-in-fact, with full power
of substitution, to execute, acknowledge and deliver any instruments evidencing
or pertaining to the Collateral and to do in Pledgor’s name, place and stead,
all such acts, things and deeds for and on behalf of and in the name of
Pledgor, which Pledgor could or might do or which Collateral Agent may deem
necessary or desirable to accomplish the purposes of this Agreement, including,
without limitation, to execute such instruments of assignment or transfer or
orders and to register, convey or otherwise transfer title to the Collateral into
Collateral Agent’s name for the benefit of and to be held in trust for the
Mezzanine Investors.  Pledgor hereby
ratifies and confirms all that said attorney-in-fact may so do and hereby
declares this power of attorney to be coupled with an interest and irrevocable.  If Pledgor fails to perform any agreement
herein contained, Collateral Agent, at the request of the Majority Holders, may
itself perform or cause performance thereof, and any reasonable costs and
expenses of Collateral Agent incurred in connection therewith shall be paid by
Pledgor as provided in Section 24 hereof.

14.           Termination;
Further Assurances.

This Agreement shall terminate upon the payment and
performance in full of all the Warrant Obligations to the Mezzanine Investors
(including, the termination or satisfaction of the Put Right (as defined in the
Warrants) in accordance with the terms of the Warrants).  Upon such termination, the Collateral Agent
shall promptly return, at Pledgor’s expense, such Collateral as has not
theretofore been sold, disposed of or otherwise applied pursuant to this
Agreement and shall execute and deliver, at the Pledgor’s expense, any
instruments, agreements and other documents reasonably requested by the Pledgor
to terminate any Liens of the Collateral Agent on any of the Collateral.

 10
 

15.           Concerning
Collateral Agent.

The recitals of fact herein shall be taken as
statements of Pledgor for which Collateral Agent assumes no
responsibility.  Collateral Agent makes
no representation to anyone as to the value of the Collateral or any part
thereof or as to the validity or adequacy of the security afforded or intended
to be afforded thereby or as to the validity of this Agreement.  Collateral Agent shall be protected in
relying upon any notice, consent, request or other paper or document believed
by it to be genuine and correct and to have been signed by a proper
person.  The permissive rights of
Collateral Agent hereunder shall not be construed as duties of Collateral
Agent.  Collateral Agent shall be under
no obligation to take any action toward the enforcement of this Agreement or
rights or remedies in respect of any of the Collateral.  Collateral Agent shall not be personally
liable for any action taken or omitted by it in good faith and reasonably
believed by it to be within the power or discretion conferred upon it by this
Agreement.

16.           Notices.

Any notice or other communication (“Notice”)
may be given to Pledgor or to Collateral Agent at their respective addresses
set forth below.  Any Notice, request,
demand, direction or other communication to be given to or made upon any party
hereto under any provision of this Agreement shall be given or made by
telephone or in writing (which includes by means of electronic transmission
(i.e., email) or facsimile transmission. 
Any such Notice must be delivered to the applicable parties hereto at
the addresses and numbers set forth under their respective names hereof.  Any Notice shall be effective:

(a)           In the case of hand-delivery, when delivered;

(b)           If given by mail, five (5) days after such Notice is
deposited with the United States Postal Service, with first-class postage
prepaid, return receipt requested;

(c)           In the case of a telephonic Notice, when a party is
contacted by telephone, if delivery of such telephonic Notice is confirmed no
later than the next Business Day by hand delivery, a facsimile or electronic
transmission, or an overnight courier delivery of a confirmatory Notice
(received at or before noon on such next Business Day);

(d)           In the case of a facsimile transmission, when sent to the
applicable party’s facsimile machine’s telephone number, if the party sending
such Notice receives confirmation of the delivery thereof from its own
facsimile machine;

(e)           In the case of electronic transmission, when actually
received;

(f)            If given by any other means (including by overnight
courier), when actually received.

 11
 

 

	
  If to Collateral Agent:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Post Advisory
  Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire
  Boulevard Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA
  90025

  
	
   

  	
   

  	
  Attention: Carl
  Goldsmith

  
	
   

  	
   

  	
  Telephone: (310)
  996-9600

  
	
   

  	
   

  	
  Telecopier:
  (310) 996-9669

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Proskauer Rose
  LLP

  
	
   

  	
   

  	
  One
  International Place

  
	
   

  	
   

  	
  Boston, MA 02110

  
	
   

  	
   

  	
  Attention:
  Stephen A. Boyko, Esq.

  
	
   

  	
   

  	
  Telecopier:
  (617) 526-9899

  
	
   

  	
   

  	
   

  
	
  If to Pledgor:

  	
   

  	
  EquityCo, L.L.C.

  
	
   

  	
   

  	
  c/o OpBiz,
  L.L.C.

  
	
   

  	
   

  	
  3667 Las Vegas
  Boulevard South

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89109

  
	
   

  	
   

  	
  Attention:
  Joshua Revitz c/o Debbie Faint

  
	
   

  	
   

  	
  Telecopier No.:
  (702) 785-5080

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Greenberg
  Traurig LLP

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, New
  York 10166

  
	
   

  	
   

  	
  Attention:
  Joseph Kishel, Esq.

  
	
   

  	
   

  	
  Telecopier No.:
  (212) 801-6400

  

 

17.           Governing Law.

This Agreement and all rights and obligations
hereunder shall be governed by and construed and enforced in all respects in
accordance with the laws of the State of New York. Notwithstanding the
foregoing, matters of law in this Agreement that are related to gaming in
Nevada shall be governed by the Nevada Gaming Control Act (NRS Chapter 463)(the
“Act”) and the regulations (the “NGC Regulations” and together
with the Act collectively the “Gaming Laws”) of the Nevada Gaming
Commission (the “Commission”) as enforced by the State Gaming Control
Board (the “Board” and together with the Commission collectively the “Nevada
Gaming Authorities”) in their current form and as they may hereafter be
amended from time to time.

18.           Waivers.

(a)           EACH PARTY HERETO
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION

 12
 

HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OTHER
AGREEMENT EXECUTED OR DELIVERED BY THEM IN CONNECTION HEREWITH, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND
EACH PARTY HERETO HEREBY AGREES AND CONSENTS THAT ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY
PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT
AS WRITTEN EVIDENCE OF THE CONSENT OF EACH PARTY TO THE WAIVER OF ITS RIGHT TO
TRIAL BY JURY.

(b)           To the fullest extent permitted by Applicable Law, Pledgor
waives any rights to interpose any defense, counterclaim or offset of any
nature and description which it may have or which may exist between and among
Collateral Agent, the Mezzanine Investors, and/or Pledgor with respect to
Pledgor’s obligations under this Agreement which arise from or relate to (i)
the failure of consideration, enforceability (except for any such defense or
counterclaim arising or existing with respect to Section 23(d)), payment (other
than the indefeasible cash payment of the Warrant Obligations), statute of
limitations, accord and satisfaction, usury or (ii) the exercise by the
Collateral Agent of its rights and remedies hereunder in accordance with this
Agreement and applicable laws.

(c)           Pledgor waives any and all rights to demand for payment
and any right to notice of the exercise of any of the rights or remedies by or
on behalf of the Collateral Agent including with respect to any sale or
disposition of Collateral or of any default, except to the extent expressly
provided herein.

19.           Jurisdiction.

EACH OF THE PLEDGOR AND THE COLLATERAL AGENT EXPRESSLY
CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS IN THE STATE OF NEW
YORK SITTING IN THE COUNTY OF NEW YORK AND THE UNITED STATES DISTRICT COURT OF
THE SOUTHERN DISTRICT OF NEW YORK IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED
TO OR CONNECTED WITH THIS AGREEMENT. 
EACH OF THE PLEDGOR AND THE COLLATERAL AGENT FURTHER CONSENTS THAT ANY
SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER
APPLICATION TO EITHER OF THE AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY
NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE SERVED IN THE
MANNER PROVIDED IN SECTION 16 HEREOF. 
EACH OF THE COLLATERAL AGENT AND THE PLEDGOR WAIVES ANY OBJECTION TO
JURISDICTION AND VENUE OF ANY SUCH ACTION INSTITUTED HEREON AND SHALL NOT
ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON FORUM
NON CONVENIENS.

 13
 

20.           No Waiver;
Cumulative Remedies.

Any and all of Collateral Agent’s and the Mezzanine
Investors’ rights with respect to the Liens granted under this Agreement shall
continue unimpaired, and Pledgor shall be and remain obligated in accordance
with the terms hereof, notwithstanding (a) the bankruptcy, insolvency or
reorganization of Pledgor, (b) the release or substitution of any item of the
Collateral at any time, or of any rights or interests therein, or (c) any delay,
extension of time, renewal, compromise or other indulgence granted by
Collateral Agent and the Mezzanine Investors in reference to any of the Warrant
Obligations.  Pledgor hereby waives all
notice of any such delay, extension, release, substitution, renewal, compromise
or other indulgence, and hereby consents to be bound hereby as fully and
effectively as if Pledgor had expressly agreed thereto in advance.  No failure on the part of Collateral Agent or
the Mezzanine Investors to exercise, and no delay in exercising, any right,
power or remedy hereunder shall operate as a waiver thereof nor shall any
single or partial exercise of any such right, power or remedy by Collateral
Agent and the Mezzanine Investors preclude any other or further exercise thereof
or the exercise of any right, power or remedy. 
All remedies hereunder are cumulative and are not exclusive of any other
remedies provided by law.

21.           Severability.

In case any security interest or other right of
Collateral Agent and/or the Mezzanine Investors shall be held to be invalid,
illegal or unenforceable, such invalidity, illegality or unenforceability shall
not affect any other security interest or other right, privilege or power
granted under this Agreement.  In the
event that any provision of this Agreement or the application thereof to
Pledgor or any circumstance in any jurisdiction governing this Agreement shall,
to any extent, be invalid or unenforceable under any applicable statute,
regulation, or rule of law, such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform to such statute, regulation or rule of law, and the
remainder of this Agreement and the application of any such invalid or
unenforceable provision to parties, jurisdictions, or circumstances other than
to whom or to which it is held invalid or unenforceable shall not be affected
thereby, nor shall same affect the validity or enforceability of any other
provision of this Agreement.

22.           Counterparts;
Facsimiles.

This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which when
taken together shall constitute one and the same instrument.  Any signature delivered by a party by
facsimile transmission shall be deemed an original signature hereto.

23.           Miscellaneous.

(a)           This Agreement
constitutes the entire and final agreement among the parties with respect to
the subject matter hereof and neither this Agreement nor any term hereof may be
changed, discharged or terminated orally, but only by an instrument in writing,
signed by Collateral Agent and Pledgor. 
No waiver of any term or condition of this Agreement, whether by delay,
omission or otherwise, shall be effective unless in writing and signed by the
party

 14
 

sought to be charged, and then such waiver
shall be effective only in the specific instance and for the purpose for which
given.

(b)           This Agreement shall be binding upon Pledgor, and Pledgor’s
successors and permitted assigns, and shall inure to the benefit of Collateral
Agent, the Mezzanine Investors and their successors and permitted assigns.  Neither this Agreement nor any rights or
obligations of the Pledgor or any of the Pledgor’s successors and assigns may
be assigned without the express written consent of the Collateral Agent.  The term “Collateral Agent”, as used
herein, shall include any successor or assign of Collateral Agent at the time
entitled to the pledged interest in the Collateral.

(c)           The headings and captions in this Agreement are for
purposes of reference only and shall not constitute part of this Agreement for
any other purpose.

(d)           Pledgor and Collateral Agent further agree that:

(i)            This
Agreement and the transactions, rights, obligations contemplated hereunder
shall not be effective in any respect until the date on which the Agreement is
approved in writing by the Commission a (the “Effective Date”).  A copy of such approval shall be delivered to
the Pledgor;

(ii)           Notwithstanding
approval by the Commission pursuant to paragraph (d)(i), other approvals may be
required before certain transactions relating to this Agreement may occur,
including, but not limited to, the following:

(1)           Any re-registration
or action similar to re-registration of the Pledged Interests must be approved
in advance by the Nevada Gaming Authorities in accordance with NRS 463.510 and
NGC Regulation 8A.040;

(2)           Any foreclosure,
sale, transfer, or other disposition of the Pledged Interests, including
surrender of possession by the Custodian of the certificates evidencing the
Pledged Interests, must be approved in advance by the Commission in accordance
with NRS 463.510 and NGC Regulation 8A.020 and 8A.030, and shall not be
effective unless so approved; and

(3)           Pursuant to NGC
Regulation 8A.040, the payment or receipt of any money or other thing of value
constituting any part of the consideration for the transfer or acquisition of
the Pledged Interests must be approved in advance by the Commission and the
Board, except that such consideration may be placed in escrow pending the
necessary approvals;

(4)           Any amendment to
this Agreement; and

(e)           Notwithstanding any
term or provision in this Agreement or any other Transaction Document, the
certificate(s) representing the Pledged Interests shall at all times

 15
 

remain physically within the State of Nevada
with the Collateral Agent or its Custodian at a location designated to the
Board and shall be made available by the Collateral Agent for inspection by
employees or agents of the Board immediately upon request during normal
business hours.

24.           Expenses.

The Collateral shall also secure, and Pledgor shall pay to Collateral Agent on demand, from time to
time, all reasonable out-of-pocket costs and expenses (including but not
limited to, reasonable attorneys’ fees of one legal counsel to the Mezzanine
Investors and one Nevada counsel to the Mezzanine Investors) and costs, taxes,
and all transfer, recording, filing and other charges) of, or incidental to,
the custody, care, transfer, administration of the Collateral, or in any way
relating to the enforcement, protection or preservation of the rights or
remedies of Collateral Agent and the Mezzanine Investors under this Agreement
or with respect to any of the other Restructuring Documents.

25.           Recapture.

Anything in this Agreement to the contrary
notwithstanding, if Collateral Agent and/or the Mezzanine Investors receive any
payment or payments on account of the Warrant Obligations, which payment or
payments or any part thereof are subsequently invalidated, declared to be
fraudulent or preferential or otherwise set aside by any Governmental Authority
and/or required by any Governmental Authority to be repaid to a trustee,
receiver, or any other party under the United States Bankruptcy Code, as
amended, or any other federal or state bankruptcy, reorganization, moratorium
or insolvency law relating to or affecting the enforcement of creditors’ rights
generally, common law or equitable doctrine, then to the extent of any sum not
finally retained by Collateral Agent and/or the Mezzanine Investors, Pledgor’s
obligations to Collateral Agent and the Mezzanine Investors shall be reinstated
and this Agreement shall remain in full force and effect (or be reinstated)
until payment shall have been made to Collateral Agent, which payment shall be
due on demand.

26.           Gaming Laws and
Gaming Authorities.   The exercise of
all rights, remedies, powers and privileges of the Collateral Agent and the
Mezzanine Investors hereunder are subject to all applicable Gaming Laws and
applicable requirements of Gaming Authorities.

27.           Acknowledgment of
Issuer.   The acknowledgment of the
Company to this Agreement is made solely for the purposes of acknowledging
Section 3(b) hereof.

[Remainder of Page
Intentionally Left Blank]

 

 16

IN WITNESS WHEREOF, the parties have duly executed
this Agreement as of the day and year first written above.

	
   

  	
  EQUITYCO, L.L.C.

  
	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Douglas Teitelbaum

  
	
   

  	
  Title: Manager

  

 

 

	
  

  	
  POST ADVISORY GROUP, L.L.C., as
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Lawrence A. Post

  
	
   

  	
  Title: Chief Investment Officer

  

 

	
  AGREED AND ACKNOWLEGED:

  	
   

  
	
   

  	
   

  
	
  MEZZCO, L.L.C.

  	
   

  
	
  a Nevada limited liability company

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  Equity Co, L.L.C.,

  
	
   

  	
  a
  Nevada limited liability company

  
	
   

  	
  its
  sole member

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: Douglas Teitelbaum

  	
   

  
	
  Title: Manager

  	
   

  
				

SCHEDULE A

PLEDGED INTEREST

	
  Equity

  	
   

  	
  Percentage of Pledgor’s interests in Equity
  pledged

  	
   

  	
  Certificate No.

  
	
  MezzCo, L.L.C.

  	
   

  	
  100%

  	
   

  	
  1

  

 

SCHEDULE B

OPTIONS AND WARRANTS

None.

SCHEDULE C

ADDITIONAL NOTICES AND FILINGS

None.

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