Document:

Exhibit 10.85

 

Published CUSIP No. 42703YAF4

 

TERM
JOINDER AGREEMENT

 

THIS TERM JOINDER AGREEMENT
(this “Agreement”), dated as of January 31, 2005, is among Herbst Gaming, Inc.,
a Nevada corporation (“Borrower”), each of the Increasing Lenders described below,
each of the Joining Lenders described below, and Bank of America, N.A., as
Administrative Agent (the “Administrative Agent”), pursuant to the Amended and
Restated Credit Agreement dated as of October 8, 2004, among Borrower, the
Lenders referred to therein and Administrative Agent (as amended, the “Credit
Agreement”).

 

RECITALS

 

A.                                   The credit
facilities provided by the Lenders under the Credit Agreement have heretofore
consisted of the Aggregate Revolving Commitments in the principal amount of
$175,000,000.

 

B.                                     Pursuant to
Section 2.16 of the Credit Agreement, Borrower is entitled to increase the
credit facilities under the Credit Agreement by means of the $100,000,000 of
additional Term Commitments contemplated herein.

 

C.                                     Banc of America
Securities LLC and Lehman Brothers, Inc. have served as Joint Lead Arrangers
and Joint Book Managers for the $100,000,000 in Term Loan credit facilities
contemplated by this Agreement.  Bank of
America, N.A. is the Administrative Agent for the Term Loan credit facilities,
and Lehman Commercial Paper Inc. is the Documentation Agent for the Term Loan
credit facilities.

 

D.                                    The Term Loans
contemplated by this Agreement shall be made substantially concurrently with
the consummation of the Grace Asset Purchase.

 

E.                                      Certain of the
Lenders already party to the Credit Agreement which are designated as the “Increasing
Lenders” on Schedule 1 hereto have agreed to extend Term Commitments under the
Credit Agreement.

 

F.                                      The Persons
listed on Schedule 1 hereto as “Joining Lenders” have not heretofore been
Lenders party to the Credit Agreement, but by this Agreement will become new
Lenders and have Term Commitments as set forth on Schedule 1.

 

NOW THEREFORE, the parties hereto agrees as follows:

 

AGREEMENT

 

1.                                       Definitions. 
This Agreement is one of the Loan Documents.  Terms defined in the Credit Agreement and not
otherwise defined in this Agreement shall have the meanings given those terms
in the Credit Agreement when used herein and such definitions are incorporated
herein as though set forth in full.  In
addition, as used herein, the following terms shall have the meanings
respectively set forth after each:

 

“Term
Applicable Rate” means, with respect to the Term Loans, during each Pricing
Period:

 

1

 

(a)
at all times prior to May 31, 2005, and thereafter in respect of each Pricing
Period in respect of which the Total Debt to EBITDA Ratio of the Fiscal Quarter
ending approximately two months prior to the first day of that Pricing Period
is greater than or equal to 4.00:1.00, (i) in respect of each Eurodollar Loan,
the Eurodollar Rate plus 2.25% per annum, and (ii) in respect of each Base Rate
Loan, the Base Rate plus 1.00% per annum; and

 

(b)
following May 31, 2005, if the Total Debt to EBITDA Ratio of the Fiscal Quarter
ending approximately two months prior to the first day of that Pricing Period
is less than 4.00:1.00, then (i) in respect of each Eurodollar Rate Loan, the
Eurodollar Rate plus 2.00% per annum, and (ii) in respect of each Base Rate
Loan, the Base Rate plus 0.75% per annum;

 

provided, in each case, that if Borrower fails to
deliver a Compliance Certificate in respect of any Fiscal Quarter prior to the
first day of the related Pricing Period, then the pricing set forth in clause
(a) above shall apply as of the first Business Day of such Pricing Period until
the date upon which the required Compliance Certificate is delivered.

 

“Term
Effective Date” means the
date upon which all of conditions set forth in Section 15 hereof shall have
been completely satisfied or otherwise waived by Administrative Agent.

 

“Term
Maturity Date” means the
sixth anniversary of the Term Effective Date.

 

2.                                       Term Loans.  By the execution and delivery of this
Agreement, each of the Term Lenders hereby becomes a party to the Credit
Agreement as a Lender, and the Borrower and the Administrative Agent agree to
accept and admit the Term Lenders as Lenders under the Credit Agreement.  Subject to the terms and conditions set forth
herein and in the Credit Agreement, each Term Lender severally agrees to make a
Term Loan to the Borrower on the Closing Date in the amount of its Term
Commitment.  Term Loans may be Base Rate Loans or Eurodollar Rate
Loans, as further provided herein.  No Term Loan which is at any time prepaid or
repaid may be reborrowed, but each Term Loan may be converted, in whole or in
part, to a Term Loan of another Type, or continued from time to time, in the
manner contemplated by Section 2.03 of the Credit Agreement.

 

3.                                       Voluntary
Prepayment of the Term Loans.  The Borrower may, upon notice to the
Administrative Agent, at any time or from time to time voluntarily prepay the
Terms Loans in the manner set forth in Section 2.06 of the Credit Agreement.  

 

4.                                       Amortization of
the Term Loans.  

 

(a)                                  On each
Quarterly Payment Date, commencing with the first Quarterly Payment Date which
is three months or more following the date of this Agreement, Borrower shall
repay the then outstanding principal amount of the Term Loans in the principal
amount of $250,000.

 

(b)                                 In any event,
Borrower shall repay to the Term Lenders on the Term Maturity Date the
aggregate principal amount of the Term Loans outstanding on such date.

 

5.                                       Interest.  The Term Loans shall bear interest on the
outstanding principal amount thereof as provided in Section of 2.10 of Credit
Agreement, including without limitation those provisions relating to the
Default Rate, provided that the term “Applicable Rate” contained therein shall
refer to the Term Applicable Rate.

 

2

 

6.                                       Use of Procceds.  Borrower shall use the proceeds of the Terms
Loans for the acquisition of the Grace Assets and for other proper business
purposes of Borrower and its Subsidiaries.

 

7.                                       Borrower’s
Reaffirmation of the Liens.  Borrower hereby confirms that (a) the
Obligations secured by Borrower under the various Loan Documents shall be
deemed to include, without limitation, all Obligations arising under the Terms
Loans, and (b) the Liens granted under the Loan Documents shall be granted for
the benefit of the Lenders, including, without limitation, the Term Lenders, on
an equal, ratable and pari passu basis.

 

8.                                       Assumption by
Increasing Lenders.  By signing
this Agreement, each of the Increasing Lenders agrees that, concurrently with
the effectiveness of this Agreement, it shall become a Term Lender under the
Credit Agreement with a Term Commitment in the amount set forth opposite such
Increasing Lender’s name on Schedule 1.

 

9.                                       Joinder by
Joining Lenders.  By signing
this Agreement, each of the Joining Lenders agrees that, concurrently with the
effectiveness of this Agreement, it shall become a Term Lender under the Credit
Agreement and its Term Commitment shall be in the amount set forth opposite
such Joining Lender’s name on Schedule 1. 
Each Joining Lender agrees that it will be bound by all terms,
provisions, conditions, obligations and duties applicable to a Lender under the
Credit Agreement and other Loan Documents.

 

10.                                 Acceptance of
Increased Commitment by Borrower.  Borrower hereby accepts the Term Commitment
of each of the Term  Lenders.

 

11.                                 Representations
and Warranties of Borrower.  Borrower represents and warrants to the
Administrative Agent and the Lenders that (a) no Default or Event of Default
has occurred and remains continuing, and (b) each of the representations and
warranties of Borrower set forth in the Credit Agreement is true and correct as
of the date hereof (other than those which relate by their terms solely to
another date).

 

12.                                 Representations,
Warranties and Covenants of the Joining Lenders.  Each of the Joining Lenders hereby severally
represents, warrants and covenants that:

 

(a)                                  it is an
Eligible Assignee.

 

(b)                                 it has agreed
to become a party to the Credit Agreement solely in reliance upon its own
independent investigation of the financial and other circumstances surrounding
Borrower and all aspects of the transactions evidenced by or referenced in the
Loan Documents, or has otherwise satisfied itself thereto, and that it is not
relying upon any representation, warranty or statement of Administrative Agent
in connection with the assumption made hereby. 
Each Joining Lender further acknowledges that it will, independently and
based upon its review of such documents and information as it deems appropriate
at the time, continue to make its own credit decisions in connection with the
assumption made hereby.

 

(c)                                  it has
experience and expertise in the making of or investing in loans of the type
made under the Credit Agreement and with respect to the other types of credit
which may be extended under the Credit Agreement; and that it has received,
reviewed and approved copies of all Loan Documents.

 

(d)                                 It has duly
authorized, executed and delivered this Agreement, and it is legally entitled
to enter into the transactions contemplated herein.

 

3

 

(e)                                  Neither
Administrative Agent nor any other Lender shall be responsible to such Joining
Lender for the execution, effectiveness, accuracy, completeness, legal effect,
genuineness, validity, enforceability, collectibility or sufficiency of any of
the Loan Documents (other than its own due execution of the Loan Documents) or
for any representations, warranties, recitals or statements made therein or in
any written or oral statement or in any financial or other statements,
instruments, reports, certificates or any other documents made or furnished or
made available by Administrative Agent to such Joining Lender (other than
written representations, warranties, recitals or statements made by such party
therein) or by or on behalf of Borrower to Administrative Agent and the Lenders
or such Joining Lender in connection with the Loan Documents and the
transactions contemplated thereby or for the financial condition or business
affairs of Borrower or any other Person liable for the payment of any Loan or
payment of amounts owed in connection with other extensions of credit under the
Credit Agreement or any other matter. 
The Administrative Agent shall not be required to ascertain or inquire
as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or
as to the use of the proceeds of the Loans or other extensions of credit under
the Credit Agreement or as to the existence or possible existence of any
Default or Event of Default.

 

13.                                 Representations and Warranties of
Increasing Lenders.  Each of the Increasing Lenders hereby
represents and warrants that it has duly authorized, executed and delivered
this Agreement and it is legally entitled to enter into the transactions
contemplated herein..

 

14.                                 Waiver of Missouri Purchase. 
The Administrative Agent and the Increasing Lenders (which Increasing
Lenders constitute the Requisite Lenders under the Credit Agreement), hereby
waive the requirement of Section 2.16 of the Credit Agreement that the entirety
of the Grace Asset Purchase be consummated concurrently with the extension of
the Term Loans, provided that the Grace Assets located in and associated
with the State of Iowa are purchased substantially concurrently with the making
of the Term Loans.

 

15.                                 Conditions
Precedent.  The
effectiveness of this Agreement is subject to the satisfaction of each of the
following conditions:

 

(a)                                  Documentation.  Administrative Agent shall have received the
following documents (in such number as Administrative Agent shall reasonably
request), each in form and substance acceptable to Administrative Agent:

 

(1)                                  a fully
executed original of this Agreement;

 

(2)                                  executed Term
Notes in favor of each of the Term Lenders reflecting its Term Commitment;

 

(3)                                  a fully executed original of the Consent
and Reaffirmation of Loan Parties, substantially in the form attached hereto as
Schedule 2;

 

(4)                                  an amendment to the Deed of Trust executed
by Flamingo Paradise with respect to the real property and improvements
constituting Terrible’s Hotel & Casino to secure the Flamingo Paradise
Guaranty increasing the amount of the secured obligations thereunder to reflect
the increase of the Revolving Commitment to $175,000,000 and to secure the Term
Loans in an amount which is not less than $100,000,000;

 

4

 

(5)                                  an amendment to the fee and leasehold
Deeds of Trust executed by Market Gaming with respect to the real property and
improvements constituting its Henderson, Nevada casino to secure the Market
Gaming Guaranty increasing the amount of the secured obligations thereunder to
reflect the increase of the Revolving Commitment to $175,000,000 and to secure
the Term Loans in an amount which is not less than $100,000,000;

 

(6)                                  amendments to the leasehold Deeds of
Trust executed by E-T-T, Inc. in respect of its interests in the casino
properties located at Town Center, Pahrump at Lakeside, Pahrump and at Searchlight
Truck Stop, Searchlight and its interest in the office and warehouse space on
Russell Road to secure the E-T-T, Inc. Guaranty increasing the amount of the
secured obligations thereunder to reflect the increase of the Revolving
Commitment to $175,000,000 and to secure the Term Loans in an amount which is
not less than $100,000,000;

 

(7)                                  amendments to the fee and leasehold Deeds
of Trust executed by E-T-T Enterprises, L.L.C. in respect of its interest the
Lakeside, Pahrump casino property and 
its interest in the Russell Road office and warehouse space increasing
the amount of the secured obligations thereunder to reflect the increase of the
Revolving Commitment to $175,000,000 and to secure the Term Loans in an amount
which is not less than $100,000,000

 

(8)                                  an amendment to the leasehold Deed of
Trust executed by Borrower in respect of its interest in the “training facility”
adjacent to the Russell Road office and warehouse space to secure the
obligations under this Agreement increasing the amount of the secured
obligations thereunder to reflect the increase of the Revolving Commitment to
$175,000,000 and to secure the Term Loans in an amount which is not less than
$100,000,000;

 

(9)                                  favorable
opinions of Gibson, Dunn & Crutcher, LLP and Kummer Kaempfer Bonner &
Renshaw, counsel to the Loan Parties, addressed to the Administrative Agent and
each Lender, as to such matters concerning the Loan Parties and the Loan
Documents as the Administrative Agent or the Requisite Lenders may reasonably
request;

 

(10)                            an executed
certificate of each Loan Party dated as of the Term Effective Date  signed by a Responsible Officer of such Loan
Party (A) certifying and attaching the resolutions adopted by such Loan
Party approving or consenting to the increase in the Commitments, and
(B) in the case of the Borrower, certifying that, before and after giving
effect to such increase, (1) the representations and warranties contained
in Article V of the Credit Agreement and the other Loan Documents are true
and correct on and as of the Term Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct as of such earlier date, and except that
the representations and warranties contained in subsections (a) and (b) of
Section 5.05 of the Credit Agreement shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Credit Agreement, and (2) no Default exists or would
result from the increase to the Commitments;

 

(11)                            an executed
certificate of a Responsible Official of Borrower stating that (a) the
representation and warranties contained in Section 11 hereof are true

 

5

 

and correct as of the date hereof, and (b) the Grace
Asset Purchase, has been, or will be substantially concurrently herewith,
consummated in accordance with (and without any waiver of any term or provision
or closing condition of) the Grace Purchase Agreements and in material
compliance with all applicable Laws, and that all approvals of Governmental
Agencies required for the consummation of such transactions have been obtained,
provided that in the event that Borrower elects not to concurrently
consummate the purchase of the Grace Assets located the State of Missouri
(including any intangible assets associated with the businesses located in
Missouri), such assets may be excluded from its certification;

 

(b)                                 such
endorsements to its existing title insurance policies as the Administrative
Agent may reasonably request confirming the continuing priority of the lien of
the existing fee and leasehold Deeds of Trust;

 

(c)                                  those fees
described in the Fee Letter which are due and payable as of the date hereof;

 

(d)                                 evidence that
all insurance required to be maintained pursuant to the Loan Documents has been
obtained and is in effect with respect to the assets which are the subject of
the Grace Asset Purchase; and

 

(e)                                  such other
assurances, certificates, documents, consents or opinions as the Administrative
Agent or the Requisite Lenders reasonably may require.

 

16.                                 Beneficiaries
of this Agreement.  Each of the
Joining Lenders and Increasing Lenders hereby acknowledges and agrees that the
agreements set forth herein are for the express benefit of Borrower,
Administrative Agent and the other Lenders and their respective successors and
permitted assigns.

 

17.                                 No Conflicts.  To the extent of any conflict or
inconsistency between this Agreement and the Credit Agreement with regards to
the Term Loans, the terms of this Agreement shall prevail.

 

18.                                 Governing Law.  This Agreement and the transactions
contemplated hereunder shall be governed by and construed and enforced in
accordance with the local Laws of the State of Nevada.

 

19.                                 Execution of
Agreement.  This
Agreement may be executed in any number of counterparts (including by
facsimile) and by different parties on separate counterparts, each of which
when so executed and delivered shall be deemed an original and all of which
when taken together shall constitute but one and the same instrument.

 

[Signature page follows]

 

6

 

IN WITNESS WHEREOF, each of
the undersigned has executed this Agreement as of the date first above written.

 

 

	
   

  	
  AMERICAN EXPRESS
  CERTIFICATE COMPANY

  
	
   

  	
  By:

  	
  American Express Asset
  Management Group Inc.

  
	
   

  	
   

  	
  As Collateral Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IDS LIFE INSURANCE COMPANY

  
	
   

  	
  By:

  	
  American Express Asset
  Management Group Inc.

  
	
   

  	
   

  	
  As Collateral Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CENTURION CDO 8, LIMITED

  
	
   

  	
  By:

  	
  American Express Asset
  Management Group, Inc.

  
	
   

  	
   

  	
  As Collateral Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Steven B. Staver

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
							

 

 

 

 

 

	
   

  	
  BLACK DIAMOND CLO 2005-1
  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wendy Ebanks

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Wendy Ebanks

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Director

  	
   

  
						

 

 

 

 

 

	
   

  	
  CARLYLE HIGH YIELD PARTNERS
  II, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Pace

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Linda Pace

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE HIGH YIELD
  PARTNERS III, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Pace

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Linda Pace

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE HIGH YIELD PARTNERS
  VI, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Pace

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Linda Pace

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE LOAN INVESTMENT
  LTD

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Linda Pace

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Linda Pace

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Managing Director

  	
   

  
						

 

 

 

 

 

	
   

  	
  SENIOR DEBT PORTFOLIO

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Boston Management and Research,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EATON VANCE
  INSTITUTIONAL SENIOR LOAN FUND

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EATON VANCE
  CDO III, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COSTANTINUS
  EATON VANCE CDO V, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  EATON VANCE
  CDO VI, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
							

 

 

 

 

 

	
   

  	
  GRAYSON & CO

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Boston Management and Research,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE NORINCHUKIN BANK, NEW YORK BRANCH,

  
	
   

  	
  through State Street Bank and Trust Company as Fiduciary

  Custodian.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  Attorney-in-fact

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TOLLI & CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Eaton Vance Management,

  
	
   

  	
   

  	
  as Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Michael B. Botthof

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
							

 

 

 

 

 

	
   

  	
  ELF FUNDING TRUST I

  
	
   

  	
  By:

  	
  Highland Capital Management, L.P.

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HIGHLAND OFFSHORE PARTNERS, L.P.

  
	
   

  	
  By:

  	
  Highland Capital Management, L.P.

  
	
   

  	
   

  	
  as General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PIONEER FLOATING RATE TRUST,

  
	
   

  	
  By:

  	
  Highland Capital Management, L.P.,

  
	
   

  	
   

  	
  its Sub-Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Todd Travers

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Todd Travers

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Senior Portfolio Manager

  	
   

  
	
   

  	
   

  	
   

  	
  Highland
  Capital Management, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LOAN STAR STATE TRUST

  
	
   

  	
  By:

  	
  Highland Capital Management, L.P.

  
	
   

  	
   

  	
  Its Investment Manager,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Strand Advisors, Inc.

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  By:

  	
  /s/ David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  David W. Lancelot

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Chief Financial Officer

  	
   

  
							

 

 

 

 

 

	
   

  	
  ING PRIME RATE TRUST

  
	
   

  	
  By:

  	
  ING Investment Management Co.

  
	
   

  	
   

  	
  as its investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William F. Nutting, Jr.

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William F. Nutting, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ING SENIOR INCOME FUND

  
	
   

  	
  By:

  	
  ING Investment Management Co.

  
	
   

  	
   

  	
  as its investment manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William F. Nutting, Jr.

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  William F. Nutting, Jr.

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
						

 

 

 

 

 

	
   

  	
  FLOATING RATE INCOME STRATEGIES FUND II, INC.

  (FRB)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jaimin Patel

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Jaimin Patel

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  	
   

  
						

 

 

 

 

 

	
   

  	
  NEVADA STATE BANK

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven A. Strunk

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Steven A. Strunk

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
						

 

 

 

 

 

	
   

  	
  SOUTHPORT CLO, LIMITED

  
	
   

  	
  By:

  	
  Pacific Investment Management Company LLC,

  
	
   

  	
   

  	
  as its Investment Advisor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ralph Lopez

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   

  	
   

  
	
   

  	
   

  	
  Title: 

  	
   

  	
   

  
						

 

 

 

 

 

	
   

  	
  LOAN FUNDING XI LLC

  
	
   

  	
  By:

  	
  Sankaty Advisors, LLC

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HARBOUR TOWN FUNDING LLC

  
	
   

  	
  By:

  	
  /s/ Diana M. Himes

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diana M. Himes

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Assistant Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RACE POINT CLO, LIMITED

  
	
   

  	
  By:

  	
  Sankaty Advisors, LLC

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RACE POINT II CLO, LIMITED

  
	
   

  	
  By:

  	
  Sankaty Advisors, LLC

  
	
   

  	
   

  	
  as Collateral Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Jeffrey Hawkins

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Senior Vice President

  	
   

  
						

 

 

 

 

 

	
   

  	
  ULT CBNA LOAN FUNDING LLC,

  
	
   

  	
  for itself or as agent for ULT CFPI

  
	
   

  	
  LOAN FUNDING LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Stanfield Capital Partners LLC

  
	
   

  	
   

  	
  as its Interim Asset Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Suzanne Smith

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Suzanne Smith

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  As Attorney-In-Fact

  	
   

  
						

 

 

 

 

 

	
   

  	
  VAN KAMPEN SENIOR INCOME TRUST

  
	
   

  	
  By:

  	
  Van Kampen Investment Advisory Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Sherrod

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Frank Sherrod

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VAN KAMPEN SENIOR LOAN FUND

  
	
   

  	
  By:

  	
  Van Kampen Investment Advisory Corp.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Frank Sherrod

  	
   

  
	
   

  	
   

  	
  Name: 

  	
   Frank Sherrod

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Vice President

  	
   

  
						

 

 

 

 

 

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter J. Vitale

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Peter J. Vitale

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  SVP

  	
   

  
						

 

 

 

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ V. Paul Arzouian

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  V. Paul Arzouian

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  	
   

  
						

 

 

 

 

 

	
   

  	
  BANK OF SCOTLAND

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amena Nabi

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Amena Nabi

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Assistant Vice President

  	
   

  
						

 

 

 

 

 

	
   

  	
  WELLS FARGO BANK N.A.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald Schubert

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  Donald Schubert

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  VP

  	
   

  
						

 

 

 

 

 

	
   

  	
  COMERICA WEST INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin T. Urban

  	
   

  
	
   

  	
   

  	
  Kevin T. Urban

  	
   

  
	
   

  	
   

  	
  Corporate Banking Officer

  	
   

  

 

 

 

 

 

	
  ACKNOWLEDGED AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  BANK OF AMERICA, N.A.,

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Chris M. Levine 

  	
   

  	
   

  
	
  Name:

  	
  Chris M. Levine

  	
   

  	
   

  
	
  Title:

  	
  Assistant Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  HERBST GAMING, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Edward Herbst

  	
   

  	
   

  
	
  Name:

  	
  Edward Herbst

  	
   

  	
   

  
	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
   

  
							

 

 

 

 

 

Schedule
1

 

Increasing
Lenders

 

	
  Name of Increasing Lender

  	
   

  	
  Amount of Term Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Nevada State Bank

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lehman Commercial Paper Inc.

  	
   

  	
  $

  	
  7,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Wells Fargo Bank N.A.,

  	
   

  	
  $

  	
  5,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Comerica West Incorporated,

  	
   

  	
  $

  	
  3,000,000

  	
   

  

 

Joining
Lenders

 

	
  Name of Joining Lender

  	
   

  	
  Amount of Term Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  American Express Certificate Company

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IDS Life Insurance Company

  	
   

  	
  $

  	
  500,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Centurion CDO 8, Limited

  	
   

  	
  $

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Black Diamond CLO 2005-1 Ltd.

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carlyle High Yield Partners II, Ltd.

  	
   

  	
  $

  	
  1,250,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carlyle High Yield Partners III, Ltd.

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carlyle High Yield Partners VI, Ltd.

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carlyle Loan Investment Ltd

  	
   

  	
  $

  	
  750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Senior Debt Portfolio

  	
   

  	
  $

  	
  1,365,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eaton Vance Institutional Senior Loan Fund

  	
   

  	
  $

  	
  400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eaton Vance CDO III, Ltd.

  	
   

  	
  $

  	
  160,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Costantinus Eaton Vance CDO V, Ltd.

  	
   

  	
  $

  	
  205,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eaton Vance CDO VI, Ltd.

  	
   

  	
  $

  	
  205,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grayson & Co

  	
   

  	
  $

  	
  2,330,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The Norinchukin Bank, New York Branch

  	
   

  	
  $

  	
  205,000

  	
   

  

 

 

	
  Tolli & Co.

  	
   

  	
  $

  	
  130,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELF Funding Trust I

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Highland Offshore Partners, L.P.

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pioneer Floating Rate Trust

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan Star State Trust

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Prime Rate Trust

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ING Senior Income Fund

  	
   

  	
  $

  	
  3,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Floating Rate Income Strategies Fund II,
  Inc. (FRB)

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Southport CLO, Limited

  	
   

  	
  $

  	
  4,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Loan Funding XI LLC

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Harbour Town Funding LLC

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Race Point CLO, Limited

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Race Point II CLO, Limited

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ULT CBNA Loan Funding LLC

  	
   

  	
  $

  	
  2,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Van Kampen Senior Income Trust

  	
   

  	
  $

  	
  2,400,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Van Kampen Senior Loan Fund

  	
   

  	
  $

  	
  1,600,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bank of Scotland

  	
   

  	
  $

  	
  5,000,000

  	
   

  

 

 

Schedule 2

 

(See attached)Exhibit 10.86

 

	
   

  	
   

  	
  FILE NUMBER 2005001646

  
	
   

  	
   

  	
  BK 02764 PG 0657

  
	
   

  	
   

  	
  RECORDED 02/02/2005 04:10:46 PM

  
	
  [Seal]

  	
   

  	
  RECORDING FEE 132.00

  
	
   

  	
   

  	
  KAREN HIGGINBOTHAM, RECORDER OF DEEDS

  
	
   

  	
   

  	
  BUCHANAN COUNTY, MISSOURI

  
	
   

  	
   

  	
  Karen Higginbotham

  

 

Space above Line Reserved For Recorder’s Use [Space from top of page to
this line must be 3 inches]

 

	
  1.

  	
   

  	
  Title of Document:

  	
  Deed of Trust with Assignment
  of Rents, Security Agreement and Fixture Filing

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Date of Document:

  	
  January 31, 2005

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Grantor:

  	
  HGI – St. Jo

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Grantee:

  	
  Bank of America, N.A., as
  Administrative Agent

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Statutory Mailing Address(es):

  	
  Grantor:

  
	
   

  	
   

  	
   

  	
  c/o Herbst Gaming, Inc.

  
	
   

  	
   

  	
   

  	
  5195 Las Vegas Blvd.

  
	
   

  	
   

  	
   

  	
  Las Vegas, NV 89119

  
	
   

  	
   

  	
   

  	
  Attn: M. Higgins

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Grantee:

  
	
   

  	
   

  	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  	
   

  	
  Mail Code: TX1-492-14-11

  
	
   

  	
   

  	
   

  	
  Bank of America Plaza

  
	
   

  	
   

  	
   

  	
  901 Main Street, 14th
  Floor

  
	
   

  	
   

  	
   

  	
  Dallas, TX 75202-3714

  
	
   

  	
   

  	
   

  	
  Attn: Chris M. Levine,
  Assistant Vice President

  Agency Management Officer II

  GCIB Agency Management Central I

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Legal description:

  	
  See Exhibit A
  annexed to the document

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Reference(s) to Book(s) and
  Page(s):

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Prepared by and following
  recording return to:

  	
   

  
	
   

  	
   

  	
   

  	
  Sheppard, Mullin,
  Richter & Hampton LLP

  
	
   

  	
   

  	
   

  	
  333 South Hope Street, 48th
  Floor

  
	
   

  	
   

  	
   

  	
  Los Angeles, California 90071

  
	
   

  	
   

  	
   

  	
  Attn: William M. Scott
  IV, Esq.

  
							

 

 

THIS INSTRUMENT SECURES FUTURE ADVANCES AND/OR FUTURE OBLIGATIONS
WITHIN THE MEANING OF MISSOURI REVISED STATUTES §443.055, AS AMENDED, THE TOTAL
PRINCIPAL AMOUNT OF WHICH SHALL NOT EXCEED $275,000,000.00 PLUS FUTURE ADVANCES
AND/OR FUTURE OBLIGATIONS MADE OR INCURRED FOR THE REASONABLE PROTECTION OF THE
SECURITY OR TO ENABLE COMPLETION OF A CONTEMPLATED IMPROVEMENT, ALL AS
CONTEMPLATED BY SUBSECTION 3 OF SAID §443.055, AND THIS INSTRUMENT IS TO
BE COVERED BY SAID §443.055.

 

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

Sheppard, Mullin,
Richter & Hampton LLP 

333 South Hope Street, 48th Floor

Los Angeles, CA 90071-1448

Attn: William M.
Scott IV, Esq.

 

THIS
SPACE ABOVE FOR RECORDER’S USE

 

DEED OF TRUST

with Assignment of Rents, Security Agreement and

Fixture Filing

 

The parties to this Deed of Trust with Assignment of
Rents, Security Agreement and Fixture Filing (“Deed of Trust”), dated as of January 31,
2005, are HGI – ST. JO, a Nevada corporation (“Trustor”), as trustor, TODD W.
GRIFFEE, ESQ., as trustee (“Trustee”), and BANK OF AMERICA, N.A., as “Administrative
Agent” for the “Lenders” including, without limitation, “the Swing Line Lender”
(as each of those three terms is defined in the Credit Agreement), as
beneficiary and secured party (“Beneficiary”). Capitalized terms used and not
otherwise defined herein shall have the meanings given to them in that certain
Amended and Restated Credit Agreement, dated as of October 8, 2004 (as
amended, extended, renewed, modified or supplemented from time to time, the “Credit
Agreement”) by and among Herbst Gaming, Inc., a Nevada corporation (“Borrower”),
each lender whose name is set forth on the signature pages therein and
each lender that may hereafter become a party to the Credit Agreement pursuant
to Section 10.06 therein (each a “Lender” and collectively, the “Lenders”),
Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C
Issuer. The Credit Agreement initially provided for Revolving Loans in the
aggregate principal amount of $175,000,000. Concurrently herewith, the Credit
Agreement is being amended by a Term Joinder Agreement pursuant to which Term
Loans in the aggregate principal amount of $100,000,000 are being extended to
the Borrower in addition to such Revolving Loans, for an aggregate credit
facility of $275,000,000.

 

The lenders party to the Credit Agreement as of the
date of this Deed of Trust are listed on Exhibit B.

 

2

 

1.             Grant in Trust and Secured Obligations.

 

1.1           Grant in Trust. For the purpose of securing payment and performance
of the Secured Obligations defined and described in Section 1.2,
Trustor hereby irrevocably and unconditionally grants and sells, mortgages,
warrants, conveys, confirms, assigns and sets over unto Trustee, in trust for
the benefit of Beneficiary, with power of sale and right of entry and
possession, all estate, right, title and interest which Trustor now has or may
later acquire in and to the following property (all or any part of such
property, or any interest in all or any part of it, as the context may require,
the “Property”):

 

(a)           The real property located in the County of Buchanan
(the “County”), State of Missouri, as described in Exhibit A,
together with all existing and future easements and rights affording access to
it (the “Land”); together with

 

(b)           The decommissioned vessel located in the man-made moat
on the Land, and all other buildings, structures and improvements now located
or later to be constructed on the Land, including, without limitation, all
parking areas, roads, driveways, walks, fences, walls, docks, berms,
landscaping, recreation facilities, drainage facilities, lighting facilities
and other site improvements (the “Improvements”); together with

 

(c)           All existing and future appurtenances, privileges,
easements, franchises, hereditaments and tenements of the Land, including all
minerals, oil, gas, other hydrocarbons and associated substances, sulphur,
nitrogen, carbon dioxide, helium and other commercially valuable substances
which may be in, under or produced from any part of the Land, all development
rights and credits, air rights, water, water courses, water rights (whether
riparian, appropriative or otherwise, and whether or not appurtenant), water stock
and water permits (together with the statutory right to file applications to
change, and any and all applications to change the same), including any water
permits, easements, rights of way, rights of ingress and egress, drainage
rights, gores or strips of land, any land lying in the streets, highways, ways,
sidewalks, alleys, passages, roads or avenues, open or proposed, in front of or
adjoining the Land and Improvements, any land in the bed of any body of water
adjacent to the Land, any land adjoining the Land created by artificial means
or by accretion, all air space and rights to use such air space, and all
development and similar rights; together with

 

(d)           Subject to Article 2, below, all existing
and future leases, subleases, subtenancies, licenses (except for gaming
licenses and liquor licenses that are not transferable), occupancy agreements,
concessions and any other agreement devising any portion of the Property or
relating to the use and enjoyment of all or any part of the Land and Improvements,
and any and all guaranties and other agreements relating to or made in
connection with any of the foregoing, whether written or oral and whether in
existence at or upon the recordation of this Deed of Trust or entered into
after the recordation of this Deed of Trust (some or all collectively, as the
context may require, “Leases”), and all rents, security deposits, royalties,
issues, profits, receipts, earnings, revenue, income, products and proceeds and
other benefits of the Land and Improvements, whether now due, past due or to
become due, including, without

 

3

 

limitation,
all prepaid rents, security deposits, fixed, additional and contingent rents,
deficiency rents and liquidated damages, license fees, occupancy charges, hotel
room charges, cabana charges, casino revenues, show ticket revenues, food and
beverage revenues, room service revenues, merchandise sales revenues, parking,
maintenance, common area, tax, insurance, utility and service charges and contributions,
proceeds of sale of electricity, gas, heating, air-conditioning, cable and
other utilities and services, green fees, cart rental fees, instruction fees,
membership charges, restaurant, snack bar and pro shop revenues, liquidated
damages, and all other rights to payments, together with and any and all
guaranties and other agreements relating to or made in connection with any of
such leases (some or all collectively, as the context may require, “Rents”);
together with

 

(e)           All goods, materials, supplies, chattels, furniture,
fixtures, equipment, machinery and other property now or later to be attached
to, placed in or on, or used in connection with the use, enjoyment, occupancy
or operation of all or any part of the Land and Improvements, whether stored on
the Land or elsewhere, including all pumping plants, engines, pipes, ditches
and flumes, and also all gas, electric, cooking, heating, cooling, air
conditioning, lighting, refrigeration and plumbing fixtures and equipment, all
water, sanitary and storm sewer, drainage, electricity, steam, gas, telephone,
cable and other utility equipment and facilities, all plumbing, lighting,
heating, ventilating, air conditioning, refrigerating, incinerating,
compacting, fire protection and sprinkler, surveillance and security, vacuum
cleaning, public address and communications equipment and systems, all kitchen
and laundry appliances, screens, awnings, floor coverings, partitions,
elevators, escalators, motors, machinery, pipes, fittings and other items of
equipment and property of every kind and description, all of which shall be
considered to the fullest extent of the law to be real property for purposes of
this Deed of Trust (it being agreed that, if the lien of this Deed of Trust
shall be subject to a conditional bill of sale, chattel mortgage, or other
security interest covering any such property, then all the right, title and
interest of Trustor in and to such property, together with the benefits of any
deposits or payments now or hereafter made thereon, are and shall be covered by
the lien of this Deed of Trust); together with

 

(f)            All building materials, equipment, work in process or
other personal property of any kind, whether stored on the Land or elsewhere,
which have been or later will be acquired for the purpose of being delivered
to, incorporated into or installed in or about the Land or Improvements;
together with

 

(g)           All rights to the payment of money, accounts, accounts
receivable, reserves, deferred payments, refunds, cost savings, payments and
deposits, room revenues, food revenues, beverage revenues and casino revenues,
whether now or later to be received from third parties (including all earnest
money sales deposits) or deposited by Trustor with third parties (including all
utility deposits), contract rights, development and use rights, governmental
permits and licenses (except for gaming licenses and liquor licenses that are
not transferable), authorizations, certificates, variances, consents and
approvals, applications, architectural and engineering plans, specifications
and drawings, as-built drawings, guaranties, warranties, management agreements,
operating and/or licensing agreements, supply and service contracts for water,
sanitary and storm sewer,

 

4

 

drainage,
electricity, steam, gas, telephone, cable, satellite, and other utilities,
property and title insurance policies and proceeds thereof (including without
limitation the right to assert, prosecute and settle claims under such
policies), chattel paper, instruments, documents, notes, certificates of
deposit, securities, other investments, drafts and letters of credit (other
than letters of credit in favor of Beneficiary), which arise from or relate to
construction on the Land or to any business now or later to be conducted on it,
or to the Land and Improvements generally; together with

 

(h)           All proceeds, including all rights and claims to,
dividends of and demands for them, of the voluntary or involuntary conversion
of any of the Land, Improvements or the other property described above into
cash or liquidated claims, including proceeds of all present and future fire,
hazard or casualty insurance policies (whether or not any such insurance policy
is required by this Deed of Trust or any other Loan Document) and all
condemnation awards or payments now or later to be made by any public body or
decree by any court of competent jurisdiction for any taking or in connection
with any condemnation or eminent domain proceeding, and all causes of action and
their proceeds for any damage or injury to the Land, Improvements or the other
property described above or any part of them, or breach of warranty in
connection with the construction of the Improvements, including causes of
action arising in tort, contract, fraud or concealment of a material fact;
together with

 

(i)            All books and records pertaining to any and all of the
property described above, including computer readable memory and any computer
hardware or software necessary to access and process such memory (“Books and
Records”); together with

 

(j)            All proceeds of, additions and accretions to,
substitutions and replacements for, changes in, and greater right, title and
interest in, to and under or derived from, any of the property described above
and all extensions, improvements, betterments, renewals, substitutions and
replacements thereof and additions and appurtenances thereto, including all
proceeds of any voluntary or involuntary disposition or claim, right and remedy
respecting any such property (arising out of any judgment, condemnation or
award, or otherwise arising) and all goods, documents, general intangibles,
chattel paper and accounts, wherever located, acquired with cash proceeds of
any of the foregoing or its proceeds.

 

Notwithstanding the foregoing, the term “Property,” as
used in this Deed of Trust, shall not include (i) any personal property or
fixtures, the purchase of which was financed by a purchase money security
interest, including any capital lease obligation, permitted under the Credit
Agreement to the extent that the documents creating such purchase money
security interest or capital lease prohibit the granting thereon, but only for
so long as the related indebtedness remains outstanding, (ii) any capital
stock or other equity interests in any gaming licenses, and (iii) any
gaming licenses and liquor licenses which are not transferable.

 

Trustor shall and will warrant and forever defend the
Property in the quiet and peaceable possession of the Trustee, its successors
and assigns against all and every Person or Persons

 

5

 

lawfully claiming or to
claim the whole or any part thereof. Trustor agrees that any greater title to
the Property hereafter acquired by Trustor during the term hereof shall be
subject hereto.

 

1.2           Secured Obligations.

 

1.2.1        Trustor makes the grant, bargain, conveyance, sale,
transfer and assignment set forth in Section 1.1 and grants the security
interest set forth in Article 3 for the purpose of securing the following
obligations (collectively, the “Secured Obligations”) in any order of priority
that Beneficiary may choose:

 

(a)           Except as specified in Section 1.2.2 below, the
payment and performance of each obligation of Trustor pursuant to that certain
Guaranty (as amended as of the date hereof, the “Guaranty”), dated June 10,
2004, entered into by Trustor in favor of Beneficiary pursuant to that
Instrument of Joinder to Guaranty dated as of October 8, 2004. The
Guaranty has been entered into by Trustor to, among other things, guaranty the
payment and performance of all obligations of Borrower to Beneficiary under the
Credit Agreement and all related Loan Documents, pursuant to which the Lenders
have extended or have agreed to extend to the Borrower certain secured revolving
and term credit facilities, presently in the aggregate principal amount of
$275,000,000 (the “Commitment”), including, but not limited to the payment of
all amounts owing under the Swing Line, the payment of all amounts owing with
respect to the Letters of Credit, including without limitation unreimbursed
drawings and obligations to furnish cash collateral as provided in the Credit
Agreement, and the payment of all amounts owing under any and all Secured Swap
Contracts entered into by the Borrower with any Lender or Affiliate thereof;

 

(b)           The payment and performance of all future advances and
other obligations that Trustor or any other Person or entity may owe to
Beneficiary and/or any Lender (whether as principal, surety or guarantor), when
a writing evidences Trustor’s and Beneficiary’s agreement that such advances or
obligations be secured by this Deed of Trust;

 

(c)           The payment and performance of all obligations of
Trustor under this Deed of Trust;

 

(d)           The payment and performance of all modifications,
amendments, extensions and renewals, however evidenced, of any of the Secured
Obligations described in clause (a), (b) or (c) above.

 

1.2.2        Notwithstanding any provision of this Deed of Trust or
any other Loan Document, the obligations and liability of Trustor, any Borrower
or any other Person arising under Sections 5.09 and/or 10.04 of
the Credit Agreement (and/or under any separate agreement relating to Hazardous
Materials which states that it is not secured by real property) are not and
shall not be Secured Obligations under this Deed of Trust.

 

1.2.3        All Persons who may have or acquire an interest in all
or any part of the Property will be considered to have notice of, and will be
bound by, the terms of the Secured Obligations and each other agreement or
instrument made or entered into in connection

 

6

 

with each of the Secured Obligations. Such terms include any provisions
in the Credit Agreement or the other Loan Documents which permit borrowing,
repayment and reborrowing, or which provide that the interest rate on one or
more of the Secured Obligations may vary from time to time.

 

1.2.4        In addition to the indebtedness evidenced by the
Guaranty and all other Secured Obligations, this Deed of Trust, to the fullest
extent permitted by the Laws of the State of Missouri, shall secure also and
constitute a Lien on the Property for all future advances made by the
Beneficiary to Borrower and future obligations incurred by Borrower to
Beneficiary in connection with the Property to the same extent as if such
future advances were made or such future obligations incurred on the date of
the execution of this Deed of Trust. The total amount of the indebtedness that
may be secured by this Deed of Trust shall not exceed a maximum principal
amount equal to $275,000,000.00 plus future advances and/or future obligations
made or incurred for the reasonable protection of the security or to enable
completion of a contemplated improvement, all as contemplated by Subsection 3
of §443.055, Missouri Revised Statutes, and this instrument is to be governed
by said §443.055.

 

2.             Assignment of Rents and Leases.

 

2.1           Assignment. Trustor hereby irrevocably, absolutely, presently
and unconditionally assigns, transfers and sets over to Beneficiary all of the
right, title and interest which Trustor now has or may later acquire in and to
the Rents and the Leases, and confers upon Beneficiary the right to collect
such Rents and enforce the provisions of the Leases with or without taking possession
of the Property. This is an absolute assignment, not an assignment for security
only.

 

2.2           Grant of License. Beneficiary hereby confers upon Trustor a license (“License”)
to collect and retain the Rents as they become due and payable, so long as no Event
of Default, as defined in Section 6.2, shall exist and be
continuing. If an Event of Default has occurred and is continuing, Beneficiary
shall have the right, which it may choose to exercise in its absolute
discretion, to terminate this License without notice to or demand upon Trustor,
and without regard to the adequacy of Beneficiary’s security under this Deed of
Trust.

 

2.3           Collection and Application of Rents. Subject to the License granted to
Trustor under Section 2.2, Beneficiary has the right, power and
authority to collect any and all Rents and exercise Trustor’s right, title and
interest under the Leases. Trustor hereby appoints Beneficiary its attorney-in-fact
to perform any and all of the following acts, if and at the times when
Beneficiary in its absolute discretion may so choose:

 

(a)           Demand, receive and enforce payment of any and all
Rents and any other right, title and interest of Trustor under the Leases; or

 

(b)           Give receipts, releases and satisfactions for any and
all Rents and any other obligations and duties under the Leases; or

 

(c)           Sue either in the name of Trustor or in the name of
Beneficiary for any and all Rents and to enforce any other obligations and
duties under the Leases.

 

7

 

Beneficiary’s right to the Rents and the Leases does
not depend on whether or not Beneficiary takes possession of the Property as
permitted under Section 6.3.3. In Beneficiary’s absolute
discretion, Beneficiary may choose to collect Rents and exercise the right,
title and interest of Trustor under the Leases either with or without taking
possession of the Property. Beneficiary shall apply all Rents collected by it
in the manner provided under Section 6.6. If an Event of Default
shall have occurred and Beneficiary is in possession of all or part of the
Property and is collecting and applying Rents and exercising any right, title
and interest of Trustor under the Leases as permitted under this Deed of Trust,
then Beneficiary, Trustee and any receiver shall nevertheless be entitled to
exercise and invoke every right and remedy afforded any of them under this Deed
of Trust and at law and in equity, including the right to exercise the power of
sale granted under Section 1.1 and Section 6.3.7.

 

2.4           Beneficiary Not Responsible. Under no circumstances shall
Beneficiary have any duty to produce Rents from the Property or maintain the
Leases. Regardless of whether or not Beneficiary, in Person or by agent, takes
actual possession of the Land and Improvements, Beneficiary is not and shall
not be deemed to be:

 

(a)           a “mortgagee in possession” for any purpose; or

 

(b)           responsible for performing any of the obligations
under any Lease; or

 

(c)           responsible for any waste committed by lessees or any
other parties, any dangerous or defective condition of the Property, or any
negligence in the management, upkeep, repair or control of the Property; or

 

(d)           liable in any manner for the Property or the use,
occupancy, enjoyment or operation of all or any part of it.

 

Notwithstanding the foregoing, this Section 2.4
shall not be construed as a waiver of any liability of Beneficiary to Trustor
that would otherwise exist as a result of Beneficiary’s gross negligence or
willful misconduct.

 

2.5           Leasing. Without Beneficiary’s prior written consent, Trustor
shall not accept any deposit or prepayment of Rents for any period exceeding
one (1) month, and Trustor shall not lease the Property or any part of it
except strictly in accordance with the Loan Documents. Trustor shall not apply
any Rents in any manner prohibited by the Loan Documents.

 

3.             Grant of Security Interest.

 

3.1           Security Agreement. The parties intend for this Deed of Trust to create
a lien on and security interest in the Property, and an absolute assignment of
the Rents and the Leases, all in favor of Beneficiary. The parties acknowledge
that some of the Property and some of the Rents and Leases may be determined
under applicable law to be personal property or fixtures. To the extent such
Property, Rents or Leases constitute personal property, Trustor, as debtor,
hereby grants to Beneficiary, as secured party, a security interest in all such
Property, Rents and Leases, to secure payment and performance of the Secured
Obligations, and Trustor,

 

8

 

as debtor, also has granted a security interest in such Property, Rents
and Leases pursuant to that certain Amended and Restated Security Agreement
dated October 8, 2004, executed by the Borrower and each of its
Subsidiaries, as debtor, in favor of Beneficiary, as secured party, as modified
from time to time. This Deed of Trust constitutes a security agreement under
the Missouri Uniform Commercial Code, as amended or recodified from time to
time, covering all such Property, Rents and Leases. To the extent any revenues
generated in connection with the operation of the Property from time to time
are not real property encumbered by the lien created by Section 1.1,
above, and are not absolutely assigned by the assignment set forth in Section 2.1,
above, it is the intention of the parties that such revenues shall constitute “proceeds,
products, offspring, rents or profits” (as defined in and for the purposes of Section 552(b) of
the United States Bankruptcy Code, as such section may be modified or
supplemented) of the Land and Improvements, and/or “fees, charges, accounts, or
other payments for the use or occupancy of rooms and other public facilities in
hotels, motels or other lodging properties,” as applicable (as such terms are
defined in and for the purpose of Section 552(b) of the United States
Bankruptcy Code, as such Section may be modified or supplemented).

 

3.2           Financing Statements. Trustor consents to the filing by Beneficiary of one
or more financing statements and such other documents as Beneficiary may from
time to time require to perfect or continue the perfection of Beneficiary’s
security interest in any Property, Rents or Leases. As provided in Section 5.11,
Trustor shall pay all fees and costs that Beneficiary may incur in filing such
documents in public offices and in obtaining such record searches as
Beneficiary may reasonably require. If Trustor fails to execute any financing
statements or other documents for the perfection or continuation of any
security interest, Trustor hereby appoints Beneficiary as its true and lawful
attorney-in-fact (which appointment is irrevocable and coupled with an
interest) to execute any such documents on its behalf. If any financing
statement or other document is filed in the records normally pertaining to personal
property, that filing shall never be construed as in any way derogating from or
impairing this Deed of Trust or the rights or obligations of the parties under
it.

 

4.             Fixture Filing. This Deed of Trust constitutes a financing statement
filed as a fixture filing under the Missouri Uniform Commercial Code, as
amended or recodified from time to time, covering any Property which now is or
later may become fixtures attached to the Land or Improvements. In connection
therewith, the addresses of Trustor, as debtor, and Beneficiary, as secured
party, are as set forth in Section 8.11, below. The foregoing
address of Beneficiary, as secured party, is also the address from which
information concerning the security interest may be obtained by any interested
party. The property subject to this fixture filing is described in Section 1.1,
above. Portions of the property subject to this fixture filing as identified in
this Section are or are to become fixtures related to the real estate
described in Exhibit A attached hereto.

 

5.             Rights and Duties of the Parties.

 

5.1           Representations and Warranties. Trustor represents and warrants that,
except as previously disclosed to Beneficiary in a writing making reference to
this Section 5.1:

 

(a)           Trustor lawfully possesses and holds fee simple title
to all of the Land and Improvements thereon and has or will have good title to
all Property (other than

 

9

 

personal
property utilized by Trustor under such equipment leases and similar financing
arrangements as were disclosed to Beneficiary in writing prior to the execution
of this Deed of Trust or as are hereafter entered into by Trustor in accordance
with the Credit Agreement);

 

(b)           Trustor has the full and unlimited power, right and authority
to encumber the Property and assign the Rents and the Leases;

 

(c)           This Deed of Trust creates a first and prior lien on
and security interest in the Property;

 

(d)           The Property includes all property and rights which
may be reasonably necessary to promote the present beneficial use and enjoyment
of the Land and Improvements;

 

(e)           Trustor owns any Property which is personal property
free and clear of any security agreements, reservations of title or conditional
sales contracts, and there is no financing statement affecting such personal
property on file in any public office (other than personal property utilized by
Trustor under such equipment leases and similar financing arrangements as were
disclosed to Beneficiary in writing prior to the execution of this Deed of
Trust or as are hereafter entered into by Trustor in accordance with the Credit
Agreement);

 

(f)            Trustor’s place of business, or its chief executive
office if it has more than one place of business, is located at the address
specified below; and

 

(g)           The Property is located in an area having or
identified as having special flood hazards or any similar designation under the
National Flood Insurance Act of 1968, as amended or recodified from time to
time, or the Flood Disaster Protection Act of 1973, as amended or recodified
from time to time.

 

5.2           Taxes and Assessments. Trustor shall pay prior to delinquency all taxes,
levies, charges and assessments, including assessments on appurtenant water
stock, imposed by any public or quasi-public authority or utility company which
are (or if not paid, may become) a lien on or security interest in all or part
of the Property or any interest in it, or which may cause any decrease in the
value of the Property or any part of it. If any such taxes, levies, charges or
assessments become delinquent, Beneficiary may require Trustor to present
evidence that they have been paid in full, on ten (10) days’ written
notice by Beneficiary to Trustor. This Section 5.2 is subject to
the right granted in Section 5.11 of the Credit Agreement to
contest in good faith certain taxes, assessments, charges and levies.

 

5.3           Performance of Secured Obligations. Trustor shall promptly pay and perform
each Secured Obligation in accordance with its terms.

 

5.4           Liens, Charges and Encumbrances. Trustor shall immediately discharge any
lien on or security interest in the Property to which Beneficiary has not
consented in writing. Subject to any applicable rights to contest set forth in
the Credit Agreement, Trustor shall pay, prior to delinquency, each obligation
secured by or reducible to a lien, security interest, charge or

 

10

 

encumbrance which now does or later may encumber or appear to encumber
all or part of the Property or any interest in it, whether the lien, security
interest, charge or encumbrance is or would be senior or subordinate to this
Deed of Trust.

 

5.5           Damages and Insurance and Condemnation Proceeds.

 

5.5.1        Trustor hereby absolutely and irrevocably assigns to
Beneficiary, and authorizes the payor to pay to Beneficiary, the following
claims, causes of action, awards, payments and rights to payment:

 

(a)           All awards of damages and all other compensation
payable directly or indirectly because of a condemnation, proposed condemnation
or taking for public or private use which affects all or part of the Property
or any interest in it; and

 

(b)           All other awards, claims and causes of action, arising
out of any warranty affecting all or any part of the Property, or for damage or
injury to or decrease in value of all or part of the Property or any interest
in it; and

 

(c)           All proceeds of any insurance policies payable because
of loss sustained to all or part of the Property; and

 

(d)           All interest which may accrue on any of the foregoing.

 

5.5.2        Trustor shall immediately notify Beneficiary in
writing if:

 

(a)           Any damage occurs or any injury or loss is sustained
in the amount of $250,000 or more to all or part of the Property, or any action
or proceeding relating to any such damage, injury or loss is commenced; or

 

(b)           Any offer is made, or any action or proceeding is
commenced, which relates to any actual or proposed condemnation or taking of
all or part of the Property.

 

5.5.3        If Beneficiary chooses to do so, Beneficiary may in
its own name appear in or prosecute any action or proceeding to enforce any
cause of action based on warranty, or for damage, injury or loss to all or part
of the Property and, while any Event of Default remains uncured, Beneficiary
may make any compromise or settlement of the action or proceeding. Beneficiary,
if it so chooses, may participate in any action or proceeding relating to
condemnation or taking of all or part of the Property, and may join Trustor in
adjusting any loss covered by insurance. Trustor hereby irrevocably appoints
Beneficiary its true and lawful attorney-in-fact for all such purposes. The
power of attorney granted hereunder is coupled with an interest and is
irrevocable. Trustor shall not settle, adjust or compromise any such action or
proceeding without the prior written approval of Beneficiary, which shall not
be unreasonably withheld or delayed.

 

5.5.4        All proceeds of these assigned claims, other property
and rights which Trustor may receive or be entitled to (collectively, “Proceeds”)
shall be paid to Beneficiary. In each instance, Beneficiary shall apply such
Proceeds first toward reimbursement

 

11

 

of all of Beneficiary’s costs and expenses of recovering the Proceeds,
including attorneys’ fees. If, in any instance, each and all of the following
conditions (the “Restoration Conditions”) are satisfied in Beneficiary’s
reasonable judgment, Beneficiary shall permit Trustor to use the balance of
such Proceeds (“Net Claims Proceeds”) to pay costs of repairing or
reconstructing the Property in the manner described below:

 

(a)           The plans and specifications, cost breakdown,
construction contract, construction schedule, contractor and payment and
performance bond for the work of repair or reconstruction must all be
reasonably acceptable to Beneficiary; and

 

(b)           Beneficiary must receive evidence reasonably
satisfactory to it that, after repair or reconstruction, the Property will be
at least as valuable as it was immediately before the damage or condemnation
occurred; and

 

(c)           The Net Claims Proceeds must be sufficient in
Beneficiary’s reasonable determination to pay for the total cost of repair or
reconstruction, including all associated development costs and interest
projected to be payable on the Secured Obligations until the repair or
reconstruction is complete; or Trustor must provide its own funds in an amount
equal to the difference between the Net Claims Proceeds and a reasonable
estimate, made by Trustor and found acceptable by Beneficiary, of the total cost
of repair or reconstruction; and

 

(d)           No Event of Default shall have occurred and be
continuing.

 

If Beneficiary finds that such conditions have been
met, Beneficiary shall hold the Net Claims Proceeds and any funds which Trustor
is required to provide in an interest-bearing passbook savings account and
shall disburse them to Trustor on a monthly basis in accordance with
Beneficiary’s customary construction lending procedures. However, if an Event
of Default has occurred and is continuing, Beneficiary may apply the Net Claims
Proceeds to pay or prepay (without premium) some or all of the Secured
Obligations in such order and proportions as Beneficiary in its absolute
discretion may choose (subject to the provisions for priority of application of
payments set forth in the Credit Agreement). Any and all Proceeds (including,
without limitation, any Net Claims Proceeds) held by Beneficiary from time to
time shall be collateral for the Secured Obligations, and Trustor hereby grants
to Beneficiary a security interest in and lien on such Proceeds and all rights
and remedies available under applicable laws with respect to such Proceeds,
including, without limitation, all rights and remedies under the Missouri
Uniform Commercial Code. Trustor shall execute and deliver to Beneficiary and
the Lenders any and all documents reasonably requested by Beneficiary in order
to confirm, create and perfect such security interest in and lien on such
Proceeds. In the event that any Proceeds are applied to pay any Secured
Obligations, then Beneficiary shall have no obligation to disburse or release
such applied Proceeds to Trustor under this Section 5.5. If no
Event of Default shall have occurred and be continuing, any funds remaining
upon completion of the repair or reconstruction shall be returned to Trustor.

 

5.5.5        Trustor hereby specifically, unconditionally and
irrevocably waives all rights of a property owner granted under applicable law,
which provide for allocation of condemnation proceeds between a property owner
and a lienholder, and any other law or

 

12

 

successor statute of similar import. Trustor hereby specifically,
unconditionally and irrevocably waives all right to recover against Beneficiary
or any Lender (or any officer, employee, agent or representative of Beneficiary
or any Lender) for any loss incurred by Trustor from any cause insured against
or required by any Loan Document to be insured against; provided, however, that
this waiver of subrogation shall not be effective with respect to any insurance
policy if the coverage thereunder would be materially reduced or impaired as a
result.

 

5.5.6        Notwithstanding anything to the contrary set forth in
this Section 5.5, so long as no Event of Default remains uncured,
the proceeds of any casualty or condemnation for which the gross value of the
applicable damage and/or taking is less than $250,000 shall be paid to Trustor
rather than to Beneficiary (and shall be delivered to Trustor if received by
Beneficiary), and Trustor shall not be required to obtain Beneficiary’s consent
to settle, adjust or compromise any action or proceeding relating to any such
casualty or condemnation (nor shall Beneficiary be entitled to participate in
such action or proceeding).

 

5.6           Maintenance and Preservation of Property.

 

5.6.1        Except as permitted in the Credit Agreement, Trustor
shall not remove or demolish the Property or any part of it, or alter, restore
or add to the Property, or initiate or allow any change in any zoning or other
land use classification which affects the Property or any part of it, except as
permitted or required by the Credit Agreement or with Beneficiary’s express
prior written consent in each instance; provided that, without Beneficiary’s
consent, Trustor shall be entitled to remove personal property in the ordinary
course of Trustor’s business so long as any such personal property is replaced
with property of comparable value.

 

5.6.2        If all or part of the Property becomes damaged or
destroyed, Trustor shall promptly and completely repair and/or restore the
Property in a good and workmanlike manner in accordance with sound building
practices, regardless of whether or not Beneficiary agrees to disburse
insurance proceeds or other sums to pay costs of the work of repair or reconstruction
under Section 5.5.

 

5.6.3        Trustor shall not commit or allow any act upon or use
of the Property which would violate: (i) any applicable law or order of
any Governmental Agency, whether now existing or later to be enacted and
whether foreseen or unforeseen (except to the extent that noncompliance would
not cause a Material Adverse Effect or a License Revocation); or (ii) any
public or private covenant, condition, restriction or equitable servitude
affecting the Property. Trustor shall not bring or keep any article on the
Property or cause or allow any condition to exist on it, that could invalidate
or would be prohibited by any insurance coverage required to be maintained by
Trustor on the Property or any part of it under this Deed of Trust.

 

5.6.4        Trustor shall not commit or allow waste of the
Property.

 

5.6.5        Trustor shall perform all other acts which from the
character or use of the Property may be reasonably necessary to maintain and
preserve its value. Without limiting the generality of the forgoing, Trustor
shall protect and preserve all easements, rights-of-way and other appurtenances
to the Land and/or Improvements. Trustor shall not cause or allow any such
easement, right-of-way and other appurtenance to be cancelled, rejected or
otherwise terminated,

 

13

 

or modified (except for such terminations that occur pursuant to the
terms of such easement, right of way and other appurtenance).

 

5.7           Insurance.

 

5.7.1        Trustor shall maintain the following insurance with
respect to the Property:

 

(a)           Trustor shall provide, maintain and keep in force at
all times during any period of construction with respect to the portion of the
Property affected by such construction a policy or policies of builder’s “all
risk” insurance in nonreporting form in an amount not less than the full
insurable completed value of such portion of the Property on a replacement cost
basis. The policy or policies shall insure against loss or damage by hazards
customarily included within such “all risk” policies and any other risks or
hazards which Beneficiary may reasonably specify (and shall include boiler and
machinery insurance from and after the date on which any such equipment is
installed on the Property), and each shall contain a Lender’s Loss Payable
Endorsement (Form 438 BFU or equivalent) in favor of Beneficiary; provided
that Beneficiary shall not be entitled to require Trustor to insure the
Property against earthquake risks during any period in which earthquake
insurance is not available with respect to the Property at commercially
reasonable rates.

 

(b)           Trustor shall provide, maintain and keep in force at
all times for all portions of the Property not covered by a policy or policies
described in Section 5.7.1(a), above, a policy or policies of fire and
hazards “all risk” insurance providing extended coverage, in an amount not less
than the full insurable value of such portions of the Property on a replacement
cost basis. The policy or policies shall insure against loss or damage by
hazards customarily included within “all risk” and “extended coverage” policies
and any other risks or hazards which Beneficiary may reasonably specify (and
shall include boiler and machinery insurance), and each shall contain a Lender’s
Loss Payable Endorsement (Form 438 BFU or equivalent) in favor of
Beneficiary.

 

(c)           Trustor shall provide, maintain and keep in force at
all times for all portions of the Property any policy or policies of business
interruption insurance that Beneficiary reasonably requires (including
insurance against income loss during a period of at least six (6) months),
and each such policy shall contain a Lender’s Loss Payable Endorsement (Form 438
BFU or equivalent) in favor of Beneficiary.

 

(d)           Trustor shall provide, maintain and keep in force at
all times a policy or policies of comprehensive liability insurance naming
Beneficiary and the Lenders as additional insureds, on an “occurrence” basis,
against claims for “personal injury” liability, including bodily injury, death
or property damage liability, with a limit of not less than Thirty-Five Million
Dollars ($35,000,000) for the first sixty (60) days following the Term
Effective Date and not less than Fifty Million Dollars ($50,000,000)
thereafter. Such insurance shall be primary and noncontributory with any other
insurance carried by Beneficiary and/or any Lender(s).

 

14

 

(e)           Trustor shall provide, maintain and keep in force at
all times such policies of worker’s compensation insurance as may be required
by applicable laws (including employer’s liability insurance, if required by
Beneficiary), covering all employees of Trustor.

 

(f)            Trustor shall provide, maintain and keep in force at
all times any and all additional insurance that Beneficiary (as instructed by
the Requisite Lenders) may from time to time require, so long as such insurance
is available in the commercial market at reasonable rates.

 

(g)           If the Property is required to be insured pursuant to
the Flood Disaster Protection Act of 1973 or the National Flood Insurance Act
of 1968, and the regulations promulgated thereunder, because it is located in
an area which has been identified by the Secretary of Housing and Urban
Development as a Flood Hazard Area, then Trustor shall provide, maintain and
keep in force at all times a flood insurance policy covering the Property in
limits that would exceed the damage caused by what is expected to be the most
severe flood (or any greater limits to the extent required by applicable law from
time to time), containing a Lender’s Loss Payable Endorsement (Form 438
BFU or equivalent) in favor of Beneficiary.

 

(h)           The following notice is provided pursuant to Section 427.120,
RS.Mo. As used herein, the terms “you” and “your” shall refer to Trustor, and the terms “we and “us” shall refer to Beneficiary. UNLESS YOU PROVIDE
EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE MAY PURCHASE
INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS
INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE
PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE
AGAINST YOU IN CONNECTION WITH THE COLLATERAL. YOU MAY LATER CANCEL ANY
INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE
OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT. IF WE PURCHASE INSURANCE FOR
THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE,
INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE
IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF
THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE
MAYBE ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE
INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE YOU MAY BE ABLE
TO OBTAIN ON YOUR OWN.

 

5.7.2        All such policies of insurance shall be issued by
companies approved by Beneficiary having a minimum A.M. Best’s rating of
A-:IX. The limits, coverage, forms, deductibles, inception and expiration dates
and cancellation provisions of all such policies shall be reasonably acceptable
to Beneficiary. Each property insurance policy maintained in connection with
any of the Property shall contain a Lender’s Loss Payable Endorsement (Form

 

15

 

438 BFU or equivalent) in favor of Beneficiary, and shall provide that
all proceeds be payable to Beneficiary to the extent of its interest. Each
liability insurance policy maintained in connection with any of the Property
shall name Beneficiary and the Lenders as additional insureds. An approval by
Beneficiary is not, and shall not be deemed to be, a representation of the
solvency of any insurer or the sufficiency of any amount of insurance. Each
policy of insurance required hereunder shall provide that it may not be
modified or cancelled without at least thirty (30) days’ prior written notice
to Beneficiary (or ten (10) days’ prior written notice in the event of a
premium nonpayment), and shall permit a waiver of subrogation by Trustor in
favor of Beneficiary and the Lenders.

 

5.7.3        Trustor shall supply Beneficiary with certificates of
each policy required hereunder and any other policy of insurance maintained in
connection with any of the Property, together with an original (which may be a
duplicate original) or underlyer of each such policy and all endorsements
thereto. When any insurance policy required hereunder expires, Trustor shall
furnish Beneficiary with proof acceptable to Beneficiary that the policy has
been reinstated or a new policy issued, continuing in force the insurance
covered by the policy which expired. If Trustor fails to pay any such premium,
Beneficiary shall have the right, but not the obligation, to obtain current
coverage and advance funds to pay the premiums for it. Trustor shall repay
Beneficiary immediately on demand for any advance for such premiums, which
shall be considered to be an additional loan to Trustor bearing interest at the
Default Rate, and secured by this Deed of Trust and any other collateral held
by Beneficiary in connection with the Secured Obligations.

 

5.8           Trustee’s Acceptance of Trust. Trustee accepts this trust when this
Deed of Trust is recorded.

 

5.9           Releases, Extensions, Modifications and Additional
Security.

 

5.9.1        From time to time, Beneficiary and/or any Lender may
perform any of the following acts without incurring any liability or giving
notice to any Person, and without affecting the personal liability of any
Person for the payment of the Secured Obligations (except as provided below),
and without affecting the security hereof for the full amount of the Secured
Obligations on all Property remaining subject hereto, and without the necessity
that any sum representing the value of any portion of the Property affected by
Beneficiary’s and/or such Lender’s action(s) be credited on the Secured
Obligations:

 

(a)           Release any Person liable for payment of any Secured
Obligation;

 

(b)           Extend the time for payment, or otherwise alter the
terms of payment, of any Secured Obligation;

 

(c)           Accept additional real or personal property of any
kind as security for any Secured Obligation, whether evidenced by deeds of
trust, mortgages, security agreements or any other instruments of security; or

 

(d)           Alter, substitute or release any property securing the
Secured Obligations.

 

16

 

5.9.2        From time to time when requested to do so by
Beneficiary in writing, Trustee may perform any of the following acts without
incurring any liability or giving notice to any Person:

 

(a)           Consent to the making of any plat or map of the
Property or any part of it;

 

(b)           Join in granting any easement or creating any
restriction affecting the Property;

 

(c)           Join in any subordination or other agreement affecting
this Deed of Trust or the lien or security interest of it; or

 

(d)           Reconvey the Property or any part of it without any
warranty.

 

5.10         Reconveyance. Upon (a) the expiration or termination of the
Commitment, (b) the full and final payment in cash of the Loans and all
interest and fees with respect thereto, (c) the payment of all other
amounts then demanded by Beneficiary or any Lender or indemnitee and then owed
under the Credit Agreement, and (d) the payment of all other amounts then
due under the Guaranty and the other Loan Documents and the full payment and
performance of all other Secured Obligations (other than indemnity obligations,
if any, that are not then due), Beneficiary shall request Trustee in writing to
reconvey the Property, and shall surrender this Deed of Trust. When Trustee
receives Beneficiary’s written request for reconveyance and all fees and other
sums owing to Trustee by Trustor under Section 5.11, Trustee shall
reconvey the Property, or so much of it as is then held under this Deed of Trust,
without warranty, to the Person or Persons legally entitled to it. Such Person
or Persons shall pay any costs of recordation. In the reconveyance, the grantee
may be described as “the person or persons legally entitled thereto,” and the
recitals of any matters or facts shall be conclusive proof of their
truthfulness. Neither Beneficiary nor Trustee shall have any duty to determine
the rights of Persons claiming to be rightful grantees of any reconveyance.

 

5.11         Compensation, Exculpation, Indemnification.

 

5.11.1      Trustor agrees to pay reasonable fees as may be
charged by Beneficiary and Trustee, subject to the maximum amounts legally
permitted, for any services that Beneficiary or Trustee may render in
connection with this Deed of Trust, including Beneficiary’s providing a
statement of the Secured Obligations or Trustee’s rendering of services in
connection with a reconveyance. Trustor shall also pay or reimburse all of
Beneficiary’s and Trustee’s costs and expenses which may be incurred in
rendering any such services. Trustor further agrees to pay or reimburse
Beneficiary for all costs, expenses and other advances which may be incurred or
made by Beneficiary or Trustee in any efforts to enforce any terms of this Deed
of Trust, including any rights or remedies afforded to Beneficiary or Trustee
or both of them under Section 6.3, whether any lawsuit is filed or
not, or in defending any action or proceeding arising under or relating to this
Deed of Trust, including reasonable attorneys’ fees and other legal costs,
costs of any Foreclosure Sale (as defined in Section 6.3.8) and any
cost of evidence of title. If Beneficiary chooses to dispose of the Property
through more than one

 

17

 

Foreclosure Sale, Trustor shall pay all costs, expenses or other
advances that may be incurred or made by Trustee or Beneficiary in each of such
Foreclosure Sales.

 

5.11.2      Beneficiary shall not be directly or indirectly liable
to Trustor or any other Person as a consequence of any of the following:

 

(a)           Beneficiary’s exercise of, or failure to exercise, any
rights, remedies or powers granted to Beneficiary in this Deed of Trust;

 

(b)           Beneficiary’s failure or refusal to perform or
discharge any obligation or liability of Trustor under any agreement related to
the Property or under this Deed of Trust; or

 

(c)           Any loss sustained by Trustor or any third party
resulting from Beneficiary’s failure to lease or operate the Property, or from
any other act or omission of Beneficiary in managing the Property, after an
Event of Default, unless the loss is caused by the willful misconduct and bad
faith of Beneficiary.

 

Trustor hereby expressly waives and releases all
liability of the types described above, and agrees that no such liability shall
be asserted against or imposed upon Beneficiary.

 

5.11.3      Trustor agrees to indemnify Trustee, Beneficiary and
the Lenders (collectively, the “Indemnitees”) against and hold them harmless
from all losses, damages, liabilities, claims, causes of action, judgments,
court costs, reasonable attorneys’ fees and other reasonable legal expenses,
cost of evidence of title, cost of evidence of value, and other costs and
expenses which any of them may suffer or incur (except to the extent that any
of the foregoing are the result of the gross negligence or willful misconduct
of any such Indemnitee):

 

(a)           In performing any act required or permitted by this
Deed of Trust or any of the other Loan Documents or by law;

 

(b)           Because of any failure of Trustor to perform any of
Trustor’s obligations; or

 

(c)           Because of any alleged obligation of or undertaking by
Beneficiary to perform or discharge any of the representations, warranties,
conditions, covenants or other obligations in any document relating to the
Property other than the Loan Documents.

 

Each obligation or liability of Trustor to any
Indemnitee under this Section 5.11.3 shall survive the release and
cancellation of any or all of the Secured Obligations and the full or partial
release and/or reconveyance of this Deed of Trust.

 

5.11.4      Trustor shall pay all obligations to pay money arising
under this Section 5.11 within five (5) business days demand
by Beneficiary (or the applicable Indemnitee). Each such obligation shall bear
interest from the date the obligation arises at the Default Rate set forth in
the Credit Agreement, and any such obligation to a Lender shall be added to,
and considered to be part of, the principal of the Note in favor of such Lender
(and, in the event that

 

18

 

such Lender holds more than one Note, the allocation of such obligation
among such Notes shall be made by such Lender in its absolute discretion).

 

5.12         Defense and Notice of Claims and Actions. At Trustor’s sole expense, Trustor
shall protect, preserve and defend the Property and title to and right of
possession of the Property, and the security of this Deed of Trust and the
rights and powers of Beneficiary and Trustee created under it, against all
adverse claims. Trustor shall give Beneficiary and Trustee prompt notice in
writing if any claim is asserted which does or could affect any of such
matters, or if any action or proceeding is commenced which alleges or relates
to any such claim.

 

5.13         Substitution of Trustee. From time to time, Beneficiary may substitute a
successor to any Trustee named in or acting under this Deed of Trust in any
manner now or later to be provided at law, or by a written instrument executed
and acknowledged by Beneficiary and recorded in the office(s) of the
recorder(s) of the County. Any such instrument shall be conclusive proof of the
proper substitution of the successor Trustee, who shall automatically upon
recordation of the instrument succeed to all estate, title, rights, powers and
duties of the predecessor Trustee, without conveyance from it.

 

5.14         Subrogation. Subject to Gaming Laws, Beneficiary shall be
subrogated to the liens and security interests of all encumbrances, whether
released of record or not, which are discharged in whole or in part by
Beneficiary in accordance with this Deed of Trust or with the proceeds of any
loan secured by this Deed of Trust.

 

5.15         Site Visits, Observation and Testing. Beneficiary and its agents and
representatives shall have the right at any reasonable time to enter and visit
the Property for the purpose of performing appraisals. In addition, each Person
indemnified by the Borrower under Section 10.04 of the Credit
Agreement (collectively, “Indemnified Parties”) and their agents and
representatives shall have the right at any reasonable time to enter and visit
the Property for the purposes of observing the Property, taking and removing
soil or groundwater samples, and conducting tests on any part of the Property;
provided that, so long as no Event of Default remains uncured, the Indemnified
Parties shall not be entitled to conduct any tests that would significantly
interfere with the operation of the Property. The Indemnified Parties have no
duty, however, to visit or observe the Property or to conduct tests, and no
site visit, observation or testing by any Indemnified Party shall impose any
liability on any Indemnified Party. In no event shall any site visit,
observation or testing by any Indemnified Party be a representation that
Hazardous Materials are or are not present in, on, or under the Property, or
that there has been or shall be compliance with any Hazardous Materials Law, or
any other applicable Law. Neither Trustor nor any other party is entitled to
rely on any site visit, observation or testing by any Indemnified Party. The Indemnified
Parties owe no duty of care to protect Trustor or any other party against, or
to inform Trustor or any other party of, any Hazardous Material or any other
adverse condition affecting the Property. Any Indemnified Party shall give
Trustor reasonable notice before entering the Property. The Indemnified Party
shall make reasonable efforts to avoid interfering with Trustor’s use of the
Property in exercising any rights provided in this Section.

 

5.16         Notice of Change. Trustor shall give Beneficiary prior written notice
of (a) any change in the location of Trustor’s place of business or its chief
executive office if it has

 

19

 

more than one place of business, (b) any change in the location of
any of the Property, including the Books and Records, and (c) any change
to Trustor’s name or business structure. Unless otherwise approved by
Beneficiary in writing, all Property that consists of personal property (other
than the Books and Records) will be located on the Land and all Books and
Records for the portion of the Property owned by Trustor will be located at
such Trustor’s place of business or chief executive office if such Trustor has
more than one place of business.

 

5.17         Title Insurance. At any time and from time to time at the reasonable
request of Beneficiary, Trustor, at its sole cost and expense, shall deliver to
Beneficiary such additional title insurance indorsements and reinsurance issued
by title insurance companies, in form and substance and reasonably satisfactory
to Beneficiary, with respect to this Deed of Trust, including, without
limitation, CLTA 122 endorsements insuring that each advance is secured by this
Deed of Trust (without any exception not set forth in the policy of title
insurance insuring this Deed of Trust other than (i) liens for taxes and
assessments not yet due and payable and (ii) other encumbrances, approved
by the Beneficiary, insured to be subordinate to this Deed of Trust), and CLTA
101.4 endorsements insuring the priority of the Deed of Trust over any mechanic’s
lien; provided that Trustor shall not be obligated under this Section 5.17
to increase the stated amount of the policy of title insurance insuring this
Deed of Trust.

 

6.             Accelerating Transfers, Defaults and Remedies.

 

6.1           Accelerating Transfers.

 

6.1.1        “Accelerating Transfer” means any sale, contract to
sell, conveyance, encumbrance, lease, alienation or further encumbrance of all
or any material portion of the Property (or any interest in it) which is not
expressly permitted under the Credit Agreement, or any other transfer of all or
any material portion of the Property (or any interest in it), whether
voluntary, involuntary, by operation of law or otherwise, unless Beneficiary
has given its prior written consent to such “Accelerating Transfer,” which
consent may be given or not given in the absolute discretion of Beneficiary. If
Trustor is a corporation or limited liability company, “Accelerating Transfer”
also means any transfer of any share or shares in Trustor. If Trustor is a
partnership or limited liability company, “Accelerating Transfer” also means
withdrawal or removal of any general partner or manager, as the case may be,
dissolution of the partnership or limited liability company under Nevada law,
or any transfer of any partnership interest or any ownership interest in the
limited liability company.

 

6.1.2        Trustor acknowledges that Beneficiary and the Lenders
are making one or more advances under the Credit Agreement in reliance on the
expertise, skill and experience of Trustor; thus, the Secured Obligations
include material elements similar in nature to a personal service contract. In
consideration of Beneficiary’s reliance, Trustor agrees that Trustor shall not
make any Accelerating Transfer, unless the transfer is preceded by Beneficiary’s
written consent to the particular transaction and transferee. Beneficiary may
withhold such consent in its absolute discretion. If any Accelerating Transfer
occurs, Beneficiary may, in its absolute discretion (provided that it has
received any consents or approvals of any other Lenders required under the
Credit Agreement), declare all of the Secured Obligations to be immediately due
and payable, and Beneficiary and Trustee may invoke any rights and remedies
provided by Section 6.3 of this Deed of Trust.

 

20

 

6.2           Events of Default. Trustor will be in default under this Deed of Trust
upon the occurrence of any one or more of the following events (“Events of
Default”):

 

(a)           Trustor fails to perform any obligation to pay money
which arises under this Deed of Trust within two (2) Business Days after
written demand therefor; or

 

(b)           Trustor fails to perform any other obligation arising
under this Deed of Trust within ten (10) Business Days after the giving of
written notice by Beneficiary of such failure; or

 

(c)           Trustor shall give to Beneficiary any notice under the
provisions of Section 443.055 of the Revised Statutes of Missouri
concerning future advances; or

 

(d)           Any Event of Default (as defined in the Credit
Agreement or in any other Loan Document) occurs; or any other default occurs
under any of the Secured Obligations.

 

6.3           Remedies. At any time after and during the continuance of an
Event of Default (following the expiration of any applicable cure period) and
provided that Beneficiary has received any consents or approvals of any other
Lenders required under the Credit Agreement, Beneficiary and Trustee will be
entitled to invoke any or all of the following rights and remedies (subject to
any restrictions on those rights and remedies imposed by applicable Gaming
Laws), all of which will be cumulative, and the exercise of any one or more of
which shall not constitute an election of remedies:

 

6.3.1        Acceleration. Beneficiary may declare any or all of the Secured
Obligations to be due and payable immediately.

 

6.3.2        Receiver. Beneficiary may apply to any court of competent
jurisdiction for, and obtain appointment of, a receiver for the Property; and
Beneficiary may request, in connection with any foreclosure proceeding
hereunder, that the Missouri Gaming Commission petition a District Court of the
State of Missouri for the appointment of a supervisor to conduct the normal
gaming activities on the Property following such foreclosure proceeding.

 

6.3.3        Entry. Beneficiary, in person, by agent or by
court-appointed receiver, may enter, take possession of, manage and operate all
or any part of the Property, and may also do any and all other things in
connection with those actions that Beneficiary may in its absolute discretion
consider necessary and appropriate to protect the security of this Deed of
Trust. Such other things may include, without limitation: taking and possessing
all of Trustor’s or the then owner’s Books and Records; entering into,
enforcing, modifying, or cancelling Leases on such terms and conditions as
Beneficiary may consider proper; obtaining and evicting tenants; collecting and
receiving any payment of money owing to Trustor; completing construction;
and/or contracting for and making repairs and alterations. If Beneficiary so
requests, Trustor shall assemble all of the Property that has been removed from
the Land and make all of it available to Beneficiary at the site of the Land. Trustor
hereby irrevocably constitutes and appoints Beneficiary as Trustor’s attorney-in-fact
(which appointment is coupled with an interest) to perform such acts and
execute such documents as Beneficiary in its absolute discretion may consider
to be appropriate in connection with taking these measures, including
endorsement of

 

21

 

Trustor’s name on any instruments. Regardless of any provision of this
Deed of Trust or the Credit Agreement, Beneficiary shall not be considered to
have accepted any property other than cash or immediately available funds in
satisfaction of any obligation of Trustor to Beneficiary unless Beneficiary has
given express written notice of Beneficiary’s election of that remedy.

 

6.3.4        Cure; Protection of Security. Either Beneficiary or Trustee may cure
any breach or default of Trustor and, if it chooses to do so in connection with
any such cure, Beneficiary or Trustee may (subject to applicable Gaming Laws)
also enter the Property and/or do any and all other things which either may in
its absolute discretion consider necessary and appropriate to protect the
security of this Deed of Trust. Such other things may include, without
limitation: appearing in and/or defending any action or proceeding which
purports to affect the security of, or the rights or powers of Beneficiary or
Trustee under, this Deed of Trust; paying, purchasing, contesting or
compromising any encumbrance, charge, lien, security interest or claim of lien
or security interest which (in Beneficiary’s or Trustee’s sole judgment) is or
may be senior in priority to this Deed of Trust, such judgment of Beneficiary
or Trustee to be conclusive as among the parties to this Deed of Trust;
obtaining insurance and/or paying any premiums or charges for insurance
required to be carried under this Deed of Trust and the other Loan Documents;
otherwise caring for and protecting any and all of the Property; and/or
employing counsel, accountants, contractors and other appropriate Persons to
assist Beneficiary or Trustee. Beneficiary and Trustee may take any of the
actions permitted under this Section 6.3.4 either with or without
giving notice to any Person.

 

6.3.5        Uniform Commercial Code Remedies. Subject to applicable Gaming Laws,
Beneficiary may exercise any or all of the remedies granted to a secured party
under the Missouri Uniform Commercial Code, as amended or recodified from time
to time.

 

6.3.6        Judicial Action. Beneficiary may bring an action in any court of
competent jurisdiction to foreclose this Deed of Trust or to obtain specific
enforcement of any of the covenants or other terms of this Deed of Trust.

 

6.3.7        Power of Sale. Under the power of sale hereby granted, Beneficiary
shall have the discretionary right to cause some or all of the Property,
including any Property which constitutes personal property, to be sold or
otherwise disposed of in any combination and in any manner permitted by
applicable law. At Trustee’s option, Trustee may set the place of any such sale
at any reasonable place, as permitted by Section 443.327 and any other
applicable law of the Revised Statutes of Missouri, first giving notice of such
sale in the manner prescribed by statute. Trustee may in Trustee’s discretion
set the time of any such sale at any commercially reasonable time, as permitted
by Section 443.327 of the Revised Statutes of Missouri.

 

(a)           Sales of Personal Property.

 

(i)            For purposes of this power of sale,
Beneficiary may elect to treat as personal property any Property which is
intangible or which can be severed from the Land or Improvements without
causing structural damage. If it chooses to do so, Beneficiary may dispose of
any personal property separately from the sale of real property, in any manner
permitted by Article 9 of the

 

22

 

Missouri Uniform Commercial Code, as amended or
recodified from time to time, including any public or private sale, or in any
manner permitted by any other applicable law. Any proceeds of any such
disposition shall not cure any Event of Default or reinstate any Secured
Obligation.

 

(ii)           In connection with any sale or other
disposition of such Property, Trustor agrees that the following procedures
constitute a commercially reasonable sale: Beneficiary shall mail written
notice of the sale to Trustor not later than ten (10) days prior to such
sale. Once per week during the three weeks immediately preceding such sale,
Beneficiary will publish notice of the sale in a local daily newspaper of
general circulation. Upon receipt of any written request, Beneficiary will make
the Property available to any bona fide prospective purchaser for inspection
during reasonable business hours. Notwithstanding any provision to the
contrary, Beneficiary shall be under no obligation to consummate a sale if, in
its judgment, none of the offers received by it equals the fair value of the
Property offered for sale. The foregoing procedures do not constitute the only
procedures that may be commercially reasonable.

 

(b)           Trustee’s Sales of Real Property or Mixed Collateral.

 

(i)            Beneficiary may choose to dispose of some
or all of the Property which consists solely of real property in any manner
then permitted by applicable law. In its discretion, Beneficiary may also or
alternatively choose to dispose of some or all of the Property, in any
combination consisting of both real and personal property, together in one sale
to be held in accordance with the law and procedures applicable to real
property, as permitted by Article 9 of the Missouri Uniform Commercial
Code, as amended or recodified from time to time. Trustor agrees that such a
sale of personal property together with real property constitutes a
commercially reasonable sale of the personal property. For purposes of this
power of sale, either a sale of real property alone, or a sale of both real and
personal property together in accordance with Article 9 of the Missouri
Uniform Commercial Code, as amended or recodified from time to time, will
sometimes be referred to as a “Trustee’s Sale.”

 

(ii)           Before any Trustee’s Sale, Beneficiary or
Trustee shall give such notice of default and election to sell as may then be
required by law. When all time periods then legally mandated have expired, and
after such notice of sale as may then be legally required has been given,
Trustee shall sell the property being sold at a public auction to be held at
the time and place specified in the notice of sale, provided, however, that no
sale or other disposition of slot machines or other gaming devices shall occur
without first receiving the approval of the applicable Gaming Board. Neither
Trustee nor Beneficiary shall have any obligation to make demand on Trustor
before any Trustee’s Sale. From time to time in accordance with then applicable
law, Trustee may, and in any event at Beneficiary’s request shall, postpone any
Trustee’s Sale by public announcement at the time and place noticed for that
sale.

 

23

 

(iii)          At any Trustee’s Sale, Trustee shall sell
the property being sold at a public auction to the highest bidder at public
auction for cash in lawful money of the United States. Trustee shall execute
and deliver to the purchaser(s) a deed or deeds conveying the property being
sold without any covenant or warranty whatsoever, express or implied. The
recitals in any such deed of any matters or facts, including any facts bearing
upon the regularity or validity of any Trustee’s Sale, shall be conclusive
proof of their truthfulness. Any such deed shall be conclusive against all
Persons as to the facts recited in it.

 

6.3.8        Single or Multiple Foreclosure Sales. If the Property consists of more than
one lot, parcel or item of property, Beneficiary may:

 

(a)           Designate the order in which the lots, parcels and/or
items shall be sold or disposed of or offered for sale or disposition; and

 

(b)           Elect to dispose of the lots, parcels and/or items
through a single consolidated sale or disposition to be held or made under the
power of sale granted in Sections 1.1 and 6.3.7, or in connection
with judicial proceedings, or by virtue of a judgment and decree of foreclosure
and sale; or through two or more such sales or dispositions; or in any other
manner Beneficiary may deem to be in its best interests (any such sale or
disposition being referred to herein as a “Foreclosure Sale”).

 

If Beneficiary chooses to have more than one
Foreclosure Sale, Beneficiary at its option may cause the Foreclosure Sales to
be held simultaneously or successively, on the same day, or on such different
days and at such different times and in such order as Beneficiary may deem to
be in its best interests. No Foreclosure Sale shall terminate or affect the
liens or security interests of this Deed of Trust on any part of the Property
which has not been sold until all of the Secured Obligations have been paid in
full and the Commitment has been fully and finally terminated.

 

6.3.9        Other Permitted Remedies. Beneficiary and the Lenders may refuse
to make any advance to any Borrower or issue any Letter of Credit for the
account of any Borrower. Beneficiary and the Lenders may exercise any and all
other rights and remedies available under the Loan Documents and applicable
law, including, without limitation, the right to file applications to change,
and to exercise all other rights and remedies available under applicable law
with respect to, all water permits and rights relating to the Property;
provided however that, notwithstanding the foregoing or any other provision
contained in this Deed of Trust, the remedies provided by this Deed of Trust
shall not include the right to take any action that violates applicable Gaming
Laws.

 

6.4           Credit Bids. At any Foreclosure Sale, any Person, including
Trustor, Trustee or Beneficiary, may bid for and acquire the Property or any
part thereof to the extent permitted by then applicable law. Instead of paying
cash for such property, Beneficiary may settle for the purchase price by
crediting against the sales price of the Property or any part thereof any or
all of the outstanding Secured Obligations (including without limitation the
portion of the Secured Obligations attributable to the expenses of sale, costs
of any action and any other sums for which Trustor is obligated to pay or
reimburse Beneficiary, the Lenders or

 

24

 

Trustee under Section 5.11) in such order and proportions
as Beneficiary in its absolute discretion may choose.

 

6.5           Application of Foreclosure Sale Proceeds. Beneficiary and Trustee shall apply the
proceeds of any Foreclosure Sale in the manner required by applicable law;
provided that all proceeds that are to be applied against the Secured
Obligations shall, except as otherwise required by applicable law, be applied
against the Secured Obligations in any order and proportions as Beneficiary in
its absolute discretion may choose (subject to any applicable provisions for
priority of application of proceeds set forth in either Credit Agreement).

 

6.6           Application of Rents and Other Sums. Beneficiary shall apply any and all
Rents collected by it, and any and all sums other than proceeds of a
Foreclosure Sale which Beneficiary may receive or collect under Section 6.3,
in the following manner:

 

(a)           First, to pay the portion of the Secured Obligations
attributable to the costs and expenses of operation and collection that may be
incurred by Trustee, Beneficiary or any receiver;

 

(b)           Second, to pay all other Secured Obligations in any
order and proportions as Beneficiary in its absolute discretion may choose
(subject to any applicable provisions for priority of application of payments
set forth in the Credit Agreement); and

 

(c)           Third, to remit the remainder, if any, to the Person
or Persons entitled to it. Beneficiary shall have no liability for any funds
which it does not actually receive.

 

7.             [Intentionally omitted.]

 

8.             Miscellaneous Provisions.

 

8.1           Additional Provisions. The Loan Documents fully state all of the terms and
conditions of the parties’ agreement regarding the matters mentioned in or
incidental to this Deed of Trust. The Loan Documents also grant further rights
to Beneficiary and contain further agreements and affirmative and negative
covenants by Trustor which apply to this Deed of Trust and to the Property.

 

8.2           No Waiver or Cure.

 

8.2.1        Each waiver by Beneficiary or Trustee must be in
writing, and no waiver shall be construed as a continuing waiver. No waiver
shall be implied from any delay or failure by Beneficiary or Trustee to take
action on account of any default of Trustor. Consent by Beneficiary or Trustee
to any act or omission by Trustor shall not be construed as a consent to any
other or subsequent act or omission or to waive the requirement for Beneficiary’s
or Trustee’s consent to be obtained in any future or other instance.

 

8.2.2        If any of the events described below occurs, that
event alone shall not: cure or waive any breach, Event of Default or notice of
default under this Deed of Trust or

 

25

 

invalidate any act performed pursuant to any such default or notice; or
nullify the effect of any notice of default or sale (unless all Secured
Obligations then due have been paid and performed and all other defaults under
the Loan Documents have been cured); or impair the security of this Deed of
Trust; or prejudice Beneficiary, Trustee or any receiver in the exercise of any
right or remedy afforded any of them under this Deed of Trust; or be construed
as an affirmation by Beneficiary of any tenancy, lease or option, or a
subordination of the lien or security interest of this Deed of Trust.

 

(a)           Beneficiary, its agent or a receiver takes possession
of all or any part of the Property in the manner provided in Section 6.3.3.

 

(b)           Beneficiary collects and applies Rents as permitted
under Sections 2.3 and 6.6 or exercises Trustor’s right, title
and interest under the Leases, either with or without taking possession of all
or any part of the Property.

 

(c)           Beneficiary receives and applies to any Secured
Obligation proceeds of any Property, including any proceeds of insurance
policies, condemnation awards, or other claims, property or rights assigned to
Beneficiary under Section 5.5.

 

(d)           Beneficiary makes a site visit, observes the Property
and/or conducts tests as permitted under Section 5.15.

 

(e)           Beneficiary receives any sums under this Deed of Trust
or any proceeds of any collateral held for any of the Secured Obligations, and
applies them to one or more Secured Obligations.

 

(f)            Beneficiary, Trustee or any receiver invokes any right
or remedy provided under this Deed of Trust.

 

8.3           Powers of Beneficiary and Trustee.

 

8.3.1        Trustee shall have no obligation to perform any act
which it is empowered to perform under this Deed of Trust unless it is
requested to do so in writing and is reasonably indemnified against loss, cost,
liability and expense.

 

8.3.2        If either Beneficiary or any Lender or Trustee
performs any act which it is empowered or authorized to perform under this Deed
of Trust, including any act permitted by Section 5.9 or Section 6.3.4,
that act alone shall not release or change the personal liability of any Person
for the payment and performance of the Secured Obligations then outstanding, or
the lien or security interest of this Deed of Trust on all or the remainder of
the Property for full payment and performance of all outstanding Secured
Obligations. The liability of the original Trustor shall not be released or
changed if Beneficiary or any Lender grants any successor in interest to any
Borrower or Trustor any extension of time for payment, or modification of the
terms of payment, of any Secured Obligation. Neither Beneficiary nor any Lender
shall be required to comply with any demand by any original Trustor or Borrower
that Beneficiary or such Lender refuse to grant such an extension or
modification to, or commence proceedings against, any such successor in interest

 

26

 

8.3.3        Beneficiary may take any of the actions permitted
under Sections 6.3.2 and/or 6.3.3 regardless of the adequacy of
the security for the Secured Obligations, or whether any or all of the Secured
Obligations have been declared to be immediately due and payable, or whether
notice of default and election to sell has been given under this Deed of Trust.

 

8.3.4        From time to time, Beneficiary or Trustee may apply to
any court of competent jurisdiction for aid and direction in executing the
trust and enforcing the rights and remedies created under this Deed of Trust. Beneficiary
or Trustee may from time to time obtain orders or decrees directing, confirming
or approving acts in executing this trust and enforcing these rights and
remedies.

 

8.4           Merger. No merger shall occur as a result of Beneficiary’s
acquiring any other estate in or any other lien on or security interest in the
Property unless Beneficiary consents to a merger in writing.

 

8.5           Applicable Law. This Deed of Trust shall be governed by and
construed in accordance with the laws of the State of Missouri.

 

8.6           Successors in Interest. The terms, covenants and conditions of this Deed of
Trust shall be binding upon and inure to the benefit of the heirs, successors
and assigns of the parties. However, this Section 8.6 does not
waive the provisions of Section 6.1.

 

8.7           Interpretation.

 

8.7.1        Whenever the context requires, all words used in the
singular will be construed to have been used in the plural, and vice versa, and
each gender will include any other gender. The captions of the sections of this
Deed of Trust are for convenience only and do not define or limit any terms or
provisions. The word “include(s)” means “include(s), without limitation,” and
the word “including” means “including, but not limited to.”

 

8.7.2        The word “obligations” is used in its broadest and
most comprehensive sense, and includes all primary, secondary, direct,
indirect, fixed and contingent obligations. It further includes all principal,
interest, prepayment charges, late charges, loan fees and any other fees and
charges accruing or assessed at any time, as well as all obligations to perform
acts or satisfy conditions.

 

8.7.3        No listing of specific instances, items or matters in
any way limits the scope or generality of any language of this Deed of Trust. All
Exhibits and/or Schedules attached to this Deed of Trust are hereby
incorporated in this Deed of Trust.

 

8.8           In-House Counsel Fees. Whenever Trustor is obligated to pay or reimburse
Beneficiary or any Lender or Trustee for any attorneys’ fees, those fees shall
include the allocated costs for services of in-house counsel.

 

8.9           Waiver of Marshalling. To the extent permitted by applicable law, Trustor
waives all rights, legal and equitable, it may now or hereafter have to require
marshalling of assets or to require foreclosure sales of assets in a particular
order. Each successor and assign of Trustor, including any holder of a lien or
security interest subordinate to this Deed of Trust, by

 

27

 

acceptance of its interest or lien or security interest, agrees that it
shall be bound by the above waiver, as if it had given the waiver itself.

 

8.10         Severability. Any provision in this Deed of Trust that is held to
be inoperative, unenforceable or invalid as to any party or in any jurisdiction
shall, as to that party or jurisdiction, be inoperative, unenforceable or
invalid without affecting the remaining provisions or the operation, enforceability
or validity of that provision as to any other party or in any other
jurisdiction, and to this end the provisions of this Deed of Trust are declared
to be severable.

 

8.11         Notices. Trustor hereby requests that a copy of notice of
default and notice of sale be mailed to it at the address set forth below. That
address is also the mailing address of Trustor as debtor under the Missouri
Uniform Commercial Code, as amended or recodified from time to time. Beneficiary’s
address given below is the address for Beneficiary as secured party under the
Missouri Uniform Commercial Code, as amended or recodified from time to time.

 

	
  Notices to Trustor:

  	
   

  	
  c/o Herbst
  Gaming, Inc.

  
	
   

  	
   

  	
  5195 Las Vegas Blvd.

  
	
   

  	
   

  	
  Las Vegas, NV 89119

  
	
   

  	
   

  	
  Attn: M. Higgins

  
	
   

  	
   

  	
   

  
	
  Notices to Beneficiary:

  	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  	
  Mail Code: TX1-492-14-11

  
	
   

  	
   

  	
  Bank of America Plaza

  
	
   

  	
   

  	
  901 Main Street, 14th
  Floor

  
	
   

  	
   

  	
  Dallas, TX 75202-3714

  
	
   

  	
   

  	
  Attn:       Chris M. Levine, Assistant Vice
  President

  
	
   

  	
   

  	
  Agency Management
  Officer II

  
	
   

  	
   

  	
  GCIB Agency Management
  Central I

  
	
   

  	
   

  	
   

  
	
  Notices to Trustee:

  	
   

  	
  Todd W.
  Griffee, Esq.

  
	
   

  	
   

  	
  106 S. Seventh Street,
  Suite 301

  
	
   

  	
   

  	
  St. Joseph, MO 64501

  

 

8.12         Lease of Property. Trustee hereby lets the Property to Trustor until a
sale is held under this Deed of Trust, or until an Event of Default shall
occur, upon the following terms and conditions, to wit: Trustor and all persons
claiming or possessing any of the Property by, through or under Trustor shall
pay rent therefor during said term at the rate of one cent per month, payable
monthly upon demand, and shall surrender immediate peaceable possession of the
Property (and any and every part thereof) sold under the provisions of this
Deed of Trust to the purchaser thereof under such sale, without notice or
demand therefor, and shall and will at once, without notice, surrender up
possession of the Property and every part thereof in the event Beneficiary
shall take charge and enter the Property as provided in this Deed of Trust.

 

8.13         This notice is provided pursuant to section 432.045,
R.S.Mo. As used herein, “you” means Trustor, “us”
means Beneficiary and the Lenders, “borrower”
means

 

28

 

Trustor, “creditor” means Beneficiary
and the Lenders and “this writing” means this Agreement
and the other Loan Documents. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR
RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWER) AND US
(CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH
COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND
EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER
AGREE IN WRITING TO MODIFY IT.

 

29

 

IN WITNESS WHEREOF, this Deed of Trust has been
executed as of the date first written above.

 

	
   

  	
  “Trustor”:

  
	
   

  	
   

  	
   

  
	
   

  	
  HGI – ST. JO,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward Herbst

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

30

 

ACKNOWLEDGEMENT

 

	
  STATE
  OF Nevada

  	
  )

  	
   

  
	
   

  	
  ) ss.

  	
   

  
	
  COUNTY
  OF Clark

  	
  )

  	
   

  

 

On this 28 day of January in the year 2005 before me, Jenifer
Cannon , a Notary Public in and for said State, personally appeared Edward
Herbst, of HGI – ST. JO, known to me to be the person(s) who executed the
within Deed of Trust with Assignment of Rents, Security Agreement and Fixture Filing on behalf of said corporation and acknowledged to me
that he/she/they executed the same for the purposes therein stated.

 

IN TESTIMONY WHEREOF, I have hereunder set my hand and
affixed my official seal in the County and State aforesaid, the day and year
first above written.

 

 

	
  [SEAL]

  	
   

  	
  /s/ Jenifer E. Cannon

  	
   

  
	
   

  	
   

  	
  Notary Public Jenifer E. Cannon

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  My term expires

  	
   1/17/07

  	
  .

  	
   

  	
   

  
						

 

31

 

EXHIBIT “A”

 

(Legal Description of
Land)

 

TRACT
A:

 

ALL THAT PART OF THE SOUTHWEST QUARTER (SW 1/4)
OF SECTION SIX (6) TOWNSHIP FIFTY-SEVEN (57) NORTH. RANGE THIRTY-FIVE
(35) WEST, ST. JOSEPH, BUCHANAN COUNTY, MISSOURI, LYING NORTH OF THE NORTH LINE
OF THE RIGHT-OF-WAY LINE OF SUPPLEMENTARY STATE HIGHWAY “00” WEST OF THE NORTH
APPROACH TO SAID SUPPLEMENTARY STATE HIGHWAY ROUTE 00 EAST OF THE TRACT OF
GROUND CONVEYED TO THE UNITED STATES OF AMERICA BY WARRANTY DEED RECORDED IN
BOOK 941 AT PAGE 227, IN THE OFFICE OF THE RECORDER OF DEEDS OF BUCHANAN
COUNTY, MISSOURI, EXCEPT A TRACT OF LAND JUST NORTH OF THE OLD RIGHT-OF-WAY OF
STATE ROUTE “00” CONVEYED TO THE MISSOURI DEPARTMENT OF CONSERVATION; SAID
REMAINING SURVEYED TRACT MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE CENTER OF SECTION 6, TOWNSHIP 57
NORTH, RANGE 35 WEST;

 

THENCE ALONG THE EAST-WEST CENTERLINE OF SAID SECTION 6,
SOUTH 86°27’13” WEST, 349.98 FEET TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE
OF WATERWORKS ROAD AND THE TRUE POINT OF BEGINNING;

 

THENCE ALONG THE WESTERLY RIGHT-OF-WAY LINE OF
WATERWORKS ROAD THE FOLLOWING BEARINGS AND DISTANCES: SOUTH 09°00’11” EAST,
11.27 FEET;

 

THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 356.20
FEET AN ARC LENGTH OF 348.94 FEET AND A CHORD BEARING OF SOUTH 18°28’16” WEST;

 

THENCE SOUTH 46°57’21” WEST, 486.06 FEET;

 

THENCE ALONG A CURVE TO THE LEFT HAVING A RADIUS OF
450.28 FEET, AND AN ARC LENGTH OF 354.73 FEET AND A CHORD BEARING OF SOUTH
22°43’48” WEST TO A POINT OF THE NORTHEAST CORNER OF A TRACT OF LAND CONVEYED
TO THE MISSOURI DEPARTMENT OF CONSERVATION;

 

THENCE ALONG THE NORTH LINE OF SAID TRACT SOUTH 51°45’06”
WEST, 375.30 FEET TO A POINT ON THE EAST LINE OF A TRACT OF GROUND CONVEYED TO
THE UNITED STATES OF AMERICA BY SAID WARRANTY DEED;

 

THENCE ALONG THE EAST LINE OF SAID TRACT ALONG A CURVE
TO THE RIGHT HAVING A RADIUS OF 9200.00 FEET, AN ARC LENGTH OF 1215.97 FEET AND
A CHORD BEARING OF NORTH 21°41’28” WEST, TO A POINT ON THE EAST-WEST CENTER
LINE OF SAID SECTION 6;

 

1

 

THENCE ALONG SAID SECTION LINE NORTH 86°27’13”
EAST, 1339.60 FEET TO THE TRUE POINT OF BEGINNING.

 

EXCEPT ALL THAT PART IN THE MISSOURI RIVER.

 

EXCEPT THAT PART CONVEYED TO CITY OF ST.
JOSEPH APRIL 18, 2002 IN BOOK 2431 AT PAGE 111.

 

TRACT
B:

 

A TRACT OF LAND IN THE NORTHWEST QUARTER OF SECTION SIX
(6), TOWNSHIP FIFTY SEVEN (57) NORTH, RANGE THIRTY-FIVE (35) WEST, BUCHANAN
COUNTY, MISSOURI, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE NORTHWEST CORNER OF THE NORTHWEST
QUARTER OF SAID SECTION SIX (6);

 

THENCE NORTH 89°46’59” EAST, ALONG THE NORTH LINE OF
SAID SECTION SIX (6), 1302.18 FEET TO THE NORTHEAST CORNER OF THE WEST
HALF OF THE NORTHWEST QUARTER (W1/2 NW 1/4) OF SAID SECTION SIX (6);

 

THENCE SOUTH 00°22’41” WEST, ALONG THE EAST LINE OF
THE WEST HALF OF THE NORTHWEST QUARTER (W1/2 NW 1/4) OF SAID SECTION SIX
(6), 1666.24 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE CONTINUING SOUTH 00°22’41” WEST, ALONG SAID
WEST LINE, 727.3 FEET TO THE NORTHEAST CORNER OF A TRACT OF LAND DESCRIBED IN
DEED RECORDED IN BOOK 1313 AT PAGE 343 IN THE OFFICE OF THE RECORDER OF DEEDS
IN BUCHANAN COUNTY, MISSOURI;

 

THENCE SOUTH 86°27’13” WEST, 165.0 FEET TO THE
NORTHWEST CORNER OF SAID TRACT;

 

THENCE SOUTH 00°22’41” WEST, 170.00 FEET TO THE SOUTH
WEST CORNER OF SAID TRACT;

 

THENCE NORTH 86°27’13” EAST, 165.00 FEET TO THE
SOUTHEAST CORNER OF SAID TRACT AND THE EAST LINE OF THE WEST HALF OF THE
NORTHWEST QUARTER (W1/2 NW 1/4);

 

THENCE SOUTH 00°22’41” WEST ALONG SAID EAST LINE
170.00 FEET TO THE SOUTH LINE OF SAID NORTHWEST QUARTER (NW 1/4);

 

THENCE SOUTH 86°27’13” WEST, ALONG SAID SOUTH LINE,
426.93 FEET TO A POINT ON THE EAST LINE OF A TRACT CONVEYED TO THE UNITED
STATES OF AMERICA BY DEED RECORDED IN BOOK 933 AT PAGE 23 IN THE OFFICE OF THE
RECORDER OF DEEDS OF BUCHANAN COUNTY, MISSOURI;

 

2

 

THENCE ALONG A CURVE TO THE RIGHT, HAVING A RADIUS OF
9215.0 FEET AND AN ARC DISTANCE OF 110.45 FEET, CHORD BEARING NORTH 18°08’25”
WEST;

 

THENCE NORTH 00°22’41” EAST, 986.86 FEET;

 

THENCE NORTH 89°46’59” EAST, 461.44 FEET TO THE TRUE
POINT OF BEGINNING.

 

ALSO, ALL THAT PART OF THE EAST HALF OF THE
NORTHWEST QUARTER (E1/2 NW 1/4) OF SECTION SIX (6), TOWNSHIP FIFTY-SEVEN
(57) NORTH, RANGE THIRTY-FIVE (35) WEST OF THE FIFTH PRINCIPAL MERIDIAN,
BUCHANAN COUNTY, MISSOURI, LYING WEST OF THE COUNTY ROAD KNOWN AS WATER WORKS
ROAD AND SOUTH OF A LINE 1064.53 FEET PERPENDICULARLY DISTANCE NORTH OF THE
SOUTH LINE OF SAID EAST HALF OF THE NORTHWEST QUARTER (E1/4 NW 1/4) OF SECTION SIX
(6).

 

EXCEPT THERE FROM ONE (1) ACRE DESCRIBED AS
FOLLOWS:

 

BEGINNING ON THE SOUTH LINE OF SAID EAST HALF OF THE
NORTHWEST QUARTER (E1/2 NW 1/4) OF SECTION SIX (6) AT A POINT THAT IS
DISTANT SOUTH 86°30’ WEST, 331.95 FEET FROM THE SOUTHEAST CORNER THEREOF;

 

THENCE CONTINUING SOUTH 86°30’ WEST ALONG SAID SOUTH
LINE, 276.92 FEET TO A POINT;

 

THENCE NORTH 0°19’ WEST, 185.85 FEET TO A POINT;

 

THENCE NORTH 86°30’ EAST, 251.09 FEET TO A POINT;

 

THENCE SOUTHEASTERLY TO THE POINT OF BEGINNING;

 

AND EXCEPT THERE FROM, 64 SQUARE FEET AT THE
NORTHWEST CORNER DESCRIBED AS FOLLOWS:

 

BEGINNING ON THE WEST LINE OF SAID EAST HALF OF THE
NORTHWEST QUARTER (E1/2 NW 1/4) OF SECTION SIX (6) AT A POINT THAT IS
1056.0 FEET NORTH OF THE SOUTHWEST CORNER THEREOF;

 

THENCE CONTINUING NORTH 10.52 FEET TO A POINT;

 

THENCE NORTH 86°30” EAST, 6.01 FEET TO A POINT;

 

THENCE SOUTH PARALLEL WITH THE WEST LINE OF SAID SOUTH
HALF QUARTER SECTION, 10.83 FEET TO A POINT;

 

THENCE SOUTH 89°27’ WEST, 6.0 FEET TO THE POINT OF
BEGINNING.

 

3

 

TRACT
C”

 

THE FOLLOWING DESCRIBED TRACT OF LAND LOCATED IN
BUCHANAN COUNTY, MISSOURI,

 

BEGINNING 331.95 FEET WEST OF THE SOUTHEAST CORNER OF
THE NORTHWEST QUARTER OF SECTION SIX (6) TOWNSHIP FIFTY-SEVEN (57),
RANGE THIRTY-FIVE (35);

 

THENCE WEST ALONG THE QUARTER SECTION LINE 276.92
FEET;

 

THENCE NORTH PARALLEL TO THE WEST LINE OF SAID
NORTHWEST QUARTER 185.85 FEET;

 

THENCE EAST PARALLEL TO THE SOUTH LINE OF SAID QUARTER
SECTION 251.09 FEET TO THE WESTERLY LINE OF THE WATER WORKS ROAD;

 

THENCE SOUTH ALONG THE WEST RIGHT OF WAY LINE OF THE
WATER WORKS ROAD TO THE POINT OF BEGINNING, ALL IN BUCHANAN COUNTY, MISSOURI.

 

END OF EXHIBIT A

 

4

 

EXHIBIT “B”

 

(Lenders)

 

	
   

  	
   

  	
  Bank of
  America, N.A.

  
	
   

  	
   

  	
  U.S. Bank
  National Association

  
	
   

  	
   

  	
  Wells Fargo
  Bank, N.A

  
	
   

  	
   

  	
  Lehman
  Commercial Paper Inc.

  
	
   

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  
	
   

  	
   

  	
  Comerica
  West Incorporated

  
	
   

  	
   

  	
  Nevada State
  Bank

  
	
   

  	
   

  	
  American
  Express Certificate Company

  
	
   

  	
   

  	
  IDS Life
  Insurance Company

  
	
   

  	
   

  	
  Centurion
  CDO 8, Limited

  
	
   

  	
   

  	
  Black
  Diamond CLO 2005-1 Ltd.

  
	
   

  	
   

  	
  Carlyle High
  Yield Partners II, Ltd.

  
	
   

  	
   

  	
  Carlyle High
  Yield Partners III, Ltd.

  
	
   

  	
   

  	
  Carlyle High
  Yield Partners VI, Ltd.

  
	
   

  	
   

  	
  Carlyle Loan
  Investment Ltd

  
	
   

  	
   

  	
  Senior Debt
  Portfolio

  
	
   

  	
   

  	
  Eaton Vance
  Institutional Senior Loan Fund

  
	
   

  	
   

  	
  Eaton Vance
  CDO III, Ltd.

  
	
   

  	
   

  	
  Costantinus
  Eaton Vance CDO V, Ltd.

  
	
   

  	
   

  	
  Eaton Vance
  CDO VI, Ltd.

  
	
   

  	
   

  	
  Grayson &
  Co

  
	
   

  	
   

  	
  The
  Norinchukin Bank, New York Branch

  

 

1

 

	
   

  	
   

  	
  Tolli &
  Co.

  
	
   

  	
   

  	
  Fidelity
  Central Investment Portfolios LLC: Fidelity Floating Rate Central Investment
  Portfolio

  
	
   

  	
   

  	
  Fidelity
  Advisor Series II: Fidelity Advisor Floating Rate High Income Fund (161)

  
	
   

  	
   

  	
  Franklin
  Floating Rate Trust

  
	
   

  	
   

  	
  Franklin
  Floating Rate Master Series

  
	
   

  	
   

  	
  Franklin CLO
  IV, Limited

  
	
   

  	
   

  	
  ELF Funding
  Trust I

  
	
   

  	
   

  	
  Highland
  Offshore Partners, L.P.

  
	
   

  	
   

  	
  Pioneer
  Floating Rate Trust

  
	
   

  	
   

  	
  Loan Star
  State Trust

  
	
   

  	
   

  	
  ING Prime
  Rate Trust

  
	
   

  	
   

  	
  ING Senior
  Income Fund

  
	
   

  	
   

  	
  Floating
  Rate Income Strategies Fund II, Inc. (FRB)

  
	
   

  	
   

  	
  Southport
  CLO, Limited

  
	
   

  	
   

  	
  Loan Funding
  XI LLC

  
	
   

  	
   

  	
  Harbour Town
  Funding LLC

  
	
   

  	
   

  	
  Race Point
  CLO, Limited

  
	
   

  	
   

  	
  Race Point
  II CLO, Limited

  
	
   

  	
   

  	
  ULT CBNA
  Loan Funding LLC

  
	
   

  	
   

  	
  Van Kampen
  Senior Income Trust

  
	
   

  	
   

  	
  Van Kampen
  Senior Loan Fund

  
	
   

  	
   

  	
  Bank of
  Scotland

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]