Document:

PLEDGE
AND SECURITY AGREEMENT

     

    THIS
PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented and otherwise
modified and in effect from time to time, this “Security Agreement”)
is entered into as of July 23, 2010 among THE PARTIES LISTED ON SCHEDULE
1 (“Grantors” and each a
“Grantor”), and
FORTRESS CREDIT CORP.,
in its capacity as Agent (“Agent”) for the
lenders party to the Credit Agreement referred to below.

     

    RECITALS

     

    A.          NG
Washington II Holdings, LLC, a Delaware limited liability company (in its
capacity as “Borrower”), Agent and
Lenders are entering into a Credit Agreement dated as of July 23, 2010 (as
amended, amended and restated, supplemented and otherwise modified and in effect
from time to time, the “Credit
Agreement”).

     

    B.           Grantors
are Borrower and Borrower’s wholly-owned Subsidiary and will receive substantial
benefit from the extensions of credit made by Agent and Lenders to Borrower
under the Credit Agreement.

     

    C.           As
a condition precedent to the initial extension of credit under the Credit
Agreement and the effectiveness of the Credit Agreement, Agent and Lenders have
required that the Grantors enter into this Security Agreement.

     

    D.           In
consideration of the foregoing, and in order to induce Agent and Lenders to
enter into the Credit Agreement, each Grantor is willing to grant a security
interest in the Collateral (as defined below) to Agent, for the benefit of Agent
and Lenders, on the terms set forth herein.

     

    NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Grantors and Agent, on behalf of Lenders, hereby agree as follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1          Terms Defined in Credit
Agreement.  All capitalized terms used herein and not otherwise
defined shall have the meanings assigned to such terms in the Credit
Agreement.

     

    1.2          Terms Defined in
UCC.  Terms defined in the UCC which are not otherwise defined
in this Security Agreement are used herein as defined in the UCC.

     

    1.3          Definitions of Certain Terms
Used Herein.  As used in this Security Agreement, in addition
to the terms defined in the Preamble and Recitals above, the following terms
shall have the following meanings:

     

    “Accounts” shall have
the meaning set forth in Article 9 of the UCC.

     

    “Article” means a
numbered article of this Security Agreement, unless another document is
specifically referenced.

     

    “Assigned Contracts”
means, collectively, all of each Grantor’s rights and remedies under, and all
moneys and claims for money due or to become due to such Grantor under any
material contracts, and any and all amendments, supplements, extensions, and
renewals thereof including all rights and claims of each Grantor now or
hereafter existing:  (a) under any insurance, indemnities,
warranties, and guarantees provided for or arising out of or in connection with
any of the foregoing agreements; (b) for any damages arising out of or for
breach or default under or in connection with any of the foregoing contracts;
(c) to all other amounts from time to time paid or payable under or in
connection with any of the foregoing agreements; or (d) to exercise or
enforce any and all covenants, remedies, powers and privileges
thereunder.

     

    “Chattel Paper” shall
have the meaning set forth in Article 9 of the UCC.

     

    “Collateral” shall
have the meaning set forth in Article II.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Collateral Access
Agreement” means any landlord waiver or other agreement, in form and
substance satisfactory to Agent, between Agent and any third party (including
any bailee, consignee, customs broker, or other similar Person) in possession of
any Collateral or any landlord of any Grantor for any real property where any
Collateral is located, as such landlord waiver or other agreement may be
amended, restated, or otherwise modified from time to time.

     

    “Collateral Report”
means any certificate, report or other document delivered by any Grantor to
Agent or any Lender with respect to the Collateral pursuant to any Loan
Document.

     

    “Commercial Tort
Claims” means the existing commercial tort claims of any Grantor
indentified on Schedule 2 and any
other commercial tort claims identified in accordance with the amendment
required pursuant to Section
4.8.

     

    “Control” shall have
the meaning set forth in Article 8 or, if applicable, in
Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the
UCC.

     

    “Copyrights” means,
with respect to any Person, all of such Person’s right, title, and interest in
and to the following:  (a) all copyrights, rights and interests
in copyrights, works protectable by copyright, copyright registrations, and
copyright applications; (b) all renewals of any of the foregoing;
(c) all income, royalties, damages, and payments now or hereafter due
and/or payable under any of the foregoing, including, without limitation,
damages or payments for past or future infringements for any of the foregoing;
(d) the right to sue for past, present, and future infringements of any of
the foregoing; and (e) all rights corresponding to any of the foregoing
throughout the world.

     

    “Deposit Account Control
Agreement” means an agreement, in form and substance satisfactory to
Agent, among any Grantor, a banking institution holding such Grantor’s funds,
and Agent with respect to collection and control of all deposits and balances
held in a deposit account maintained by any Grantor (other than player-supported
jackpot accounts maintained by NG Washington II, LLC, as more particularly
described in Section
7.1(a)) with such banking institution, pursuant to which upon the
occurrence of a Default, Agent has the ability to exclude Grantor from accessing
such deposit account and funds on deposit therein.

     

    “Deposit Accounts”
shall have the meaning set forth in Article 9 of the UCC.

     

    “Documents” shall have
the meaning set forth in Article 9 of the UCC.

     

    “Equipment” shall have
the meaning set forth in Article 9 of the UCC, including, without
limitation, gaming and associated equipment of every type and description (other
than inventory), together, in each instance, with (i) any other property
receivable or received from or upon the sale, lease, license, collection, use,
exchange or other disposition, whether voluntary or involuntary, of the
foregoing, including any and all “proceeds” as defined in the UCC, (ii) all
revenues received or paid for the lease, license, or use of gaming equipment and
(iii) any and all other amounts from time to time paid or payable under or in
connection with any of the foregoing.

     

    “Exhibit” refers to a
specific exhibit to this Security Agreement, unless another document is
specifically referenced.

     

    “Fixtures” shall have
the meaning set forth in Article 9 of the UCC.

     

    “General Intangibles”
shall have the meaning set forth in Article 9 of the UCC.

     

    “Goods” shall have the
meaning set forth in Article 9 of the UCC.

     

    “Instruments” shall
have the meaning set forth in Article 9 of the UCC.

     

    “Inventory” shall have
the meaning set forth in Article 9 of the UCC.

     

    “Investment Property”
shall have the meaning set forth in Article 9 of the UCC.

     

    “Letter-of-Credit
Rights” shall have the meaning set forth in Article 9 of the
UCC.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Licenses” means, with
respect to any Person, all of such Person’s right, title, and interest in and to
(a) any and all licensing agreements or similar arrangements in and to its
Patents, Copyrights, or Trademarks, (b) all income, royalties, damages,
claims, and payments now or hereafter due or payable under and with respect
thereto, including, without limitation, damages and payments for past and future
breaches thereof, and (c) all rights to sue for past, present, and future
breaches thereof.

     

    “Patents” means, with
respect to any Person, all of such Person’s right, title, and interest in and
to:  (a) any and all patents and patent applications;
(b) all inventions and improvements described and claimed therein;
(c) all reissues, divisions, continuations, renewals, extensions, and
continuations-in-part thereof; (d) all income, royalties, damages, claims,
and payments now or hereafter due or payable under and with respect thereto,
including, without limitation, damages and payments for past and future
infringements thereof; (e) all rights to sue for past, present, and future
infringements thereof; and (f) all rights corresponding to any of the
foregoing throughout the world.

     

    “Permitted Liens”
means Liens permitted pursuant to Section 6.15 of the Credit
Agreement.

     

    “Pledged Collateral”
means all Instruments, Securities and other Investment Property of any Grantor,
and all general or limited partnership interests of such Grantor (if any),
whether or not physically delivered to Agent pursuant to this Security
Agreement.

     

    “Receivables” means
the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any
other rights or claims to receive money which are General Intangibles or which
are otherwise included as Collateral.

     

    “Section” means a
numbered section of this Security Agreement, unless another document is
specifically referenced.

     

    “Security” has the
meaning set forth in Article 8 of the UCC.

     

    “Stock Rights” means
all dividends, instruments or other distributions and any other right or
property which any Grantor shall receive or shall become entitled to receive for
any reason whatsoever with respect to, in substitution for or in exchange for
any Capital Stock constituting Collateral, any right to receive Capital Stock
and any right to receive earnings, in which such Grantor now has or hereafter
acquires any right, issued by an issuer of such Capital Stock.

     

    “Supporting
Obligations” shall have the meaning set forth in Article 9 of the
UCC.

     

    “Trademarks” means,
with respect to any Person, all of such Person’s right, title, and interest in
and to the following:  (a) all trademarks (including service
marks), trade names, trade dress, and trade styles and the registrations and
applications for registration thereof and the goodwill of the business
symbolized by the foregoing; (b) all licenses of the foregoing, whether as
licensee or licensor; (c) all renewals of the foregoing; (d) all
income, royalties, damages, and payments now or hereafter due or payable with
respect thereto, including, without limitation, damages, claims, and payments
for past and future infringements thereof; (e) all rights to sue for past,
present, and future infringements of the foregoing, including the right to
settle suits involving claims and demands for royalties owing; and (f) all
rights corresponding to any of the foregoing throughout the world.

     

    The
foregoing definitions shall be equally applicable to both the singular and
plural forms of the defined terms.

     

    ARTICLE
II

    GRANT
OF SECURITY INTEREST

     

    Each
Grantor hereby pledges, assigns and grants to Agent, on behalf of and for the
ratable benefit of Lenders, a security interest in all of its right, title and
interest in, to and under all of the following property, whether now owned by or
owing to, or hereafter acquired by or arising in favor of such Grantor
(including under any trade name or derivations thereof), and whether owned or
consigned by or to, or leased from or to, such Grantor, and regardless of where
located (all of which will be collectively referred to as the “Collateral”):

     

    
      	
               
      

            	
              (i)

            	
              all
      Accounts;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              all
      Assigned Contracts;

            

    

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iii)

            	
              all
      Chattel Paper;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              all
      Copyrights, Patents and Trademarks;

            

    

     

    
      	
               
      

            	
              (v)

            	
              all
      Documents;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              all
      Equipment;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              all
      Fixtures;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              all
      General Intangibles;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              all
      Goods;

            

    

     

    
      	
               
      

            	
              (x)

            	
              all
      Instruments;

            

    

     

    
      	
               
      

            	
              (xi)

            	
              all
      Inventory;

            

    

     

    
      	
               
      

            	
              (xii)

            	
              all
      Investment Property;

            

    

     

    
      	
               
      

            	
              (xiii)

            	
              all
      cash or cash equivalents;

            

    

     

    
      	
               
      

            	
              (xiv)

            	
              all
      letters of credit, Letter-of-Credit Rights and Supporting
      Obligations;

            

    

     

    
      	
               
      

            	
              (xv)

            	
              all
      Deposit Accounts with any bank or other financial
    institution;

            

    

     

    
      	
               
      

            	
              (xvi)

            	
              all
      Securities Accounts;

            

    

     

    
      	
               
      

            	
              (xvii)

            	
              all
      Commercial Tort Claims;

            

    

     

    
      	
               
      

            	
              (xviii)

            	
              and
      all accessions to, substitutions for and replacements, proceeds (including
      Stock Rights), insurance proceeds and products of the foregoing, together
      with all books and records, customer lists, credit files, computer files,
      programs, printouts and other computer materials and records related
      thereto and any General Intangibles at any time evidencing or relating to
      any of the foregoing;

            

    

     

    to secure
the prompt and complete payment and performance of the Obligations.

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

     

    Each
Grantor represents and warrants to Agent and Lenders that:

     

    3.1          Title, Perfection and
Priority.  Each Grantor has good and valid rights in or the
power to transfer the Collateral and title to the Collateral with respect to
which it has purported to grant a security interest hereunder, free and clear of
all Liens except for Liens permitted under Section 4.1(e),
and has full power and authority to grant to Agent the security interest in such
Collateral pursuant hereto.  When financing statements have been filed
in the appropriate offices against each Grantor in the locations listed on Exhibit H, Agent
will have a fully perfected first priority security interest in that Collateral
in which a security interest may be perfected by filing, subject only to Liens
permitted under Section 4.1(e).

     

    3.2          Type and Jurisdiction of
Organization, Organizational and Identification Numbers.  The
type of entity of each Grantor, its state of organization, the organizational
number issued to it by its state of organization and its federal employer
identification number are set forth on Exhibit A.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    3.3          Principal
Location.  Each Grantor’s mailing address and the location of
its place of business (if it has only one) or its chief executive office (if it
has more than one place of business), are disclosed in Exhibit A; no
Grantor has any other places of business except those set forth in Exhibit A.

     

    3.4          Collateral
Locations.  With respect to each Grantor, all locations where
Collateral is located are listed on Exhibit A. All
of said locations are owned by such Grantor except for locations (i) which
are leased by such Grantor as lessee and designated in Part VII(b) of
Exhibit A
and (ii) at which Inventory is held in a public warehouse or is otherwise
held by a bailee or on consignment as designated in Part VII(c) of
Exhibit A.

     

    3.5          Deposit
Accounts.  All of Grantors’ Deposit Accounts are listed on
Exhibit B.

     

    3.6          Exact
Names.  Each Grantor’s name in which it has executed this
Security Agreement is the exact name as it appears in such Grantor’s
organizational documents, as amended, as filed with such Grantor’s jurisdiction
of organization.

     

    3.7          Letter-of-Credit Rights and
Chattel Paper.  Exhibit C lists
all Letter-of-Credit Rights and Chattel Paper of each Grantor.  All
action by each Grantor necessary or desirable to protect and perfect Agent’s
Lien on each item listed on Exhibit C
(including the delivery of all originals and the placement of a legend on all
Chattel Paper as required hereunder) has been duly taken.  Agent will
have a fully perfected first priority security interest in the Collateral listed
on Exhibit C,
subject only to Liens permitted under Section 4.1(e).

     

    3.8          Intellectual
Property.  To its Knowledge, no Grantor has any interest in, or
title to any Trademark or trade name except as set forth in Exhibit D and such
interest in or title to such Trademarks or trade names is, if applicable,
subject to the qualifications set forth in Section 5.26 of the Credit
Agreement.  No Grantor has any interest in, or title to any Patent or
Copyright except as set forth in Exhibit D. This
Security Agreement is effective to create a valid and continuing Lien and, upon
filing of appropriate financing statements in the offices listed on Exhibit H and
this Security Agreement with the United States Copyright Office with respect to
registrable Copyrights, fully perfected first priority security interests in
favor of Agent on such Patents, Trademarks and Copyrights listed on Exhibit D. Such
perfected security interests are enforceable as such as against any and all
creditors of and purchasers from the applicable Grantor; and all action
necessary or desirable to protect and perfect Agent’s Lien on such Grantor’s
Patents, Trademarks or Copyrights shall have been duly taken.

     

    3.9          Filing
Requirements.  None of the Equipment is covered by any
certificate of title, except for the vehicles described in Part I of Exhibit E.  None
of the Collateral is of a type for which security interests or liens may be
perfected by filing under any federal statute except for (a) any vehicles
described in Part II of Exhibit E and
(b) any registrable Copyrights held by any Grantor and described in Exhibit D. The
legal description, county and street address of each property on which any
Fixtures are located is set forth in Exhibit F
together with the name and address of the record owner of each such
property.

     

    3.10        No Financing Statements,
Security Agreements.  No financing statement or security
agreement describing all or any portion of the Collateral which has not lapsed
or been terminated naming any Grantor as debtor has been filed or is of record
in any jurisdiction except (a) for financing statements or security
agreements naming Agent on behalf of Lenders as the secured party and
(b) as permitted by Section 4.1(e).

     

    3.11        Pledged
Collateral.

     

    (a)           Exhibit G sets
forth a complete and accurate list of all of the Pledged
Collateral.  Each Grantor is the direct, sole beneficial owner and
sole holder of record of the Pledged Collateral listed on Exhibit G as
being owned by it, free and clear of any Liens, except for the security interest
granted to Agent for the benefit of Lenders hereunder. Each Grantor further
represents and warrants that (i) all Pledged Collateral constituting
Capital Stock has been (to the extent such concepts are relevant with respect to
such Pledged Collateral) duly authorized, validly issued, are fully paid and non
assessable, (ii) with respect to any certificates delivered to Agent
representing any Capital Stock, either such certificates are Securities as
defined in Article 8 of the UCC as a result of actions by the issuer or
otherwise, or, if such certificates are not Securities, such Grantor has so
informed Agent so that Agent may take steps to perfect its security interest
therein as a General Intangible, (iii) all Pledged Collateral held by a
securities intermediary is covered by a control agreement among such Grantor,
the securities intermediary and Agent pursuant to which Agent has Control and
(iv) all Pledged Collateral which represents Indebtedness owed to such
Grantor has been duly authorized, authenticated or issued and delivered by the
issuer of such Indebtedness, is the legal, valid and binding obligation of such
issuer and such issuer is not in default thereunder.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           In
addition, (i) none of the Pledged Collateral has been issued or transferred
in violation of the securities registration, securities disclosure or similar
laws of any jurisdiction to which such issuance or transfer may be subject,
(ii) there are existing no options, warrants, calls or commitments of any
character whatsoever relating to the Pledged Collateral or which obligate the
issuer of any Capital Stock included in the Pledged Collateral to issue
additional Capital Stock, and (iii) no consent, approval, authorization, or
other action by, and no giving of notice, filing with, any governmental
authority or any other Person is required for the pledge by any Grantor of the
Pledged Collateral pursuant to this Security Agreement or for the execution,
delivery and performance of this Security Agreement by any Grantor, or for the
exercise by Agent of the voting or other rights provided for in this Security
Agreement or for the remedies in respect of the Pledged Collateral pursuant to
this Security Agreement, except as may be required in connection with such
disposition by laws affecting the offering and sale of securities
generally.

     

    (c)           Each
Grantor owns 100% of the issued and outstanding Capital Stock of its respective
Subsidiary or Subsidiaries which constitute Pledged Collateral and none of the
Pledged Collateral which represents Indebtedness owed to such Grantor is
subordinated in right of payment to other Indebtedness or subject to the terms
of an indenture.

     

    ARTICLE
IV

    COVENANTS

     

    From the
date of this Security Agreement, and thereafter until this Security Agreement is
terminated, each Grantor agrees that:

     

    4.1          General.

     

    (a)           Collateral
Records.  Each Grantor will maintain complete and accurate
books and records with respect to the Collateral, and furnish to Agent, with
sufficient copies for each of Lenders, such reports relating to the Collateral
as Agent shall from time to time request.

     

    (b)           Authorization to File
Financing Statements; Ratification.  Each Grantor hereby
authorizes Agent to file, and if requested will deliver to Agent, all financing
statements and other documents and take such other actions as may from time to
time be requested by Agent in order to maintain a first perfected security
interest in and, if applicable, Control of, the Collateral.  Any
financing statement filed by Agent may be filed in any filing office in any UCC
jurisdiction and may (i) indicate the Collateral (1) as all assets of
such Grantor or words of similar effect, regardless of whether any particular
asset comprised in the Collateral falls within the scope of Article 9 of
the UCC or such jurisdiction, or (2) by any other description which
reasonably approximates the description contained in this Security Agreement,
and (ii) contain any other information required by part 5 of
Article 9 of the UCC for the sufficiency or filing office acceptance of any
financing statement or amendment, including (A) whether such Grantor is an
organization, the type of organization and any organization identification
number issued to such Grantor, and (B) in the case of a financing statement
filed as a fixture filing or indicating Collateral as as-extracted collateral or
timber to be cut, a sufficient description of real property to which the
Collateral relates.  Each Grantor also agrees to furnish any such
information to Agent promptly upon reasonable request.  Each Grantor
also ratifies its authorization for Agent to have filed in any UCC jurisdiction
any initial financing statements or amendments thereto if filed prior to the
date hereof.

     

    (c)           Further
Assurances.  Each Grantor will furnish to Agent, as often as
Agent requests, statements and schedules further identifying and describing the
Collateral and such other reports and information in connection with the
Collateral as Agent may reasonably request, all in such detail as Agent may
specify.  Each Grantor also agrees to take any and all actions
necessary to defend title to the Collateral against all persons and to defend
the security interest of Agent in the Collateral and the priority thereof
against any Lien not expressly permitted hereunder.

     

    (d)           Disposition of
Collateral.  No Grantor will sell, lease or otherwise dispose
of the Collateral except for dispositions specifically permitted pursuant to
Section 6.13 of the Credit Agreement.

     

    (e)           Liens.  No
Grantor will create, incur, or suffer to exist any Lien on its respective
Collateral except (i) the security interest created by this Security
Agreement, and (ii) other Permitted Liens.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (f)           Other Financing
Statements.  No Grantor will authorize the filing of any
financing statement naming it as debtor covering all or any portion of its
respective Collateral, except as permitted by Section 4.1(e).  Each
Grantor acknowledges that it is not authorized to file any financing statement
or amendment or termination statement with respect to any financing statement
which does not expressly exclude the Collateral from the description of the
collateral secured in such financing statement, without the prior written
consent of Agent, subject to such Grantor’s rights under
Section 9-509(d)(2) of the UCC.

     

    (g)           Locations.  No
Grantor will (i) maintain any Collateral at any location other than those
locations listed on Exhibit A,  or
(ii) otherwise change, or add to, such locations without Agent’s prior
written consent, which shall not be unreasonably withheld, as required by the
Credit Agreement (and if Agent gives such consent, such Grantor will
concurrently therewith obtain a Collateral Access Agreement for each such
location to the extent required by the Credit Agreement).

     

    (h)           Compliance with
Terms.  Each Grantor will perform and comply with all
obligations in respect of the Collateral and all material obligations under all
material agreements to which it is a party or by which it is bound relating to
the Collateral.

     

    4.2          Electronic Chattel
Paper.  Each Grantor shall take all steps necessary to grant
Agent Control of all electronic chattel paper in accordance with the UCC and all
“transferable records” as defined in each of the Uniform Electronic Transactions
Act and the Electronic Signatures in Global and National Commerce
Act.

     

    4.3          Delivery of Instruments,
Securities, Chattel Paper, Investment Property and
Documents.  Each Grantor will (a) deliver to Agent
immediately upon execution of this Security Agreement the originals of all
Instruments, Securities, Chattel Paper, Investment Property and Documents (if
any then exist), and duly executed blank assignments in the form set forth in
Exhibit J in
respect of all Investment Property, constituting Collateral, (b) hold in
trust for Agent upon receipt and immediately thereafter deliver to Agent any
Instruments, Securities, Chattel Paper, Investment Property and Documents
evidencing or constituting Collateral, (c) upon Agent’s request, deliver to
Agent (and thereafter hold in trust for Agent upon receipt and immediately
deliver to Agent) any Document evidencing or constituting Collateral and
(d) upon Agent’s request, deliver to Agent a duly executed amendment to
this Security Agreement, in the form of Exhibit I hereto
(an “Amendment”), pursuant
to which such Grantor will confirm the pledge of such additional Collateral
hereunder and, immediately upon execution of such Amendment, deliver the
originals of all Instruments, Securities, Chattel Paper, Investment Property and
Documents, and duly executed blank assignments in the form set forth in Exhibit J in respect
of all Investment Property, constituting such additional
Collateral.  Each Grantor hereby authorizes Agent to attach each
Amendment to this Security Agreement and agrees that all additional Collateral
set forth in such Amendments shall be considered to be part of the
Collateral.

     

    4.4          Uncertificated Pledged
Collateral.  Each Grantor will permit Agent from time to time
to cause the appropriate issuers (and, if held with a securities intermediary,
such securities intermediary) of uncertificated securities or other types of
Pledged Collateral not represented by certificates to mark their books and
records with the numbers and face amounts of all such uncertificated securities
or other types of Pledged Collateral not represented by certificates and all
rollovers and replacements therefor to reflect the Lien of Agent granted
pursuant to this Security Agreement. Each Grantor will take any actions
necessary to cause (a) the issuers of uncertificated securities which are
Pledged Collateral and (b) any securities intermediary which is the holder
of any Pledged Collateral, to cause Agent to have and retain Control over such
Pledged Collateral. Without limiting the foregoing, each Grantor will, with
respect to Pledged Collateral held with a securities intermediary, cause such
securities intermediary to enter into a control agreement with Agent, in form
and substance satisfactory to Agent, giving Agent Control.

     

    4.5          Pledged
Collateral.

     

    (a)          Changes in Capital Structure
of Issuers.  No Grantor will (i) permit or suffer any
issuer of Capital Stock constituting Pledged Collateral to dissolve, merge,
liquidate, retire any of its Capital Stock or other Instruments or Securities
evidencing ownership, reduce its capital, sell or encumber all or substantially
all of its assets (except for Permitted Liens and sales of assets permitted
pursuant to Section 4.1(d))
or merge or consolidate with any other entity, or (ii) vote any Pledged
Collateral in favor of any of the foregoing.

     

    (b)         Issuance of Additional
Securities.  No Grantor will permit or cause the issuer of
Capital Stock constituting Pledged Collateral to issue additional Capital Stock,
any right to receive the same or any right to receive earnings.

     

    (c)         Registration of Pledged
Collateral.  Each Grantor will permit any registrable Pledged
Collateral to be registered in the name of Agent or its nominee at any time at
the option of the Required Lenders.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (d)         Treatment as
“Security”.  With respect to any Capital Stock which is
included within the Collateral that shall at any time constitute a Security or
the issuer shall take any action to have such interests treated as a Security,
(i) all certificates or other documents constituting such Security shall be
delivered to Agent by the applicable Grantor and such Security shall be properly
defined as such under Article 8 of the UCC of the applicable jurisdiction,
whether as a result of actions by the issuer thereof or otherwise, or
(ii) Agent shall have entered into a control agreement with the issuer of
such Security or with a securities intermediary relating to such Security and
such Security shall be properly defined as such under Article 8 of the UCC
of the applicable jurisdiction, whether as a result of actions by the issuer
thereof or otherwise.

     

    (e)          Exercise of Rights in
Pledged Collateral.

     

    (i)           Without
in any way limiting the foregoing and subject to clause (ii)
below, each Grantor shall have the right to exercise all voting rights or other
rights relating to the Pledged Collateral for all purposes not inconsistent with
this Security Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right
shall be exercised or action taken which would have the effect of impairing the
rights of Agent in respect of the Pledged Collateral.

     

    (ii)           Each
Grantor will permit Agent or its nominee at any time after the occurrence of a
Default, without notice, to exercise all voting rights or other rights relating
to Pledged Collateral, including, without limitation, exchange, subscription or
any other rights, privileges, or options pertaining to any Capital Stock or
Investment Property constituting Pledged Collateral as if it were the absolute
owner thereof.

     

    (iii)          Each
Grantor shall be entitled to collect and receive for its own use all cash
dividends and interest paid in respect of the Pledged Collateral to the extent
not in violation of the Credit Agreement other than any of the
following distributions and payments (collectively referred to as the “Excluded
Payments”):  (A) dividends and interest paid or payable
other than in cash in respect of any Pledged Collateral, and instruments and
other property received, receivable or otherwise distributed in respect of, or
in exchange for, any Pledged Collateral; (B) dividends and other
distributions paid or payable in cash in respect of any Pledged Collateral
during the continuance of a Default or at any time in connection with a partial
or total liquidation or dissolution or in connection with a reduction of
capital, capital surplus or paid-in capital of an issuer; and (C) cash
paid, payable or otherwise distributed, in respect of principal of, or in
redemption of, or in exchange for, any Pledged Collateral; provided however, that until actually paid, all
rights to such distributions shall remain subject to the Lien created by this
Security Agreement; and

     

    (iv)         All
Excluded Payments and all other distributions in respect of any of the Pledged
Collateral, whenever paid or made, shall be delivered to Agent to hold as
Pledged Collateral and shall, if received by any Grantor, be received in trust
for the benefit of Agent, be segregated from the other property or funds of such
Grantor, and be forthwith delivered to Agent as Pledged Collateral in the same
form as so received (with any necessary endorsement).

     

    4.6         Acknowledgment by
Issuer.  NG Washington II, LLC agrees promptly to note on its
books the security interests granted under this Security Agreement with respect
to the Pledged Collateral issued by it.

     

    4.7         Assigned
Contracts.  Each Grantor will use its best efforts to secure
all consents and approvals necessary or appropriate for the assignment to or for
the benefit of Agent of any Assigned Contract held by any Grantor and to enforce
the security interests granted hereunder.  Each Grantor shall fully
perform all of its obligations under each of the Assigned Contracts, and shall
enforce all of its rights and remedies thereunder, in each case, as it deems
appropriate in its business judgment; provided however, that no
Grantor shall take any action or fail to take any action with respect to its
Assigned Contracts which would cause the termination of an Assigned
Contract.  Without limiting the generality of the foregoing, each
Grantor shall take all action necessary or appropriate to permit, and shall not
take any action which would have any materially adverse effect upon, the full
enforcement of all indemnification rights under its Assigned
Contracts.  Each Grantor shall notify Agent and the Lenders in
writing, promptly after such Grantor becomes aware thereof, of any event or fact
which could give rise to a material claim by it for indemnification under any of
its Assigned Contracts, and shall diligently pursue such right and report to
Agent on all further developments with respect thereto. Each Grantor shall
deposit into a Deposit Account subject to a Deposit Account Control Agreement
all amounts received by such Grantor as indemnification or otherwise pursuant to
its Assigned Contracts.  If any Grantor shall fail after Agent’s
demand to pursue diligently any right under its Assigned Contracts, or if a
Default then exists, Agent may, and at the direction of the Required Lenders
shall, directly enforce such right in its own or any Grantor’s name and may
enter into such settlements or other agreements with respect thereto as Agent or
the Required Lenders, as applicable, shall determine.  In any suit,
proceeding or action brought by Agent for the benefit of the Lenders under any
Assigned Contract for any sum owing thereunder or to enforce any provision
thereof, the Grantors shall jointly and severally indemnify and hold Agent and
Lenders harmless from and against all expense, loss or damage suffered by reason
of any defense, setoff, counterclaims, recoupment, or reduction of liability
whatsoever of the obligor thereunder arising out of a breach by any Grantor of
any obligation thereunder or arising out of any other agreement, indebtedness or
liability at any time owing from any Grantor to or in favor of such obligor or
its successors.  All such obligations of each Grantor shall be and
remain enforceable only against such Grantor and shall not be enforceable
against Agent or the Lenders.  Notwithstanding any provision hereof to
the contrary, each Grantor shall at all times remain liable to observe and
perform all of its duties and obligations under its Assigned Contracts, and
Agent’s or any Lender’s exercise of any of their respective rights with respect
to the Collateral shall not release any Grantor from any of such duties and
obligations.  Neither Agent nor any Lender shall be obligated to
perform or fulfill any of any Grantor’s duties or obligations under its Assigned
Contracts or to make any payment thereunder, or to make any inquiry as to the
nature or sufficiency of any payment or property received by it thereunder or
the sufficiency of performance by any party thereunder, or to present or file
any claim, or to take any action to collect or enforce any performance, any
payment of any amounts, or any delivery of any property.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    4.8         Commercial Tort
Claims.  Each Grantor shall promptly, and in any event within
three (3) Business Days after the same is acquired by it, notify Agent of any
commercial tort claim (as defined in the UCC) acquired by it and, unless Agent
otherwise consents, such Grantor shall enter into an Amendment to this Security
Agreement, granting to Agent a first priority security interest in such
Commercial Tort Claim.

     

    4.9         Letter-of-Credit
Rights.  If any Grantor is or becomes the beneficiary of a
letter of credit, such Grantor shall promptly, and in any event within three (3)
Business Days after becoming a beneficiary, notify Agent thereof and cause the
issuer and/or confirmation bank to (i) consent to the assignment of any
Letter-of-Credit Rights to Agent and (ii) agree to direct all payments
thereunder to a Deposit Account at Agent or subject to a Deposit Account Control
Agreement for application to the Obligations, all in form and substance
reasonably satisfactory to Agent.

     

    4.10       Federal, State or Municipal
Claims.  Each Grantor will promptly notify Agent of any
Collateral which constitutes a claim against the United States government or any
state or local government or any instrumentality or agency thereof, the
assignment of which claim is restricted by federal, state or municipal
law.

     

    4.11       No
Interference.  Each Grantor agrees that it will not interfere
with any right, power and remedy of Agent provided for in this Security
Agreement or now or hereafter existing at law or in equity or by statute or
otherwise, or the exercise or beginning of the exercise by Agent of any one or
more of such rights, powers or remedies.

     

    4.12       Intellectual
Property.

     

    (a)           Each
Grantor will use its best efforts to secure all consents and approvals necessary
or appropriate for the assignment to or benefit of the Agent of any License held
by such Grantor and to enforce the security interests granted
hereunder.

     

    (b)           Each
Grantor shall notify the Agent immediately if it knows or has reason to know
that any application or registration relating to any Patent, Trademark or
Copyright (now or hereafter existing) may become abandoned or dedicated, or of
any adverse determination or development (including the institution of, or any
such determination or development in, any proceeding in the United States Patent
and Trademark Office, the United States Copyright Office or any court) regarding
such Grantor’s ownership of any Patent, Trademark or Copyright, its right to
register the same, or to keep and maintain the same.

     

    (c)           In
no event shall any Grantor, either directly or through any agent, employee,
licensee or designee, file an application for the registration of any Patent,
Trademark or Copyright with the United States Patent and Trademark Office, the
United States Copyright Office or any similar office or agency without giving
the Agent prior written notice thereof, and, upon request of the Agent, such
Grantor shall execute and deliver any and all security agreements as the Agent
may request to evidence the Agent’s first priority security interest on such
Patent, Trademark or Copyright, and the General Intangibles of such Grantor
relating thereto or represented thereby.

     

    (d)           Each
Grantor shall take all actions necessary or reasonably requested by the Agent to
maintain and pursue each application, to obtain the relevant registration and to
maintain the registration of each of the Patents, Trademarks and Copyrights (now
or hereafter existing), including the filing of applications for renewal,
affidavits of use, affidavits of noncontestability and opposition and
interference and cancellation proceedings, unless the Agent shall determine that
such Patent, Trademark or Copyright is not material to the conduct of Grantor’s
business.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    4.13       Collateral Access
Agreements.  Each Grantor shall use commercially reasonable
efforts to obtain a Collateral Access Agreement, from the lessor of each leased
property, mortgagee of owned property or bailee or consignee with respect to any
warehouse, processor or converter facility or other location where Collateral is
stored or located, which agreement or letter shall provide access rights,
contain a waiver or subordination of all Liens or claims that the landlord,
mortgagee, bailee or consignee may assert against the Collateral at that
location, and shall otherwise be reasonably satisfactory in form and substance
to Agent. After the Effective Date, no real property or warehouse space shall be
leased by any Grantor and no Inventory shall be shipped to a processor or
converter under arrangements established after the Effective Date, unless and
until a satisfactory Collateral Access Agreement shall first have been obtained
with respect to such location.

     

    4.14       Insurance.

     

    (a)           In
the event any Collateral is located in any area that has been designated by the
Federal Emergency Management Agency as a “Special Flood Hazard Area”, each
relevant Grantor shall purchase and maintain flood insurance on such Collateral
(including any personal property which is located on any real property leased by
such Loan Party within a “Special Flood Hazard Area”).  The amount of
all insurance required by this Section shall at a minimum comply with applicable
law, including the Flood Disaster Protection Act of 1973, as amended. All
premiums on such insurance shall be paid when due by each Grantor, and copies of
the policies delivered to the Agent.  If any Grantor fails to obtain
any insurance as required by this Section, the Agent may obtain such insurance
at the such Grantor’s expense.  The coverage that the Agent purchases
may not pay any claim that such Grantor makes or any claim that is made against
such Grantor in connection with the Collateral.  Such Grantor may
later cancel any insurance purchased by the Agent, but only after providing the
Agent with evidence that such Grantor has obtained insurance as required by this
Agreement.  If the Agent purchases insurance for the Collateral, such
Grantor will be responsible for the costs of that insurance, including interest
and any other charges the Agent 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 may be added to the Grantor’s
total outstanding balance or obligation.  The costs of the insurance
may be more than the cost of insurance such Grantor may be able to obtain on its
own.  By purchasing such insurance, the Agent shall not be deemed to
have waived any Default arising from such Grantor’s failure to maintain such
insurance or pay any premiums therefor.

     

    (b)           All
insurance policies required under Section 6.6 of the Credit Agreement shall
name the Agent (for the benefit of the Agent and the Lenders) as loss payee and,
if required by Agent, an additional insured, and shall contain loss payable
clauses or mortgagee clauses, through endorsements in form and substance
satisfactory to the Agent, which provide that:  (i) all proceeds
thereunder with respect to any Collateral shall be payable to the Agent;
(ii) no act, whether willful or negligent, or default of any Grantor or any
other Person shall affect the right of Agent to recover under such policy or
policies of insurance in case of loss or damage; and (iii) such policy and
loss payable or mortgagee clauses may be canceled, amended, or terminated only
upon at least thirty (30) days prior written notice given to the
Agent.

     

    4.15       Change of Name or Location;
Change of Fiscal Year.  Neither Grantor shall, without giving
Agent not less than thirty (30) days’ prior written notice thereof and after
having executed and delivered to Agent such further instruments and documents in
connection therewith as may be requested by Agent pursuant to Section 4.1(c)
(a) change its name as it appears in official filings in the state of its
incorporation or organization, (b) change its chief executive office,
principal place of business, mailing address or corporate offices or the
location of its records concerning the Collateral as set forth in this Security
Agreement, (c) change the type of entity that it is, (d) change its
organization identification number, if any, issued by its state of incorporation
or other organization, or (e) change its state of incorporation or
organization.  No Grantor shall change its fiscal year which currently
ends on April 30.

     

    ARTICLE
V

    REMEDIES

     

    5.1         Remedies.

     

    (a)         Upon
the occurrence of a Default, Agent may, with the concurrence or at the direction
of the Required Lenders, exercise any or all of the following rights and
remedies:

     

    (i)           those
rights and remedies provided in this Security Agreement, the Credit Agreement,
or any other Loan Document; provided that, this Section 5.1(a)
shall not be understood to limit any rights or remedies available to Agent and
Lenders prior to a Default;

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (ii)           those
rights and remedies available to a secured party under the UCC (whether or not
the UCC applies to the affected Collateral) or under any other applicable law
(including, without limitation, any law governing the exercise of a bank’s right
of setoff or bankers’ lien) when a debtor is in default under a security
agreement;

     

    (iii)          give
notice of sole control or any other instruction under any Deposit Account
Control Agreement or and other control agreement with any securities
intermediary and take any action therein with respect to such
Collateral;

     

    (iv)          without
notice (except as specifically provided in Section 8.1 or
elsewhere herein), demand or advertisement of any kind to any Grantor or any
other Person, enter the premises of any Grantor where any Collateral or the
books and records relating thereto, or both, are located (through self-help and
without judicial process) to collect, receive, assemble, process, appropriate,
sell, lease, assign, grant an option or options to purchase or otherwise dispose
of, deliver, or realize upon, the Collateral or any part thereof or the books
and records relating thereto, or both, in one or more parcels at public or
private sale or sales (which sales may be adjourned or continued from time to
time with or without notice and may take place at such Grantor’s premises or
elsewhere), for cash, on credit or for future delivery without assumption of any
credit risk, and upon such other terms as Agent may deem commercially
reasonable; and

     

    (v)           concurrently
with written notice to any Grantor, transfer and register in its name or in the
name of its nominee the whole or any part of the Pledged Collateral, to exchange
certificates or instruments representing or evidencing Pledged Collateral for
certificates or instruments of smaller or larger denominations, to exercise the
voting and all other rights as a holder with respect thereto, to collect and
receive all cash dividends, interest, principal and other distributions made
thereon and to otherwise act with respect to the Pledged Collateral as though
Agent was the outright owner thereof.

     

    (b)         Agent,
on behalf of Lenders, may comply with any applicable state or federal law
requirements in connection with a disposition of the Collateral and compliance
will not be considered to adversely affect the commercial reasonableness of any
sale of the Collateral.

     

    (c)          Agent
shall have the right upon any such public sale or sales and, to the extent
permitted by law, upon any such private sale or sales, to purchase for the
benefit of Agent and Lenders, the whole or any part of the Collateral so sold,
free of any right of equity redemption, which equity redemption the applicable
Grantor hereby expressly releases.

     

    (d)         Until
Agent is able to effect a sale, lease, or other disposition of Collateral, Agent
shall have the right to hold or use Collateral, or any part thereof, to the
extent that it deems appropriate for the purpose of preserving Collateral or its
value or for any other purpose deemed appropriate by Agent.  Agent
may, if it so elects, seek the appointment of a receiver or keeper to take
possession of Collateral and to enforce any of Agent’s remedies (for the benefit
of Agent and Lenders), with respect to such appointment without prior notice or
hearing as to such appointment.

     

    (e)          Notwithstanding
the foregoing, neither Agent nor Lenders shall be required to (i) make any
demand upon, or pursue or exhaust any of their rights or remedies against, any
Grantor, any other obligor, guarantor, pledgor or any other Person with respect
to the payment of the Obligations or to pursue or exhaust any of their rights or
remedies with respect to any Collateral therefor or any direct or indirect
guarantee thereof, (ii) marshal the Collateral or any guarantee of the
Obligations or to resort to the Collateral or any such guarantee in any
particular order, or (iii) effect a public sale of any
Collateral.

     

    (f)          Each
Grantor recognizes that Agent may be unable to effect a public sale of any or
all the Pledged Collateral and may be compelled to resort to one or more private
sales thereof in accordance with clause (a)
above.  Each Grantor also acknowledges that any private sale may
result in prices and other terms less favorable to the seller than if such sale
were a public sale and, notwithstanding such circumstances, agrees that any such
private sale shall not be deemed to have been made in a commercially
unreasonable manner solely by virtue of such sale being
private.  Agent shall be under no obligation to delay a sale of any of
the Pledged Collateral for the period of time necessary to permit any Grantor or
the issuer of the Pledged Collateral to register such securities for public sale
under the Securities Act of 1933, as amended, or under applicable state
securities laws, even if such Grantor and the issuer would agree to do
so.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    5.2         Grantor’s Obligations Upon
Default.  Upon the request of Agent after the occurrence of a
Default, each Grantor will:

     

    (a)           assemble
and make available to Agent the Collateral and all books and records relating
thereto at any place or places specified by Agent, whether at such Grantor’s
premises or elsewhere;

     

    (b)           take,
or cause an issuer of Pledged Collateral to take, any and all actions necessary
to register or qualify the Pledged Collateral to enable Agent to consummate a
public sale or other disposition of the Pledged Collateral; and

     

    (c)           at
its own expense, cause the independent certified public accountants then engaged
by such Grantor to prepare and deliver to Agent and each Lender, at any time,
and from time to time, promptly upon Agent’s request, the following reports with
respect to such Grantor:  (i) a reconciliation of all Accounts;
(ii) an aging of all Accounts; (iii) trial balances; and (iv) a
test verification of such Accounts.

     

    5.3         Grant of Intellectual
Property License.  For the purpose of enabling Agent to
exercise the rights and remedies under this Article V upon
and following the occurrence of a Default, each Grantor hereby (a) grants
to Agent, for the benefit of Agent and Lenders, an irrevocable, nonexclusive
license (exercisable without payment of royalty or other compensation to such
Grantor) to use, license or sublicense any Intellectual Property Rights now
owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license access to all media in which any of the
licensed items may be recorded or stored and to all computer software and
programs used for the compilation or printout thereof and (b) irrevocably
agrees that Agent may sell any of such Grantor’s Inventory directly to any
person, including without limitation persons who have previously purchased such
Grantor’s Inventory from such Grantor and in connection with any such sale or
other enforcement of Agent’s rights under this Security Agreement, may sell
Inventory which bears any Trademark owned by or licensed to such Grantor and any
Inventory that is covered by any Copyright owned by or licensed to such Grantor
and Agent may finish any work in process and affix any Trademark owned by or
licensed to such Grantor and sell such Inventory as provided
herein.

     

    ARTICLE
VI

    ACCOUNT
VERIFICATION; ATTORNEY IN FACT; PROXY

     

    6.1         Account
Verification.  Agent may at any time after a Default, in
Agent’s own name, in the name of a nominee of Agent, or in the name of any
applicable Grantor, communicate (by mail, telephone, facsimile or otherwise)
with the account debtors of such Grantor, parties to contracts with such Grantor
and obligors in respect of Instruments of such Grantor to verify with such
Persons, to Agent’s satisfaction, the existence, amount, terms of, and any other
matter relating to, Accounts, Instruments, Chattel Paper, payment intangibles
and/or other Receivables.

     

    6.2         Authorization for Secured
Party to Take Certain Action.

     

    (a)           Each
Grantor irrevocably authorizes and appoints Agent as its attorney in fact
(i) to execute on behalf of such Grantor as debtor and to file financing
statements necessary or desirable in Agent’s sole discretion to perfect and to
maintain the perfection and priority of Agent’s security interest in the
Collateral, (ii) if a Default has occurred and is continuing, to endorse
and collect any cash proceeds of the Collateral, (iii) to file a carbon,
photographic or other reproduction of this Security Agreement or any financing
statement with respect to the Collateral as a financing statement and to file
any other financing statement or amendment of a financing statement (which does
not add new collateral or add a debtor) in such offices as Agent in its sole
discretion deems necessary or desirable to perfect and to maintain the
perfection and priority of Agent’s security interest in the Collateral,
(iv) to contact and enter into one or more agreements with the issuers of
uncertificated securities which are Pledged Collateral or with securities
intermediaries holding Pledged Collateral as may be necessary or advisable to
give Agent Control over such Pledged Collateral, (v) to apply the proceeds
of any Collateral received by Agent to the Obligations, (vi) upon written
notice to the applicable Grantor, to discharge past due taxes, assessments,
charges, fees or Liens on the Collateral (except for such Liens as are
specifically permitted hereunder), (vii) if a Default has occurred and is
continuing, to contact account debtors for any reason, (viii) if a Default
has occurred and is continuing, to demand payment or enforce payment of the
Accounts in the name of Agent or such Grantor and to endorse any and all checks,
drafts, and other instruments for the payment of money relating to the Accounts,
(ix) if a Default has occurred and is continuing, to sign such Grantor’s
name on any invoice or bill of lading relating to the Accounts, drafts against
any account debtor of such Grantor, assignments and verifications of Accounts,
(x) if a Default has occurred, to exercise all of such Grantor’s rights and
remedies with respect to the collection of the Accounts and any other
Collateral, (xi) if a Default has occurred and is continuing, to settle,
adjust, compromise, extend or renew the Accounts, (xii) if a Default has
occurred and is continuing, to settle, adjust or compromise any legal
proceedings brought to collect Accounts, (xiii) if a Default has occurred
and is continuing, to prepare, file and sign such Grantor’s name on a proof of
claim in bankruptcy or similar document against any account debtor of such
Grantor, (xiv) if a Default has occurred and is continuing, to prepare,
file and sign such Grantor’s name on any notice of Lien, assignment or
satisfaction of Lien or similar document in connection with the Accounts,
(xv) if a Default has occurred and is continuing, to change the address for
delivery of mail addressed to such Grantor to such address as Agent may
designate and to receive, open and dispose of all mail addressed to such
Grantor, and (xvi) to do all other acts and things necessary to carry out this
Security Agreement (provided that, if addressed in this Security Agreement, in
accordance therewith); and each Grantor agrees to reimburse Agent on demand for
any payment made or any expense incurred by Agent in connection with any of the
foregoing; provided
that, this authorization shall not relieve such Grantor of any of its
obligations under this Security Agreement or under the Credit
Agreement.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           All
acts of said attorney or designee are hereby ratified and
approved.  The powers conferred on Agent, for the benefit of Agent and
Lenders, under this Section 6.2 are
solely to protect Agent’s interests in the Collateral and shall not impose any
duty upon Agent or any Lender to exercise any such powers.

     

    6.3         Proxy.  EACH
GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE AGENT AS THE PROXY AND
ATTORNEY IN FACT (AS SET FORTH IN SECTION 6.2
ABOVE) OF SUCH GRANTOR WITH RESPECT TO THE PLEDGED COLLATERAL, INCLUDING THE
RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO
SO.  IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE
APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT
TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER
OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING
WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND
VOTING AT SUCH MEETINGS).  SUCH PROXY AND ATTORNEY-IN-FACT SHALL BE
EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY
TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY
OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE OF A DEFAULT OR FROM THE DATE OF
THIS SECURITY AGREEMENT, AS SPECIFIED IN SECTIONS 6.1 AND
6.2
ABOVE.

     

    6.4         Nature of Appointment;
Limitation of Duty.  THE APPOINTMENT OF THE AGENT AS PROXY AND
ATTORNEY-IN-FACT IN THIS ARTICLE VI IS
COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS
SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 8.13.  NOTWITHSTANDING
ANYTHING CONTAINED HEREIN, NEITHER THE AGENT, NOR ANY LENDER, NOR ANY OF THEIR
RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES
SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR
OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO
SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE
SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED
BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE
LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES.

     

    ARTICLE
VII

    DEPOSIT ACCOUNTS

     

    7.1         Deposit
Accounts.

     

    (a)           On
or before the Effective Date, each Grantor shall execute and deliver to Agent
Deposit Account Control Agreements for each Deposit Account maintained by such
Grantor as permitted by Agent. After the Closing Date, such Grantor will comply
with the terms of Section 7.2.  Notwithstanding
anything to the contrary contained herein and for the avoidance of doubt, any
reference to “Deposit Account” contained herein shall not be construed as
referring to any player-supported jackpot account that the Washington State
Gambling Commission requires to be maintained by NG Washington II, LLC in trust
for players pursuant to the Washington Administrative Code
230-15-400.

     

    (b)           If
any Grantor receives any cash proceeds of any Collateral or any amounts required
to be paid pursuant to Section 2.5 of the Credit Agreement, such Grantor shall
receive such payments as Agent’s trustee, and shall immediately deposit all
cash, checks or other similar payments related to or constituting payments
received by it to a Deposit Account subject to a Deposit Account Control
Agreement.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    7.2         Covenant Regarding New
Deposit Accounts.  Before opening or replacing any Deposit
Account (other than player-supported jackpot accounts, the funds in which are
required to be held on trust for players in accordance with applicable Gaming
Laws), each Grantor shall cause each bank or financial institution in which it
seeks to open a Deposit Account, to enter into a Deposit Account Control
Agreement with Agent in order to give Agent Control of such Deposit
Account.  In the case of Deposit Accounts maintained with Lenders, the
terms of such letter shall be subject to the provisions of the Credit Agreement
regarding setoffs.

     

    ARTICLE
VIII

    GENERAL
PROVISIONS

     

    8.1         Waivers.  Each
Grantor hereby waives notice of the time and place of any public sale or the
time after which any private sale or other disposition of all or any part of the
Collateral may be made.  To the extent such notice may not be waived
under applicable law, any notice made shall be deemed reasonable if sent to such
Grantor, addressed as set forth in Article IX, at
least ten days prior to (i) the date of any such public sale or
(ii) the time after which any such private sale or other disposition may be
made.  To the maximum extent permitted by applicable law, each Grantor
waives all claims, damages, and demands against Agent or any Lender arising out
of the repossession, retention or sale of the Collateral, except such as arise
solely out of the gross negligence or willful misconduct of Agent or such Lender
as finally determined by a court of competent jurisdiction.  To the
extent it may lawfully do so, each Grantor absolutely and irrevocably waives and
relinquishes the benefit and advantage of, and covenants not to assert against
Agent or any Lender, any valuation, stay, appraisal, extension, moratorium,
redemption or similar laws and any and all rights or defenses it may have as a
surety now or hereafter existing which, but for this provision, might be
applicable to the sale of any Collateral made under the judgment, order or
decree of any court, or privately under the power of sale conferred by this
Security Agreement, or otherwise.  Except as otherwise specifically
provided herein, each Grantor hereby waives presentment, demand, protest or any
notice (to the maximum extent permitted by applicable law) of any kind in
connection with this Security Agreement or any Collateral.

     

    8.2         Limitation on Agent’s and
Lenders’ Duty with Respect to the Collateral.  Agent shall have
no obligation to clean-up or otherwise prepare the Collateral for
sale.  Agent and each Lender shall use reasonable care with respect to
the Collateral in its possession or under its control.  Neither Agent
nor any Lender shall have any other duty as to any Collateral in its possession
or control or in the possession or control of any agent or nominee of Agent or
such Lender, or any income thereon or as to the preservation of rights against
prior parties or any other rights pertaining thereto.  To the extent
that applicable law imposes duties on Agent to exercise remedies in a
commercially reasonable manner, each Grantor acknowledges and agrees that it is
commercially reasonable for Agent (i) to fail to incur expenses deemed
significant by Agent to prepare Collateral for disposition or otherwise to
transform raw material or work in process into finished goods or other finished
products for disposition, (ii) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by
other law, to fail to obtain governmental or third party consents for the
collection or disposition of Collateral to be collected or disposed of,
(iii) to fail to exercise collection remedies against account debtors or
other Persons obligated on Collateral or to remove Liens on or any adverse
claims against Collateral, (iv) to exercise collection remedies against
account debtors and other Persons obligated on Collateral directly or through
the use of collection agencies and other collection specialists, (v) to
advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature,
(vi) to contact other Persons, whether or not in the same business as such
Grantor, for expressions of interest in acquiring all or any portion of such
Collateral, (vii) to hire one or more professional auctioneers to assist in
the disposition of Collateral, whether or not the Collateral is of a specialized
nature, (viii) to dispose of Collateral by utilizing internet sites that
provide for the auction of assets of the types included in the Collateral or
that have the reasonable capacity of doing so, or that match buyers and sellers
of assets, (ix) to dispose of assets in wholesale rather than retail
markets, (x) to disclaim disposition warranties, such as title, possession
or quiet enjoyment, (xi) to purchase insurance or credit enhancements to
insure Agent against risks of loss, collection or disposition of Collateral or
to provide to Agent a guaranteed return from the collection or disposition of
Collateral, or (xii) to the extent deemed appropriate by Agent, to obtain
the services of other brokers, investment bankers, consultants and other
professionals to assist Agent in the collection or disposition of any of the
Collateral.  Each Grantor acknowledges that the purpose of this Section 8.2 is
to provide non-exhaustive indications of what actions or omissions by Agent
would be commercially reasonable in Agent’s exercise of remedies against the
Collateral and that other actions or omissions by Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 8.2.  Without
limitation upon the foregoing, nothing contained in this Section 8.2
shall be construed to grant any rights to any Grantor or to impose any duties on
Agent that would not have been granted or imposed by this Security Agreement or
by applicable law in the absence of this Section 8.2.

     

    8.3         Secured Party Performance of
Debtor Obligations.  Without having any obligation to do so,
Agent may perform or pay any obligation which any Grantor has agreed to perform
or pay in this Security Agreement and such Grantor shall reimburse Agent for any
amounts paid by Agent pursuant to this Section 8.3.  Such
Grantor’s obligation to reimburse Agent pursuant to the preceding sentence shall
be an Obligation payable on demand.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    8.4         Specific Performance of
Certain Covenants.  Each Grantor acknowledges and agrees that a
breach of any of the covenants contained in Sections 4.1(d),
4.1(e), 4.3, 4.4, 4.5, 4.8, 4.9, 4.10, 4.13, 4.15, 5.2 or in Article VII will
cause irreparable injury to Agent and Lenders, that Agent and Lenders have no
adequate remedy at law in respect of such breaches and therefore agrees, without
limiting the right of Agent or Lenders to seek and obtain specific performance
of other obligations of such Grantor contained in this Security Agreement, that
the covenants of such Grantor contained in the Sections referred to in this
Section 8.4
shall be specifically enforceable against such Grantor.

     

    8.5         Dispositions Not
Authorized.  No Grantor is authorized to sell or otherwise
dispose of the Collateral except as set forth in Section 4.1(d)
and notwithstanding any course of dealing between such Grantor and Agent or
other conduct of Agent, no authorization to sell or otherwise dispose of the
Collateral (except as set forth in Section 4.1(d))
shall be binding upon Agent or Lenders unless such authorization is in writing
signed by Agent with the consent or at the direction of the Required
Lenders.

     

    8.6         No Waiver; Amendments;
Cumulative Remedies.  No delay or omission of Agent or any
Lender to exercise any right or remedy granted under this Security Agreement
shall impair such right or remedy or be construed to be a waiver of any
Unmatured Default or Default or an acquiescence therein, and any single or
partial exercise of any such right or remedy shall not preclude any other or
further exercise thereof or the exercise of any other right or
remedy.  No waiver, amendment or other variation of the terms,
conditions or provisions of this Security Agreement whatsoever shall be valid
unless in writing signed by Agent with the concurrence or at the direction of
Lenders required under Section 9.2 of the Credit Agreement and then only to the
extent in such writing specifically set forth.  All rights and
remedies contained in this Security Agreement or by law afforded shall be
cumulative and all shall be available to Agent and Lenders until the Obligations
have been Paid in Full.

     

    8.7         Limitation by Law;
Severability of Provisions.  All rights, remedies and powers
provided in this Security Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law, and all the
provisions of this Security Agreement are intended to be subject to all
applicable mandatory provisions of law that may be controlling and to be limited
to the extent necessary so that they shall not render this Security Agreement
invalid, unenforceable or not entitled to be recorded or registered, in whole or
in part.  Any provision in this Security Agreement that is held to be
inoperative, unenforceable, or invalid in any jurisdiction shall, as to that
jurisdiction, be inoperative, unenforceable, or invalid without affecting the
remaining provisions in that jurisdiction or the operation, enforceability, or
validity of that provision in any other jurisdiction, and to this end the
provisions of this Security Agreement are declared to be severable.

     

    8.8         Reinstatement.  This
Security Agreement shall remain in full force and effect and continue to be
effective should any petition be filed by or against any Grantor for liquidation
or reorganization, should any Grantor become insolvent or make an assignment for
the benefit of any creditor or creditors or should a receiver or trustee be
appointed for all or any significant part of any Grantor’s assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance
had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

     

    8.9         Benefit of
Agreement.  The terms and provisions of this Security Agreement
shall be binding upon and inure to the benefit of each Grantor, Agent and
Lenders and their respective successors and assigns (including all persons who
become bound as a debtor to this Security Agreement), except that such Grantor
shall not have the right to assign its rights or delegate its obligations under
this Security Agreement or any interest herein, without the prior written
consent of Agent.  No sales of participations, assignments, transfers,
or other dispositions of any agreement governing the Obligations or any portion
thereof or interest therein shall in any manner impair the Lien granted to
Agent, for the benefit of Agent and Lenders, hereunder.

     

    8.10       Survival of
Representations.  All representations and warranties of each
Grantor contained in this Security Agreement shall survive the execution and
delivery of this Security Agreement.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    8.11       Taxes and
Expenses.  Any taxes (including income taxes) payable or ruled
payable by Federal or State authority in respect of this Security Agreement
shall be paid by the applicable Grantor, together with interest and penalties,
if any.  Each Grantor, jointly and severally, shall directly pay the
reasonable fees, expenses and disbursements of Agent’s counsel, and shall
reimburse Agent for any and all out of pocket expenses and internal charges
(including reasonable attorneys’, auditors’ and accountants’ fees and reasonable
time charges of attorneys, paralegals, auditors and accountants who may be
employees of Agent) paid or incurred by Agent in connection with the
preparation, execution, delivery, administration, collection and enforcement of
this Security Agreement and in the audit, analysis, administration, collection,
preservation or sale of its respective Collateral (including the reasonable
expenses and charges associated with any periodic or special audit of such
Collateral).  Any and all costs and expenses incurred by any Grantor
in the performance of actions required pursuant to the terms hereof shall be
borne solely by such Grantor.

     

    8.12       Headings.  The
title of and section headings in this Security Agreement are for convenience of
reference only, and shall not govern the interpretation of any of the terms and
provisions of this Security Agreement.

     

    8.13       Termination.  This
Security Agreement shall continue in effect (notwithstanding the fact that from
time to time there may be no Obligations outstanding) until (i) the Credit
Agreement has terminated pursuant to its express terms and (ii) all of the
Obligations have been Paid In Full and no commitments of Agent or Lenders which
would give rise to any Obligations are outstanding.

     

    8.14       Entire
Agreement.  This Security Agreement embodies the entire
agreement and understanding between each Grantor and Agent relating to the
Collateral and supersedes all prior agreements and understandings between such
Grantor and Agent relating to the Collateral.

     

    8.15       CHOICE OF
LAW.  THIS
SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK.

     

    8.16       CONSENT
TO JURISDICTION.  EACH GRANTOR HEREBY IRREVOCABLY
SUBMITS TO THE NON EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE
COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND EACH
GRANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT
OR ANY LENDER TO BRING PROCEEDINGS AGAINST SUCH GRANTOR IN THE COURTS OF ANY
OTHER JURISDICTION.  ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST
THE AGENT OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE
BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK.

     

    8.17       WAIVER OF
JURY TRIAL.  EACH GRANTOR, THE AGENT AND EACH
LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY
OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR
ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

     

    8.18       Indemnity.  Each
Grantor hereby agrees to indemnify Agent and Lenders, and their respective
successors, assigns, agents, investment advisors, clients, managed accounts and
employees, from and against any and all liabilities, damages, penalties, suits,
costs, and expenses of any kind and nature (including, without limitation, all
expenses of litigation or preparation therefor whether or not Agent or any
Lender is a party thereto) imposed on, incurred by or asserted against Agent or
Lenders, or their respective successors, assigns, agents and employees, in any
way relating to or arising out of this Security Agreement, or the manufacture,
purchase, acceptance, rejection, ownership, delivery, lease, possession, use,
operation, condition, sale, return or other disposition of any Collateral
(including, without limitation, latent and other defects, whether or not
discoverable by Agent or Lenders or such Grantor, and any claim for Patent,
Trademark or Copyright infringement).

     

    8.19       Counterparts.  This
Security Agreement may be executed in any number of counterparts and by a
different party on separate counterparts, each of which, when executed and
delivered, will be deemed an original, and all of which, when taken together,
shall constitute one and the same agreement.  Delivery of
an  executed counterpart of this Security Agreement via facsimile
transmission or in Adobe .pdf format by electronic mail shall be binding, and as
effective as delivery of a manually executed counterpart, and may be used as
admissible evidence that the party so transmitting intends to be bound by the
terms set forth herein.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    8.20       Lien
Absolute.  All rights of Agent hereunder, and all obligations
of each Grantor hereunder, shall be absolute and unconditional irrespective
of:

     

    (a)           any
lack of validity or enforceability of the Credit Agreement, any other Loan
Document or any other agreement or instrument governing or evidencing any
Obligations;

     

    (b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any part of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Credit Agreement, any other Loan Document or
any other agreement or instrument governing or evidencing any
Obligations;

     

    (c)           any
exchange, release or non-perfection of any other Collateral, or any release or
amendment or waiver of or consent to departure from any guaranty, for all or any
of the Obligations;

     

    (d)           the
insolvency of any Person; or

     

    (e)           any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, any Grantor.

     

    8.21       Release.  Each
Grantor consents and agrees that Agent may at any time, or from time to time, in
its discretion (provided that, if addressed in the Credit Agreement, in
accordance therewith):

     

    (a)           renew,
extend or change the time of payment, and/or the manner, place or terms of
payment of all or any part of the Obligations; and

     

    (b)           exchange,
release and/or surrender all or any of the Collateral (including the Pledged
Collateral), or any part thereof, by whomsoever deposited, which is now or may
hereafter be held by Agent in connection with all or any of the Obligations; all
in such manner and upon such terms as Agent may deem proper, and without notice
to or further assent from any Grantor, it being hereby agreed that each Grantor
shall be and remain bound upon this Security Agreement, irrespective of the
value or condition of any of the Collateral, and notwithstanding any such
change, exchange, settlement, compromise, surrender, release, renewal or
extension, and notwithstanding also that the Obligations may, at any time,
exceed the aggregate principal amount thereof set forth in the Credit Agreement,
or any other agreement governing any Obligations.

     

    ARTICLE
IX

    NOTICES

     

    9.1         Sending Notices; Changes in
Address.  All notices, requests and other communications to any
party hereunder shall be in writing (including electronic transmission,
facsimile transmission or similar writing) and shall be given to such party: (x)
in the case of Agent or any Lender, at its address or facsimile number set forth
on Schedule 14.1 of the Credit Agreement, and (y) in the case of any Grantor, at
its address or facsimile number set forth on Schedule 1 attached
hereto.  Each such notice, request or other communication shall be
effective (i) if given by facsimile transmission, when transmitted to the
facsimile number specified in this Section 9.1 and
confirmation of receipt is received, (ii) if given by mail, 72 hours after such
communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid, or (iii) if given by any other means, when delivered
(or, in the case of electronic transmission, received) at the address specified
in this Section
9.1. Any Grantor may change the address for service of notice upon it by
a notice in writing to Agent, Agent may change the address for service of notice
upon it by a notice in writing each Grantor, and each other party to the Loan
Documents may change the address for service of notice in accordance with the
terms of the other Loan Documents.

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ARTICLE
X

    THE
AGENT

     

    Fortress
Credit Corp. has been appointed Agent for Lenders hereunder pursuant to
Article XI of the Credit Agreement.  It is expressly understood
and agreed by the parties to this Security Agreement that any authority
conferred upon Agent hereunder is subject to the terms of the delegation of
authority made by Lenders to Agent pursuant to the Credit Agreement, and that
Agent has agreed to act (and any successor Agent shall act) as such hereunder
only on the express conditions contained in such Article XI.  Any
successor Agent appointed pursuant to Article XI of the Credit Agreement
shall be entitled to all the rights, interests and benefits of Agent
hereunder.

     

    [Signature
Page Follows]

     

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each Grantor and Agent have executed this Security Agreement as
of the date first above written.

    

    
      
        	
                NG WASHINGTON II HOLDINGS,
      LLC, as a Grantor

              
	 
      	 
      
	
                By:

              	
                /s/
      Robert B. Sturges

              
	 
      	 
      
	
                Name:  

              	
                Robert
      B. Sturges

              
	 
      	 
      
	
                Title:

              	
                Manager

              
	 
      	 
      
	
                NG WASHINGTON II, LLC,
      as a Grantor

              
	 
      	 
      
	
                By:

              	
                /s/
      Robert B. Sturges

              
	 
      	 
      
	
                Name:

              	
                Robert
      B. Sturges

              
	 
      	 
      
	
                Title:

              	
                Manager

              

      

    

    

    SIGNATURE
PAGE 1 OF 2 TO

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        	
                FORTRESS CREDIT CORP.,
      as Agent

              
	 
      
	
                By:

              	
                /s/
      Constantine M. Dakolias

              
	 
      	 
      
	
                Name:  

              	
                Constantine
      M. Dakolias

              
	 
      	 
      
	
                Title:

              	
                President

              

      

    

    

    SIGNATURE
PAGE 2 OF 2 TO

    Fortress/NG
Washington II Holdings, LLC/NG Washington II, LLC

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
1

     

    GRANTORS

     

    NG
Washington II Holdings, LLC, a Delaware limited liability company

     

    NG
Washington II, LLC, a Washington limited liability company

     

    Schedule
1

    

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
2

     

    COMMERCIAL
TORT CLAIMS

     

    None.

     

    Schedule
2

    

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    (See
Sections 3.2, 3.3, 3.4, and 4.1(g) of Security Agreement)

     

    GRANTORS’
INFORMATION AND COLLATERAL LOCATIONS

     

    
      	
              I.

            	
              Name of Grantor: NG
      Washington II Holdings, LLC

            

    

     

    
      	
              II.

            	
              State of Incorporation or
      Organization: Delaware

            

    

     

    
      	
              III.

            	
              Type of Entity: Limited
      Liability Company

            

    

     

    
      	
              IV.

            	
              Organizational Number assigned
      by State of Incorporation or Organization:
  4827119

            

    

     

    
      	
              V.

            	
              Federal Identification Number:
      27-2667916

            

    

     

    
      	
              VI.

            	
              Place of Business (if it
      has only one) or Chief
      Executive Office (if more than one place of business) and Mailing
      Address:

            

    

     

    
      
        	
                
                  50
      Briar Hollow Lane

                

              
	
                
                  Suite
      500W

                

              
	
                
                  Houston,
      TX 77027

                

              
	
                
                  (713)
      621-2245 phone

                

              
	
                
                  (713)
      621-6919 fax

                

              
	
                Attention:

              	
                
                  Robert
      B. Sturges

                

              
	 
      	
                Manager

              
	 
      	 
      
	
                with
      a copy to:

              
	 
      
	
                Wolff
      & Samson PC

              
	
                One
      Boland Drive

              
	
                West
      Orange, NJ 07052

              
	
                (973)
      530-2080 phone

              
	
                (973)
      530-2280 fax

              
	
                Attn.:
      David Hyman, Esq.

              

      

    

    

    
      	
              VII.

            	
              Locations of
      Collateral:

            

    

     

    (a)         Properties Owned by
Grantor:  None.

     

    (b)         Properties Leased by
Grantor (Include Landlord’s Name):  None.

     

    
      	
               
      

            	
              (c)

            	
              Public Warehouses or
      other Locations pursuant to Bailment or Consignment Arrangements
      (include name of Warehouse Operator or other Bailee or
      Consignee):  None.

            

    

     

    
      	
              I.

            	
              Name of Grantor: NG
      Washington II, LLC

            

    

     

    
      	
              II.

            	
              State of Incorporation or
      Organization: Washington

            

    

     

    
      	
              III.

            	
              Type of Entity: Limited
      Liability Company

            

    

       

    Exhibit
A

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              IV.

            	
              Organizational Number assigned
      by State of Incorporation or Organization:
    602-990-936

            

    

     

    
      	
              V.

            	
              Federal Identification Number:
      27-2282337

            

    

     

    
      	
              VI.

            	
              Place of Business (if it
      has only one) or Chief
      Executive Office (if more than one place of business) and Mailing
      Address:

            

    

     

    
      
        	
                
                  711
      Powell Ave., SW

                

              
	
                
                  Renton,
      WA 98057

                

              
	
                
                  (425)
      264-1050 phone

                

              
	
                
                  (425)
      264-1060 fax

                

              
	 
      
	
                Attention:

              	
                
                  Victor
      Mena, COO

                

              
	
                with
      a copy

                to:

              	 
      
	 
      
	
                
                  50
      Briar Hollow Lane

                

              
	
                
                  Suite
      500W

                

              
	
                
                  Houston,
      TX 77027

                

              
	
                
                  (713)
      621-2245 phone

                

              
	
                (713)
      621-6919 fax

              
	
                Attention:

              	
                
                  Robert
      B. Sturges

                

              
	 
      	
                Manager

              
	
                and
      to:

              
	 
      
	
                Wolff
      & Samson PC

              
	
                One
      Boland Drive

              
	
                West
      Orange, NJ 07052

              
	
                (973)
      530-2080 phone

              
	
                (973)
      530-2280 fax

              
	
                Attn.:
      David Hyman, Esq.

              

      

    

    

    
      	
              VII.

            	
              Locations of
      Collateral:

            

    

     

    (a)         Real Properties Owned by
Grantor:  None.

     

    (b)         Real Properties Leased by
Grantor (Include Landlord’s Name):

     

    
      	
               
      

            	
              1.

            	
              Club
      Hollywood Casino (Building)

            

    

    16716
Aurora Avenue North

    Shoreline,
WA 98133

    (Landlord:
Old 99 Properties, LLC)

    

    
      	
               
      

            	
              2.

            	
              Club
      Hollywood Casino (Parking Lot)

            

    

    16622
Aurora Avenue North

    Shoreline,
WA 98133

    (Landlord:
Old 99 Properties, LLC)

    

    
      	
               
      

            	
              3.

            	
              Silver
      Dollar Casino - Mill Creek 

            

    

    17917
Bothell Everett Highway

    Bothell,
WA 98012

    (Landlord:
Wallace Properties – Mill Creek, LLC)

    

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.

            	
              Silver
      Dollar Casino - Renton

            

    

    3100 East
Valley Road

    Renton,
WA 98055

    (Landlord:
Little Family, LLC)

    

    
      	
               
      

            	
              5.

            	
              Silver
      Dollar Casino - SeaTac

            

    

    19222
International Boulevard

    SeaTac,
WA 98188

    (Landlord:
192nd Pacific Properties L.L.C. and Roy R. Toland and Audrey V.
Toland)

    

    
      	
               
      

            	
              6.

            	
              Golden
      Nugget Casino 

            

    

    14025
Interurban Avenue South

    Tukwila,
WA 98168

    (Landlord:
Bruce Fehling and Yong Hui Fehling)

    

    
      	
               
      

            	
              7.

            	
              Royal
      Casino

            

    

    13010
Highway 99 South

    Everett,
WA 98204

    (Landlord:
Allen and Sharon Hemmat)

    

    
      	
               
      

            	
              8.

            	
              NG
      Washington II, LLC (Administrative
Office)

            

    

    711
Powell Ave., SW

    Renton,
WA 98057

    (Landlord:
ECI TWO WTC LLC)

     

    
      	
               
      

            	
              (c)

            	
              Public Warehouses or
      other Locations pursuant to Bailment or Consignment Arrangements
      (include name of Warehouse Operator or other Bailee or
      Consignee):  None.

            

    

     

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    (See
Section 3.5 of Security Agreement)

     

    DEPOSIT
ACCOUNTS

    

    Exhibit
B

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

    (See
Section 3.7 of Security Agreement)

    

    LETTER OF
CREDIT RIGHTS

     

    None.

    

    CHATTEL
PAPER

    

    None.

     

    Exhibit
C

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

    (See
Section 3.8 and 3.9 of Security Agreement)

    

    INTELLECTUAL
PROPERTY RIGHTS

    

    PATENTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Patent Description

                                        	 	
                                          Patent Number

                                        	 	
                                          Issue Date

                                        
	
                                          None.

                                        	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
                                          PATENT
      APPLICATIONS

                                        
	 
      	 	 
      	 	 
      
	
                                          Patent Application

                                        	 	
                                          Application Filing Date

                                        	 	
                                          Application Serial
Number

                                        
	
                                          None.

                                        	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
                                          TRADEMARKS

                                        
	 
      	 	 
      	 	 
      
	
                                          Trademark

                                        	 	
                                          Registration Date

                                        	 	
                                          Registration Number

                                        
	
                                          Silver
      Dollar Casino

                                        	 	
                                           June
      19, 2006

                                        	 	
                                          50959
      (Washington State)

                                        
	 
      	 	 
      	 	 
      
	
                                          Golden
      Nugget Casino

                                        	 	
                                           June
      19, 2006

                                        	 	
                                          50960
      (Washington State)

                                        
	 
      	 	 
      	 	 
      
	
                                          Club
      Hollywood Casino

                                        	 	
                                          March
      20, 2007

                                        	 	
                                          51666
      (Washington State)

                                        
	 
      	 	 
      	 	 
      
	
                                          Washington
      Players Club

                                        	 	
                                          June
      7, 2006

                                        	 	
                                          50928
      (Washington State)

                                        
	 
      	 	 
      	 	 
      
	
                                          Club
      BC’s

                                        	 	
                                           February
      26, 2007

                                        	 	
                                          51615
      (Washington State)

                                        
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
                                          TRADEMARK
      APPLICATIONS

                                        
	 
      	 	 
      	 	 
      
	
                                          Trademark Application

                                        	 	
                                          Application Filing Date

                                        	 	
                                          Application Serial
Number

                                        
	
                                          None.

                                        	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
                                          COPYRIGHTS

                                        
	 
      	 	 
      	 	 
      
	
                                          Copyright

                                        	 	
                                          Registration Date

                                        	 	
                                          Registration Number

                                        
	
                                          None.

                                        	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Exhibit D
- 1

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            COPYRIGHT
      APPLICATIONS

                                          
	 
      	 	 
      	 	 
      
	
                                            Copyright Application

                                          	 	
                                            Application Filing Date

                                          	 	
                                            Application Serial
Number

                                          
	
                                            None.

                                          	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	
                                            INTELLECTUAL
      PROPERTY LICENSES

                                          
	 
      	 	 
      	 	 
      
	
                                            Name of Agreement

                                          	 	
                                            Date of Agreement

                                          	 	
                                            Parties to Agreement

                                          
	
                                            None.

                                          	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    TRADENAMES

     

    
      
        
          
            
              
                
                  
                    	
                            Tradename

                          	 	
                            [Column Intentionally Left

                            Blank]

                          	 	
                            Registration Number

                          
	
                            Silver
      Dollar Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Casino SeaTac

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Casino & Restaurant SeaTac

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Casino Renton

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Casino Mill Creek

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Casino Tukwila

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Restaurant & Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Silver
      Dollar Saloon

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Golden
      Nugget Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Golden
      Nugget

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Gooden
      Nugget Casino SeaTac

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Gold
      Dollar Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Golden
      Dollar Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Club
      Hollywood Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Hollywood
      Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Club
      BC’s

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Bayou
      Bistro

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            B.C.
      MacDonalds

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Imperial
      Bingo Deli

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Imperial
      Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Royal
      Casino

                          	 	 
      	 	
                            Registered
      under UBI# 602-990-936

                          
	
                            Washington
      Gold

                          	 	 
      	 	
                            Registered
      under UBI#
602-990-936

                          

                  

                

              

            

          

        

      

    

    

    Exhibit D
- 2

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

    (See
Section 3.9 of Security Agreement)

    

    TITLE
DOCUMENTS

    

    I.
Vehicles subject to certificates of title:

     

    
      
        
          
            
              
                
                  
                    	
                            Description

                          	 	
                            Title Number

                          	 	
                            State Where Issued

                          
	
                            2001
      Chrysler Voyager

                          	 	
                            1C4GJ25B11B137214

                          	 	
                            Washington

                          
	
                            2006
      Chevrolet Silverado C1500

                          	 	
                            3GCEC14V56G134256

                          	 	
                            Washington

                          
	
                            1999
      Ford F350

                          	 	
                            1FDWF36S6XEB89071

                          	 	
                            Washington

                          
	
                            1997
      Ford Econoline E350

                          	 	
                            1FTJE34L1VHB78147

                          	 	
                            Washington

                          

                  

                

              

            

          

        

      

    

    

    II.
Aircraft/engines/parts, ships, railcars and other vehicles governed by federal
statute:

     

    
      
        
          
            
              
                	
                        Description

                      	 	
                        Registration Number

                      
	
                        None.

                      	 	 
      

              

            

          

        

      

    

    

    Exhibit
E

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
F

    (See
Section 3.9 of Security Agreement)

    

    FIXTURES

    

    I. Legal
description, county and street address of property on which Fixtures are
located:

     

    
      	
               
      

            	
              1.

            	
              16716
      Aurora Avenue North

            

    

    Shoreline,
WA 98133

    King
County, WA

    

    Legal
Description:

    

    PARCEL B
OF CITY OF SHORELINE BOUNDARY LINE ADJUSTMENT NO. SHLA 200301, AS RECORDED UNDER
RECORDING NO. 20030226900036, RECORDS OF KING COUNTY AUDITOR;

    

    SITUATED
IN THE CITY OF SHORELINE, COUNTY OF KING, STATE OF WASHINGTON.

    

    
      
        	  
    	
                2.

              	
                16622
      Aurora Avenue North

              

      

    

    Shoreline,
WA 98133

    King
County, WA

    

    Legal Description:

    

    TRACT 5,
SUPPLEMENTARY PLAT OF LOTS 1 TO 10, MAYWOOD ACRE TRACTS, ACCORDING TO THE PLAT
THEREOF RECORDED IN VOLUME 19 OF PLATS, PAGE(S) 74, IN KING COUNTY, WASHINGTON;
EXCEPT THE WEST 5 FEET THEREOF CONVEYED TO THE STATE OF WASHINGTON FOR ROAD BY
DEED RECORDED UNDER RECORDING NUMBER 8309281032; AND EXCEPT THAT PORTION THEREOF
CONVEYED TO THE CITY OF SHORELINE BY DEED RECORDED UNDER RECORDING NUMBER
20090605001368.

    

    
      	
               
      

            	
              3.

            	
              17917
      Bothell Everett Highway

            

    

    Bothell,
WA 98012

    King
County, WA

    

    Legal Description:

    

    LOT 1 OF
SHORT PLAT NO. ZA 9302024 SP, APPROVED JUNE 24, 1996 AND AND RECORDED JUNE 25,
1996 UNDER AUDITOR’S FILE NUMBER 9606255005 IN VOLUME 3, OF SHORT PLATS, PAGES
64 AND 65, RECORDS OF SNOHOMISH COUNTY, WASHINGTON;

    

    BEING A
PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP
27 NORTH, RANGE 5 EAST, W.M.;

    

    TOGETHER
WITH THAT PORTION OF THE SOUTHEAST 1⁄4 OF THE SOUTHEAST 1⁄4 OF SECTION 7, TOWNSHIP
27 NORTH, RANGE 5 EAST, W.M., RECORDS OF SNOHOMISH COUNTY, WASHIGTON, CONTAINED
IN DEED FROM THE STATE OF WASHIGTON RECORDED UNDER RECORDING NUMBER
200001040346;

    

    SITUATE
IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON.

     

    
      	
               
      

            	
              4.

            	
              3100
      East Valley Road

            

    

    Renton,
WA 98055

    King
County, WA

    

    Exhibit
F

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Legal Description:

    

    THAT
PORTION OF THE NORTH 1/2 OF THE NORTH 1/2 OF THE NORTHWEST 1/4 OF THE SOUTHEAST
1/4 OF SECTION 30, TOWNSHIP 23 NORTH, RANGE 5 EAST W.M., LYING WEST OF PRIMARY
STATE HIGHWAY NO. 5, AS ESTABLISHED BY DEED RECORDED UNDER KING COUNTY RECORDING
NO. 5332746;

     

    EXCEPT
THE WEST 30 FEET THEREOF FOR EAST VALLEY HIGHWAY;

     

    SITUATE
IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON.

     

    
      	
               
      

            	
              5.

            	
              19222
      International Boulevard

            

    

    SeaTac,
WA 98188

    King
County, WA

    

    Legal Description:

    

    LEGAL
DESCRIPTION OF THE NORTH LOT

     

    THAT
PORTION OF THE NORTH HALF OF THE NORTH HALF OF GOVERNMENT LOT 1, SECTION 4,
TOWNSHIP 22 NORTH, RANGE 4 EAST, W.M., IN KING COUNTY, WASHINGTON, LYING
EASTERLY OF STATE HIGHWAY NO. 1, (HIGHWAY 99) AND WESTERLY OF A LINE
DESCRIBED AS FOLLOWS:

     

    BEGINNING
AT THE NORTHEAST CORNER OF SAID SECTION 4, TOWNSHIP 22 NORTH, RANGE 4 EAST,
W.M., IN KING COUNTY, WASHINGTON, KNOWN AS THE COTTERILL CORNER; THENCE SOUTH 2o
25’ 32” WEST 30 FEET; THENCE NORTH 87o 42’ 40” WEST 412.28 FEET TO THE BEGINNING
OF SAID LINE; THENCE SOUTH 02o 28’ 39” WEST 375.82 FEET, MORE OR LESS
TO THE SOUTH LINE OF SAID NORTH HALF OF THE NORTH HALF OF GOVERNMENT LOT 1 AND
THE TERMINUS OF SAID LINE; EXCEPT THE SOUTH 185 FEET THEREOF; AND EXCEPT THAT
PORTION THEREOF, IF ANY, OF THE ABOVE DESCRIBED TRACT LYING EASTERLY OF A LINE,
DESCRIBED AS FOLLOWS:

     

    BEGINNING
AT THE NORTHEAST CORNER OF SAID SUBDIVISION AT A MONUMENT KNOWN AS THE BOSTIAN
SECTION CORNER; THENCE SOUTH 01o 04’ 05” WEST ALONG THE WESTERLY LINE OF
SNIVELY’S ANGLE LAKE TRACTS, ACCORDING TO THE PLAT RECORDED IN VOLUME 49 OF
PLATS, PAGE 13 – 14, IN KING COUNTY, WASHINGTON, AND ITS PRODUCED LINE THEREOF
30.01 FEET; THENCE NORTH 87o 29’ 00” WEST 558.08 FEET TO THE TRUE POINT OF
BEGINNING; THENCE SOUTH 02o28’ 39” WEST TO THE SOUTH LINE OF THE NORTH HALF OF
THE NORTH HALF OF SAID GOVERNMENT LOT 1 AND THE TERMINUS OF SAID
LINE.

     

    SUBJECT
TO EASEMENTS OF RECORD AND A 20’ WIDE VEHICULAR EASEMENT SERVING THE RESTAURANT
ON THE SOUTH FROM 192ND AVENUE.

     

    LEGAL
DESCRIPTION TO THE SOUTH LOT

     

    THE SOUTH
185 FEET OF THAT PORTION OF THE NORTH HALF OF THE NORTH HALF OF GOVERNMENT LOT
1, SECTION 4, TOWNSHIP 22 NORTH, RANGE 4 E.W.M., IN KING COUNTY, WASHINGTON,
LYING EASTERLY OF STATE HIGHWAY NO. 1 (HIGHWAY 99) AND WESTERLY OF A LINE
DESCRIBED AS FOLLOWS;

     

    BEGINNING
AT THE NORTHEAST CORNER OF THE SAID SECTION 4, TOWNSHIP 22 NORTH, RANGE 4
E.W.M., KNOWN AS THE COTTERILL CORNER; THENCE SOUTH 02o 25’ 32” WEST 30 FEET;
THENCE NORTH 87o 42’ 40” WEST 412.28 FEET; THENCE SOUTH 02o 28’ 39” WEST 375.82
FEET, MORE OR LESS TO THE SOUTH LINE OF SAID NORTH HALF OF THE NORTH HALF OF
GOVERNMENT LOT 1; EXCEPT COUNTY ROADS.  ALL SITUATED IN KING COUNTY
WASHINGTON.  SUBJECT TO UTILITIES EASEMENT OVER THE WEST 5 FEET OF THE
NORTH 40 FEET OF THE SOUTH 92 FEET OF THE TRACK DESCRIBED.

     

    Exhibit D
- 2

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    TOGETHER
WITH ALL EXISTING IMPROVEMENTS AS WELL AS ANY FUTURE IMPROVEMENTS
THERON.

     

    
      	
               
      

            	
              6.

            	
              14025
      Interurban Avenue South

            

    

    
      	
               
      

            	
              Tukwila,
      WA 98168

            

    

    King
County, WA

    

    Legal Description:

    

    LOTS 9,
11, 12 AND 13 IN BLOCK 8 OF HILLMAN'S SEATTLE GARDEN TRACTS, AS PER PLAT
RECORDED IN VOLUME 11 OF PLATS, PAGE 24, RECORDS OF KING COUNTY
AUDITOR;

    EXCEPT
THAT PORTION OF LOTS 11, 12 AND 13, SAID BLOCK 8, CONDEMNED FOR ROAD PURPOSES IN
KING COUNTY SUPERIOR COURT CAUSE NO. 109001.

     

    SITUATE
IN THE CITY OF TUKWILA, COUNTY OF KING, STATE OF WASHINGTON.

    

    
      	
               
      

            	
              7.

            	
              13010
      Highway 99 South

            

    

    Everett,
WA 98204

    Snohomish
County, WA

    

    Legal Description:

    

    PARCEL
A:

    

    BEGINNING
AT THE SOUTHEASTERLY CORNER OF TRACT 9 IN BLOCK 4 OF AVONDALE, AS PER PLAT
RECORDED IN VOLUME 10 OF PLATS, PAGE 108, RECORDS OF SNOHOMISH
COUNTY;

    

    THENCE
NORTHEASTERLY ALONG STATE ROAD NO. 1 FOR 100 FEET;

    

    THENCE
NORTHWESTERLY AT RIGHT ANGLES TO STATE ROAD NO. 1 FOR 300 FEET;

    

    THENCE
SOUTHWESTERLY PARALLEL TO STATE ROAD NO. 1 FOR 100 FEET TO SOUTHWESTERLY LINE OF
SAID TRACT 9;

    

    THENCE
SOUTHEASTERLY ALONG SAID SOUTHERLY LINE 300 FEET TO THE TRUE POINT OF
BEGINNING;

    

    SITUATE
IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON

    

    PARCEL
B:

    

    TRACT 9
IN BLOCK 4 OF AVONDALE, AS PER PLAT RECORDED IN VOLUME  10 OF PLATS,
PAGE 108, RECORDS OF SNOHOMISH COUNTY;

    

    EXCEPT
THAT PORTION DESCRIBED AS FOLLOWS:

    

    BEGINNING
AT THE SOUTHEASTERLY CORNER OF TRACT 9, BLOCK 4, AVONDALE, ACCORDING TO THE PLAT
THEREOF, RECORDED IN VOLUME 10 OF PLATS, PAGE 108, RECORDS OF SNOHOMISH COUNTY,
WASHINGTON;

    

    THENCE
NORTHEASTERLY ALONG STATE ROAD NO. 1 FOR 100 FEET;

    

    THENCE
NORTHWESTERLY AT RIGHT ANGLES TO STATE ROAD NO. 1 FOR 300 FEET;

    

    Exhibit D
- 3

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    THENCE
SOUTHWESTERLY PARALLEL TO STATE ROAD NO. 1 FOR 100 FEET TO THE SOUTHWESTERLY
LINE OF SAID TRACT 9;

    

    THENCE
SOUTHEASTERLY ALONG SAID SOUTHERLY LINE 300 FEET TO THE TRUE POINT OF
BEGINNING;

     

    SITUATE
IN THE COUNTY OF SNOHOMISH, STATE OF WASHINGTON.

    

    
      	
               
      

            	
              8.

            	
              711
      Powell Ave., SW

            

    

    Renton,
WA 98057

    King
County, WA

    

    Legal Description:

     

    LOT 9 AND
THE NORTH 166 FEET OF LOT 10 OF WASHINGTON TECHNICAL CENTER, AS PER PLAT
RECORDED IN VOLUME 122 OF FLATS, PAGES 98 THROUGH 102, RECORDS OF KING
COUNTY;

    

    TOGETHER
WITH THE EAST 37 FEET OF THE NORTH 459 FEET OF THAT PORTION OF TRACT B OF SAID
PLAT LYING SOUTH OF THE SOUTH LINE OF LOT 7 OF SAID PLAT:

    

    (ALSO
KNOWN AS LOT 4 OF CITY OF RENTON LOY LINE ADJUSTMENT NO. 012-85 RECORDED UNDER
NO. 8510189002.)

    

    SITUATED
IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON.

    

    II.  Name
and Address of Record Owner:

    

    As
pursuant to certain real property leases

    provided
in Exhibit A (VII) of the Operator.

    

    Exhibit D
- 4

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
G

    (See
Section 3.11 of Security Agreement and Definition of “Pledged
Collateral”)

    

    LIST OF
PLEDGED COLLATERAL, SECURITIES AND OTHER INVESTMENT PROPERTY

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	
                                                        MEMBERSHIP INTERESTS

                                                      	 
	 
      	 	 
      	 	 	 	 
      	 	 	 
	
                                                        Grantor

                                                      	 	
                                                        Issuer

                                                      	 	
                                                        Certificate

                                                        Number(s)

                                                      	 	
                                                        Type of

                                                        Membership Interest 

                                                      	 	
                                                        Percentage of Issued

                                                        and Outstanding

                                                        Membership Interests 

                                                        Owned by Grantor

                                                      	 
	
                                                        NG
      Washington II Holdings, LLC

                                                      	 	
                                                        NG
      Washington II, LLC

                                                      	 	 	2	 	
                                                        Voting

                                                      	 	 	100	%

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    BONDS

                                  
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	
                                    Issuer

                                  	 	
                                    Number

                                  	 	
                                    Face Amount

                                  	 	
                                    Coupon Rate

                                  	 	
                                    Maturity

                                  
	
                                    None.

                                  	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    GOVERNMENT
SECURITIES

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Issuer

                                      	 	
                                        Number

                                      	 	
                                        Type

                                      	 	
                                        Face Amount

                                      	 	
                                        Coupon Rate

                                      	 	
                                        Maturity

                                      
	
                                        None.

                                      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    OTHER
SECURITIES, INVESTMENT PROPERTY OR PARTNERSHIP INTERESTS

    (CERTIFICATED
AND UNCERTIFICATED)

    

    
      
        
          
            
              
                
                  
                    	
                            Issuer

                          	 	
                            Description of Collateral

                          	 	
                            Percentage Ownership
    Interest

                          
	
                            None.

                          	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

                  

                

              

            

          

        

      

    

    

    Exhibit
G

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
H

    (See
Section 3.1 and 3.8 of Security Agreement)

    

    OFFICES
IN WHICH FINANCING STATEMENTS TO BE FILED

    

    
      
        
          
            
              
                
                  	
                          Jurisdiction

                        	 	
                          Office

                        
	
                          Delaware

                        	 	
                          Delaware
      Secretary of State

                          401
      Federal Street, Suite 4

                          Dover,
      DE 19901

                        
	 	 	 
	
                          Washington

                        	 	
                          UCC

                          Department
      of Licensing

                          PO
      Box 9660

                          Olympia,
      WA
98507

                        

                

              

            

          

        

      

    

    

    Exhibit
H

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
I

    (See
Section 4.3 and 4.8 of Security Agreement)

    

    AMENDMENT

    

    This
Amendment, dated [________________, ___] is delivered pursuant to
Section 4.3 of the Security Agreement referred to below.  All
defined terms herein shall have the meanings ascribed thereto or incorporated by
reference in the Security Agreement.  The undersigned hereby certifies
that the representations and warranties in Article III of the Security
Agreement are and continue to be true and correct.  The undersigned
further agrees that this Amendment may be attached to that certain Pledge and
Security Agreement, dated July 23, 2010, between the undersigned, as a Grantor,
and Fortress Credit Corp., as Agent, (the “Security Agreement”)
and that the Collateral listed on Schedule I to this
Amendment shall be and become a part of the Collateral referred to in said
Security Agreement and shall secure all Obligations referred to in said Security
Agreement.

    

    
      
        	 
      	
                   

              	 
      
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	
                Name:  

              	
                   

              	 
      
	 
      	
                Title:

              	
                   

              	 
      

      

    

    

    Exhibit
I

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
I TO AMENDMENT

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            MEMBERSHIP INTERESTS

                                          
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	
                                            Issuer

                                          	 	
                                            Certificate

                                            Number(s)

                                          	 	
                                            Number of Units

                                          	 	
                                            Class of

                                            Membership

                                            Interests

                                          	 	
                                            Percentage of

                                            Outstanding

                                            Membership Interests

                                          
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	
                                            BONDS

                                          
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	
                                            Issuer

                                          	 	
                                            Number

                                          	 	
                                            Face Amount

                                          	 	
                                            Coupon Rate

                                          	 	
                                            Maturity

                                          
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    GOVERNMENT
SECURITIES

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Issuer

                                    	 	
                                      Number

                                    	 	
                                      Type

                                    	 	
                                      Face Amount

                                    	 	
                                      Coupon Rate

                                    	 	
                                      Maturity

                                    
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    OTHER
SECURITIES, INVESTMENT PROPERTY OR PARTNERSHIP INTERESTS

    (CERTIFICATED
AND UNCERTIFICATED)

    

    
      
        
          
            
              
                
                  	
                          Issuer

                        	 	
                          Description of Collateral

                        	 	
                          Percentage Ownership
    Interest

                        
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      

                

              

            

          

        

      

    

    [Add
description of custody accounts or arrangements with securities intermediary, if
applicable]

    

    COMMERCIAL
TORT CLAIMS

    

    
      
        
          
            
              
                
                  	
                          Description of Claim

                        	 	
                          Parties

                        	 	
                          Case Number; Name of Court where

                          Case was Filed

                        
	 
      	 	 
      	 	 
      

                

              

            

          

        

      

    

    

    Schedule
1 to Amendment

    Fortress/Nevada
Gold & Casinos

    Pledge
and Security Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
J

    (See
Section 4.3 and 4.5 of Security Agreement)

    

    FORM OF
ASSIGNMENT

    

    FOR VALUE
RECEIVED, the undersigned does hereby sell, assign and transfer to
______________________  one hundred percent (100%) of the membership
interests in NG Washington II, LLC, a Washington limited liability company (the
“Company”), represented by Certificate No. 1 (the “Membership Interests”),
standing in the name of the undersigned on the books of the Company and does
hereby irrevocably constitute and appoint ____________________ and its officers
as the undersigned’s true and lawful attorney, for and in name and stead, to
sell, assign and transfer all or any of the Membership Interests, and for that
purpose to make and execute all necessary acts of assignment and transfer
thereof; and to substitute one or more persons with like full power, hereby
ratifying and confirming all that said attorney or substitute or substitutes
shall lawfully do by virtue hereof.

     

    Dated:
_______________1

     

    
      
        
          
            	
                    NG
      Washington II Holdings, LLC

                  
	 
      
	
                    By:  

                  	
                    2

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

     

    
      
        

      

      1 leave
undated

    

    2 to be
executed by authorized officer of Pledgor

       

    
      Exhibit
J

      Fortress/Nevada
Gold & Casinos

      Pledge
and Security AgreementNOTE

     

    July
23, 2010

     

    NG
WASHINGTON II HOLDINGS, LLC, (the “Borrower”), promises
to pay Fortress Credit Funding II LP or its registered successors or assigns
(the “Lender”)
the aggregate unpaid principal amount of its Pro Rata Share of the Loans made by
the Lenders to Borrower pursuant to Article 2 of the
Agreement (as hereinafter defined), at the main office of Fortress Credit Corp.
in New York, New York, as Agent, together with interest on the unpaid principal
amount hereof at the rates and on the dates set forth in the Agreement (as
hereinafter defined).  Borrower shall pay the principal of and accrued
and unpaid interest on the Loans in full on the Applicable Maturity Date and
shall make such mandatory repayments as are required to be made under the terms
of Article 2 of
the Agreement (as hereinafter defined).

     

    The
Lender shall, and is hereby authorized to, record on the schedule attached
hereto, or to otherwise record in accordance with its usual practice, the date
and amount of the Loans and the date and amount of each principal repayment
hereunder.

     

    The
rights evidenced by this Note to receive principal and interest may only be
transferred if the transfer is registered on a record of ownership and the
transferee is identified as the owner of an interest in the obligation pursuant
to Section
13.2(d) or Section 13.3(g) of
the Agreement.  This Note may not at any time be endorsed to, or to
the order of, bearer.

     

    This Note
is one of the Notes issued pursuant to, and is entitled to the benefits of, the
Credit Agreement dated as of July 23, 2010 (as amended, amended and restated,
supplemented or otherwise modified and in effect from time to time, the “Agreement”), among
Borrower, the Lenders party thereto, including the Lender, and Fortress Credit
Corp., as Agent, to which Agreement reference is hereby made for a statement of
the terms and conditions governing this Note, including the terms and conditions
under which this Note may be prepaid or its maturity date
accelerated.  This Note is secured pursuant to the Collateral
Documents and guaranteed pursuant to the Guaranty, all as more specifically
described in the Agreement, and reference is made thereto for a statement of the
terms and provisions thereof.  Capitalized terms used herein and not
otherwise defined herein are used with the meanings attributed to them in the
Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      	 
      	
              NG WASHINGTON II HOLDINGS,
      LLC, as Borrower

            
	 
      	 
      
	 
      	
              By:  /s/
      Robert B. Sturges

            
	 
      	 
      
	 
      	
              Print
      Name: Robert B. Sturges

            
	 
      	 
      
	 
      	
              Title:
      Manager

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
OF LOANS AND REPAYMENTS OF PRINCIPAL TO NOTE OF FORTRESS CREDIT FUNDING II LP,
DATED JULY 23, 2010:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Date

                                  	 	
                                    Principal Amount of

                                    Loans

                                  	 	
                                    Payment Date

                                  	 	
                                    Principal Amount

                                    Repaid

                                  	 	
                                    Unpaid Balance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]