Document:

Exhibit
10.48

AMENDED
AND RESTATED

INVESTOR RIGHTS AGREEMENT

By and Among

MezzCo, L.L.C.

and

The Mezzanine Investors

named herein

and

the other
signatories hereto

Dated as of
November 30, 2006

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I - DEFINITIONS

  	
   

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.1
  Construction of Terms

  	
   

  	
  3

  
	
  Section 1.2
  Number of Interests

  	
   

  	
  3

  
	
  Section 1.3
  Defined Terms

  	
   

  	
  3

  
	
  Section 1.4
  Accounting Terms

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE II — REPRESENTATIONS AND WARRANTIES

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 2.1
  Representations of the Securityholders, the Individual Investors and BH/RE

  	
   

  	
  11

  
	
  Section 2.2
  Representations of the Company

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - RESTRICTIONS ON TRANSFER; CO-SALE;
  DRAG ALONG

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 3.1 Restrictions
  on Transfer

  	
   

  	
  11

  
	
  Section 3.2 Co-Sale
  Option of Mezzanine Investors

  	
   

  	
  11

  
	
  Section 3.3 Drag-Along
  Obligations

  	
   

  	
  11

  
	
  Section 3.4
  Contemporaneous Transfers

  	
   

  	
  11

  
	
  Section 3.5
  Assignment

  	
   

  	
  11

  
	
  Section 3.6
  Gaming Restrictions

  	
   

  	
  11

  
	
  Section 3.7
  Prohibited Transfers

  	
   

  	
  11

  
	
  Section 3.8
  Replacement of Unsuitable Securityholder

  	
   

  	
  11

  
	
  Section 3.10
  Gaming Authorities and Gaming Approval

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - RIGHTS TO PURCHASE

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 4.1
  Right to Participate in Certain Sales of Additional Securities and Indebtedness

  	
   

  	
  11

  
	
  Section 4.2
  Assignment of Rights

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - REGISTRATION RIGHTS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 5.1
  Piggyback Registration Rights

  	
   

  	
  11

  
	
  Section 5.2
  Parent Registrations

  	
   

  	
  11

  
	
  Section 5.3
  Other Registrations

  	
   

  	
  11

  
	
  Section 5.4
  Registrable Interests

  	
   

  	
  11

  
	
  Section 5.5
  Further Obligations of the Company

  	
   

  	
  11

  
	
  Section 5.6
  Indemnification; Contribution

  	
   

  	
  11

  
	
  Section 5.7 Rule
  144 Requirements

  	
   

  	
  11

  
	
  Section 5.8
  Market Stand-Off

  	
   

  	
  11

  
	
  Section 5.9
  Transfer of Registration Rights

  	
   

  	
  11

  
	
  Section 5.10
  Other Agreements

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI — RESERVED

  	
   

  	
  11

  

 i
 

 

	
  ARTICLE VII — AFFIRMATIVE COVENANTS OF THE
  COMPANY, BH/RE AND THE MEMBER

  	
   

  	
  11

  
	
  Section 7.1
  Additional Indebtedness

  	
   

  	
  11

  
	
  Section 7.2
  Restrictions on Equity Interests

  	
   

  	
  11

  
	
  Section 7.3 Put
  Right

  	
   

  	
  11

  
	
  Section 7.4
  Communication with Gaming Authorities

  	
   

  	
  11

  
	
  Section 7.5 Tax
  Covenants

  	
   

  	
  11

  
	
  Section 7.6
  Books and Records

  	
   

  	
  11

  
	
  Section 7.7
  Financial and Other Information

  	
   

  	
  11

  
	
  Section 7.8
  Notices

  	
   

  	
  11

  
	
  Section 7.9
  Existence, Good Standing and Legal Requirements

  	
   

  	
  11

  
	
  Section 7.10
  Election of Directors; Observation Rights

  	
   

  	
  11

  
	
  Section 7.11 CMBS
  Guarantees; Reimbursements

  	
   

  	
  11

  
	
  Section 7.12
  Costs, Expenses and Taxes

  	
   

  	
  11

  
	
  Section 7.13
  Indemnification

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII NEGATIVE COVENANTS OF THE COMPANY AND
  THE MEMBER

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 8.1
  Transactions with Affiliates

  	
   

  	
  11

  
	
  Section 8.2
  Business Conducted

  	
   

  	
  11

  
	
  Section 8.3 Tax
  Classification

  	
   

  	
  11

  
	
  Section 8.4
  Limitations on Incurrence of Indebtedness and Issuance of Interests

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX - MISCELLANEOUS PROVISIONS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 9.1
  Survival of Covenants

  	
   

  	
  11

  
	
  Section 9.2
  Legends on Securities

  	
   

  	
  11

  
	
  Section 9.3
  Amendment and Waiver

  	
   

  	
  11

  
	
  Section 9.4
  Notices

  	
   

  	
  11

  
	
  Section 9.5
  Headings

  	
   

  	
  11

  
	
  Section 9.6
  Counterparts; Facsimiles

  	
   

  	
  11

  
	
  Section 9.7
  Remedies; Severability

  	
   

  	
  11

  
	
  Section 9.8
  Entire Agreement; No Conflict

  	
   

  	
  11

  
	
  Section 9.9
  Adjustments

  	
   

  	
  11

  
	
  Section 9.10 Law
  Governing

  	
   

  	
  11

  
	
  Section 9.11
  Successors and Assigns

  	
   

  	
  11

  
	
  Section 9.12
  Consent to Jurisdiction; Waiver of Jury Trial

  	
   

  	
  11

  
	
  Section 9.13 No
  Third Party Beneficiaries

  	
   

  	
  11

  
	
  Section 9.14
  Non-Disclosure

  	
   

  	
  11

  
	
  Section 9.15
  Term

  	
   

  	
  11

  

 

 ii
 

 

	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
   

  	
  Form of CMBS Documents

  
	
  Exhibit B

  	
   

  	
  Form of Joinder Agreement

  
	
  Exhibit C

  	
   

  	
  Form of Pledge Agreement

  
	
  Exhibit D

  	
   

  	
  Description of the Premises

  

 

	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule 8.1

  	
   

  	
  Transactions with Affiliates

  

 

 

 iii

 

AMENDED AND RESTATED INVESTOR RIGHTS
AGREEMENT

THIS
AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT
(the “Agreement”) is made as of
this 30th day of November, 2006 by and among MezzCo,
L.L.C., a Nevada limited liability company (the “Company”), EquityCo, L.L.C., a Nevada limited liability
company and the sole member of the Company (“EquityCo”
or the “Member”), the persons identified on
the signature pages hereto as the Mezzanine Investors (each, a “Mezzanine Investor” and collectively, the “Mezzanine Investors”) and any other member
of the Company or holder of securities convertible into securities of the
Company who from time to time becomes party to this Agreement by execution of a
Joinder Agreement in substantially the form attached hereto as Exhibit A
(together with the Member, the “Non-Mezz Investors”).  The Mezzanine Investors and the Non-Mezz
Investors are herein collectively referred to as the “Securityholders” and each a “Securityholder.”

WHEREAS, the Securityholders, the Company and the other signatories thereto are
parties to that certain Investor Rights Agreement dated as of August 9, 2004
(the “Original Investor Rights Agreement”)
pursuant to which, among other things, the Mezzanine Investors acquired
warrants (the “Original Warrants”)
in an aggregate amount of 17,500 of the Company’s units (subject to adjustment
and increase as provided in the Original Warrants) representing membership
interests in the Company, consisting of, Class B Units or if the holder so
elects, either Class A Units or a combination of Class A Units and Class B
Units exercisable at a price per unit of $.01;

WHEREAS, the Company has indicated (i) its desire to enter into that certain
credit facility with Column Financial Inc., in the aggregate amount of up to
$820,000,000 in the form attached hereto as Exhibit A attached hereto (the “CMBS Facility”), and (ii) in connection therewith, the Company and the Securityholders have
determined it is in their best interest to amend and restate the Original
Investor Rights Agreement and the terms of the Original Warrants (each such
amended and restated Original Warrant, a “Warrant”
and collectively, the  “Warrants”); and

WHEREAS, the parties hereto agree to amending the terms of the Original Warrants
and the manner in which the outstanding securities of the Company, now or
hereafter outstanding, held by them will be held, Transferred and voted.

NOW,
THEREFORE, in consideration of the
foregoing and the mutual covenants and agreements hereinafter set forth, the
parties hereto agree as follows:

ARTICLE I
- DEFINITIONS

Section 1.1  Construction of Terms.  As used herein, the masculine, feminine or
neuter gender, and the singular or plural number, shall be deemed to be or to
include the other genders or number, as the case may be, whenever the context
so indicates or requires.

Section 1.2  Number of Interests.  Whenever any provision of this Agreement
calls for any calculation based on a number of Securities held by a
Securityholder, the number of Securities deemed to be owned or held by that
Securityholder shall be the total number of 

Interests
then owned or held by the Securityholder, plus the total number of Interests
issuable upon the conversion of any convertible securities or the exercise of
any vested options, warrants or subscription rights then owned or held by such
Securityholder.

Section 1.3  Defined Terms.  The
following capitalized terms, as used in this Agreement, shall have the meanings
set forth below.

“Affiliate” of a specified
Person means any other Person which, directly or indirectly, controls, is
controlled by or is under common control with, the specified Person, including,
without limitation, any Person:  (a)
which beneficially owns or holds, directly or indirectly, ten percent (10%) or more
of (i) any class of voting stock of the specified Person, or (ii) the Equity
Interests (with voting capacity) of a Person; or (b) who (i) is a director or
executive officer (or individual with similar responsibilities) of the
specified Person or (ii) if the Person does not have directors or executive
officers, has similar responsibilities to a director or executive officer.  The term “control” (including, with
correlative meanings, the terms “controlled by” and “under common control with”)
means the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of the specified Person.  The term “beneficial ownership” shall have
the meaning set forth in Rule 13d-3 promulgated by the Commission under the
Exchange Act.

“Aladdin Bazaar” means Aladdin
Bazaar, LLC, a Delaware limited liability company.

“Aladdin Gaming” means Aladdin
Gaming, LLC, a Nevada limited liability company.

 “Applicable Law” means any law,
statute, order, treaty, rule or regulation or determination of an arbitrator or
a court or other Governmental Authority (including the Gaming Authorities), in
each case applicable to or binding upon such Person or any of its property or
to which such Person or any of its property is subject.

“Appraiser” means an
independent nationally recognized investment bank or other qualified financial
institution acceptable to the Company and the Majority Holders.

“Approved Officer” means, as to
any Person that is a corporation, limited liability company, limited
partnership or similar entity, the president, the chief executive officer, the
chief operating or chief financial officer, treasurer (or assistant treasurer),
controller or any vice-president, manager, managing member or other authorized
Person, whose signatures and incumbency have been certified to the Mezzanine
Investors in a certificate delivered to the Mezzanine Investors.

“Associate” has the
meaning given to such term in Rule 405 promulgated under the Securities Act.

“Bay
Harbour Investor” has the meaning assigned to such term in the
definition of “Investor Group”.

“BH/RE” means BH/RE,
L.L.C., a Nevada limited liability company.

“BH/RE-Starwood Agreement” means the
Agreement, made and entered into as of August 9, 2004, by and between Starwood
Nevada Holdings, LLC, a Nevada limited liability 

 2
 

corporation,
Sheraton Operating Corporation, a Delaware Corporation BH/RE, EquityCo, OpBiz
and, for certain purposes as described therein, Starwood Hotels & Resorts
Worldwide, Inc., a Maryland corporation.

“Boulevard Invest” means
Boulevard Invest, LLC, a Delaware limited liability company.

“Business” means,
collectively, (i) the rental of guest, conference or banquet rooms at the
Premises; (ii) the operation of the Casino at the Premises; (iii) the operation
of restaurant, bar or banquet services at the Premises; (iv) the rental of
commercial, entertainment or retail space to tenants at the Premises; and (iv)
the operation of the theater on the Premises.

“Business
Day” means any day excluding Saturday, Sunday and any day which shall be in
Nevada, Texas or the City of New York a legal holiday or a day on which banking
institutions authorized by law or other governmental action to close.

“Capital
Expenditures” means all expenditures by the
Company or a Subsidiary for the acquisition, leasing (pursuant to a Capital
Lease), renovation or repair of assets or additions to equipment (including
replacements, capitalized repairs and improvements) which are required to be
capitalized under GAAP.

“Capital Lease” means any
lease of Property by the Company or a Subsidiary that, in accordance with GAAP,
is required to be reflected as a liability on the balance sheet of the Company
or such Subsidiary.

“Casino” means the
portion of the Premises operated as a casino, including entertainment and music
areas, but excluding the Hotel Premises.

“Casualty
Event” means the damage, destruction or Taking, as the case may be, of
Property, or any part thereof, of the Company or any Subsidiary.

“Closing” means the closing of the
transactions contemplated by the Restructuring Documents.

“Closing Date” means November 30, 2006.

“CMBS Documents” means the CMBS
Facility, the notes issued thereunder, the security agreements and guaranty
agreements executed in connection therewith, all other documents, agreements
and certificates executed or delivered in connection therewith or in connection
with any other obligations owing to the CMBS Lender from time to time and any
refunding, refinancing or replacement thereof to the extent permitted under the
CMBS Documents.

“CMBS Facility” has the meaning
given such term in the recitals

“CMBS
Lender” means Column Financial, Inc., as lender under the CMBS Facility,
together with its successors and assigns.

“Code” means the
Internal Revenue Code of 1986, as amended.

 3
 

“Collateral
Agent” means Post Advisory Group, L.L.C., as collateral agent under the
Pledge Agreement until a successor replaces it in accordance with the
provisions of the Collateral Agency Agreement dated as of the date hereof, and
each successor thereafter.

“Commission” means the
Securities and Exchange Commission.

“Company” has the meaning
assigned to such term in the first paragraph of this Agreement and any
successor or successors thereto.

“Competitor” means (i) any
Person that operates, or owns 50% or more of the Equity Interests in, one or
more casinos or casino/hotels, (ii) any Person that engages in the management
of one or more casinos or casino/hotels as a material portion of its business,
or (iii) any Person that directly or indirectly is in control of, is controlled
by or under common control with any of the foregoing.

“Condition of the Business” means the
financial condition and results of operations of the Business (taken as a
whole).

“Consolidated” means, in
respect of any Person, as applied to any financial or accounting term, such
term determined on a consolidated basis in accordance with GAAP (except as
otherwise required herein) for such Person and all of its consolidated
Subsidiaries.

“Disposition” means with
respect to any Property, any sale, lease, sale and leaseback, assignment, conveyance,
transfer (including as a result of a Taking), contribution or other disposition
thereof.

“Earl
Investor” has the meaning assigned to such term in the
definition of “Investor Group”.

“EBITDA” means, with respect to the Company and its
consolidated Subsidiaries for any period, without duplication, (a) the sum of
(i) Net Income, (ii) Interest Expense, (iii) federal, state and local income
taxes deducted in determining Net Income, and (iv) depreciation and
amortization and other non-cash items properly deducted in determining Net
Income, in each case on a consolidated basis for the Company and its
Subsidiaries for such period, calculated on a consolidated basis in accordance
with generally accepted accounting principles, minus (b) non-cash items properly
added in determining Net Income for such period (calculated on a consolidated
basis in accordance with generally accepted accounting principles).  Any and all payments made to Northwind in
cash pursuant to the Energy Services Agreement shall be deemed to be operating
expenses of the Company for the purpose of determining EBITDA.

“Energy
Premises” means the real property on which the utility plant
owned and operated by Northwind is located and the adjoining optional
improvement site and OpBiz’s right, title and interest in such utility plant.

“Energy
Premises Lease” means that certain lease, dated December 3, 1997,
as amended to date, between Northwind and Aladdin Gaming as amended from time
to time, and assigned to OpBiz.

 4
 

“Energy
Services Agreement” means that certain Energy Service Agreement dated
as of September 24, 1998 by and between Aladdin Gaming and Northwind as amended
from time to time, and assigned to by OpBiz.

“Environmental
Laws” mean all federal, state and local laws, rules, regulations, ordinances,
and consent decrees relating to health, safety, hazardous substances, and
environmental matters applicable to the business and facilities of the Company
or a Subsidiary (in each case whether or not owned by it).  Such laws and regulations include but are not
limited to the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et
seq., as amended; the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. § 9601 et seq., as amended; the Toxic Substances
Control Act, 15 U.S.C. § 2601 et seq., as amended; the Oil Pollution Act, 33
U.S.C. § 2701 et seq., as amended; the Clean Air Act, 42 U.S.C. § 7401 et seq.,
as amended; the Hazardous Material Transportation Act, 49 U.S.C. § 1801 et
seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the
Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the Nevada
Hazardous Materials law (NRS Chapter 459); the Nevada Solid Waste/Disposal of
Garbage or Sewage law (NRS 444.440 to 444.650, inclusive); the Nevada Water
Controls/Pollution law (NRS Chapter 445A); the Nevada Air Pollution law (NRS
Chapter 445B); the Nevada Cleanup of Discharged Petroleum law (NRS 590.700 to
590.920, inclusive); the Nevada Control of Asbestos law (NRS 618.750 to
618.850, inclusive); the Nevada Appropriation of Public Waters law (NRS 533.324
to 533.4385, inclusive); and the Nevada Artificial Water Body Development
Permit law (NRS 502.390).

“EquityCo” means
EquityCo, L.L.C., a Nevada limited liability company.

“Equity
Interests” means (i) with respect to the Company, (A)
Interests, (B) Preferred Interests, and (C) any warrants, options or other
rights entitling the holder thereof to purchase or acquire Interests or
Preferred Interests, and (ii) with respect to any other Person, shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any such equity interests.

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

“ERISA
Affiliate” means any trade or business (whether or not
incorporated) which together with the Company or any of its Subsidiaries would
be treated as a single employer under the provisions of Title I or Title IV of
ERISA.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, including all rules
and regulations issued thereunder.

“Excluded Securities” means (a)
Interests or options to purchase Interests issued to employees of the Company
and its Subsidiaries (other than employees that are affiliated with BH/RE) in
an aggregate amount not to exceed 6,000 of the Company’s Class B Units (subject
to adjustments for splits, dividends, recapitalizations and similar changes
affecting the Class B Units), (b) Interests issued to the Member in accordance
with Section 7.1 (Additional Debt) of this Agreement, provided that the
number of Warrant Interests to be issued pursuant to the Warrants is adjusted
in accordance with Section 2.2(f)(iv) thereof, (c) the options to
purchase 3,000 of the Company’s Class B Units (subject to adjustments for
splits, dividends,

 5
 

recapitalizations
and similar changes affecting the Class B Units) granted to Michael V. Mecca,
the CEO of OpBiz, (d) any Warrant Interests issued upon exercise of the
Warrants, (e) any Interests, options, warrants or other securities convertible
into or exchangeable for Interests that are issued as consideration for an
acquisition, or as a replacement of equity incentives existing at the acquired
company or as newly granted equity incentive compensation to the employees of
the business being acquired, and (f) any Indebtedness under the CMBS Facility,
and any Indebtedness incurred in an arms-length transaction with a third-party
lender to refinance the outstanding balance of and any accrued interest on the
CMBS Facility (including any premiums and reasonable fees and expenses incurred
in connection with such refinancing) or any successive refinancings thereof
that comply with the restrictions on refinancings set forth in this clause (f)
..

“Expiration Date” shall have the
meaning specified in the Warrants.

“Fiscal Quarter” means any of
the quarterly accounting periods of the Company, ending on March 31, June 30,
September 30 and December 31 of each year.

“Fiscal Year” means the
Company’s Fiscal Year for financial accounting purposes, which ends on December
31 of each year.  Any reference in this
Agreement to “Fiscal Year” immediately followed by a specific year (e.g.,
Fiscal Year 2003) means the Fiscal Year ending on December 31 of such year.

“Gaming
Approvals” means all applicable gaming licenses, registrations,
permits or exemptions or findings of suitability or waivers from the licensing
requirements or any other approvals or authorizations required by any Gaming
Authority.

“Gaming
Authority” means any of the Nevada Gaming Commission, the
Nevada State Gaming Control Board, the Clark County Liquor and Gaming Licensing
Board and any other gaming regulatory body or any agency or any successor which
has, or may at any time after the Closing Date have, jurisdiction over the
gaming activities of OpBiz or its affiliates or those conducted at the Premises
or any successor to such authority.

“Gaming
Laws”  means the provisions of the
Nevada Gaming Control Act, as amended from time to time, all regulations of the
Nevada Gaming Commission promulgated thereunder, as amended from time to time,
the provisions of the Clark County Code, as amended from time to time, and all
other laws, statutes, rules, rulings, orders, ordinances, regulations and other
Legal Requirements of any Gaming Authority.

“Gaming
License” means any license, qualification, franchise,
accreditation, approval, registration, permit, finding of suitability or other
authorization relating to gaming, the gaming business or the operation of a
casino under the Gaming Laws or required by the Gaming Authorities or otherwise
necessary for the operation of gaming, the gaming business or a resort casino.

“Governmental
Authority” means any national, state or local government
(whether domestic or foreign), any political subdivision thereof or any other
governmental or judicial, authority, body, agency, bureau or entity (including
the Gaming Authorities, any zoning authority, the Federal Deposit Insurance
Corporation, the Comptroller of the Currency or the 

 6
 

Board
of Governors, any central bank or any comparable authority) or any arbitrator
with authority to bind the party at law.

“Governing
Body” and “Governing Bodies”
means any board of directors, board of managers, board of advisors or similar
governing or advisory body of the Company and its Subsidiaries.

“Hotel
Investor” means any Person (other than the Earl Investor and
the Bay Harbour Investor) approved in writing by the Majority Holders to hold
Equity Interests, directly or indirectly of the Company and in any event shall
include Starwood if Sheraton becomes the Manager.

“Hotel
Premises” means the portion of the Premises operated as a
hotel, including all rooms and suites, amenities, restaurants, conference
centers, meeting, banquet and other public rooms, spa, parking spaces and other
facilities of the hotel portion of the Premises, but excluding the Casino.

“Identified Hotel Manager” means any of
Sheraton, Hilton Hotels Corporation, Hyatt Corporation, Marriott International
Inc. or Loew’s Hotels Holding Corporation (or any Affiliate of any of the
foregoing primarily engaged in the management of hotels of at least a like
quality to a Sheraton), or any replacement of comparable standing in the hotel
management industry that is (i) acceptable to the Majority Holders and (ii)
identified on a list delivered to the Mezzanine Investors by the Company no
more frequently than once every two years, commencing on August 9, 2006.

“Indebtedness” means, without
duplication, with respect to the Company and its Subsidiaries:  (a) all obligations of such Person for
borrowed money or for the deferred purchase price of Property or services
(other than current accounts payable incurred in the ordinary course of
business, and accrued expenses and liabilities incurred in the ordinary course
of business), and all obligations evidenced by bonds, debentures, notes, or
similar instruments; (b) all obligations and liabilities of any Person secured
by any Lien on the Property of the Company or any Subsidiary, with respect to
which obligations and liabilities neither the Company nor any of its Consolidated
Subsidiaries shall have assumed or become liable for the payment thereof; provided,
however, that all such obligations and liabilities which are limited in
recourse to such Property shall be included in Indebtedness only to the extent
of the book value of such Property that would be shown on a Consolidated
balance sheet of the Company and its Subsidiaries prepared in accordance with
GAAP; (c) all obligations or liabilities created or arising under any Capital
Lease or conditional sale or other title retention agreement with respect to
Property acquired by the Company or any of its Subsidiaries, even if the rights
and remedies of the lessor, seller or lender thereunder are limited to
repossession of such Property; provided, however, that all such obligations and
liabilities which are limited in recourse to such Property shall be included in
Indebtedness only to the extent of the book value of such Property that would
be shown on a Consolidated balance sheet of the Company and its Subsidiaries
prepared in accordance with GAAP;  and
(d) all obligations and liabilities under guaranties, indemnities, and for
reimbursement in connection with letters of credit and surety bonds; provided,
however, that for purposes of this Agreement, Indebtedness shall not include
indebtedness incurred in connection with the financing of the utility plant
owned and operated by Northwind and located on the Energy Premises.  For the purposes of this Agreement, the
Indebtedness of any Person shall include the proportion of Indebtedness of any
partnership in which such Person is a general 

 7
 

partner or joint venturer
with liability for the indebtedness of such Person but only to the extent of
such Person’s interest in such general partnership or joint venture.

“Individual
Investor” means each of Douglas Teitelbaum, Robert Earl and each of
their Transferees.

“Interest Expense” means, with respect to the Company for any
period, the aggregate interest expense of the Company and its consolidated
Subsidiaries during such period determined on a consolidated basis, and shall
in any event include, without limitation, (i) the amortization of debt
discounts, (ii) the amortization of all fees payable in connection with the
incurrence of indebtedness to the extent included in interest expense and (iii)
the portion of any obligations in respect of Capital Leases allocable to
interest expense (recognizing that, in any event, no portion of “Debt Service”
or “Return on Equity” under the Energy Service Agreement shall be treated as
interest expense on Capital Lease obligations, regardless of GAAP, but instead
shall be treated as a component of EBITDA as set forth in the definition of
EBITDA).

“Interests” means the
Company’s membership interests (whether voting or non-voting) as authorized
under the Company’s Third Amended and Restated Operating Agreement, dated as of
November 30th, 2006,
together with any interests issued or issuable with respect thereto (whether by
way of an interest dividend or stock split or in exchange for or in replacement
of such interests or otherwise in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization).

“Investor Group” means,
collectively, Robert Earl, an individual resident in the State of Florida, or
one or more Affiliates of such individual (the “Earl Investor”), Bay
Harbour Management, LC,  a Florida
company, or an Affiliate thereof (the “Bay Harbour Investor”), and, at
the option of the Earl Investor and the Bay Harbour Investor (including for
this purpose Douglas P. Teitelbaum), a Hotel Investor or any successor to any
of such Persons that the CMBS Lender has approved in writing.

“Issuer Group” means the
Company, EquityCo, BH/RE and the owners of their Equity Interests and their
equity sponsors.

“Leases” mean  collectively, all space leases, occupancy agreements,
subleases, licenses, permits, concessions or other agreements or arrangements,
whether written or oral, and all agreements for the use or occupancy of all or
any portion of the Premises, entered into by the Company or any of its
Subsidiaries or by any Person on behalf of the Company or any of its
Subsidiaries or assumed by Aladdin Gaming and assigned to the Company or any of
its Subsidiaries, together with any and all extensions or renewals thereof,
excluding room rentals.

“Leasing Manager” means any
leasing manager designated by the Company pursuant to a Leasing Services
Agreement and approved in writing by the Majority Holders prior to the
retention thereof.

“Leasing Services
Agreement” means any contract or agreement pursuant to which
any Person other than the Company or an employee of the Company is granted
authority to manage the leasing of the Retail Shops or any other portion of the
Premises.

 8
 

“Legal
Requirements”  means all laws,
ordinances, rules, regulations, codes, statutes, orders, permits, licenses,
authorizations, directives and requirements of any Governmental Authority
applicable to the Company or any subsidiary, the Mezzanine Investors or the
Premises or any portion thereof, including all applicable licenses, building
codes, rent stabilization laws, zoning, planning, use and subdivision
ordinances, flood disaster, health, safety and environmental laws and
regulations, and the Americans with Disabilities Act of 1990, Pub. L. No.
89-670, 104 Stat. 327 (1990), as amended, and all regulations promulgated
pursuant thereto.

“Liens” mean any
interest in Property securing an obligation owed to, or a claim by, a Person
other than the owner of the Property, whether such interest is based on the
common law, statute, or contract, and including, without limitation, (a) a
security interest, charge, claim, or lien arising from a mortgage, deed of
trust, encumbrance, pledge, hypothecation, assignment, deposit arrangement,
agreement, or conditional sale or a lease, consignment or bailment for security
purposes, or (b) any reservation, exception, encroachment, easement,
right-of-way, condition, restriction or other title exception or encumbrance
affecting Property.

“Majority
Holder” means the holder or holders of at least 50% of the
Warrant Interests issuable upon the exercise of all outstanding Warrants.

“Management Agreement” means (a) the
Management Contract for Planet Hollywood Hotel and Casino, a Sheraton Hotel,
between Sheraton and OpBiz, dated April 23, 2003, together with the
modifications thereto set forth in the BH/RE-Starwood Agreement, and any other
amendment or modification thereto made in accordance with the terms of such
agreement or (b) any other management agreement entered into in substitution,
amendment or modification of the foregoing which has been approved in writing
by the Majority Holders hereof prior to the effectiveness thereof.

“Management
Pool” means options to purchase up to 6,000 Class B Units of the Company
(subject to adjustments for splits, dividends, recapitalizations and similar
changes affecting the Class B Units) to employees or management (other than
Michael V. Mecca) of the Company and its Subsidiaries.

“Manager” means
(a) any Identified Hotel Manager or any other Person approved in writing
by the Majority Holders or (b) any replacement manager designated by the
Company and approved in writing by the Majority Holders prior to the retention
thereof; provided, that the consent of the Majority Holders shall not be
required in the event that the Company replaces any Manager with an Identified
Hotel Manager.

“Material
Adverse Effect” means an event has occurred or condition exists
that has or would reasonably be expected to have a material adverse effect on
the (i) Condition of the Business, (ii) gaming business (taken as a whole)
conducted by casinos located on the portion of Las Vegas Boulevard in Clark
County, Nevada bounded by Blue Diamond Road at the south end and Oakey
Boulevard at the north end, or (iii) on the validity or enforceability of this
Agreement, the Warrants, the other Restructuring Documents or the rights or
remedies of the Mezzanine Investors hereunder or thereunder; provided, that the
material adverse effect was not the direct or indirect result of any action or
inaction of the Company or any Subsidiary or Affiliate of the Company taken at
the written request of any of the Mezzanine Investors.

 9
 

“Material
Operating Agreements” means (a) 
the Management Agreement (if any), the Leasing Services Agreement (if
any), the Energy Premises Lease, the Energy Service Agreement, the Parking
Agreement, the REA, the Planet Hollywood License Agreement and any casino
operating agreement entered into in accordance with this Agreement) and any
contracts or agreements entered into in replacement thereof or substitution
therefor, and (b) any other Operating Agreements entered into after the Closing
Date by the Company or any Manager or any other Person on their behalf with
respect to the Premises or other Property, which (i) has a noncancellable term
which exceeds one (1) year in length and requires in excess of an aggregate of
$1,500,000 per annum in payments by or on behalf of the Company or any Manager
or (ii) requires in excess of an aggregate of $1,500,000 per annum in payments
by or on behalf of the Company or any Manager regardless of the term of such
Operating Agreement; provided, that contracts or agreements entered into in
respect of events or performances at the theater on the Premises will be
excluded from Material Operating Agreements so long as any such contracts or
agreements (x) are entered into by the Company or any Manager with a headline
performing artist of international repute and standing and the average ticket
price for any such performance or event shall be at least $100 per ticket or
(y)  have a term or duration of less than
sixty (60) days and are entered into by the Company or any Manager with a
Person who is not covered by clause (x) above.

“Member” shall have the meaning in
the recitals hereto.

“Mezzanine
Investors” shall have the meaning in the recitals hereto.

“Net Income”
means with respect to the Company for any period, the consolidated net income
(or net loss) of the Company and its Subsidiaries for such period but excluding
any extraordinary gains or losses or any gains or losses from the sale or
disposition of assets other than in the ordinary course of business, all
computed and calculated in accordance with GAAP.

“Northwind” means
Northwind Aladdin, LLC, a Nevada limited liability company.

“OpBiz” means OpBiz,
L.L.C., a Nevada limited liability company.

“Operating Agreements” mean,
collectively, all agreements entered into by the Company, any Subsidiary
thereof or by any other Person on behalf of the Company or any Subsidiary
thereof or assumed by the Company or any Subsidiary thereof, relating to the
ownership, operation or maintenance of the Premises or any other Property.

“Organizational Documents” means, (a) for
any corporation, the Articles of Incorporation and by-laws of such and all
amendments thereto, (b) for any partnership, collectively, the general or
limited partnership agreement, as the case may be, with all amendments thereto,
together with if appropriate, a certificate of limited partnership and all
amendments thereto, and (c) for any limited liability company, the operating
agreement and any other similar agreements governing the organization of the
limited liability company and the management of its business and affairs, and
all amendments thereto.

“Parking Agreement” means that
certain Common Parking Area Use Agreement, dated as of February 26, 1998, by
and between Aladdin Gaming and Boulevard Invest, as amended and modified from
time to time and as assumed by Aladdin Gaming and as assumed by OpBiz.

 10
 

“Permits” means all
licenses, permits, franchises, authorizations, certificates, approvals and
consents, including, without limitation, all certificates of occupancy, all
environmental, liquor, health and safety licenses of all Governmental
Authorities which are material to the conduct of the Business and the
ownership, use, occupation and operation of the Premises.

“Permitted
Indebtedness” means (a) Indebtedness
incurred in connection with the CMBS Facility and any Indebtedness
incurred in refinancings of the outstanding principal amount of the CMBS
Facility (together with any accrued interest, premiums, and any reasonable fees
and expenses incurred therewith);
provided that in no event shall principal amount thereof exceed $820 million
less the amount of any repayments of principal and any permanent reductions in
the commitments, and (b) Indebtedness incurred in connection with the financing
of the utility plant owned and operated by Northwind and located on the Energy
Premises.

“Person” means any
individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability
company, Governmental Authority, or any other entity.

“Plan” means any
pension plan, as defined in Section 3(2) of ERISA (other than a Multiemployer
Plan), which is maintained or contributed to by (or to which there is an
obligation to contribute of) the Company or an ERISA Affiliate and each such
plan for the five-year period immediately following the latest date on which
the Company or an ERISA Affiliate maintained, contributed to or had an
obligation to contribute to such plan.

“Planet
Hollywood License Agreement” means the Amended and
Restated Planet Hollywood Hotel& Casino Licensing Agreement dated as of
August 9, 2004 entered into by and among Planet Hollywood International, Inc.,
Planet Hollywood Memorabilia, Inc. and OpBiz.

“Pledge
Agreement” means the Pledge Agreement in the form attached
hereto as Exhibit C entered into by and between the Collateral Agent and
EquityCo and acknowledged by the Company.

“Preferred
Interests” means all Equity Interests (whether voting or non-voting)
of any class or classes (however designated) that have a preferential right to
share in the Company’s dividends or liquidating distributions, together with
any interests issued or issuable with respect thereto (whether by way of a
interest dividend or interest split or in exchange for or in replacement of
such interests or otherwise in connection with a combination of interests,
recapitalization, merger, consolidation or other corporate reorganization).

“Premises”  means the premises presently
known as Aladdin Hotel and Casino and related complexes located at Las Vegas
Boulevard and Harmon Avenue in Clark County, Nevada, as described in Exhibit
D attached hereto, which Premises include, without limitation, the Hotel
Premises, the Retail Shops, the Casino, and the Energy Premises.

“Property” means any
right or interest in or to property of any kind whatsoever of the Company or
any Subsidiary, whether real, personal or mixed and whether tangible or intangible,
including, without limitation, the Premises and Equity Interests held by the
Company or any Subsidiary.

 11
 

“Qualified
Public Offering”  shall mean an underwritten public offering on
a firm commitment basis lead managed by a nationally recognized investment
banking organization or organizations pursuant to an effective registration
statement under the Securities Act, covering the offer and sale of Interests or
voting common equity securities of the Company or any successor thereto (A)
with respect to which the issuer of such securities receives aggregate net
proceeds attributable to sales for the account of the Company (after deduction
of underwriting discounts and commissions) of not less than $50 million, (B)
with respect to which the gross equity value of the issuer of such securities,
valued at the initial public offering price, is at least $200 million and (C)
with respect to which such Interests are listed for trading on the New York
Stock Exchange or quoted on The NASDAQ Stock Market, Inc.

“REA” means  that certain Construction, Operation and
Reciprocal Easement Agreement dated as of February 26, 1998 among Aladdin
Gaming, Boulevard Invest (as successor in interest to Aladdin Bazaar) and
Aladdin Music Holdings, LLC, as amended by that certain (i) Amendment and
Ratification of Construction, Operation and Reciprocal Easement Agreement dated
as of November 20, 2000 between Aladdin Gaming and Boulevard Invest (as
successor in interest to Aladdin Bazaar) which was recorded in the Official
Records of Clark County in Book 20001120, Document No.:  00858 and (ii) Second Amendment of
Construction, Operation and Reciprocal Easement Agreement between Aladdin and
Boulevard Invest (as successor in interest to Aladdin Bazaar) which was
recorded in the Official Records of Clark County in Book 20030331, Document
No.:  04875 on March 31, 2003, as further
amended, modified or supplemented from time to time.

“Required
Investors” has the meaning set forth in Section 3.3(e)
herein.

“Restructuring Agreement”  means the Restructuring Agreement entered into
on the date hereof by and among the Company, EquityCo, the “Purchasers” named
therein and the “Warrantholders” named therein.

“Restructuring Documents” has the meaning
given such term in the Restructuring Agreement.

“Retail Shops” means
collectively, the portion of the Hotel Premises or Casino where retail shops
are located.

“Securities”
means, at any time, (i) Interests, (ii) Preferred Interests,  (iii) the Warrants, and (iv) any other equity
securities now or hereafter issued by the Company, together with any options
thereon and any other interests issued or issuable with respect thereto
(whether by way of a interests dividend, interests split or in exchange for or
upon conversion of such interests or otherwise in connection with a combination
of interests, recapitalization, merger, consolidation or other corporate
reorganization).  At all times, the
number of Securities deemed issued and outstanding or held or to be voted by
any Securityholder shall be calculated in accordance with Section 1.2.

“Securities
Act” means the Securities Act of 1933, as amended, or any similar successor
federal statute, and the rules and regulations of the Commission thereunder,
all as the same shall be in effect at the time.

“Securityholder” shall have the
meaning in the recitals hereto.

 12
 

“Subsidiary” means, as to
any Person, a corporation, partnership, limited liability company or other
entity of which shares of stock or other ownership interests having ordinary
voting power (other than stock or such other ownership interests having such
power only by reason of the happening of a contingency) to elect a majority of
the board of directors or other managers of such corporation, partnership,
limited liability company or other entity are at the time owned, or the
management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person.  Unless otherwise qualified, all references to
a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to each
direct or indirect Subsidiary or Subsidiaries of the Company.

“Taking” (and its
correlative meanings) means any temporary or permanent taking by any
Governmental Authority of the Premises or any portion thereof through eminent
domain, condemnation or other proceedings or by any settlement or compromise of
such proceedings, or any voluntary conveyance of such property or any portion
thereof during the pendency of any such proceedings.

“Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority and any and all liabilities
(including interest, fines, penalties or additions to tax) with respect to the
foregoing.

“Transfer” means any direct or indirect
transfer, donation, sale, exchange, assignment, pledge, hypothecation, grant of
a security interest in or other disposal or attempted disposal of all or any
portion of a security or of any rights.  “Transferred”
means the accomplishment of a Transfer, and “Transferee” means the recipient of
a Transfer.

“Warrants” shall have the
meaning in the recitals hereto.

“Warrant
Interests” shall have the meaning assigned to such term in the
Warrants.

Section 1.4  Accounting Terms.  All accounting terms not specifically defined
herein shall be construed in accordance with GAAP, and all financial data
submitted pursuant to this Agreement and all financial tests to be calculated
in accordance with this Agreement shall be prepared and calculated in
accordance with GAAP.  All financial tests
relating to the Company shall be calculated with respect to the Company.  If any changes in accounting principles are
hereafter occasioned by promulgation of rules, regulations, pronouncements or
opinions by or are otherwise required by the Financial Accounting Standards
Board or the American Institute of Certified Public Accountants (or successors
thereto or agencies with similar functions), and any of such changes results in
a change in the method of calculation of, or affects the results of such calculation
of, any of the financial covenants, standards or terms found herein, then the
parties hereto agree to enter into and diligently pursue negotiations in order
to amend such financial covenants, standards or terms so as to reflect fairly
and equitably such changes, with the desired result that the criteria for
evaluating the Company’s financial condition and results of operations shall be
the same after such changes as if such changes had not been made.

 

 13

 

ARTICLE
II — REPRESENTATIONS AND WARRANTIES

Section 2.1  Representations of the Securityholders,
the Individual Investors and BH/RE.  Each of the Securityholders, the Individual
Investors and BH/RE, individually and not jointly, hereby represents, warrants
and covenants to the Company and the other Securityholders as follows: (a) such
Person has full company power and authority (in the case of a Person that is a
limited liability company, corporation or similar corporate entity), or
capacity (in the case of a Person who is an individual) to enter into this
Agreement and perform its obligations hereunder; (b) this Agreement constitutes
the valid and binding obligation of such Person enforceable against such Person
in accordance with its terms; (c) the execution, delivery and performance by
such Person of this Agreement: (i) does not and will not violate any laws,
rules or regulations of the United States or any state or other jurisdiction
applicable to such Person, or require such Person to obtain any approval,
consent or waiver of, or to make any filing with, any Person that has not been
obtained or made (other than approvals or consents of Gaming Authorities); and
(ii) does not and will not result in a breach of, constitute a default under,
accelerate any obligation under or give rise to a right of termination of any
indenture or loan or credit agreement or any other material agreement,
contract, instrument, mortgage, lien, lease, permit, authorization, order,
writ, judgment, injunction, decree, determination or arbitration award to which
such Person is a party or by which the property of such Person is bound or
affected, or result in the creation or imposition of any mortgage, pledge,
lien, security interest or other charge or encumbrance on any of the assets or
properties of such Person; and (d) each of the Member and BH/RE is a
partnership for federal income tax purposes.

Section 2.2  Representations of the Company.  The Company hereby represents, warrants and
covenants to the Securityholders as follows: (a) it has full limited liability
company power and authority to enter into this Agreement and perform its
obligations hereunder; (b) this Agreement constitutes the valid and binding
obligation of the Company enforceable against it in accordance with its terms;
and (c) the execution, delivery and performance by the Company of this
Agreement: (i) does not and will not violate any laws, rules or regulations of
the United States or any state or other jurisdiction applicable to the Company,
or require the Company to obtain any approval, consent or waiver of, or to make
any filing with, any Person that has not been obtained or made (other than
approvals or consents of Gaming Authorities); and (ii) does not and will not
result in a breach of, constitute a default under, accelerate any obligation
under or give rise to a right of termination of any indenture or loan or credit
agreement or any other material agreement, contract, instrument, mortgage,
lien, lease, permit, authorization, order, writ, judgment, injunction, decree,
determination or arbitration award to which such Person is a party or by which
the property of the Company is bound or affected, or result in the creation or
imposition of any mortgage, pledge, lien, security interest or other charge or
encumbrance on any of the assets or properties of the Company.

ARTICLE
III - RESTRICTIONS ON TRANSFER; CO-SALE; DRAG ALONG

Except as
otherwise expressly stated herein, the provisions of this Article III
shall terminate immediately upon the closing of a Qualified Public Offering.

Section 3.1  Restrictions on Transfer.  Each Securityholder agrees that it will not
Transfer all or any portion of the Securities, except:

(a)           Transfers
by any Mezzanine Investor to any Person other than a Competitor made in
compliance with the Gaming Laws and any requirements and restrictions 

 14
 

imposed by the Gaming Authorities; provided, however,
that the Transferee shall have entered into a Joinder Agreement providing that
all Securities so Transferred shall continue to be subject to all provisions of
this Agreement as if such Securities were held by such Mezzanine Investor and
for all purposes hereunder such Transferee shall be a “Mezzanine Investor”; and

(b)           Transfers
by any Non-Mezz Investor to any Person other than a Competitor made in compliance
with the Gaming Laws and any requirements and restrictions imposed by the
Gaming Authorities and Section 3.2 hereof; provided, however,
that the Transferee in each case shall have entered into a Joinder Agreement
providing that all Securities so Transferred shall continue to be subject to
all provisions of this Agreement as if such Securities were held by such
Non-Mezz Investor and for all purposes hereunder such Transferree shall be a “Non-Mezz
Investor”;

(c)           Transfers
by a Securityholder pursuant to Section 3.3 hereof made in accordance
with the specific procedures set forth therein; and

(d)           Transfers
required by Gaming Authorities.

Section 3.2  Co-Sale Option of Mezzanine
Investors.  In the event a Non-Mezz Investor described in
Section 3.1(b) above ( a “Transferring Investor”)
proposes to Transfer all or any portion of its Securities to any Person (the “Offeror”) in response to a bona fide offer (a “Transaction Offer”), such Transferring Investor may do
so only pursuant to and in accordance with the following provisions of this
Section 3.2 and after receipt of all necessary Gaming Approvals:

(a)           Each
Mezzanine Investor (a “Co-Selling Investor”)
shall have the right (the “Co-Sale Option”)
to participate in the Transaction Offer with respect to any Securities subject
thereto by giving written notice (the “Acceptance Notice”)
to the Transferring Investor within ten (10) Business Days of receipt of a
notice (the “Co-Sale Offer Notice”) specifying
the terms of the Transaction Offer.  Each
Acceptance Notice shall indicate the maximum number and type of Securities such
Co-Selling Investor wishes to sell including the number and type of Securities
it would sell if one or more other Co-Selling Investor do not elect to
participate in the sale on the terms and conditions stated in the Co-Sale Offer
Notice.

(b)          Each
Co-Selling Investor shall have the right to sell a portion of its Securities
pursuant to the Transaction Offer which is equal to or less than the product
obtained by multiplying the total number of Securities subject to the
Transaction Offer and available for sale to the Offeror by a fraction, the
numerator of which is the total number of Securities owned by such Co-Selling
Investor on the date of the Co-Sale Offer Notice on an as exercised basis and the
denominator of which is the total number of Securities then held by all
Co-Selling Investors and the Transferring Investor on the date of the Co-Sale
Offer Notice (also on an as exercised basis). 
To the extent one or more Co-Selling Investors elects not to sell, or
fails to exercise its rights to sell the full amount of such Securities which
they are entitled to sell pursuant to this Section 3.2, the right of the
Co-Selling Investors who have elected to sell Securities shall be increased
proportionately based on their relative holdings and such other Co-Selling
Investors shall have an additional three (3) Business Days from the date upon
which they are notified of such election or failure to exercise in which to
increase the number of Securities to be sold by them hereunder.

 15
 

(c)           Within
ten (10) calendar days after the date by which the Co-Selling Investors were
first required to notify the Transferring Investor of their intent to
participate, the Transferring Investor shall notify each participating Co-Selling
Investor of the number of Securities held by such Co-Selling Investor that will
be included in the sale and the date on which the Transaction Offer will be
consummated, which shall be no later than the later of (i) sixty (60) calendar
days after the date by which the Co-Selling Investors were required to notify
the Transferring Investor of their intent to participate and (ii) the
satisfaction of any approval or filing requirements of any Governmental
Authority, if any.

(d)          Each
participating Co-Selling Investor may effect its or his participation in any
Transaction Offer hereunder by delivery to the Offeror, or to the Transferring
Investor for delivery to the Offeror, of one or more instruments or
certificates, properly endorsed for Transfer, representing the Securities it
elects to sell therein.  The Co-Selling
Investors shall make customary representations and warranties and provide
customary indemnities in connection therewith. 
The Co-Selling Investors further agree that (i) the liability of
any Mezzanine Investor with respect to any representation or warranty made by
such Mezzanine Investor in connection with any sale pursuant to this Section
3.2 shall be several and not joint with any other Person, and shall be
limited to each such Mezzanine Investor’s net proceeds from such sale.  Each Co-Selling Investor shall execute and
deliver such instruments of conveyance and Transfer and take such other action,
and execute any related documents as the Transferring Investor or Offeror may
reasonably require in order to carry out the terms and provisions of this Section
3.2.  In connection with any Transfer
subject to this Section 3.2, (i) each Co-Selling Investor shall be fully
responsible for (x) its own legal fees, (y) its pro  rata
share (calculated in accordance with Section 3.2(b)) of any applicable
placement or brokerage fees, if any and (z) its pro  rata
share (calculated in accordance with Section 3.2(b)) of any expenses
incurred by the Transferring Investor for the benefit of all participating
Securityholders, and (ii) the Transferring Investor shall bear its own
expenses.  At the time of consummation of
the Transaction Offer, the Offeror shall remit directly to each relevant
Co-Selling Investor that portion of the sale proceeds to which the relevant Co-Selling
Investor is entitled by reason of its participation therein (less any
adjustments due to the conversion of any convertible securities or the exercise
of any exercisable securities and any required tax withholding).  No Securities may be purchased by the Offeror
from the Transferring Investor unless the Offeror simultaneously purchases from
the participating Co-Selling Investors all of the Securities that they have
elected to sell pursuant to this Section 3.2.

(e)           Any
Securities held by a Transferring Investor which are the subject of the
Transaction Offer that the Transferring Investor desires to sell following
compliance with this Section 3.2 may be sold to the Offeror only during
the period specified in Section 3.2(c) and only on terms no more favorable
to the Transferring Investor than those contained in the Co-Sale Offer
Notice.  Promptly after such sale, the
Transferring Investor shall notify the Co-Selling Investors of the consummation
thereof and shall furnish such evidence of the completion and time of
completion of such sale and of the terms thereof as may reasonably be requested
by the Co-Selling Investors.  The Offeror
shall take such Securities subject to the provisions of this Article III.  In the event that the Transaction Offer is
not consummated within the period required by this Section 3.2 or the
Offeror fails timely to remit to each participating Mezzanine Investor its
portion of the sale proceeds, the Transaction Offer shall be deemed to lapse,
and any Transfers of Securities pursuant to such Transaction Offer shall be
deemed to be 

 16
 

in violation of the provisions of this Agreement unless the
Transferring Investor once again complies with the provisions of this Section
3.2 hereof with respect to such Transaction Offer.

(f)            If (i) any
Individual Investor proposes to Transfer all or a portion of its Equity
Interests in BH/RE that, when taken together with all previous Transfers of
Equity Interests by such Individual Investor (except for any transactions
specifically excluded by this second to last sentence of this Section 3.2(f))
would equal an aggregate amount of Equity Interests equal to or greater than 5%
of all such Investor’s Equity Interests in BH/RE held as of the date hereof,
then the Individual Investor shall (subject to any required consents or
approvals of Gaming Authorities) offer to exchange the Securities held by each
Mezzanine Investor for Equity Interests in BH/RE of the kind proposed to be
Transferred in such sale at their respective fair market values as agreed to by
the Individual Investors and the Majority Holders or (ii) BH/RE proposes to
Transfer all or a portion of its Equity Interests in any Member (either (i) or
(ii) of this Section 3.2(f) a “Parent
Sale”), then BH/RE or such Member, as applicable, shall (subject to
any required consents or approvals of Gaming Authorities) offer to exchange the
Securities held by each Mezzanine Investor for Equity Interests in BH/RE or
such Member, as applicable, of the kind proposed to be Transferred in such
Parent Sale at their respective fair market values as agreed to by the
Individual Investors and the Majority Holders. 
If the Individual Investors and the Majority Holders are unable to agree
either valuation, then the Individual Investors and the Majority Holders shall
select an Appraiser to determine any disputed valuation, the cost of which
shall be borne equally by the Majority Holders and Company.  Mezzanine Investors who exchange their
Securities for Equity Interests in BH/RE or the Member shall be entitled to
participate in such Parent Sale in accordance with the other terms of this Section
3.2 as if such terms were applicable to such Parent Sale, and BH/RE and the Member agree to cooperate
with the Mezzanine Investors, in good faith, to achieve this result.  The
provisions of this Section 3.2(f) shall not apply to Transfers by any
Individual Investor (y) to the spouse, children or siblings of such Individual
Investor or to a trust or family limited partnership for the benefit of any of
them, or (z) upon the death of any Individual Investor to such Individual
Investor’s heirs, executors or administrators or to a trust under such
Individual Investor’s will, or Transfers between such Individual Investor and
such Individual Investor’s guardian or conservator, provided that in each case
the Transferee shall have entered into a Joinder Agreement in substantially the
form attached hereto as Exhibit B providing that all Securities so
Transferred shall continue to be subject to all provisions of this Agreement as
if such Securities were still held by such Individual Investor, except that no
further Transfer shall thereafter be permitted hereunder except in compliance
with this Sections 3.2(f). 
Notwithstanding anything to the contrary in this Agreement or any
failure by a Transferee under this Section 3.2(f) to execute a Joinder
Agreement, such Transferee shall take any Securities so Transferred subject to
all provisions of this Agreement as if such Securities were still held by the
Individual Investor making such Transfer, whether or not they so agree in
writing.  The parties hereto (including
without limitation BH/RE and the Individual Investors) agree that in the event
of any exchange of Securities held by a Mezzanine Investor for Equity Interests
in the Member or BH/RE pursuant to this Section 3.2(f), all steps will
be taken that may be necessary or advisable to ensure that such exchange
qualifies under Section 721 of the Code as a tax-free contribution of property
to a partnership in exchange for an interest in the partnership. The parties
hereto (including, without limitation, BH/RE and the Individual Investors)
further agree to treat and report any such exchange for all purposes (including
accounting and tax purposes) in conformity with the preceding sentence.

 17
 

Section 3.3  Drag-Along Obligations.

(a)           If
the Required Investors (as defined in Section 3.3(e) below) (the “Selling Securityholders”) determine to sell or otherwise
dispose of all or substantially all of the assets of the Company or all or
substantially all of the Equity Interests of the Company to any Person not
Affiliated with either of the Company or any of the Securityholders (the “Buyer”), or to cause the Company to merge with or into or
consolidate with any Buyer, in a bona fide arm’s length transaction (an “Approved Sale”), each Securityholder, subject to the
provisions of this Section 3.3, shall be obligated to and shall upon the
written request of the Selling Securityholders (and subject to the receipt of
all required Gaming Approvals:  (i) sell,
Transfer and deliver, or cause to be sold, Transferred and delivered, to the
Buyer, his, her or its pro rata portion of Securities on substantially the same
terms applicable to the Selling Securityholders (with appropriate adjustments
to reflect the conversion of convertible securities, the redemption of
redeemable securities and the exercise of exercisable securities); and (ii)
execute and deliver such instruments of conveyance and Transfer and take such
other action, including exercising any voting rights in favor of any Approved
Sale proposed by the Selling Securityholders (including by delivering any
irrevocable written proxy authorizing the Selling Securityholders or their
authorized representatives to vote in favor or such Approved Sale) and
executing any purchase agreements, merger agreements, escrow agreements or
related documents, as the Selling Securityholders may reasonably require in
order to carry out the terms and provisions of this Section 3.3;
provided further that each Mezzanine Investor shall be required to make any
representations or warranties and to provide any customary indemnities in
connection therewith severally, but not jointly, with the Selling
Securityholders.  The Selling
Securityholders shall pay all reasonable out-of-pocket costs and expenses
incurred by the Mezzanine Investors in connection with the provisions of this Section
3.3 (including the reasonable fees and expenses of one independent counsel
for the Mezzanine Investors as a group, selected by the Majority Holders).  The Mezzanine Investors shall bear on their pro rata
share (calculated in accordance with Section 3.2(b)) of any expenses
incurred by the Selling Securityholders for the benefit of all Selling
Securityholders.

(b)           Not
less than thirty (30) days prior to the date proposed for the closing of any
Approved Sale, the Selling Securityholders shall give written notice to each
other Securityholder, setting forth in reasonable detail the name or names of
the Buyer, the terms and conditions of the Approved Sale, including the
purchase price, and the proposed closing date.

(c)           The
obligations of each Securityholder set forth in this Section 3.3 are
subject to condition that, upon consummation of the Approved Sale, each
Securityholder receives the same form and per unit amount of consideration, or
if any Securityholder is given an option as to the form and per unit amount of
consideration, such option is made available to all Securityholders.

(d)           The
Selling Securityholders further agree that (i) the liability of any Mezzanine
Investor with respect to any representation or warranty made by such Mezzanine
Investor in connection with any Approved Sale shall be several and not joint
with any other Person, and shall be limited to each such Mezzanine Investor’s
net proceeds from the Approved Sale, (ii) the Mezzanine Investors shall not be
required to consummate any Approved Sale unless the Mezzanine Investors are
provided with (or entitled to rely on) an opinion of counsel to the effect that
the Approved Sale is not in violation of any Applicable Law (including Gaming 

 18
 

Laws), or in the alternative, such Mezzanine Investors shall be
indemnified by the Buyer (or the Selling Securityholders) for any violation
thereof and (iii) no Mezzanine Investor shall be required to agree to any
covenant not to compete or covenant not to solicit customers, employees or
suppliers of the Buyer or any Affiliate thereof.

(e)           The
“Required Investors”
means any Securityholder (or group of Securityholders) who at the time hold at
least 75% of the aggregate Interests of the Company then outstanding (without
regard to Section 1.2) (the “Threshold
Amount”); provided that to the extent Warrant Interests are
issued upon the exercise of Warrants originally issued as an adjustment or
increase under Section 2.2 of the Warrants, the Threshold Amount shall
be reduced by a percentage corresponding to the percentage increase of the
aggregate holdings of the Securityholders resulting from the issuance of such
Warrant Interests.

Section 3.4  Contemporaneous Transfers.  If two or more Securityholders  propose concurrent Transfers which are
subject to this Article III, then the relevant provisions of Sections
3.2 and Section 3.3 shall apply to each such proposed Transfer.

Section 3.5  Assignment.  Each Securityholder shall have the right to
assign its rights to any Transferees of its Securities in a Transfer made in
compliance with this Article III, and any such Transferree shall be
deemed within the definition of a “Mezzanine Investor” or “Non-Mezzanine
Investor”, as the case may be, for all purposes of this Article III.

Section 3.6  Gaming Restrictions.  Notwithstanding anything to the contrary in
this Article III, no Securityholder shall be permitted to Transfer any
Securities, except upon the receipt of all required Gaming Approvals in
accordance with all applicable Gaming Laws and any requirements or restrictions
imposed by the applicable Gaming Authorities.

Section 3.7  Prohibited Transfers.  If any Transfer is made or attempted contrary
to the provisions of this Agreement, such purported Transfer shall be void ab
initio; the Company and the other parties hereto shall have, in addition
to any other legal or equitable remedies which they may have, the right to
enforce the provisions of this Agreement by actions for specific performance
(to the extent permitted by law); and the Company shall have the right to
refuse to recognize any Transferee as one of its members for any purpose.

Section 3.8 
Replacement of Unsuitable Securityholder. 
If any Gaming Authority requires that a Securityholder be licensed,
qualified or found suitable under any applicable Gaming Law, and such
Securityholder:

(a)           fails
to apply for a license, qualification or a finding of suitability within 30
days (or such shorter period as may be required by the applicable Gaming Authority)
after being requested to do so by such Gaming Authority; or

(b)           is
denied such license or qualification or not found suitable; then such
Securityholder shall have 60 days in which to sell all Securities then held by
such Securityholder and that are required by such Gaming Authority to be sold
to a Person reasonably acceptable to such Gaming Authority.  If such Securityholder does not effect such a
sale within such 60 day period, the Company shall then have the right, if
required by the Gaming Authority:

 19
 

(1)                    to require
each such Securityholder to transfer its Securities to a transferee designated
by the Company and acceptable to the Gaming Authority (including to any other
Securityholder, any member of the Investor Group or an Affiliate of any member of
the Investor Group), within such time period after the occurrence of the event
described in clause (a) or (b) above as may be required or approved by the
Gaming Authority, or

(2)                    to redeem
the Securities then held by the Securityholder.

In the event the Company
exercises its right to designate a transferee pursuant to clause (1) above or
to redeem the Securities pursuant to clause (2) above, the minimum purchase
price or redemption price (as applicable) shall be, (a) with respect to any
Warrants and Warrant Interests then held by such Securityholder, an amount
equal to the Redemption Price or the outstanding principal and accrued but
unpaid interest on any Put Notes (as such terms are defined in the Warrant)
(determined as of the date such Securityholder was required to dispose of its
securities pursuant to clause (a) or (b) above), and (b) with respect to any
other Securities, the fair market value of such Securities as determined by the
Governing Body and the Majority Holders. 
All consideration payable pursuant to this Section 3.8 shall be
paid in one installment in immediately available funds.

Immediately upon a
determination by a Gaming Authority that a Securityholder will not be licensed,
qualified or found suitable and must dispose of its Securities, such
Securityholder will, to the extent required by applicable Gaming Laws, have no
further right:

to (i) exercise directly, or through any proxy, trustee or nominee any
voting right conferred by the member’s interest in the Company, (ii)
participate in the management of the Company, (iii) receive any remuneration
(other than, in respect of the Warrants, the Redemption Price or the
outstanding principal and accrued but unpaid interest on any Put Notes) in any
form from the Company holding a Gaming License for services rendered or
otherwise; or (iv) receive any interest, dividend, economic interests or any
other distribution of any kind or payment with respect to the Securities from
the Company, including upon dissolution, except the redemption prices referred
to in clause (2) above.

The applicable
Securityholder shall notify the Company in writing of any transfer or
redemption pursuant to this Section 3.8 as soon as practicable.  Any Securityholder that is required to apply
for a license, qualification or a finding of suitability shall be responsible
for all fees and costs of applying for and obtaining the license, qualification
or finding of suitability and of any investigation by the Gaming Authority.

Section 3.9  Special
Purpose Entity.  The Company is, as of the date hereof, a
single-member SPE (as defined in the CMBS Documents), and the admission of any
new member to the Company will cause it to violate those provisions of the CMBS
Documents that require certain multi-member limited liability companies to have
at least one member that is a SPE. Therefore, as promptly as practicable after
the date hereof, EquityCo, as sole member of the Company, shall contribute a
one percent interest in the Company to a wholly-owned SPE limited liability
company formed for the sole purpose of holding such interest, in order to
satisfy the requirement that the Company remain a SPE upon the issuance of
membership interests to the holders of Warrants. It is understood and agreed
that EquityCo will (i) obtain 

 20
 

all
required Gaming Approvals in connection with the admission of such new SPE
subsidiary to the Company prior to such admission, and (ii) pledge the equity
interest in such new SPE subsidiary to the Collateral Agent for the benefit of
the Mezzanine Investors.  In addition,
the Securityholders agree that all provisions of the Restructuring Documents,
including this Agreement and the Pledge Agreement, are hereby waived solely to
the extent necessary to allow EquityCo and the Company to carry out the express
provisions of this Section 3.9.

Section 3.10 
Gaming Authorities and Gaming Approval.  Gaming
Authority approval is required prior to the issuance of the Warrants described
herein and the granting of the pledge described in the Pledge Agreement.  It is understood and agreed that:

(a)           promptly
and in any event within 30 days following the Closing Date, EquityCo and the
Company agrees to make all filings necessary to obtain all approvals
(collectively the “Approvals”) required under applicable Gaming Laws for (i)
the pledge by EquityCo to the Collateral Agent for itself and for the benefit
of the Mezzanine Investors of its Equity Interests in the Company, (ii)
issuance of the Warrants to the Mezzanine Investors, and (iii) any other
restrictions on the issuance or transfer of or agreements not to encumber the
Equity Interests in the Company, and, in each case, to use its continuous,
diligent and commercially reasonable best efforts to obtain such approvals.

(b)           the
Company shall obtain all Approvals within 180 days following the filing of all
applications therefor in accordance with the preceding clause (a).  Such 180-day period shall be extended by any
delay attributable to Collateral Agent’s or any Mezzanine Investor’s failure to
cooperate with the Gaming Authorities as required by clause (d) below, and the
Company shall not have any obligation to obtain the Approvals with respect to
any Mezzanine Investor in the event the Approvals are denied solely by reason
of a determination by the Gaming Authorities that such Mezzanine Investor or
the Collateral Agent is unsuitable. 
Pending the receipt of the Approvals, (i) no Lien shall have been
created in such Equity Interests under applicable Gaming Laws, (ii) and the
certificates evidencing such Equity Interests shall remain in the possession of
EquityCo in the State of Nevada, (iii) the Original Warrants shall remain in
the possession of the Mezzanine Investors, and (iv) the Warrants shall not be
issued to the Mezzanine Investors.

(c)           promptly
upon obtaining all of the Approvals, the Company shall (i) cause the delivery
of all certificates with respect to the pledged Equity Interests of the Company
to the Collateral Agent or its designated custodial agent in the State of
Nevada (pursuant to a custodian or collateral agency agreement acceptable to
the Mezzanine Investors and in compliance with Nevada law), and the Collateral
Agent shall thereafter maintain such certificates in the State of Nevada and
keep them available for inspection by agents or employees of the Gaming
Authorities promptly upon request during normal business hours, and (ii) cause
the delivery of the Warrants to the Mezzanine Investors.

(d)           each
of the Collateral Agent and the Mezzanine Investors agree (i) not to exercise
any of their Original Warrants prior to May 29, 2007, unless Gaming Approval is
received for the establishment of an SPE in accordance with Section 3.9,
and (ii) to cooperate with the Gaming Authorities as necessary in connection
with obtaining the Approvals  including
the provision of such documents or other information as may be requested by the
Gaming Authorities relating to the Warrants or the other Restructuring
Documents in connection with the request for the Approvals.

 21
 

ARTICLE
IV - RIGHTS TO PURCHASE

Notwithstanding
anything herein to the contrary, the following provisions of this Article IV
shall terminate immediately prior to the closing of a Qualified Public Offering
and shall not apply with respect to any Qualified Public Offering.

Section 4.1  Right to Participate in Certain Sales of
Additional Securities and Indebtedness.  If at any time the Company or any of its
Subsidiaries intends to issue any (i) Equity Interests, (ii) securities
convertible into or exchangeable for Equity Interests, (iii) options, warrants
or rights carrying any rights to purchase Equity Interests, (iv) any
Indebtedness, or (v) any other securities, evidences of indebtedness or other
Property of the Company or any of its Subsidiaries issued in exchange of a
capital contribution (in whatever form) other than Excluded Securities
(collectively, the “Offered Securities”),
it shall submit a written offer to each Mezzanine Investor (collectively, the “Offerees”), identifying the terms of the
proposed issuance and sale (including price, number or aggregate principal
amount of the Offered Securities and all other material terms), to purchase its
Pro Rata Allotment (as hereinafter defined) of the Offered Securities (subject
to increase for over-subscription if some Offerees do not fully exercise
their rights) on terms and conditions, including price, not less favorable to
the Offerees than those on which the Company proposes to sell the Offered
Securities to a third party or parties; provided, however, that
such Offeree agrees to purchase the Offered Securities and any other securities
to be purchased in tandem therewith by the prospective purchaser.  The Company’s obligation to complete any such
issuance or sale is subject to the receipt of all necessary Gaming
Approvals.  Each Offeree’s “Pro Rata Allotment” of  the Offered Securities shall be based on the
ratio (as determined in accordance with Section 1.2 hereof) which the
Securities then owned by it bears to all of the then issued and outstanding
Securities as of the date of such written offer.  The Company’s offer pursuant to this Section
4.1 shall remain open and irrevocable for a period of ten (10) Business
Days, and the recipients of such offer shall elect to purchase by giving
written notice thereof to the Company within such 10-day period,
including therein the maximum amount of Offered Securities of the Company which
the Offeree would purchase if other Offerees do not elect to purchase, with the
rights of electing Offerees to purchase such additional Offered Securities to
be based upon the relative holdings of Securities of the electing Offerees in
the case of over-subscription.  Any
Offered Securities which are not purchased pursuant to such offer plus, at the
Company’s election, an equivalent number of securities so purchased by the
Offerees may be sold by the Company, but only on the terms and conditions set
forth in the initial offer, at any time within ninety (90) days following the
termination of the above-referenced 10-day period or any longer
period of time as may be required by any Gaming Authorities but may not be sold
to any other Person or on terms and conditions, including price, that are more
favorable to the purchaser than those set forth in such offer or after such 90-day
period or such longer period as may be required by any Gaming Authorities
without renewed compliance with this Section 4.1.

Section 4.2  Assignment of Rights.  The rights of each Offeree set forth in this Article
IV are transferable to any Transferee of Securities held by any Mezzanine
Investor that would also be an eligible Transferee under Section 3.1(a),
to any Affiliate of any Mezzanine Investor 

 22
 

that
would also be an eligible Transferee under Section 3.1(a) and to any
other Mezzanine Investor.  Upon such
Transfer and execution of a Joinder Agreement, such Transferee shall be deemed
a “Mezzanine Investor” for all purposes of Sections 4.1 and 4.2.

ARTICLE V
- REGISTRATION RIGHTS

Notwithstanding
anything herein to the contrary, the following provisions shall continue to be
in effect until this Agreement is otherwise terminated.

Section 5.1  Piggyback Registration Rights.  If at any time or times on or after the date
that is 180 days following the completion of a Qualified Public Offering, the
Company shall determine to register any Equity Interests or securities
convertible into or exchangeable or exercisable for Equity Interests under the
Securities Act (whether in connection with a public offering of securities by
the Company (a “primary offering”),
a public offering of securities by members (a “secondary offering”), or both, but not in connection with a
registration effected solely to implement an employee benefit plan or a
transaction to which Rule 145 or any other similar rule of the Commission under
the Securities Act is applicable), the Company will promptly give written
notice thereof to the Mezzanine Investors. 
In connection with any such registration, if within thirty (30) days
after their receipt of such notice (or ten (10) days in the case of a proposed
registration on Form S-3) any Mezzanine Investor requests in writing the
inclusion in such registration of some or all of the Registrable Interests (as
hereinafter defined) owned by such Mezzanine Investor, or into which any units
held by such Mezzanine Investor are convertible or exchangeable, the Company
will use its best efforts to effect the registration under the Securities Act
of all Registrable Interests which such Mezzanine Investor so requests; provided,
however, that if at any time after giving written notice of its
intention to register any Registrable Interests and prior to the effective date
of the registration statement in connection with such registration, the Company
shall determine in good faith, for any reason not to register such Registrable
Interests, the Company shall give written notice to the Mezzanine Investors
and, thereupon, shall be relieved of its obligation to register any such
Registrable Interests in connection with such registration; provided, further,
that in the case of an underwritten public offering, if the managing or lead
underwriter(s) determine that a limitation on the number of units to be
underwritten is required, such underwriter(s) may limit the number of
Registrable Interests to be included in the registration and underwriting to an
amount that, in the judgment of the underwriter, would not materially affect
the term of the offering (including, without limitation the price at which such
securities can be sold to the public or the market for the Company’s
securities).  The Company shall advise
all Mezzanine Investors promptly after such determination by the managing or
lead underwriter(s), and the number of Registrable Interests that may be
included in the registration and underwriting shall be allocated among all
Mezzanine Investors requesting registration in proportion, as nearly as
practicable, to their respective holdings of Registrable Interests; provided
that all Persons participating in the offering (other than the Company) shall
be “cut back” on a pro  rata basis.  The Company may select the underwriters for
any underwritten offering in its sole discretion.  All reasonable out-of-pocket expenses
incurred by the Mezzanine Investors in connection with the provisions of this Section 5.1
(including the reasonable fees and expenses of one independent counsel for the
Mezzanine Investors as a group, selected by the Majority Holders) shall be
borne by the Company, except that the Mezzanine Investors shall bear
underwriting and selling commissions and Transfer taxes attributable to the
sale of their Registrable Interests.

 

 23

Section 5.2  Parent Registrations.  If (i) BH/RE proposes to register any of its
Equity Interests or securities convertible into or exchangeable or exercisable
for its Equity Interests, or (ii) the Member proposes to register any of its
Equity Interests or securities convertible into or exchangeable or exercisable
for its Equity Interests, in each case under the Securities Act (whether in
connection with a public offering of securities by BH/RE or the Member, a
public offering of securities by members, or both, but not in connection with a
registration effected solely to implement an employee benefit plan or a
transaction to which Rule 145 or any other similar rule of the Commission under
the Securities Act is applicable) (each a “Parent Registration”),
BH/RE or the Member, as applicable, will promptly give written notice thereof
to the Mezzanine Investors and offer to exchange the Securities held by each
Mezzanine Investor for Equity Interests in BH/RE or the Member, as applicable,
of the kind proposed to be registered at their respective fair market values as
agreed to by the Individual Investors and the Majority Holders.  If the Individual Investors and the Majority
Holders are unable to agree on such valuation, then the Individual Investors
and the Majority Holders shall select an Appraiser to make such determination,
the cost of which shall be borne by the Company.  Mezzanine Investors who exchange their
Securities for Equity Interests in BH/RE or the Member, as applicable, shall be
entitled to participate in such Parent Registration in accordance with the
terms of this Article V as if such terms were applicable to such
Parent Registration, and BH/RE and the Member agrees to cooperate with the
Mezzanine Investors, in good faith, to achieve this result.  The parties hereto (including without
limitation, BH/RE and the Individual Investors) agree that in the event of any
exchange of Securities held by a Mezzanine Investor for Equity Interests in the
Member or BH/RE pursuant to this Section 5.2, and in the event that such
exchange can reasonably be construed as an exchange qualifying under Section
351 of the Code, all reasonable steps will be taken that may be necessary or
advisable to ensure that such exchange so qualifies.

Section 5.3  Other Registrations.  In order to assist the Mezzanine Investors in
obtaining any required Gaming Approvals or meeting any other requirements
imposed by Gaming Authorities in connection with the exercise of any Warrants,
the Company shall, within one month of  a
written request of the Majority Holders (i) file with the Commission a
registration statement on Form 10 (the “Form
10”) registering the Warrant Interests under the Exchange Act, (ii)
file an application with the Nevada Gaming Commission for registration as a
publicly traded corporation (the “PTC
Registration”, and collectively with the Form 10, the “Additional Filings”) and (iii) use its
commercially reasonable best efforts to promptly take or cause to be taken, any
other action or to do, or cause to be done, all things reasonably necessary
under Applicable Law to facilitate the receipt by Mezzanine Investors of  any required Gaming Approvals or in meeting
any other requirements imposed by Gaming Authorities.  The Additional Filings, as initially filed
with the Commission and the Nevada Gaming Commission, and as each may be
supplemented, amended and refiled, shall each be in form and substance
reasonably satisfactory to the Mezzanine Investors.  The Company shall use it commercially reasonable
best efforts, in cooperation with the Mezzanine Investors, to respond to any
comments of the Commission or the Nevada Gaming Commission, as applicable, on
the Additional Filings.  The Company
shall notify the Mezzanine Investors promptly of the receipt of any comments
from the Commission (or its staff) or the Nevada Gaming Commission (or its
staff), as applicable, and of any request by either the Commission (or its
staff) or the Nevada Gaming Commission (or its staff), or any other
governmental officials for amendments or supplements to the Applicable Filings
or for additional information, and will supply the Mezzanine Investors with
copies of all correspondence with respect to the Additional Filings. 

 24
 

The
Additional Filings, shall in all respects, comply with as to form all
Applicable Laws.  Whenever any event
occurs which is required to be set forth in any amendment or supplement to an
Additional Filing, the Company shall promptly inform the Mezzanine Investors of
such occurrence and cooperate in filing with the Commission or its staff, or
the Nevada Gaming Commission or its staff, as applicable, such amendment or
supplement.  The costs of the Additional
Filings (including legal fees, audit fees and filing or application fees) shall
be borne by the Company.  The costs of
obtaining Gaming Approvals and meeting any other requirements that the Gaming
Authorities may impose in connection with such exercise shall be borne equally
by Libra Securities, LLC, on the one hand, and the Majority Holders, on the
other hand.

Section 5.4  Registrable Interests.  For the purposes of this Article V, the term “Registrable
Interests” shall mean the Interests held by the Mezzanine Investors or subject
to acquisition by the Mezzanine Investors upon exercise of the Warrants,
including any Interests issued by way of a dividend or split or in connection
with a combination of units, recapitalization, merger, consolidation or other
reorganization; provided, however, that Interests sold in a registered sale
pursuant to an effective registration statement under the Securities Act or
Transferred pursuant to Rule 144 thereunder or transferable pursuant to Rule
144(k) thereunder without restriction as to volume, shall not be deemed
Registrable Interests.

Section 5.5  Further Obligations of the Company.  Whenever, under the provisions of Section
5.1 of this Agreement, the Company is required to register any Registrable
Interests, it agrees that to the extent not otherwise already set forth in this
Article V, it shall do the following:

(a)           Use its reasonable commercial best efforts to diligently
prepare and file with the Commission, a registration statement and such
amendments, post-effective amendments and supplements to said
registration statement and the prospectus used in connection therewith as may
be necessary to keep said registration statement effective for such period, not
exceeding 180 days, as may be necessary for any Mezzanine Investor
participating in a registered offering to dispose of the Registrable Interests
registered thereunder in the manner specified and to comply with the provisions
of the Securities Act with respect to the sale of securities covered by said
registration statement;

(b)           Furnish to each selling Mezzanine Investor such copies of
each preliminary and final prospectus and such other documents as such
Mezzanine Investor may reasonably request to facilitate the public offering of
its Registrable Interests;

(c)           Use its reasonable commercial best efforts to register or
qualify the securities covered by said registration statement under the
securities or “blue-sky” laws of such jurisdictions as any selling
Mezzanine Investors may reasonably request, provided that the Company shall not
be required to register or qualify the securities in any jurisdictions which
require it to qualify to do business, subject itself to general taxation in any
such jurisdiction, subject itself to general service of process therein or
amend any provision of its organizational documents in a manner that would be
adverse to the Company or its members;

(d)           Immediately notify each selling Mezzanine Investor at any
time when a prospectus relating to its Registrable Interests is required to be
delivered under the Securities Act, of the happening of any event as a result
of which such prospectus contains an 

 25
 

untrue statement of a material fact or omits
any material fact necessary to make the statements therein not misleading, and,
at the request of any such selling Mezzanine Investor, prepare and file with
the Commission a supplement or amendment to such prospectus so that, as thereafter
delivered to the purchasers of such Registrable Interests, such prospectus will
not contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein not misleading;

(e)           Cause all such Registrable Interests to be listed on or
included in each securities exchange or quotation system, if any, on which
similar securities issued by the Company are then listed, provided that the
applicable listing requirements are satisfied;

(f)            Otherwise use its reasonable commercial best efforts to
comply in all material respects with all applicable rules and regulations of
the Commission and make generally available to its members, in each case as
soon as practicable, but not later than thirty (30) calendar days after the
close of the period covered thereby an earnings statement of the Company which
will satisfy the provisions of Section 11(a) of the Securities Act;

(g)           Cooperate with each Mezzanine Investor and each
underwriter participating in the disposition of Registrable Interests and their
respective counsel in connection with any filings required to be made with the
National Association of Securities Dealers, Inc.;

(h)           During the period when the prospectus is required to be
delivered under the Securities Act, promptly file all documents required to be
filed with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the
Exchange Act;

(i)            Appoint a transfer agent and registrar for all
Registrable Interests covered by a registration statement no later than the
effective date of such registration statement;

(j)            In connection with an underwritten offering, to the
extent reasonably requested by the managing or lead underwriter(s) for the
offering or the Mezzanine Investors, participate in and support customary
efforts to sell the securities in the offering, including, without limitation,
participating in “road shows”;

(k)           Otherwise cooperate with the managing or lead
underwriter(s), the Commission and other regulatory agencies (including Gaming
Authorities) and take all reasonable actions and execute and deliver or cause
to be executed and delivered all documents necessary to effect the registration
of any Registrable Interests under this Section 5.5; and

(l)            In connection with an underwritten offering, furnish to
each selling Mezzanine Investor a signed counterpart, addressed to each
Mezzanine Investor, of:

(i)            an opinion of
counsel for the Company customary in form and substance for such a transaction
and reasonably satisfactory to the Mezzanine Investor; and

(ii)           to the extent
permitted by applicable professional standards, a “comfort” letter, signed by
the independent public accountants who have certified the Company’s financial
statements included in such registration statement, 

 26
 

customary in
form and substance for such a transaction and reasonably satisfactory to the
Mezzanine Investors;

(m)          Each holder of Registrable Interests agrees that, upon
receipt of any notice from the Company of the happening of any event of the
kind described in Section 5.5(d), such holder shall forthwith
discontinue disposition of Registrable Interests pursuant to the registration
statement covering such Registrable Interests until such holder’s receipt of
the copies of the supplemented or amended prospectus contemplated by Section
5.5(d), and, if so directed by the Company, such holder shall deliver to
the Company (at the Company’s expense) all copies, other than permanent file
copies then in such holder’s possession, of the prospectus covering such
Registrable Interests current at the time of receipt of such notice.  If the Company shall give any such notice,
the Company shall extend the period during which such registration statement
shall be maintained effected pursuant to Section 5.5(a) by the number of
days during the period from and including the date of the giving of such notice
pursuant to Section 5.5(d) to and including the date when each seller of
Registrable Interests covered by such registration statement shall have
received the copies of the supplemented or amended prospectus contemplated by Section
5.5(d).

Section 5.6  Indemnification; Contribution.

(a)           Incident
to any registration statement referred to in this Article V, the Company
will indemnify and hold harmless each underwriter and each Mezzanine Investor
who offers or sells any such Registrable Interests in connection with such
registration statement (including their respective partners (including partners
of partners and stockholders and members of any such partners), and directors,
officers, managers, members, employees and agents of any of them (a “Selling
Holder”), and each
person who controls any of them within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (a “Controlling Person”), from and against any and all
losses, claims, damages, expenses and liabilities, joint or several (including
any investigation, reasonable legal and other expenses incurred in connection
with, and any amount paid in settlement of, any action, suit or proceeding or
any claim asserted), as the same are incurred to which they, or any of them,
may become subject under the Securities Act, the Exchange Act, or other federal
or state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities arise out of or are based on (i)
any untrue statement or alleged untrue statement of a material fact contained
in such registration statement (including any related preliminary or definitive
prospectus, or any amendment or supplement to such registration statement or prospectus),
(ii) any omission or alleged omission to state in such document a material fact
required to be stated in it or necessary to make the statements in it not
misleading, or (iii) any violation by the Company of the Securities Act, any
state securities or “blue sky” laws or any rule or regulation thereunder in
connection with such registration; provided, however, that the
Company will not be liable to the extent that such loss, claim, damage, expense
or liability arises from and is based on an untrue statement or omission or
alleged untrue statement or omission made in reliance on and in conformity with
information furnished in writing to the Company by such Selling Holder or
Controlling Person expressly for use in such registration statement or is due
to the failure of such Selling Holder or Controlling Person to deliver a copy
of the prospectus or any supplements thereto a reasonable period of time after
the Company has furnished such Selling Holder or Controlling Person with a
sufficient number of copies of the same or by the delivery of prospectuses by
such Selling Holder or Controlling Person after the Company notified such
Selling Holder or Controlling Person in 

 27
 

writing to discontinue delivery of prospectuses.  With respect (i) to such untrue statement or
omission or alleged untrue statement or omission in the information furnished
in writing to the Company by such Selling Holder or Controlling Person
expressly for use in such registration statement or (ii) to the failure of any
Selling Holder of Controlling Person to refrain from delivering any prospectus
or supplements thereto a reasonable period of time following notice from the
Company to discontinue delivery such prospectus or supplements, such Selling
Holder will indemnify and hold harmless each underwriter, the Company
(including its directors, officers, employees, agents and Controlling Persons),
and each other Selling Holder (including its partners (including partners of
partners and stockholders of such partners) and directors, officers, employees,
agents and Controlling Person of any of them), from and against any and all
losses, claims, damages, expenses and liabilities, joint or several, to which
they, or any of them, may become subject under the Securities Act, the Exchange
Act, or other federal or state statutory law or regulation, at common law or
otherwise to the same extent provided in the immediately preceding
sentence.  In no event, however, shall
the liability of a Selling Holder or Controlling Person for indemnification
under this Section 5.6(a) in its capacity as such exceed the net
proceeds (before deducting expenses) received by such Selling Holder from its
sale of Registrable Interests under such registration statement.

(b)           If
the indemnification provided for in Section 5.6(a) above for any reason
is held by a court of competent jurisdiction to be unavailable to an
Indemnified Party in respect of any losses, claims, damages, expenses or
liabilities referred to therein, then each Indemnifying Party under this Section
5.6, in lieu of indemnifying such indemnified party thereunder, shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages, expenses or liabilities (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company, the
other Selling Holders and the underwriters, if any, from the offering of the
Registrable Interests or (ii) if the allocation provided by clause (i) above is
not permitted by Applicable Law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company, the other Selling Holders and the
underwriters, if any, in connection with the statements or omissions which
resulted in such losses, claims, damages, expenses or liabilities, as well as
any other relevant equitable considerations. 
The relative benefits received by the Company, the Selling Holders and
the underwriters, if any, shall be deemed to be in the same respective proportions
that the net proceeds from the offering (before deducting expenses) received by
the Company and the Selling Holders and the underwriting discount received by
the underwriters, if any, in each case as set forth in the table on the cover
page of the applicable prospectus, bear to the aggregate public offering price
of the Registrable Interests.  The
relative fault of the Company, the Selling Holders and the underwriters, if
any, shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company, the Selling Holders or the underwriters and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

The
Company and the Selling Holders agree that it would not be just and equitable
if contribution pursuant to this Section 5.6(b) were determined by pro
rata or per capita allocation or by any other method of allocation which does
not take account of the equitable considerations referred to in the immediately
preceding paragraph.  In no event,
however, shall a Selling Holder be required to contribute any amount under this
Section 5.6(b) in excess of the net proceeds (before deducting expenses)
received by such Selling Holder from its sale of 

 28
 

Registrable
Interests under such registration statement. 
No person found guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not found guilty of such fraudulent
misrepresentation.

(c)           As
promptly as is reasonably practicable after receipt by a party seeking
indemnification pursuant to this Section 5.6 (an “Indemnified Party”) of written notice of any investigation,
claim, proceeding or other action in respect of which indemnification is being
sought (each, a “Claim”), the Indemnified Party
promptly shall notify the party against whom indemnification pursuant to this Section
5.6 is being sought (the “Indemnifying Party”)
of the commencement thereof; but the omission to so notify the Indemnifying
Party shall not relieve it from any liability hereunder, except to the extent
that the Indemnifying Party is materially prejudiced by reason of such
failure.  In connection with any Claim,
the Indemnifying Party shall be entitled to assume the defense thereof.  Notwithstanding the assumption of the defense
of any Claim by the Indemnifying Party, the Indemnified Party shall have the
right to employ separate legal counsel and to participate in the defense of
such Claim, and the Indemnifying Party shall bear the reasonable fees,
out-of-pocket costs and expenses of such separate legal counsel to the
Indemnified Party if (and only if): (x) the Indemnifying Party shall have
agreed to pay such fees, costs and expenses, (y) the Indemnified Party shall
reasonably have concluded that representation by the same legal counsel would
not be appropriate due to (i) actual or potentially differing interests between
such parties in the conduct of the defense of such Claim, or (ii) legal
defenses that may be available to the Indemnified Party that are in addition to
or disparate from those available to the Indemnifying Party, or (z) the
Indemnifying Party shall have failed to employ legal counsel reasonably
satisfactory to the Indemnified Party and take action to defend such claim
within 30 days after notice of the commencement of such Claim or the
Indemnifying Party shall, in the reasonable judgment of the Indemnified Party,
have ceased to conduct a diligent defense of such claim.  If the Indemnified Party employs separate
legal counsel in circumstances other than as described in clauses (x), (y) or
(z) above, the fees, costs and expenses of such legal counsel shall be borne
exclusively by the Indemnified Party. 
Except as provided above, the Indemnifying Party shall not, in
connection with any Claim in the same jurisdiction, be liable for the fees and
expenses of more than one firm of counsel for the Indemnified Party (together
with appropriate local counsel).  No
Indemnifying Party shall, without the prior written consent of the Indemnified
Party, settle or compromise any Claim or consent to the entry of any judgment
with respect thereto, unless such settlement, compromise or consent (i)
includes an unconditional release of each Indemnifying Party from all
liabilities with respect to such Claim or judgment and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any Indemnified Party.

(d)           The
indemnification and contribution provided for in this Section 5.6 will
remain in full force and effect regardless of any investigation made by or on
behalf of the Indemnified Parties or any officer, director, employee, agent or
Controlling Person of the Indemnified Parties.

Section 5.7  Rule 144 Requirements.  If the Company becomes subject to the
reporting requirements of either Section 13 or 15(d) of the Exchange Act,
the Company will use its reasonable best efforts thereafter to file with the
Commission such information as is specified under either of said Sections for
so long as any of the Mezzanine Investors (i) holds any Registrable Interests
or (ii) otherwise qualifies to sell Registrable Interests pursuant to Rule
144(k) under the Securities Act (or any successor or similar exemptive rules
hereafter in effect); and in such event, the Company shall use its reasonable
best efforts to take all action as may be 

 29
 

required
as a condition to the availability of Rule 144 under the Securities Act (or any
successor or similar exemptive rules hereafter in effect).  The Company shall furnish to any transfer
agent or registrar upon request a written statement as to the steps it has
taken to comply with the current public information requirement of Rule 144 or
such successor rules.

Section 5.8  Market Stand-Off.  Each Securityholder agrees, if requested by
the Company and an underwriter of Registrable Interests in connection with any
Qualified Public Offering, not to directly or indirectly sell, offer to sell,
contract to sell (including, without limitation, any short sale), grant any
option to purchase or otherwise Transfer or dispose of any Securities or any
other securities of the issuer of the securities in a Qualified Public Offering
during any “blackout period” required by any underwriter in connection with a
Qualified Public Offering, which “blackout period” shall in no event exceed the
earlier of (i) 180 days from the date securities are first sold in the
Qualified Public Offering, and (ii) the date any holder of 1% or more of the
voting common equity securities of the Company, which holder was previously
restricted by any such “blackout period”, is able to Transfer all or any
portion of its voting common equity securities free from any such
restriction.  In order to enforce the
foregoing covenant, the issuer in such Qualified Public Offering may impose
stop-transfer instructions with respect to the securities of each
Securityholder (and the shares or securities of every other person subject to
the foregoing restriction) until the end of such “blackout period.”

Section 5.9  Transfer of Registration Rights.  The registration rights and related
obligations under this Article V of the Mezzanine Investors with respect
to their Registrable Interests may be Transferred in connection with any
transaction or series of related transactions complying with Article III,
or to any other Mezzanine Investor, and upon any such Transfer and execution of
the Joinder Agreement such Transferee shall be deemed to be included within the
definition of an “Mezzanine Investor” for purposes of this Article V
with the rights set forth herein.

Section 5.10  Other Agreements.  The Company, BH/RE and the Member each agree
that it shall not enter into any agreement or arrangement other than this
Agreement pursuant to which it grants or agrees to grant to any other Person
registration rights in respect of any capital interests of the Company, BH/RE
or the Member, other than registration rights contemplated by Section 9.12 of
the Amended and Restated Operating Agreement of EquityCo as amended by the
BH/RE-Starwood Agreement, that are in any respect senior or otherwise more
favorable when taken as a whole to the rights of the Mezzanine Investors
hereunder unless (i) the Company, BH/RE or the Member, as the case may be,
receives the prior written consent of the Majority Holders or (ii) the
Mezzanine Investors relinquish their registration rights pursuant to this
Article V (other than pursuant to Section 5.2 and Section 5.3) in
exchange for the same registration rights being granted to such other Person.

ARTICLE
VI — RESERVED

ARTICLE
VII — AFFIRMATIVE COVENANTS OF THE

COMPANY, BH/RE AND THE MEMBER

The Company and the Member covenant, acknowledge and agree as follows:

 30
 

Section 7.1  Additional Indebtedness.  Upon the incurrence of Indebtedness other
than Permitted Indebtedness or Indebtedness incurred in a refinancing of the
outstanding principal amount of Permitted Indebtedness (together with any
premiums, accrued interest and any reasonable fees and expenses incurred
therewith) (such amount, the “Debt Threshold”),
the Company shall, within five (5) Business Days, provide written notice
thereof to the Member and each Mezzanine Investor (the “Debt Notice”), which notice shall specify
the amount of Indebtedness outstanding at the time, as well as the amount by
which such Indebtedness exceeds the Debt Threshold (the “Additional Debt”).  The Member shall cause a total capital
contribution to be made to the Company in an amount equal to 20% of the
Additional Debt (the “Additional Capital Amount”)
as promptly as possible, but in no event more than thirty (30) days after the
date of the Debt Notice. For clarity, any third-party refinancing of the
Indebtedness (including any premiums, accrued interest and any reasonable fees
and expenses incurred as a result of any such third-party refinancing) will not
trigger the Additional Capital Amount. 
Any equity interests issued in connection with such capital contribution
shall be membership interests of the type outstanding on the Closing Date.

Section 7.2  Restrictions on Equity Interests. 
The Company shall (a) obtain the  approval of the Nevada Gaming Commission
prior to issuing  any additional securities
or admitting any additional members; and 
(b)  furnish to the Nevada State
Gaming Control Board, within 10 calendar days after the end of each fiscal
quarter of the Company, a complete list of all Securityholders, with respect to
all the Company’s Equity Interests.

The Member shall obtain the
approval of the Nevada Gaming Commission prior to declaring any dividends or
distributions with respect to any of the Company’s securities, including
without limitation, any Interests held by the Mezzanine Investors.

Section 7.3  Put Right.  The Mezzanine Investors have
the right to put their Warrants and Warrant Interests to the Company in
accordance with the terms of the Warrants. 
The Company further acknowledges that the Put Right (as defined in the Warrants)
shall continue to apply to any Warrant Interests held by a Mezzanine Investor,
notwithstanding a full exercise or exchange of the Warrants held by such
Mezzanine Investor.

Section 7.4  Communication with Gaming Authorities.  If and to the extent that the Company is
required or requested to communicate or meet with any Gaming Authority or
otherwise intends to communicate or meet with any Gaming Authority regarding
any matter that adversely affects the rights and remedies of the Mezzanine
Investors hereunder or under any of the other Restructuring Documents, the
Company will (i) provide any affected Securityholder with prior notification of
any such meeting or communication to the extent practicable under the
circumstances and to the extent permitted by applicable law and (ii) either (A)
request that any such Securityholder be allowed to attend such meting or
participate in such communication (it being understood that the Company will
have no obligation to ensure that such attendance or participation is available
to the Securityholder, such decision ultimately resting with the applicable
Gaming Authority) or (B) if such Securityholder is not entitled to attend or
participate, inform such Securityholder of the substance of the discussions at
such meeting or of such communication to the extent permitted by the Gaming
Authorities or applicable law, provided that the Company shall not be required
to disclose privileged information or any information that it is prohibited
from disclosing by the Gaming Laws or by such Gaming 

 31
 

Authority.  Notwithstanding the foregoing, the Company
shall not be required to take any action under this Section 7.4 if, in
its sole discretion, such action could reasonably be expected to materially
prejudice the granting, continuation or renewal of any Gaming License of the
Company, OpBiz, EquityCo, BH/RE or any of their Affiliates or any other permit
or license material to the Company’s or OpBiz’s business.

Section 7.5  Tax Covenants.  Each of the Member and BH/RE shall maintain
its status as a partnership for federal income tax purposes at all times prior
to any Parent Registration (as defined in Section 5.2).  The Member shall convert to a C corporation
for federal income tax purposes in connection with any registration of its
Equity Interests (or securities convertible into or exchangeable or exercisable
for its Equity Interests) under Section 5.2.  BH/RE shall convert to a C corporation for
federal income tax purposes in connection with any registration of its Equity
Interests (or securities convertible into or exchangeable or exercisable for
its Equity Interests) under Section 5.2. 
Prior to any such  Parent
Registration, neither the Member nor BH/RE will have income which is either (i)
“effectively connected with the conduct of a trade or business within the
United States” under Code Sections 871(b) or 882, or (ii) “unrelated business
taxable income” under Code Sections 512 or 514.

Section 7.6  Books and Records.  The Company will, and will cause its
Subsidiaries to: (a) maintain, at all times, correct and complete books,
records and accounts in which complete, correct and timely entries are made of
its transactions in accordance with GAAP; (b) reflect by means of
appropriate entries in such accounts and in all financial statements proper
liabilities and reserves for all Taxes and proper provision for depreciation
and amortization of Property and bad debts, all in accordance with GAAP; and
(c) permit, upon reasonable prior notice to the Company and during normal
business hours, agents and designated representatives of the Majority Holders
to visit and inspect any of the properties or assets of the Company and any of
its Subsidiaries and to examine the books of account of the Company and any of
its Subsidiaries and discuss the affairs, finances and accounts of the Company
and any of its Subsidiaries with, and be advised as to the same by, the
officers and independent accountants of the Company or such Subsidiary, all at
such reasonable times and intervals and to such reasonable extent as the Majority
Holders may request; provided that no information obtained pursuant to
clause (c) may be shared with a Competitor.

Section 7.7  Financial and Other Information.  The Company will furnish to each Mezzanine
Investor one copy of each of the following:

(a)           within 120 days after the end of each Fiscal Year,
(i) Consolidated balance sheets and Consolidated income statements showing
the financial condition of the Company and its Subsidiaries as of the close of
such Fiscal Year and the results of their operations during such year, and
(ii) a Consolidated statement of members’ equity and a Consolidated
statement of cash flow, as of the close of such Fiscal Year, all the foregoing
financial statements to be audited by a Big 4 or other independent
certified public accountants reasonably acceptable to the Majority Holders, and
to be in form and substance reasonably acceptable to the Majority Holders;

(b)           within 30 days after the end of each fiscal month
unaudited Consolidated income statements of the Company and its Subsidiaries
and within 60 days after the 

 32
 

end of each Fiscal Quarter unaudited
Consolidated and consolidating balance sheets and Consolidated and
consolidating income statements showing the financial condition and results of
operations of the Company and its Subsidiaries as of the end of each such
quarter, a Consolidated and consolidating statement of members’ equity and a
Consolidated and consolidating statement of cash flow as of the end of each
such quarter, prepared and certified by an Approved Officer of the Company as
presenting fairly in all material respects the financial condition and results
of operations of the Company and its Subsidiaries and as having been prepared
in accordance with GAAP consistently applied, setting forth in the case of each
Consolidated statement in comparative form the corresponding figures for the
corresponding quarter of the preceding year and corresponding figures for the
period beginning with the first day of the current Fiscal Year and ending on
the last day of the relevant Fiscal Quarter and the corresponding period for
the previous Fiscal Year, in each case subject to footnotes and normal year-end
audit adjustments;

(c)           (i) promptly after the same become publicly
available, copies of such registration statements, annual, periodic and other
reports, and such proxy statements and other information, if any, as shall be
filed by the Company or any Subsidiary with the SEC pursuant to the
requirements of the Securities Act or the Exchange Act; (ii) as soon as
practicable, copies of all material reports, forms, filings and financial
information submitted by the Company or any Subsidiary to any other
Governmental Authority and all material reports submitted to its interest
holders; (iii) within 5 Business Days after receipt by the Company or any
Subsidiary thereof, copies of any exception reports prepared by any Gaming
Authority and (iv) within 5 Business Days of filing by the Company or any
Subsidiary with any Gaming Authority, copies of any and all reports of borrowings
on form 8.130 or its equivalent;

(d)           as soon as available, but in any event not later than
December 31 of each Fiscal Year, the Company’s annual internal operating
budget (which shall list with reasonable specificity the Company’s good faith
estimate of planned Capital Expenditures of all types whatsoever) for the next
Fiscal Year, and as soon as prepared and available any amendments thereof
prepared in the ordinary course;

(e)           concurrently with any delivery under (a) or (b) (solely in
the case of quarterly deliveries) above, a management discussion and analysis
certified by the Company describing any differences between the reported
financial results under the financial statements delivered thereunder from the
budget required by clause (d), which shall include, among any other information
or explanation reasonably requested by the Majority Holders (i) the
calculation of EBITDA for the Fiscal Quarter last ended and (ii) a list of
any Capital Expenditures made during such Fiscal Quarter and shall set forth in
connection with any such Capital Expenditures made during such Fiscal Quarter,
the amount and nature of any such expenditure with attached copies of any
contracts entered into, invoices received and evidence of payment made with
respect to any such expenditure together with mechanic’s liens releases in
connection with any payments made by the Company or any Subsidiary;

(f)            concurrently with any delivery under (a) above, a
management letter prepared by the independent public accountants who reported
on the financial statements delivered under (a) above, with respect to the
internal audit and financial controls of the Company and its Subsidiaries;

(g)           any gaming reports generated by the Company or any of its
Subsidiaries;

 33
 

(h)           as soon as available, but in any event not later than
December 31 of each Fiscal Year, a consolidated and consolidating plan and
financial forecast for the next Fiscal Year and each subsequent Fiscal Year,
including (i) forecasted consolidated and consolidating balance sheets and
forecasted consolidated and consolidating statements of income and cash flows
of the Company and its Subsidiaries for such Fiscal Years, together with an
explanation of the assumptions on which such forecasts are based and
(ii) such other information and projections for such Fiscal Years as the
Majority Holders may reasonably request;

(i)            as soon as available, but in any event not later than 30
calendar days following the end of each fiscal month, a monthly operating
report for the month then ended which shall include items used by the Company
and its Subsidiaries in measuring their operating and financial performance in
the ordinary course which shall include, without limitation, the average daily
room rate, food and beverage revenue per room, gaming revenue and the other
items as may otherwise be prepared by the Company in the ordinary course of its
management and financial reporting so long as any such items are acceptable to
the Majority Holders, together with such other information reasonably requested
by the Majority Holders;

(j)            promptly upon receipt thereof, copies of all material
notices, reports, budgets, forecasts, proposals, studies, financial statements
and other information provided by any Manager, any casino operator or any
Leasing Manager;

(k)           at the request of the Majority Holders, a copy of each
annual report or other filing filed with respect to each Plan of the Company or
any ERISA Affiliate;

(l)            a monthly report on the progress of the renovations in
form and substance reasonably satisfactory to the Majority Holders, which in
any event shall include a narrative description of the progress to date, a
comparison between expenses incurred to date and budgeted expenses, a timeline
illustrating the remaining steps to be taken to completion, and projected expenses
to be incurred to completion;

(m)          concurrently
with the delivery of any financial and other reports and notices to the CMBS
Lender under the CMBS Documents or any other holder of Indebtedness, a copy of
all such financial and other reports and notices so delivered; and

(n)           such
additional information as the Majority Holders may from time to time reasonably
request regarding the financial and business affairs, operations or prospects
of the Company and its Subsidiaries.

Section 7.8  Notices.  In addition to any other notices required
hereunder, the Company shall notify each Mezzanine Investor, in writing, of the
following matters at the following times (except that in the case of clause
(a), the Company shall notify all Mezzanine Investors):

(a)           Immediately after becoming aware of the existence of any “
default” or any “event of default” under the CMBS Documents or any
Indebtedness;

(b)           Immediately after becoming aware that (i) any Manager
has terminated a Management Agreement or otherwise ceased acting as Manager, or
(ii) any Leasing Manager has terminated a Leasing Services Agreement, or
has otherwise ceased managing such portions of the Premises or (iii) the
Planet Hollywood License Agreement has been terminated;

 34
 

(c)           Promptly after receiving notice (but in no event later
than five days after the earlier of (i) receiving such notice or
(ii) the occurrence of any such change) of a change in the composition of
the members or other equity holders of the Investor Group;

(d)           Promptly after receiving notice  (but in no event later than five days after
the earlier of (i) receiving such notice or (ii) the occurrence of
any such change) of any change in the composition of the Governing Body that
manages the operations of the Company or its Subsidiaries;

(e)           Within five Business Days after becoming aware of:

(i)            any material
adverse change in the Property, business, operations, or condition (financial
or otherwise) or prospects of the Company and its Subsidiaries taken as a whole
(including, without limitation any Casualty Event);

(ii)           any pending action,
proceeding, or counterclaim (or action, proceeding or counterclaim that has
been threatened in writing) by any Person, or any pending or threatened
investigation by a Governmental Authority, which is reasonably likely to have a
Material Adverse Effect;

(iii)          any pending or
threatened strike, work stoppage, material unfair labor practice claim, or
other material labor dispute which is reasonably likely to have a Material
Adverse Effect;

(iv)          any violation of any
law, statute, regulation, or ordinance of a Governmental Authority applicable
to the Company or any Subsidiary, which is reasonably likely to have a Material
Adverse Effect; and

(v)           the fact that the
Company or any Subsidiary has materially violated any Environmental Laws or
that its compliance is being investigated in respect of an alleged material
failure to comply with any Environmental Law.

(f)            Not less than thirty (30) days prior to the Company
changing its name or the location of its chief executive office or its
jurisdiction of organization or formation;

(g)           Within five (5) days of the Company’s or any Subsidiaries’
receipt or giving of same, a copy of any written notice under, pursuant to or
in connection with any Lease or Material Operating Agreement, (i) alleging
a default by the Company, such Subsidiary or lessee or any other Persons
thereunder, (ii) setting forth a claim against the Company or such
Subsidiary or any Manager in an amount greater than $1,500,000 or
(iii) exercising a renewal, extension, expansion or termination option
thereunder;

(h)           Promptly upon receipt of same by the Company or any of its
Subsidiaries, a copy of any written notice or other written instrument which
might materially adversely affect the Premises, including any written notice
from a Governmental Authority concerning any tax or special assessment, or any
written notice of any change in or alleged violation of any zoning ordinance,
fire ordinance, building code provision, or other legal requirement affecting
the Premises;

 

 35

 

(i)            Within
30 days after the end of each quarter, any sales and other Dispositions of
Property permitted by the CMBS Documents, consummated during such quarterly
period; and

(j)            Three
Business Days prior to entering into any merger permitted under the CMBS
Documents.

Each notice given under this
Section 7.8 shall describe the subject matter thereof in reasonable
detail and shall set forth the action that the Company has taken or proposes to
take with respect thereto.

Section 7.9  Existence, Good Standing and Legal
Requirements.

(a)           The
Company will, and will cause its Subsidiaries to, maintain its corporate or
limited liability company, as applicable, existence and its qualification and
good standing in Nevada and all other states necessary to conduct the Business
and own its Property, and shall obtain and take all actions which may be
required to preserve, renew and extend Permits (including, without limitation,
any Permits or authorizations relating to the sale of alcohol), franchises and
governmental authorizations necessary to conduct the Business and own its
Property and to operate and maintain the Premises in accordance with this
Agreement, the CMBS Documents, the Management Agreement (if any), the Leasing
Services Agreement (if any), and any other Material Operating Agreements, in
each case except to the extent, other than with respect to corporate or limited
liability company, as applicable, existence, that the failure to maintain the
foregoing is not reasonably likely to have a Material Adverse Effect.  The Company shall, and shall cause its
Subsidiaries to, comply with all laws, rules, regulations and governmental
orders (whether Federal, state or local) (including, without limitation, all
Gaming Laws) applicable to the operation of such businesses whether now in
effect or hereafter enacted (including, without limitation, all Applicable
Laws, rules, regulations and governmental orders promulgated by any Gaming
Authority and all those relating to public and employee health and safety and
all Environmental Laws) and with any and all other Applicable Laws, rules,
regulations and governmental orders, except to the extent where such
noncompliance is not reasonably likely to have a Material Adverse Effect.

(b)           The
Company and its Subsidiaries shall have the right, in good faith, to contest by
appropriate legal proceedings, after notice to the Majority Holders, the
validity of any Legal Requirement and to postpone the compliance therewith,
provided that (i) such contest shall operate to prevent the enforcement thereof,
(ii) such contest shall be promptly and diligently prosecuted by and at
the expense of the Company or its Subsidiaries, (iii) neither the Company,
any of its Subsidiaries nor the Mezzanine Investors shall suffer or would be
the subject of any civil or criminal liabilities, penalties or sanctions,
(iv) the Company and its Subsidiaries shall comply with such contested
Legal Requirement if at any time all or any part of the Premises shall be in
danger of being foreclosed, sold, forfeited, or otherwise lost or materially
impaired or if such contest shall be discontinued, (v) the Company shall
agree to indemnify and hold harmless the Mezzanine Investors from and against
any liability and claims arising out of the postponement of the compliance with
such Legal Requirement, and (vi) the Company shall, prior to commencing
any such proceedings, furnish proof reasonably satisfactory to the Majority
Holders that it has established a reserve account in an amount not less than
the amount of any penalties, including interest and additional charges which
may be incurred as a result of such contest or has 

 36
 

otherwise, to the reasonable satisfaction of
the Majority Holders, provided for the payment of such amounts.

Section 7.10  Election of Directors; Observation Rights.   The Company shall allow one
representative of the Majority Holders, reasonably acceptable to the Company,
to attend and participate, in a non-voting capacity, in all meetings and other
activities of the Governing Bodies of the Company and each of its Subsidiaries
(the “Board Observer”).  The Company
shall (i) give the Mezzanine Investors
notice of all such meetings, at the same time as furnished to the directors of
the Company and any of its Subsidiaries, (ii) pay the reasonable out-of-pocket
costs and expenses of the Board Observer in connection with attendance at such
meetings or other activities, (iii) provide to the Board Observer all notices,
documents and information furnished to the directors of each of the Company and
its Subsidiaries whether at or in anticipation of a meeting, an action by
written consents or otherwise, at the same time furnished to such directors,
(iv) notify the Board Observer and permit the Board Observer to participate by
telephone in, emergency meetings of such Governing Body and all such committees
thereof, as the case may be, (v) provide the Board Observer copies of the
minutes of all such meetings at the time such minutes are furnished to the
Governing Body or committee thereof of the Company and it Subsidiaries, and (vi)
cause regularly-scheduled meetings of the Governing Body of each of the Company
and its Subsidiaries to be held no less frequently than quarterly, with at
least four (4) meetings per year held in person (including by teleconference). Subject to
Gaming Authority approval (as required) and no violation of the Gaming Laws, the Majority Holders
shall be entitled to elect one (1) director to the Governing Body of the
Company and each of its Subsidiaries hereunder (“Majority Holder Nominee”), and
the Company shall take all such action under its Articles of Organization,
by-laws and other organizational documents necessary to effect the appointment
and election of the Majority Holder Nominee to the Governing Body, and the
Member agrees to vote all of its Interests having voting power (and any other
Interests over which they exercise voting control) in connection with the
election of directors and to take such other actions as are necessary so as to
elect and continue in office as directors such Persons for so long as such
holders are otherwise entitled to the right to appoint the Majority Holder
Nominee and the Board Observer under this Section 7.10. All committees of the
Governing Body of the Company and each of its Subsidiaries shall include at
least one Majority Holder Nominee.

Section
7.11  CMBS Guarantees; Reimbursements.

(a)           If
EquityCo or any other guarantor of the CMBS Facility or any Indebtedness that
refinances or replaces the CMBS Facility, in whole or in part (the “Parent Guarantors”) incur any obligation pursuant to such
Guarantees (a “Parent Guarantees”), the Company
and the Parent Guarantors agree that the sole recourse of the Parent Guarantors
to EquityCo, the Company and their respective Subsidiaries will be the right of
such Parent Guarantors to receive additional common Interests in the Company of
the type authorized and issued as of the date hereof in satisfaction of any
obligations incurred by the Parent Guarantors pursuant to the Parent
Guarantees; provided, that such additional common Interests issued to
the Parent Guarantors shall not be dilutive to the percentage interest of any
Mezzanine Investor, and the number of Warrant Interests (as defined in the
Warrants) issuable upon exercise or conversion of the Warrant by such Mezzanine
Investor shall be increased by the number of units of additional Equity
Interests as is necessary to maintain at least the same percentage interest of
such Mezzanine Investor in the Company and, indirectly, in its Subsidiaries,
that such Mezzanine 

 37
 

Investor’s Warrant represented immediately prior to such issuance to
the Parent Guarantors.  The limitations
set forth in this paragraph shall apply equally to any issuance of Interests by
the Company in exchange for a capital contribution made by any Person in lieu of a payment by the Parent
Guarantors on the Parent Guarantees, whether or not a demand has been made
under the Parent Guarantees.

(b)           In
no event shall the Parent Guarantors and their Affiliates receive in excess of
$2 million in the aggregate in any Fiscal Year for providing the Parent
Guarantees and management, consulting and advisory services to EquityCo and its
Subsidiaries.

Section 7.12  Costs, Expenses and Taxes.  The Company agrees to pay all reasonable
out-of-pocket costs and expenses of the Mezzanine Investors (including
reasonable legal fees of one general legal counsel to the Mezzanine Investors
and one Nevada counsel to the Mezzanine Investors) in connection with the
preparation, execution and delivery of this Agreement, the Warrants, the other
Restructuring Documents and any other instruments and documents to be delivered
hereunder, and in connection with the consummation of the transactions
contemplated hereby and thereby, as well as all reasonable out-of-pocket costs
and expenses incurred by the Mezzanine Investors in connection with the
amendment, waiver (whether or not such amendment or waiver becomes effective)
or enforcement of this Agreement, the Warrants, the other Restructuring
Documents, and other instruments and documents to be delivered hereunder and
thereunder.  In addition, the Company
agrees to pay (a) any and all stamp and other similar Taxes (expressly
excluding income and capital gain taxes) payable or determined to be payable by
any Mezzanine Investor in connection with the execution and delivery of this
Agreement, the Warrants, the other Restructuring Documents, and the other
instruments and documents to be delivered hereunder or thereunder, (b) the
expenses of preparing Warrants from time to time in connection with exchanges,
replacements and transfers of Warrants, and (c) the expenses of delivering
copies of Restructuring Documents to Mezzanine Investors.

Section 7.13  Indemnification.  In addition to the payment of expenses
pursuant to Section 7.12, whether or not the transactions contemplated
by this Agreement shall be consummated, the Company, EquityCo and each of their
Subsidiaries (collectively, the “Indemnitors”) agree, jointly and severally, to
indemnify, pay and hold each of the Mezzanine Investors and the partners,
members, officers, directors, employees, beneficiaries, customers, attorneys
and agents of each of the Mezzanine Investors (collectively, the “Indemnitees”)
harmless from and against, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, claims, costs, expenses and
disbursements of any kind or nature whatsoever (including, without limitation,
the reasonable fees and disbursements of counsel for such Indemnitees in
connection with any investigative, administrative or judicial proceeding,
whether or not such Indemnitees shall be designated a party thereto), which may
be imposed on, incurred by, or asserted against such Indemnitee, in any manner
relating to or arising out of (i) this Agreement, the Securities, and the other
Restructuring Documents and all other matters related thereto or in connection
therewith, (ii) the violation of any securities law by the Indemnitors in
connection with or otherwise affecting the transactions contemplated by this
Agreement, unless the violation resulted from a breach by such Indemnitee of
its representations contained in Section 2.1, (iii) the failure of any
of the parties (other than the Indemnitees) to the Restructuring Documents to
comply with any law, rule or regulation applicable to the transactions
contemplated thereby or (iv) violations of any Environmental Law by the
Indemnitors with respect to the Premises (the “Indemnified Liabilities”);
provided that the Indemnitors shall have 

 38
 

no
obligation to any Indemnitee hereunder with respect to (a) Indemnified
Liabilities which are determined by a final court decision or arbitral award to
have resulted from the gross negligence or willful misconduct of that
Indemnitee or (b) any intentional violation of the Gaming Laws by an
Indemnitee.  To the extent that the
undertaking to indemnify, pay and hold harmless set forth in the preceding
sentence may be unenforceable because it violates any law or public policy, the
Company shall contribute the maximum portion which it is permitted to pay and
satisfy under Applicable Law, to the payment and satisfaction of all
Indemnified Liabilities incurred by the Indemnitees or any of them.  The provisions of this Section 7.13
will survive the termination of this Agreement and the issuance of the Warrant
Interests unless agreed in writing by the applicable Indemnitors and each
affected Indemnitee.

ARTICLE VIII NEGATIVE COVENANTS
OF THE COMPANY AND THE MEMBER

The Company and the Member
shall not, and shall not permit any of their Subsidiaries to:

Section 8.1  Transactions with Affiliates.  Except as set forth below or as otherwise
permitted hereunder, other than existing on the Closing Date and as described
on Schedule 8.1 annexed hereto, sell, transfer, distribute, or pay any
money or Property to any Affiliate, or lend or advance money or Property to any
Affiliate, or invest in (by capital contribution or otherwise) or purchase or
repurchase any stock or indebtedness, or any Property, of any Affiliate, or
become liable on any guaranty of the indebtedness, dividends, or other
obligations of any Affiliate other than (i) transactions that are not material
to the Company and its Subsidiaries; (ii) customary and reasonable fees,
indemnities and reimbursements may be paid to officers and directors of the
Company and its Subsidiaries; (iii) the employment, noncompetition or
confidentiality agreements with employees in the ordinary course of business;
(iv) management fees paid to any Manager, and license and/or franchise
fees paid by OpBiz to Planet Hollywood pursuant to the Planet Hollywood License
Agreement (subject to the terms of the Amended and Restated License
Subordination Agreement dated as of the date hereof and entered into among the
Mezzanine Investors, Planet Hollywood International, Inc., Planet Hollywood
Memorabilia, Inc. and OpBiz); or (v) loans or advances made to employees
to fund moving and travel expenses and the exercise price of options granted
under employment agreements or stock option plans or agreements not to exceed
$400,000 outstanding at any time.

Section 8.2  Business Conducted.   Engage,
directly or indirectly, in any line of business other than that directly
relates to the Premises or reasonably incidental thereto.  The Company shall not discontinue the
operation of the Premises or any material portion thereof without the prior
written consent of the Majority Holders, which consent shall not be
unreasonably withheld or delayed.

Section 8.3  Tax Classification.  Take any action, or permit any Person to take
any action which would result in the Company not being classified as an
association taxable as a corporation for federal tax purposes.

Section 8.4  Limitations on Incurrence of Indebtedness
and Issuance of Interests.  Notwithstanding any provision of this
Agreement to the contrary, no Indebtedness shall be incurred by EquityCo or any
of its Subsidiaries and no additional Interests in the Company 

 39
 

shall
be issued to any Person, until such time as at least $50 million in cash  is contributed to the Company (the “Minimum Equity Contribution”) for common Interests of the
type authorized and issued as of the date hereof.  In no event shall the Interests issuable in
respect of the Minimum Equity Contribution be dilutive to the percentage
interest of any Mezzanine Investor, and in connection with any such issuance
the number of Warrant Interests (as defined in the Warrants) issuable upon
exercise or conversion of the Warrant by such Mezzanine Investor shall be
increased by the number of units of additional Equity Interests as is necessary
to maintain at least the same percentage interest of such Mezzanine Investor in
the Company and, indirectly, in its Subsidiaries, that such Mezzanine Investor’s
Warrant represented immediately prior to the Minimum Equity Contribution.  Upon request of any Mezzanine Investor, the
Company shall deliver a certificate of an Approved Officer confirming the
adjustment to the Warrant.  The
requirement to make a Minimum Equity Contribution shall be reduced by, on a
dollar-for-dollar basis, by (a) the net proceeds received by the Company in a
Qualified Public Offering,  (b) the fair
market value of any common Interests issued by the Company in satisfaction of
any obligations incurred by the Parent Guarantors pursuant to the Parent
Guarantees, and (c) the net proceeds received by the Company in exchange for an
issuance of common Interests on market terms in which third parties contribute
at least half of the capital invested at a gross equity valuation of the
Company and its Subsidiaries of at least $200 million.

ARTICLE
IX - MISCELLANEOUS PROVISIONS

Section 9.1  Survival of Covenants.  Each of the parties hereto agrees that each
covenant and agreement made by it in this Agreement or in any certificate,
instrument or other document delivered pursuant to this Agreement is material,
shall be deemed to have been relied upon by the other parties and shall remain
operative and in full force and effect after the date hereof regardless of any
investigation.  This Agreement shall not
be construed so as to confer any right or benefit upon any Person other than
the parties hereto and their respective successors and permitted assigns to the
extent contemplated herein.

Section 9.2  Legends on Securities.  The Company and the Securityholders
acknowledge and agree that the following legends shall be typed on each
certificate evidencing any of the securities subject hereto held at any time by
any of the Securityholder:

THE SECURITIES REPRESENTED HEREBY AND THE UNDERLYING
SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION
STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS EFFECTIVE UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT RELATING TO THE DISPOSITION OF SECURITIES, 

 40
 

(2) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES AND
BLUE SKY LAWS AND (3) IN ACCORDANCE WITH APPLICABLE STATE GAMING LAWS AND
REQUIREMENTS AND RESTRICTIONS IMPOSED BY THE NEVADA GAMING COMMISSION.

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE
PROVISIONS OF A CERTAIN AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT, DATED
AS OF NOVEMBER 30, 2006, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER SET FORTH
THEREIN.  A COMPLETE AND CORRECT COPY OF
SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE
COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

WHEN THE LIMITED LIABILITY COMPANY ISSUING THE
OWNERSHIP INTEREST REPRESENTED BY THIS CERTIFICATE HAS BEEN LICENSED BY OR
REGISTERED WITH THE NEVADA GAMING COMMISSION, THE PURPORTED SALE, ASSIGNMENT,
TRANSFER, PLEDGE, GRANTING OF ANY OPTION TO PURCHASE OR OTHER DISPOSITION OF
SUCH INTEREST SHALL BE INEFFECTIVE UNLESS APPROVED IN ADVANCE BY THE NEVADA
GAMING COMMISSION.  IF AT ANY TIME THE
NEVADA GAMING COMMISSION FINDS THAT A MEMBER IS UNSUITABLE TO HOLD SUCH
INTEREST, THE COMPANY SHALL REDEEM THE MEMBER’S INTEREST ON THE TERMS PROVIDED
IN THE AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT DATED AS OF NOVEMBER 30,
2006 OR THE COMPANY’S OPERATING AGREEMENT. 
BEGINNING ON THE DATE WHEN THE NEVADA GAMING COMMISSION SERVES NOTICE OR
A DETERMINATION OF UNSUITABILITY PURSUANT TO APPLICABLE LAW UPON THE COMPANY,
IT SHALL BE UNLAWFUL FOR THE UNSUITABLE MEMBER (A) TO RECEIVE ANY DIVIDEND OR
INTEREST OR ANY PAYMENT OR DISTRIBUTION OF ANY KIND, INCLUDING OF ANY SHARE OF
THE DISTRIBUTION OF PROFITS OR CASH OR ANY OTHER PROPERTY, OR PAYMENTS UPON
DISSOLUTION, FROM THE COMPANY, OTHER THAN A RETURN OF CAPITAL AS REQUIRED
ABOVE; (B) TO EXERCISE DIRECTLY OR THROUGH ANY PROXY, TRUSTEE OR NOMINEE ANY
VOTING RIGHT CONFERRED BY THE MEMBER’S INTEREST IN THE COMPANY; (C) TO
PARTICIPATE IN THE MANAGEMENT OF THE COMPANY; OR (D) TO RECEIVE ANY
REMUNERATION IN ANY FORM FROM THE COMPANY OR FROM ANY COMPANY HOLDING A GAMING
LICENSE FOR SERVICES RENDERED OR OTHERWISE.

 41
 

Section 9.3  Amendment and Waiver.  Any party may waive any provision hereof intended
for its benefit in writing.  No failure
or delay on the part of any party hereto in exercising any right, power or
remedy hereunder shall operate as a waiver thereof.  The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to any
party hereto at law or in equity or otherwise. 
This Agreement may be amended with the prior written consent of each of
(a) the Company, (b) the Majority Holders, and (c) the Member; provided  however,
that no amendment or waiver of Section 3.1 (restrictions on transfer), Section
3.2 (co-sale option), Section 3.3 (drag-along obligations), Section
3.5 (assignment), Section 4.1 (right to participate), Section 4.2
(assignment) or Section 5.6 (indemnification; contribution),  Section 7.1 (additional debt), Section
7.3 (put right), this Section 9.3 (amendment and waiver), or Section
8.14 (term), shall be effective against any Mezzanine Investor that is
adversely affected by such amendment or waiver and that does not consent to
such amendment or waiver; provided, further, no amendment or
waiver of this Agreement shall be effective against any party that is adversely
affected by such amendment or waiver unless such party consents to such
amendment or waiver.

Section 9.4  Notices.  All notices and other communications provided
for herein shall be in writing and shall be deemed to have been duly given,
delivered and received (a) if delivered personally or (b) if sent by facsimile,
registered or certified mail (return receipt requested) postage prepaid, or by
courier guaranteeing next day delivery, in each case to the party to whom it is
directed at the following addresses (or at such other address for any party as
shall be specified by notice given in accordance with the provisions hereof,
provided that notices of a change of address shall be effective only upon
receipt thereof).  Notices delivered
personally shall be effective on the day so delivered, notices sent by
registered or certified mail shall be effective three days after mailing,
notices sent by facsimile shall be effective when receipt is acknowledged, and
notices sent by courier guaranteeing next day delivery shall be effective on
the earlier of the second Business Day after timely delivery to the courier or
the day of actual delivery by the courier:

	
  If to the Company:

  	
   

  	
  MezzCo, L.L.C. . 

  
	
   

  	
   

  	
  c/o OpBiz, L.L.C

  
	
   

  	
   

  	
  3667 Las Vegas Boulevard South 

  
	
   

  	
   

  	
  Las Vegas, NV 89109 

  
	
   

  	
   

  	
  Attention: Joshua Revitz c/o Debbie Faint 

  
	
   

  	
   

  	
  Facsimile No.: (702) 785-5080

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Greenberg Traurig LLP

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10166

  
	
   

  	
   

  	
  Attention: Joseph Kishel, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (212) 801-6400

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Bay Harbour Management, L.C.

  
	
   

  	
   

  	
  885 Third Avenue, 34th Floor

  
	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
  Attention: Joshua Revitz

  
	
   

  	
   

  	
  Facsimile No.: (212) 371-7497

  
	
   

  	
   

  	
   

  

 

 42
 

 

	
  If to any
  Mezzanine Investor:

  	
   

  	
  To the address specified on the signature page
  hereto for such 

  
	
   

  	
   

  	
  Mezzanine Investor

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Proskauer Rose LLP  

  
	
   

  	
   

  	
  One International Place 

  
	
   

  	
   

  	
  Boston, MA 02110 

  
	
   

  	
   

  	
  Attention: Stephen A. Boyko, Esq. 

  
	
   

  	
   

  	
  Facsimile No.: (617) 526-9899

  
	
   

  	
   

  	
   

  
	
  If to the
  Member:

  	
   

  	
  At such address is as found in the Company’s records

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Greenberg Traurig LLP 

  
	
   

  	
   

  	
  200 Park Avenue 

  
	
   

  	
   

  	
  New York, New York 10166 

  
	
   

  	
   

  	
  Attention: Joseph Kishel, Esq. 

  
	
   

  	
   

  	
  Facsimile No.: (212) 801-6400

  

 

Section 9.5  Headings.  The Article and Section headings used or
contained in this Agreement are for convenience of reference only and shall not
affect the construction of this Agreement.

Section 9.6  Counterparts; Facsimiles.  This Agreement may be executed in one or more
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which together
shall be deemed to constitute one and the same agreement.  Any signature delivered by a party by
facsimile transmission shall be deemed an original signature hereto.

Section 9.7  Remedies; Severability.  It is specifically understood and agreed that
any breach of the provisions of this Agreement by any Person subject hereto
will result in irreparable injury to the other parties hereto, that the remedy
at law alone will be an inadequate remedy for such breach, and that, in
addition to any other legal or equitable remedies which they may have, such
other parties, to the extent permitted by law, shall be entitled to equitable
relief (including, without limitation, specific performance) without any
requirement as to the posting of any bond or other indemnity securing such
remedy, and the Company may refuse to recognize any unauthorized Transferee as
one of its members for any purpose, including, without limitation, for purposes
of dividend and voting rights, until the relevant party or parties have complied
with all applicable provisions of this Agreement.

In the event that any one or
more of the provisions contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions contained herein shall not
be in any way impaired thereby, it being intended that all of the rights and
privileges of the parties hereto shall be enforceable to the fullest extent
permitted by law.

Section 9.8  Entire Agreement; No Conflict.  This Agreement is intended
by the parties as a final expression of their agreement and intended to be
complete and exclusive 

 43
 

statement
of the agreement and understanding of the parties hereto in respect of the
subject matter contained herein.  Except
as specifically provided herein or in the other Restructuring Documents, this
Agreement and the other agreements specifically contemplated hereby (including
the exhibits hereto and thereto) supersede all prior agreements and
understandings between the parties with respect to such subject matter,
including the Original Investor Rights Agreement and the Original Warrants
(each of which is being amended and restated as of the date hereof).

Section 9.9  Adjustments.  All references to unit prices and amounts
herein shall be equitably adjusted to reflect splits, dividends,
recapitalizations and similar changes affecting the capital interests of the
Company.

Section 9.10  Law Governing.  This Agreement shall be construed and
enforced in accordance with and governed by the laws of the State of New York
(without giving effect to principles of conflicts of law).  Each party also waives trial by jury in any
action relating to this Agreement. 
Notwithstanding the foregoing, matters of law in this Agreement that
are  (x) related to gaming in Nevada
shall be governed by the Gaming Laws and (y) related to limited liability
companies organized under Nevada law shall be governed by applicable provisions
of Nevada law.

Section 9.11  Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the respective successors and permitted assigns of the
parties hereto as contemplated herein, and any successor to the Company by way
of merger or otherwise shall specifically agree to be bound by the terms hereof
as a condition of such successor.  The
rights of the Mezzanine Investors hereunder shall be assignable to Transferees
of their Securities as contemplated herein.

Section 9.12  Consent to Jurisdiction; Waiver of Jury
Trial.

THE COMPANY, EACH
SECURITYHOLDER AND EACH OTHER PARTY HERETO AGREE THAT NONE OF THEM NOR ANY
TRANSFEREE, ASSIGNEE OR SUCCESSOR SHALL (A) SEEK A JURY TRIAL IN ANY LAWSUIT,
PROCEEDING, COUNTERCLAIM OR ANY OTHER ACTION BASED UPON OR ARISING OUT OF, THIS
AGREEMENT OR THE DEALINGS OR THE RELATIONSHIP BETWEEN OR AMONG ANY OF THEM, OR
(B) SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY
TRIAL CANNOT BE OR HAS BEEN WAIVED. 
EXCEPT AS PROHIBITED BY LAW, THE COMPANY, EACH SECURITYHOLDER AND EACH
OTHER PARTY HERETO HEREBY WAIVES ANY RIGHT WHICH IT MAY HAVE TO CLAIM OR
RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE ANY SPECIAL,
EXEMPLARY, PUNITIVE, MULTIPLE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
THAN, OR IN ADDITION TO, ACTUAL DAMAGES. 
THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY DISCUSSED BY THE
COMPANY, EACH SECURITYHOLDER AND EACH OTHER PARTY HERETO WITH THEIR RESPECTIVE
COUNSEL, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS.  NO PARTY HERETO  HAS AGREED WITH OR REPRESENTED TO ANY OTHER
PARTY THAT THE PROVISIONS OF THIS PARAGRAPH WILL NOT BE FULLY ENFORCED IN ALL
INSTANCES.

 44
 

THE COMPANY, EACH
SECURITYHOLDER AND EACH OTHER PARTY HERETO IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT SITTING IN THE STATE OF NEW YORK
OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE SECURITIES.  TO
THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, THE COMPANY,
EACH SECURITYHOLDER AND EACH OTHER PARTY HERETO IRREVOCABLY WAIVES AND AGREES
NOT TO ASSERT, BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, ANY CLAIM THAT IT
IS NOT SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION
OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

Section 9.13  No Third Party Beneficiaries.  Except as expressly provided herein, no
person not a party hereto shall have any rights under this Agreement.

Section 9.14  Non-Disclosure.  Each Securityholder covenants and agrees that
it and any of its Affiliates, shareholders, partners, members, managers,
directors, and each of their respective employees, attorneys, advisors and
other representatives (each a “Securityholder Party”) shall hold in strict
confidence (except as otherwise required by Applicable Law), and not use for
any purpose or in any manner other than pursuant to the transactions
contemplated by this Agreement and the other Restructuring Documents, any
confidential, proprietary or material non-public information obtained from the
Company, any Subsidiary, any member of the Investor Group or any of their
respective Subsidiaries or Affiliates, or from any other Securityholder in
connection with this Agreement or any other Restructuring Document
(collectively, “Confidential Information”);
provided that information generally known in the gaming industry based on
information received from Persons who had a right to disclose the same to such
Securityholder shall not be (and shall not be deemed to be) Confidential
Information hereunder.  Each Securityholder
shall not, and shall cause each Securityholder Party not to, disclose any
Confidential Information obtained by such Person; provided, however, each
Securityholder may disclose such Confidential Information (a) to its examiners,
Affiliates (including partners, members and other investors in such
Securityholder), outside auditors, counsel and other professional advisors, (b)
to any Securityholder or to any prospective holder of Securities that is not a
Competitor, provided that such prospective holder is obligated to maintain the
confidentiality thereof, (c) as required or requested by any Governmental
Authority or representative thereof or pursuant to legal process and (d) to
protect, enforce or define such Securityholder’s rights with respect to the Restructuring
Documents (but not to a Competitor).  In
no event shall any Securityholder be obligated to return any materials
furnished by the Company.

Section 9.15  Term.  Except for Articles III and IV hereof,
which terminate as provided therein, this Agreement shall remain in effect
until the earlier to occur of (i) such time as the parties hereto agree in
writing and (ii) with respect to any Mezzanine Investor, such time as such
Mezzanine Investor is no longer a holder of any Securities; provided, however,
that any provision with respect to the payment of expenses or indemnification
obligations of any party, and the provisions of Article IX hereof, shall
survive the termination of this Agreement.

 

 45

 

IN WITNESS WHEREOF,
the parties hereto have caused this Investor Rights Agreement to be duly
executed as of the date first set forth above.

	
  

  	
   

  	
  THE COMPANY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MezzCo, L.L.C.,

  
	
   

  	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEMBER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EquityCo, L.L.C.,

  
	
   

  	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

SOLELY TO
ACKNOWLEDGE AND AGREE TO

THE
PROVISIONS OF SECTION 2.1, SECTION
3.2(f), SECTION 4.2, SECTION 5.2, SECTION 5.10,  SECTION
7.1 AND SECTION 7.5

	
  BH/RE, L.L.C.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Douglas P. Teitelbaum

  	
   

  	
   

  
	
  Title:

  	
  Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  Robert Earl

  	
   

  	
   

  
	
  Title:

  	
  Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

 

SOLELY TO
ACKNOWLEDGE AND AGREE TO

THE
PROVISIONS OF  SECTION 2.1,
SECTION 3.2(f), AND SECTION 5.2:

	
  

  	
   

  
	
  Douglas P. Teitelbaum, individually

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Robert Earl, individually

  

 

 

	
  

  	
  MEZZANINE INVESTORS:

  
	
   

  	
   

  
	
   

  	
   

  	
  POST TOTAL RETURN MASTER FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its General 

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POST DISTRESSED MASTER FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its General 

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STATE OF SOUTH DAKOTA RETIREMENT 

  
	
   

  	
   

  	
  SYSTEM FUND

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its Authorized 

  
	
   

  	
   

  	
   

  	
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  c/o Post Advisory Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  

 

 

	
  

  	
   

  	
  DB DISTRESSED OPPORTUNITIES MASTER 

  
	
   

  	
   

  	
  PORTFOLIO, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its Authorized 

  
	
   

  	
   

  	
   

  	
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  c/o Post Advisory Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MW POST PORTFOLIO FUND, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its Authorized 

  
	
   

  	
   

  	
   

  	
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  c/o Post Advisory Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE OPPORTUNITY FUND, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its Authorized 

  
	
   

  	
   

  	
   

  	
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  c/o Post Advisory Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  

 

 

	
  

  	
   

  	
  HFR DS OPPORTUNITY MASTER TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, L.L.C., its Authorized 

  
	
   

  	
   

  	
   

  	
  Agent

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A. Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notices

  
	
   

  	
   

  	
  c/o Post Advisory Group, L.L.C.

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POST HIGH YIELD, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, LLC, its General 

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A Post

  
	
   

  	
   

  	
   

  	
  Title:    Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notice:

  
	
   

  	
   

  	
  c/o Post Advisory Group, LLC

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POST BALANCED FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Post Advisory Group, LLC, its General 

  
	
   

  	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:  Lawrence
  A Post

  
	
   

  	
   

  	
   

  	
  Title:   Chief
  Investment Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for notice:

  
	
   

  	
   

  	
  c/o Post Advisory Group, LLC

  
	
   

  	
   

  	
  11755 Wilshire Boulevard, Suite 1400

  
	
   

  	
   

  	
  Los Angeles, CA 90025

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
  

  	
   

  	
  SPHINX DISTRESSED FUND SPC, a Cayman Islands company
  (in

  
	
   

  	
   

  	
  Official Liquidation pursuant to an Order of the
  Grand Court dated 

  
	
   

  	
   

  	
  28 July 2006)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Kenneth Krys

  
	
   

  	
   

  	
  Title: Joint Official Liquidator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Christopher Stride

  
	
   

  	
   

  	
  Title: Joint Official Liquidator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

	
  

  	
  CANPARTNERS INVESTMENTS IV, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4:

  
	
   

  	
  c/o Canyon Capital Advisors, L.L.C.

  
	
   

  	
  9665 Wilshire Boulevard, Suite 200

  
	
   

  	
  Beverly Hills, CA 90212

  

 

	
  

  	
  CONTINENTAL CASUALTY COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4:

  
	
   

  	
  333 South Wabash Avenue – 23 South

  
	
   

  	
  Chicago, IL 60604

  

 

	
  

  	
  JOHN HANCOCK HIGH YIELD FUND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Ismail Gunes

  
	
   

  	
   

  	
   

  	
  Title:  Vice
  President Investment Operations

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4:

  
	
   

  	
  101 Huntington Avenue

  
	
   

  	
  Boston, MA 02199

  

 

	
  

  	
  COCHRAN ROAD, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Steven Golub

  
	
   

  	
   

  	
   

  	
  Title:   Attorney-in-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4:

  
	
   

  	
  225 Broadway, Suite 1515

  
	
   

  	
  New York, NY 10007

  

 

	
  

  	
  YORK CREDIT OPPORTUNITIES FUND, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Adam J. Semler

  
	
   

  	
   

  	
   

  	
  Title:   Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4

  
	
   

  	
  767 Fifth Avenue, 17th Floor

  
	
   

  	
  New York, NY 10153

  

 

	
  

  	
   

  	
   

  
	
   

  	
  JEFFREY D. BENJAMIN

  
	
   

  	
   

  
	
   

  	
  Address for notices under Section 9.4:

  
	
   

  	
  133 East 64th Street

  
	
   

  	
  New York, NY 10021

  

 

 

EXHIBIT A

CMBS Documents

EXHIBIT B

Form of Joinder Agreement

The undersigned
hereby agrees, effective as of the date hereof, to become a party to that
certain Amended and Restated Investor Rights Agreement (the “Agreement”) dated as of November 30, 2006 by
and among MezzCo, L.L.C. (the “Company”)
and the parties named therein and for all purposes of the Agreement, the
undersigned shall be included within the term [“Non-Mezz
Investor”] [OR] [“Mezzanine Investor”] (as defined in the
Agreement).  The address and facsimile
number to which notices may be sent to the undersigned is as follows:

	
  Facsimile No.

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF UNDERSIGNED]

  
				

Exhibit C

Pledge Agreement

[Attached]

Exhibit D

Description of the Premises

[Attached]

Schedule 8.1

Transactions with AffiliatesExhibit
10.49

AMENDED AND RESTATED

WARRANT TO PURCHASE

MEMBERSHIP INTERESTS

OF

MEZZCO, L.L.C.

THIS WARRANT AND
THE UNDERLYING SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED, SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A
REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS EFFECTIVE UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT RELATING TO THE DISPOSITION OF SECURITIES, (2) IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES AND BLUE SKY LAWS AND (3) IN
ACCORDANCE WITH APPLICABLE STATE GAMING LAWS AND REQUIREMENTS AND RESTRICTIONS
IMPOSED BY THE NEVADA GAMING COMMISSION.

THE MEMBERSHIP
INTERESTS ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO THE PROVISIONS
OF A CERTAIN AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT, DATED AS OF
NOVEMBER 30, 2006, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER SET FORTH
THEREIN.  A COMPLETE AND CORRECT COPY OF
SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE
COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

WHEN THE LIMITED
LIABILITY COMPANY ISSUING THE OWNERSHIP INTEREST REPRESENTED BY THIS
CERTIFICATE HAS BEEN LICENSED BY OR REGISTERED WITH THE NEVADA GAMING
COMMISSION, THE PURPORTED SALE, ASSIGNMENT, TRANSFER, PLEDGE, GRANTING OF ANY
OPTION TO PURCHASE OR OTHER DISPOSITION OF SUCH INTEREST SHALL BE INEFFECTIVE
UNLESS APPROVED IN ADVANCE BY THE COMMISSION. 
IF AT ANY TIME THE COMMISSION FINDS THAT A MEMBER IS UNSUITABLE TO HOLD
SUCH INTEREST, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
WARRANT SHALL BE SUBJECT TO REDEMPTION AND/OR REPURCHASE, PURSUANT TO THE TERMS
SET FORTH HEREIN.  BEGINNING ON THE DATE
WHEN THE COMMISSION SERVES NOTICE OR A DETERMINATION OF UNSUITABILITY PURSUANT
TO APPLICABLE LAW UPON THE COMPANY, IT SHALL BE UNLAWFUL FOR THE UNSUITABLE MEMBER
(A) TO RECEIVE ANY DIVIDEND OR INTEREST OR ANY PAYMENT OR DISTRIBUTION OF ANY
KIND, INCLUDING OF ANY SHARE OF THE DISTRIBUTION OF PROFITS OR CASH OR ANY
OTHER PROPERTY, OR PAYMENTS UPON DISSOLUTION, FROM THE COMPANY, OTHER THAN A
RETURN OF CAPITAL AS REQUIRED ABOVE; (B) TO EXERCISE DIRECTLY OR THROUGH ANY
PROXY, TRUSTEE OR NOMINEE ANY VOTING RIGHT CONFERRED BY THE MEMBER’S INTEREST
IN THE COMPANY; (C)

TO PARTICIPATE IN
THE MANAGEMENT OF THE COMPANY; OR (D) TO RECEIVE ANY REMUNERATION (OTHER THAN
THE REDEMPTION PRICE) IN ANY FORM FROM THE COMPANY OR FROM ANY COMPANY HOLDING
A GAMING LICENSE FOR SERVICES RENDERED OR OTHERWISE.

	
  Warrant No. 1

  	
   

  	
  August 9, 2004

  
	
   

  	
   

  	
   

  

MEZZCO, L.L.C., a Nevada limited liability company (the
“Company”), hereby certifies that, for value received and pursuant to
the Securities Purchase Agreement dated as of August 9, 2004, between the
Company and the Purchasers named therein (the “Purchase Agreement”), BEAR STEARNS
SECURITIES CORP. F/A/O
POST TOTAL RETURN FUND, L.P.  (together with
its successors and permitted assigns and any permitted transferees of this
Warrant, and their successors and permitted assigns, the “Holder”), is
entitled, subject to the terms and conditions set forth in this warrant (this “Warrant”)
and subject to (i) all applicable Gaming Laws and the requirements imposed by
the Commission, and (ii) Section 1.7 hereof, to purchase from the
Company, at any time or times on or after the date hereof, but not after 5:00
P.M., New York City time on December 9, 2012 or, if extended pursuant to Section
3.1, September 9, 2013 (the “Expiration Date”), an aggregate of
THREE HUNDRED ONE AND SEVENTY TWO ONE HUNDREDTHS (301.72) duly authorized and
validly issued units representing Interests of the Company, which shall consist
of (i) Class B Units of the Company (the “Class B Units”), or (ii) if
the Holder so elects, in its sole and absolute discretion, either Class A Units
of the Company (the “Class A Units”) or a combination of Class A Units
and Class B Units (such Class A Units and/or Class B Units together with the
securities issuable upon exercise of the Warrants in accordance with the terms
hereof, including, without limitation, Section 2.2(b) and Section
2.2(e), which securities are issuable by an entity other than the Company
or issuable in a different class of securities, collectively, the “Warrant
Interests”).  At any time prior to
the Expiration Date but after a Qualified Public Offering and subject to all
applicable Gaming Laws and the requirements imposed by the Commission, this
Warrant shall be exercisable by Holder only for voting common equity securities
of the same class as those that are issued by the Company (or any successor
thereto) in such Qualified Public Offering. 
The number of Warrant Interests issuable pursuant to this Warrant shall
be adjusted or readjusted from time to time as provided in this Warrant.  The purchase price per unit at which each
Warrant Interest shall be purchased upon exercise of the Warrant shall be equal
to $0.01 at all times (the “Exercise Price”).

This Warrant is one of the “Warrants” originally
issued pursuant to the Purchase Agreement (collectively, the “Warrants,”
such term to include any warrants issued in substitution therefor), and the
Holders of the Warrants shall be collectively referred to herein as the “Holders”.  This Warrant was amended and restated on                                      ,
200    , and replaces the Warrant for the same face amount
of units issued on August 9, 2004.  The
Warrants evidence rights to purchase an aggregate of 17,500 units representing
membership interests of the Company, consisting of (i) Class B Units, or (ii)
at the election of the Holders of Warrants, either Class A Units or a
combination of Class A Units and Class B Units (the “Membership Interests”),
subject to adjustment as provided herein and therein.  As of August 9, 2004, the Warrant Interests
issuable upon exercise of the Warrants represented 17.5% of the fully-diluted

 2
 

Equity Interests of the Company (after taking into
account dilution from the Mecca Options but excluding dilution from the
Management Pool).

All capitalized terms used herein and not otherwise
defined herein shall have the meanings set forth in the Investor Rights
Agreement.  Certain terms defined herein are
so defined in Section 6.17 or in the section referenced with respect
thereto in Section 6.18.

Section 1.              Registration;
Transferability; Exercise; Exchange of Warrant

1.1.         Registration 
The Company shall number and register the Warrants in a register (the “Warrant
Register”) maintained at the principal office of the Company (its “Office”).
The Company shall be entitled to treat the Holder of the Warrants as the owner
thereof for all purposes and shall not be bound to recognize any equitable or
other claim to or interest in such Warrants on the part of any other
Person.  Each transferee registered, or
required to be registered in the Warrant Register pursuant to Section 1.2
below, shall be registered (or deemed to have been registered) for all purposes
hereunder as of the date of the surrender of this Warrant as provided in Section
1.2  and compliance with the other
provisions of Section 1.2.

1.2.         Transfer of Warrants 
Subject to the restrictions on transfer set forth in the Investor Rights
Agreement (as defined below) and in Section 5.2 hereof, the Gaming Laws
and any requirements or restrictions imposed by the Commission, any Warrant may
be transferred or endorsed to another party in whole or in part by (i)
surrendering to the Company the Warrant to be transferred, endorsed or
accompanied by a written instrument of transfer, in form reasonably
satisfactory to the Company, duly executed by the Holder thereof, (ii)
supplying the Company with an appropriate opinion of counsel in form reasonably
satisfactory to the Company, and investment letter, if deemed reasonably
necessary by counsel to the Company to assure compliance with the Securities
Act, and (iii) the transferee of such Warrant agreeing in writing to be bound
by the provisions of this Warrant, the Investor Rights Agreement, the Gaming
Laws, and any requirements or restrictions imposed by the Commission.  Upon receipt thereof, the Company shall issue
and deliver, in the name of the transferee, a new Warrant for the same type and
number of Warrant Interests, containing the same terms as the surrendered
Warrant.  The Company shall register in
the Warrant Register, each transferee of a Warrant transferred in compliance
with the terms of this Section 1.2 as the Holder of such transferred
Warrant.  In the case of the transfer of
fewer than all of the rights evidenced by the surrendered Warrant, the Company
shall issue a new Warrant to the Holder thereof for the same type and remaining
number of such Warrants.

1.3.         Manner of Exercise; Exchange.

(a)           Exercise  Subject to Sections 1.6 and 1.7
hereof, the Gaming Laws, and the requirements or restrictions imposed by the
Commission, the Holder may exercise this Warrant, in whole or in part (except
as to a fractional interest), at any time and from time to time during normal
business hours on any Business Day on or prior to the Expiration Date, by (i)
delivering to the Company a written notice, in the form attached hereto as Exhibit
A (the “Exercise Notice”), duly executed by the Holder, specifying
the number and type of Warrant Interests to be issued to the Holder as a result
of such exercise, (ii) surrendering this Warrant to

 3
 

the Company, properly endorsed by the Holder (or if
this Warrant has been destroyed, stolen or has otherwise been misplaced, by
delivering to the Company an affidavit of loss duly executed by the Holder),
and (iii) by tendering payment for the Warrant Interests designated by the
Exercise Notice in lawful money of the United States in the form of cash, bank
or certified check made payable to the order of the Company, or by wire
transfer of immediately available funds, of an amount equal to the product of
(A) the Exercise Price and (B) the number of Warrant Interests as to which this
Warrant is being exercised and (iv) executing and delivering to the Company any
and all documents and certificates required for admission as a member of the
Company.

(b)           Net Exchange  Subject to the Gaming Laws and the
requirements or restrictions imposed by the Commission and Section 1.7
hereof, the Holder may, in lieu of exercising or converting this Warrant
pursuant to the terms of Section 1.3(a), elect to exchange this
Warrant, in whole or in part (except as to a fractional interest), at any time
and from time to time during normal business hours on any Business Day on or
prior to the Expiration Date by (i) delivering to the Company a written notice,
in the form attached hereto as Exhibit B (the “Exchange Notice”),
duly executed by the Holder, specifying the number and type of Warrant
Interests to be issued to the Holder as a result of such exchange, and
(ii) surrendering this Warrant to the Company, properly endorsed by the
Holder (or if this Warrant has been destroyed, stolen or has otherwise been
misplaced, by delivering to the Company an affidavit of loss duly executed by
the Holder), and the Holder shall thereupon be entitled to receive that number
of Warrant Interests of the same type being exchanged, equal to the product of
(A) the number of Warrant Interests issuable upon exercise of this Warrant (or,
if only a portion of this Warrant is being exercised, issuable upon the
exercise of such portion) for cash, determined as provided in Section 2,
and (B) a fraction, the numerator of which is the Fair Market Value (as defined
below) per unit of Membership Interest at the time of such exercise minus the Exercise Price in effect at the time of such
exercise, and the denominator of which is the Fair Market Value per unit of
Membership Interest at the time of such exercise, such number of interests so
issuable upon such exchange to be rounded up or down to the nearest whole
number of units of Membership Interest.

(c)           Tax Status.
The “exchange” of this Warrant pursuant to Section 1.3(b) is intended to
qualify as a recapitalization within the meaning of Section 368(a)(1)(E) of the
Code.  It is intended that the Warrants
are and shall be mere unexercised options for federal income tax purposes.

(d)           For all purposes of
this Warrant (other than this Section 1.3), any reference herein to the
“exercise” of this Warrant shall be deemed to include a reference to the
exchange of this Warrant into Warrant Interests in accordance with the terms of
Section 1.3(b), and any reference to an “Exercise Notice” shall be
deemed to include a reference to an Exchange Notice in accordance with the terms
of Section 1.3(b).

1.4.         When Exercise Effective 
Subject to the Gaming Laws and the requirements or restrictions imposed
by the Commission and Section 1.7 hereof, each exercise of this Warrant
shall be deemed to have been effected immediately prior to the close of
business on the Business Day on which the Holder shall have fulfilled all of
the requirements of Section 1.3, and at such time the Person or Persons
in whose name or names any certificate or certificates for units of

 4
 

Membership Interest shall be issuable upon such
exercise as provided in Section 1.5 shall be deemed to have become the
holder or holders of record thereof.

1.5.         Delivery of Certificates Upon Exercise 
As soon as
practicable after exercise of this Warrant in accordance with this Section 1,
but in no event later than five Business Days after such exercise, the Company
shall at its expense cause to be issued in the name of and delivered to the
Holder or, subject to Section 5 of this Warrant, as the Holder may
direct: (a) a certificate or certificates for the number and type of Warrant
Interests, determined as provided in Section 2 of this Warrant, to which
the Holder shall be entitled upon such exercise and, (b) unless this Warrant
has expired or has been exercised in full, a new Warrant (or Warrants)
substantially in the form of, and on the terms in, this Warrant, for the number
and type of Warrant Interests remaining following such exercise (without giving
effect to any adjustment thereto), and shall be subject to adjustment as provided
for in this Warrant as of the date hereof.

1.6.         Exercise Subject to Gaming Approval 
Notwithstanding any other provision of this Warrant, the Holder of this
Warrant may only exercise this Warrant upon receipt of any and all applicable
gaming licenses, findings of suitability, approvals, appropriate waivers from
the licensing requirements pursuant to NGC Regulation 15B.070 or upon the
Commission’s granting of an order of registration to the Company that allows
the Holder of this Warrant to exercise this Warrant without receipt of all
applicable gaming licenses, findings of suitability or waivers from the
licensing requirements or other approvals (“Gaming Approvals”).  The Company will reasonably cooperate with
the Holder in obtaining any Gaming Approvals and meeting any other requirements
that the Gaming Authorities may impose in connection with such exercise
(including by filing a Form 10 with the Securities and Exchange Commission and
the filing of an application for registration as a publicly traded corporation
by the Commission after the Closing Date within one month of the written
request by the Required Interest).  The
costs of obtaining Gaming Approval and meeting any other requirements that the
Gaming Authorities may impose in connection with such exercise shall be borne
equally by Libra Securities, LLC, on the one hand, and the Required Interest,
on the other hand).

1.7.         CMBS Facility  Notwithstanding
any other provision of this Warrant, the Holder of this Warrant may not
exercise this Warrant until such time as EquityCo and the Company, as the case
may be, have complied with Sections 3.9 and 3.10 of the Investor Rights
Agreement; provided, however, the restriction on exercise of this
Warrant shall lapse on May 29, 2007, regardless of whether Sections 3.9 and
3.10 of the Investor Rights Agreement have been complied with, and after
such period, the provisions of this Section 1.7 shall have no effect and
the Holder may exercise this Warrant in accordance with the other provisions
hereof.

1.8.         Cancellation of Warrant 
Upon surrender of this Warrant for exchange, substitution, transfer or
exercise, the Company shall cancel and retire it.

Section
2.  Adjustments to Exercise Price and
Warrant Interests

2.1.         General 
The number of Warrant Interests that the Holder shall be entitled to
receive upon exercise of this Warrant shall be determined by multiplying the
number of Warrant Interests which would otherwise (but for the provisions of
this Section 2) be issuable upon such

 5
 

exercise, as designated by the Holder in the Exercise
Notice, by a fraction, (i) the numerator of which shall be the Exercise Price,
and (ii) the denominator of which shall be the Antidilution Price (as defined
below) in effect on the date of such exercise. 
The price per unit of Membership Interest for the purposes of
calculating the number of Warrant Interests issuable hereunder (the “Antidilution
Price”) initially shall be $0.01.

2.2.         Adjustments.

(a)           Subdivision or
Combination of Membership Interests 
If the Company shall at any time after the date hereof subdivide its
outstanding units of Membership Interest into a greater number of units (by any
split, dividend or otherwise), then the Antidilution Price in effect
immediately prior to such subdivision shall be proportionately reduced, and,
conversely, if the Company shall at any time after the date hereof combine its
outstanding units of Membership Interest into a smaller number of units of
Membership Interest (by any reverse split or otherwise), then the Antidilution
Price in effect immediately prior to such combination shall be proportionately
increased.

(b)           Reorganization or
Reclassification  If any capital
reorganization or reclassification of the membership interests of the Company
shall be effected in such a way that holders of Membership Interests shall be
entitled to receive membership interests, securities or assets with respect to
or in exchange for Membership Interests, then, as a condition of such
reorganization or reclassification, lawful and adequate provisions shall be
made whereby, subject to the Gaming Laws and any requirements or restrictions
imposed by the Commission, the Holder shall thereupon have the right to
receive, upon the basis and upon the terms and conditions specified herein and
in lieu of the Warrant Interests immediately theretofore receivable upon the
exercise of this Warrant in full, as the case may be, such membership
interests, securities or assets as may be issued or payable with respect to or
in exchange for a number of outstanding units of Membership Interest equal to
the number of units of Membership Interest immediately theretofore receivable
upon such exercise of this Warrant in full had such reorganization or
reclassification not taken place, and in any such case appro­priate provisions
shall be made with respect to the rights and interests of the Holder to the end
that the provisions hereof (including, without limitation, provisions for
adjustments of the Antidilution Price) shall thereafter be applicable, as
nearly as may be, in relation to any membership interests, securities or assets
thereafter deliverable upon the exercise of such conversion rights.

(c)           Dividends and
Distributions

(i)          Dividends  If the Company at any time or from time to
time after the date hereof declares a dividend or makes any other distribution
upon any membership interests of the Company other than Membership Interests,
which dividend or distribution is payable in units of Membership Interest,
Options (as defined below) or Convertible Securities (as defined below), any
Membership Interests, Options or Convertible Securities, as the case may be,
issuable in payment of such dividend or distribution shall be deemed to have
been issued or sold without consideration, and the Antidilution Price shall be
adjusted pursuant to Section 2.2(d); provided, however,
that no adjustment shall be made to the Antidilution Price as a result of such
dividend or distribution if the Holder is entitled to, and actually receives
such dividend or distribution in accordance with Section 2.2(c)(ii)(B); provided,
further, that if any adjustment is

 6
 

made to the Antidilution Price as a result of the
declaration of a dividend and such dividend is not effected, the Antidilution
Price shall be appropriately readjusted to the Antidilution Price that would
have been in effect had such dividend not been declared.

(ii)         Other Dividends and Distributions  If the Company at any time or from time to
time after the date hereof makes or issues, or fixes a record date for the
determination of holders of Membership Interests entitled to receive, a
dividend or other distribution (in each case other than to pay Operating
Expenses) payable in:

(A)          cash or securities or other property
of the Company other than Membership Interests, Options or Convertible
Securities then the Holder shall receive such dividend or distribution as if
the Holders had exercised all of the Warrants in full on the date such record
is taken; and

(B)           Membership Interests, Options or
Convertible Securities, the Holder shall receive such dividend or distribution
as if the Holder had exercised the Warrants in full on the date such record is
taken; provided, however, that no Holder shall be required to
accept any such dividend or distribution if it deems such refusal to be
required or advisable under applicable law, in which case such Holder’s rights
to receive such dividend or distribution shall be exercisable upon the exercise
of the Warrant on the same terms as if exercised as otherwise contemplated
under this provision (and, without duplication, the Antidilution Price
applicable to such Holder’s Warrants shall be adjusted pursuant to Section
2.2 with respect to such dividend or distribution).

(iii)        Restrictions on Divisions and
Distributions.  The declaration of a
dividend or the making of a distribution by the Company shall at all times be
subject to the Gaming Laws and any requirements or restrictions imposed by the
Commission.

(d)           Issuances  Except as provided in Section 2.2(d)(vi)
and except in the case of an event described in Section 2.2(a), if at
any time after the date hereof the Company shall issue or sell Membership
Interests (including deemed issuance or sales thereof) for a consideration per
unit of Membership Interest less than the Current Market Price (as defined
below) per unit of Membership Interest in effect immediately prior to the date
of such issuance or sale (such date, the “Relevant Date”), then, upon
such issuance or sale, the Antidilution Price then in effect shall be adjusted
to the price determined by multiplying the Antidilution Price then in effect by
a fraction: (i) the numerator of which shall be the sum of (A) the
Membership Interests Deemed Outstanding (as defined below) immediately prior to
such offering including, for this purpose, all units of Membership Interest
that are then issuable upon exercise or conversion of Options and Convertible
Securities and (B) the number of units of Membership Interest that the
aggregate consideration received by the Company for the total number of such
additional units of Membership Interest so issued or sold (or deemed issued or
sold) would purchase at the Current Market Price on the Relevant Date; and (ii)
the denominator of which shall be the sum of (A) the Membership Interests
Deemed Outstanding immediately prior to the consummation of such issuance or
sale, including, for this purpose, all Membership Interests that are then
issuable upon exercise or conversion of Options and Convertible Securities
outstanding immediately prior to such issuance or sale, and (B) the number of
units of Membership Interest

 7
 

issued or sold and/or units of Membership Interest
that are issuable upon exercise or conversion of any Options or Convertible
Securities issued or sold for which an adjustment (or readjustment) to the
Antidilution Price is being made.

For purposes of this Section 2.2(d), the
following shall also be applicable:

(i)            Issuance
of Rights or Options  If the Company,
at any time after the date hereof grants (whether directly or by assumption in
a merger or otherwise) any warrants or other rights to subscribe for or to
purchase, or any options to purchase, units of Membership Interest or any
membership interests or security convertible into or exchangeable for units of
Membership Interest (such warrants, rights or options being called “Options”
and such convertible or exercisable membership interests or securities being
called “Convertible Securities”), in each case for consideration per
unit of Membership Interest (determined as provided in this paragraph and in Section
2.2(d)(iv)) less than the Current Market Price per unit of Membership
Interest then in effect, whether or not such Options or Convertible Securities
are immediately exercisable, convertible, or exchangeable, then the total
maximum number of units of Membership Interest issuable upon the exercise of
such Options, or upon conversion or exchange of the total maximum amount of
such Convertible Securities issuable upon exercise of such Options, shall be
deemed to have been issued as of the date of granting of such Options, at a
price per unit of Membership Interest equal to the amount determined by
dividing (A) the total amount, if any, received or receivable by the
Company as consideration for the issuance of such Options, plus
the minimum aggregate amount of additional consideration payable to the Company
upon the exercise of all such Options, plus, in the
case of such Options that relate to Convertible Securities, the minimum
aggregate amount of additional consideration, if any, payable upon the issuance
or sale of such Convertible Securities and upon the conversion or exchange of
Convertible Securities, by (B) the total maximum number of units of
Membership Interests deemed to have been so issued.  Except as otherwise provided in Section
2.2(d)(iii), no adjustment of the Antidilution Price shall be made upon the
actual issuance of such Membership Interests or of such Convertible Securities
upon exercise of such Options or upon the actual issuance of such Membership
Interests upon conversion or exchange of such Convertible Securities.

(ii)           Issuance
of Convertible Securities  If the
Company, at any time after the date hereof issues or sells any Convertible
Securities for consideration per unit of Membership Interest (determined as
provided in this paragraph and in Section 2.2(d)(iv)) less than the Current
Market Price then in effect, whether or not the right to exchange or convert
any such Convertible Securities is immediately exercisable, then the total
maximum number of units of Membership Interest issuable upon conversion or
exchange of all such Convertible Securities shall be deemed to have been issued
as of the date of the issuance or sale of such Convertible Securities, at a
price per unit of Membership Interest equal to the amount determined by
dividing (A) the total amount, if any, received or receivable by the
Company as consideration for the issuance or sale of such Convertible
Securities, plus the minimum aggregate amount of
additional consideration, if any, payable to the Company upon the conversion or
exchange thereof, by (B) the total maximum number of units of Membership
Interest deemed to have been so issued; provided, however, that
(1) except as otherwise provided in Section 2.2(d)(iii), no adjustment
of the Antidilution Price shall be made upon the actual issuance of such
Membership Interests upon conversion or exchange of such Convertible Securities
and (2) if any such

 8
 

issuance or sale of such Convertible Securities is
made upon exercise of any Options to purchase any such Convertible Securities,
no further adjustment of the Antidilution Price shall be made by reason of such
issuance or sale.

(iii)          Change
in Option Price or Conversion Rate; Termination of Options or Convertible
Securities  If a change occurs in
(A) the maximum number of units of Membership Interest issuable in
connection with any Option referred to in Section 2.2(d)(i) or any
Convertible Securities referred to in Section 2.2(d)(i) or (ii),
(B) the purchase price provided for in any Option referred to in Section
2.2(d)(i), (C) the additional consideration, if any, payable upon the
conversion or exchange of any Convertible Securities referred to in Section
2.2(d)(i) or (ii), or (D) the rate at which Convertible Securities
referred to in Section 2.2(d)(i) or (ii) are convertible into or
exchangeable for units of Membership Interest, (in each case, other than in
connection with an event described in Section 2.2(a)),then the
Antidilution Price in effect at the time of such event shall be readjusted to
the Antidilution Price that would have been in effect at such time had such Options
or Convertible Securities that remain outstanding provided for such changed
maximum number of membership interests, purchase price, additional
consideration or conversion rate, as the case may be, at the time initially
granted, issued or sold.  Upon the termination of any
such Option or any such right to convert or exchange such Convertible
Securities, the Antidilution Price then in effect hereunder shall be increased
to the Antidilution Price that would have been in effect at the time of such
termination had such Option or Convertible Securities, to the extent
outstanding immediately prior to such termination (i.e., to the extent that
fewer than the number of units of Membership Interests deemed to have been
issued in connection with such Option or Convertible Securities were actually
issued), never been issued or been issued at such higher price, as the case may
be.

(iv)          Consideration
for Membership Interests  In case any
units of Membership Interest are issued or sold, or deemed issued or sold for
cash, the consideration received therefor shall be deemed to be the amount
received or to be received by the Company therefor (determined with respect to
deemed issuances and sales in connection with Options and Convertible
Securities in accordance with clause (A) of Section 2.2(d)(i) or Section 2.2(d)(ii),
as appropriate) determined in the manner set forth below in this Section
2.2(d)(iv).  If any units of
Membership Interest are issued or sold, or deemed issued or sold, for a
consideration other than cash, the amount of the consideration other than cash
received by the Company shall be deemed to be the fair value of such
consideration received or to be received by the Company (determined with
respect to deemed issuances and sales in connection with Options and
Convertible Securities in accordance with clause (A) of Section
2.2(d)(i) or Section 2.2(d)(ii), as appropriate) as determined
in good faith by EquityCo, L.L.C., a Nevada limited liability company, as the
sole member of the Company (the “ Member”) and Holders holding Warrants
representing in excess of 50% of the Warrant Interests issuable upon exercise
of all outstanding Warrants (a “Required Interest”).  If any Options are issued in connection with
the issuance and sale of other securities of the Company, together comprising
one integral transaction in which no specific consideration is allocated to
such Options by the parties thereto, such Options shall be deemed to have been
issued for such consideration as determined in good faith by the Member and a Required
Interest;  provided, that if the Member
and a Required Interest are unable to reach agreement as to the value of such
consideration, then the value thereof will be determined by an Appraiser as
provided in Section 6.1.

 9
 

(v)           Indeterminable
Amounts  In calculating any
adjustment to the Antidilution Price pursuant to this Section 2.2(d),
any Options or Convertible Securities that provide, as of the effective date of
such adjustment, for the issuance upon exercise or conversion thereof of an
indeterminable number of units of Membership Interest shall (together with the
units of Membership Interest issuable upon exercise or conversion thereof) be
disregarded for purposes of the calculation of Membership Interests Deemed
Outstanding; provided, that at such time as a number of units of
Membership Interest issuable upon exercise or conversion of such Options or
Convertible Securities becomes determinable, then the Antidilution Price shall
be adjusted as provided in Section 2.2(d)(iii).

(vi)          Certain
Issues of Membership Interests Excepted 
Notwithstanding anything herein to the contrary, no adjustment to the
number of Warrant Interests or the Antidilution Price shall be made in the case
of an issuance from and after the date hereof of  (i) issuances, grants or sales of Membership
Interests (or Options or Convertible Securities for Membership Interests) to
employees of the Company and its Subsidiaries (other than employees that are
affiliated with BH/RE) in an aggregate amount not to exceed 6,000 Class B Units
(subject to adjustments pursuant to Sections 2.2(a), 2.2 (b) and 2.2(c))
(the “Management Pool”), (ii) units of Membership Interest upon exercise
of the Warrants, and (iii) units of Membership Interest (or Options or
Convertible Securities for Membership Interests) acquired by the Holder hereof
through the exercise of the Holder’s pre-emptive rights pursuant to Section
4.1 of the Investor Rights Agreement.

(vii)         Membership
Interests Deemed Outstanding.  For
purposes of this Section 2.2(d), the term “Membership Interests Deemed
Outstanding” shall mean, at any time, the sum of (A) the number of units of
Membership Interest outstanding immediately prior to the Relevant Date
(including for this purpose all Membership Interest issuable upon exercise or
conversion of any Options or Convertible Securities outstanding immediately
prior to the Relevant Date), plus (B) the number of units of Membership
Interest issued or sold (or deemed issued or sold) after the Relevant Date, the
issuance or sale of which resulted in an adjustment to the Antidilution Price
pursuant to Section 2.2(d)(iii), plus (C) the number of units of Membership
Interest deemed issued or sold pursuant to Section 2.2(d)(v) above; provided,
that Membership Interests Deemed Outstanding shall not include the Warrant
Interests or any units of Membership Interest issuable upon exercise of the
Warrant Interests.

(e)             Adjustment for Merger,
Consolidation, Liquidation etc  Upon
any merger or consolidation of the Company with or into another limited
liability company (or other legal entity), or any sale of all or substantially
all of the assets of the Company to another limited liability company (or other
legal entity), subject to the Gaming Laws and any requirements or restrictions
imposed by the Commission, this Warrant shall automatically convert into the
right to receive the kind and amount of membership interests or other
securities or property to which a Holder of the number of units of Membership
Interest of the Company deliverable upon the exercise of this Warrant in full
would have been entitled upon such merger, consolidation, or asset sale (and
any distribution of assets to members of the Company following such asset
sale).  The Company shall use reasonable
best efforts to structure and consummate any merger, consolidation or such
sale, to permit the Holder to participate in such transaction on an as
exercised basis. Notwithstanding anything to the contrary contained herein but
subject

 10
 

to the Gaming Laws and any requirements or restrictions imposed by the Commission,
each Holder shall have the right to exercise the Warrant immediately prior to
or simultaneously with the consummation of such merger, consolidation, or asset
sale in accordance with the provisions of Section 1.

(ii)           The Company shall not effect any such
consolidation, merger or sale, unless prior to or simultaneously with the
consummation thereof the successor (if other than the Company) resulting from
such consolidation or merger or the person purchasing such assets shall assume
by written instrument executed and delivered to the Holder, the obligation to
deliver to the Holder such membership interests, securities or assets as, in
accordance with the foregoing provisions, the Holder may be entitled to receive
upon the automatic conversion, or exercise, of this Warrant, as applicable.

(iii)          Subject to the Gaming Laws and any
requirements or restrictions imposed by the Commission, upon any liquidation,
dissolution or winding up of the Company, the Holder shall receive such cash or
property (less the Exercise Price) which the Holder would have been entitled to
receive upon the happening of such liquidation, dissolution or winding up had
the Warrants been exercised and the Warrant Interests issued immediately prior
to the occurrence of such liquidation, dissolution or winding up, and, upon the
Holder’s receipt of such cash or property, the Warrants shall terminate.

(f)             Additional
Warrants Upon Certain Events; Other Adjustments.  The number of Warrant Interests issuable upon
exercise or conversion hereof shall be increased as set forth below upon the
occurrence of the following events:

(i)            [reserved]

(ii)           [reserved]

(iii)          [reserved]

(iv)          Upon the incurrence of Indebtedness
other than Permitted Indebtedness or Indebtedness incurred in a refinancing of
the outstanding principal amount of Permitted Indebtedness (together with any
accrued interest, premiums and any reasonable fees and expenses incurred
therewith) (such amount, the “Debt Threshold”), the number of Warrant
Interests issuable upon exercise or conversion hereof shall be increased by the
number of units of Membership Interests as is necessary to provide the Holder
with an additional 0.0172% interest in the fully-diluted equity of the Company
as of the Closing Date for each $5,000,000 of Indebtedness in excess of the
Debt Threshold (applied proportionally from the first dollar in excess of the
Debt Threshold), subject to dilution from the Management Pool.  Adjustments under this Section 2.2(f)(iv)
shall be made from time to time as the Company incurs Indebtedness in excess of
the Debt Threshold; provided, that adjustment under this Section 2.2(f)(iv)
shall be made only once for each dollar of Indebtedness in excess of the Debt
Threshold.  For clarity, no adjustment
hereunder shall be made in connection with the closing of the CMBS Facility or
the incurrence of any third-party refinancing of Indebtedness

 11
 

including any
accrued interest, premiums and any reasonable fees and expenses incurred as a
result of such third-party refinancing);

(v)           Upon contribution of the Additional
Capital Amount (as defined in Section 7.1 of the Investor Rights
Agreement) to the equity of the Company or any of its Subsidiaries, the number
of Warrant Interests issuable upon exercise or conversion hereof shall be
increased by the number of units of Membership Interests as is necessary to
maintain at least the same percentage interest in the Company and, indirectly,
in its Subsidiaries, that this Warrant represented immediately prior to such
issuance (including, for purposes of this clause (v), any interest acquired by
the Holder of this Warrant in connection with the contribution of the
Additional Capital Amount through the exercise of the Holder’s pre-emptive
rights pursuant to Section 4.1 of the Investor Rights Agreement);  provided, that no adjustment under this
section shall be made with respect to the closing of the CMBS Facility or with
respect to any proceeds received by the Company or its Subsidiaries from the
issuance of the Indebtedness to refinance other Indebtedness (including any
accrued interest, premiums and any reasonable fees and expenses incurred as a
result of such third-party refinancing); and

(vi)          Upon the issuance of any units of
Membership Interests of the Company to any guarantor of Indebtedness for the
reasons specified in Section 7.11 (CMBS Guarantees;
Reimbursement) of the Investor Rights Agreement, the number of
Warrant Interests issuable upon exercise or conversion hereof shall be
increased by the number of units of Membership Interests as is necessary to
maintain at least the same percentage interest in the Company and, indirectly,
in its Subsidiaries, that this Warrant represented immediately prior to such
issuance of units of Membership Interests (including, for purposes of this
clause (vi), any interest acquired by the Holder of this Warrant in connection
with such issuance of units of Membership Interests through the exercise of the
Holder’s pre-emptive rights pursuant to Section 4.1 of the Investor
Rights Agreement).

(vii)         Upon the issuance of any units of
Membership Interests of the Company to any Person making all or a portion of
the Minimum Capital Contribution for the reasons specified in Section 8.4
(Limitations on Incurrence of Indebtedness and
Issuance of Interest) of the Investor Rights Agreement , the number
of Warrant Interests issuable upon exercise or conversion hereof shall be
increased by the number of units of Membership Interests as is necessary to
maintain at least the same percentage interest in the Company and, indirectly,
in its Subsidiaries, that this Warrant represented immediately prior to such
issuance of units of Membership Interests (including, for purposes of this
clause (vii), any interest acquired by the Holder of this Warrant in connection
with such issuance of units of Membership Interests through the exercise of the
Holder’s pre-emptive rights pursuant to Section 4.1 of the Investor
Rights Agreement).

(viii)        In the event of any breach by the
Company or any of its Subsidiaries of any of the terms of the Restructuring
Documents (including a breach that results from a failure to disclose the
existence of any “Default” or “Event of Default” (each as defined in the
Purchase Agreement) under the Purchase Agreement as of the

 12
 

date of the
Restructuring Agreement) that remains uncured for a period of twenty (20) days
after written notice of such breach is provided to the Company, and for each
such twenty-day period thereafter that such breach remains uncured, the number
of Warrant Interests issuable upon exercise or conversion hereof shall be
increased by the number of units of Membership Interests as is necessary to
provide the Holder with an additional 0.0172% interest in the fully-diluted
equity of the Company; provided, however, that in no event shall
adjustments made pursuant to this clause (viii) result in an aggregate increase
of more than an additional 3.44% interest in the fully-diluted equity of the
Company.  Adjustments under this Section
2.2(f)(viii) shall be made from time to time for each twenty-day period
such breach by the Company remains uncured.

  Any adjustment
made pursuant to clauses (iv), (v), (vi) or (vii) of this Section 2.2(f)
shall be the exclusive adjustment made to the number of Warrant Interests in
connection with the contribution or issuance giving rise to such
adjustment.  Upon any adjustment pursuant
to this Section 2.2(f), a corresponding reduction shall be made to the
Antidilution Price.

(g)           Record Date  If the Company takes a record of the Holders
of its Membership Interests for the purpose of entitling them (A) to receive a
dividend or other distribution payable in Membership Interests, Options or
Convertible Securities, or (B) to subscribe for or purchase Membership
Interests, Options or Convertible Securities, then such record date shall be
deemed to be the date of the issuance or sale of the Membership Interests
deemed to have been issued or sold upon the declaration of such dividend or the
making of such other distribution or the date of the granting of such right of
subscription or purchase, as the case may be.

(h)           Other Dilutive
Events.  In case any event shall
occur as to which, but for this Section 2.2(h), the provisions of this Section
2 are not directly applicable, and the failure to make any adjustment would
not in the opinion of the Holder fairly protect the purchase rights represented
by this Warrant in accordance with the essential intent and principles of such
sections, then, in each case, at the request of the Required Interest, the
Company shall appoint an Appraiser, which shall give its opinion upon the
adjustment, if any, on the basis consistent with the essential intent and
principles established in this Section 2, necessary to preserve, without
dilution, the purchase rights by this Warrant. 
Upon receipt of such Appraiser’s opinion, which shall be applicable to
all Holders, the Company shall promptly mail a copy thereof to the Holders and
shall make the adjustments described therein, if any.

Section 3.  Redemption and Cancellation of Warrants

3.1.         Put
Right.

(a)           In the event that
the Company has not consummated a Liquidity Event on or before December 9,
2011, the Holder may demand at any time from such date until the Expiration
Date (the “Put Period”) that the Company purchase (or cause to be
purchased) this Warrant and any Warrant Interests held by the Holder (the “Put
Securities”) for the Redemption Price by delivery of a written notice to
the Company (the date such notice is delivered to the Company shall hereinafter
be referred to as the “Put Demand Date”); provided, that prior to the

 13
 

commencement of the Put Period, the Company may elect, by delivering
prior written notice to the Holder no later than 180 days prior to the
commencement of the Put Period, to extend the commencement of the Put Period
and the Expiration Date to September 9, 2012. 
Within ten Business Days of the Put Demand Date, the Company shall
deliver a notice to the Holder identifying the Redemption Price and providing
the calculations thereof.  The Company
shall pay the Redemption Price to such Holder as soon as reasonably practicable
(the “Put Payment Date”), but in no event later than 180 days after the
Put Demand Date (the “Put Demand Period”), upon surrender of this
Warrant, together with any certificates evidencing any other Put Securities, to
the Company, at its Office, or, if requested by such Holder without surrender
of this Warrant or such other certificates, by wire transfer of immediately
available funds to an account or accounts designated in writing by the Holder; provided,
however, that the foregoing obligations of the Company, and the time
periods in which they must be performed, shall be subject to the Gaming Laws
and any requirements or restrictions imposed by the Commission.  The right of the Holder to demand that the
Company purchase the Put Securities is referred to as the Holder’s “Put
Right”.

(b)           Upon surrender of
this Warrant in accordance with Section 3.1(a) for payment of the
Redemption Price, the right to purchase Warrant Interests represented by this
Warrant shall terminate, and this Warrant shall represent the right of the
Holder to receive only the applicable Redemption Price from the Company in
accordance with Section 3.1.

(c)           Automatic
Conversion into Debt  In the event
that the Company fails to purchase this Warrant prior to the expiration of the
Put Demand Period after using its best efforts to do so, then all obligations
of the Company to pay the Redemption Price pursuant to Section 3.1(a)
shall, subject to the Gaming Laws and any requirements or restrictions imposed
by the Commission, convert automatically without any further action or
acknowledgment on the part of the Company or the Holder, into secured
indebtedness of the Company in the aggregate principal amount of the Redemption
Price, secured by the pledge granted to the Collateral Agent under the Pledge
Agreement (the “Put Note”).  The
Put Note shall evidence an obligation of the Company to pay to such Holder, on
a date no later than the first anniversary of the Put Demand Date, an amount
equal to the Redemption Price, together with accrued and unpaid interest (based
on a 360-day year of 30-day months) at a rate per annum on the unpaid principal
amount thereof equal to the Default Rate, or such lower rate as then may be the
maximum rate permitted by applicable law, and interest thereon shall be payable
in cash semi-annually in six-month intervals starting on the day that is
six-months after the date the obligations of the Company to pay the Redemption
Price are converted into the Put Note, or if the Company so elects at any time
and from time to time in its sole discretion more frequently than semi-annually
upon written notice to the Holder, to be capitalized and added to the unpaid
principal amount of the Put Note semi-annually on each such interest payment
date, until such Put Note is paid in full. 
The rate of interest payable on the Put Note shall increase by one
percent (1.00%) as of the last day of each fiscal quarter commencing with the
fiscal quarter following the fiscal quarter in which the Put Demand Date occurs
until the Put Note is paid in full. 
Nothing in this Section 3.1(c) shall require the Company to pay
interest at a rate in excess of the maximum rate permitted by applicable
law.  The Put Note may be prepaid by the
Company at any time in whole or in part without premium or penalty.  The entire principal amount of the Put Note
and any interest accrued thereon shall become immediately due and payable (A)
upon the consummation of a Liquidity Event or (B) in the event (i) the Company
agrees, submits or consents to any voluntary

 14
 

or involuntary dissolution, liquidation or winding-up of the Company or
any Subsidiary; (ii) a decree or order is entered appointing any trustee,
custodian, liquidator or receiver or adjudicating the Company or any Subsidiary
bankrupt or insolvent, or approving a petition in any such case or other
proceeding; or (iii) a decree or order for relief is entered in respect of the
Company or any Subsidiary in an involuntary case under federal bankruptcy laws
as now or hereafter constituted (each, an “Insolvency Event”). All
payments of principal and cash interest on the Put Note shall be made by wire
transfer of immediately available funds to an account or accounts designated in
writing by the Holder.  The Holder
further acknowledges and agrees that, without prejudice to any of Holder’s
rights to receive the Redemption Price, and/or any payments of principal or
interest under the Put Note when due, its rights to receive such Redemption
Price, and/or payments of principal or interest under the Put Note, shall be subject
to applicable Gaming Laws and any applicable requirements or restrictions
imposed by the Commission.

3.2.         Redemption upon Replacement of
Securityholder.  If a Holder is required to dispose of its
Warrant, Warrant Interests and/or Put Notes pursuant to Section 3.8 (Replacement of Unsuitable Securityholder)
of the Investor Rights Agreement, the Warrant, Warrant Interests and/or Put
Notes held by such Holder shall be purchased or redeemed (as applicable) at a
price equal to the Redemption Price, in accordance with Section 3.8 (Replacement of Unsuitable Securityholder)
of the Investor Rights Agreement.

Section 4.  Covenants of the Company

4.1.         The Company covenants and agrees
that:

(a)           all Warrant
Interests that may be issued upon the exercise of the rights represented by
this Warrant shall, upon issuance and payment of the Exercise Price, be duly
authorized and validly issued and free from preemptive rights and all transfer
taxes, liens, charges and security interests with respect to the issuance
thereof;

(b)           during the period
within which this Warrant may be exercised, it will at all times have
authorized and reserved, without limitation, out of the aggregate of its
authorized but unissued units of Membership Interests, a sufficient number of
Warrant Interests to provide for the exercise of rights represented by this
Warrant;

(c)           if any Warrant
Interests reserved or to be reserved to provide for the exercise of this
Warrant require registration with or approval of any governmental or
self-regulatory authority under any federal or state law or stock exchange or
NASDAQ rule before such membership interests may be validly issued, then it
shall in good faith and as expeditiously as possible endeavor to secure such
registration or approval, as the case may be;

(d)           before taking any
action that would cause an adjustment pursuant to Section 2, the Company
will take any and all corporate action that may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue Warrant
Interests at the Exercise Price.

(e)           if it shall have
filed a registration statement pursuant to the requirements of Section 12 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or
a

 15
 

registration statement pursuant to the requirements of the Securities
Act of 1933, as amended (the “Securities Act”), the Company shall comply
with the reporting requirements of Sections 13 and 15(d) of the Exchange Act
and will comply with all other applicable public information reporting
requirements of the Securities and Exchange Commission from time to time in
effect and relating to the availability of an exemption from the Securities Act
for the sale of any restricted securities, including Rule 144 and Rule 144A
promulgated by such commission under the Securities Act; and

(f)            it shall not, by
amendment to its articles of organization (whether by way of merger, operation
of law, or otherwise) or through reorganization, transfer of assets,
consolidation, merger, dissolution, issuance or sale of securities, agreement
or any other voluntary action (including any of the foregoing that constitutes
a Liquidity Event), avoid or seek to avoid the observance or performance of any
of the terms to be observed or performed hereunder by the Company and shall at
all times in good faith assist in the carrying out of all the provisions of
this Warrant and in the taking of all such action as may be reasonably
necessary in order to protect the rights of the Holders against
impairment.  Nothing in this clause will
restrict the Company from taking any action required by any Gaming Authority.

Section 5.  Restrictions on Transfer

5.1.         Restrictive Legend.

(a)           The Warrant
Interests issuable upon exercise hereof, are subject to certain restrictions on
transfer as set forth in the Amended and Restated Investor Rights Agreement
dated as of  November 30,  2006, by and among the Company and the
parties thereto (as the same may be amended from time to time, the “Investor
Rights Agreement”) and may be subject to redemption as provided in the Company’s
Articles of Organization and Operating Agreement.  Each certificate representing Warrant
Interests issued upon exercise of this Warrant and each certificate issued to
any subsequent transferee of any such certificate, shall be stamped or
otherwise imprinted with a legend in substantially the form as follows:

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES OR BLUE SKY
LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE
ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH
SECURITIES WHICH IS EFFECTIVE UNDER THE SECURITIES ACT OR TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF
SECURITIES, (2) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES AND BLUE SKY
LAWS, AND (3) IN ACCORDANCE WITH APPLICABLE STATE GAMING LAWS AND REQUIREMENTS
AND RESTRICTIONS IMPOSED BY THE NEVADA GAMING COMMISSION

 

 16

THE MEMBERSHIP INTERESTS ISSUABLE UPON EXERCISE OF THIS WARRANT ARE SUBJECT TO THE
PROVISIONS OF A CERTAIN AMENDED AND RESTATED INVESTOR RIGHTS AGREEMENT, DATED
AS OF NOVEMBER 30, 2006, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER SET FORTH
THEREIN.  A COMPLETE AND CORRECT COPY OF
SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE
COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

WHEN THE LIMITED
LIABILITY COMPANY ISSUING THE OWNERSHIP INTEREST REPRESENTED BY THIS CERTIFICATE
HAS BEEN LICENSED BY OR REGISTERED WITH THE NEVADA GAMING COMMISSION, THE
PURPORTED SALE, ASSIGNMENT, TRANSFER, PLEDGE, GRANTING OF ANY OPTION TO
PURCHASE OR OTHER DISPOSITION OF SUCH INTEREST SHALL BE INEFFECTIVE UNLESS
APPROVED IN ADVANCE BY THE COMMISSION. 
IF AT ANY TIME THE COMMISSION FINDS THAT A MEMBER IS UNSUITABLE TO HOLD
SUCH INTEREST, THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
WARRANT SHALL BE SUBJECT TO REDEMPTION AND/OR REPURCHASE, PURSUANT TO THE TERMS
SET FORTH HEREIN.  BEGINNING ON THE DATE
WHEN THE COMMISSION SERVES NOTICE OR A DETERMINATION OF UNSUITABILITY PURSUANT
TO APPLICABLE LAW UPON THE COMPANY, IT SHALL BE UNLAWFUL FOR THE UNSUITABLE
MEMBER (A) TO RECEIVE ANY DIVIDEND OR INTEREST OR ANY PAYMENT OR DISTRIBUTION
OF ANY KIND, INCLUDING OF ANY SHARE OF THE DISTRIBUTION OF PROFITS OR CASH OR
ANY OTHER PROPERTY, OR PAYMENTS UPON DISSOLUTION, FROM THE COMPANY, OTHER THAN
A RETURN OF CAPITAL AS REQUIRED ABOVE; (B) TO EXERCISE DIRECTLY OR THROUGH ANY
PROXY, TRUSTEE OR NOMINEE ANY VOTING RIGHT CONFERRED BY THE MEMBER’S INTEREST
IN THE COMPANY; (C) TO PARTICIPATE IN THE MANAGEMENT OF THE COMPANY; OR (D) TO
RECEIVE ANY REMUNERATION (OTHER THAN THE REDEMPTION PRICE) IN ANY FORM FROM THE
COMPANY OR FROM ANY COMPANY HOLDING A GAMING LICENSE FOR SERVICES RENDERED OR
OTHERWISE.

(b)           In
furtherance of the foregoing, if at any time any securities other than
Membership Interests shall be issuable upon the exercise of this Warrant, such
securities shall bear a legend similar to the ones set forth above.  Whenever the legend requirement imposed by
the Investor Rights Agreement shall terminate, upon exercise of the Warrant,
the Holder shall be entitled to receive within five Business Days from the
Company, at the Company’s expense, a new certificate or certificates
representing Warrant Interests issued upon exercise of this Warrant, in each
case, without such legends.

5.2.         Restriction
on Transfer.

 17
 

(a)           General
Restrictions.  The Holder shall not
directly or indirectly sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant any option to purchase or otherwise
transfer or dispose of (other than to donees who agree to be similarly bound)
this Warrant unless such Holder’s transferee has agreed in writing to be bound
by the terms of this Warrant (including Section 1.6 hereof) and in
accordance with Section 6.15 hereof.

(b)           Transfers
to Competitors.  Absent a breach of
the terms of the Restructuring Documents that remains uncured for a period of
20 days from the delivery of written notice to the Company, no Holder shall
directly or indirectly sell, offer to sell, contract to sell (including,
without limitation, any short sale), grant any option to purchase or otherwise
transfer or dispose of (other than to donees who agree to be similarly bound)
this Warrant (or any securities into which such Warrant is convertible or
exchangeable) to any Person that is a Competitor of the Company.

(c)           Qualified
Public Offering Restrictions.  The
Holder shall not directly or indirectly sell, offer to sell, contract to sell
(including, without limitation, any short sale), grant any option to purchase
or otherwise transfer or dispose of (other than to donees who agree to be
similarly bound) this Warrant (or any securities into which such Warrant is
convertible or exchangeable) or any other securities of the issuer of the
securities in the Qualified Public Offering during any “blackout period”
required by any underwriter in connection with a Qualified Public Offering,
which “blackout period” shall in no event exceed the earlier of (i) 180 days
from the date securities are first sold in the Qualified Public Offering, and
(ii) the date any holder of 1% or more of the voting common equity securities
of the Company, that is subject to such “blackout period”, is released from
such restriction.  In order to enforce
the foregoing covenant, the issuer in such Qualified Public Offering may impose
stop-transfer instructions with respect to the securities of each Holder (and
the shares or securities of every other person subject to the foregoing
restriction) until the end of such “blackout period.”

(d)           Gaming
Restriction.  No Holder shall be
permitted to transfer this Warrant (or any securities into which such Warrant
is convertible or exchangeable) except in accordance with all applicable Gaming
Laws and any requirements or restrictions imposed by the Commission.

Section
6.  Miscellaneous

6.1.         Notice
of Adjustments; Appraisal.

(a)           In
each case of any adjustment or readjustment in the number of Warrant Interests
issuable upon exercise of this Warrant, the Company shall promptly thereafter
compute such adjustment or readjustment in accordance with the terms of this
Warrant and provide a written report thereof certified by the Member, the Chief
Financial Officer of the Company or the Chief Executive Officer to the Holder
stating the number of Warrant Interests and the Antidilution Price, after
giving effect to such adjustment or readjustment, and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based (each, an “Adjustment Notice”).

 18
 

(b)           Within
25 days of receipt of an Adjustment Notice, the Holder or Holders representing
a Required Interest shall have the right to cause the Company to appoint an
Appraiser to verify such computations reported pursuant to Section 2, Section
3 or Section 6.1(a), including, without limitation, any
determination made by the Member.  Such
Holder or Holders shall exercise its or their right pursuant to this Section
6.1(b) by delivering a written request (each, an “Appraisal Notice”)
to the Company.  Each such dispute shall
be resolved as set forth below.

(c)           The
Company shall within 30 days after an Appraisal Notice has been given, engage
an Appraiser to make an independent determination of the Current Market Price
and the other disputed calculations or amounts (such determination, the “Appraiser’s
Determination”).  The Appraiser’s
Determination shall be final and binding on the Company and each holder of the
Warrants.  The costs of conducting any
appraisal shall be borne entirely by the Company; provided, that in the
event that the Company’s computation of the adjustment or readjustment
contained in the applicable Adjustment Notice and the Appraiser’s Determination
differ by not more than 10%, the cost and expense of the Appraiser shall be
borne by the Holder.

(d)           The
Company shall also keep copies of all such reports generated pursuant to this Section
6.1 at its Office and will cause the same to be available for inspection at
such Office during normal business hours by the Holder any prospective
purchaser of this Warrant designated by the Holder.

6.2.         Notice of Certain Events 
In case at
any time:

(a)           the
Company shall pay any dividend upon, or make any distribution in respect of,
its membership interests of the Company;

(b)           the
Company shall propose to register any of its equity securities under the
Securities Act in connection with a public offering;

(c)           there
shall be any proposed Liquidity Event, Insolvency Event, capital
reorganization, or reclassification of the membership interests of the Company,
or consolidation or merger of the Company with, or sale of all or substantially
all of its assets to, another person; or

(d)           there
shall be a voluntary or involuntary dissolution, liquidation or winding up of
the Company;

then, in any one or more of said cases, the Company
shall give notice to the Holder of the date on which (i) the books of the
Company shall close or a record shall be taken for such dividend, distribution
or subscription rights, or (ii) such Liquidity Event, Insolvency Event, public
offering, reorganization, reclassification, consolidation, merger, sale,
dissolution, liquidation or winding up shall take place, as the case may be,
all of which shall be, in each case, in compliance with the provision of Section
2.2(g).  Such notice shall be given
not less than 10 days prior to the record date or the date on which the
transfer books of the Company are to be closed in respect thereto in the case
of an action specified in clause (i) of the preceding sentence and, to the
extent such disclosure (x) is not  prohibited by
Applicable Laws or (y) would not require the Company or any

 19
 

Affiliate to make a public announcement of such event,
at least 20 days prior to the action in question, in the case of an action
specified in clause (ii) of the preceding sentence.

6.3.         Notice  Any notice
that is required or provided to be given under this Warrant shall be deemed to
have been sufficiently given and received for all purposes when delivered in
writing by hand, telecopy, telex or other method of facsimile, or five days
after being sent by certified or registered mail, postage and charges prepaid,
return receipt requested, or two days after being sent by overnight delivery providing
receipt of delivery, to the following addresses:  if to the Company: MezzCo, L.L.C, c/o OpBiz,
L.L.C., 3667 Las Vegas Boulevard South, Las Vegas, Nevada 89109 Attn: Joshua
Revitz, c/o Debbie Faint Facsimile No.: (702) 785-5080 or at any other address
designated by the Company to Holder, with a copy to Greenberg Traurig LLP, 200
Park Avenue, New York, New York 10166 Attn: 
Joseph Kishel, Esq., Facsimile No.: (212) 805-9203; if to Holder, Post
Total Return Fund, L.P., 11755 Wilshire Boulevard, Suite 1400, Los Angeles, CA
90025, or at any other address designated by Holder to the Company in writing.

6.4.         No Change in Warrant Terms on Adjustment 
Irrespective of any adjustment in the Antidilution Price or the number
of Warrant Interests, this Warrant, whether theretofore or thereafter issued or
reissued, may continue to express the same price and number of Membership
Interests as are stated herein and the Antidilution Price and such number of
Membership Interests specified herein shall be deemed to have been so adjusted.

6.5.         Issuance and Transfer Taxes 
The Company covenants and agrees that it will pay when due and payable
all documentary, stamp and other similar taxes, if any, that may be payable in
respect of the issuance or delivery of the Warrants or of the Warrant Interests
purchasable and issuable upon the exercise of the Warrants; provided, however,
that the Company shall not be required to pay any such tax or other charge
imposed in respect of the transfer of Warrants, or the issuance or delivery of
certificates for Warrant Interests or other securities in respect of the
Warrant Interests upon the exercise of Warrants, to a person or entity other
than a then-existing registered holder of Warrants or other securities issued
by the Company.

6.6.         Exchange of Warrant 
This Warrant is exchangeable at no cost to the Holder upon the surrender
hereof by Holder at the Company’s office, for a new warrant of like tenor
representing in the aggregate the right to subscribe for and purchase the type
and number of Warrant Interests that may be subscribed for and purchased
hereunder from time to time after giving effect to all the provisions hereof,
each of such new warrants to represent the right to subscribe for and purchase
such number of Warrant Interests as shall be designated by said Holder hereof
at the time of such surrender.

6.7.         Lost, Stolen, Mutilated or Destroyed Warrant 
If this Warrant is lost, stolen, mutilated or destroyed, the Company
shall at no cost to the Holder, on such terms as to indemnity or otherwise as
it may in its discretion impose (which shall, in the case of a mutilated
Warrant, include the surrender thereof), issue a new warrant of like
denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.  Any such new warrant shall constitute an
original contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable
by anyone.

 20
 

6.8.         Governing Law 
This Warrant shall be deemed to be a contract made under, and shall be
construed in accordance with, the laws of the State of New York, without giving
effect to conflict of laws principles thereof. 
Notwithstanding the foregoing, matters of law in this Warrant that are
related to gaming in Nevada shall be governed by the Gaming Laws in their
current form and as they may hereafter be amended from time to time.

6.9.         Section Headings; Construction 
The descriptive headings in this Warrant have been inserted for
convenience only and shall not be deemed to limit or otherwise affect the
construction of any provision thereof or hereof.  The parties have participated jointly in the
negotiation and drafting of this Warrant and the other agreements, documents
and instruments executed and delivered in connection herewith with counsel
sophisticated in investment transactions. 
In the event an ambiguity or question of intent or interpretation
arises, this Warrant shall be construed as if drafted jointly by the parties
and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provisions of this Warrant and the
agreements, documents and instruments executed and delivered in connection
herewith.

6.10.       Dispute Resolution.

(a)           Except as provided in Section 6.1,
all disputes, claims, or controversies arising out of or relating to this
Warrant or the negotiation, breach, termination, validity or performance hereof
that are not resolved by mutual agreement shall be resolved solely and
exclusively by binding arbitration to be conducted before J.A.M.S./Endispute,
Inc. or its successor.  The arbitration
shall be held in Las Vegas, Nevada before a single arbitrator and shall be
conducted in accordance with the rules and regulations promulgated by
J.A.M.S./Endispute, Inc. unless specifically modified herein.

(b)           The
parties covenant and agree that the arbitration hearing shall commence within
twenty (20) days of the date on which a written demand for arbitration is filed
by any party hereto.  In connection with
the arbitration proceeding, the arbitrator shall have the power to order the
production of documents by each party and any third-party witnesses.  In addition, each party may take up to three
(3) depositions as of right, and the arbitrator may in his or her discretion
allow additional depositions upon good cause shown by the moving party.  However, the arbitrator shall not have the
power to order the answering of interrogatories or the response to requests for
admission.  In connection with any
arbitration, each party shall provide to the other, no later than ten (10)
business days before the date of the arbitration, the identity of all Persons
that may testify at the arbitration and a copy of all documents that may be
introduced at the arbitration or considered or used by a party’s witness or
expert, and a summary of the expert’s opinions and the basis for said
opinions.  The arbitrator’s decision and
award shall be made and delivered within ten (10) days of the conclusion of the
arbitration.  The arbitrator’s decision
shall set forth a reasoned basis for any award of damages or finding of
liability.  The arbitrator shall not
award punitive damages or any other damages that are specifically excluded
under this Warrant, and each party hereby irrevocably waives any claim to such
damages

 21
 

(c)           The
parties covenant and agree that they will participate in the arbitration in
good faith and, except as set forth below, shall (i) bear their own attorneys’
fees costs and expenses in connection with the arbitration, and (ii) share
equally in the fees and expenses charged by J.A.M.S./Endispute, Inc.  The arbitrator may in his or her discretion
assess costs and expenses (including the reasonable legal fees and expenses of
the prevailing party) against any party to a proceeding.  Any party unsuccessfully refusing to comply
with an order of the arbitrators shall be liable for costs and expenses,
including attorneys’ fees, incurred by the other party in enforcing the
award.  This agreement applies equally to
requests for temporary, preliminary or permanent injunctive relief, except that
in the case of temporary or preliminary injunctive relief any party may proceed
in court without prior arbitration for the limited purpose of avoiding
immediate and irreparable harm.  The
dispute resolution provisions of this Section 6.10 shall be enforceable in any
court of competent jurisdiction.

6.11.       Consent to Jurisdiction 
Each of the parties hereto irrevocably and unconditionally consents to
the exclusive jurisdiction of J.A.M.S./Endispute, Inc. to resolve all disputes,
claims or controversies arising out of or relating to this Warrant or the
negotiation, breach, termination, validity or performance hereof and or and
further consents to the jurisdiction of the courts of the State of California
for the purposes of enforcing the arbitration provisions of this
Agreement.  Each party further
irrevocably waives any objection to proceeding before J.A.M.S./Endispute, Inc.
based upon lack of personal jurisdiction or to improper venue and further
irrevocably and unconditionally waives and agrees not to make a claim in any
court that arbitration before J.A.M.S./Endispute, Inc. has been brought in an
inconvenient forum.  Each of the parties
hereto hereby consents to service of process by registered mail at the address
to which notices are to be given.  Each
of the parties hereto agrees that its or his submission to jurisdiction and its
or his consent to service of process by mail are made for the express benefit
of the other parties hereto.

6.12.       Remedies; Severability 
Notwithstanding Sections 6.10 and 6.11, it is specifically
understood and agreed that any breach of the provisions of this Warrant by any
person subject hereto will result in irreparable injury to the other parties
hereto, that the remedy at law alone will be an inadequate remedy for such
breach, and that, in addition to any other remedies which they may have, such
other parties may enforce their respective rights by actions for specific
performance (to the extent permitted by law). 
Whenever possible, each provision of this Warrant shall be interpreted
in such a manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be deemed prohibited or invalid under such
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, and such prohibition or invalidity shall not
invalidate the remainder of such provision or the other provisions of this
Warrant.

6.13.       Integration  This Warrant
and the Investor Rights Agreement, including the exhibits referred to herein
and therein, constitute the entire agreement and supersede all other prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof.

6.14.       No Rights or Liabilities as Member 
Nothing contained in this Warrant shall be construed as conferring upon
the Holder any rights as a member of the Company or as imposing any obligation
on the Holder to purchase any securities or as imposing any liabilities on the

 22
 

Holder as a member of the
Company, whether such obligation or liabilities are asserted by the Company or
creditors of the Company.

6.15.       Agreement to be Bound;
Covenants of the Investor Rights Agreement.

(a)           Agreement
to be Bound.  By Holder’s receipt and
acceptance of this Warrant, the Holder acknowledges and hereby agrees to be
bound by such terms and conditions of this Warrant and the Investor Rights
Agreement that are applicable to the Holder. 
Any and all Warrant Interests issued upon exercise hereof shall,
immediately upon such issuance, and without further action by or on behalf of
the Holder or the Company, become subject to such terms and conditions of the
Investor Rights Agreement, the Articles of Organization of the Company and the
Company’s Third Amended and Restated Operating Agreement, as are by their terms
applicable to such Warrant Interests, as well as Gaming Laws and any
requirements or restrictions imposed by the Commission.

(b)           Covenants
of the Investor Rights Agreement.  By
Holder’s receipt and acceptance of this Warrant, the Holder acknowledges and
hereby agrees that the Warrants and the Warrant Interests shall be entitled to
the benefits of certain covenants in the Investor Rights Agreement, as set
forth in Sections 7.1 (Additional Indebtedness),
7.2 (Restrictions on Equity Interests), 7.3 (Put Right), 7.4 (Communications with Gaming
Authorities), 7.5 (Tax Covenants),
7.6 (Books and Records), 7.7 (Financial and Other Information), 7.8 (Notices),
7.9 (Existence, Good Standing and Legal Requirements),
7.10 (Election of Directors; Observation Rights),
7.11 (CMBS Guarantees; Reimbursements), 7.12 (Costs, Expenses and Taxes), 7.13 (Indemnification), 8.1 (Transactions with Affiliates), 8.2 (Business
Conducted), 8.3 (Tax Classification)
and 8.4 (Limits on Incurrence of Indebtedness and Issuance
of Interests) of the Investor Rights Agreement.

(c)           Non-Disclosure.  By Holder’s receipt and acceptance of this
Warrant, the Holder acknowledges and hereby agrees that the Warrants, the
Warrant Interests and the Put Notes shall be subject, in all respects, to the
confidentiality obligations as set forth in Section 9.14 (Non-Disclosure) of the Investor Rights Agreement.

6.16.       Waivers and Consents;
Amendments.

(a)           For
the purposes of this Warrant and all documents executed pursuant hereto, no
course of dealing between or among any of the parties hereto and no delay on
the part of any party hereto in exercising any rights hereunder or thereunder
shall operate as a waiver of the rights hereof or thereof.  No covenant or provision hereof may be waived
otherwise than by a written instrument signed by the party or parties so
waiving such covenant or other provision contemplated herein.

(b)           No
amendment to this Warrant may be made without the written consent of the
Company and the Holders representing the Required Interest.

 23
 

(c)           Unless
otherwise specified herein, any actions required to be taken with respect to
consents, approvals or waivers required or contemplated to be given by the
Holder, shall require the vote of the Holder or Holders representing the
Required Interest and any such action shall bind all of the Holders; provided,
however that the consent of the Holder will be required to (i) reduce
the number of Warrant Interest into which this Warrant is exercisable (except
pursuant to the express antidilution provisions of Section 2), (ii)
increase the Exercise Price, (iii) modify the Holder’s right to transfer the
Warrant,  (iv) amend, modify or waive the
application of Section 2 (Adjustments to Exercise Price and Warrant
Interests), (v) amend, modify or waive application of Section 3.1 (Put
Right), (vi) approve any modification to or waiver from the terms of this
Warrant that would treat the Holder in a discriminatory manner, or (vii) amend,
modify or waive application of this Section 6.16(c).

6.17.       Certain Definitions 
The following terms as used in this Warrant shall have the following
meanings:

(a)           An
“Affiliate” means, with respect to
any Person, (a) any other Person directly or indirectly, through one or more
intermediaries, controlling, controlled by, or under common control with such
Person, (b) any other Person owning or controlling 10% or more of the
outstanding voting interests of such Person, (c) any officer, director, general
partner, managing member or trustee of such Person, or (d) any other Person
which is an officer, director, general partner, managing member, trustee or
holder of 10% or more of the voting interests of any other Person described in
clauses (a) through (c) of this definition. 
As used in this definition, the term “control”, “controlling”,
“controlled by” or “under common control with” means the possession, directly
or indirectly, through one or more intermediaries, of the power to direct or
cause the direction of the management and policies of a Person, whether through
voting securities, by contract or otherwise.

(b)           “Appraiser” means an independent nationally
recognized investment bank or other qualified financial institution acceptable
to the Company and a Required Interest.

(c)             “Business
Day” means any day excluding Saturday, Sunday and any day which
shall be in Nevada, Texas or the City of New York a legal holiday or a day on
which banking institutions are authorized by law or other governmental action
to close.  Any reference to “days”
(unless Business Days are specified) shall mean calendar days.

(d)           “Commission” means the Nevada Gaming
Commission.

(e)           “Competitor” means (i) any Person that
operates, or owns 50% or more of the Equity Interests in, one or more casinos
or casino/hotels, (ii) any Person that engages in the management of one or more
casinos or casino/hotels as a material portion of its business, or (iii) any
Person that directly or indirectly is in control of, is controlled by or under
common control with any of the foregoing.

(f)            “Current Market Price” means, on any date
specified herein, (i) the average daily Market Price during the period of the
most recent 20 days ending on the Relevant Date, on which the national
securities exchanges were open for trading, (ii) if no class of Membership Interests
are then listed or admitted to trading on any national securities exchange

 24
 

or granted in the over-the-counter market,
then the “Current Market Price” shall be the Market Price on such date or (iii)
if there shall have been no trading on such date or if such security is not so
designated or if such security is not then listed or admitted to trading on any
national exchange or quoted in the over-the-counter market, or if
the asset to be valued is other property, the Fair Market Value thereof
determined in good faith by the Member and Holders holding a Required Interest.

(g)           “Default Rate” means 20% per annum, or such
lower rate as then may be the maximum rate permitted by Applicable Law.

(h)           “EBITDA” shall mean without duplication, (a)
the sum of (i) Net Income, (ii) Interest Expense, (iii) federal, state and
local income taxes deducted in determining Net Income, and (iv) depreciation
and amortization and other non-cash items properly deducted in determining Net
Income, in each case on a consolidated basis for the Company and its
Subsidiaries for such period, calculated on a consolidated basis in accordance
with generally accepted accounting principles, minus (b) non-cash items
properly added in determining Net Income for such period (calculated on a consolidated
basis in accordance with generally accepted accounting principles).  Any and all payments made to Northwind in
cash pursuant to the Energy Services Agreement shall be deemed to be operating
expenses of the Company for the purpose of determining EBITDA.

(i)            “Energy Services Agreement” means that
certain Energy Service Agreement dated as of September 24, 1998 by and between
Aladdin Gaming and Northwind as amended and assumed by Aladdin Gaming and
assigned to OpBiz.

(j)            “Equity Value” means an amount equal to
eight times (8.0x) EBITDA for the twelve calendar months ending on the last day
of the month immediately preceding the Put Demand Date, less Net Debt of the
Company and its Consolidated Subsidiaries as of the end of  month immediately preceding the Put Demand
Date.

(k)           “Fair Market Value” means, with respect to
any security or other property, either (i) the Market Price, if any, of such
security or (ii) if no Market Price exists, the value (which shall not take
into effect any discounts for minority interest, illiquidity or restrictions on
transferability) of such security or other property as determined in good faith
by agreement of the Member and Holders holding a Required Interest; provided,
however, that if the parties cannot agree upon such Fair Market Value,
the Fair Market Value of such security or other property shall be determined by
the procedures for obtaining an Appraiser’s Determination set forth in Section
6.1(b).

(l)            “Gaming Authority” means any of the Nevada
Gaming Commission, the Nevada State Gaming Control Board, the Clark County
Liquor and Gaming Licensing Board and any other gaming regulatory body or any
agency which has, or may at any time after the Closing Date have, jurisdiction
over the gaming activities of the Premises or any successor to such authority.

(m)          “Gaming Laws” means the provisions of the
Nevada Gaming Control Act, as amended from time to time, all regulations of the
Nevada Gaming Commission

 25
 

promulgated thereunder, as amended from time
to time, the provisions of the Clark County Code, as amended from time to time,
and all other laws, statutes, rules, rulings, orders, ordinances, regulations
and other legal requirements of any Gaming Authority.

(n)           “Indebtedness” means, without duplication,
with respect to the Company and its Subsidiaries:  (a) all obligations of such Person for
borrowed money or for the deferred purchase price of Property or services
(other than current accounts payable incurred in the ordinary course of business,
and accrued expenses and liabilities incurred in the ordinary course of
business), and all obligations evidenced by bonds, debentures, notes, or
similar instruments; (b) all obligations and liabilities of any Person secured
by any Lien on the Property of the Company or any Subsidiary, with respect to
which obligations and liabilities neither the Company nor any of its
Consolidated Subsidiaries shall have assumed or become liable for the payment
thereof; provided, however, that all such obligations and liabilities which are
limited in recourse to such Property shall be included in Indebtedness only to
the extent of the book value of such Property that would be shown on a
Consolidated balance sheet of the Company and its Subsidiaries prepared in
accordance with GAAP; (c) all obligations or liabilities created or arising
under any Capital Lease or conditional sale or other title retention agreement
with respect to Property acquired by the Company or any of its Subsidiaries,
even if the rights and remedies of the lessor, seller or lender thereunder are
limited to repossession of such Property; provided, however, that all such
obligations and liabilities which are limited in recourse to such Property
shall be included in Indebtedness only to the extent of the book value of such
Property that would be shown on a Consolidated balance sheet of the Company and
its Subsidiaries prepared in accordance with GAAP;  and (d) all obligations and liabilities under
guaranties, indemnities, and for reimbursement in connection with letters of
credit and surety bonds.  For the
purposes of this Warrant, the Indebtedness of any Person shall include the
proportion of Indebtedness of any partnership in which such Person is a general
partner or joint venturer with liability for the of such Person but only to the
extent of such Person’s interest in such general partnership or joint venture.

(o)           “Interest Expense” means, with respect to
the Company for any period, the aggregate interest expense of the Company and
its Consolidated Subsidiaries during such period determined on a consolidated
basis, and shall in any event include, without limitation, (i) the amortization
of debt discounts, (ii) the amortization of all fees payable in connection with
the incurrence of indebtedness to the extent included in interest expense and (iii)
the portion of any obligations in respect of Capital Leases allocable to
interest expense (recognizing that, in any event, no portion of “Debt Service”
or “Return on Equity” under the Energy Service Agreement shall be treated as
interest expense on Capital Lease obligations, regardless of GAAP, but instead
shall be treated as a component of EBITDA as set forth in the definition of
EBITDA).

(p)          
“Liquidity Event”  shall mean the occurrence of any one of
the following events:  (i) a Qualified
Public Offering of the Company or OpBiz or (ii) a sale of all or substantially
all of the assets of either OpBiz (or any successor) or the Premises (either
before or after the renovation thereof into the Planet Hollywood Resort &
Casino) to any Person that is not an Affiliate of the Company or of BH/RE,
L.L.C.

(q)           “Market Price” of any security, as of any
date, means the value determined in accordance with the following provisions:

 26
 

(i)          if
such security is listed on a national securities exchange registered under the
Exchange Act, a price equal to the closing sales price for such security on
such exchange on such date; or

(ii)         if
not so listed, and such security is quoted on NASDAQ, a price equal to the
closing bid and asked prices for such security quoted on such system on such
date.

(r)            “Mecca Options”  means options to purchase equity interests in
the Company that will represent an indirect 3% interest in the fully-diluted
equity interests of OpBiz that will be granted to Michael V. Mecca, the CEO of
OpBiz.

(s)           “Net Debt” shall mean (a) Indebtedness of
the Company and its Consolidated Subsidiaries less (b) unrestricted cash
balances of the Company and its Consolidated Subsidiaries.

(t)            “Net Income” means with respect to the
Company for any period, the consolidated net income (or net loss) of the
Company and its Subsidiaries for such period but excluding any extraordinary
gains or losses or any gains or losses from the sale or disposition of assets
other than in the ordinary course of business, all computed and calculated in
accordance with GAAP.  For the avoidance
of doubt, Net Income will include the Distributions received by the Company in
respect of its interest in the Time Share Entity but will not include any net
income or net loss of the Time Share Entity.

(u)           “OpBiz” shall mean OpBiz, L.L.C.

(v)           “Permitted Indebtedness” means (a) Indebtedness incurred in
connection with the CMBS Facility and any Indebtedness incurred in
refinancings of the outstanding principal amount of the CMBS Facility (together
with any accrued interest, premiums and any reasonable fees and expenses
incurred therewith); provided that in
no event shall principal amount thereof exceed $820 million less the amount of
any repayments of principal and any permanent reductions in the commitments,
and (b) Indebtedness incurred in connection with the financing of the utility
plant owned and operated by Northwind and located on the Energy Premises.

(w)          “Qualified Public Offering” shall mean an
underwritten public offering on a firm commitment basis lead managed by a
nationally recognized investment banking organization or organizations pursuant
to an effective registration statement under the Securities Act of 1933, as
amended (the “Securities Act”), covering the offer and sale of
Membership Interests or voting common equity securities of the Company or OpBiz
or any successor thereto (A) with respect to which the issuer of such
securities receives aggregate net proceeds attributable to sales for the
account of the Company (after deduction of underwriting discounts and
commissions) of not less than $50 million, (B) with respect to which the gross
equity value of the issuer of such securities, valued at the initial public
offering price, is at least $200 million and (C) with respect to which such
Membership Interests are listed for trading on the New York Stock Exchange or
quoted on the NASDAQ National Market.

 27
 

(x)            “Redemption Price” means, on any date, the
aggregate purchase price for the Warrant and Put Securities held by the
Holder,  which shall equal the Holder’s
fully-diluted interest in the Company’s Equity Value on such date.  In calculating the Holder’s fully-diluted
interest, unvested and out-of-the-money Membership Interests, Options and
Convertible Securities shall be disregarded.

6.18.       Other
Definitional Provisions.

(a)           The
following terms used herein shall have the meaning assigned to such terms in
the section set forth opposite such term:

	
  Adjustment Notice

  	
  6.1(a)

  
	
  Affiliate

  	
  6.17(a)

  
	
  Antidilution
  Price

  	
  2.1

  
	
  Appraisal Notice

  	
  6.1(b)

  
	
  Appraiser

  	
  6.17(b)

  
	
  Appraiser’s
  Determination

  	
  6.1(c)

  
	
  Arbitrator

  	
  6.10(a)

  
	
  Business Day

  	
  6.17(c)

  
	
  Class A Units

  	
  First paragraph

  
	
  Class B Units

  	
  First paragraph

  
	
  Commission

  	
  6.17(d)

  
	
  Company

  	
  First paragraph

  
	
  Competitor

  	
  6.17(e)

  
	
  Convertible
  Securities

  	
  2.2(d)(i)

  
	
  Current Market
  Price 

  	
  6.17(f) 

  
	
  Default Rate

  	
  6.17(g)

  
	
  EBITDA 

  	
  6.17(h) 

  
	
  Energy Services
  Agreement

  	
  6.17(i)

  
	
  Equity Value

  	
  6.17(j)

  
	
  Exchange Act

  	
  4.1(e)

  
	
  Exchange Notice

  	
  1.3(b)

  
	
  Exercise Notice

  	
  1.3(a)

  
	
  Exercise Price

  	
  First paragraph

  
	
  Expiration Date

  	
  First paragraph

  
	
  Fair Market
  Value

  	
  6.17(k)

  
	
  Filing Date

  	
  6.10(b)

  
	
  Gaming Authority

  	
  6.17(l)

  
	
  Gaming Laws

  	
  6.17(m)

  
	
  Holder 

  	
  First paragraph 

  
	
  Indebtedness

  	
  6.17(n)

  
	
  Investor Rights
  Agreement

  	
  5.1(a)

  
	
  Liquidity Event

  	
  6.17(p)

  
	
  Management Pool

  	
  2.2(d)(vi)

  
	
  Market Price 

  	
  6.17(q) 

  
	
  Mecca Options

  	
  6.17(r)

  

 

 28
 

 

	
  Member

  	
  2.2(d)(iv)

  
	
  Membership
  Interests

  	
  Second paragraph

  
	
  Net Debt 

  	
  6.17(s) 

  
	
  Net Income

  	
  6.17(t)

  
	
  Office

  	
  1.1

  
	
  OpBiz

  	
  6.17(u)

  
	
  Options

  	
  2.2(d)(i) 

  
	
  Purchase
  Agreement

  	
  First paragraph

  
	
  Put Demand Date

  	
  3.1(a)

  
	
  Put Demand Period

  	
  3.1(a)

  
	
  Put Payment Date

  	
  3.1(a)

  
	
  Put Period

  	
  3.1(a)

  
	
  Put Right

  	
  3.1(b)

  
	
  Put Securities

  	
  3.1(a)

  
	
  Qualified Public
  Offering

  	
  6.17(v)

  
	
  Redemption Price

  	
  6.17(w)

  
	
  Relevant Date

  	
  2.2(d)

  
	
  Required
  Interest

  	
  2.2(d)(iv)

  
	
  Securities Act

  	
  4.1(e)

  
	
  Warrant

  	
  First paragraph

  
	
  Warrant Register

  	
  1.1

  
	
  Warrant
  Interests

  	
  First paragraph

  

 

(b)           Except
as otherwise specified herein, all references herein:

(i)          to
any person other than the Company, shall be deemed to include such person’s
successors and assigns;

(ii)         to
the Company shall be deemed to include the Company’s successors; and

(iii)        to
any applicable law defined or referred to herein, shall be deemed references to
such applicable law as the same may have been or may be amended or supplemented
from time to time.

(c)           When
used in this Warrant, the words “herein”, “hereof’ and “hereunder”, and words
of similar import, shall refer to this Warrant as a whole and not to any
provision of this Warrant, and the words “Section” and “Exhibit” shall refer to
Sections of, and Exhibits to, this Warrant unless otherwise specified.

(d)           Whenever
the context so requires the neuter gender includes the masculine or feminine,
and the singular number includes the plural, and vice versa.

[remainder of page
intentionally left blank]

 29

 

IN WITNESS WHEREOF, the
Company has caused this certificate to be executed by its duly authorized
officer as of the date first written above.

	
  

  	
  MEZZCO, L.L.C.,

  
	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By: EQUITYCO,
  L.L.C.,

  
	
   

  	
   

  	
  a Nevada limited
  liability company, its sole member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:  Manager

  

 

  
  
 

EXHIBIT A

FORM OF
EXERCISE NOTICE

[To be executed
only upon exercise of Warrant pursuant to Section 1.3(a)]

To MezzCo, L.L.C.

The
undersigned registered Holder of the within Warrant hereby irrevocably
exercises such Warrant for, and purchases thereunder,     
[Class A Units/Class B Units] (“Warrant Interests”) and herewith makes
payment of $          therefor,
and requests that the certificates for such Warrant Interests be issued in the
name of, and delivered to
                                 ,
whose address
is                                                       .

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all respects to name of
  Holder as specified on the face of Warrant)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City)

  	
  (State)

  	
   

  	
  (Zip Code)

  
							

 

  
  
 

EXHIBIT B

FORM OF
EXCHANGE NOTICE

[To be executed
only upon net exchange of the Warrant pursuant to Section 1.3(b)]

To MezzCo, L.L.C.

The
undersigned registered Holder of the within Warrant hereby irrevocably
exchanges such Warrant with respect to       [Class A
Units/Class B Units] (“Warrant Interests”) which such Holder would be
entitled to receive upon the exercise hereof, and requests that the
certificates for such membership interests be issued in the name of, and
delivered to                                    ,
whose address is                                       .

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature must conform in all 

  	
   

  	
   

  
	
  name

  	
   

  	
  respects to name of Holder as 

  	
   

  	
   

  
	
   

  	
   

  	
  specified on the face of Warrant)

  	
   

  	
   

  
	
  Warrant

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Street Address)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City)

  	
  (State)

  	
   

  	
  (Zip Code)

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