Document:

EXHIBIT
10.3

 

FIRST
AMENDMENT TO SUBLEASE

 

(RED
ROCK STATION)

 

This
First Amendment to Sublease (this “Amendment”), dated as of March 19,
2008, is made by and between STATION CASINOS, INC., a Nevada corporation, (“Sublessor”)
and CHARLESTON STATION, LLC, a Nevada limited liability company, (“Sublessee”).

 

R E C I T A L S:

 

WHEREAS,
Sublessor and Sublessee are party to that certain Sublease (Red Rock Station)
dated as of November 7, 2007 (the “Sublease”).  All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Sublease;

 

WHEREAS,
Master Landlord and Sublessor have entered into that certain First Amendment to
Master Lease Agreement, dated as of even date herewith (the “Master Lease
Amendment” and the Master Lease, as so amended, the “Amended Master
Lease”), in order to make, among other changes, certain clarifications to Article XI
of the Master Lease with respect to the FF&E Reserve (as defined in the
Master Lease).

 

WHEREAS,
the parties hereto desire to amend the Sublease to make corresponding
clarifications to Section 13 of the Sublease with respect to the Sublease
FF&E Reserve.

 

NOW,
THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows, effective as of the date hereof:

 

1.             Amendment to Sublease. 
Section 13 of the Sublease is amended (x) to amend the third
sentence thereof to read as follows:

 

“Without
limiting the foregoing, Sublesee shall maintain with respect to the Subleased
Property a reserve (the “Sublease FF&E Reserve”) for capital and
FF&E expenditures in an amount equal to (a) 2.5% of (i) gross
revenues derived from operations of the Subleased Property (including, without
limitation, from operations of the hotel and casino components of the Subleased
Property) for the period in question minus (ii) the amount attributable to
“comps” for the Subleased Property during such period (the gross revenues net
of such comps being referred to for purposes of this Section 13 as the “net
revenues”), less (b) any amounts actually expended during such
period by Sublessee or Sublessor on account of FF&E (other than from the
Sublease FF&E Reserve or FF&E Reserve under the Master Lease, it being
understood that amounts expended on account of FF&E from the Sublease
FF&E Reserve or the FF&E Reserve under the Master Lease shall not be
included in any deductions from the Sublease FF&E Reserve deposit
requirements) (the “Required Sublease FF&E Deposit”);
provided that if the amount deducted for a period under clause (b) of this
sentence exceeds the amount that would otherwise be payable into the Sublease
FF&E Reserve under 

 

 

clause (a) of
this sentence for such period, Sublessee may reduce the Required Sublease
FF&E Deposit for the next period by the amount of such excess.”;

 

and (y) by adding the following language after the third
sentence,

 

“On or
before each Sublease Rent Payment Date, Sublessee shall fund or cause to be
funded the Sublease FF&E Reserve based on Sublessee’s good faith estimate
of the Required Sublease FF&E Deposit for the previous month (i.e., Sublessee’s good faith estimate of 2.5% of the net
revenues of the Subleased Property for the previous month minus the amounts
actually expended by Sublessee or Sublessor on account of FF&E during such
month); and concurrently with such funding Sublessee shall provide to Sublessor
a written notice of the amount of such funding. 
Within forty-five days of the end of each Fiscal Quarter, Sublessee
shall furnish Sublessor with information setting forth the actual net revenues
and actual Required Sublease FF&E Deposit of the Subleased Property for
such Fiscal Quarter, including reasonable detail regarding the gross revenues
of the Subleased Property and the comps and actual FF&E expenditures
deducted to arrive at the net revenues and Required Sublease FF&E Deposit
such that Sublessor shall have sufficient information relating to the Subleased
Property to enable Sublessor to deliver the FF&E Certificate under Section 11.1
of the Master Lease (the “FF&E Reserve Certificate”).  With respect to the Subleased Property, if
the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter
exceeds the actual Required Sublease FF&E Deposit for the Subleased
Property for such Fiscal Quarter (as set forth in the applicable FF&E
Reserve Certificate), the excess amount shall be applied against the amount to
be funded in the Sublease FF&E Reserve for the following month.  With respect to the Subleased Property, if
the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter
are less than the actual Required Sublease FF&E Deposit for the Subleased
Property for such Fiscal Quarter (as set forth in the applicable FF&E
Reserve Certificate), Sublessee shall fund, or cause to be funded, the
difference into the Sublease FF&E Reserve, within five (5) Business
Days of Sublessor delivering the FF&E Reserve Certificate.”

 

2.             Covenants, Representations and Warranties of Sublessor
and Sublessee.

 

2.1.          Each of Sublessor and Sublessee
reaffirms all terms, covenants, representations and warranties (except to the
extent such representations and warranties pertain solely to an earlier date as
set forth in the Sublease) that it made in the Sublease, as amended
hereby.  Sublessee further acknowledges
and agrees that (a) the Master Lease has been amended by the Master Lease
Agreement, and (b) the Sublease remains subject and subordinate to the
Amended Master Lease.

 

2.2.          Each of Sublessor and Sublessee
represents and warrants that (a) it has the legal power and authority to
enter into this Amendment without consent or approval by any third party other
than the Landlord’s Lender and this Amendment constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting 

 

2

 

creditors’ rights generally or by
equitable principles affecting enforceability and (b) the execution and
delivery by Sublessor or Sublessee, as applicable, of this Amendment has been
duly authorized by all requisite action on the part of Sublessor or Sublessee,
as applicable, and will not violate any provision of any of the organizational
documents of Sublessor or Sublessee, as applicable.

 

2.3.          Each of Sublessor and Sublessee
represents and warrants that, as of the date hereof, (a) no Default or
Event of Default has occurred and is continuing; (b) no Default or Event
of Default will occur as a result of the execution, delivery and performance by
Sublessor or Sublessee of this Amendment; and (c) neither Sublessor nor
Sublessee has given any notice of any uncured Default under the Sublease.

 

3.             Effect Upon Sublease.

 

3.1.          Except as specifically set forth
herein, the Sublease shall remain in full force and effect and is hereby
ratified and confirmed.

 

3.2.          The parties hereto specifically
acknowledge and agree that the Sublease, as hereby amended, is in full force
and effect in accordance with its respective terms and has not been modified,
except pursuant to this Amendment.

 

3.3.          A breach of any of the
representations and warranties made herein shall constitute a Default under the
Sublease, subject to the notice and cure provisions provided therein.

 

4.             Governing Law. THIS AMENDMENT SHALL BE CONSTRUED, INTERPRETED AND
GOVERNED BY THE LAW OF THE STATE OF NEVADA.

 

5.             Counterparts.  This
Amendment may be executed in any number of counterparts, and all such
counterparts shall together constitute the same agreement.

 

[Remainder of page left intentionally blank]

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the day and year first above written.

 

 

	
   

  	
  SUBLESSOR:

  
	
   

  	
   

  
	
   

  	
  STATION CASINOS, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: Thomas M. Friel

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief 

  Accounting Officer & Treasurer

  

 

 

	
   

  	
  SUBLESSEE:

  
	
   

  	
   

  
	
   

  	
  CHARLESTON STATION, LLC,

  
	
   

  	
  a Nevada limited liability
  company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: Thomas M. Friel

  
	
   

  	
   

  	
  Title: Senior Vice President and Treasurer

  

 

 

Landlord’s
Lender hereby consents to this Amendment as of the date hereof.

 

 

	
   

  	
  GERMAN AMERICAN CAPITAL 

  CORPORATION, a Maryland corporation, in its 

  capacity as Mortgage Lender, First Mezzanine 

  Lender, Second Mezzanine Lender, Third 

  Mezzanine Lender, and Fourth Mezzanine Lender, 

  under Landlord’s Loan Documents

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John K. Beacham

  
	
   

  	
   

  	
  Name: John K. Beacham

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey E. Paige

  
	
   

  	
   

  	
  Name: Jeffrey E. Paige

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a
  national 

  banking association, in its capacity as Mortgage 

  Lender, First Mezzanine Lender, Second Mezzanine 

  Lender, Third Mezzanine Lender and Fourth 

  Mezzanine Lender under Landlord’s Loan 

  Documents

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Mesard

  
	
   

  	
   

  	
  Name: Michael Mesard

  
	
   

  	
   

  	
  Title: Executive DirectorEXHIBIT
10.4

 

FIRST
AMENDMENT TO SUBLEASE

 

(SUNSET
STATION)

 

This
First Amendment to Sublease (this “Amendment”), dated as of March 19,
2008, is made by and between STATION CASINOS, INC., a Nevada corporation, (“Sublessor”)
and SUNSET STATION, INC., a Nevada corporation, (“Sublessee”).

 

R E C I T A L S:

 

WHEREAS,
Sublessor and Sublessee are party to that certain Sublease (Sunset Station)
dated as of November 7, 2007 (the “Sublease”).  All capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Sublease;

 

WHEREAS,
Master Landlord and Sublessor have entered into that certain First Amendment to
Master Lease Agreement, dated as of even date herewith (the “Master Lease
Amendment” and the Master Lease, as so amended, the “Amended Master
Lease”), in order to make, among other changes, certain clarifications to Article XI
of the Master Lease with respect to the FF&E Reserve (as defined in the
Master Lease).

 

WHEREAS,
the parties hereto desire to amend the Sublease to make corresponding
clarifications to Section 13 of the Sublease with respect to the Sublease
FF&E Reserve.

 

NOW,
THEREFORE, in consideration of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows, effective as of the date hereof:

 

1.             Amendment to Sublease. 
Section 13 of the Sublease is amended (x) to amend the third
sentence thereof to read as follows:

 

“Without
limiting the foregoing, Sublesee shall maintain with respect to the Subleased
Property a reserve (the “Sublease FF&E Reserve”) for capital and
FF&E expenditures in an amount equal to (a) 2.5% of (i) gross
revenues derived from operations of the Subleased Property (including, without
limitation, from operations of the hotel and casino components of the Subleased
Property) for the period in question minus (ii) the amount attributable to
“comps” for the Subleased Property during such period (the gross revenues net
of such comps being referred to for purposes of this Section 13 as the “net
revenues”), less (b) any amounts actually expended during such
period by Sublessee or Sublessor on account of FF&E (other than from the
Sublease FF&E Reserve or FF&E Reserve under the Master Lease, it being
understood that amounts expended on account of FF&E from the Sublease
FF&E Reserve or the FF&E Reserve under the Master Lease shall not be
included in any deductions from the Sublease FF&E Reserve deposit
requirements) (the “Required Sublease FF&E Deposit”);
provided that if the amount deducted for a period under clause (b) of this
sentence exceeds the amount that would otherwise be payable into the Sublease
FF&E Reserve under 

 

 

clause (a) of
this sentence for such period, Sublessee may reduce the Required Sublease FF&E
Deposit for the next period by the amount of such excess.”;

 

and (y) by adding the following language after the third
sentence,

 

“On or
before each Sublease Rent Payment Date, Sublessee shall fund or cause to be
funded the Sublease FF&E Reserve based on Sublessee’s good faith estimate
of the Required Sublease FF&E Deposit for the previous month (i.e., Sublessee’s good faith estimate of 2.5% of the net
revenues of the Subleased Property for the previous month minus the amounts
actually expended by Sublessee or Sublessor on account of FF&E during such
month); and concurrently with such funding Sublessee shall provide to Sublessor
a written notice of the amount of such funding. 
Within forty-five days of the end of each Fiscal Quarter, Sublessee
shall furnish Sublessor with information setting forth the actual net revenues
and actual Required Sublease FF&E Deposit of the Subleased Property for
such Fiscal Quarter, including reasonable detail regarding the gross revenues
of the Subleased Property and the comps and actual FF&E expenditures
deducted to arrive at the net revenues and Required Sublease FF&E Deposit
such that Sublessor shall have sufficient information relating to the Subleased
Property to enable Sublessor to deliver the FF&E Certificate under Section 11.1
of the Master Lease (the “FF&E Reserve Certificate”).  With respect to the Subleased Property, if
the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter
exceeds the actual Required Sublease FF&E Deposit for the Subleased Property
for such Fiscal Quarter (as set forth in the applicable FF&E Reserve
Certificate), the excess amount shall be applied against the amount to be
funded in the Sublease FF&E Reserve for the following month.  With respect to the Subleased Property, if
the amounts deposited into the Sublease FF&E Reserve for a Fiscal Quarter
are less than the actual Required Sublease FF&E Deposit for the Subleased
Property for such Fiscal Quarter (as set forth in the applicable FF&E
Reserve Certificate), Sublessee shall fund, or cause to be funded, the
difference into the Sublease FF&E Reserve, within five (5) Business
Days of Sublessor delivering the FF&E Reserve Certificate.”

 

2.             Covenants, Representations and Warranties of Sublessor
and Sublessee.

 

2.1.          Each of Sublessor and Sublessee
reaffirms all terms, covenants, representations and warranties (except to the
extent such representations and warranties pertain solely to an earlier date as
set forth in the Sublease) that it made in the Sublease, as amended hereby.  Sublessee further acknowledges and agrees
that (a) the Master Lease has been amended by the Master Lease Agreement,
and (b) the Sublease remains subject and subordinate to the Amended Master
Lease.

 

2.2.          Each of Sublessor and Sublessee
represents and warrants that (a) it has the legal power and authority to
enter into this Amendment without consent or approval by any third party other
than the Landlord’s Lender and this Amendment constitutes its legal, valid and
binding obligation, enforceable against it in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws relating to or limiting 

 

2

 

creditors’ rights generally or by
equitable principles affecting enforceability and (b) the execution and
delivery by Sublessor or Sublessee, as applicable, of this Amendment has been
duly authorized by all requisite action on the part of Sublessor or Sublessee,
as applicable, and will not violate any provision of any of the organizational
documents of Sublessor or Sublessee, as applicable.

 

2.3.          Each of Sublessor and Sublessee
represents and warrants that, as of the date hereof, (a) no Default or
Event of Default has occurred and is continuing; (b) no Default or Event
of Default will occur as a result of the execution, delivery and performance by
Sublessor or Sublessee of this Amendment; and (c) neither Sublessor nor
Sublessee has given any notice of any uncured Default under the Sublease.

 

3.             Effect Upon Sublease.

 

3.1.          Except as specifically set forth
herein, the Sublease shall remain in full force and effect and is hereby
ratified and confirmed.

 

3.2.          The parties hereto specifically
acknowledge and agree that the Sublease, as hereby amended, is in full force
and effect in accordance with its respective terms and has not been modified,
except pursuant to this Amendment.

 

3.3.          A breach of any of the
representations and warranties made herein shall constitute a Default under the
Sublease, subject to the notice and cure provisions provided therein.

 

4.             Governing Law. THIS AMENDMENT SHALL BE CONSTRUED, INTERPRETED AND
GOVERNED BY THE LAW OF THE STATE OF NEVADA.

 

5.             Counterparts.  This
Amendment may be executed in any number of counterparts, and all such
counterparts shall together constitute the same agreement.

 

[Remainder of page left intentionally blank]

 

3

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
as of the day and year first above written.

 

 

	
   

  	
  SUBLESSOR:

  
	
   

  	
   

  
	
   

  	
  STATION CASINOS, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: Thomas M. Friel

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President, Chief 

  Accounting Officer & Treasurer

  

 

 

	
   

  	
  SUBLESSEE:

  
	
   

  	
   

  
	
   

  	
  SUNSET STATION, INC.,

  
	
   

  	
  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas M. Friel

  
	
   

  	
   

  	
  Name: Thomas M. Friel

  
	
   

  	
   

  	
  Title: Senior Vice President and Treasurer

  

 

 

Landlord’s
Lender hereby consents to this Amendment as of the date hereof.

 

 

	
   

  	
  GERMAN AMERICAN CAPITAL 

  CORPORATION, a Maryland corporation, in its 

  capacity as Mortgage Lender, First Mezzanine 

  Lender, Second Mezzanine Lender, Third 

  Mezzanine Lender, and Fourth Mezzanine Lender, 

  under Landlord’s Loan Documents

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John K. Beacham

  
	
   

  	
   

  	
  Name: John K. Beacham

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey E. Paige

  
	
   

  	
   

  	
  Name: Jeffrey E. Paige

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., a
  national 

  banking association, in its capacity as Mortgage 

  Lender, First Mezzanine Lender, Second Mezzanine 

  Lender, Third Mezzanine Lender and Fourth 

  Mezzanine Lender under Landlord’s Loan 

  Documents

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Mesard

  
	
   

  	
   

  	
  Name: Michael Mesard

  
	
   

  	
   

  	
  Title: Executive Director

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