Document:

EXHIBIT
10.9.7

 

	
  RECORDING REQUESTED BY:

  	
   

  	
  APN Number:

  	
   

  	
  007-291-25

  
	
  AND WHEN RECORDED MAIL TO:

  	
   

  	
   

  	
   

  	
  007-293-19

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sheppard, Mullin, Richter &
  Hampton, LLP

  	
   

  	
   

  	
   

  	
   

  
	
  333 South Hope Street, 48th Floor

  Los Angeles, California 90071

  Attention: William M. Scott, IV, Esq.

  	
   

  	
   

  	
   

  	
   

  

 

 

SECOND
AMENDED AND RESTATED ASSIGNMENT OF RENTS AND REVENUES

 

THIS
SECOND AMENDED AND RESTATED ASSIGNMENT OF RENTS AND REVENUES
(this “Assignment”) is made and
entered into as of February 26, but effective as of March 5, 2002, by and
between CIRCUS AND ELDORADO JOINT  VENTURE, a Nevada general partnership
(“Assignor”), and BANK OF AMERICA N.A.,
as Agent Bank on behalf of itself and each of the Lenders (as defined in the
Second Amended and Restated Credit Agreement described below) (“Agent Bank”),
with reference to the following Recitals:

 

RECITALS

 

A.            Assignor is the owner of that
certain real property situated in the County of Washoe, State of Nevada, that
is more particularly described on Exhibit A affixed hereto and by this
reference incorporated herein and made a part hereof (the “Real  Property”).

 

B.            Assignor entered into a Credit
Agreement dated as of May 30, 1995 in favor of First Interstate Bank of Nevada,
N.A., as Administrative Agent and in favor of the Lenders and Co-Agents
referred to therein (the “Original Credit Agreement”) pursuant to which an
Assignment of Rents and Revenues was executed and delivered with respect to the
Real Property, which Assignment of Rents Revenues was recorded in the Official
Records of Washoe County, Nevada, on May 31, 1995 in Book 4312, Page 814,
as Instrument 1837111.

 

C.            Assignor entered into an Amended and
Restated Credit Agreement dated as of September 9, 1996 in favor of Wells
Fargo Bank, N.A., as Agent, and in favor of the lenders, co-agents, and managing
agents referred to therein (the “Amended and Restated Credit Agreement”)
pursuant to which an Amended and Restated Assignment of Rents and Revenues was
executed and delivered with respect to the Real Property ( the “Existing
Assignment of Rents”).

 

 

D.            Assignor
entered into an Amended and Restated Credit Agreement dated as of September 9,
1996 in favor of Administrative Agent (under its former name, Bank of America
National Trust and Savings Association), as Agent, and in favor of the lenders,
co-agents, and managing agents referred to therein (the “Existing Credit
Agreement”) pursuant to which an Amended and Restated Assignment of Rents and
Revenues was executed and delivered with respect to the Real Property ( the
“Existing Assignment of Rents”).

 

E.             Assignor, the Lenders named
therein, and Administrative Agent, as Administrative Agent, have entered into a
Second Amended and Restated Credit Agreement dated as of even date herewith
(said Second Amended and Restated Credit Agreement as it may hereafter be
amended, supplemented or otherwise modified from time to time, being the
“Credit Agreement”) to amend and restate the Existing Credit Agreement as set
forth therein.

 

F.             Pursuant to the Credit Agreement
and subject to the terms and conditions specified therein, Lenders have agreed
to provide the Revolving Loans and Term Loans to Assignor in an aggregate
amount not to exceed Forty Million Dollars ($40,000,000.00) as reduced from
time to time in accordance with the terms and conditions of the Credit Agreement
and the Notes.  It is a condition of the
Revolving Loans and Term Loans that all of Assignor’s right, title and interest
in and to all rents, issues, profits, products, earnings, income, royalties,
proceeds, payments and revenues, including, without limitation, rentals,
revenues, receipts, payments, income and deposits of any nature whatsoever now
and in the future derived from or received with respect to hotel rooms, banquet
facilities, convention facilities, retail premises, bars, restaurants, casinos
and any other facilities, relating to or derived from the Real Property or from
leases, subleases, licenses, concessions, franchises or other use or occupancy
agreements covering any of the Real Property (collectively, the “Rents and Revenues”), be assigned to Agent
Bank upon the terms and conditions set forth hereinbelow.

 

NOW,
THEREFORE, in consideration of the Revolving Loans and Term
Loans, Assignor hereby absolutely and irrevocably grants, sells, assigns,
transfers and sets over to Agent Bank all of the right, title and interest of
Assignor in and to the Rents and Revenues as follows:

 

1.             Assignor has granted, sold,
assigned, transferred and set over, and by these presents does hereby grant,
sell, assign, transfer and set over unto Agent Bank, its successors and
assigns, all of Assignor’s right, title and interest in and to the Rents and
Revenues, together with all rights, interests and privileges which Assignor has
or may have to receive and collect the Rents and Revenues, including, without
limitation, the present and continuing right with full power and authority in
its own name and in the name of Assignor or otherwise to make, claim for,
enforce, collect, receive and receipt for any and all of such Rents and
Revenues and to do any and all

 

2

 

things which Assignor is or may become entitled for the collection of
the Rents and Revenues.

 

2.             The acceptance of this Assignment
and the payment of any Rents and Revenues hereby assigned shall not constitute a
waiver of any rights of Agent Bank or any of the Lenders under the terms of the
Credit Agreement or any other Loan Documents for the benefit of Agent Bank or
any of the Lenders.

 

3.             It is understood and agreed that
Assignor reserves, for so long as there shall exist no Event of Default under
the Credit Agreement, the Notes or the Loan Documents, or any default or event
of default under or with respect to any interest rate swap agreements, currency
swap agreements, and similar hedging arrangements, interest rate swaps, caps
and/or collar agreements entered into with any Lender which is party to the
Credit Agreement (“Interest Rate Agreements”), a revocable license to collect
the Rents and Revenues as they become due, but not prior to accrual, and to
remit the same in accordance with the Credit Agreement.  Upon the occurrence of an Event of Default
under the Credit Agreement, the Notes or other Loan Documents, including an
Event of Default with respect to any Interest Rate Agreement, such license
reserved to Assignor shall be immediately revoked without further demand or
notice and Agent Bank thereafter will have the right, but not the obligation
to: (i) demand payment of the Rents and Revenues from the appropriate party,
(ii) give notice that further payment of Rents and Revenues are to be made
as directed by Agent Bank, and (iii) settle, compromise, bring suit in
respect to Rents and Revenues or otherwise deal with the person owing such
Rents and Revenues, either in the name of Assignor or its own name.  If any Rents and Revenues are collected by
Assignor in violation of this Assignment, such Rents and Revenues shall be held
in trust for the benefit of Agent Bank on behalf of the Lenders.  Any such Rents and Revenues which are
actually collected by Agent Bank and not held by a receiver or other third
party shall be applied to Assignor’s obligations under the Credit Agreement in
the same order set forth by Section 8 of the Credit Agreement for funds
deposited in the Cash Collateral Account. 
Agent Bank hereby agrees that, upon Assignor’s cure of any Event of
Default not relating to the payment of money, Agent Bank will reinstate
Assignor’s license to collect the Rents and Revenues.

 

4.             Neither Agent Bank nor any of the
Lenders shall be obligated to perform or discharge any obligation or duty to be
performed or discharged by Assignor relating to the Rents and Revenues or the
Real Property, and Assignor hereby agrees to indemnify Agent Bank and each of
the Lenders for, and to save them harmless from, any and all liability arising
from the Rents and Revenues, from this Assignment, or from the management,
operation and repair of the Real Property, and this Assignment shall not place
responsibility for the control, care, management, operation or repair of the
Real Property upon Agent Bank or any of the Lenders, or make Agent Bank or any
of the Lenders responsible or liable for any negligence in the management,
operation, upkeep, repair or control of the Real Property resulting in loss or
injury or death to any tenant, guest, licensee, employee or stranger (provided
that

 

3

 

 this Section 4 shall not act to
relieve Agent Bank from liability resulting from the gross negligence or
willful misconduct of Agent Bank).

 

5.             Assignor agrees that this
Assignment and the designation and directions herein set forth are irrevocable
and that Assignor will not, while this Assignment or such designation and
directions are in effect or thereafter so long as any obligation of Assignor
under the Credit Agreement remains unsatisfied or the Lenders have any
obligation, whether contingent or otherwise, to advance any funds under the
Credit Agreement, make any other assignment, designation or direction
inconsistent herewith, and that any assignment, designation or direction
inconsistent herewith shall be void. 
Assignor will from time to time, upon the request of Agent Bank, execute
all instruments of further assurance and all such supplemental instruments as
Agent Bank may specify.

 

6.             No action or inaction on the part
of Agent Bank or any of the Lenders shall constitute an assumption on the part
of Agent Bank or any of the Lenders of any obligations or duties relating to
the Rents and Revenues.  No action or
inaction on the part of Assignor shall adversely affect or limit in any way the
rights of Agent Bank under this Assignment or, through this Assignment, to the
Rents and Revenues.

 

7.             Assignor covenants and represents
that, except for an assignment made by Assignor in favor of Mandalay Resort Group
(under its former name, Circus Circus Enterprises, Inc.) pursuant to a
Construction Deed of Trust dated November 24, 1997 (which assignment is,
pursuant to a Subordination and Debt Put Agreement dated November 24, 1997
among Assignor, Assignee and Mandalay Resort Group (under its former name,
Circus Circus Enterprises, Inc.), subject and subordinate to the assignment in
favor of Assignor made pursuant to this Assignment), no other assignments of
its interests in the Rents and Revenues have been made.

 

8.             The full performance of the terms
contained in the Credit Agreement and the Notes and the duly recorded
reconveyance of the Deed of Trust shall render this Assignment void.  Upon such reconveyance, the Agent Bank, at
the request and the expense of Assignor, will deliver either an instrument
canceling this Assignment or assigning the rights of the Agent Bank hereunder,
as Assignor shall direct.

 

9.             This Assignment applies to and
binds the parties hereto and their respective heirs, administrators, executors,
successors and assigns.  This Assignment
may not be modified or terminated orally.

 

10.          Nothing contained in this Assignment
and no act done or omitted by Agent Bank or any of the Lenders pursuant to its
terms shall be deemed a waiver by Agent Bank or any of the Lenders of any
rights or remedies under the Loan Documents, and this Assignment is made and
accepted without prejudice to any rights or remedies possessed by Agent Bank or
any of the Lenders under the terms of the

 

4

 

Loan Documents.  The right of
the Lenders to collect the Indebtedness, and to enforce any security for the
Indebtedness,  may be exercised by Agent
Bank or any of the Lenders prior to, simultaneous with, or subsequent to any
action taken under this Assignment.

 

11.          Assignor and Agent Bank intend that
this Assignment shall be a present, absolute and unconditional assignment from
Assignor to Agent Bank and not merely the passing of a security interest and,
immediately upon execution, subject to the license granted above, this
Assignment gives Agent Bank the right (but not the obligation) to collect the
Rents and Revenues and to apply them in payment of the principal and interest
and all other sums payable under the Loan Documents.  Assignor and Assignee further agree that, during the term of this
Assignment, the Rents and Revenues will not constitute property of Assignor (or
of any estate of Assignor) within the meaning of 11 U.S.C. §541, as
amended from time to time.  Nothing
contained herein, nor any collection of Rents and Revenues by Agent Bank or any
of the Lenders or by a receiver, shall be construed to make Agent Bank or any
of the Lenders a “mortgagee-in-possession” of the Real Property.

 

12.          The parties hereto acknowledge that
prior to Agent Bank or any of the Lenders obtaining gaming revenues as a part
of Rents and Revenues, prior approval of the Gaming Board may be required.

 

13.          THIS ASSIGNMENT SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF NEVADA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

14.          ALL JUDICIAL PROCEEDINGS BROUGHT
AGAINST ASSIGNOR ARISING OUT OF OR RELATING TO THIS ASSIGNMENT MAY BE BROUGHT
IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF NEVADA,
AND BY EXECUTION AND DELIVERY OF THIS ASSIGNMENT ASSIGNOR ACCEPTS FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE
EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM
NON CONVENIENS AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH THIS ASSIGNMENT. 
Assignor hereby agrees that service of all process in any such
proceeding in any such court may be made by registered or certified mail, return
receipt requested, to Assignor at its address provided in subsection 10.8
of the Credit Agreement, such service being hereby acknowledged by Assignor to
be sufficient for personal jurisdiction in any action against Assignor in any
such court and to be otherwise effective and binding service in every
respect.  Nothing herein shall affect
the right to serve process in any other manner permitted by law.

 

5

 

15.          ASSIGNOR AND ASSIGNEE HEREBY AGREE TO
WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF THIS ASSIGNMENT. 
The scope of this waiver is intended to be all-encompassing of any and
all disputes that may be filed in any court and that relate to the subject
matter of this Assignment, including without limitation contract claims, tort
claims, breach of duty claims and all other common law and statutory
claims.  Each party hereto acknowledges
that this waiver is a material inducement to enter into a business
relationship, that each has already relied on this waiver in entering into this
Assignment, and that each will continue to rely on this waiver in their related
future dealings.  Each party hereto
further warrants and represents that it has reviewed this waiver with its legal
counsel and that it knowingly and voluntarily waives its jury trial rights
following consultation with legal counsel. 
THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS ASSIGNMENT.  In the event of litigation, this Assignment
may be filed as a written consent to a trial by the court.

 

16.          This Assignment may be executed in any
number of counterparts, each of which shall be deemed an original and all of
which shall constitute one and the same document with the same effect as if all
parties had signed the same signature page. 
Any signature page and acknowledgment page of this Assignment may be
detached from any counterpart of this Assignment and reattached to any other
counterpart of this Assignment identical in form hereto but having attached to
it one or more additional signature and acknowledgment pages.

 

6

 

IN
WITNESS WHEREOF, the parties have caused their duly
authorized representatives to execute this Assignment on the day and year first
above written.

 

ASSIGNOR:

 

CIRCUS AND ELDORADO JOINT VENTURE,

a Nevada general partnership

 

	
  By:

  	
  /s/ Gary Carano

  	
   

  
	
   

  	
  Gary Carano

  
	
   

  	
  Chief Executive Officer

  

 

7

 

AGENT BANK:

 

BANK OF AMERICA N.A.,

as Agent Bank on behalf of itself and

each of the Lenders

 

	
  By:

  	
  /s/ Janice Hammond

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  
				

 

8

 

ACKNOWLEDGMENT FOR CIRCUS AND
ELDORADO JOINT VENTURE:

 

	
  STATE OF NEVADA

  	
  )

  
	
   

  	
  ) ss

  
	
  COUNTY OF Washoe

  	
  )

  

 

This instrument was acknowledged before me on Feb 26,
2002, by Gary Carano as Chief Executive Officer of CIRCUS AND ELDORADO JOINT
VENTURE.

 

	
  /s/ Kerri LaFerriere

  	
   

  
	
  Notary Public

  

 

9

 

ACKNOWLEDGMENT FOR BANK OF AMERICA
N.A., as Agent

 

	
  State of California

  	
  )

  
	
   

  	
  ) ss

  
	
  County of Los Angeles

  	
  )

  

 

On March 1, 2002 before me, Carla R. Witt, Notary Public,
personally appeared Janice Hammond,        ý        personally known to me or           proved to me on the basis of
satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.

 

WITNESS my hand and official seal.

 

	
   

  	
  /s/ Carla R. Witt

  

 

10

 

EXHIBIT A

 

Legal
Description of Real Property

 

THE LAND REFERRED TO HEREIN IS SITUATED IN THE COUNTY OF WASHOE, STATE
OF NEVADA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL 1:

 

Beginning at the intersection of the Southern line of
West Fifth Street with the Western line of North Virginia Street; thence
Southerly along said Western line of North Virginia Street, 88.00 feet; thence
Westerly parallel with the Northern line of West Fourth Street 140.00 feet to
the Eastern line of alley; thence Northerly along the last mentioned line 88.00
feet to said Southern line of West Fifth Street; thence Easterly along said
Southern line of West Fifth Street, 140.00 feet to the point of beginning.

 

PARCEL 2:

 

Beginning at the intersection of the West line of
North Virginia Street with the North line of Lot 10 in Block “B” of ORIGINAL
TOWN, NOW CITY OF RENO, according to the map thereof, filed in the office of
the County Recorder of Washoe County, State of Nevada, on June 27,  1871; 
thence Northerly along the Westerly line of North Virginia Street, 12
feet, more or less, to the Southeast corner of the parcel of land described in
the deed to Ivanhoe Corporation of record in Book 453, File No. 278019, Deed
Records; thence Westerly along the Southern line of said Ivanhoe Corporation
parcel 140 feet to the Easterly line of an alley; thence Southerly along the
last mentioned line, 12 feet, more or less, to the Northwest corner of said Lot
10; thence Easterly to the point of beginning.

 

PARCEL 3:

 

Lots 10, 11, 12 and the North 13 feet of Lot 13 in
Block ”B” of ORIGINAL TOWN, NOW CITY OF RENO, according to the map thereof,
filed in the office of the County Recorder of Washoe County, State of Nevada,
on June 27, 1871.

 

PARCEL 4:

 

The Northerly 9.25 feet of Lot 3 and all of Lots 4, 5,
6, 7 and 8 in Block “B” of ORIGINAL TOWN, NOW CITY OF RENO, according to the
map thereof, filed in the office of the County Recorder of Washoe County, State
of Nevada, on June 27, 1871.

 

ALSO a parcel of land bounded on the South by the
Southern line of the 40 foot alley as laid out on the map of the Town, now City
of Reno, in said Block “B”,

 

A-1

 

bounded on the West by the Eastern line of North
Sierra Street, bounded on the North by the Southern line of West Fifth Street
and bounded on the East by the Western line of the 20 foot alley running
Northerly and Southerly through said Block “B”.

 

PARCEL 5:

 

The South 37 feet of Lot 13 in Block “B” of the
“ORIGINAL TOWN, NOW CITY OF RENO”, according to the official map thereof, filed
in the office of the County Recorder of Washoe County, State of Nevada, on June
27, 1871.

 

PARCEL 6:

 

Lot 14 in Block B of ORIGINAL TOWN, NOW CITY OF RENO,
according to the map thereof, filed in the office of the County Recorder of
Washoe County, State of Nevada, on June 27, 1871.

 

PARCEL 7:

 

The West forty (40) feet of Lot Fifteen (15) in Block
“B” fronting forty (40) feet on the North line of Fourth Street, as designated
on the official map of said City of Reno, Nevada, on file and of record in the
office of the County Recorder in and for the said County of Washoe; the
property hereby conveyed being the same property described in a Deed from May
J. A. Nadon and others to Dale V. Clanton, dated November 18, 1920, and filed
for record on the 29th day of November, 
1920,  in the office of the
County Recorder in and for the County of Washoe, and therein recorded in Book
56 of Deeds, at Page 440.

 

PARCEL 8:

 

The East 100 feet of Lot 15 in Block B of original
town, now City of Reno, according to the map thereof, filed in the office of
the County Recorder of Washoe County, State of Nevada, on June 27, 1871.

 

PARCEL 9:

 

All of Lots 1 and 2, and the South 40.75 feet of Lot 3
in Block B of the ORIGINAL TOWN, NOW CITY OF RENO, according to the map
thereof, filed in the office of the County Recorder of Washoe County, State of
Nevada, on June 27, 1871.

 

PARCEL 10:

 

The South 20 feet of Lot 10, and all of Lots 11, 12,
13, 14, 15 and 16, in Block A, of ORIGINAL TOWN, NOW CITY OF RENO, according to
the map thereof, filed

 

A-2

 

in the office of the County Recorder of Washoe County,
State of Nevada, on June 27, 1871.

 

TOGETHER WITH the East 1/2 of the North-South alley
running through said Block A, immediately adjoining Lots 11, 12, 13, 14, 15 and
16 on the West,  and more particularly
described in those certain Orders of Abandonment recorded January 19, 1977 in
Book 1044, Page 521 as Document No. 445058, and recorded November 14, 1985 in
Book 2251, Page 933 as Document No. 1034253 of Official Records.

 

PARCEL 11:

 

The East 78 feet of Lot 9 and the East 78 feet of the
North 30 feet of Lot 10 in Block A of the ORIGINAL TOWN, NOW CITY OF RENO,
according to the Official Map thereof, filed in the office of the County
Recorder of Washoe County, State of Nevada, on June 27, 1871.

 

Together with that portion of the vacated alley lying
Southerly of the Southerly line of West Fifth Street and Westerly of the
Westerly line of North Sierra Street adjoining said Lot 9 at its most
Northeasterly corner.

 

PARCEL 12:

 

A portion of the Southwest 1/4 of the Northeast 1/4 of
Section 11, Township 19 North, Range 19 East, M.D.B&M., lying and
being in the City of Reno, County of Washoe, State of Nevada, and more
particularly described as follows:

 

The Westerly 74 feet of Lot 9 and the Westerly 74 feet
of the North 30 feet of Lot 10, all in Block A of the ORIGINAL TOWN, NOW
CITY OF RENO, according to the official map thereof, filed in the office of the
County Recorder of Washoe County, State of Nevada, on June 27, 1871.

 

PARCEL 13:

 

BEGINNING at the Northeast corner of Lot 8, Block A,
as shown on the official plat of the town, now City of Reno, Nevada, filed in
the office of the County Recorder of Washoe County, Nevada, on June 27, 1871;
thence Southerly along the Easterly lines of Lots 8 and 7 of said Block A to
the Southeast corner of Lot 7; thence Westerly along the Southerly line of Lot
7 and the Southerly line of Lot 7 projected to its intersection with the
Easterly line of West Street; thence Northerly along the Easterly line of West
Street to the Southerly line of West Fifth Street; thence Easterly along the
Southerly line of West Fifth Street to the point of beginning.

 

A-3

 

PARCEL 14:

 

Lots 1, 2, 3, 4, 5, 6, in Block A, of ORIGINAL TOWN,
NOW CITY OF RENO, according to the map thereof, filed in the office of the
County Recorder of Washoe County, State of Nevada, on June 27, 1871,
together with that parcel immediately adjoining Lots 5 and 6 on the West, that
is more particularly described as follows:

 

BEGINNING at the Northeasterly corner of Lot 6, in
Block A of ORIGINAL TOWN, NOW CITY OF RENO, according to the map thereof, filed
in the office of the County Recorder of Washoe County, State of Nevada, on June
27, 1871; thence Southerly along the Easterly line of said Lots 5 and 6, in
Block A, 100 feet to the Southeasterly corner thereof; thence Westerly
along the Southerly line of said Lot 5 and the Southerly line of Lot 5 extended
Westerly to the Easterly line of West Street, as now located in the City of
Reno, a distance of 140 feet; thence Northerly along the Easterly line of West
Street 100 feet to a point which would be intersected by a line extended
Westerly from the Northeasterly corner of said Lot 6 and along the Northerly
line of said Lot 6; thence Easterly and along said line and the Northerly line
of said Lot 6, a distance of 140 feet to the Northeasterly corner of said
Lot 6, the point of beginning; said premises being Lots 5 and 6 in Block A of
the TOWN OF RENO, according to the map above mentioned, and that portion of the
40 foot alley around the Town of Reno, according to the map above mentioned,
lying Westerly of Lots 5 and 6 and East of the East line of West Street, as now
located and between the Northerly and Southerly line of said Lots 5 and 6 if
said lines were extended Westerly to the Easterly line of West Street as now
located.

 

TOGETHER WITH the West one-half of the North-South
alley running through said Block A, immediately adjoining said LOTS 1, 2, 3, 4,
5 and 6 on the East, and more particularly described in those certain Orders of
Abandonment recorded January 19, 1977 in Book 1044, Page 521 as Document
No. 445058, and recorded on November 14, 1985 in Book 2251, Page 533 as
Document No. 1034253, Official Records, Washoe County, State of Nevada.

 

PARCEL 15:

 

All that certain 20.0 ft. wide alley connecting West
Fourth Street with West Fifth Street, Reno, Nevada, lying within Block B of the
original Town, now City of Reno, according to the map thereof, filed in the
Office of the Washoe County Recorder on June 27, 1871, and within Block B of
the Evans North Addition, according to the map thereof, filed in the office of
the Washoe County Recorder on December 16, 1879.

 

A-4

 

PARCEL 16:

 

All that certain 20.0 ft. wide alley lying between
Lots 7, 8, 9 and 10 of Block A of the Original Town, now City of Reno,
according to the map thereof, filed in the office of the Washoe County Recorder
on June 27, 1871.

 

PARCEL 17: (Air Rights Only)

 

All that certain piece or parcel of land located
within a portion of the Northeast 1/4 of Section 11, Township 19 North, Range
19 East, M.D.B.&M. more particularly described as follows:

 

That certain air space located above Sierra Street
commencing at an elevation of 4,521 and extending vertically 32 feet to an
elevation of 4,553 feet, which height is measured from the finished floor
elevation of the Silver Legacy Casino at 4,503 feet, and located directly over
that certain parcel of real property described as follows:

 

Commencing at the Southwest corner of Block B Reno
Townsite as shown on Record-of-Survey 2665, recorded January 27, 1994,

 

thence North 13°48’48” West 97.13 feet to the True
Point of Beginning

 

thence North 13°48’48” West 223.17 feet

 

thence South 76°11’12” West 80.00 feet

 

thence South 13°48’48” East 223.17 feet

 

thence North 76°11’12” East 80.00 feet to the True
Point of Beginning

 

PARCEL 18: (Subterranean Rights
Only)

 

All that certain piece or parcel of land located
within a portion of the Northeast 1/4 of Section 11, Township 19 North, Range
19 East, M.D.B.&M. more particularly described as follows:

 

That certain subterranean space located beneath Sierra
Street commencing at an elevation of 4,480 and extending vertically 20 feet to
an elevation of 4,500 feet, which height is measured from the finished floor
elevation of the Silver Legacy Casino at 4,503 feet,  and located directly below that certain parcel of real property
described as follows:

 

Commencing at the Southwest corner of Block B Reno
Townsite as shown on Record-of-Survey 2665, recorded January 27, 1994,

 

A-5

 

thence North 13°48’48” West 181.05 feet to the True
Point of Beginning

 

thence North 13°48’48” West 24.33 feet

 

thence South 76°11’12” West 80.00 feet

 

thence South 13°48’48” East 24.33 feet

 

thence North 76°11’12” East 80.00 feet to the True
Point of Beginning

 

EXCEPTING THEREFROM the above Parcels 1 through 18,
all those certain parcels as conveyed to THE CITY OF RENO, a Nevada municipal
corporation, by Deed of Dedication recorded March 9, 1995 in Book 4259, Page
956 as Document No. 1876631 of Official Records, and as amended by Deed of
Dedication recorded May 5, 1995 in Book 4297, Page 667 as Document No. 1891266
of Official Records.

 

PARCEL 19:

 

Together with the reciprocal easement rights, as
contained in those certain Bridge Easements dated May 25, 1995 by and between
CIRCUS AND ELDORADO JOINT VENTURE, a Nevada general partnership and CIRCUS
CIRCUS CASINO, INC., a Nevada corporation and ELDORADO HOTEL ASSOCIATES LIMITED
PARTNERSHIP, a Nevada limited partnership, recorded May 31, 1995 as Document
Numbers 1897109 and 1897108 Official Records, Washoe County, Nevada.

 

A-6EXHIBIT 10.9.8

 

SECOND
AMENDED AND RESTATED

COLLATERAL
ACCOUNT AGREEMENT

 

This SECOND AMENDED AND
RESTATED COLLATERAL ACCOUNT AGREEMENT (this “Agreement”) is dated as of March
5, 2002 and entered into by and between CIRCUS AND ELDORADO JOINT VENTURE, a
Nevada general partnership (“Pledgor”), and BANK OF AMERICA, N.A. as agent for
and representative of (in such capacity herein called “Secured Party”) the
financial institutions (“Lenders”) party to the Credit Agreement (as
hereinafter defined) (“Secured Party”).

 

PRELIMINARY
STATEMENTS

 

1.             Pledgor, the Lenders named therein,
Bank of America, N.A., as Administrative Agent (under its former name, Bank of
America National Trust and Savings Association), have previously entered into
an Amended and Restated Credit Agreement dated as of November 24, 1997 (the
“Existing Credit Agreement”).

 

2.             Pledgor, the Lenders named therein,
and Secured Party, as Administrative Agent, have entered into a Second Amended
and Restated Credit Agreement dated as of even date herewith (said Second
Amended and Restated Credit Agreement, as it may hereafter be amended,
supplemented or otherwise modified from time to time, being this “Credit
Agreement”) to amend and restate the Existing Credit Agreement as set forth
therein.

 

3.             This Agreement amends and restates
the Collateral Account Agreement referred to in the Existing Credit Agreement
in its entirety (the “Existing Agreement”).

 

4.             It is a condition precedent to
extensions of credit by Lenders under the Credit Agreement that Pledgor shall
have executed this Agreement, and that Pledgor shall have granted the security
interests and undertaken the obligations contemplated by this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and in order to induce Lenders to
make Loans and issue Letters of Credit under the Credit Agreement and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Pledgor hereby agrees with Secured Party as follows:

 

SECTION 1.           Certain Definitions.  This Agreement is the Collateral Account
Agreement referred to in the Credit Agreement. 
Terms defined in the Credit Agreement and not otherwise defined in this
Agreement shall have the meanings given those terms in the Credit Agreement
when used herein and such definitions are incorporated herein as though set
forth herein in full.  In addition, the
following terms used in this Agreement shall have the following meanings:

 

 

“Collateral”
means (i) the Collateral Account, (ii) all amounts on deposit from time to time
in the Collateral Account, (iii) all interest, cash, instruments, securities
and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Collateral, and
(iv) to the extent not covered by clauses (i) through (iii) above, all proceeds
of any or all of the foregoing, Collateral.

 

“Collateral
Account” means the restricted deposit account established and maintained by
Pledgor with Secured Party pursuant to Section 2(a).

 

“Secured
Obligations” means all obligations and liabilities of every nature of Pledgor
now or hereafter existing under or arising out of or in connection with the
Credit Agreement and the other Loan Documents and all extensions or renewals
thereof, whether for principal, interest (including without limitation interest
that, but for the filing of a petition in bankruptcy with respect to Pledgor,
would accrue on such obligations), reimbursement of amounts drawn under Letters
of Credit, fees, expenses, indemnities or otherwise, whether voluntary or
involuntary, direct or indirect, absolute or contingent, liquidated or
unliquidated, whether or not jointly owed with others, and whether or not from
time to time decreased or extinguished and later increased, created or
incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from Secured Party or any Lender as a preference,
fraudulent transfer or otherwise, and all obligations of every nature of
Pledgor now or hereafter existing under this Agreement.

 

SECTION 2.           Establishment and Operation of
Collateral Account.

 

(1)           Pledgor hereby authorizes and directs
Secured Party to establish and maintain at its Funding and Payment Office, as a
blocked account in the name of Pledgor but under the sole dominion and control
of Secured Party, a restricted deposit account designated as the “Circus and
Eldorado Joint Venture”.

 

(2)           The Collateral Account shall be
operated in accordance with the terms of this Agreement.

 

(3)           Secured Party shall be fully
protected and shall suffer no liability in acting in accordance with any
written instructions reasonably believed by it to have been given by Pledgor
with respect to any aspect of the operation of the Collateral Account.

 

(4)           Anything contained herein to the
contrary notwithstanding, the Collateral Account shall be subject to such
applicable laws, and such applicable regulations of the Board of Governors of
the Federal Reserve System and of any other appropriate banking or governmental
authority, as may now or hereafter be in effect.

 

2

 

 

SECTION 3.           Deposits of Cash Collateral.

 

(1)           All deposits of funds in the
Collateral Account shall be made by wire transfer (or, if applicable, by intra–bank
transfer from another account of Pledgor) of immediately available funds, in
each case addressed in accordance with such wire transfer instructions as
Secured Party may, from time to time, provide to Pledgor.

 

Pledgor shall,
promptly after initiating a transfer of funds to the Collateral Account, give
notice to Secured Party by telefacsimile of the date, amount and method of
delivery of such deposit.

 

(2)           If an Event of Default has occurred
and is continuing and, in accordance with Section 8 of the Credit Agreement,
Pledgor is required to pay to Secured Party an amount (the “Aggregate Available
Amount”) equal to the maximum amount that may at any time be drawn under all
Letters of Credit then outstanding under the Credit Agreement, Pledgor shall
deliver funds in such an amount for deposit in the Collateral Account in
accordance with Section 3(a).  If for
any reason the aggregate amount delivered by Pledgor for deposit in the
Collateral Account as aforesaid is less than the Aggregate Available Amount,
the aggregate amount so delivered by Pledgor shall be apportioned among all
outstanding Letters of Credit for purposes of this Section 3(b) in accordance
with the ratio of the maximum amount available for drawing under each such
Letter of Credit (as to such Letter of Credit, the “Maximum Available Amount”)
to the Aggregate Available Amount.  Upon
any drawing under any outstanding Letter of Credit in respect of which Pledgor
has deposited in the Collateral Account any amounts described above, Secured
Party shall apply such amounts to reimburse the Issuing Lender for the amount
of such drawing.  In the event of
cancellation or expiration of any Letter of Credit in respect of which Pledgor
has deposited in the Collateral Account any amounts described above, or in the
event of any reduction in the Maximum Available Amount under such Letter of
Credit, Secured Party shall apply the amount then on deposit in the Collateral
Account in respect of such Letter of Credit (less, in the case of such a
reduction, the Maximum Available Amount under such Letter of Credit immediately
after such reduction) first, to the payment of any amounts payable to Secured
Party pursuant to Section 13, second, to the extent of any excess, to the cash
collateralization pursuant to the terms of this Agreement of any outstanding
Letters of Credit in respect of which Pledgor has failed to pay all or a
portion of the amounts described above (such cash collateralization to be
apportioned among all such Letters of Credit in the manner described above),
third, to the extent of any further excess, to the payment of any other
outstanding Secured Obligations, and fourth, to the extent of any further
excess, to the payment to whomsoever shall be lawfully entitled to receive such
funds.

 

SECTION 4.           Pledge of Security for Secured
Obligations.  Pledgor hereby pledges
and assigns to Secured Party, and hereby grants to Secured Party a security
interest in, all of Pledgor’s right, title and interest in and to the Collateral
as collateral security for the prompt payment or performance in full when due,
whether at stated maturity, by required prepayment, declaration, acceleration,
demand or otherwise (including the payment of amounts that would become due but
for the operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, 11 U.S.C.§362(a)), of all Secured Obligations.

 

3

 

SECTION 5.           No Investment of Amounts in the
Collateral Account:  Interest on Amounts
in the Collateral Account

 

(1)           Cash held by Secured Party in the
Collateral Account shall not be invested by Secured Party but instead shall be
maintained as a cash deposit in the Collateral Account pending application
thereof as elsewhere provided in this Agreement.

 

(2)           To the extent permitted under
Regulation Q of the Board of Governors of the Federal Reserve System, any cash
held in the Collateral Account shall bear interest at the standard rate paid by
Secured Party to its customers for deposits of like amounts and terms.

 

(3)           Subject to Secured Party’s rights
under Section 12, any interest earned on deposits of cash in the Collateral
Account in accordance with Section 5(b) shall be deposited directly in, and
held in the Collateral Account and applied in accordance with Section 3(b).

 

SECTION 6.           Representations and Warranties.  Pledgor represents and warrants as follows:

 

(1)           Ownership of Collateral.  Pledgor is (or at the time of transfer
thereof to Secured Party will be) the legal and beneficial owner of the
Collateral from time to time transferred by Pledgor to Secured Party, free and
clear of any Lien except for the security interest created by this Agreement.

 

(2)           Governmental Authorizations.  No authorization, approval or other action
by, and no notice to or filing with, any governmental authority or regulatory
body is required for either (i) the grant by Pledgor of the security interest
granted hereby, (ii) the execution, delivery or performance of this Agreement
by Pledgor, or (iii) the perfection of or the exercise by Secured Party of its
rights and remedies hereunder (except as may have been taken by or at the
direction of Pledgor).

 

(3)           Perfection. The pledge and
assignment of the Collateral pursuant to this Agreement creates, to the extent
permitted by applicable law, a valid and perfected first priority security
interest in the Collateral, securing the payment of the Secured Obligations.

 

(4)           Other Information.  All information heretofore, herein or
hereafter supplied to Secured Party by or on behalf of Pledgor with respect to
the Collateral is accurate and complete in all material respects.

 

SECTION 7.           Further Assurances.  Pledgor agrees that from time to time, at
the expense of Pledgor, Pledgor will promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary
or desirable, or that Secured Party may request, in order to perfect and
protect any security interest granted or purported to be granted hereby or to
enable Secured Party to exercise and enforce its rights and remedies

 

4

 

hereunder with respect to any
Collateral.  Without limiting the
generality of the foregoing, Pledgor will: (a) execute and file such financing
or continuation statements, or amendments thereto, and such other instruments
or notices, as may be necessary or desirable, or as Secured Party may request,
in order to perfect and preserve the security interests granted or purported to
be granted hereby and (b) at Secured Party’s request, appear in and defend any
action or proceeding that may affect Pledgor’s title to or Secured Party’s
security interest in all or any part of the Collateral.

 

SECTION 8.           Transfers and other Liens.  Pledgor agrees that it will not (a) sell,
assign (by operation of law or otherwise) or otherwise dispose of any of the
Collateral or (b) create or suffer to exist any Lien upon or with respect to
any of the Collateral, except for the security interest under this Agreement.

 

SECTION 9.           Secured Party Appointed Attorney
In–Fact. Pledgor hereby irrevocably appoints Secured Party as
Pledgor’s attorney–in–fact, with full authority in the place and
stead of Pledgor and in the name of Pledgor, Secured Party or otherwise, from
time to time in Secured Party’s discretion to take any action and to execute
any instrument that Secured Party may deem necessary or advisable to accomplish
the purposes of this Agreement, including without limitation to file one or
more financing or continuation statements, or amendments thereto, relative to
all or any part of the Collateral without the signature of Pledgor.

 

SECTION 10.         Secured Party May Perform.  If Pledgor fails to perform any agreement
contained herein, Secured Party may itself perform, or cause performance of,
such agreement, and the expenses of Secured Party incurred in connection
therewith shall be payable by Pledgor under Section 13.

 

SECTION 11.         Standard of Care, The powers
conferred on Secured Party hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such
powers.  Except for the exercise of
reasonable care in the custody of any Collateral in its possession and the
accounting for moneys actually received by it hereunder, Secured Party shall
have no duty as to any Collateral, it being understood that Secured Party shall
have no responsibility for (a) taking any necessary steps (other than steps
taken in accordance with the standard of care set forth above to maintain
possession of the Collateral) to preserve rights against any parties with
respect to any Collateral or (b) taking any necessary steps to collect or
realize upon the Secured Obligations or any guarantee therefor, or any part
thereof, or any of the Collateral. 
Secured Party shall be deemed to have exercised reasonable care in the
custody and preservation of Collateral in its possession if such Collateral is
accorded treatment substantially equal to that which Secured Party accords its
own property of like kind.

 

SECTION 12.         Remedies.

 

(1)           If any Event of Default or Default
shall have occurred and be continuing, Secured Party may (i) transfer any or
all of the Collateral to an account established in Secured Party’s name
(whether at Secured Party or otherwise) or (ii) otherwise register title

 

5

 

to any Collateral in the name
of Secured Party or one of its nominees or agents, without reference to any
interest of Pledgor.

 

(2)           If any Event of Default shall have
occurred and be continuing, Secured Party may exercise in respect of the
Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party on
default under the Uniform Commercial Code as in effect in any relevant
jurisdiction (the “Code”) (whether or not the Code applies to the affected
Collateral).

 

(3)           If the proceeds of any disposition of
the Collateral are insufficient to pay all the Secured Obligations, Pledgor
shall be liable for the deficiency and the fees of any attorneys employed by
Secured Party to collect, such deficiency.

 

(4)           Anything contained herein to the
contrary notwithstanding, any of the Collateral consisting of cash held by
Secured Party in the Collateral Account shall be subject to Secured Party’s
rights of set–off under subsection 10.4 of the Credit Agreement.

 

SECTION 13.         Indemnity and Expenses.

 

(1)           Pledgor agrees to indemnify Secured
Party and each Lender from and against any and all claims, losses and
liabilities in any way relating to, growing out of or resulting from this
Agreement and the transactions contemplated hereby (including, without
limitation, enforcement of this Agreement), except to the extent such claims,
losses or liabilities result solely from Secured Party’s or such Lender’s gross
negligence or willful misconduct as finally determined by a court of competent
jurisdiction.

 

(2)           Pledgor shall pay to Secured Party
upon demand the amount of any and all costs and expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, that
Secured Party may incur in connection with (i) the administration of this
Agreement, (ii) the custody, preservation, use or operation of, or the sale of,
collection from, or other realization upon, any of the Collateral, (iii) the
exercise or enforcement of any of the rights of Secured Party hereunder, or
(iv) the failure by Pledgor to perform or observe any of the provisions hereof.

 

SECTION 14.         Continuing Security Interest:
Transfer of Loans.  This Agreement
shall create a continuing security interest in the Collateral and shall (a)
remain in full force and effect until the indefeasible payment in full of the
Secured Obligations, the cancellation or termination of the Commitments and the
cancellation or expiration of all outstanding Letters of Credit, (b) be binding
upon Pledgor, its successors and assigns, and (c) inure, together with the
rights and remedies of Secured Party hereunder, to the benefit of Secured Party
and its successors, transferees and assigns. 
Without limiting the generality of the foregoing clause (c), but subject
to the provisions of subsection 10.1 of the Credit Agreement, any Lender may
assign or otherwise transfer any Loans held by it to any other Person, and such
other Person shall thereupon become vested with all the benefits in respect
thereof granted to Lenders herein or otherwise.  Upon the indefeasible payment in full of all Secured Obligations,
the cancellation or termination of the Commitments and the cancellation

 

6

 

or expiration of all
outstanding Letters of Credit, the security interest granted hereby shall
terminate and all rights to the Collateral shall revert to Pledgor.  Upon any such termination Secured Party
shall, at Pledgor’s expense, execute and deliver to Pledgor such documents as
Pledgor shall reasonably request to evidence such termination and Pledgor shall
be entitled to the return, upon its request and at its expense, against receipt
and without recourse to Secured Party, of such of the Collateral as shall not
have been otherwise applied pursuant to the terms hereof.

 

SECTION 15.         Secured Party as Agent.

 

(1)           Secured Party has been appointed to
act as Secured Party hereunder by Lenders. 
Secured Party shall be obligated, and shall have the right hereunder, to
make demands, to give notices, to exercise or refrain from exercising any
rights, and to take or refrain from taking any action (including, without
limitation, the release or substitution of Collateral), solely in accordance
with this Agreement and the Credit Agreement.

 

(2)           Secured Party shall at all times be
the same Person that is Agent under the Credit Agreement.  Written notice of resignation by Agent
pursuant to subsection 9.5 of the Credit Agreement shall also constitute notice
of resignation as Secured Party under this Agreement; removal of Agent pursuant
to subsection 9.5 of the Credit Agreement shall also constitute removal as
Secured Party under this Agreement; and appointment of a successor Agent
pursuant to subsection 9.5 of the Credit Agreement shall also constitute
appointment of a successor Secured Party under this Agreement.  Upon the acceptance of any appointment as
Agent under subsection 9.5 of the Credit Agreement by a successor Agent, that
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring or removed Secured Party
under this Agreement, and the retiring or removed Secured Party under this
Agreement shall promptly (i) transfer to such successor Secured Party all sums
held by Secured Party hereunder (which shall be deposited in a new Collateral
Account established and maintained by such successor Secured Party), together
with all records and other documents necessary or appropriate in connection
with the performance of the duties of the successor Secured Party under this
Agreement, and (ii) execute and deliver to such successor Secured Party such
amendments to financing statements, and take such other actions, as may be
necessary or appropriate in connection with the assignment to such successor
Secured Party of the security interests created hereunder, whereupon such
retiring or removed Secured Party shall be discharged from its duties and
obligations under this Agreement.  After
any retiring or removed Agent’s resignation or removal hereunder as Secured
Party, the provisions of this Agreement shall inure to its benefit as to any
actions taken or omitted to be taken by it under this Agreement while it was
Secured Party hereunder.

 

SECTION 16.         Amendments: Etc.  No amendment or waiver of any provision of
this Agreement, or consent to any departure by Pledgor here from, shall in any
event be effective unless the same shall be in writing and signed by Secured
Party, and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given.

 

7

 

SECTION 17.         Notices.  Unless otherwise specifically provided
herein, any notice or other communication herein required or permitted to be
given shall be in writing and may be personally served, telexed or sent by
telefacsimile or United States mail or courier service and shall be deemed to
have been given when delivered in person or by courier service, upon receipt of
telefacsimile or telex by 5:00 P.M (Pacific Time) on a Business Day, or three
Business Days after depositing it in the United States mail with postage
prepaid and properly addressed; provided that notices to Secured Party shall not
be effective until received.  For the
purposes hereof, the address of each party hereto shall be as set forth under
such party’s name on the signature pages hereof or, as to either party, such
other address as shall be designated by such party in a written notice
delivered to the other party hereto.

 

SECTION 18.         Failure or Indulgence Not Waiver;
Remedies Cumulative.  No failure or
delay on the part of Secured Party in the exercise of any power, right or
privilege hereunder shall impair such power, right or privilege or be construed
to be a waiver of any default or acquiescence therein, nor shall any single or
partial exercise of any such power, right or privilege preclude any other or
further exercise thereof or of any other power, right or privilege.  All rights and remedies existing under this
Agreement are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

 

SECTION 19.         Severability.  In case any provision in or obligation under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

 

SECTION 20.         Headings.  Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

 

SECTION 21.         Governing Law: Terms.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEVADA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES, EXCEPT TO THE
EXTENT THAT THE CODE PROVIDES THE SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF
A JURISDICTION OTHER THAN THE STATE OF NEVADA. Capitalized terms defined in the
Credit Agreement but not otherwise defined herein shall have the meanings set
forth in the Credit Agreement. 
Capitalized terms defined in Articles 8 and 9 of the Uniform Commercial
Code as enacted in the State of Nevada but not otherwise defined herein or in
the Credit Agreement shall have the meanings set forth in Articles 8 and 9 of
the Uniform Commercial Code as enacted in the State of Nevada.

 

SECTION 22.         Consent to Jurisdiction and Service
of Process.  ALL JUDICIAL
PROCEEDINGS BROUGHT AGAINST PLEDGOR ARISING OUT OF OR RELATING TO THIS
AGREEMENT MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT
JURISDICTION IN THE STATE OF NEVADA, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT PLEDGOR ACCEPTS

 

8

 

FOR ITSELF AND IN CONNECTION
WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION
OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION
WITH THIS AGREEMENT.  Pledgor hereby
agrees that service of all process in any such proceeding in any such court may
be made by registered or certified mail, return receipt requested, to Pledgor
at its address provided in Section 17, such service being hereby acknowledged
by Pledgor to be sufficient for personal jurisdiction in any action against
Pledgor in any such court and to be otherwise effective and binding service in
every respect.  Nothing herein shall
affect the right to serve process in any other manner permitted by law.

 

SECTION 23.         Waiver of Jury Trial. PLEDGOR
AND SECURED PARTY HEREBY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT.  The scope of this waiver is
intended to be all–encompassing of any and all disputes that may be filed
in any court and that relate to the subject matter of this transaction,
including without limitation contract claims, tort claims, breach of duty
claims, and all other common law and statutory claims.  Pledgor and Secured Party each acknowledge
that this waiver is a material inducement for Pledgor and Secured Party to
enter into a business relationship, that Pledgor and Secured Party have already
relied on this waiver in entering into this Agreement and that each will
continue to rely on this waiver in their related future dealings.  Pledgor and Secured Party further warrant
and represent that each has reviewed this waiver with its legal counsel, and
that each knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel.  THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS TO THIS AGREEMENT.  In
the event of litigation, this Agreement may be filed as a written consent to a
trial by the court.

 

SECTION 24.         Intercreditor Agreement.  In the event of any conflict or
inconsistency between this Agreement and the Intercreditor Agreement the
provisions of the Intercreditor Agreement shall govern.

 

SECTION 25.         Counterparts.  This Agreement may be executed in one or
more counterparts and by different parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but
all such counterparts together shall constitute but one and the same
instrument, signature pages may be detached from multiple separate counterparts
and attached to a single counterpart so that all signature pages are physically
attached to the same document.

 

9

 

IN WITNESS
WHEREOF, Pledgor and Secured Party have caused this Agreement to be duty
executed and delivered by their respective officers thereunto duly authorized
as of the date first written above.

 

	
   

  	
  CIRCUS AND
  ELDORADO JOINT VENTURE

  
	
   

  	
  a Nevada
  general partnership, as Pledgor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gary
  Carano

  	
   

  
	
   

  	
   

  	
  Gary Carano

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice
  Address:

  	
  Silver
  Legacy Resort Casino

  
	
   

  	
   

  	
  407 North
  Virginia Street

  
	
   

  	
   

  	
  Reno, Nevada
  89501

  
	
   

  	
   

  	
   

  
	
   

  	
  With copies
  to:

  	
  Yvette
  Landau, Esquire

  
	
   

  	
   

  	
  Vice
  President, General Counsel and

  
	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
  Mandalay
  Resort Group

  
	
   

  	
   

  	
  3950 Las
  Vegas Boulevard South

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89119

  
	
   

  	
   

  	
  Telephone:

  	
  (702)
  632-6720

  
	
   

  	
   

  	
  Fax:

  	
  (702)
  632-6723

  
	
   

  	
   

  	
   

  
	
   

  	
  And:

  	
  John
  Frankovich, Esquire

  
	
   

  	
   

  	
  McDonald
  Carano Law Firm

  
	
   

  	
   

  	
  241 Ridge
  Street, 4th Floor

  
	
   

  	
   

  	
  Reno, Nevada
  89501

  
	
   

  	
   

  	
  Telephone:

  	
  (775)
  788-2000

  
	
   

  	
   

  	
  Fax:

  	
  (775)
  788-2020

  
									

 

S-1

 

	
   

  	
  BANK OF
  AMERICA, N.A., as Secured Party

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Janice
  Hammond

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Notice
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  555 South
  Flower Street, 17th Floor

  	
   

  
	
   

  	
  Los Angeles,
  California 90071

  	
   

  
	
   

  	
  Attention:

  	
  Janice
  Hammond, Vice President

  
						

 

S-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]