Document:

Exhibit
10.80

 

LEASEHOLD DEED OF TRUST

 

THIS LEASEHOLD DEED OF
TRUST (this “Deed of Trust”) made as of the 30th  day of January, 2004, by S&W OF LAS VEGAS, L.L.C., a Delaware
limited liability company, having an address at c/o The Smith & Wollensky
Restaurant Group, Inc., 1114 First Avenue, New York, New York 10021 (the “Grantor”)
to FIRST
AMERICAN TITLE COMPANY OF NEVADA, INC., as trustee, having an
address at 3760 Pecos-McLeod, #7, Las Vegas, Nevada 89121 (the “Trustee”),
for the benefit of MORGAN STANLEY DEAN WITTER COMMERCIAL FINANCIAL
SERVICES, INC., a Delaware corporation, having an address at 825
Third Avenue, New York, New York 10022 (the  “Beneficiary”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Grantor is
the owner of a leasehold estate in the premises described in Exhibit A attached
hereto (the “Premises”) under and pursuant to the provisions of the lease
described in Exhibit A-1 attached hereto (the “Subject Lease”);

 

WHEREAS, the Grantor is a
party to a certain Line of Credit Agreement of even date herewith among the
Grantor, The Smith & Wollensky Restaurant Group, Inc., and the Beneficiary
(such agreement and any and all amendments, modifications, extensions, renewals
or replacements thereto, is referred to herein as the  “Loan Agreement”; all
capitalized terms used herein which are not defined herein shall have the
meanings given to them in the Loan Agreement);

 

WHEREAS, subject to the
terms and conditions of the Loan Agreement, the Beneficiary has agreed to
extend a commercial line of credit under which the Beneficiary will make
advances to the Grantor (the “Advances”), which is evidenced by a
Promissory Note of even date herewith in the principal  amount of up to Two Million
and 00/100 Dollars ($2,000,000.00) [as the same may be amended or restated from
time to time, the “Note”]; and

 

WHEREAS, it is a
condition to the obligation of the Beneficiary to make the Advances that the
Grantor execute and deliver this Deed of Trust.

 

NOW THEREFORE, TO SECURE
PAYMENT AND PERFORMANCE OF THE FOLLOWING OBLIGATIONS (collectively, the “Obligations”):

 

(i)                                     Prompt
payment and performance of all obligations of the Grantor under, with respect
to and arising in connection with the Loan Agreement, the Note, this Deed of
Trust and the other Loan Documents (as herein defined), including without
limitation, all obligations to the Beneficiary for fees, costs and expenses,
including attorneys’ fees, as provided herein or therein;

 

(ii)                                  Payment
of all sums advanced by the Beneficiary or the Trustee to protect the Trust
Property (as defined herein), with interest thereon at the Default Rate (as
defined herein);

 

 

(iii)                               All
renewals, extensions, amendments, restatements and changes of, or substitutions
or replacements for, all or any part of any of the obligations described in
clause (i) hereof; and

 

(iv)                              Payment
of all sums advanced and costs and expenses incurred by the Beneficiary (or by
the Trustee) in connection with any of the foregoing obligations or in
connection with the perfection and the security therefor, whether such advances,
costs and expenses were made or incurred at the request of the Grantor or the
Beneficiary (or the Trustee);

 

THE GRANTOR BY THESE
PRESENTS HEREBY IRREVOCABLY grants, gives, bargains, sells, alienates,
enfeoffs, conveys, confirms, sets over, delivers, assigns and transfers to the
Trustee and its successors and assigns, IN TRUST FOREVER, WITH POWER OF SALE,
pursuant to this Deed of Trust and applicable law, for the benefit of the
Beneficiary, all right, title and interest of the Grantor now owned, or hereafter
acquired, in and to the property, rights and interests hereinafter described in
granting clauses (a) through (l) [all property of any kind described in said
clauses (a) through (l) being, collectively, the “Trust Property”] including,
without limitation, (i) such Trust Property that is real property under the
laws of the State of Nevada (such Trust Property that is also such real
property being collectively, the “RP Collateral”); (ii) any RP Collateral
or UCC Collateral (defined below) that is deemed a “fixture” under the Uniform
Commercial Code of the State of Nevada (the “Nevada UCC”); and (iii) Trust
Property that is not RP Collateral to the full extent that Trust Property may
be subject to the Uniform Commercial Code of the State of New York (collectively,
the “UCC
Collateral”); provided, however, such grant of the Leases and Rents
shall be absolute and unconditional as set forth in Paragraph 7 below:

 

(a)                                  (i)
the Subject Lease and the leasehold estate in the Premises created thereunder;
(ii) the buildings and improvements owned by the Grantor now or hereafter
located on the Premises (the “Improvements”); (iii) all modifications,
extensions and renewals of the Subject Lease and all credits, deposits,
options, purchase options, privileges and rights of the Grantor under the
Subject Lease, including, but not limited to, the right, if any, to renew or
extend the Subject Lease for a succeeding term or terms, or to acquire fee
title to or other interest in all or any portion of the Premises or to the Improvements;
and (iv) all of the Grantor’s rights and remedies at any time arising under or
pursuant to Section 365(h) of the Bankruptcy Code, 11 U.S.C. § 101 et
seq. (the “Bankruptcy Code”), including, without limitation, all of the
Grantor’s rights thereunder to remain in possession of the Premises and the
Improvements;

 

(b)                                 all
of the estate, right, title, claim or demand of any nature whatsoever of the
Grantor, either in law or in equity, in possession or expectancy, in and to the
Premises or any part thereof;

 

(c)                                  all
easements, rights-of-way, gores of land, streets, ways, alleys, passages, sewer
rights, waters, water courses, water rights and powers, and all estates,
rights, titles, interests, privileges, liberties, tenements, hereditaments, and
appurtenances of any nature whatsoever, in any way belonging, relating or
pertaining to the Premises (including, without limitation, any and all
development rights, air rights or similar or comparable rights of any nature
whatsoever now or hereafter appurtenant to the Premises or now or hereafter
transferred to the Premises);

 

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(d)                                 all
machinery, apparatus, equipment, fittings, fixtures and other property of every
kind and nature whatsoever and all additions thereto and renewals and
replacements thereof, and all substitutions therefor now owned or hereafter
acquired by the Grantor, or in which the Grantor has or shall have an interest,
now or hereafter located upon or in, or attached to, any portion of the Premises
or appurtenances thereto, or located off-site from the Premises but purchased
with the proceeds of the Advances and used or usable in connection with the
present or future operation and occupancy of the Premises and all building
equipment, materials and supplies of any nature whatsoever owned by the
Grantor, or in which the Grantor has or shall have an interest, now or
hereafter located upon the Premises and whether stored at the Premises or
off-site if used in connection with such operation and occupancy (collectively,
the “Equipment”),
and the right, title and interest of the Grantor in and to any of the Equipment
which may be subject to any security agreements (as defined in the Nevada UCC),
superior in lien to the lien of this Deed of Trust and all proceeds and
products of any of the above;

 

(e)                                  all
awards or payments, including interest thereon, and the right to receive the
same, which may be made with respect to the Premises, whether from the exercise
of the right of eminent domain (including any transfer made in lieu of the
exercise of said right), or for any other injury to or decrease in the value of
the Premises;

 

(f)                                    all
leases and other agreements (other than the Subject Lease) affecting the use or
occupancy of the Premises now or hereafter entered into (the “Leases”)
and the right to receive and apply the rents, issues and profits of the
Premises (the “Rents”) to the payment of the Obligations;

 

(g)                                 all
right, title and interest of the Grantor in and to (i) all contracts from time
to time executed by the Grantor or any manager or agent on its behalf relating
to the ownership, construction, maintenance, repair, operation, occupancy, sale
or financing of the Premises or any part thereof and all agreements relating to
the purchase or lease of any portion of the Premises or any property which is
adjacent or peripheral to the Premises, together with the right to exercise
such options and all leases of Equipment, (ii) all consents, licenses (to the
extent such grant is permitted by law), building permits, certificates of
occupancy and other governmental approvals relating to construction,
completion, occupancy, use or operation of the Premises or any part thereof,
and (iii) all drawings, plans, specifications and similar or related items
relating to the Premises;

 

(h)                                 all
trade names, trademarks, logos, copyrights, good will and books and records
relating to or used in connection with the operation of the Premises or any
part thereof; all general intangibles related to the operation of the Premises
now existing or hereafter arising;

 

(i)                                     all
accounts and revenues arising from the operation of the Premises, including,
without limitation, (i) any right to payment now existing or hereafter arising
for goods sold or for services rendered, whether or not yet earned by
performance, arising from the operation of the Premises and (ii) all rights to
payment from any consumer credit-charge card organization or entity, including,
without limitation, payments arising from the use of any credit or debit card,
including those now existing or hereafter created, substitutions therefor,
proceeds thereof (whether cash or non-cash, movable or immovable, tangible or
intangible) received upon the sale, exchange, transfer, collection or other
disposition or substitution thereof and any and all of the foregoing and
proceeds therefrom;

 

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(j)                                     all
proceeds of and any unearned premiums on any insurance policies covering the
Premises, including, without limitation, the right to receive and apply the
proceeds of any insurance, judgments, or settlements made in lieu thereof, for
damage to the Premises and all refunds of Taxes (as herein defined);

 

(k)                                  the
right, in the name and on behalf of the Grantor, to appear in and defend any
action or proceeding brought with respect to the Premises and to commence any
action or proceeding to protect the interest of the Beneficiary in the
Premises; and

 

(l)                                     all
rights and estates in reversion or remainder to any existing and future
corrections, modifications, supplements or amendments to, or renewals,
extensions or ratifications of, or replacements or substitutions for, or
accessions, additions or attachments to, or proceeds (both cash and non-cash)
of, any of the foregoing, and all privileges and appurtenances thereunto
belonging.

 

IN FURTHERANCE OF THE
FOREGOING GRANTS, BARGAINS, SALES, ASSIGNMENTS, TRANSFERS AND CONVEYANCES, AND
TO PROTECT THE TRUST PROPERTY AND THE SECURITY GRANTED BY THIS DEED OF TRUST,
THE GRANTOR COVENANTS AND AGREES WITH AND REPRESENTS AND WARRANTS TO THE
BENEFICIARY AS FOLLOWS:

 

1.                                       Payment
of Obligations.

 

The Grantor will pay the
Obligations at the time and in the manner provided for its payment in the Loan
Agreement, the Note and the other Loan Documents.  The Loan Agreement and the Note provide for a variable rate of
interest.

 

2.                                       Habendum
and Warranty of Title.

 

(a)  The Grantor represents that the Grantor is
the lawful owner of the Trust Property in existence on the date hereof, with
good right and authority to encumber and convey it, and that the RP Collateral
is free and clear of all liens, claims and encumbrances, subject to the terms
and condition of the Subject Lease and the other title exceptions expressly set
forth in the title insurance policy issued to the Beneficiary in connection
with the Advances and insuring the lien of this Deed of Trust.  The Grantor hereby binds the Grantor and the
Grantor’s successors and assigns to forever WARRANT and DEFEND the Trust
Property and every part of it unto the Trustee, his successors or substitutes
in the Trust, and his or their assigns, against the claims and demands of every
person whomsoever lawfully claiming or to claim it or any part of it (such
warranty to supersede any provision contained in this Deed of Trust limiting
the liability of the Grantor), subject to the terms and condition of the
Subject Lease and the other title exceptions expressly set forth in the title
insurance policy issued to the Beneficiary in connection with the Advances and
insuring the lien of this Deed of Trust. 
The Grantor further represents and warrants (i) the Subject Lease is in
full force and effect and has not been modified in any manner whatsoever, (ii)
there are no defaults under the Subject Lease and no event has occurred, which
but for the passage of time, or notice, or both, would constitute a default
under the Subject Lease, (iii) all rents, additional rents and other sums due
and payable under the Subject Lease have been paid in full, and (iv) no action
has commenced and no notice has been given or received for the purpose of
terminating the Subject Lease.

 

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(b)  The Grantor also represents and warrants
that (i) the Grantor is now, and after giving effect to this Deed of Trust,
will be in a solvent condition, (ii) the execution and delivery of this Deed of
Trust by the Grantor does not constitute a “fraudulent conveyance’’ within the
meaning of Title 11 of the United States Code as now constituted or under any
other applicable statute, and (iii) no bankruptcy or insolvency proceedings are
pending or contemplated by or against the Grantor.

 

3.                                       Insurance.

 

At all times prior to the
termination of this Deed of Trust, the Grantor (i) will keep the Improvements
and the Equipment insured against loss or damage by fire, standard extended
coverage perils and such other hazards as the Beneficiary shall from time to
time require in amounts approved by the Beneficiary on a so-called “special
form” policy, which amounts shall in no event be less than 100% of the full
insurable replacement value of the Improvements and the Equipment and shall be
sufficient to meet all applicable co-insurance requirements and will maintain
such other forms of insurance coverage with respect to the Trust Property as
the Beneficiary shall require, and (ii) will maintain rental and business
interruption insurance and such other insurance as the Beneficiary may from
time to time require, in amounts approved by the Beneficiary, including,
without limitation, comprehensive general public liability insurance covering
injury and damage to persons and property naming the Beneficiary as an
additional insured.  All policies of
insurance (the “Policies”) shall be issued by insurers having a minimum policy
holders rating of “A-” per the latest rating publication of Property and
Casualty Insurers by A.M. Best Company and shall have a financial size category
of not less than IX, and who are lawfully doing business in the state of Nevada
and are otherwise acceptable in all respects to the Beneficiary.  All Policies shall include a provision that
such Policy (a) will not be cancelled, altered or in any way limited in
coverage or reduced in amount unless the Beneficiary is notified in writing at
least thirty (30) days prior to such cancellation or change, (b) shall contain
a mortgagee non-contribution clause endorsement or an equivalent endorsement
satisfactory to the Beneficiary naming the Beneficiary as the person to which
all payments made by the insurer thereunder shall be paid and shall otherwise
be in form and substance satisfactory in all respects to the Beneficiary and
(c) shall indicate the Beneficiary’s address as Morgan Stanley Dean Witter
Commercial Financial Services, Inc., 825 Third Avenue, 15th Floor, New York,
New York 10022, or such other address as the Beneficiary may designate from
time to time.  Blanket insurance
policies shall not be acceptable for the purposes of this Paragraph 3 unless
otherwise approved to the contrary by the Beneficiary.  The Grantor shall pay the premiums for the
Policies as the same become due and payable. 
At the request of the Beneficiary, the Grantor will deliver the Policies
to the Beneficiary.  Not later than ten
(10) days prior to the expiration date of each of the Policies, the Grantor
will deliver to the Beneficiary a renewal policy or policies marked “premium
paid” or accompanied by other evidence satisfactory to the Beneficiary that the
Policies are in effect and the premiums have been paid.  If at any time the Beneficiary is not in
receipt of written evidence that all insurance required hereunder is in full
force and effect, the Beneficiary shall have the right without notice to the
Grantor to take such action as the Beneficiary deems necessary to protect its
interest in the Trust Property, including, without limitation, the obtaining of
such insurance coverage as the Beneficiary in its sole discretion deems
appropriate, and all expenses incurred by the Beneficiary in connection with
such action or in obtaining such insurance and keeping it in effect shall be
paid by the Grantor to the Beneficiary upon demand.  The Grantor shall at all times comply with and shall cause the
Improvements and Equipment and the use, occupancy, operation, maintenance,
alteration, repair and restoration thereof to comply with the terms,
conditions, stipulations and requirements of the Policies.  If the Premises, or

 

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any portion of the
Improvements or the Equipment, is located in a Federally designated “special
flood hazard area,” in addition to the other Policies required under this
Paragraph 3, a flood insurance policy shall be delivered by the Grantor to the
Beneficiary.  If no portion of the
Premises is located in a Federally designated “special flood hazard area” such
fact shall be substantiated by a certificate in form satisfactory to the
Beneficiary from a licensed surveyor, appraiser or professional engineer or
other qualified person.  If the Trust
Property shall be damaged or destroyed, in whole or in part, by fire or other
property hazard or casualty, the Grantor shall give prompt notice thereof to
the Beneficiary.  Sums paid to the
Beneficiary by any insurer may be retained and applied by the Beneficiary
toward payment of the Obligations, or held as cash collateral therefor, whether
or not then due and payable in such order, priority and proportions as the
Beneficiary in its discretion shall deem proper or, at the discretion of the
Beneficiary, the same may be paid, either in whole or in part, to the Grantor
for such purposes as the Beneficiary shall designate.  If the Beneficiary shall receive and retain such insurance
proceeds, the lien of this Deed of Trust shall be reduced only by the amount
thereof received and retained by the Beneficiary and actually applied by the
Beneficiary in reduction of the Obligations. 
This Paragraph 3 is subject to the terms of the Subject Lease.

 

4.                                       Payment
of Taxes, etc.

 

(a)                                  To
the extent that the Grantor is obligated to pay the same under the Subject
Lease or under applicable law, the Grantor shall pay all taxes, assessments,
water rates, sewer rents and other charges, including vault charges and license
fees for the use of vaults, chutes and similar areas adjoining the Premises,
now or hereafter levied or assessed against the Trust Property and the Premises
(the “Taxes”)
prior to the date upon which any fine, penalty, interest or cost may be added
thereto or imposed by law for the nonpayment thereof, and the Grantor shall
deliver to the Beneficiary, upon request, receipted bills, canceled checks and
other evidence satisfactory to the Beneficiary evidencing the payment of the
Taxes prior to the date upon which any fine, penalty, interest or cost may be
added thereto or imposed by law for the nonpayment thereof.

 

(b)                                 After
prior notice to the Beneficiary, in the case of any material item, the Grantor,
at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the amount or
validity or application in whole or in part of any of the Taxes, provided that
(i) no default shall have occurred and shall be continuing under the Note or
this Deed of Trust, (ii) the Grantor is permitted to do so under the provisions
of the Subject Lease, (ii) such proceeding shall suspend the collection of the
contested Taxes from the Grantor and from the Trust Property, (iv) such
proceeding shall be permitted under and be conducted in accordance with the
provisions of any other instrument to which the Grantor or the Trust Property
is subject and shall not constitute a default thereunder, (v) neither the Trust
Property nor any part thereof nor any interest therein will in the opinion of
the Beneficiary be in danger of being sold, forfeited, terminated, canceled or
lost, and (vi) the Grantor shall have set aside in an interest-bearing account
with the Beneficiary, and otherwise in a manner satisfactory to the
Beneficiary, adequate cash reserves for the payment of the contested Taxes,
together will all interest and penalties thereon, or in the alternative the
Grantor shall have furnished such security as may be required in the
proceeding, or as may otherwise be requested or required by the Beneficiary to
insure the payment of the contested Taxes, together with all interest and
penalties thereon, and, provided further, that if at any time the Beneficiary
determines, in its sole and absolute discretion, that payment of any tax,
assessment or other charge shall become necessary to prevent the delivery of a
tax deed conveying the Trust Property or any portion thereof because of
non-payment

 

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of any such sums, then
the Grantor shall pay or cause to be paid the sums in sufficient time to
prevent the delivery of such tax deed.

 

(c)                                  If
a default shall occur under the Note or this Deed of Trust either prior to, or
after, initiating said proceeding, the Beneficiary shall have the right to
either initiate or continue said proceeding, as the case may be, either in its
own name or as agent of the Grantor. 
The Grantor shall cooperate with the Beneficiary and make available to
the Beneficiary upon demand any and all information, and execute any documents
or pleadings, which the Beneficiary may reasonably require.  The Beneficiary shall then conduct said
proceeding in a manner it deems appropriate, and at its own expense, subject to
any right of reimbursement from the Grantor in accordance with the provisions
of this Deed of Trust.

 

5.                                       Escrow
Fund.

 

To the extent that the
Grantor is obligated to pay the Taxes under the Subject Lease or under
applicable law, the Grantor will, at the option of the Beneficiary, pay to the
Beneficiary on the first day of each calendar month one-twelfth of an amount
(the “Escrow
Fund”) which would be sufficient to pay the Taxes payable, or estimated
by the Beneficiary to be payable, during the ensuing twelve (12) months.  The Beneficiary will apply the Escrow Fund
to the payment of Taxes which are required to be paid by the Grantor pursuant
to the provisions of this Deed of Trust. 
If the amount of the Escrow Fund shall exceed the amount of the Taxes
payable by the Grantor pursuant to the provisions of this Deed of Trust, the
Beneficiary shall, in its discretion, (a) return any excess to the Grantor, (b)
credit such excess against future payments to be made to the Escrow Fund or (c)
credit such excess against the Debt in such priority and proportions as the
Grantor in its sole discretion shall deem proper.  In returning such excess, the Beneficiary may deal with the
person shown on the records of the Beneficiary to be the owner of the Trust
Property.  If the Escrow Fund is not
sufficient to pay the Taxes, as the same become payable, the Grantor shall pay
to the Beneficiary, upon request, an amount which the Beneficiary shall
estimate as sufficient to make up the deficiency.  Any amounts in the Escrow Fund may not be commingled with the
general funds of the Beneficiary and shall constitute additional security for
the Obligations and shall bear interest.

 

6.                                       Condemnation.

 

Notwithstanding any
taking of all or any portion of the Trust Property by any public or
quasi-public authority through eminent domain or otherwise, the Grantor shall
continue to pay the Obligations at the times and in the manner provided
therefor in the Note, this Deed of Trust and the other Loan Documents, and the
Obligations shall not be reduced until any award or payment therefor shall have
been actually received and applied by the Beneficiary to the reduction of the
Obligations.  The Beneficiary may hold
such award or payment  as cash
collateral for the Obligations and/or apply all or any of the same to the
reduction of the Obligations whether or not then due and payable in such order,
priority and proportions as the Beneficiary in its discretion shall deem
proper.  If the Trust Property is sold,
through foreclosure or otherwise, prior to the receipt by the Beneficiary of
such award or payment, the Beneficiary shall have the right, whether or not a
deficiency judgment shall have been sought, recovered or denied with respect to
the Obligations, to receive such award or payment, or a portion thereof
sufficient to pay the Obligations, whichever is less.  The Grantor shall file and prosecute its claim or claims for any
such award or payment in good faith and with due diligence and cause the same
to be

 

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collected and paid over
to the Beneficiary.  The Grantor hereby
irrevocably authorizes and empowers the Beneficiary, in the name of the Grantor
or otherwise, to collect and receipt for any such award or payment and to file
and prosecute such claim or claims. 
Although it is hereby expressly agreed that the same shall not be
necessary in any event, the Grantor shall, upon demand of the Beneficiary, make,
execute and deliver any and all assignments and other instruments sufficient
for the purpose of assigning any such award or payment to the Beneficiary, free
and clear of any encumbrances of any kind or nature whatsoever.

 

7.                                       Leases
and Rents.

 

(a)                                  Grantor
hereby absolutely and unconditionally assigns, sells, transfers and conveys all
of the right, title and interest in and to all Leases and all renewals,
replacements and guarantees thereof along with all of the Rents to
Beneficiary.  This assignment is
absolute in nature and not an assignment for additional security only.  Subject to the terms of this Paragraph 7,
the Beneficiary waives the right to enter the Premises for the purposes of
collecting the Rents, and grants the Grantor the right to collect the
Rents.  The Grantor shall hold the Rents,
or an amount sufficient to discharge all current sums due in respect of the
Obligations in trust for use in payment of the Obligations.  The right of the Grantor to collect the
Rents may be revoked by the Beneficiary without notice upon any default under
the terms of the Note or this Deed of Trust. 
Following such revocation, the Beneficiary may retain and apply the
Rents toward payment of the Obligations, 
in such order, priority and proportions as the Beneficiary, in its
discretion, shall deem proper, or to the operation, maintenance and repair of
the Trust Property, and irrespective of whether the Beneficiary shall have
commenced any sale or foreclosure of this Deed of Trust or shall have applied
or arranged for the appointment of a receiver. 
The Grantor shall not, without the consent of the Beneficiary, make, or
suffer to be made, any Leases or modify or cancel any Leases, or accept
prepayments of installments of the Rents for a period of more than one (1)
month in advance or further assign the whole or any part of the Rents.  Notwithstanding the foregoing, the
Beneficiary will not unreasonably withhold its consent to the Grantor making a
new Lease or renewing an existing Lease provided that (i) no Event of Default
has occurred hereunder and (ii) such new or renewed Lease is (a) for actual
occupancy, (b) at market rents, (c) for a reputable use as reasonably
determined by the Beneficiary and (d) made pursuant to documentation in form
and substance satisfactory in all respect to the Beneficiary.  The Grantor shall (a) fulfill or perform
each and every provision of the Leases on the part of the Grantor to be
fulfilled or performed, (b) promptly send copies of all notices of default
which the Grantor shall send or receive under the Leases to the Beneficiary,
and (c) enforce the performance or observance of the provisions thereof by the
tenants thereunder.  The Grantor shall
from time to time, but not less frequently than once every 180 days, provide to
the Beneficiary a complete and detailed leasing status report with respect to
the Improvements, which leasing status report shall be in form and substance
satisfactory in all respects to the Beneficiary.  In addition to the rights which the Beneficiary may have herein,
in the event of any default under this Deed of Trust, the Beneficiary, at its
option, may require the Grantor to pay monthly in advance to the Beneficiary,
or any receiver appointed to collect the Rents, the fair and reasonable rental
value for the use and occupation of such part of the Premises as may be in
possession of the Grantor.  Upon default
in any such payment, the Grantor will vacate and surrender possession of the
Premises to the Beneficiary, or to such receiver, and, in default thereof, the
Grantor may be evicted by summary proceedings or otherwise.  Nothing contained in this Paragraph 7(a)
shall be construed as imposing on the Beneficiary any of the obligations of the
lessor under the Leases or of a “mortgagee in possession” (or equivalent).

 

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(b)                                 The
Grantor acknowledges and agrees that, upon recordation of this Deed of Trust,
the Beneficiary’s interest in the Rents shall be deemed to be fully perfected,
“choate” and enforced as to the Grantor and all third parties, including
without limitation any subsequently appointed trustee in any case under the
Bankruptcy Code (as hereinafter defined), without the necessity of (i)
commencing an action for the sale or foreclosure of the Trust Property, (ii)
furnishing notice to the Grantor or tenants under the Leases, (iii) making
formal demand for the Rents, (iv) taking possession of the Premises, (v)
obtaining the appointment of a receiver of the rents and profits of the
Premises, (vi) sequestering or impounding the Rents, or (vii) taking any other
affirmative action.

 

(c)                                  For
purposes of Section 552(b) of the Bankruptcy Code, the Grantor and the
Beneficiary agree that this Deed of Trust shall constitute a “security
agreement,” that the security interest created by such security agreement
extends to property of the Grantor acquired before the commencement of a case
in bankruptcy and to all amounts paid as Rents and that such security interest
shall extend to all Rents acquired by the estate after the commencement of a
case in bankruptcy.

 

(d)                                 The
Grantor acknowledges and agrees that all Rents shall be deemed to be “Cash
Collateral” under Section 363 of the Bankruptcy Code in the event that the
Grantor files a voluntary petition in bankruptcy or is made subject to any
involuntary bankruptcy proceeding. 
After the filing of such petition, the Grantor may not use Cash
Collateral without the consent of the Beneficiary and/or an order of any
bankruptcy court pursuant to Section 363(b)(2) of the Bankruptcy Code.

 

(e)                                  It
is agreed and understood that the Beneficiary hereby reserves the right and
shall have the right, at any time and from time to time, without the consent or
joinder of any other party, to subordinate this Deed of Trust and the liens,
assignments and security interests created by this Deed of Trust to all or any
of the Leases regardless of the respective priority of any of such Leases and
this Deed of Trust.  Upon doing so, a
foreclosure of the Beneficiary’s liens, assignments and security interests under
this Deed of Trust shall be subject to and shall not operate to extinguish any
of said Leases as to which such subordination is operative.

 

8.                                       Maintenance
of the Trust Property.

 

The Grantor represents
and warrants that, to the best of its knowledge, the uses to which the Trust
Property is put are, as of the date hereof, in material compliance with all
zoning, land use and similar laws, rules and regulations (including, without
limitation, all parking requirements). 
The Grantor shall cause the Trust Property to be maintained in good
condition and repair and will not commit or suffer to be committed any waste of
the Trust Property.  The Improvements
and the Equipment shall not be removed, demolished or materially altered
(except for normal replacement of the Equipment), without the prior written consent
of the Beneficiary.  The Grantor shall
promptly comply with all existing and future governmental laws, orders,
ordinances, rules and regulations affecting the Trust Property, or any portion
thereof or the use thereof.  The Grantor
shall promptly repair, replace or rebuild any part of the Trust Property which
may be damaged or destroyed by fire or other property hazard or casualty
(including any fire or other property hazard or casualty for which insurance
was not obtained or obtainable) or which may be affected by any taking by any
public or quasi-public authority through eminent domain or otherwise, and shall
complete and pay for, within a reasonable time, any structure at any time in
the process of construction or repair on the Premises.  If such fire or other property hazard or
casualty shall be covered by the Policies, the Grantor’s obligation to repair,
replace or rebuild such portion of the Trust

 

9

 

Property shall be
contingent upon the Beneficiary paying the Grantor the proceeds of the
Policies, or such portion thereof as shall be sufficient to complete such
repair, replacement or rebuilding, whichever is less.  The Grantor will not, without obtaining the prior consent of the
Beneficiary, initiate, join in or consent to any private restrictive covenant,
zoning ordinance, or other public or private restrictions, limiting or
affecting the uses which may be made of the Trust Property or any part thereof.

 

9.                                       Environmental
Provisions.

 

(a)                                  For
the purposes of this Paragraph 9, the following terms shall have the following
meanings:  (i) the term “Governmental
Authority” shall mean the Federal government, or any state or other
political subdivision thereof, or any agency, court or body of the Federal government,
any state or other political subdivision thereof, exercising executive,
legislative, judicial, regulatory or administrative functions.  For purposes of this Paragraph 9 only, the
term “Trust Property” shall include the land comprising the Premises, (ii) the
“Environmental
Requirements” shall collectively mean all present and future laws,
statutes, common law, ordinances, rules, regulations, orders, codes, licenses,
permits, decrees, judgments, directives or the equivalent of or by any
Governmental Authority and relating to or addressing the protection of the
environment or human health, and (iii) the term “Hazardous Material” shall
mean any material or substance that, whether by its nature or use, is now or
hereafter defined or regulated as a hazardous waste, hazardous substance,
pollutant or contaminant under any Environmental Requirement, or which is
toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
mutagenic or otherwise hazardous or which is or contains petroleum, gasoline,
diesel fuel, another petroleum hydrocarbon product, asbestos,
asbestos-containing materials or polychlorinated biphenyls.

 

(b)                                 The
Grantor hereby represents and warrants to the Beneficiary to the best of its
knowledge that (i) except as specifically set forth in the Phase I
Environmental Assessment dated October 19, 1994 prepared by Terracon
Consultants Western, Inc. (heretofore reviewed by the Beneficiary or its
consultant), no Hazardous Material is currently located at, on, in, under or
about the Trust Property in violation of any Environmental Requirements, (ii)
no releasing, emitting, discharging, leaching, dumping, disposing or
transporting of any Hazardous Material from the Trust Property onto any other
property or from any other property onto or into the Trust Property has
occurred or is occurring in violation of any Environmental Requirement, (iii)
no notice of violation, non-compliance, liability or potential liability, lien,
complaint, suit, order or other notice with respect to the Trust Property is
presently outstanding under any Environmental Requirement, nor does the Grantor
have knowledge or reason to believe that any such notice will be received or is
being threatened, and (iv) the Trust Property and the operation thereof are in
full compliance with all Environmental Requirements.

 

(c)                                  The
Grantor shall comply, and shall cause all tenants or other occupants of the
Trust Property deriving their interests through the Grantor to comply, in all
respects with all Environmental Requirements, and will not generate, store,
handle, process, dispose of or otherwise use, and will not permit any tenant or
other occupant of the Trust Property to generate, store, handle, process,
dispose of or otherwise use, Hazardous Materials at, in, on, or about the Trust
Property in a manner that could lead or potentially lead to the imposition on
the Grantor, the Beneficiary or the Trust Property of any liability or lien of
any nature whatsoever under any Environmental Requirement.  The Grantor shall notify the Beneficiary
promptly in the event of any spill or other release of any Hazardous Material
at, in, on, under or about the Trust Property which is required to be reported
to a Governmental Authority under any Environmental Requirement, will promptly
forward to the Beneficiary copies of any notices received

 

10

 

by the Grantor relating
to alleged violations of any Environmental Requirement or any potential
liability under any Environmental Requirement and will promptly pay when due
any fine or assessment against the Beneficiary, the Grantor or the Trust
Property relating to any Environmental Requirement.  If at any time it is determined that the operation or use of the
Trust Property is in violation of any applicable Environmental Requirement or
that there are Hazardous Materials located at, in, on, under or about the Trust
Property which violate any applicable Environmental Requirement or that there
are Hazardous Materials located at, in, on, under or about the Trust Property
which, under any Environmental Requirement, require special handling in
collection, storage, treatment or disposal, or any form of cleanup or
corrective action, the Grantor shall, within thirty (30) days after receipt of
notice thereof from any Governmental Authority or from the Beneficiary, take,
at the Grantor’s sole cost and expense, such actions as may be necessary to
fully comply in all respects with all Environmental Requirements, provided,
however, that if such compliance cannot reasonably be completed within such
thirty (30) day period, the Grantor shall commence such necessary action within
such thirty (30) day period and shall thereafter diligently and expeditiously
proceed to fully comply in all respects and in a timely fashion with all Environmental
Requirements.

 

(d)                                 If
the Grantor fails to timely take, or to diligently and expeditiously proceed to
complete in a timely fashion (as determined by the Beneficiary in its sole and
absolute discretion), any such action described in clause (c) above, the
Beneficiary may, in its sole and absolute discretion, make advances or payments
toward the performance or satisfaction of the same, but shall in no event be
under any obligation to do so.  All sums
so advanced or paid by the Beneficiary (including, without limitation, counsel
and consultant fees and expenses, investigation and laboratory fees and
expenses, and fines or other penalty payments) and all sums advanced or paid in
connection with any judicial or administrative investigation or proceeding
relating thereto, will immediately, upon demand, become due and payable from
the Grantor and shall bear interest at the Default Rate from the date any such
sums are so advanced or paid by the Beneficiary until the date any such sums
are repaid by the Grantor to the Beneficiary. 
The Grantor will execute and deliver, promptly upon request, such
instruments as the Beneficiary may deem useful or necessary to permit the
Beneficiary to take any such action, and such additional notes and instruments,
as the Beneficiary may require to secure all sums so advanced or paid by the
Beneficiary.  If a lien is filed against
the Trust Property by any Governmental Authority resulting from the need to
expend or the actual expending of monies arising from an action or omission,
whether intentional or unintentional, of the Grantor or for which the Grantor
is responsible, resulting in the releasing, spilling, leaking, leaching,
pumping, emitting, pouring, emptying or dumping of any Hazardous Material into
the waters or onto land located within or without the state of Nevada where the
Trust Property is located, then the Grantor will, within thirty (30) days from
the date that the Grantor is first given notice that such lien has been placed
against the Trust Property (or within such shorter period of time as may be
specified by the Beneficiary if such Governmental Authority has commenced steps
to cause the Trust Property to be sold pursuant to such lien), either (i) pay
the claim and remove the lien, or (ii) furnish a cash deposit, bond, or such
other security with respect thereto as is satisfactory in all respects to the
Beneficiary and is sufficient to effect a complete discharge of such lien on
the Trust Property.

 

(e)                                  The
Beneficiary may, at its option, at any time or times, but not more than one
time per year, cause an environmental audit of the Trust Property or portions
thereof to be conducted to confirm the Grantor’s compliance with the provisions
of this Paragraph 9; provided, however, the Grantor shall not unreasonably withhold
its consent to the Beneficiary’s request to cause an environmental audit more
than one time per year.  In addition,
the Beneficiary may, at its option if the Beneficiary reasonably 

 

11

 

believes that a Hazardous
Material or other environmental condition violates or threatens to violate any
Environmental Requirement, cause an environmental audit of the Trust Property
or portions thereof to be conducted to confirm the Grantor’s compliance with
the provisions of this Paragraph 9.  The
Grantor shall cooperate in all reasonable ways with the Beneficiary in
connection with any such audit.  If any
audit discloses that a violation of or a liability under an Environmental
Requirement exists, or if such audit was required by the Beneficiary under the
second sentence of this subparagraph (e), or was prescribed by law, regulation
or governmental or quasi-governmental authority, the Grantor shall pay all
costs and expenses incurred in connection with such audit; otherwise, the costs
and expenses of such audit shall, notwithstanding anything to the contrary set
forth in this Paragraph 9, be paid by the Beneficiary.

 

(f)                                    If
this Deed of Trust is foreclosed, or if the Trust Property is sold pursuant to
the provisions of this Deed of Trust, or if the Grantor tenders a deed or
assignment in lieu of foreclosure or sale, the Grantor shall deliver the Trust
Property to the purchaser at foreclosure or sale or to the Beneficiary, its
nominee, or wholly-owned subsidiary, as the case may be, in a condition that
complies in all respects with all Environmental Requirements.

 

(g)                                 The
Grantor will defend, indemnify, and hold harmless the Beneficiary, its
employees, agents, officers, and directors, from and against any and all
claims, demands, penalties, causes of action, fines, liabilities, settlements,
damages, costs, or expenses of whatever kind or nature, known or unknown,
foreseen or unforeseen, contingent or otherwise (including, without limitation,
counsel and consultant fees and expenses, investigation and laboratory fees and
expenses, court costs, and litigation expenses) arising out of, or in any way
related to, (i) any breach by the Grantor of any of the provisions of this
Paragraph 9, (ii) the presence, disposal, spillage, discharge, emission,
leakage, release, or threatened release of any Hazardous Material which is at,
in, on, under, about, from or affecting the Trust Property, including, without
limitation, any damage or injury resulting from any such Hazardous Material to
or affecting the Trust Property or the soil, water, air, vegetation, buildings,
personal property, persons or animals located on the Trust Property or on any
other property or otherwise, (iii) any personal injury (including wrongful
death) or property damage (real or personal) arising out of or related to any
such Hazardous Material, (iv) any lawsuit brought or threatened, settlement
reached, or order or directive of or by any Governmental Authority relating to
such Hazardous Material, or (v) any violation of any Environmental Requirement
or any policy or requirement of the Beneficiary hereunder.  The aforesaid indemnification shall,
notwithstanding any exculpatory or other provision of any other document or
instrument now or hereafter executed and delivered in connection with the
Advances and secured by this Deed of Trust, constitute the personal recourse
undertakings, obligations and liabilities of the Grantor.  Notwithstanding the foregoing, the aforesaid
indemnification shall not be applicable with respect to any claim, demand,
penalty, cause of action, fine, liability, settlement, damage, cost or other
expense of any type whatsoever occasioned, arising and caused solely and
directly as the result of the gross negligence or willful misconduct of the Beneficiary,
its nominee or wholly-owned subsidiary or their respective employees or agents
subsequent to the date upon which the Beneficiary, its nominee or wholly-owned
subsidiary acquires possession of the Trust Property following foreclosure of
this Deed of Trust, a sale of the Trust Property pursuant to the provisions of
this Deed of Trust, acceptance of a deed or assignment in lieu of foreclosure
or sale or otherwise, or occasioned, arising and caused solely and directly as
the result of any act of any person (other than (i) an act of the Grantor or a
Guarantor or any subsidiary, employee, agent or affiliate of any of them, or an
act of the Beneficiary, its nominee or affiliate or their respective employees
or agents which does not constitute gross negligence or willful misconduct, or
(ii) an act of any governmental authority, including, without limitation, any
change in any Environmental Requirements)

 

12

 

and occurring subsequent
to the earlier to occur of (x) the date of payment to the Beneficiary in cash
of the Obligations, and (y) the date upon which the Beneficiary, its nominee or
affiliate acquires possession of the Trust Property by foreclosure of this Deed
of Trust, a sale of the Trust Property pursuant to the provisions of this Deed
of Trust, acceptance of a deed or assignment in lieu of foreclosure or sale, or
otherwise.

 

(h)                                 The
obligations and liabilities of the Grantor under this Paragraph 9 shall survive
and continue in full force and effect and shall not be terminated, discharged
or released, in whole or in part, irrespective of whether the Obligations have
been paid in full and irrespective of any foreclosure of this Deed of Trust,
sale of the Trust Property pursuant to the provisions of this Deed of Trust or
acceptance by the Beneficiary, its nominee or affiliate of a deed or assignment
in lieu of foreclosure or sale and irrespective of any other fact or
circumstance of any nature whatsoever.

 

10.                                 Estoppel
Certificates.

 

The Grantor, within fifteen
(15) days after request by the Beneficiary and at its expense, will furnish the
Beneficiary with a statement, duly acknowledged and certified, setting forth
the amount of the Obligations and the offsets or defenses thereto, if any.

 

11.                                 Transfer
or Encumbrance of the Trust Property.

 

(a)                                  No
part of the Trust Property nor any interest of any nature whatsoever therein
nor any interest of any nature whatsoever in the Grantor (whether stock,
equity, beneficial, profit, loss or otherwise) shall in any manner, directly or
indirectly, be further encumbered, sold, transferred or conveyed, or permitted
to be further encumbered, sold, transferred, assigned or conveyed without the
prior consent of the Beneficiary, which consent in any and all circumstances
may be withheld in the sole and absolute discretion of the Beneficiary.  The provisions of the foregoing sentence of
this Paragraph 11 shall apply to each and every such further encumbrance, sale,
transfer, assignment or conveyance, regardless of whether or not the
Beneficiary has consented to, or waived by its action or inaction its rights
hereunder with respect to, any such previous further encumbrance, sale,
transfer, assignment or conveyance, and irrespective of whether such further
encumbrance, sale, transfer, assignment or conveyance is voluntary, by reason
of operation of law or is otherwise made.

 

(b)                                 Anything
contained in this Paragraph 11 to the contrary notwithstanding, indirect
transfers of interests in the Grantor arising from transfers of interests in The
Smith & Wollensky Restaurant Group, Inc. shall not be a default hereunder
provided that such transfers do not constitute a Change in Control (as defined
in the Loan Agreement) in The Smith & Wollensky Restaurant Group, Inc.

 

12.                                 Notice.

 

Any notice, request,
demand, statement, authorization, approval or consent made hereunder shall be
in writing and shall be addressed, delivered and deemed delivered as provided
in the Loan Agreement.

 

13

 

13.                                 Sale
of Trust Property.

 

If this Deed of Trust is
foreclosed, the Trust Property, or any interest therein, may, at the discretion
of the Beneficiary, be sold in one or more parcels or in several interests or
portions and in any order or manner.

 

14.                                 Changes
in Laws Regarding Taxation.

 

In the event of the
passage after the date of this Deed of Trust of any law of the state of Nevada
deducting from the value of real property for the purpose of taxation any lien
or encumbrance thereon or changing in any way the laws for the taxation of
deeds of trust or mortgages or the obligations secured by deeds of trust or
mortgages for state or local purposes or the manner of the collection of any
such taxes, and imposing a tax, either directly or indirectly, on the Loan
Agreement, this Deed of Trust, the Note or the Obligations, the Grantor shall,
if permitted by law, pay any tax imposed as a result of any such law within the
statutory period or within twenty (20) days after demand by the Beneficiary,
whichever is less, provided, however, that if, in the opinion of the attorneys
for the Beneficiary, the Grantor is not permitted by law to pay such taxes, the
Beneficiary shall have the right, at its option, to declare the Obligations due
and payable on a date specified in a prior notice to the Grantor of not less
than thirty (30) days.

 

15.                                 No
Credits on Account of the Obligations.

 

The Grantor will not
claim or demand or be entitled to any credit or credits on account of the
Obligations for any part of the Taxes assessed against the Trust Property or
any part thereof and no deduction shall otherwise be made or claimed from the
taxable value of the Trust Property, or any part thereof, by reason of this
Deed of Trust or the Obligations.  If at
any time this Deed of Trust shall secure less than all of the principal amount
of the Obligations, it is expressly agreed that any repayment of any portion of
the Obligations shall not reduce the amount of the lien of this Deed of Trust
until the lien amount shall equal the principal amount of the Obligations
outstanding.

 

16.                                 Offsets,
Counterclaims and Defenses.

 

Any assignee of this Deed
of Trust, the Note and/or the Obligations shall take the same free and clear of
all offsets, counterclaims or defenses of any nature whatsoever which the
Grantor may have against any assignor of this Deed of Trust, the Note and the
Loan Agreement, and no such offset, counterclaim or defense shall be interposed
or asserted by the Grantor in any action or proceeding brought by any such
assignee upon this Deed of Trust, the Note or the Loan Agreement, and any such
right to interpose or assert any such offset, counterclaim or defense in any
such action or proceeding is hereby expressly waived by the Grantor.

 

17.                                 Other
Security for the Obligations.

 

The Grantor shall observe
and perform all of the terms, covenants and provisions contained in the Loan
Agreement, the Note and the other Loan Documents to which the Grantor is a
party.

 

14

 

18.                                 Documentary
Stamps.

 

If at any time the United
States of America, any state thereof, or any governmental subdivision of any
such state, shall require revenue or other stamps to be affixed to the Note or
this Deed of Trust, then except to the extent prohibited under the laws of the
state of Nevada, the Grantor will pay for the same, with interest and penalties
thereon, if any.

 

19.                                 Right
of Entry.

 

Upon prior notice, the
Beneficiary and its agents shall have the right to enter and inspect the Trust
Property at all reasonable times.

 

20.                                 Books
and Records.

 

In addition to the
covenant regarding financial reporting set forth in the Loan Agreement, the
Grantor will keep and maintain or will cause to be kept and maintained on a
fiscal year basis in accordance with generally accepted accounting practices
consistently applied, proper and accurate books, records and accounts
reflecting all of the financial affairs of the Grantor and all items of income
and expense in connection with the operation of the Trust Property or in
connection with any services, equipment or furnishings provided in connection
with the operation of the Trust Property, whether such income or expense be
realized by the Grantor or by any other person whatsoever excepting lessees
unrelated to and unaffiliated with the Grantor who have leased from the Grantor
portions of the Trust Property for the purpose of occupying the same.  The Beneficiary shall have the right from
time to time at all times during normal business hours to examine such books,
records and accounts at the office of the Grantor or other person maintaining
such books, records and accounts and to make copies or extracts thereof as the
Beneficiary shall desire.

 

21.                                 Performance
of Other Agreements.

 

The Grantor shall observe
and perform each and every term to be observed or performed by the Grantor
pursuant to the terms of any agreement or recorded instrument affecting or
pertaining to the Trust Property.

 

22.                                 Events
of Default.

 

The occurrence of any of
the following events (“Events of Default”) shall (except in the
case of clause (a) below where no such exercise of an option shall be necessary
to the extent the effect of an “Event of Default” thereunder is automatic under
the terms of the Loan Agreement itself), at the option of the Beneficiary, make
all amounts then remaining unpaid on the Obligations immediately due and
payable, all without further demand, presentment, notice or other requirements
of any kind, all of which are hereby expressly waived by the Grantor, and the
lien, encumbrance and security interest evidenced or created hereby shall be
subject to sale or foreclosure in any manner provided for herein or provided
for by law:

 

(a)                                  if
an “Event of Default” as defined therein shall occur under the Loan Agreement;

 

15

 

(b)                                 if
any Federal tax lien is filed against the Grantor which encumbers the Trust
Property and the same is not discharged of record within thirty (30) days after
the same is filed;

 

(c)                                  if
without the consent of the Beneficiary any Improvement or the Equipment (except
for the normal replacement of the Equipment) is removed, demolished or
materially altered, or if the Trust Property is not kept in good condition and
repair;

 

(d)                                 if
the Grantor shall fail to comply with any requirement or order or notice of
violation of law or ordinance issued by any governmental department claiming
jurisdiction over the Trust Property within three (3) months from the issuance
thereof, or the time period set forth therein, whichever is less;

 

(e)                                  if
the Policies are not kept in full force and effect, or if the Policies are not
delivered to the Beneficiary upon request;

 

(f)                                    if
the Grantor shall fail to pay the Beneficiary on demand for all Premiums and/or
Taxes paid by the Beneficiary pursuant to this Deed of Trust, together with any
late payment charge and interest thereon calculated at the Default Rate;

 

(g)                                 if,
except as expressly permitted under Paragraph 7 hereof, any Leases are made,
canceled or modified, or if any portion of the Rents is paid for a period of
more than one (1) month in advance or if any of the Rents are further assigned,
without the consent of the Beneficiary in each instance;

 

(h)                                 if
the Grantor ceases to occupy at least 75% of the rentable square feet at the
Premises for the conducting of the business operated thereon on the date of
this Deed of Trust;

 

(i)                                     if
the Trust Property shall become subject (i) to any tax lien by virtue of any
act or omission of the Grantor, other than a lien for local real estate taxes
and assessments not due and payable, or (ii) to any lis pendens, notice of
pendency, stop order, notice of intention to file mechanic’s or materialman’s
lien, mechanic’s or materialman’s lien or other lien of any nature whatsoever
and the same shall not either be discharged of record or in the alternative
insured over to the satisfaction of the Beneficiary by any title company
insuring the lien of this Deed of Trust within a period of the shorter of (i)
the time provided therefor under the Subject Lease and (ii) 45 days after the
same is filed or recorded, and irrespective of whether the same is superior or
subordinate in lien or other priority to the lien of this Deed of Trust and
irrespective of whether the same constitutes a perfected or inchoate lien or
encumbrance on the Trust Property or is only a matter of record or notice;

 

(j)                                     if
(i) the Grantor shall default in the observance or performance of any term,
covenant or condition of the Subject Lease on the part of the Grantor, as
lessee thereunder, to be observed or performed, unless any such observance or
performance shall have been waived or not required in writing by the lessor
under the Subject Lease, which default continues beyond notice and cure
periods, applicable thereto, if any, or (ii) any one or more events shall occur
which would or may cause the Subject Lease to terminate without notice or
action by the lessor thereunder or which would entitle the lessor under the
Subject Lease to terminate the Subject Lease and the term thereof by giving
notice to the

 

16

 

Grantor, as lessee
thereunder, or (iii) the leasehold estate created by the Subject Lease shall be
surrendered, in whole or in part, or (iv) the Subject Lease shall be terminated
or canceled for any reason or under any circumstance whatsoever, or (v) any of
the terms, covenants or conditions of the Subject Lease shall be modified,
changed, supplemented, altered or amended in any material manner without the
consent of the Beneficiary, or (vi) the Grantor shall, without the Beneficiary’s
prior written approval, elect to treat the Subject Lease as terminated under
section 365(h)(1) of the Bankruptcy Code (it being understood that any
such election made by the Grantor, as holder of the leasehold estate in the
Trust Property, without the Beneficiary’s prior written consent, in addition to
constituting an Event of Default, shall be void); or

 

(k)                                  if
the Grantor shall continue to be in default under any of the terms, covenants
or conditions of this Deed of Trust (other than as described in any of
Subparagraphs (a) through (j) of this Paragraph 22) for ten (10) days after
written notice from the Beneficiary in the case of any default which can be
cured by the payment of a sum of money or for thirty (30) days after written
notice from the Beneficiary in the case of any other default, provided that if
such default cannot reasonably be cured within such thirty (30) day period and
the Grantor shall have commenced to cure such default within such thirty (30)
day period and thereafter diligently and expeditiously proceeds to cure the
same, such thirty (30) day period shall be extended for so long as it shall
require the Grantor in the exercise of due diligence to cure such default, it
being agreed that no such extension shall be for a period in excess of ninety
(90) days.

 

23.                                 Remedies.

 

(a)                                  General.  Upon the occurrence and during the
continuance of any one or more Events of Default, the Beneficiary may, in
addition to any rights or remedies available to it hereunder or under the other
Loan Documents, but subject to any applicable provisions of the Loan Agreement
and to the extent permitted by applicable law, take such action personally or
by its agents or attorneys, with or without entry, and without notice of intent
to accelerate, notice of acceleration or other notice, demand, presentment or
protest (each and all of which are hereby expressly WAIVED), as it deems
necessary or advisable to protect and enforce the Beneficiary’s rights and
remedies against the Grantor and in and to the Trust Property, including,
without limitation, the actions described in this Paragraph 23, each of which
may be pursued concurrently or otherwise, at such time and in such order as the
Beneficiary may determine, in its sole discretion, without impairing or
otherwise affecting its other capitalized rights or remedies.

 

(b)                                 Acceleration;
Notice.  Time is of the essence with
respect to the Grantor’s obligations hereunder.  Upon the occurrence of any Event of Default, at the Beneficiary’s
option and in addition to any other remedy the Beneficiary may have under the
Loan Agreement, the Note, and the other Loan Documents, the Beneficiary may, at
its option, declare all sums secured by this Deed of Trust immediately due and
payable (except in the case of an Event of Default under Subparagraph 22(a)
above where no such exercise of an option shall be necessary to the extent the
effect of an “Event of Default” thereunder is automatic under the terms of the
Loan Agreement itself) and elect to have the Trust Property sold in the manner
provided herein.  In the event the
Beneficiary elects to sell the Trust Property, the Beneficiary may execute or
cause the Trustee to execute a written notice of default and of election to
cause the Trust Property to be sold to satisfy the obligations hereof, and the
Trustee shall file such notice for record in the office of the County Recorder
of the county wherein the Trust Property is located. 

 

17

 

Beneficiary shall also
deposit with the Trustee the Note and all documents evidencing expenditures
secured by this Deed of Trust.

 

(c)                                  Exercise
of Power of Sale.  Upon receipt of
such notice from the Beneficiary, the Trustee shall cause to be recorded,
published and delivered to the Grantor such Notice of Default and Election to
Sell as then required by Chapter 107 of the Nevada Revised Statutes (“NRS”),
or any successor statutes.  The Trustee
shall, without demand on the Grantor, after lapse of such time as may be
required by law and after recordation of such Notice of Default and Election to
Sell first give notice of the time and place of such sale, in the manner
provided by the laws of the State of Nevada for the sale of real property under
execution, and may from time to time postpone such sale by such advertisement
as it may deem reasonable, or without further advertisement, by proclamation
made to the persons assembled at the time and place previously appointed and
advertised for such sale, and on the day of sale so advertised, or to which
such sale may have been postponed, the Trustee may sell the Trust Property so
advertised, at public auction, at the time and place specified in the notice,
either in the county in which the Trust Property, or any part thereof, to be
sold, is situated, or at the principal office of the Trustee located in Clark
County, State of Nevada, in its discretion, to the highest cash bidder (subject
to the Beneficiary’s right to credit upon the amount of the bid made therefor
the amount payable to it).  The Trustee
shall execute and deliver to the purchaser a trustee’s deed conveying the Trust
Property so sold, but without any covenant of warranty, express or
implied.  The recitals in the trustee’s
deed of any matters or facts shall be conclusive proof of the truthfulness
thereof.  Any person, including the
Beneficiary, may bid at the sale, and Beneficiary shall have the right to
credit upon the amount of the bid made therefor the amount payable to it out of
the net proceeds of such sale.  All
other sales shall be, to the extent permitted by applicable law, on a cash
basis.  The Trustee shall apply the
proceeds of the sale to payment of (a) the costs and expenses of exercising the
power of sale and of the sale, including the payment of the Trustee’s, and both
the Trustee’s and the Beneficiary’s attorneys’, fees and costs; (b) the cost of
any evidence of title procured in connection with such sale; (c) all sums
expended under the terms hereof in conjunction with any default provision
hereunder, not then repaid, with accrued interest at the rate then provided for
in the Note; (d) all sums then secured by this Deed of Trust, including
interest and principal on the Note; and (e) the remainder, if any, to the
person or persons legally entitled thereto, or the Trustee, in the Trustee’s
discretion, may deposit the balance of such proceeds with the County Clerk of
the county wherein the Trust Property is located.

 

(d)                                 Surrender
of Possession.  The Grantor shall
surrender possession of the Trust Property to the purchaser immediately after
the sale of the Trust Property as provided in Subsection 23(c) above, in
the event such possession has not previously been surrendered by Grantor.

 

(e)                                  UCC
Remedies.

 

(i)                                     Notwithstanding
anything to the contrary in Subparagraphs 23(c) and (d) above, the Beneficiary,
with regard to all the UCC Collateral, shall have the right to exercise, from
time to time, any and all rights and remedies available to the Beneficiary, as
a secured party under the Nevada UCC or the N.Y. UCC (hereinafter defined), as
applicable, and any and all rights and remedies available to the Beneficiary
under any other applicable law.  Upon
written demand from the Beneficiary, the Grantor shall, at the Grantor’s
expense, assemble the UCC Collateral and make such available to the Beneficiary
at a reasonably convenient place designated by the Beneficiary.  The Beneficiary shall have the right to
enter upon any premises where the UCC Collateral or records pertaining to the
UCC Collateral may be and take possession of the UCC Collateral and records
relating to the UCC Collateral.

 

18

 

The Beneficiary may sell,
lease or otherwise dispose of any or all of the UCC Collateral and, after
deducting the reasonable costs and out of pocket expenses incurred by the Beneficiary,
including, without limitation, (a) reasonable attorneys’ fees and legal
expenses, (b) transportation and storage costs, (c) advertising of sale of the
UCC Collateral, (d) sale commissions, (e) sales tax, (f) costs for improving or
repairing the UCC Collateral, and (g) costs for preservation and protection of
the UCC Collateral, apply the remainder to pay, or to hold as a reserve
against, the Obligations.

 

(ii)                                  The
rights and remedies of the Beneficiary upon the occurrence of one or more
Events of Default (whether such rights and remedies are conferred by statute,
by rule of law, by this Deed of Trust, the Loan Documents or otherwise) may be
exercised by the Beneficiary, either alternatively, concurrently, or
consecutively in any order.  The
exercise by the Beneficiary or the Trustee at the express direction of the
Beneficiary of any one or more of such rights and remedies shall not be
construed to be an election of remedies nor waiver of any other rights and
remedies the Beneficiary might have unless, and limited to the extent that, the
Beneficiary shall elect or so waive by an instrument in writing delivered to
the Trustee.  Without limiting the
generality of the foregoing, to the extent that this Deed of Trust covers both
real property and personal property, the Beneficiary may, in the sole
discretion of the Beneficiary, either alternatively, concurrently or
consecutively in any order:

 

(1)                                  Proceed
as to the Trust Property in accordance with the Beneficiary’s rights and
remedies in respect to real property.

 

(2)                                  Proceed
as to the RP Collateral in accordance with the Beneficiary’s rights and
remedies in respect to real property and proceed as to the UCC Collateral in
accordance with Beneficiary’s rights and remedies in respect to the personal
property.

 

(iii)                               The
Beneficiary may, in the sole discretion of the Beneficiary, appoint the Trustee
as the agent of the Beneficiary for the purpose of disposition of the UCC
Collateral in accordance with applicable law.

 

(iv)                              If
the Beneficiary should elect to proceed as to the Trust Property in accordance
with Beneficiary’s rights and remedies in respect to real property:

 

(1)                                  All
the UCC Collateral may be sold, in the manner and at the time and place
provided in this Deed of Trust, in one lot, or in separate lots consisting of
any combination or combinations of the RP Collateral and the UCC Collateral, as
the Beneficiary may elect, in the sole discretion of the Beneficiary.

 

(2)                                  The
Grantor acknowledges and agrees that a disposition of the UCC Collateral in
accordance with the Beneficiary’s rights and remedies in respect to real
property, as hereinabove provided, is a commercially reasonable disposition of
the UCC Collateral.

 

(v)                                 If
the Beneficiary should elect to proceed as to the UCC Collateral that is
subject to the Nevada UCC pursuant to this Deed of Trust, in accordance with
the Beneficiary’s rights and remedies in respect thereto, the Beneficiary shall
have all the rights and remedies conferred on a secured party by NRS 104.9601
to NRS 104.9628, both inclusive.

 

19

 

(f)                                    Foreclosure
as a Mortgage.  If an Event of
Default occurs hereunder, the Beneficiary shall have the option to foreclose
this Deed of Trust in the manner provided by law for the foreclosure of mortgages
on real property and the Beneficiary shall be entitled to recover in such
proceedings all costs and expenses incident thereto, including reasonable
attorneys’ fees and costs in such amounts as shall be fixed by the court.  Any such foreclosure may be a complete or
partial foreclosure.

 

(g)                                 Receiver.  If an Event of Default occurs, the
Beneficiary, as a matter of right and without regard to, or the necessity to
prove or disprove, the value of the Trust Property or the adequacy of the
security for the sums secured by this Deed of Trust or the solvency or
insolvency of the Grantor or any other person liable for the payment of such
sums, apply to any court having jurisdiction to appoint a receiver or receivers
of the Trust Property and the Grantor hereby irrevocably consents to such
appointment.  Any such receiver or
receivers shall have all the usual powers and duties of a receiver and shall
continue as such and exercise all such powers until completion of the sale of
the Trust Property or the foreclosure proceeding, unless the receivership is
sooner terminated.

 

(h)                                 Specific
Performance.  The Beneficiary or the
Trustee may institute an action, suit or proceeding in equity for the specific
performance of any of the provisions contained herein or in any of the other
Loan Documents.

 

(i)                                     Grantor’s
Right to Possession.  To the extent
permitted by applicable law, the Beneficiary may enter upon the Premises, and
exclude the Grantor and its agents and servants wholly therefrom, without
liability for trespass, damages or otherwise, and take possession of all books,
records and accounts relating thereto and all other Trust Property, and the
Grantor agrees to surrender possession of the Trust Property and of such books,
records and accounts to the Beneficiary on demand after the happening of any
Event of Default and for so long as an Event of Default shall continue; and
having and holding the same may use, operate, manage, preserve, control and
otherwise deal therewith and conduct the business thereof, either personally or
by its superintendents, managers, agents, servants, attorneys or receivers,
without interference from the Grantor; and upon each such entry and from time
to time thereafter may, at the expense of the Grantor and the Trust Property,
without interference by the Grantor and as the Beneficiary may deem advisable,
(i) insure or reinsure the Premises, (ii) make all necessary or proper repairs,
renewals, replacements, alterations, additions, betterments and improvements
thereto and thereon and (iii) in every such case in connection with the
foregoing have the right to exercise all rights and powers of the Grantor with
respect to the Trust Property, either in the Grantor’s name or otherwise.  For the purpose of carrying out the
provisions of this Paragraph 23(i), the Grantor hereby constitutes and appoints
the Beneficiary the true and lawful attorney-in-fact of the Grantor, which
appointment is irrevocable and shall be deemed to be coupled with an interest,
in the Grantor’s name and stead, to do and perform, from time to time, any and
all actions necessary and incidental to such purpose and does by these presents
ratify and confirm any and all actions of said attorney-in-fact in and with
respect to the Trust Property.

 

(j)                                     No
Remedy Exclusive.  No remedy conferred
upon or reserved to the Beneficiary under this Deed of Trust shall be exclusive
of any other available remedy or remedies, but each and every such remedy shall
be cumulative and shall be in addition to every other remedy given under this
Deed of Trust or any other Loan Document, or now or hereafter existing at law
or in equity or by statute.  No delay or
failure to exercise any right or power accruing upon any Event of Default shall
impair any such right or power or shall be construed to be a waiver thereof,
but any such right or power may be exercised from time to time and as often as
may be deemed expedient.

 

20

 

(k)                                  Rights
Upon Default.  In making the
Advances, the Beneficiary has relied upon the rights available to the
Beneficiary under this Deed of Trust upon the occurrence of any Event of
Default, including, without limitation, the rights to accelerate the payment of
any and all amounts secured by this Deed of Trust, to sell the Trust Property
encumbered by this Deed of Trust pursuant to the power of sale granted
hereunder, the right to foreclose this Deed of Trust as a mortgage, and the
right to have a receiver appointed.  In
addition to any other damages that might be recoverable by the Beneficiary under
the terms of this Deed of Trust, the Grantor shall be liable for any damages
incurred by the Beneficiary because the Beneficiary is, for any reason, denied
the opportunity to exercise the Beneficiary’s rights upon the occurrence of an
Event of Default, including, without limitation, such damages as are occasioned
by depreciation of the Trust Property, loss of use of the Trust Property by the
Beneficiary, and all opportunity costs incurred through the loss of use of any
funds as would have been received by the Beneficiary through exercise of the
power of sale or foreclosure, or the appointment of a receiver.

 

(l)                                     Incorporation
of Certain Nevada Covenants.  The
following covenants, Nos. 1, 3, 4 (Default Rate), 6, 7 (reasonable), 8 and 9 of
NRS 107.030, where not in conflict with the express provisions of any Loan
Document, are hereby adopted and made a part of this Deed of Trust.  Upon any Event of Default by the Grantor
hereunder, the Beneficiary may (a) declare all sums secured immediately due and
payable without demand or notice or (b) have a receiver appointed as a matter
of right without regard to the sufficiency of said property or any other
security or guaranty and without any showing as required by NRS 107.100.  All remedies provided in this Deed of Trust
are distinct and cumulative to any other right or remedy under this Deed of
Trust or afforded by law or equity and may be exercised concurrently,
independently or successively.  The sale
of said property conducted pursuant to Covenants Nos. 6, 7 and 8 of NRS 107.030
may be conducted either as to the whole of said property or in separate parcels
and in such order as the Trustee may determine.

 

24.                                 Right
to Cure Defaults.

 

If default in the
performance of any of the covenants of the Grantor herein occurs, the
Beneficiary may, at its discretion, remedy the same and for such purpose shall
have the right to enter upon the Trust Property or any portion thereof without
thereby becoming liable to the Grantor or any person in possession thereof
holding under the Grantor.  If the
Beneficiary shall remedy such a default or appear in, defend, or bring any
action or proceeding to protect its interest in the Trust Property or to
foreclose this Deed of Trust or collect the Obligations, the costs and expenses
thereof (including reasonable attorneys’ fees to the extent permitted by law),
with interest as provided in this Paragraph 24, shall be paid by the Grantor to
the Beneficiary upon demand.  All such
costs and expenses incurred by the Beneficiary in remedying such default or in
appearing in, defending, or bringing any such action or proceeding shall be
paid by the Grantor to the Beneficiary upon demand, with interest (calculated
for the actual number of days elapsed on the basis of a 365-366 day year) at a
rate equal to two percentage points above the then applicable rate under the
Note (the “Default  Rate”); provided, however, that the Default
Rate shall in no event exceed the maximum interest rate which the Grantor may
by law pay, for the period after notice from the Beneficiary that such costs or
expenses were incurred to the date of payment to the Beneficiary.  In each such event, such costs, expenses and
amounts, together with interest thereon at the Default Rate, shall be added to
the indebtedness secured by this Deed of Trust and shall be secured by this
Deed of Trust.

 

21

 

25.                                 Non-Waiver.

 

The failure of the
Beneficiary to insist upon strict performance of any term of this Deed of Trust
shall not be deemed to be a waiver of any term of this Deed of Trust.  The Grantor shall not be relieved of the
Grantor’s obligation to pay the Obligations at the time and in the manner
provided therefor in the Note, this Deed of Trust or any other Loan Documents
by reason of (a) failure of the Beneficiary to comply with any request of the
Grantor to take any action to foreclose this Deed of Trust or otherwise enforce
any of the provisions hereof or of any other deed of trust, instrument or
document evidencing, securing or guaranteeing payment of the Obligations or any
portion thereof, (b) the release, regardless of consideration, of the whole or
any part of the Trust Property or any other security for the Obligations, or
(c) any agreement or stipulation between the Beneficiary and any subsequent
owner or owners of the Trust Property or other person extending the time of
payment or otherwise modifying or supplementing the terms of the Note or this
Deed of Trust or any other deed of trust, instrument or document evidencing,
securing or guaranteeing payment of the Obligations or any portion thereof,
without first having obtained the consent of the Grantor, and in the latter
event, the Grantor shall continue to be obligated to pay the Obligations at the
times and in the manner provided in the Note and this Deed of Trust, as so
extended, modified and supplemented, unless expressly released and discharged
from such obligation by the Beneficiary in writing.  Regardless of consideration, and without the necessity for any
notice to or consent by the holder of any subordinate lien, encumbrance, right,
title or interest in or to the Trust Property, the Beneficiary may release any
person at any time liable for the payment of the Obligations or any portion
thereof or any part of the security held for the Obligations and may extend the
time of payment or otherwise modify the terms of the Note, this Deed of Trust,
the Loan Agreement or any other Loan Document including, without limitation, a
modification of the interest rate, without impairing or affecting this Deed of
Trust or the lien or the priority of this Deed of Trust, as so extended and
modified, as security for the Obligations over any such subordinate lien,
encumbrance, right, title or interest. 
The Beneficiary may resort for the payment of the Obligations to any
other security held by the Beneficiary in such order and manner as the
Beneficiary, in its discretion, may elect. 
The Beneficiary may take action to recover the Obligations, or any
portion thereof, or to enforce any covenant hereof without prejudice to the
right of the Beneficiary thereafter to realize on the collateral covered by
this Deed of Trust.  The Beneficiary
shall not be limited exclusively to the rights and remedies herein stated but
shall be entitled to every additional right and remedy now or hereafter
afforded by law.  The rights of the
Beneficiary under this Deed of Trust shall be separate, distinct and cumulative
and none shall be given effect to the exclusion of the others.  No act of the Beneficiary shall be construed
as an election to proceed under any one provision herein to the exclusion of
any other provision.

 

26.                                 Liability.

 

If the Grantor consists
of more than one person, the obligations and liabilities of each such person
hereunder shall be joint and several.

 

27.                                 Construction/Severability.

 

The proceeds of the
Advances secured hereby were disbursed from the state of New York, which state
the parties agree has a substantial relationship to the underlying transaction
embodied hereby, and in all respects, including, without limiting the
generality of the foregoing, matters of construction, validity and
performance.  This Deed of Trust and the
obligations arising hereunder shall be

 

22

 

governed by, and
construed in accordance with, the laws of the state of New York applicable to
contracts made and performed in New York State and any applicable laws of the
United States of America, without regard to conflict of law rules and
principles.  Notwithstanding such
provisions, however, (i) matters respecting title to the RP Collateral and the
creation, perfection, priority and foreclosure (including the nature of any
interest in property that results therefrom) of the liens on the RP Collateral
shall be governed by, and construed and enforced in accordance with, the
internal law of the state of Nevada without giving effect to the conflicts-of
law rules and principals of such state; (ii) the Grantor agrees that whether or
not deficiency judgments are available under the laws of the state of Nevada,
after a foreclosure (judicial or nonjudicial) of the Trust Property, or any
portion thereof, or any other realization thereon by the Beneficiary, the
Beneficiary shall have the right to seek such a deficiency judgment against the
Grantor in other states or foreign jurisdictions; and (iii) the Grantor agrees
that, to the extent the Beneficiary obtains a deficiency judgment in any other
state or foreign jurisdiction, then such party shall have the right to enforce
such judgment in the state of Nevada, as well as in other states or foreign
jurisdictions.

 

28.                                 Security
Agreement and Fixture Filing.

 

(a)  This Deed of Trust constitutes both a real
property mortgage or deed of trust and a “security agreement,” within the
meaning of the Nevada UCC and the Uniform Commercial Code of the State of New
York (the “N.Y. UCC”), and the Trust Property includes both real and
personal property and all other rights and interest, whether tangible or
intangible in nature, of the Grantor in the Trust Property.  The Grantor by executing and delivering this
Deed of Trust has granted to the Beneficiary, as security for the Obligations,
a security interest in the UCC Collateral. 
If an Event of Default shall occur hereunder, the Beneficiary, in
addition to any other rights and remedies which it may have, shall have and may
exercise immediately and without demand, any and all rights and remedies
granted to a secured party upon default under the Nevada UCC, including,
without limiting the generality of the foregoing, the rights set forth under
Subparagraph 23(e) above.  Any notice of
sale, disposition or other intended action by the Beneficiary with respect to
the UCC Collateral sent to the Grantor in accordance with the provisions of
this Deed of Trust at least seven (7) days prior to the date of any such sale,
disposition or other action, shall constitute reasonable notice to the Grantor,
and the method of sale or disposition or other intended action set forth or
specified in such notice shall conclusively be deemed to be commercially
reasonable within the meaning of the Nevada UCC or the N.Y. UCC, as applicable,
unless objected to in writing by the Grantor within five (5) days after receipt
by the Grantor of such notice.  The
proceeds of any sale or disposition of the UCC Collateral, or any part thereof,
may be applied by the Beneficiary to the payment of the Obligations in such
order, priority and proportions as the Beneficiary in its discretion shall deem
proper.  If any change shall occur in
the Grantor’s name, the Grantor shall promptly cause to be filed at its own
expense, new financing statements as required under the Nevada UCC or the N.Y.
UCC, as applicable, to replace those on file in favor of the Beneficiary.  With respect to UCC Collateral, conflicts
between this Paragraph 28 and/or Paragraph 23 above, on the one hand, and any
provision of the Security Agreement (as defined in the Loan Agreement), on the
other, shall be resolved in favor of the Security Agreement.

 

(b)  Certain of the Trust Property described in paragraphs
(a) through (l) of the granting clause of this Deed of Trust is or will become
“fixtures” (as that term is defined in the Nevada UCC ) on the Premises, and
this Deed of Trust, upon being filed for record with the Nevada Secretary of
State and in the real estate records of Clark County, Nevada, shall be
effective and operate also as a financing

 

23

 

statement filed as a
fixture filing in accordance with the applicable provisions of the Nevada UCC
upon such of the Trust Property that is or may become fixtures.  In connection with this fixture filing, the
names and addresses of the Grantor, as the debtor, and the Beneficiary, as the
secured party, are as set forth in the introductory paragraph of the first page
of this Deed of Trust.  The foregoing
address of the Beneficiary, as the secured party, is also the address from
which any interested party may obtain information concerning the security
interest.  The property subject to this
fixture filing is the Trust Property as described in paragraphs (a) through (l)
of the granting clauses set forth above. 
Portions of the property subject to this fixture filing as identified in
the first sentence of this Paragraph 28(b) are or are to become fixtures
related to the Premises described in Exhibit A to this Deed of Trust.

 

29.                                 Further
Acts, etc.

 

The Grantor will, at the
cost of the Grantor, and without expense to the Beneficiary, do, execute,
acknowledge and deliver all and every such further acts, deeds, conveyances,
deeds of trust, mortgages, assignments, notices of assignments, transfers and
assurances as the Beneficiary shall, from time to time, demand for the better
assuring, conveying, assigning, transferring and confirming unto the
Beneficiary the property and rights conveyed, assigned and transferred
hereunder or intended now or hereafter so to be, or which the Grantor may be or
may hereafter become bound to convey, assign or transfer to the Beneficiary, or
for carrying out the intention or facilitating the performance of the terms of
this Deed of Trust or for filing, registering or recording this Deed of Trust
and, on demand, will execute, deliver and/or file, and hereby authorizes the
Beneficiary to execute and/or file in the name of the Grantor to the extent the
Beneficiary may lawfully do so, one or more financing statements, chattel
mortgages or comparable security instruments, to evidence more effectively the
interests in the Trust Property granted to the Beneficiary hereunder.

 

30.                                 Headings,
etc.

 

The headings and captions
of various paragraphs of this Deed of Trust are for convenience of reference
only and are not to be construed as defined or limiting, in any way, the scope
or intent of the provisions hereof.

 

31.                                 Filing
of Instrument, etc.

 

The Grantor forthwith
upon the execution and delivery of this Deed of Trust and thereafter, from time
to time, will cause this Deed of Trust, and any security instrument creating a
lien or evidencing the lien hereof upon the Trust Property and each instrument
of further assurance to be filed, registered or recorded in such manner and in
such places as may be required by any present or future law in order to publish
notice of and fully to protect, preserve and perfect the lien hereof upon, and
the interest of the Beneficiary in, the Trust Property.  The Grantor will pay all filing,
registration and recording fees, and all expenses incident to the preparation,
execution and acknowledgment of this Deed of Trust, any deed of trust
supplemental hereto, any security instrument with respect to the Trust
Property, and any instrument of further assurance, and all Federal, state,
county and municipal taxes, duties, imposts, assessments and charges arising
out of or in connection with the execution and delivery of this Deed of Trust,
any deed of trust supplemental hereto, any security instrument with respect to
the Trust Property or any instrument of further assurance.  The Grantor shall hold harmless and
indemnify the Beneficiary, its

 

24

 

successors and assigns,
against any liability incurred by reason of the imposition of any tax on the
making and recording of this Deed of Trust.

 

32.                                 Usury
Laws.

 

The Grantor and the
Beneficiary stipulate and agree that it is their common and overriding intent
to contract in strict compliance with applicable usury laws.  In furtherance thereof, none of the terms of
this Deed of Trust shall ever be construed to create a contract to pay, as
consideration for the use, forbearance or detention of money, interest at a
rate in excess of the maximum rate permitted by applicable laws.  The Grantor shall never be liable for
interest in excess of the maximum rate permitted by applicable laws.  If, for any reason whatever, such interest
paid or received during the full term of the applicable indebtedness produces a
rate which exceeds the maximum rate permitted by applicable laws, the
Beneficiary shall credit against the principal of such indebtedness (or, if
such indebtedness shall have been paid in full, shall refund to the payor of
such interest) such portion of said interest as shall be necessary to cause the
interest paid to produce a rate equal to the maximum rate permitted by
applicable laws.  All sums paid or agreed
to be paid to the Beneficiary for the use, forbearance or detention of money
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of the applicable
indebtedness.  The provisions of this
Paragraph 32 shall control all agreements, whether now or hereafter existing
and whether written or oral, between the Grantor and the Beneficiary.

 

33.                                 Sole
Discretion of The Beneficiary.

 

Except as may otherwise
be expressly provided to the contrary, wherever pursuant to this Deed of Trust,
the Beneficiary exercises any right given to it to consent or not consent, or
to approve or disapprove, or any arrangement or term is to be satisfactory to
the Beneficiary, the decision of the Beneficiary to consent or not consent, or
to approve or disapprove, or to decide that arrangements or terms are
satisfactory or not satisfactory, shall be in the sole and absolute discretion
of the Beneficiary and shall be final and conclusive.

 

34                                    Reasonableness.

 

If at any time the
Grantor believes that the Beneficiary has not acted reasonably in granting or
withholding any approval or consent under this Deed of Trust as to which
approval or consent either (a) the Beneficiary has expressly agreed to act
reasonably, or (b) absent such agreement, applicable law would nonetheless
require the Beneficiary to act reasonably, then the Grantor’s sole remedy shall
be to seek injunctive relief or specific performance, and no action for
monetary damages or punitive damages shall in any event or under any
circumstance be maintained by the Grantor against the Beneficiary.

 

35.                                 Recovery
of Sums Required To Be Paid.

 

The Beneficiary shall
have the right from time to time to take action to recover any sum or sums
which constitute a part of the Obligations as the same become due, without regard
to whether or not the balance of the Obligations shall be due, and without
prejudice to the right of the Beneficiary

 

25

 

thereafter to bring an
action of foreclosure, or any other action, for a default or defaults by the
Grantor existing at the time such earlier action was commenced.

 

36.                                 Actions
and Proceedings.

 

The Beneficiary shall
have the right to appear in and defend any action or proceeding brought with
respect to the Trust Property and to bring any action or proceeding, in the
name and on behalf of the Grantor, which the Beneficiary, in its discretion,
determines should be brought to protect the Beneficiary’s interest in the Trust
Property.

 

37.                                 Inapplicable
Provisions.

 

If any term, covenant or
condition of this Deed of Trust shall be held to be invalid, illegal or
unenforceable in any respect, this Deed of Trust shall be construed without
such provision.

 

38.                                 Duplicate
Originals.

 

This Deed of Trust may be
executed in any number of duplicate originals and each such duplicate original
shall be deemed to constitute but one and the same Instrument.

 

39.                                 Certain
Definitions.

 

Unless the context
clearly indicates a contrary intent or unless otherwise specifically provided
in this Deed of Trust, words used in this Deed of Trust shall be used
interchangeably in singular or plural form; the word “Grantor” shall mean each
Grantor and any subsequent owner or owners of the Trust Property or any part
thereof or interest therein; the word “Loan Documents” shall have the meaning
set forth in the Loan Agreement; the word “person” shall include an individual,
corporation, partnership, trust, unincorporated association, government,
governmental authority, or other entity; the words “Trust Property” shall include
any portion of the Trust Property or interest therein; and the word “Obligations”
shall mean all sums secured by this Deed of Trust; the word “default”
shall mean the occurrence of any default by the Grantor or other person in the
observance or performance of any of the terms, covenants or provisions of this
Deed of Trust on the part of the Grantor or such other person to be observed or
performed without regard to whether such default constitutes or would
constitute upon notice or lapse of time, or both, an Event of Default under
this Deed of Trust; and words such as “herein” or “hereunder” shall be deemed
to refer to this Deed of Trust as a whole and not merely to the sentence or
paragraph in which they appear. 
References to “the lien of this Deed of Trust” or words to
that effect are also references to this Deed of Trust.  Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

 

40.                                 Waiver
of Notice.

 

The Grantor shall not be
entitled to any notices of any nature whatsoever from the Beneficiary except
with respect to matters for which this Deed of Trust specifically and expressly
provides for the giving of notice by the Beneficiary to the Grantor, and the
Grantor hereby expressly waives the right to receive any notice from the
Beneficiary with respect to any matter for which this Deed

 

26

 

of Trust does not
specifically and expressly provide for the giving of notice by the Beneficiary
to the Grantor.

 

41.                                 No
Oral Change.

 

This Deed of Trust may
only be modified, amended or changed by an agreement in writing signed by the
Grantor, the Beneficiary and, to the extent required by applicable law, the
Trustee, and may only be released, discharged or satisfied of record by an
agreement in writing signed by the Beneficiary and, to the extent required by
applicable law, the Trustee.  No waiver
of any term, covenant or provision of this Deed of Trust shall be effective
unless given in writing by the Beneficiary and if so given by the Beneficiary
shall only be effective in the specific instance in which given.  No course of dealing between the parties, no
usage of trade and no extrinsic or parol evidence may be used to supplement or
modify the terms of this Deed of Trust. 
The Grantor acknowledges that the Note, this Deed of Trust, the Loan
Agreement and the other Loan Documents set forth the entire agreement and
understanding of the Grantor and the Beneficiary with respect to the
Obligations secured hereby and that no oral or other agreements, understanding,
representation or warranties exist with respect to the Obligations secured
hereby other than those set forth in the Note, this Deed of Trust, the Loan
Agreement and the other Loan Documents.

 

42.                                 Absolute
and Unconditional Obligation.

 

The Grantor acknowledges
that the Grantor’s obligation to pay the Obligations in accordance with the
Note, this Deed of Trust and the other Loan Documents is and shall at all times
continue to be absolute and unconditional in all respects, and shall at all
times be valid and enforceable irrespective of any other agreements or
circumstances of any nature whatsoever which might otherwise constitute a
defense to the payment of the Obligations in accordance with the Note, this
Deed of Trust or the other Loan Documents, and the Grantor absolutely,
unconditionally and irrevocably waives any and all right to assert any defense,
setoff, counterclaim or crossclaim of any nature whatsoever with respect to the
payment of the Obligations in accordance with the provisions of the Note, this
Deed of Trust and the other Loan Documents or otherwise with respect to the
Obligations secured hereby in any action or proceeding brought to collect the
Obligations, or any portion thereof, or to enforce, the trust or foreclose and
realize upon the Beneficiary’s interest in the Trust Property created by this
Deed of Trust.

 

43.                               Waiver
of Trial by Jury.

 

The Grantor hereby irrevocably and
unconditionally waives, and the Beneficiary by its acceptance of the Note
irrevocably and unconditionally waives, any and all rights to trial by jury in
any action, suit or counterclaim arising in connection with, out of or otherwise
relating to this Deed of Trust, the Note or the other Loan Documents.

 

44.                                 Waiver
of Statutory Rights.

 

The Grantor shall not and
will not apply for or avail itself of any appraisement, valuation, stay,
extension or exemption laws, or any so-called “Moratorium Laws,” now
existing or hereafter enacted, in order to prevent or hinder the enforcement or
foreclosure of this Deed of Trust, but hereby waives the benefit of such laws
to the full extent that the Grantor may do so under applicable law.  The

 

27

 

Grantor for itself and
all who may claim through or under it waives any and all right to have the
property and estates comprising the Trust Property marshaled upon any
foreclosure of the lien of this Deed of Trust and agrees that the Trust
Property may be sold as an entirety or in separate parcels and in such order as
may be determined by the Beneficiary, or by any court in which any action or
suit hereunder may be pending. The Grantor hereby waives for itself and all who
may claim through or under it, and to the full extent the Grantor may do so
under applicable law, any and all rights of redemption from sale under any
order or decree of foreclosure of this Deed of Trust or granted under any
statute now existing or hereafter enacted.

 

45.                                 Brokerage.

 

The Grantor covenants and
agrees that no brokerage commission or other fee, commission or compensation is
to be paid by the Beneficiary on account of the Advances or any other
obligations secured by this Deed of Trust and the Grantor agrees to indemnify
the Beneficiary against any claims for any of the same.

 

46.                                 Indemnity.

 

Anything in this Deed of
Trust, the Note, the Loan Agreement or the other Loan Documents to the contrary
notwithstanding, the Grantor shall indemnify and hold the Beneficiary harmless
and defend the Beneficiary at the Grantor’s sole cost and expense against any
loss or liability, cost or expense (including, without limitation, title
insurance premiums and charges and reasonable attorneys’ fees and disbursements
of the Beneficiary’s counsel, whether in-house staff, retained firms or
otherwise), and all claims, actions, procedures and suits arising out of or in
connection with (a) any ongoing matters arising out of the deed of trust
transaction contemplated hereby, this Deed of Trust, and/or the Trust Property,
including, but not limited to, all costs of reappraisal of the Trust Property
or any part thereof, whether required by law, regulation, the internal policies
of the Beneficiary or any governmental or quasi-governmental authority, (b) any
amendment to, or restructuring of this Deed of Trust and  (c) any and all lawful action that may be
taken by the Beneficiary in connection with the enforcement of the provisions
of this Deed of Trust, whether or not suit is filed in connection with the
same, or in connection with the Grantor, any guarantor of the Advances and/or
any partner, member, joint venturer or shareholder thereof becoming a party to
a voluntary or involuntary federal or state bankruptcy, insolvency or similar
proceeding.  The foregoing indemnity
shall not apply to matters caused by the gross negligence, willful misconduct
or bad faith of the Beneficiary.  All
sums expended by the Beneficiary shall be payable within five (5) days after
written demand and, until reimbursed by the Grantor pursuant hereto, shall be
deemed additional principal of the Obligations and secured hereby and shall
bear interest at the Default Rate.

 

47.                                 Relationship.

 

The relationship of the
Beneficiary to the Grantor hereunder is strictly and solely that of lender and
obligor and grantor and beneficiary, and nothing contained in the Note, this
Deed of Trust or any other Loan Document is intended to create, or shall in any
event or under any circumstance be construed as creating, a partnership, joint
venture, tenancy-in-common, joint tenancy or other relationship of any nature
whatsoever between the Beneficiary and the Grantor other than as set forth in
this Paragraph 47.

 

28

 

48.                                 Loan
Agreement.

 

The Grantor shall fully
and faithfully observe and perform all of the terms, covenants, conditions,
provisions and agreements contained in the Loan Agreement.

 

49.                                 Prior
Leasehold Deed of Trust.

 

The lien of this Deed of
Trust is subject and subordinate to the lien of (i) that certain Leasehold Deed
of Trust dated August 23, 2002 made by the Grantor to the Trustee for the
benefit of the Beneficiary and recorded on August 23, 2002 in the Official
Records of Clark County, Nevada (the “Recorder’s Office”) as Instrument No.
00054, as amended by that certain Agreement of Modification of Leasehold Deed
of Trust dated October 25, 2002 and recorded in the Recorder’s Office on
October 25, 2002 as Instrument No. 00231, and by an Agreement of Second
Modification of Leasehold Deed of Trust dated December 23, 2002 and
recorded in the Recorder’s Office on December 23, 2002 as Instrument No.
00764, and (ii) that certain Leasehold Deed of Trust dated December 23,
2002, made by the Grantor to the Trustee for the benefit of the Beneficiary and
recorded on December 23, 2002 in the Recorder’s Office as Instrument
No.00765.

 

50.                                 Intentionally
Omitted.

 

51.                                 The
Subject Lease.

 

(a)                                  The
Grantor shall: (i) pay all rents, additional rents and other sums required to
be paid by the Grantor as lessee under and pursuant to the provisions of the
Subject Lease, (ii) diligently perform and observe all of the terms, covenants
and conditions of the Subject Lease on the part of the Grantor, as lessee
thereunder, to be performed and observed, unless such performance or observance
shall be waived or not required in writing by the lessor under the Subject
Lease, to the end that all things shall be done which are necessary to keep
unimpaired the rights of the Grantor, as lessee, under the Subject Lease, (iii)
promptly notify the Beneficiary in writing of any default by the Grantor or
lessor under the Subject Lease in the performance or observance of any of the
terms, covenants or conditions on the part of, respectively, the Grantor or
such lessor to be performed or observed under the Subject Lease, (iv) promptly
notify the Beneficiary of the giving of any notice by the lessor under the
Subject Lease to the Grantor (other than notices customarily sent on a regular
basis) and of any notice noting or claiming any default by the Grantor in the
performance or observance of any of the terms, covenants or conditions of the
Subject Lease on the part of the Grantor, as lessee thereunder, to be performed
or observed, and deliver to the Beneficiary a true copy of each such notice,
(v) promptly notify the Beneficiary in writing of any request made by either
party to the Subject Lease for arbitration proceedings pursuant to the Subject
Lease and of the institution of any arbitration proceedings, as well as of all
proceedings thereunder, and promptly deliver to the Beneficiary a copy of the
determination of the arbitrators in each such arbitration proceeding, it being
acknowledged and agreed that the Beneficiary shall have the right to participate
in such arbitration proceedings in association with the Grantor or on its own
behalf as an interested party, (vi) furnish to the Beneficiary, within fifteen
(15) days after demand, proof of payment of all items which are required to be
paid by the Grantor pursuant to the Subject Lease, and (vii) not consent to the
subordination of the Subject Lease to any deed of trust with respect to the fee
interest of the lessor under the Subject Lease in the Trust Property except
such as may be agreed to by the Beneficiary.

 

29

 

(b)                                 The
Grantor, shall not, without the prior written consent of the Beneficiary,
surrender the leasehold estate created by the Subject Lease or terminate or
cancel the Subject Lease or modify, change, supplement, alter or amend the
Subject Lease, in any material respect, either orally or in writing, and the
Grantor hereby assigns to the Beneficiary, as further security for the payment
of the Obligations and for the performance and observance of the terms,
covenants and conditions of this Deed of Trust, all of the rights, privileges
and prerogatives of the Grantor, as lessee under the Subject Lease, to
surrender the leasehold estate created by the Subject Lease or to terminate,
cancel, modify, change, supplement, alter or amend the Subject Lease in any
material respect, and any such surrender of the leasehold estate created by the
Subject Lease or termination, cancellation, modification, change, supplement,
alteration or amendment of the Subject Lease without the prior written consent
of the Beneficiary shall be voidable at the Beneficiary’s option,  and of no force and effect.

 

(c)                                  Supplementing
the provisions of Paragraph 51(b), it is understood and agreed that the Grantor
shall not, without the Beneficiary’s prior written consent, elect to treat the
Subject Lease as terminated under Section 365(h)(1) of the Bankruptcy
Code.  Any such election made without
the Beneficiary’s prior written consent shall be void.  The Grantor hereby unconditionally assigns,
transfers and set over to the Beneficiary all of the Grantor’s claims and
rights to the payment of damages arising under the Bankruptcy Code from any
rejection by the lessor under the Subject Lease.  The Beneficiary shall have the right to proceed in its own name
or in the name of the Grantor in respect of any claim, suit, action or
proceeding relating to the rejection of the Subject Lease, including, without
limitation, the right to file and prosecute, to the exclusion of the Grantor,
any proofs of claim, complaints, motions, applications, notices and other
documents, in any case in respect of such lessor under the Bankruptcy
Code.  This assignment constitutes a
present, irrevocable and unconditional assignment of the foregoing claims,
rights and remedies, and shall continue in effect until all of the Obligations
secured by this Deed of Trust shall have been satisfied and discharged in
full.  Any amounts received by the
Beneficiary as damages arising out of the rejection of the Subject Lease as
aforesaid shall be applied first to all costs and expenses of the Beneficiary
(including, without limitation, attorneys’ fees) incurred in connection with
the exercise of any of its rights or remedies under this Paragraph 51 and then
shall be applied against the Obligations in such order, priority and proportion
as the Beneficiary shall determine.  If
any action, motion or notice shall be commenced or filed in respect of the
Grantor, as lessee under the Subject Lease, or all or any portion of the Trust
Property in connection with any case under the Bankruptcy Code, the Grantor
shall give the Beneficiary prompt written notice thereof and the Beneficiary
shall have the option, to the exclusion of the Grantor, exercisable upon notice
from the Beneficiary to the Grantor, to conduct and control any such litigation
with counsel of the Beneficiary’s choice. 
The Beneficiary may proceed in its own name or in the name of the
Grantor in connection with any such litigation, and the Grantor agrees to
execute any and all powers, authorizations, consents and other documents
required by the Beneficiary in connection therewith.  The Grantor shall, upon demand, pay to the Beneficiary all costs
and expenses (including, without limitation, attorneys’ fees) paid or incurred
by the Beneficiary in connection with the prosecution or conduct of any such
proceedings.  Any such costs or expenses
not paid by the Grantor as aforesaid shall be secured by this Deed of Trust and
shall be added to the Obligations.  The
Grantor shall not commence any action, suit, proceeding or case, or file any
application or make any motion, in respect of the Subject Lease in any such
case under the Bankruptcy Code without the prior written consent of the
Beneficiary.  The Grantor shall,
immediately after obtaining knowledge thereof, notify the Beneficiary and its
counsel, by telecopy to the numbers set forth in the Loan Agreement, of any
filing by or against the lessor under the Subject Lease of a petition under the
Bankruptcy Code.  The Grantor shall
thereafter

 

30

 

forthwith give written
notice of such filing to the Beneficiary, setting forth the date of such
filing, the court in which the petition was filed and the relief sought
therein.  The Grantor shall promptly deliver
to the Beneficiary, following receipt, any and all notices, summonses,
pleadings, applications and other documents received by the Grantor in
connection with any such petition and any proceedings relating thereto.

 

(d)                                 If
the Grantor shall default in the performance or observance of any term,
covenant or condition of the Subject Lease on the part of the Grantor, as
lessee thereunder, to be performed or observed, then, without limiting the
generality of the other provisions of this Deed of Trust and without waiving or
releasing the Grantor from any of its obligations hereunder, the Beneficiary
shall have the right, subject to the last sentence of this Paragraph 51(d), but
shall be under no obligation, to pay any sums and to perform any act or take any
action as may be appropriate to cause all of the terms, covenants and
conditions of the Subject Lease on the part of the Grantor, as lessee
thereunder, to be performed or observed to be promptly performed or observed on
behalf of the Grantor, to the end that the rights of the Grantor in, to and
under the Subject Lease shall be kept unimpaired and free from default.  If the Beneficiary shall make any payment or
perform any act or take action in accordance with the preceding sentence, the
Beneficiary will notify the Grantor of the making of any such payment, the
performance of any such act, or the taking of any such action.  All sums so paid by the Beneficiary and all
costs and expenses incurred by the Beneficiary in connection with the
performance of any such act shall be paid by the Grantor to the Beneficiary
upon demand with interest at the Default Rate from the date of the payment or
incurrence thereof, and the same shall be deemed to be secured by this Deed of
Trust and shall be a lien on the Trust Property prior to any right, title to,
interest in or claim upon the Trust Property attaching subsequent to the lien
of this Deed of Trust.  In any such
event, subject to the rights, if any, of sublessees and other occupants under
the Leases, the Beneficiary and any person designated by the Beneficiary shall
have, and are hereby granted, the right to enter upon the Trust Property at any
time and from time to time for the purpose of taking any such action.  If the lessor under the Subject Lease shall
deliver to the Beneficiary a copy of any notice of default sent by said lessor
to the Grantor, as lessee under the Subject Lease, or otherwise notify the
Beneficiary of such a default, any such notice shall provide full protection to
the Beneficiary for any action taken or omitted to be taken by the Beneficiary,
in good faith, in reliance thereon and, in any case, irrespective of whether or
not an Event of Default shall have occurred hereunder.

 

(e)                                  The
Grantor hereby irrevocably appoints the Beneficiary its true and lawful
attorney-in-fact in its name or otherwise to do any and all acts and to execute
any and all documents which in the reasonable opinion of the Beneficiary may be
necessary or desirable to preserve any rights of the Grantor in, to or under
the Subject Lease, or any occupancy lease, license, franchise or concession,
including, without limitation, the right (but not the obligation) to cure any
defaults of the Grantor as lessee under the Subject Lease, preserve any rights
of the Grantor whatsoever in respect of any part of the Trust Property or to
execute an extension or renewal of the Subject Lease as hereinafter set
forth.  Subject to the Grantor’s rights
to require the same under the Subject Lease, the Grantor shall, within five (5)
days of request by the Beneficiary, request from the lessor under the Subject
Lease such certificates of estoppel with respect to compliance by the Grantor
with the terms of the Subject Lease as may be requested by the Beneficiary and
shall thereafter use reasonable efforts to obtain such certificates of estoppel
from such lessor.

 

31

 

(f)                                    The
generality of the provisions of this Paragraph 51 relating to the Subject Lease
shall not be limited by other provisions of this Deed of Trust or any other
agreement between the Beneficiary and the Grantor, setting forth particular
obligations of the Grantor which are also required of the Grantor as tenant
under the Subject Lease.

 

(g)                                 If
the Grantor shall become the fee owner of the Premises and/or the Improvements,
the Trust Property shall be deemed to include all right, title and interest of
the Grantor (as fee owner) in and to the Premises, the Improvements and the
remaining Trust Property, and this Deed of Trust shall be spread accordingly.

 

(h)                                 If
a deed of trust shall be placed against the fee interest in the Premises and
for the Improvements of the lessor under the Subject Lease, the Grantor shall
not subordinate the Subject Lease to the lien of any such fee deed of trust.

 

52.                                 New
Subject Lease with The Beneficiary.

 

If the Subject Lease
shall be terminated prior to the scheduled expiration of its term due to a
default or event of default thereunder, and if pursuant to any provision of the
Subject Lease or otherwise pursuant to an agreement between the Beneficiary and
such lessor, the Beneficiary or its designee shall acquire from the lessor
under the Subject Lease a new lease of the Premises and the Improvements, the
Grantor shall have no right, title or interest in or to such new lease or the
leasehold estate created thereby, or renewal privileges therein contained.

 

53.                                 No
Merger of Fee and Leasehold Estates.

 

So long as any portion of
the Obligations shall remain unpaid, and unless the Beneficiary shall otherwise
consent, the fee title to the Premises and the Improvements and the leasehold
estate therein created pursuant to the provisions of the Subject Lease shall
not merge, but shall always be kept separate and distinct, notwithstanding the
union of such estates in the Grantor or in any other person, by purchase,
operation of law or otherwise.  If the
Beneficiary shall acquire the fee title to the Premises and the Improvements
and the leasehold estate therein created pursuant to the provisions of the
Subject Lease, by foreclosure of this Deed of Trust or otherwise, such estates
shall not merge as a result of such acquisition and shall remain separate and
distinct for all purposes after such acquisition unless and until the
Beneficiary shall elect to merge such estates.

 

54.                                 The
Trustee.

 

(a)                                  Successor
Trustee.  The Trustee may resign by
the giving of notice of such resignation in writing addressed to the
Beneficiary, or may be removed at any time, with or without cause, by an
instrument in writing duly executed by the Beneficiary.  The Beneficiary shall concurrently give
notice of any such resignation or removal to the Grantor.  In case of the death, resignation or removal
of the Trustee, a successor Trustee may be appointed by the Beneficiary without
other formality than an appointment and designation in writing unless otherwise
required by applicable law.  Such
appointment and designation will be full evidence of the right and authority to
make the same and of all facts therein recited, and upon the making of any such
appointment and designation, this Deed of Trust will vest in the named
successor the Trustee all the right, title and interest of the Trustee in the
Trust Property, and said

 

32

 

successor will thereupon
succeed to all the rights, powers, privileges, immunities and duties hereby
conferred upon the Trustee.  All
references herein to the Trustee will be deemed to refer to the Trustee or
trustees from time to time acting hereunder.

 

(b)                                 Trustee’s
Powers.  At any time, or from time
to time without liability therefor and without notice, upon written request of
the Beneficiary and presentation of this Deed of Trust for endorsement, and
without affecting the personal liability of any person for payment of the
indebtedness secured hereby or the effect of this Deed of Trust upon the
remainder of the Trust Property, the Trustee may (i) reconvey any part of the
Trust Property, (ii) consent in writing to the making of any map or plat
thereof, (iii) join in granting any easement thereon, or (iv) join in any
extension agreement or any agreement subordinating the lien or charge hereof.

 

(c)                                  Request
for Notice.  The Grantor hereby
requests that a copy of any notice of default and a copy of any notice of sale
hereunder be mailed to the Grantor at the address set forth in the heading of
this Deed of Trust.

 

(d)                                 Full
Reconveyance by the Trustee.  To the
extent that the Trustee’s signature  is
necessary on any full reconveyance of this Deed of Trust then, upon written
request of the Beneficiary stating that all sums secured hereby have been paid,
and upon surrender of this Deed of Trust to the Trustee for cancellation and
retention (or disposal in accordance with applicable law), and upon payment by
the Grantor of the Trustee’s fees, the Trustee shall reconvey to the Grantor,
or to the person or persons legally entitled thereto, without warranty, any
portion of the Trust Property then held hereunder.  The recitals in such reconveyance of any matters or facts shall
be conclusive proof of the truthfulness thereof.  The grantee in any reconveyance may be described as the person or
persons legally entitled thereto.

 

(e)                                  Indemnity.  The Grantor shall indemnify the Trustee
against all claims, actions, liabilities, judgments, costs, attorneys’ fees or
other charges of whatsoever kind or nature made against or incurred by the
Trustee, and arising out of the performance by the Trustee of the duties of the
Trustee hereunder (except those arising from the Trustee’s grossly negligent
acts).  The foregoing indemnity shall
not terminate upon release, foreclosure or other termination of this Deed of
Trust.

 

(f)                                    The
Beneficiary Action in Lieu of The Trustee. 
Notwithstanding anything contained in this Paragraph 54 or elsewhere in
this Deed of Trust to the contrary, the Beneficiary may take any actions (other
than the exercise of the power of sale) which the Trustee is authorized to take
in all cases where trustees are not required by custom, practice or law to take
such actions on behalf of a beneficiary under a deed of trust.

 

55.                                 NRS
106.300-400.  This Deed of Trust
secures future advances under the Loan Agreement.  The maximum principal amount secured hereunder at any time is
$3,000,000.  This Deed of Trust is
intended to be governed by NRS 106.300-400. 
As set forth in the Loan Agreement, the Beneficiary reserves the right
to not make any further Advances upon receipt of a notice of termination from
the Grantor contemplated by said statute.

 

33

 

IN WITNESS WHEREOF,
the Grantor has duly executed this Deed of Trust the day and year first above
written.

 

	
   

  	
  S&W OF LAS VEGAS,
  L.L.C.

  
	
   

  	
   

  	
  By:  The Smith & Wollensky Restaurant

  Group, Inc., Sole Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan M. Mandel

  	
   

  
	
   

  	
   

  	
  Name: Alan M. Mandel

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  

 

On the 29th day of
January in the year 2004 before me, the undersigned, a Notary Public in
and for said State, personally appeared Alan M. Mandel, personally known to me
or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his capacity, and that by his signature on the
instrument, the individual, or the person upon behalf of which the individual
acted, executed the instrument.

 

 

	
   

  	
  /s/ Maria A. Chang

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
  Maria A. Chang

  	
   

  
	
   

  	
  Notarized

  	
   

  

 

 

EXHIBIT A

 

Legal Description

 

All that real property
situated in the County of Clark, State of Nevada, bounded and described as
follows:

 

The South 120 feet of the
West Half (W 1/2) of the Northwest Quarter (NW 1/4) of the Southwest Quarter
(SW 1/4);

 

AND

 

The North 10 feet of the
West One-Half (W 1/2) of the Southwest Quarter (SW 1/4) of the Southwest
Quarter (SW 1/4) of Section 21, Township 21 South, Range 61 East, M.D.B.
& M.

 

EXCEPTING THEREFROM  all State and County roads and highways.

 

 

EXHIBIT A-1

 

(Description of Subject Lease)

 

Lease With An Option to
Purchase, dated February 9, 1998, as modified by a First Amendment to
Lease Agreement, dated May 8, 1998 and by a Second Amendment to Lease Agreement
dated April 29, 2003; a memorandum of which was recorded pursuant to an
instrument entitled Memorandum of Lease with an Option to Purchase recorded on
February 12, 1998 in Book 980212 as Instrument No. 00979 in the official
records of Clark County, Nevada and also recorded on February 17, 1998 in
Book 980217 as Instrument No. 00838.

 

 

Assessor’s Parcel No.
162-21-301-014

 

 

S&W OF LAS
VEGAS, L.L.C., Grantor

 

TO FIRST AMERICAN
TITLE COMPANY OF NEVADA, INC., Trustee

 

FOR THE BENEFIT OF

 

MORGAN STANLEY
DEAN WITTER

COMMERCIAL FINANCIAL SERVICES, INC., Beneficiary

 

 

LEASEHOLD DEED OF
TRUST

( NEVADA )

 

 

	
  Dated:

  	
  As of January 30,
  2004

  
	
   

  	
   

  
	
  Location:

  	
  3767 Las Vegas
  Boulevard South

  
	
   

  	
  Las Vegas, Clark
  County, Nevada

  
	
   

  	
   

  
	
   

  	
   

  
	
  RECORD AND RETURN TO:

  
	
   

  	
   

  
	
  Esanu Katsky Korins
  & Siger, LLP

  
	
  605 Third Avenue

  
	
  New York, New York
  10158

  
	
  Attention:

  	
  Stephen D. Brodie, Esq.Exhibit
10.81

 

ABSOLUTE ASSIGNMENT OF LEASES AND
RENTS

 

THIS ASSIGNMENT made as
of the 30th day of January, 2004, between S&W OF LAS VEGAS, L.L.C., a
Delaware limited liability company, having an office at c/o The Smith &
Wollensky Restaurant Group, Inc., 1114 First Avenue, New York, New York 10021
(the “Assignor”)
and MORGAN STANLEY DEAN WITTER COMMERCIAL FINANCIAL SERVICES, INC., a Delaware
corporation, having an office at 825 Third Avenue, New York, New York 10022
(the “Assignee”).

 

W  I  T
N  E  S  S  E  T  H:

 

THAT the Assignor for
good and valuable consideration, receipt and sufficiency whereof is hereby
acknowledged, hereby absolutely and unconditionally grants, transfers and
assigns to the Assignee the entire landlord’s right, title and interest in and
to all existing leases, tenancies and occupancy agreements (other than the
Ground Lease, as hereinafter defined) covering or affecting all or any part of
that certain lot or piece or parcel of land and building(s), more particularly
described in Exhibit A annexed hereto and made a part hereof (the said
premises, together with the buildings and improvements now or hereafter erected
thereon, being hereinafter collectively referred to as the “Premises”).  This assignment is absolute in nature and
not an assignment for additional security only.  The term “Ground Lease” shall mean the current ground
lease pursuant to which the Assignor presently occupies space at the Premises,
which is the “Subject Lease” under the Deed of Trust (defined below).

 

The foregoing assignment
is made TOGETHER WITH all leases, tenancies and occupancy agreements hereafter
made (all present and future leases, tenancies and occupancy agreements (other
than the Ground Lease) are hereinafter collectively referred to as the “Leases”);
this assignment of present and future Leases being effective without any
further or supplemental assignment of any nature whatsoever;

 

TOGETHER WITH all
modifications, extensions and guaranties of all Leases;

 

TOGETHER WITH all Rents
(as hereinafter defined).

 

THIS Assignment is made
in connection with a Line of Credit Agreement, of even date herewith, among the
Assignor, the Assignee and The Smith & Wollensky Restaurant Group, Inc.
(the “Loan
Agreement”).  Pursuant to the
Loan Agreement, the Assignee has committed to make Advances (as defined in the
Loan Agreement) of up to $2,000,000, on a revolving basis, to the Assignor,
subject to and in accordance with the terms of the Loan Agreement.  The obligation of the Assignor to repay the
Advances and any other amounts owed under the Loan

 

1

 

Agreement is evidenced by
a certain Promissory Note and secured by, among other things, a certain
Leasehold Deed of Trust encumbering the Premises (the “Deed of Trust”), both of even
date herewith (the Loan Agreement, the Deed of Trust and the said Note (which
terms include all modifications, extensions, increases, renewals and guaranties
thereof now or hereafter made) and the other documents and instruments executed
and delivered in connection therewith, all as modified, extended, renewed and
guaranteed, as applicable, are hereinafter collectively referred to as the “Loan
Documents”).  All sums
payable by the Assignor pursuant to the Loan Documents and all other sums with
interest thereon becoming due and payable to the Assignee under the provisions
of this Assignment or the other Loan Documents are hereinafter collectively
referred to as the “Debt”).

 

THE ASSIGNOR WARRANTS AND
REPRESENTS to the Assignee, in order to induce the Assignee to enter into the
Loan Agreement and to accept this Assignment and knowing that the Assignee will
rely hereon, that: (i) the Assignor is the sole owner of the entire landlord’s
interest in the Leases; (ii) the Leases are valid and enforceable and in full
force and effect and have not been altered, modified or amended in any manner
whatsoever except as herein set forth; (iii) no rent reserved in the Leases has
been assigned, pledged or in any manner transferred or hypothecated, except
pursuant to (x) that certain Absolute Assignment of Leases and Rents dated
August 23, 2002 made by the Assignor to the Assignee and recorded on
August 23, 2002 in the Official Records of Clark County, Nevada as
Instrument No. 00055, (y) that certain Absolute Assignment of Leases and Rents,
dated December 23, 2002, made by the Assignor to the Assignee and recorded
on December 23, 2002 in the Official Records of Clark County, Nevada as
Instrument No. 00766, and (z) this Assignment; and (iv) no rent for any period
subsequent to the date of this Assignment has been collected in advance of the
time when the same became due under the terms of the Leases.

 

THE ASSIGNOR COVENANTS
WITH THE ASSIGNEE to observe and perform all the obligations imposed upon the
landlord under the Leases and not to do or permit to be done anything to impair
the interests granted to the Assignee hereunder; to promptly send to the
Assignee copies of all notices of default which the Assignor shall send or
receive under the Leases; to enforce the performance or observance of the
provisions thereof by the tenants thereunder; not to collect any of the rents,
income and profits arising from the Leases and/or the Premises (the “Rents”)
except as herein below set forth; not to subordinate any of the Leases to any
deed of trust (other than the Deed of Trust and any other deed of trust made
for the benefit of the Assignee) or other encumbrance or permit, consent, or
agree to such subordination without the prior written consent of the Assignee;
not to alter, modify or change the terms of any of the Leases nor give any
consent to exercise any option required or permitted by such terms without the
prior written consent of the Assignee, nor cancel or terminate any of the
Leases or accept a surrender thereof, nor convey or transfer, nor suffer or
permit a conveyance or transfer of, the Premises, or of any interest therein,
so as to effect directly or indirectly, approximately or remotely, a merger of
the estates and rights of, or a termination or diminution of the obligations of
the tenant thereunder; not to alter, modify or change the terms of any guaranty
of any of the

 

2

 

Leases nor cancel or
terminate such guaranty, without the prior written consent of the Assignee; not
to consent to any assignment of, or further subletting under, any of the
Leases, without the prior written consent of the Assignee; except as expressly
provided in Paragraph 7 of the Deed of Trust, not make, or suffer to be made,
any Lease of all or any portion of the Premises, nor otherwise let all or any
portion of the Premises, without the prior written consent of the Assignee; at
the Assignee’s request, to execute any documentation confirming the assignment
and transfer to the Assignee of any and all subsequent Leases upon all or any
part of the Premises, and to execute and deliver at the request of the Assignee
all other further assurances, confirmations and assignments in the Premises as
the Assignee shall, from time to time, reasonably require in connection herewith.

 

THIS ASSIGNMENT IS MADE
ON THE FOLLOWING TERMS, COVENANTS AND CONDITIONS:

 

1.                                       So
long as there shall exist no default under any of the Loan Documents (an “Event of
Default”), nor any default by the Assignor in the performance of any
obligation contained herein and/or in any of the Leases on the part of the
Assignor to be performed or to cause to be performed, the Assignee waives the
right to enter the Premises for the purpose of collecting the Rents and to let
the Premises or any part thereof, and the Assignor may continue to collect the
Rents at the time of, but not more than one (1) month prior to, the date
provided for the payment thereof, and to retain, use and enjoy the same and to
let the Premises or any part thereof, all subject to the provisions hereof and
of the Loan Documents.

 

2.                                       Upon,
or at any time after, the occurrence of any Event of Default, or of any default
with respect to any obligation contained herein and/or in any of the Leases on
the part of the Assignor to be performed or to cause to be performed, the
Assignee, without in any way waiving such default or Event of Default or
releasing the Assignor from any obligation hereunder, at its option, without
notice and without regard to the adequacy of the indebtedness secured by the
Deed of Trust, and irrespective of whether the Assignee shall have commenced a
foreclosure of the Deed of Trust, may revoke the right of the Assignor to let
all or any portion of the Premises and collect the Rents and may, either in
person or by agent, with or without bringing any action or proceeding, or by a
receiver appointed by a court, take possession of the Premises and have, hold,
manage, lease and operate the same on such terms and for such period of time as
the Assignee may in its sole discretion deem proper and either with or without
taking possession of the Premises in its own name: (a) make any payment and/or
perform any act which the Assignor has failed to make or perform, in such
manner and to such extent as the Assignee may deem necessary to protect the
interests granted to the Assignee hereunder, or otherwise, including without
limitation, the right to appear in and defend any action or proceeding
purporting to affect the interests granted to the Assignee hereunder, or the
rights or powers of the Assignee; (b) let the Premises or any portion thereof
in such manner and for such Rents as the Assignee shall determine in its sole
and absolute discretion; and/or (c) demand, sue for, or otherwise collect and
receive from all persons and entities (including the Assignor, as provided

 

3

 

in the Deed of Trust) all
Rents, including those past due and unpaid, with full power to make from time
to time all alterations, renovations, repairs or replacements thereto or thereof
as may seem proper to the Assignee and to apply the Rents to the payment of:
(i) all expenses of managing the Premises, including, without limitation, the
salaries, fees and wages of a managing agent and such other employees as the
Assignee may deem necessary or desirable, (ii) all taxes, charges, claims,
assessments, water rents, sewer rents, and any other liens, and premiums for
all insurance which the Assignee may deem necessary or desirable, and the cost
of all alterations, renovations, repairs, or replacements, and all expenses
incidental to taking and retaining possession of the Premises, and (iii) all or
any portion of the Debt, together with (iv) all costs and attorneys’ fees, in
such order of priority as to any of the items mentioned in this clause 2(c), as
the Assignee, in its sole discretion, may determine, any statute, law, custom
or use to the contrary notwithstanding. 
The Assignee shall give to the Assignor notice of its revocation,
pursuant to this Paragraph 2, of the right to let and collect the Rents within
a reasonable time thereafter (except that no such notice shall be necessary if
revocation results from a “Event of Default” under the Loan Agreement with
respect to which acceleration of debt thereunder is automatic).  The exercise by the Assignee of any rights
or powers under this Paragraph 2, including, without limitation, the collection
of the Rents and the application thereof as herein provided, shall not be
considered a waiver by the Assignee of any default by the Assignor under any of
the Loan Documents or the Leases or this Assignment, any statute, law, custom
or use to the contrary notwithstanding.

 

3.                                       The
Assignee shall not be liable for any loss sustained by the Assignor resulting
from the Assignee’s failure to let the Premises after default or from any other
act or omission of the Assignee in managing the Premises after default, unless
such loss is caused by the gross negligence, willful misconduct or bad faith of
the Assignee.  Nor shall the Assignee be
obligated to perform or discharge, nor does the Assignee hereby undertake to
perform or discharge, any obligation, duty or liability under the Leases or
under or by reason of this Assignment, and the Assignor shall, and does hereby
agree, to indemnify the Assignee for, and to hold the Assignee harmless from,
any and all liability, loss or damage which may or might be incurred under any
of the Leases or under or by reason of this Assignment and from any and all
claims and demands whatsoever which may be asserted against the Assignee by
reason of any alleged obligations and undertakings on its part to perform or
discharge any of the terms, covenants or agreements contained in any of the
Leases, unless resulting from the willful misconduct, gross negligence or bad
faith of the Assignee.  Should the
Assignee incur any such liability under any of the Leases or under or by reason
of this Assignment or in defense of any such claims or demands, the amount
thereof, including costs, expenses and attorneys’ fees shall be secured by the
Deed of Trust, and the Assignor shall reimburse the Assignee therefor within
five (5) days after written demand and, upon the failure of the Assignor so to
do within such five (5) day period, the Assignee may, at its option, declare
all sums secured by the Deed of Trust immediately due and payable.  It is further understood that this
Assignment shall not operate to place responsibility for the control, care,
management or repair of the Premises upon the Assignee, nor for the carrying
out of any of the terms and conditions of any of the Leases; nor shall it
operate to make the

 

4

 

Assignee responsible or
liable for any waste committed on the Premises by the tenants or any other
parties, nor for any dangerous or defective condition of the Premises, nor for
any negligence in the management, upkeep, repair or control of the Premises
resulting in loss, injury or death to any tenant, licensee, employee or
stranger, unless resulting from the willful misconduct, gross negligence or bad
faith of the Assignee.

 

4.                                       Upon
payment in full by the Assignor of the Debt, this Assignment shall become and
be void and of no effect, but the affidavit, certificate, letter or statement
of any officer, agent or attorney of the Assignee showing any part of the Debt
to remain unpaid shall be and constitute presumptive evidence of the validity,
effectiveness and continuing force of this Assignment and any person may, and
is hereby authorized to, rely thereon; provided, however, that the full reconveyance
of the Deed of Trust by the Assignee shall conclusively terminate this
Assignment.  The Assignor hereby
authorizes and directs the tenants named in the Leases or any other tenants or
future tenants or occupants of all or any portion of the Premises, upon receipt
from the Assignee of written notice to the effect that the Assignee is then the
beneficiary of the Deed of Trust and the indebtedness secured thereby and that
a default exists thereunder or under this Assignment, to pay over to the Assignee
(or as the Assignee may direct) all rents, income and profits arising or
accruing under the Leases or from the Premises and to continue so to do until
otherwise notified by the Assignee.

 

5.                                       The
Assignee may take or release any security for the payment of the Debt, may
release any party primarily or secondarily liable therefor and may apply any
security held by it to the satisfaction of the Debt without prejudice to any of
its rights under this Assignment.

 

6.                                       Anything
in this Assignment or in any of the other Loan Documents to the contrary
notwithstanding, the Assignor shall indemnify and hold the Assignee harmless
and defend the Assignee at the Assignor’s sole cost and expense against any
loss or liability, cost or expense (including, without limitation, reasonable
attorneys’ fees and disbursements of the Assignee’s counsel, whether in-house
staff, retained firms or otherwise), and all claims, actions, procedures and
suits arising out of or in connection with (i) any ongoing matters arising out
of the transaction contemplated hereby, the Debt, this Assignment, any other
Loan Document or the Leases, including, but not limited to, all costs of
reappraisal of the Leases, whether required by law, regulation, the Assignee or
any governmental or quasi-governmental authority, (ii) any amendment to, or
restructuring of, the Debt and this Assignment, any of the other Loan Document
or the Leases, and (iii) any and all lawful action that may be taken by the
Assignee in connection with the enforcement of the provisions of this
Assignment, the other Loan Documents or the Leases, whether or not suit is
filed in connection with the same, or in connection with the Assignor, any
guarantor of the Debt or any tenant and/or any partner, joint venturer or
shareholder thereof becoming a party to a voluntary or involuntary federal or
state bankruptcy, insolvency or similar proceeding.  The foregoing indemnity shall not apply to matters resulting from
the gross negligence, willful misconduct or bad faith of the Assignee.  All sums expended by the Assignee shall be
payable within five (5) days after written demand and,

 

5

 

until reimbursed by the
Assignor pursuant hereto, shall be deemed additional principal of the Debt and
secured by this Assignment, and shall bear interest at the Default Rate (as
defined in the Deed of Trust).  The
obligations of the Assignor under this paragraph shall, notwithstanding any
exculpatory or other provisions of any nature whatsoever set forth in this Assignment,
or any of the other Loan Documents, constitute the personal recourse
undertakings, obligations and liabilities of the Assignor.

 

7.                                       Nothing
herein contained, and no act done or omitted by the Assignee pursuant to the
powers and rights granted to it hereunder, shall be deemed to be a waiver by
the Assignee of its rights and remedies under the Deed of Trust or any of the
other Loan Documents, and this Assignment is made and accepted without
prejudice to any of the rights and remedies possessed by the Assignee under the
terms thereof.  The rights of the
Assignee to collect the Debt, and to enforce any security therefor held by it,
may be exercised by the Assignee either prior to, simultaneously with, or
subsequent to any action taken by it hereunder.  The Assignor hereby absolutely, unconditionally and irrevocably
waives any and all right to assert any setoff, counterclaim or crossclaim of
any nature whatsoever with respect to the obligations of the Assignor under
this Assignment, the other Loan Documents or otherwise with respect to the
matters covered by the Loan Agreement in any action or proceeding brought by
the Assignee to collect same, or any portion thereof, or to enforce, foreclose
and realize upon the lien and security interest created by the Deed of Trust or
any other Loan Document securing repayment of same, in whole or in part
(provided, however, that the foregoing shall not be deemed a waiver of the
Assignor’s right to assert any compulsory counterclaim maintained in a court of
the United States, or of the State of New York  if such counterclaim is
compelled under local law or rule of procedure, nor shall the foregoing be
deemed a waiver of the Assignor’s right to assert any claim which would
constitute a defense, setoff, counterclaim or crossclaim of any nature
whatsoever against the Assignee in any separate action or proceeding).

 

8.                                       Nothing
herein contained shall be construed as constituting the Assignee a “mortgagee
in possession” (or equivalent) in the absence of the taking of actual possession
of the Premises by the Assignee pursuant to the provisions herein
contained.  In the exercise of the
powers herein granted to the Assignee, no liability shall be asserted or
enforced against the Assignee, all such liability being expressly waived and
released by the Assignor.

 

9.                                       In
case of any inconsistency or conflict between the terms of this Assignment and
the terms of the Deed of Trust, the terms of this Assignment shall in all cases
govern and control.

 

10.                                 The
Assignor will, at the cost of the Assignor, and without expense to the
Assignee, do, execute, acknowledge and deliver all and every such further acts,
conveyances, assignments, notices of assignments, transfers and assurances as
the Assignee shall, from time to time, require for the better assuring,
conveying, assigning, transferring and confirming unto the Assignee the
property and rights hereby assigned or intended now or hereafter so to be, or
which the Assignor may be or may hereafter become bound to convey or assign to
the Assignee, or for

 

6

 

carrying out the
intention or facilitating the performance of the terms of this Assignment or
for filing, registering or recording this Assignment and, on demand, will
execute and deliver and hereby authorizes the Assignee to execute in the name
of the Assignor to the extent the Assignee may lawfully do so, one or more
financing statements or comparable security instruments, to evidence more
effectively the lien hereof upon the Leases.

 

11.                                 All
notices given pursuant hereto shall be given (and deemed received) in the
manner set forth in the Loan Agreement.

 

12.                                 This
Assignment, together with the covenants, representations and warranties herein
contained, shall inure to the benefit of the Assignee and any subsequent
beneficiary of the Deed of Trust and shall be binding upon the Assignor, and
its successors and assigns and any subsequent owner of the Premises.

 

13.                                 This
Assignment may only be modified, amended or changed by an agreement in writing
signed by the Assignor and the Assignee, and may only be released, discharged
or satisfied of record by an agreement in writing signed by the Assignee.  No waiver of any term, covenant or provision
of this Assignment shall be effective unless given in writing by the Assignee
and if so given by the Assignee shall only be effective in the specific
instance in which given.  Whenever
possible, each provision of this Assignment shall be interpreted in such a
manner as to be effective and valid under applicable law, but if any provision
of this Assignment shall be unenforceable or prohibited by, or invalid under,
applicable law, such provision shall be ineffective to the extent of such
unenforceability, prohibition or invalidity, without invalidating the remaining
provisions of this Assignment.  The
Assignor acknowledges that this Assignment and the other Loan Documents set
forth the entire agreement and understanding of the Assignor and the Assignee
with respect to the matters covered by the Loan Agreement and that no oral or
other agreement, understanding, representation or warranty exists with respect
thereto other than those set forth in this Assignment and the other Loan
Documents.

 

14.                               The
Assignor hereby irrevocably and unconditionally waives, and the Assignee by its
acceptance of the Deed of Trust and this Assignment irrevocably and
unconditionally waives, any and all rights to trial by jury in any action, suit
or counterclaim arising in connection with, out of or otherwise relating to
this Assignment and any other Loan Documents heretofore, now or hereafter
executed and/or delivered in connection therewith, the Advances or in any way
related to this transaction or otherwise with respect to the Premises or the
Leases.

 

15.                                 The
Assignor acknowledges and agrees that, upon recordation of this Assignment, the
Assignee’s interest in the Rents shall be deemed to be fully perfected,
“choate” and enforced as to the Assignor and all third parties, including
without limitation any subsequently appointed trustee in any case under the
Bankruptcy Code (as defined in the Deed of Trust), without the necessity of (i)
commencing a foreclosure action with respect to the Deed of Trust, (ii)
furnishing

 

7

 

notice to the Assignor or
tenants under the Leases, (iii) making formal demand for the Rents, (iv) taking
possession of the Premises as mortgagee-in-possession (or equivalent), (v)
obtaining the appointment of a receiver of the rents and profits of the
Premises, (vi) sequestering or impounding the Rents, or (vii) taking any other
affirmative action.

 

16.                                 The
Assignor acknowledges and agrees that all Rents shall be deemed to be “Cash
Collateral” under Section 363 of the Bankruptcy Code in the event that the
Assignor files a voluntary petition in bankruptcy or is made subject to any
involuntary bankruptcy proceeding. 
After the filing of such petition, the Assignor may not use Cash
Collateral without the consent of the Assignee and/or an order of any bankruptcy
court pursuant to Section 363(b)(2) of the Bankruptcy Code.

 

17.                                 It
is expected that all Advances, if any, made pursuant to the Loan Agreement will
be disbursed from the State of New York, which state the parties agree has a
substantial relationship to the underlying transaction embodied hereby, and in
all respects, including, without limiting the generality of the foregoing,
matters of construction, validity and performance.  This Assignment and the obligations arising hereunder shall be
governed by, and construed in accordance with, the laws of the State of New
York applicable to contracts made and performed in New York State and any
applicable laws of the United States of America, without regard to conflict of
law rules and principles.  Notwithstanding
such provisions, however, matters respecting title and the creation,
perfection, priority and foreclosure or exercise of any power of sale or
similar remedy (including, without limitation, all matters concerning the
nature of any interest in property that results therefrom) of the lien encumbering
the collateral covered by this Assignment shall be governed by, and construed
and enforced in accordance with, the internal law of the State of Nevada
without giving effect to the conflicts of law rules and principle of such
state.

 

 

[Remainder of page
left intentionally blank]

 

8

 

IN WITNESS WHEREOF, this
Assignment has been executed by the Assignor the day and year first above
written.

 

 

	
   

  	
  S&W OF LAS VEGAS,
  L.L.C.

  
	
   

  	
   

  	
  By:  The Smith & Wollensky Restaurant

  Group, Inc., Sole Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alan M. Mandel

  	
   

  
	
   

  	
   

  	
  Name: Alan M. Mandel

  
	
   

  	
   

  	
  Title:   Secretary

  

 

 

	
  STATE OF NEW YORK

  	
  )

  
	
   

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  

 

On the 29th day of
January in the year 2004 before me, the undersigned, a Notary Public in and for
said State, personally appeared Alan M. Mandel, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity, and that by his signature on the instrument,
the individual, or the person upon behalf of which the individual acted,
executed the instrument.

 

 

	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Maria A. Chang

  	
   

  
	
   

  	
   

  	
   

  	
  Maria A. Chang

  	
   

  
	
   

  	
   

  	
   

  	
  Notarized

  	
   

  
	
   

  	
   

  	
   

  	
  Notary Public

  	
   

  

 

 

EXHIBIT A

 

(Legal Description
of Premises)

 

All that real property
situated in the County of Clark, State of Nevada, bounded and described as
follows:

 

The South 120 feet of the
West Half (W 1/2) of the Northwest Quarter (NW 1/4) of the Southwest Quarter
(SW 1/4);

 

AND

 

The North 10 feet of the
West One-Half (W 1/2) of the Southwest Quarter (SW 1/4) of the Southwest
Quarter (SW 1/4) of Section 21, Township 21 South, Range 61 East, M.D.B.
& M.

 

EXCEPTING THEREFROM  all State and County roads and highways.

 

 

Assessor’s Parcel No.
162-21-301-014

 

 

S&W OF LAS
VEGAS, L.L.C.

 

AND

 

MORGAN STANLEY
DEAN WITTER

COMMERCIAL FINANCIAL SERVICES, INC.

 

 

ABSOLUTE
ASSIGNMENT

OF LEASES AND RENTS

 

 

	
  Dated:

  	
  As of January 30,
  2004

  
	
   

  	
   

  
	
  Location:

  	
  3767 Las Vegas
  Boulevard

  
	
   

  	
  South Las Vegas, Nevada

  
	
   

  	
   

  
	
   

  	
   

  
	
  RECORD AND RETURN TO:

  
	
   

  
	
  Esanu Katsky Korins
  & Siger, LLP

  
	
  605 Third Avenue

  
	
  New York, New York
  10158

  
	
  Attention:

  	
  Stephen D. Brodie, Esq.

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