Document:

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                                                                    EXHIBIT 10.3

                          REAL ESTATE OPTION AGREEMENT

         This Real Estate Option Agreement (the "Agreement") is made and entered
into as of April 25, 2000 (the "Effective Date"), by and among GRAND CASINOS
NEVADA I, INC., a Minnesota corporation ("Seller"); METROPLEX - LAKES, LLC, a
Minnesota limited liability company ("Buyer"); and METROPLEX, LLC, a Nevada
limited liability company ("Metroplex").

                                  INTRODUCTION

         A. Shark Club. Seller is the Tenant under that certain Ground Lease
with MacGregor Income Properties West I, a Nevada general partnership, dated as
of July 31, 1996, and subsequently amended by a First Amendment dated November
26, 1997, and a Second Amendment dated April 9, 1999 (the "Shark Club Lease"),
which covers the real property legally described and designated as Parcel A on
EXHIBIT A attached hereto and hereby made a part hereof (the "Shark Club
Property"). The Shark Club Lease contains a purchase or "call" option that was
exercised by Seller on April 9, 1999, which requires a closing of such purchase
by Seller on or before January 10, 2001, all as further set forth in the Shark
Club Lease.

         B. Travelodge. Seller is the Tenant under that certain Lease Agreement,
dated as of June 17, 1996, by and between the Brooks Family Trust and Nevada
Brooks Cook, as Landlord; and Cloobeck Enterprises (a California corporation)
and Seller, as Tenants for a 99-year period (the "Travelodge Lease"), which
covers the property legally described and designated as Parcel B on EXHIBIT A
attached hereto (the "Travelodge Property"). Cloobeck Enterprises has assigned
its interest in the Travelodge Lease to Seller, who also has an option to
purchase the fee interest in the Travelodge Property, including all improvements
thereon, during the 20th year of the Travelodge Lease for a fixed purchase price
of $30,000,000, all as further set forth in the Travelodge Lease.

         C. Polo Property. Seller is the fee owner of certain real property in
Clark County, Nevada, commonly known as the Polo Plaza Shopping Center located
at 3755 Las Vegas Boulevard South in Clark County, Las Vegas, Nevada and legally
described and designated as Parcel C on EXHIBIT A attached hereto (the "Polo
Property").

         D. Contribution Agreement and Cable Property. In accordance with terms
and conditions set forth in that certain Joint Contribution Agreement, dated as
of the Effective Date, by and among Buyer, Seller, Metroplex and Lakes Gaming,
Inc., a Minnesota corporation (the "Contribution Agreement"), Seller and
Metroplex have agreed to form Buyer as Buyer's initial equity members; and
Seller has agreed to grant to Buyer the right and option to purchase all of
Seller's right, title and interest in and to the Shark Club Property, the
Travelodge Property and the Polo Property on the terms set forth in this
Agreement. The Shark Club Property, the Travelodge Property and the Polo
Property are hereinafter collectively referred to as the "Option Property." The
Contribution Agreement also provides for Seller's assignment to Buyer of certain
options to purchase two contiguous parcels described in the Contribution
Agreement as the "Cable Property," when and if Buyer acquires such options with
the consent of

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Metroplex, as provided in the Contribution Agreement. Pursuant to the terms and
conditions of the Contribution Agreement, Metroplex has agreed to develop the
Option Property and the Cable Property for Buyer.

         E. Purpose and Named Parcels. Seller, Buyer and Metroplex desire to
enter into this Agreement for the purposes set forth in the Contribution
Agreement, and to provide for Seller's grant to Buyer of an option to purchase
some or all of the Option Property from Seller, either (1) as one or more of
Parcels A, B and C thereof (the "Named Parcels"); or (2) as one or more portions
of such Named Parcels, as identified in Exhibit A as "assessor's parcels"
(hereinafter an "Assessor's Parcel").

                                    AGREEMENT

         NOW THEREFORE, in consideration of the facts recited above and other
good and valuable consideration, including but not limited to the agreements of
the parties set forth in the Contribution Agreement, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

                                    ARTICLE 1
                              DUE DILIGENCE PERIOD

         1.1 Contingency Period. Buyer and Metroplex shall have sixty (60) days
from the later of the Effective Date or the date on which Metroplex has received
all documentation required to be delivered to Metroplex pursuant to Section 2(a)
of the Contribution Agreement and Section 1.2 of this Agreement (the
"Contingency Period") to (a) satisfy themselves as to the status of title to the
Option Property; (b) review any and all exceptions to title as set forth in the
commitment (file Number 20710RM) for an ALTA owners policy issued by Lawyers
Title of Nevada, dated February 18, 2000 (the "Preliminary Title Report"), which
has been delivered to Metroplex; and an ALTA survey to be delivered by Seller to
Buyer and Metroplex pursuant to Section 1.2, including but not limited to, all
covenants, conditions, restrictions, reservations, easements, rights-of-way,
corridors, rights to purchase, rights to view, improvement districts, special
assessments, liens and other matters of record; (c) review any existing matters
that are or would be shown on such an ALTA survey of the Option Property,
including but not limited to easements, encroachments, location of utilities,
location of buildings and parking areas; (d) review and approve any other
existing information relating to the Option Property, such as real estate tax
information, zoning, permitting, variance and use permit applications, signage
agreements, and any and all other existing information that can be obtained from
Seller or any governmental agency, whether local, county, state, federal or
quasi-public, having jurisdiction over the Option Property; (e) satisfy itself
as to the environmental condition of the Option Property through an
environmental survey, any soil borings required thereby, and a review of any and
all other information relating to the environmental condition of the Option
Property including but not limited to any existing Phase I reports, results of
previous soil borings and asbestos surveys (if any such reports, surveys and
information are currently in the possession of Seller or any of its "Affiliates"
(as defined in the Member Control Agreement). Buyer, Seller or Metroplex may, in
its sole discretion, extend the

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Contingency Period for up to thirty (30) days if for any reason such ALTA survey
is not delivered to them within thirty-five (35) days after the Effective Date.
Except for the cost of title evidence provided by Seller pursuant to Section
1.2, any investigation undertaken by Metroplex under this Section 1.1, including
without limitation any environmental survey and new soil borings, shall be done
at the expense of Metroplex, and shall be treated as a Development Cost under
Section 8(c) of the Contribution Agreement.

         1.2 Seller's Cooperation. Seller agrees to cooperate with Buyer and
Metroplex in all respects to immediately supply Buyer and Metroplex with the
title evidence described in Section 2(a) of the Contribution Agreement and any
and all other information that Seller or any of its Affiliates has in its
possession relating to the Option Property, including without limitation copies
of existing leases, environmental reports, surveys and copies of other
transitional documents affecting the Option Property. In addition, Seller shall
disclose immediately to Buyer and Metroplex all information that is relevant and
material to the Option Property and becomes known to Seller during the
Contingency Period and thereafter during the term of this Agreement. The ALTA
owners title insurance commitment and ALTA survey delivered by Seller pursuant
to Section 2(a) of the Contribution Agreement shall be obtained at Seller's
expense, shall cover all of the Option Property and copies of all documents
referred to therein shall also be delivered to Metroplex and Buyer. Such ALTA
survey shall be in ASCM form and reasonably acceptable to Lawyers Title of
Nevada, the insurer issuing such commitment.

         1.3 Objections by Buyer or Metroplex. Buyer and/or Metroplex shall,
within the Contingency Period, notify Seller in writing of any objections
Metroplex or Buyer has to matters set forth in Section 1.1 that adversely affect
either the title, physical condition or fair market value of the Option Property
("Objections"). In the event Metroplex or Buyer does not so notify Seller in
writing within the Contingency Period, Metroplex and Buyer shall be deemed to
have approved or waived any and all Objections.

         In the event Metroplex or Buyer so notifies Seller of any Objections
within the Contingency Period, Seller shall have sixty (60) days from its
receipt of such notice (the "Cure Period") to cure or otherwise satisfy the
Objections of Metroplex and Buyer. In the event Seller is unable to satisfy any
such Objections within such Cure Period, then Metroplex, at its option, shall
(a) wholly or partially terminate this Agreement pursuant to Section 1.5; (b)
waive the Objections (if any) of Metroplex and Buyer; or (c) if such cure is
expected to take longer than such Cure Period, waive in writing its right to
terminate this Agreement, if Seller agrees in writing to complete such cure at
Seller's expense before Buyer exercises any purchase option under this Agreement
with respect to any parcel(s) subject to such Objections.

         1.4 Condition of Property and Title. If Metroplex has not wholly
terminated this Agreement upon expiration of the Contingency Period (including
any extension thereof) and the Cure Period (if any), Metroplex expressly agrees
to accept the physical condition, title and fair market value of such portion of
the Option Property as to which this Agreement has not been terminated,
including such land, improvements and personal property on a "as-is, where-is"
basis, "with all faults," subject to (a) any agreement in

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writing by Seller to cure any Objections after the Cure Period, and (b) any
representations and warranties of Seller that are expressly stated herein.
Without limiting the generality of the foregoing, Seller makes no warranty,
express or implied, of fitness of the physical condition of any land,
improvements or personal property for a specific purpose, nor as to
marketability of title to the Option Property as of the Effective Date, except
as otherwise specifically set forth in this Agreement.

         1.5 Metroplex's Right to Wholly or Partially Terminate. Notwithstanding
anything to the contrary in this Agreement or in the Contribution Agreement,
Buyer and Seller agree that Metroplex shall have the right and option, in its
absolute discretion, to terminate this Agreement (or any portion of Buyer's
purchase option hereunder with respect to one or more of the Named Parcels) at
any time within the Contingency Period or, if applicable, the Cure Period, based
on any Objection affecting such a parcel that (a) is not acceptable to
Metroplex, and (b) has not been either timely cured by Seller to the reasonable
satisfaction of Metroplex or required to be cured thereafter pursuant to a
written agreement by Seller under Section 1.3. If this Agreement is terminated
under this Section 1.5, with respect to all of the Option Property, the Joint
Contribution Agreement shall be automatically terminated and Buyer shall be
promptly dissolved pursuant to the Member Control Agreement.

                                    ARTICLE 2
                                 GRANT OF OPTION

         2.1 Grant of Option and Term. Seller hereby grants Buyer an option to
purchase the Shark Club Property, the Travelodge Property, and/or the Polo
Property (or any Assessor's Parcel portion thereof) at any time during a period
of two (2) years from and after the Effective Date, subject to any partial or
complete earlier termination pursuant to this Agreement or the Contribution
Agreement (the "Option Period"). Buyer may exercise its option to purchase one
or more parcels of the Option Property at any time during the Option Period by
giving written notice of its intent to exercise its option to Seller, which
written notice (an "Exercise Notice") will contain, at a minimum, the following
information: (a) the designation of the Named Parcel(s) or Assessor's Parcel(s)
to be purchased (a "Purchased Property"); (b) a closing date and time (a
"Closing Date"), which shall be no later than one hundred eighty (180) days
after the date of the written notice; and (c) an acknowledgment setting forth
the purchase price (the "Purchase Price") to be paid for the Purchased Property
pursuant to this Agreement.

         2.2 Approval of Development Project. Notwithstanding anything contained
herein to the contrary, no purchase option may be exercised by Buyer hereunder
until Seller and the Board of Governors shall have first approved, in writing
and in advance of any commitment by Buyer, such option exercise and a proposed
legally binding agreement providing for Buyer's lease or sale to a prospective
primary tenant or purchaser upon completion of the development project for which
such Purchased Property is being purchased by Buyer (which agreement must become
binding before any such exercise); provided, however, that such proposal shall
be either approved or disapproved by Seller and Buyer's Board of Governors
within ten (10) "Business Days"

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(as that term is defined in the Contribution Agreement) after such proposal is
submitted to Seller and Buyer along with all material information needed to make
such determination. Such approval shall not be unreasonably withheld by Seller
(regardless of any conflicting economic interest of Seller) or Buyer's Board of
Governors if the development project satisfies reasonable real estate investment
criteria, such as the following, as shall be determined in good faith by the
mutual agreement of Seller and Metroplex: (a) the proposed primary tenant is
sufficiently creditworthy that such tenant's proposed lease with Buyer would be
"bondable" (as that term is used in the real estate financing industry) or would
have sufficient cash or equity enhancements to make the lease financeable on
reasonable terms; (b) the tenant or purchaser under a proposed lease or sale
would not compete with existing tenants and would not diminish the value of any
parcel of the Option Property, to the extent such existing tenants will remain
in place along with the proposed tenant or purchaser; (c) if the proposed lease
or sale does not include a major part of the Option Property, it would add to
the "synergy" of the Option Property and the Cable Property by increasing the
value of the remainder parcels thereof; and (d) the proposed lease or sale would
provide Buyer with a minimum return (upon sale or refinancing) of at least 15%
above Buyer's Purchase Price determined under Section 2.4 for the land to be
leased.

         2.3 Dispute Resolution. If any dispute arises between Seller and
Metroplex, or between Metroplex and Buyer, concerning whether any requested
approval by Seller or Buyer's Board of Governors of a proposed development
agreement has been unreasonably withheld or delayed for more than the ten-day
period permitted under Section 2.2, such dispute shall be resolved by
arbitration in the manner provided in Article 17 of that certain Member Control
Agreement dated as of the Effective Date and executed by and between Seller and
Metroplex, with respect to Buyer (the "Member Control Agreement").

         2.4 Purchase Price. The aggregate purchase price for all of the parcels
included in the Option Property shall be $75,000,000, subject to any reduction
required by Section 3.2 (the "Aggregate Purchase Price"). The Aggregate Purchase
Price shall be allocated among the Named Parcels of the Option Property as
follows; and each such amount shall be the "Purchase Price" for the Named Parcel
indicated:

             (a)  $25,000,000 for the Shark Club Property (Parcel A),

             (b)  $25,000,000 for the Travelodge Property (Parcel B), and

             (c)  $25,000,000 for the Polo Property (Parcel C).

         If and when Buyer purchases the Travelodge Property, Buyer shall assume
Seller's obligations to pay the rentals due under the Travelodge Lease, after
Seller's rights to Parcel B are purchased by Buyer; and Buyer shall have the
right and option to pay the purchase price to the holder of the fee interest
upon any exercise of the fee interest purchase option included with the
Travelodge Lease during the 20th year of its term and thereby terminate the
Travelodge Lease; and Seller shall not have any obligation to pay

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any such rentals or such purchase option price after Buyer purchases the
Travelodge Property.

         If one or more Assessor's Parcels that are a portion of any Named
Parcel becomes a Purchased Property due to the exercise of Buyer's purchase
option for such Assessor's Parcel(s), but less than all of such Named Parcel,
then the portion of the Aggregate Purchase Price applicable to such Purchased
Property (also, a "Purchase Price") shall be that fraction of $25,000,000 which
is equal to the ratio of the number of acres in such Purchased Property to the
total number of acres in such Named Parcel.

         The Purchase Price for any Purchased Property shall be paid in cash,
certified check, bank draft or wired funds in immediately available in United
States federal funds (or on other terms accepted in writing by Seller), on the
Closing Date for that Purchased Property as set forth in the Exercise Notice.

         In the event that Buyer fails to close on the Purchased Property as set
forth in the Exercise Notice, then Seller shall have the right and option to
either pursue its remedies for such failure, or terminate in writing Buyer's
Exercise Notice to purchase such Purchased Property hereunder and, in the latter
case, Seller shall be fully released and discharged from any further liability
or obligation with respect to such Exercise Notice, and Buyer's option to
purchase any parcel of the Option Property that has not been purchased by Buyer
shall continue for the remainder of the Option Period, except to the extent such
option is otherwise wholly or partially terminated pursuant to this Agreement or
the Contribution Agreement.

         2.5 Seller's Right to Terminate. Seller shall have the right and option
to terminate this Agreement, or Buyer's purchase option rights hereunder with
respect to certain parcels of the Option Property, at any time during the Option
Period, to the extent expressly provided for in Section 2(b) of the Contribution
Agreement in the event of a Casino Project Termination (as defined therein),
subject to the right of Metroplex to receive any termination fee due Metroplex
in such event pursuant to Section 2(c) of the Contribution Agreement, or to
match any "Casino Offer" as described in Section 2(b)(v) of the Contribution
Agreement.

                                    ARTICLE 3
                  CLOSING COSTS, PRO-RATIONS AND BROKERAGE FEES

         3.1 Closing Costs and Pro-rations. Buyer and Seller agree to the
following pro-rations and allocation of closing costs relating to the payment of
the applicable portion of the Aggregate Purchase Price in the event of the
purchase of any Purchased Property hereunder:

             (a) Title Evidence and Closing Fee. Seller will pay all costs for
         preparing an updated ALTA title insurance commitment and survey with
         respect to the Purchased Property, including updating the abstract of
         title, and Seller will pay the cost of any premium for the title policy
         and the costs of any special

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         endorsements reasonably required by Buyer or Metroplex. Buyer and
         Seller will share equally in the cost of the usual and customary
         closing fees payable in connection with a purchase transaction settled
         in Clark County, Nevada.

             (b) Transfer Tax. Seller will pay all deed tax and/or property
         transfer taxes required by the local, state, or other governmental
         agency to record the conveyance and transfer of the Purchased Property,
         including all real and personal property included therein, to Buyer.

             (c) Real Estate Taxes/Special Assessments/Supplemental Taxes. On
         the Closing Date, Seller will pay all real estate taxes and special
         assessments due and payable in the years or other periods prior to the
         Closing Date, or existing as of the Closing Date, with respect to the
         Purchased Property. Seller shall also pay, on the Closing Date, all
         remaining unpaid installments of such special assessments. Buyer and
         Seller, on the Closing Date, shall prorate the real estate taxes and,
         if assessed, any supplemental taxes due and payable in the year of
         closing, such pro-ration to be on the basis of a calendar year. Seller
         shall also pay any real estate taxes that are legally assessed against
         the Purchased Property after the Closing Date, but should have been
         assessed and paid before the Closing Date,

             (d) Lease Payments, Expenses and Income. If the Purchased Property
         is the Travelodge Property, Buyer and Seller will prorate, as of the
         Closing Date, all rent, prepaid insurance premiums and all other sums
         required to be paid by Seller under the Travelodge Lease to the Closing
         Date. Buyer will receive the right to any remaining security deposits,
         prepaid insurance policies and prepaid rent paid by Seller or its
         predecessors under the Travelodge Lease before the Closing Date.

             However, if the Purchased Property is the Shark Club Property, the
         Shark Club Lease will be terminated, the landlord's interest in the
         Shark Club property shall be purchased by Seller from the landlord at
         Seller's expense and prior to any closing hereunder with respect to any
         portion of the Shark Club Property, Seller shall convey its interest
         and the interest of such landlord to Buyer, and Buyer shall not be
         responsible for any cost of Seller's purchase from such landlord or any
         encumbrance created by Seller or any of its Affiliates, or permitted by
         Seller to be created by others, on or after February 18, 2000, with
         respect to the Shark Club Property.

             Except as specifically provided above, all carrying costs (other
         than real estate taxes) described in Section 8(a) of the Contribution
         Agreement and payable by Seller with respect to the Purchased Property
         for the year in which the Closing Date occurs shall be pro-rated
         between Buyer and Seller, based on that calendar year.

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             All rent and other income receivable by Seller with respect to the
         Purchased Property for the year in which the Closing Date shall be
         pro-rated between Buyer and Seller, based on that calendar year; Seller
         shall pay to Buyer the amount of any security deposits and prepaid rent
         held by Seller with respect to the Purchased Property, and Buyer shall
         assume all responsibility to Seller's tenants with respect to any such
         security deposits or prepaid rent; provided, however, that any such
         security deposits and prepaid rent shall have been paid to Buyer by
         Seller.

         3.2 Brokerage Commission. Any and all commissions due in connection
with this Agreement will be paid by Seller in accordance with that certain
written commission agreement between Seller and David Atwell, except that, to
the extent Seller negotiates any reduction in such commission, Seller will
reduce the Aggregate Purchase Price by the amount of that reduction; and any
such reduction shall be allocated equally among the Named Parcels. Metroplex
and/or one or more of its members, Affiliates, employees, consultants and agents
are licensed real estate brokers in Nevada and California, and this sentence is
provided by Metroplex as a disclosure required by law.

                                    ARTICLE 4
                          CONTROL OF OPTIONED PROPERTY

         4.1 Seller's Rights and Certain Obligations. During the Option Period
and prior to any sale of any applicable Purchased Property to Buyer, Seller
shall have, and now has, the exclusive right to (a) maintain control of each
parcel of the Option Property that Seller continues to own, lease or hold by
option agreement, including but not limited to, the right and obligation to
manage the day-to-day operations of each parcel thereof, whether pursuant to a
management agreement or direct management; (b) retain lease payments received
from existing tenants and retain any and all other sources of income derived
from the Option Property that continues to be held by Seller, except for any
prepaid rent or security deposits allocable to Buyer hereunder with respect to
any Purchased Property; and (c) pledge its interest in any parcel of the Option
Property that Seller continues to hold, to a secured lender of Seller or any of
its Affiliates; provided, however, that Seller (in its pledge of such parcel)
shall have retained the right to satisfy that pledge by (a) substituting other
collateral, equity or cash including without limitation the allocable cash
portion of the Aggregate Purchase Price, (b) obtaining a release of such parcel,
or (c) refinancing its debt secured by such parcel, and Seller shall in fact do
so, whenever Buyer exercises its Option with respect to such pledged parcel of
the Option Property and no later than ten (10) days before any closing hereunder
on such Purchased Property.

         4.2 Seller's Other Obligations. During the Option Period, and prior to
any sale of any applicable Purchased Property to Buyer, Seller shall (a) pay all
rents due under the Travelodge Lease and Shark Club Lease; (b) exercise Seller's
purchase option with respect to the Shark Club Property before such option
expires, including but not limited to payment of the purchase price required
thereunder; (c) not encumber the Option Property with additional liens or
encumbrances (except as provided for in clause (c) of

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Section 4.1), without first obtaining the prior written consent of Buyer and
Metroplex, which consent shall not be unreasonably withheld; (d) timely pay all
other carrying costs described in Section 8(a) of the Contribution Agreement
with respect to Option Property that Seller continues to own, lease or hold by
option agreement, including without limitation any payments due under any
existing notes, deeds of trust, real estate taxes, special assessments, etc.,
affecting such property; and (e) consent to and sign applications for zoning
changes, variance requests, submittals for planning and engineering, studies and
improvements plans and other documents Buyer may reasonably request in
connection with Buyer's development of the Option Property; and Seller shall do
so within ten (10) Business Days after Seller receives any such document from
Buyer; provided, however, that Seller shall not be required to consent to or
sign any document that, if approved by any governmental authority, would
adversely affect the current use of any of the Option Property then owned,
leased or held under an option agreement.

         4.3 Buyer's Rights. During the Option Period, Seller shall cause Buyer
to have the right to enter onto any parcel of the Option Property that Seller
continues to own, lease or hold by purchase option, for purposes related to the
proposed development of the Option Property, all as more particularly set forth
in the Contribution Agreement and the Member Control Agreement. Buyer shall
indemnify Seller against any liens imposed by agents or subcontractors of Buyer
as a result of Buyer's entry on any Option Property.

         4.4 Buyer's Obligations. During the Option Period, Buyer shall
communicate weekly with Seller, and conduct meetings with Seller at least
monthly, to keep Seller updated with respect to the status of the development
activities of Buyer and those contemplated by the Contribution Agreement; and
shall do any and all necessary acts in connection therewith, as more
particularly set forth in the Contribution Agreement and Member Control
Agreement. Those meetings shall be held at or near the Option Property at least
once in each calendar quarter.

         4.5 Incorporation of Agreements. Buyer and Seller hereby agree that the
provisions of the Contribution Agreement and the Member Control Agreement are
hereby incorporated herein by reference.

                                    ARTICLE 5
                                     CLOSING

         5.1 Seller's Closing Obligations. On the Closing Date, with respect to
each Purchased Property, Seller shall execute and/or deliver to Buyer the
following items:

             (a) Conveyance of Title. Seller shall convey its title to the
         Purchased Property by Quit Claim Deed or Lease Assignment, whichever is
         applicable, "as-is" and without title warranties, except that Seller
         shall remove or otherwise cure any encumbrance created by Seller or any
         of its Affiliates or permitted by Seller to be created by others, on or
         after February 18, 2000, unless such encumbrance

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         has been previously approved by Buyer in writing, and Seller is not
         required to remove such encumbrance under Section 1.3 or otherwise
         hereunder.

             (b) Improvements and Personal Property. Seller will convey the
         improvements and tangible personal property then in place on the
         Purchased Property, including without limitation any fixtures and
         furnishings, by a Quit Claim Deed and/or Bill of Sale stating that such
         improvements and tangible personal property are conveyed "as-is,
         where-is, with all faults" and with no warranties or representation as
         to the physical condition of the improvements or tangible personal
         property, or title of the tangible personal property, except for any
         encumbrance created by Seller on or after February 18, 2000, unless
         such encumbrance has been previously approved by Buyer in writing, and
         Seller is not required to remove such encumbrance hereunder.

             (c) Other Required Documents. Seller shall execute and deliver any
         and all (a) affidavits such as Seller's Affidavit, FIRPTA Affidavit,
         IRS Reporting Affidavit, etc., and (b) evidence of corporate existence
         and authority, as may be reasonably required by the issuer of Buyer's
         ALTA Title Policy, who shall close the transaction as escrow agent.

             (d) Removal of Tenants. Promptly after Seller receives an Exercise
         Notice with respect to a Purchased Property, Seller shall send a
         written notice to all existing tenants occupying that property, to the
         effect that it has been sold to Buyer. Seller shall also be responsible
         for evicting each such tenant (whether or not such tenant is holding
         over beyond the agreed tenancy period) and otherwise terminating each
         such tenancy on or before the Closing Date, at Seller's expense, unless
         any such tenancy and occupancy is specifically accepted by Buyer in a
         writing delivered to Seller by at least two (2) Business Days before
         the Closing Date with respect to that Purchased Property.

             (e) Leases and Estoppel Certificates. Seller shall deliver to Buyer
         (i) true and complete copies of any leases of the Purchased Property
         under which Seller is landlord; (ii) an estoppel letter, substantially
         in the form attached hereto as EXHIBIT __, from each of the tenants, if
         any, occupying the Purchased Property under such leases; and (ii) an
         estoppel letter, substantially in the form attached hereto as EXHIBIT
         __, from each landlord of any Purchased Property held by Seller as
         tenant pursuant to a lease.

         5.2 Buyer's Closing Obligations. On the Closing Date, with respect to
each Purchased Property, Buyer will execute and/or deliver to Seller the
following items:

             (a) Purchase Price. Payment of the Purchase Price for the Purchased
         Property in accordance with Section 2.4.

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             (b) Title Documents. Such affidavits, transfer certificates or
         other documents as may be required by law or reasonably required by the
         issuer of Buyer's ALTA Title Policy.

             (c) Assumption of Leases. If the Purchased Property is the
         Travelodge Property, Buyer shall execute and deliver a written
         assumption agreement of all tenant's liabilities accruing after the
         Closing Date with respect to the Travelodge Lease, including the
         obligation to pay the purchase price for the Travelodge Property,
         including all improvements thereon, upon any exercise of the tenant's
         purchase option and termination of the Travelodge Lease. Buyer shall
         also execute and deliver a written assumption agreement of all
         landlord's obligations accruing after the Closing Date with respect to
         any lease, sublease or signage lease under which Seller is the landlord
         with respect to the Purchased Property.

         5.3 Escrow Agent. The closing with respect to any Purchased Property
shall be conducted through an escrow with Lawyers Title of Nevada, who shall
also be the issuer of Buyer's ALTA title insurance policy.

                                    ARTICLE 6
                         REPRESENTATIONS AND WARRANTIES

         6.1 Seller's Representatives and Warranties. Seller represents and
warrants to Buyer and Metroplex that the following statements are true except
(as to the Option Property only), as otherwise disclosed in the Preliminary
Title Report:

             (a) Seller is a corporation duly organized and existing in good
         standing under the laws of the State of Minnesota.

             (b) Seller has the requisite power and authority to enter into and
         perform the terms of this Agreement; the execution and delivery of this
         Agreement and the consummation of the transactions contemplated hereby
         have been duly authorized by the Board of Directors of Seller; and no
         other corporate proceedings on the part of Seller are necessary in
         order to permit Seller to consummate the transactions provided for in
         this Agreement.

             (c) neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any material
         violation of, or (ii) is or will be in conflict with, or (iii)
         constitutes or will constitute a default under, any partnership
         agreement, mortgage indenture, deed of trust, contract, financing
         statement, permit, judgment, decree, order, statute, rule or regulation
         applicable to Seller or, to the best of Seller's knowledge, the Option
         Property (or any portion thereof.

             (d) Neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any violation
         of, or (ii) is or will

                                       11

<PAGE>   12

         be in conflict with, or (iii) constitutes or will constitute a default
         under the Articles of Incorporation or by-laws of Seller.

             (e) No approval, consent, order, or authorization of or
         designation, registration, or declaration with, any governmental
         authority is required in connection with the valid execution and
         delivery of, and compliance with, this Agreement by Seller.

             (f) There is no material default on the part of Seller under, and
         no event or omission has occurred which, but for the passing of time or
         giving of notice, or both, would be a material default under any
         mortgage indenture or deed of trust affecting the Option Property (or
         any portion thereof) (a "Deed of Trust") on the part of Seller or, to
         the best of Seller's knowledge, any other party thereto. Seller shall
         make all payments and perform all covenants required to be paid or
         performed by Seller under any such Deed of Trust on or prior to the
         Closing Date, with respect to any Purchased Property, in accordance
         with the terms and provisions thereof.

             (g) To the best of Seller's knowledge, there is no condemnation
         proceeding pending with regard to all or part of the Option Property,
         and there is no such proceeding contemplated by any governmental
         authority.

             (h) To the best of Seller's knowledge, there is no violation of any
         restriction, condition or agreement contained in any instrument
         affecting the Option Property (or any portion thereof), that materially
         affects the value or operation of the Option Property (or any portion
         thereof).

             (i) To the best of Seller's knowledge, none of the following exist,
         except for the pending lawsuit between Seller (as defendant) and Polo
         Towers Master Association, Inc. (as plaintiff), with respect to the
         Polo Property and the adjoining property known as the Polo Towers:

                 (i)  pending grievances or arbitration proceedings or
                 unsatisfied arbitration awards, or judicial proceedings or
                 other respecting awards, relating to the Option Property (or
                 any portion thereof);

                 (ii) other pending or actual claims, charges, complaints,
                 petitions, or unsatisfied orders, or any threat thereof, by or
                 before any administrative agency or court respecting alleged
                 obligations of the owner of the Option Property (or any portion
                 thereof to); or

                      (iii) any other action, proceeding, or investigation
                 pending or threatened against or involving the Option Property
                 (or any portion thereof).

                                       12

<PAGE>   13

             (j) To the best of Seller's knowledge, no work requested by Seller
         has been performed or is in progress at and no materials have been
         furnished at the request of Seller to the Option Property (or any
         portion thereof) that, though not presently the subject of, might
         reasonably be expected to give rise to, mechanic's, materialman's or
         other liens against the Option Property (or any portion thereof),
         except for any work requested or performed by Metroplex in
         contemplation of the Contribution Agreement.

             (k) To the best of Seller's knowledge, no zoning, building, or
         similar law, ordinance, order, or regulation is or will be violated in
         any material respect by the continued maintenance, operation, or use of
         any buildings or other improvements on the Option Property (or any
         portion thereof) or by the continued maintenance, operation, or use of
         the parking areas. To the best of Seller's knowledge, there are no
         material violations of any federal, state, or municipal laws,
         ordinances, orders, regulations, or requirements affecting any portion
         of the Option Property, no written notice of any such violation has
         been issued by any governmental authority, and no heating equipment,
         garbage disposal, compactor, incinerator, or other burning equipment at
         the Option Property violates any applicable federal, state, or
         municipal law, ordinance, order, regulation or requirement in any
         material respect.

             (l) Seller has made available to Buyer all material title
         commitments, reports, studies, maps, agreements, contracts, leases,
         surveys (and any amendment thereto) concerning the Option Property that
         are in the possession, or under the control, of Seller or any of its
         Affiliates. Buyer acknowledges that Seller has neither verified the
         accuracy of any information delivered hereunder, nor the qualifications
         of the persons preparing such information. Buyer acknowledges and
         agrees that Seller makes no representations or warranties, express or
         implied, with respect to the accuracy or completeness of the
         information supplied or its fitness for a particular purpose.

             (m) Seller is not and has not been a foreign person, as defined in
         the Internal Revenue Code of 1986, as amended (the "Code"); and Seller
         will deliver to Buyer at the Closing Date with respect to each parcel
         of Purchased Property one or more affidavit(s) made under penalty of
         perjury and otherwise in form and substance necessary to satisfy the
         requirements under the Code, relating to withholding of a portion of
         the Aggregate Purchase Price allocated to such parcel, which affidavits
         shall state the U.S. taxpayer identification number of Seller and that
         Seller is not a foreign person.

             (n) Seller will within fifteen (15) days after the Effective Date,
         disclose to Metroplex all material matters relating to the ownership
         and operation of the Option Property of which Seller and its Affiliates
         are now aware or may become aware during that period after due inquiry
         of their officers, employees, agents and directors.

                                       13

<PAGE>   14

         For purposes of this Section 6.1, Seller's knowledge (as of the
Effective Date) does not include any knowledge that might be obtained by due
inquiry of any person or entity. The foregoing representations and warranties
shall be deemed to be made at the time of execution of this Agreement, and also
again, with respect to all Option Property not already acquired by Buyer, at
each Closing Date with respect to the applicable Purchased Property, and such
representations and warranties shall survive for two (2) years after the last
Closing Date hereunder.

         6.2 Buyer's Representations and Warranties. Buyer represents and
warrants to Seller and Metroplex as follows:

             (a) Buyer is a limited liability company duly organized and
         existing in good standing under the laws of the State of Minnesota.

             (b) Buyer has the requisite power and authority to enter into and
         perform the terms of this Agreement; the execution and delivery of this
         Agreement and the consummation of the transactions contemplated hereby
         have been duly authorized by the Board of Governors of Buyer; and no
         other proceedings on the part of Buyer are necessary in order to permit
         Buyer to consummate the transactions provided for in this Agreement.

             (c) Neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any material
         violation of, or (ii) is or will be in conflict with, or (iii)
         constitutes or will constitute a default under any partnership
         agreement, mortgage indenture, deed of trust, contract, financing
         statement, permit, judgment, decree, order, statute, rule or
         regulation, applicable to Buyer.

             (d) Neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any violation
         of, or (ii) is or will be in conflict with, or (iii) constitutes or
         will constitute a default under the Articles of Organization or by-laws
         of Buyer.

             (e) No approval, consent, order, or authorization of or
         designation, registration, or declaration with, any governmental
         authority is required in connection with the valid execution and
         delivery of, and compliance with, this Agreement by Buyer.

         The foregoing representations and warranties shall be deemed to be made
at the time of execution of this Agreement, and also again, with respect to all
Option Property not already acquired by Buyer, at each Closing Date with respect
to the applicable Purchased Property, and such representations and warranties
shall survive for two (2) years after the last Closing Date hereunder.

         6.3 Metroplex's Representations. Metroplex represents and warrants to
Seller and Buyer as follows:

                                       14

<PAGE>   15

             (a) Metroplex is a limited liability company duly organized and
         existing in good standing under the laws of the State of Nevada.

             (b) Metroplex has the requisite power and authority to enter into
         and perform the terms of this Agreement; the execution and delivery of
         this Agreement and the consummation of the transactions contemplated
         hereby have been duly authorized by the governing authority of
         Metroplex; and no other proceedings on the part of Metroplex are
         necessary in order to permit Metroplex to consummate the transactions
         provided for in this Agreement.

             (c) Neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any material
         violation of, or (ii) is or will be in conflict with, or (iii)
         constitutes or will constitute a default under any partnership
         agreement, mortgage indenture, deed of trust, contract, financing
         statement, permit, judgment, decree, order, statute, rule or
         regulation, applicable to Metroplex.

             (d) Neither the entry into nor the performance of, or compliance
         with, this Agreement (i) has resulted, or will result in any violation
         of, or (ii) is or will be in conflict with, or (iii) constitutes or
         will constitute a default under the articles or certificate of
         organization, operating agreement or by-laws of Metroplex.

             (e) No approval, consent, order, or authorization of or
         designation, registration, or declaration with, any governmental
         authority is required in connection with the valid execution and
         delivery of, and compliance with, this Agreement by Metroplex.

         The foregoing representations and warranties shall be deemed to be made
at the time of execution of this Agreement, and also again, with respect to all
Option Property not already acquired by Buyer, at each Closing Date with respect
to the applicable Purchased Property, and such representations and warranties
shall survive for two (2) years after the last Closing Date hereunder.

                                    ARTICLE 7
                                  MISCELLANEOUS

         7.1 Notice. Any and all notices and demands by any party hereto to the
other party, required or desired to be given hereunder shall be in writing and
shall be validly given or made if deposited in the United States mail, certified
or registered, postage prepaid, return receipt requested, if made by Federal
Express or other similar courier service or when served by facsimile
transmission to the parties as follows:

         If to Seller:              Grand Casinos Nevada I, Inc.
                                    130 Cheshire Lane
                                    Minnetonka, MN  55305
                                    Attn:  Chief Financial Officer

                                       15

<PAGE>   16

         If to Buyer:               Metroplex - Lakes, LLC
                                    5710 East Tropicana
                                    Las Vegas, NV 89122
                                    Attn:  Brett Torino

         If to Metroplex:           Metroplex, LLC
                                    5710 East Tropicana
                                    Las Vegas, NV 89122
                                    Attn:  Brett Torino

         7.2 Governing Law. This Agreement shall be governed by the laws of the
State of Minnesota, excluding its laws concerning conflicts of law.

         7.3 Binding Effect/Assignment/Recording. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. No party may assign its rights under this
Agreement prior to any Closing Date with respect to any portion of the Option
Property, except as otherwise expressly permitted hereunder, without the prior
written consent of the other parties.

         To the extent that this Agreement remains in effect with respect to any
of the Option Property after the Contingency Period and any Cure Period, Buyer
may record in the real estate records of Clark County, Nevada, a summary
memorandum of its rights under this Agreement with respect to such Option
Property, in a form that is first acceptable to, approved, executed and
acknowledged before a notary public, in each case by Seller, and delivered to
Buyer for such recording. Such approval and execution shall not be unreasonably
withheld or delayed by Seller.

         To the extent that this Agreement is terminated with respect to any
portion of the Option Property after any such memorandum has been recorded by
Buyer, Seller may record in the real estate records of Clark County, Nevada, an
instrument releasing Buyer's rights under this Agreement with respect to such
portion of the Option Property, in a form that is first acceptable to, approved,
executed and acknowledged before a notary public, in each case by Buyer, and
delivered to Seller for such recording. Such approval and execution shall not be
unreasonably withheld or delayed by Buyer.

         7.4 Buyer's Right to Cure. Seller shall notify Buyer in writing of any
default by Buyer hereunder, and Buyer shall have ten (10) Business Days after
Buyer's receipt of such notice to cure or otherwise remedy such default.

         7.5 Entire Agreement. This Agreement, the Contribution Agreement and
the Member Control Agreement contain the entire agreement among the parties
hereto. This Agreement shall not be amended except by a written agreement signed
by each of the parties hereto. This Agreement shall not be terminated, except by
a written agreement signed by each of the parties hereto, or as otherwise
specifically provided herein.

                            [SIGNATURE PAGE FOLLOWS]

                                       16

<PAGE>   17

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date first above written.

                                       Grand Casinos Nevada I, Inc.

                                       By
                                         -------------------------------------
                                             Its
                                                 -----------------------------

                                       METROPLEX - Lakes, LLC

                                       By
                                         -------------------------------------
                                             Its
                                                 -----------------------------

                                       METROPLEX, LLC

                                       By
                                         -------------------------------------
                                             Brett Torino, Its Managing Member

                                       17<PAGE>   1
                                                                    EXHIBIT 10.4

                      AMENDED AND RESTATED OPTION AGREEMENT

         WHEREAS, the undersigned, Martin J. Cable and Olga B. Cable, as
Trustees of the Cable Family Trust ("CABLE") and Grand Casinos Nevada I, Inc., a
Minnesota corporation ("GRAND") are parties to an Option Agreement dated as of
November 1, 1997 as amended by a letter agreement dated April 13, 1998,
("ORIGINAL OPTION AGREEMENT") and;

         WHEREAS, under the Original Option Agreement Cable granted Grand an
option to acquire the Option Property and a right of first refusal with respect
to the Center Property (as such terms are defined in the Original Option
Agreement); and,

         WHEREAS, the parties hereto desire to amend the Original Option
Agreement to extend the option with respect to the Option Property, to grant an
option with respect to the Center Property and in other respects;

         NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, it is agreed that the Original Option Agreement is hereby amended
and restated in its entirety to read as follows:

         THIS AMENDED AND RESTATED OPTION AGREEMENT made as of June 1, 2000, at
Las Vegas, Nevada by and between Martin J. Cable and Olga B. Cable, as Trustees
of the Cable Family Trust ("Cable") and Grand Casinos Nevada I. Inc., a
Minnesota corporation ("Grand").

                              W I T N E S S E T H:

         WHEREAS, Cable is the owner of certain real property in Clark County,
Nevada, commonly known as the Cable Center located at 3755 Las Vegas Boulevard
South and legally described in Exhibit A attached hereto and incorporated herein
by reference (the "CABLE PROPERTY"). The Cable

<PAGE>   2

Property consists of approximately four and one-half (4.5) acres of gross land
area having the approximate dimensions of two hundred seventy (270) feet in
width and seven hundred thirty-five (735) feet in depth. The western portion
("CENTER PROPERTY") of Cable Property is improved with a single retail shopping
center building (the "CABLE CENTER"). The remainder of the Cable Property is
referred to herein as the REAR PROPERTY. The Center Property and Rear Property
are Parcels 1 and 2 respectively, as shown on that map recorded March 30, 1999,
at Page 0072, File 094, Office of the County Recorder, Clark County, Nevada.).
The Center Property includes all improvements thereon; all furniture, fixtures,
equipment and other tangible property thereon other than Tenant fixtures;
deposits, whether made by or with Cable, including, but not limited to, rent
deposits and utility deposits; any and all warranties relating to any
improvements or any materials incorporated therein; and all books and records of
Cable reasonably related to any other item included in the Center Property.

         WHEREAS, Grand desires to obtain from Cable options to purchase the
Rear Property and the Cable Center Property;

         WHEREAS, Cable is willing to grant to Grand options to purchase the
Rear Property and the Center Property on the terms and subject to the conditions
set forth herein; and,

         WHEREAS, the parties hereto have reached an understanding with respect
to the grant by Cable to Grand of options to buy the Rear Property and the
Center Property.

         NOW, THEREFORE, it is agreed as follows:

                                        2

<PAGE>   3

                                    SECTION 1

                                     OPTION

         1.01.1. Cable hereby grants Grand options (the "OPTIONS" and each an
"OPTION") to purchase the Rear Property or the entire Cable Property on the
terms and subject to the conditions set forth in this Agreement. The Rear
Property and the Center Property shall each be conveyed to Grand free and clear
of all security interests, liens and monetary encumbrances except non-delinquent
taxes and assessments.

         1.01.2. In the event Grand exercises the Option with respect to only
the Rear Property, Cable shall, concurrently with the conveyance of the Rear
Property, convey to Grand a non-exclusive, permanent easement appurtenant to the
Rear Property for the purpose of vehicular and pedestrian ingress and/or egress
over the northerly most approximately forty (40) feet of the Center Property
(the "ACCESS EASEMENT"). The Access Easement is depicted on the map attached
hereto as Exhibit B and incorporated herein by reference Grand shall have no
right to use the Access Easement in any manner which materially interferes with
the operations of the Cable Center or the rights of the tenants occupying the
Cable Center, including, without limitation, the use of the easement by
construction equipment or the material impairment of traffic circulation by
customers of the Cable Center to and from the existing parking areas located on
the Center Property. Except as expressly set forth in this Section 1.01 and in
Section11.02 and Section 11.03, Grand shall not have any right to alter,
construct or modify the existing improvements located on the Access Easement,
without the prior written consent of Cable, which consent shall not be
unreasonably withheld or delayed. The failure of Cable to disapprove any
requested alteration, modification or improvement, or to specify the reasons for
such disapproval, within ten (10) days of a request for such approval shall be
deemed

                                        3

<PAGE>   4

approval thereof. Without limiting Grand's rights to require Cable's approval of
other matters hereunder, the parties specifically acknowledge that Grand may
submit proposals to Cable pursuant to this Section prior to exercise of the
Option with respect to the Rear Property. Cable acknowledges that Grand must
alter the Access Easement in order to use the same for the purposes intended
herein. Grand acknowledges that such approval by Cable may be conditioned upon,
among other things, Grand's assumption of responsibility for maintaining the
improvements so constructed. The parties acknowledge that no parking spaces for
the Center Property are located in the Access Easement and agree that in
connection with development of the Access Easement Grand may not require any
parking spaces currently on the Center Property to be moved or removed. If the
Access Easement is developed by Grand in conjunction with the property
immediately to the north of the Access Easement (such property so developed
being referred to as the "NORTH EASEMENT") as a combined ingress/egress drive,
Cable shall have a non-exclusive easement over the North Easement for so long as
the North Easement is so developed for the purpose of vehicular ingress and/or
egress to or from the Center Property. Should a median be constructed in any
roadway over the Access Easement, or over the Access Easement and North
Easement, if applicable, a median break shall be located not more than one
hundred sixty (160) feet east of the west boundary of the Center Property
sufficient to allow cars traveling east on such roadway to take a u-turn into
the westbound lane(s) of such roadway. Should a roadway exist, in whole or in
part, over the Access Easement which allows customers of Grand access to the
remainder of the Center Property, upon the request of Cable, Grand will
undertake such measures as are reasonable in light of the circumstances
(including, without limitation, the magnitude of any problem) to prevent
customers of Grand parking on the Center Property if the same would interfere
with the ability of customers of the Center Property to park

                                        4

<PAGE>   5

thereon. Grand shall have the right to locate subsurface utility lines beneath
the Access Easement, provided that such use does not materially interfere with
the operations of the Cable Center or the rights of tenants occupying the Cable
Center, Grand pays all costs associated therewith and restores the surface of
the Access Easement area to its condition prior to installation of such
utilities. Grand shall indemnify, defend and hold Cable and its successors and
assigns harmless from and against any liability, obligation, claim, damage, cost
or expense (including reasonable attorney's fees) that Cable or its successors
and assigns shall incur or suffer arising out of or in connection with the use
of the Access Easement by Grand and Grand's agents, contractors, and invitees or
any of Grand's activities in connection therewith. The terms and conditions of
Grand's use of the Access Easement as provided in this Section shall be set
forth in an Easement Agreement, in form and content reasonably satisfactory to
Cable and Grand, which shall be recorded as of the closing of the purchase of
the Rear Property.

         1.02. The period during which the Options may be exercised (the "OPTION
PERIOD") commences June 1, 2000 and expires January 2, 2003. As consideration
for the Options, Grand shall pay to Cable the amount of One Hundred Thousand
Dollars ($100,000) per month. Such payments shall commence on June 1, 2000 and
continue on or before the first day of each and every month thereafter during
the Option Period for so long as Grand desires the Options to remain effective.
If, for any reason whatsoever, the full amount of any option payment is not made
by Grand within the time provided for herein, and such amount remains unpaid for
ten (10) days after written notice from Cable to Grand of such non-payment, the
Options shall automatically terminate without notice or further action by Cable,
and Cable shall be fully released and discharged from any further liability

                                        5

<PAGE>   6

or obligation under this Agreement. Each option payment shall be tendered by
Grand to Cable within the time specific herein without reservation or condition.

         1.03. All option payments paid to Cable by Grand pursuant to this
Agreement shall be absolutely non-refundable. Grand acknowledges and agrees that
the amount of the option payments constitute fair and reasonable consideration
for the granting of the Options and that Cable has the absolute right to retain
the option payments whether or not either of the Options is exercised and
whether or not the closing occurs. However, the parties acknowledge that the
fact that the option payments are non-refundable under this Agreement shall not
prejudice Grand's right to seek recovery thereof in an action against Cable in
the event that Cable commits a Breach (as hereinafter defined) of this
Agreement.

         1.04. In the event Grand exercises the Option with respect to either
the Rear Property or the entire Cable Property, Grand shall be entitled to apply
against the Purchase Price thereof twenty percent (20%) of the option payment
due for the period commencing June 1, 2000, and each subsequent option payment
through, but excluding, the option payment due for the period commencing
November 1, 2000, and one half of the option payment due for the period
commencing November 1, 2000, and each subsequent option payment through, but
excluding, the option payment due for November, 2001. No portion of any option
payments for the period commencing November 1, 2001, through the end of the
Option Period shall be applied against the Purchase Price.

         1.05. Grand may exercise the Option for the Rear Property or the Option
for the entire Cable Property by notice ("OPTION NOTICE") to Cable given any
time that the Options remains in effect. The Option Notice shall specify the
property to be acquired and time and date for closing of the purchase, which
date shall not be less than thirty (30) days after the date of the Option Notice
but

                                        6

<PAGE>   7

no later than January 2, 2003; provided, however, Grand shall continue to be
obligated to make all option payments that are due between the date of such
exercise and the closing of the purchase. Should Grand exercise the Option with
respect to only the Rear Property, Grand shall have no further right to acquire
the Center Property. The Options shall remain in effect until the last day of
the last month for which Grand has made an option payment pursuant to Section
1.02, provided that in no event shall any Option remain in effect after January
2, 2003, unless specifically extended in writing by Cable. Should the Options
terminate and Grand has not exercised the same, Grand shall have no further
rights with respect to the Cable Property, except in the case of a Breach.

                                    SECTION 2

                                 PURCHASE PRICE

         2.01.   The total purchase price (the "PURCHASE PRICE") for the Rear
Parcel shall be Eighteen Million Dollars ($18,000,000). The Purchase Price for
the entire Cable Property shall be Thirty-Nine Million One Hundred Twenty
Thousand Dollars ($39,120,000). Cable and Grand acknowledge and agree that the
Purchase Price represents the net consideration to be received by Cable for the
Rear Parcel or Cable Property, as the case may be, and that, except as expressly
set forth in this Agreement, including, without limitation, Section 1.04, there
shall be no reductions to or credits against the Purchase Price.

         2.02.   The applicable Purchase Price, less any applicable credits,
shall be paid at the closing by Grand to Cable in immediately available funds.

         2.03.1. Real estate taxes, assessments and deposits and rent under the
Leases shall be prorated as of the closing pursuant to a closing statement
prepared by Escrow Agent and approved by the parties. To the extent that such
adjustments can be made at the applicable closing date the

                                        7

<PAGE>   8

same shall be done and Cable or Grand, as the case may be, shall pay the amount
due to the other. All other adjustments shall be paid by Cable to Grand or Grand
to Cable, as the case may be, promptly on demand when computed. In the case of
acquisition of the entire Cable Property, in lieu of prorating power, gas, water
and other utility fees and charges, to the extent not directly paid by the
tenants under the Leases, the appropriate utilities will be informed to take
meter readings as close as practicable to the closing date, to bill Cable for
service prior to such readings and to bill Grand for service thereafter. Said
readings may before or after the applicable closing date.

         2.03.2. Any rental or other payments received by Grand from any tenant
under any Lease after the closing date of acquisition of the Cable Property
shall be applied first against any obligations of said tenant to Grand and only
if all obligations of said tenant to Grand are current shall Grand then remit
the excess to Cable in an amount not in excess of the amount, if any, certified
by Cable to Grand at the closing to be so due, provided that if such tenant is
so certified to be one (1) month or less in arrears in payment of rent the first
payments received by Grand from such tenant shall be remitted to Cable to the
extent of such delinquency. Cable shall not make any claim or take any action to
collect any sums owing Cable from such tenant which might adversely affect
Grand's rights and remedies under the any Lease. Nothing in this Section 2.03.2
shall constitute a waiver by Grand of any representation, warranty, term,
covenant or condition contained in this Agreement, including, without
limitation, Sections 4.01.1(f) and (g).

         2.04. Grand shall withhold from the Purchase Price such amount as Grand
reasonably estimates is necessary to comply with the provisions of NRS 360.525
and 612.695 until such time as Cable furnishes Grand the receipts or
certificates provided for in said statutes or, if not so provided for, such
evidence as Grand may reasonably require to assure Grand that the applicable

                                        8

<PAGE>   9

obligations have been paid. If Cable does not produce such receipts or
certificates within the time periods provided in said statutes, or if any lien
or other claim therefor is asserted against Grand or the property acquired by
Grand under this Agreement, Grand shall pay such withheld sums to the
appropriate authority.

         2.05. Grand agrees to reasonably cooperate so as to qualify these
transactions under Section 1031 of the Internal Revenue Code provided Grand
incurs no additional liability, cost, delay or expense. Notwithstanding the
foregoing sentence, the sale of the Rear Parcel and the entire Cable Property
and the rights of Grand shall in no manner be contingent upon or affected by the
failure to qualify the transaction for such tax deferred exchange treatment,
regardless of the reasons or causes of such failure to qualify.

                                    SECTION 3

                                     TITLE

         Grand acknowledges that, prior to the date of this Agreement, Grand has
conducted investigations with respect to the condition of title to the Cable
Property. Grand acknowledges that it has received and reviewed a preliminary
title report ("PTR") issued by Escrow Agent concerning the Cable Property,
together with legible copies of all documents referred to therein. A copy of the
PTR is attached hereto as Exhibit C and incorporated herein by reference. The
parties agree that, in the event that Grand exercises either Option, Cable will
be conveying title to the applicable parcel subject to, and only subject to, all
of the following matters affecting or which may affect the condition of title to
such parcel ("PERMITTED TITLE EXCEPTIONS"): (a) any and all covenants,
reservations, restrictions, easements and other title matters appearing of
record as of the date of the PTR (whether or not disclosed in the PTR), except
for delinquent taxes and assessments; (b) any lien

                                        9

<PAGE>   10

for current year taxes and assessments not yet delinquent now or hereafter
assessed against the Cable Property; (c) any matters created or suffered in
connection with the filing, processing or recordation of the parcel map referred
to in the recitals to this Agreement; (d) any matter caused or created by Grand;
(e) in the case of acquisition of the entire Cable Property, any Leases
conforming to the representations and covenants in this Agreement; and (f) any
other non-monetary defect or exception to title that does not materially
adversely affect the value of the applicable parcel or Grand's intended use of
such parcel or, if applicable, the Access Easement. Grand shall be solely
responsible for obtaining such title commitments or title insurance as Grand may
desire in connection with the granting of the Options or the closing of the
purchase of either parcel, except that, and conditioned upon the closing of
either parcel, Cable shall pay the portion of the title insurance premium
described in Section 10.04. Grand acknowledges that title to the Rear Property
may be subject to a Covenant not to Compete for the benefit of McDonald's
Corporation ("MCDONALD'S COVENANT"). Except in the event of the creation of a
Material Title Defect (as defined herein) by Cable or a Breach, (i) Cable shall
have no responsibility or liability for the condition of title of the Rear
Parcel or Cable Property and (ii) no matter affecting condition of title to the
Rear Parcel or Cable Property shall form the basis for a claim by Grand against
Cable for default or breach of this Agreement or for the refund of any option
payments made by Grand to Cable pursuant to this Agreement. It shall, however,
be a condition precedent to Grand's obligation, upon exercise of an Option, to
consummate the closing of the purchase of the applicable parcel that Grand
obtains through Escrow Agent an ALTA Form B extended owner's policy of title
insurance in the amount of the applicable Purchase Price, and with such
endorsements as Grand may reasonably require, insuring that Grand has fee simple
title to the applicable parcel and, if applicable,

                                       10

<PAGE>   11

an easement over the Access Easement as provided herein subject only to the
Permitted Title Exceptions.

                                    SECTION 4

                         REPRESENTATIONS AND WARRANTIES

         4.01.1. Cable represents and warrants to Grand as follows:

               (a) Cable has full power and authority to enter into this
         Agreement.

               (b) The execution, delivery and performance of this Agreement by
         the Persons executing the same on behalf of Cable have been duly and
         validly authorized (and by their execution hereof such Persons so
         represent and warrant) and this Agreement constitutes the legal, valid
         and binding obligation of Cable enforceable in accordance with its
         terms.

               (c) Neither the execution, delivery or performance of this
         Agreement by Cable will conflict with or result in a breach of any of
         the terms, conditions or provisions of any judgment, order,
         injunction, decree or ruling of any court or governmental authority to
         which Cable or the Cable Property is subject or any agreement or
         instrument to which it is a party or by which it or the Cable Property
         is bound, or constitute a default thereunder.

               (d) To Cable's actual knowledge, no labor has been performed or
         material furnished for the Cable Property, or any part thereof, for
         which Cable has not heretofore fully paid, or for which a mechanic's
         or materialman's lien or liens, or any other lien, can be claimed by
         any Person.

               (e) Except as may be disclosed in the environmental reports
         referred to in Exhibit D attached hereto and incorporated herein by
         reference, Cable has not received any written notice or other written
         communication from any government, agency thereof or any private

                                       11

<PAGE>   12

         party concerning any alleged violation of Environmental Laws or any
         written notices or other written communications alleging against Cable
         liability for Hazardous Materials in connection with the Cable
         Property.

               (f) Except for easements shown on the PTR, the McDonald's
         Covenant (as to the Center Property and, possibly also as to the Rear
         Property), and the Leases (as the Center Property only) Cable is not,
         and prior to transfer of possession of the Cable Property will not be,
         a party to any service contract, Lease or other agreement with respect
         to or affecting the Cable Property, except for contracts and
         agreements terminable on notice of thirty (30) days or less. Other
         than the McDonald's Lease, the Narang Lease and the OPC Lease, (i) no
         Lease has a term which expires or will expire later than June 30,
         2002, and (ii) after June 30, 2002, all Leases may be terminated on
         not more than ninety (90) days' notice. Upon exercise of the Option
         with respect to the entire Cable Property the OPC Lease may be
         terminated by the lessor on not more than thirty (30) days' notice.
         Without limiting the generality of the foregoing, no Person other than
         Cable, the beneficiaries of the easements shown on the PTR and
         possibly the beneficiary of the McDonald's Covenant has any rights
         whatsoever with respect to the Rear Property. Cable has no actual
         knowledge of any exception to title to the Cable Property other than
         those described in the PTR.

               (g) All agreements (including all extensions, amendments and
         other modifications thereof, the "LEASES") pursuant to which a Person
         may occupy any part of the Cable Property are listed on Exhibit E
         attached hereto and incorporated herein by reference. Cable has
         furnished Grand true, correct and complete copies of the Leases. The
         amount of any security deposit made by any such tenant is set forth on
         Exhibit E. No rent under any

                                       12

<PAGE>   13

         Lease has been paid more than one (1) month in advance. There has been
         no application of any security deposit to a tenant's default under any
         Lease, except as described on Exhibit E. Cable has not received or
         given any written notice with respect to any default by any party
         under any Lease which remains uncured, except for notices, copies of
         which have previously been given to Grand.

               (h) No consent, approval or authorization of any private party is
         required in connection with the execution, delivery and performance of
         this Agreement by Cable.

               (i) Cable has made available to Grand all material reports,
         studies and surveys concerning the Cable Property in Cable's
         possession or under Cable's control (collectively the "PROPERTY
         INFORMATION"). Grand acknowledges that Cable has neither verified the
         accuracy of any information contained in the Property Information nor
         the qualifications of the Persons preparing the Property Information.
         Grand acknowledges and agrees that Cable makes no representations or
         warranties, expressed or implied, with respect to the accuracy or
         completeness of the Property Information or its fitness for a
         particular purpose.

               (j) Cable is not and has not been a foreign person, as defined in
         the Internal Revenue Code of 1986, as amended, and Cable will deliver
         to Grand at the closing affidavit(s) under penalty of perjury and
         otherwise in the form and substance necessary to satisfy the
         requirements under the Internal Revenue Code of 1986 relating to
         withholding of a portion of the purchase price, stating the U.S.
         taxpayer identification number of Cable and that such Person is not a
         foreign person.

         4.01.2. Grand acknowledges and agrees that, prior to Grand's execution
of this Agreement, Grand was given the full opportunity to inspect and
investigate each and every aspect of the Cable

                                       13

<PAGE>   14

Property either independently or through Grand's agents. Grand acknowledges and
agrees that, except for Cable's express representations and warranties set forth
in this Agreement, if Grand elects to purchase either the Rear Parcel or the
entire Cable Property it is purchasing such parcel based solely upon Grand's
inspection and investigation of the applicable parcel, or its opportunity to do
so, and Grand is purchasing the applicable parcel in its "AS IS" condition,
without relying upon any representations or warranties, express or implied, of
any kind, except as expressly set forth in this Agreement. Without limiting the
above, Grand expressly acknowledges and agrees that, except for Cable's express
representations and warranties set forth in this Agreement, neither Cable nor
Cable's agents has made any representations or warranties as to any matters
concerning the Cable Property, including, but not limited to, its intended use,
the condition of the Cable Property, square footage, layout, development rights
and exactions, permissible uses, utilities, zoning, soil, subsoil, drainage,
title, compliance with applicable laws, rules and regulations (including
Environmental Laws), the presence of Hazardous Materials on or under the Cable
Property or any other matters. The closing of the purchase of either parcel by
Grand hereunder shall be conclusive evidence that Grand accepts such parcel in
its present condition with all patent and latent defects, other than breaches of
the express representations and warranties contained herein.

         4.02. Grand represents and warrants to Cable as follows:

               (a) Grand has full power and authority to enter into this
         Agreement.

               (b) The execution, delivery and performance of this Agreement by
         the Person executing the same on behalf of Grand have been duly and
         validly authorized (and by his execution hereof such Person so
         represents and warrants) and this Agreement constitutes the legal,
         valid and binding obligation of Grand enforceable in accordance with
         its terms.

                                       14

<PAGE>   15

               (c) Neither the execution, delivery or performance of this
         Agreement by Grand will conflict with or result in a breach of any of
         the terms, conditions or provisions of any judgment, order,
         injunction, decree or ruling of any court or governmental authority to
         which Grand is subject or any agreement or instrument to which it is a
         party or by which it is bound, or constitute a default thereunder.

               (d) No consent, approval or authorization of any private party is
required in connection with the execution, delivery and performance of this
Agreement by Grand.

         4.03. No specific warranty or representation contained herein shall be
deemed to modify or limit any general warranty or representation.

         4.04. The representations and warranties contained herein are made with
the knowledge and expectation that Grand and Cable, as the case may be, are
placing complete reliance thereon. However, notwithstanding any other provision
of this Agreement, any knowledge of matters concerning the Cable Property which
actually came to the attention of Grand prior to the execution of this Agreement
(whether through Cable or due to Grand's own investigations) shall be deemed to
limit (and be an exception to) any and all representations and warranties made
by Cable in this Agreement so as to reduce or eliminate any liability which
Cable may otherwise have had with respect to such matter as a result of such
representations and warranties, provided that Grand's awareness that it may be
unclear whether the Leases affect the Rear Property shall not be a limitation
of, or exception to, Section 4.01.1(f). Grand acknowledges receipt of the
reports and other information referred to in Exhibit D and Grand's awareness of
the matters set forth in such reports and other information.

                                       15

<PAGE>   16

      4.05.  The representations and warranties in this Agreement shall be true
and correct in all material respects as of the date of execution hereof and as
of the closing and shall survive the closing for a period of one (1) year. Any
and all liability of Cable or Grand, as the case may be, for breach of any of
the representations and warranties in this Agreement shall terminate as to such
representation and warranty if no written claim of breach (specifying such
representation or warranty allegedly breached and the supporting evidence for
the alleged breach) has been delivered to such party on or before the expiration
of such one (1) year period, and notwithstanding the existence of a claim of
breach with respect to any one or more representations or warranties within such
period, the remaining representations and warranties for which no claim of
breach has been delivered within the applicable period shall expire and be of no
further force or effect.

      4.06.  Notwithstanding any other provision of this Agreement, Cable shall
not be considered or deemed to be in default or breach of any representation,
warranty or covenant of this Agreement unless and until Cable has committed a
Breach (as hereinafter defined).

                                    SECTION 5

                                      NAME

      Commencing on the closing of the sale of the Cable Property, Cable hereby
grants Grand a non-exclusive, royalty free, license to use the mark and name
CABLE CENTER and any variant thereof on signage at, or otherwise reasonably in
connection with, the Cable Property for so long as Grand continues to operate
the Cable Center in substantially the same way as it is operated as of the date
hereof.

                                       16

<PAGE>   17

                                    SECTION 6

                         CONDITIONS PRECEDENT TO CLOSING

      6.01. Following the exercise of either Option by Grand, the obligations of
Grand hereunder to consummate the closing are subject to the fulfillment, prior
to or at such closing, as required, of each of the following conditions, subject
to no reservations, restrictions, conditions or limitations unsatisfactory to
Grand:

               (a) All conditions precedent to Grand's obligations provided for
      in any other section of this Agreement have been satisfied.

               (b) On the closing date no litigation or action shall be pending
      or threatened, or have been brought, and remain undismissed, alleging the
      illegality, invalidity of, or seeking to enjoin the performance of this
      Agreement.

               (c) All consents, approvals, authorizations, agreements, estoppel
      certificates and beneficiary statements of any third party required or
      reasonably requested by Grand in connection with the consummation of the
      transactions contemplated hereby shall have been delivered to Grand.

               (d) The representations and warranties of Cable contained in this
      Agreement shall be true at the closing as though such representations and
      warranties were made at such time.

               (e) Cable shall have performed and complied with all agreements
      and conditions required by this Agreement to be performed or complied with
      by it prior to or at the closing.

               (f) No material adverse change with respect to the Center
      Property, Rear Property or Access Easement, as applicable, has occurred
      since the date of the Option Notice.

                                       17

<PAGE>   18

               (g) Cable shall have terminated any and all agreements, other
      than the Leases, with respect to the applicable property as of the closing
      and, in the case of the acquisition of the entire Cable Property, if Grand
      has so requested, Cable shall, within five (5) days after any such
      request, have given notice of termination under those Leases (including,
      without limitation, the OPC Lease and the Sign Lease) which are then
      terminable on not more than ninety (90) days' notice with respect to which
      such request is made terminating such Leases on the earliest possible
      date, provided that no Lease termination need be effective prior to the
      closing.

               (h) The tenant under the McDonald's Lease and beneficiary of the
      McDonald's Covenant has agreed that Grand may terminate such Person's
      parking rights on the Cable Property provided that there is loading
      ingress and egress, and pedestrian ingress and egress, from Las Vegas
      Boulevard South to such premises and that such Person's employees are
      provided parking in a reasonable location.

      6.02. Cable, at no cost to Cable, shall render Grand its reasonable
cooperation in satisfying the conditions precedent to Grand's purchase of the
Cable Property.

      6.03. In the event of failure of any condition precedent to Grand's
obligations hereunder, if Grand so elects by written notice to Cable, this
Agreement shall cease and terminate as to the applicable parcel and neither
party shall have any rights against the other by reason of such termination,
except that Cable shall remain liable for any Breach of this Agreement by Cable.
Except for the Breach of this Agreement by Cable, the failure of any condition
precedent to Grand's obligations hereunder shall not form the basis for any
claim by Grand against Cable, including a claim for the recovery of the option
payments made to Cable.

                                       18

<PAGE>   19

      6.04. Any and all terms, covenants, conditions, representations and
warranties contained herein which are for the benefit of Grand including, but
not limited to, all conditions precedent and Cable's representations and
warranties, may be waived by Grand in its sole and absolute discretion.

                                    SECTION 7

                                  RISK OF LOSS

      In the event of any material destruction, damage or condemnation of the
Rear Parcel, and/or the Center Property (including any improvements thereon),
Cable shall promptly notify Grand in writing. In such event, Grand may, by
written notice to Cable, elect to terminate this Agreement. If there is such
destruction, damage or condemnation and Grand does not terminate this agreement
and Grand exercises either Option, Grand shall acquire the applicable parcel as
herein provided (with no offset to or reduction of the applicable Purchase
Price) and all insurance and condemnation proceeds attributable to the acquired
parcel shall be paid to Grand. In the event Grand is not acquiring the entire
Cable Property, Cable shall be entitled to receive and retain all insurance and
condemnation proceeds with respect to the Center Property (including, without
limitation, in the case of condemnation, severance damages and loss of business
goodwill). This Section 7 is intended as an express provision with respect to
destruction and eminent domain which supersedes the provisions of the Nevada
Uniform Vendor and Purchaser Risk Act. No destruction, damage or condemnation
shall form the basis of a claim by Grand for the recovery of the option payments
made to Cable.

                                       19

<PAGE>   20

                                    SECTION 8

                             CONDUCT PENDING CLOSING

      Until either Grand's Options terminate or the closing occurs.

               (a) Cable shall continue to operate the Cable Property in the
      ordinary and regular course consistent with past practice. Without
      limiting the generality of the foregoing (i) Cable shall use commercially
      reasonable efforts to maintain the Cable Property in good working order
      and condition, ordinary wear and tear excepted; and (ii) Cable shall keep
      the Cable Property insured at substantially the same levels of coverage
      and against substantially the same risks as provided by the insurance
      which is currently in place.

               (b) Cable shall enforce all the terms, covenants and conditions
      of the Leases. Cable shall promptly provide Grand with copies of all
      notices and other communications Cable gives or receives with respect to
      the Leases.

               (c) Cable shall not amend, modify, enter into or terminate any
      Lease without Grand's prior written consent, which may be withheld in
      Grand's sole and absolute discretion, provided that Cable may, without
      Grand's consent, extend the term of now existing Leases so long as (i)
      Cable promptly provides Grand a copy of such extension agreement, and (ii)
      such extension does not result in the breach of any term, covenant,
      condition, representation or warranty contained in this Agreement. Cable
      may also enter into a lease ("SIGN LEASE") of a portion of the Center
      Property for a billboard. The Sign Lease shall be subject to the approval
      of Grand, which shall not be unreasonably withheld. The Sign Lease shall
      provide that it may be terminated on and after June 30, 2002, on not more
      than thirty (30) days' notice. Cable shall not enter into any other new
      agreements affecting the Cable Property

                                       20

<PAGE>   21

      other than agreements terminable by Cable within thirty (30) days and
      which shall be terminated prior to closing. Cable shall provide Grand
      reasonable notice of any meetings or other negotiations that Cable will
      have with any tenants under the now existing Leases regarding the
      extension of the term of such Leases and shall allow a representative of
      Grand to participate in such negotiations. Should any such tenant, other
      than the tenant under the OPC Lease, refuse to extend its Lease solely
      because such extended Lease term is subject to termination on ninety (90)
      days' notice as provided elsewhere in this Agreement, Grand shall lease
      the subject premises from Cable for a term commencing on the termination
      date of such Lease and ending January 31, 2003. Such lease shall be for
      the rental payable under the applicable Lease immediately preceding its
      termination and shall otherwise be on the terms and conditions of the
      terminated Lease, except that there shall be no use restriction (other
      than (i) restrictions on "adult" and similar objectionable uses, (ii)
      restrictions necessary to comply with now existing exclusive uses
      provisions in the Leases or similar provisions hereafter approved by Grand
      and (iii) restrictions on any use not permitted by the applicable Lease
      which use would directly compete with a material portion of the business
      then being conducted by another tenant in the Cable Center) and there
      shall be no limitations on Grand's ability to assign and/or sublease.

               (d) Cable shall not do, or suffer to be done, any act or event
      which, if in existence on the date hereof or the closing date, would
      breach any warranty, representation or covenant made by, or to be observed
      or performed by, Cable hereunder.

                                       21

<PAGE>   22

                                    SECTION 9

                             ACCESS AND INFORMATION

      From the date hereof, through and including the termination of the Options
or the closing of the purchase of the Rear Parcel or the entire Cable Property,
as applicable, Grand shall be entitled to inspect the Cable Property and to
conduct such tests, surveys, analysis and feasibility studies of the Cable
Property as Grand deems necessary, advisable or desirable, provided Grand
notifies Cable of any entry onto the Cable Property in connection therewith and
obtains any required consent of the tenant in the case of entry into space
occupied by a tenant under a Lease. Grand shall maintain insurance for any such
work performed on the Cable Property, shall indemnify and hold Cable harmless
from any loss arising out of Grand's work on the Cable Property pursuant hereto
and shall restore the affected Cable Property to its condition prior to any such
tests in the event the applicable closing does not occur. Cable shall render
Grand Cable's full and complete cooperation in connection with any of such
inspections, tests, surveys, analyses, studies, and meetings, provided that such
cooperation shall be at no cost, expense or liability to Cable. It is
specifically acknowledged and agreed that in connection with the foregoing
inspections Grand may meet with tenants under the Leases, provided that Grand
provides Cable with notice of such meetings and allows Cable to attend the same,
and provided further that Grand shall not meet with such tenants prior to June
30, 2001, without Cable's prior consent, which shall not be unreasonably
withheld or delayed. In addition to the foregoing, Cable shall permit Grand and
its representatives full access to the books and records with respect to the
Cable Property, provided that the exercise of such access shall not unreasonably
interfere with the normal business and operations of the Cable Property.

                                       22

<PAGE>   23

                                   SECTION 10

                                     CLOSING

      10.01. The closings shall occur at the offices of Nevada Title Company, a
Nevada corporation ("ESCROW AGENT"), 3320 West Sahara Avenue, Suite 200, Las
Vegas, Nevada 89102, at the time and date specified in the Option Notice,
provided that if Cable shall breach any representation, warranty or covenant of
this Agreement made by, or required to be performed or observed by, Cable which
breach has not been cured by such date Grand may extend such date to a date not
more than ten (10) days after the last date Cable may cure such breach pursuant
hereto. In such event, Grand shall not be required to make any option payments
during such extension period.

             10.02.1. At the closing Cable shall deliver to Grand the
      following:

             (a) A grant, bargain and sale deed conveying the Rear Parcel or
      Cable Property, as the case may be, to Grand subject to the Permitted
      Title Exceptions.

             (b) In the case of the sale of the entire Cable Property, the
      originals of all Leases (to the extent in Cable's possession or control),
      other than any Leases which Cable is required to terminate hereunder,
      together with a written assignment, in recordable form, of all of the
      landlord's right, title and interest therein to Grand, in form
      satisfactory to Grand.

             (c) All files, correspondence, memoranda, books and records
      pertaining to the applicable parcel, provided that in the case where Grand
      is acquiring only the Rear Parcel, if any such records relate partly to
      the Rear Parcel and partly to the remainder of the Cable Property, Cable
      need only deliver copies of the portions thereof relating to the Rear
      Parcel.

                                       23

<PAGE>   24

               (d)   A written assignment to Grand of Cable's right, title and
      interest in any applicable warranties.

      10.02.2.       At the closing Grand shall deliver to Cable the following:

               (a)  The applicable Purchase Price in immediately available
      funds, less any permitted credits.

               (b)  In the case of the sale of the entire Cable Property, an
      assumption of all liabilities under the assigned Leases accruing after the
      closing in form satisfactory to Cable.

      10.02.3.      The closing with respect to the Purchase Price and recorded
documents shall be conducted through an escrow with Escrow Agent. At the closing
Grand and Cable shall execute such escrow instructions not in conflict with the
terms hereof as either of them or Escrow Agent may require to fully effectuate
the terms, covenants and conditions hereof.

      10.03. Cable agrees that at the closing and any time thereafter, upon
request of Grand, Cable shall execute, acknowledge and deliver to Grand such
deeds, assignments, conveyances, transfers, and other instruments and documents
and perform such acts as Grand shall from time to time require for the better
perfecting, assuring, conveying, assigning, transferring and confirming unto
Grand the property and rights herein conveyed or assigned or intended now or
hereafter so to be.

      10.04. At and conditioned on the closing, Cable shall pay that portion of
the premium for title insurance regarding the applicable parcel referred to in
Section 3 equal to the amount of the standard premium which would have been paid
for a CLTA owner's policy of title insurance in the same amount, including
refunding to Grand any commitment fee, title insurance premium or similar charge
previously paid by Grand, if necessary, so that Cable pays an amount equal to
such standard

                                       24

<PAGE>   25

premium. All additional premiums shall be paid by Grand. All other closing costs
shall be allocated in accordance with the prevailing practice in Las Vegas,
Nevada.

      10.05. Possession of the applicable parcel shall be delivered to Grand as
of the closing, subject to the rights of the tenants under assigned Leases, if
applicable.

      10.06. The terms, covenants and conditions hereof shall not merge with any
deed or conveyance, shall survive the closing and shall continue in full force
and effect until such time, if any, as provided herein.

      10.07. At the closing of the sale of the entire Cable Property, Cable and
Grand shall execute a written notice of Grand's acquisition of the Cable
Property and sufficient copies for transmittal to all tenants and other parties
affected by the sale, properly addressed to all such tenants and other parties.
The notices shall be prepared by Cable and shall be in form and content
satisfactory to Grand, shall notify the addressees of the sale and shall contain
appropriate instructions relating to the payment of future rentals, the giving
of future notices, and other matters reasonably required by Grand or required by
law. Cable agrees to transmit, or cause to be transmitted, such notices to the
addressees promptly after such closing.

                                   SECTION 11

                             POST CLOSING COVENANTS

      11.01. Should any easements serving the Center Property be located on the
Rear Property and should Grand acquire only the Rear Property, Grand may
relocate the same and any utility lines located therein at its sole cost and
expense. In connection with such relocation of easements and utility lines,
Grand shall not materially adversely interfere with the operations of the Cable
Center.

                                       25

<PAGE>   26

      11.02. Conditioned upon and following the occurrence of the closing of the
purchase of the Rear Property, Grand shall have the right to remove, at Grand's
sole expense, the public parking sign located within the area of the Access
Easement. In connection with such removal, Grand shall, at
Grand's sole expense, reroute the existing electrical line that runs from the
public parking sign to the McDonalds sign located in front of the Cable Center.
Should Grand acquire only the Rear Property, in connection with the demolition
and removal of any improvements located on the Rear Property (such as light
standards), Grand shall, at Grand's expense, conduct such demolition and removal
in such a manner as not to damage or render inoperable the other improvements
located on the Center Property.

      11.03. Conditioned upon and following the occurrence of the closing of the
purchase of only the Rear Property, Grand shall, at Grand's sole expense, remove
the guard gate currently located on the Access Easement.

      11.04. The parties acknowledge that certain assessments levied against the
Cable Property (such as Special Assessment District No. 97B) are assessed
against the Cable Property based upon the front footage along Las Vegas
Boulevard. The parties agree that, from and after the closing of the purchase of
only the Rear Parcel, amounts due under such assessment obligations existing on
such closing date which are payable after such date shall be allocated
sixty-seven percent (67%) to the Rear Property and thirty-three percent (33%) to
the Center Property. In such event, the parties shall use their best efforts to
cause the Rear Property and the Center Property to be separately assessed to
reflect the foregoing allocation.

                                   SECTION 12

                                 BROKERAGE FEES

                                       26

<PAGE>   27

      Each of Cable and Grand agree to indemnify, hold and save the other
harmless from any brokerage or similar fees, compensation or expenses which may
be suffered by reason of any agreement or purported agreement for the payment
thereof by the indemnifying party.

                                   SECTION 13

                             MEMORANDUM OF AGREEMENT

      This Agreement shall not be recorded, but concurrently with the execution
hereof the parties shall execute, acknowledge and record a memorandum hereof. In
the event of the termination or expiration of the Options, Grand shall, within
five (5) business days thereof, execute, acknowledge and record a quitclaim deed
acknowledging the termination of all rights of Grand hereunder in connection
with the Cable Property.

                                   SECTION 14

                                    NOTICES

      14.01. Any and all notices and demands by any party hereto to the other
party, required or desired to be given hereunder shall be in writing and shall
be validly given or made only if deposited in the United States mail, certified
or registered, postage prepaid, return receipt requested, if made by Federal
Express or other similar courier service keeping records of deliveries and
attempted deliveries or when served by telecopy or similar facsimile
transmission. Service by mail or courier shall be conclusively deemed made on
the first business day delivery is attempted or upon receipt, whichever is
sooner. Facsimile transmissions received during business hours during a business
day shall be deemed made on such business day. Facsimile transmissions received
at any other time shall be deemed received on the next business day.

                                       27

<PAGE>   28

      14.02. Any notice or demand to Cable shall be addressed to Cable at 32
Sawgrass Court, Las Vegas, Nevada 89113, fax (702) 876-8434, with a copy to
Demetriou, Del Guercio, Springer & Moyer, 801 South Grand Avenue, 10th Floor,
Los Angeles, California 90017-4613, Attention: Stephen Del Guercio, fax (213)
624-0174.

      14.03. Any notice or demand to Grand shall be addressed to Grand at Lakes
Gaming, Inc., 130 Cheshire Lane, Minneapolis, Minnesota 55305, Attention:
President, fax (612) 449-8509, with a copy to Lionel Sawyer & Collins, 1700 Bank
of America Plaza, 300 South Fourth Street, Las Vegas, Nevada 89101, Attention:
Jeffrey P. Zucker, fax (702) 383-8845.

      14.04. Any party may change its address for the purpose of receiving
notices or demands as herein provided by a written notice given in the manner
aforesaid to the others, which notice of change of address shall not become
effective, however, until the actual receipt thereof by the others.

                                   SECTION 15

                                  CONSTRUCTION

      The laws of the State of Nevada shall govern the validity, construction,
performance and effect of this Agreement.

                                   SECTION 16

                                 BINDING EFFECT

      This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their permitted successors and assigns. Neither party may
assign this Agreement prior to the closing, except that Grand may assign this
Agreement to any Person controlled by Grand and/or Brett Torino and Cable may
assign this Agreement to an exchange intermediary to the extent necessary for
purposes of effectuating a Section 1031 exchange as provided in Section 2.05
hereof and that, in

                                       28

<PAGE>   29

connection with a conveyance of the Cable Property, Cable may assign this
Agreement to the grantee of the Cable Property. Without limiting Grand's rights
hereunder, such grantee shall acknowledge that its rights in the Cable Property
are subject to this Agreement and the Options and shall assume all of Cable's
obligations hereunder. This Agreement shall not inure to the benefit of any
Person other than the parties hereto and their permitted successors and assigns.
Without limiting the generality of the foregoing, no tenant under any Lease
shall have any rights hereunder.

                                   SECTION 17

                               PARTIAL INVALIDITY

         If any term, provision, covenant or condition of this Agreement, or any
application thereof, should be held by a court of competent jurisdiction to be
invalid, void or unenforceable, all provisions, covenants, and conditions of
this Agreement, and all applications thereof, not held invalid, void or
unenforceable, shall continue in full force and effect and shall in no way be
affected, impaired or invalidated thereby.

                                   SECTION 18

                                ENTIRE AGREEMENT

      This Agreement contains the entire agreement between the parties and
cannot be changed or terminated orally.

                                   SECTION 19

                                 ATTORNEYS' FEES

      In the event any action is commenced by either party against the other in
connection herewith, including, but not limited to, any bankruptcy proceeding,
the prevailing party shall be entitled to its costs and expenses, including
reasonable attorneys' fees.

                                       29

<PAGE>   30

                                   SECTION 20

                                 INTERPRETATION

      20.01. The captions appearing at the commencement of the sections hereof
are descriptive only and for convenience in reference to this Agreement and in
no way whatsoever define, limit or describe the scope or intent of this
Agreement, nor in any way affect this Agreement.

      20.02. Personal pronouns shall be construed as though of the gender and
number required by the context, and the singular shall include the plural and
the plural the singular as may be required by the context.

      20.03. Unless otherwise specified all references herein to Sections shall
mean sections of this Agreement and all references to Exhibits shall mean
exhibits to this Agreement.

      20.04. The parties agree that neither party shall be deemed to be the
drafter of this Agreement and that in the event this Agreement is ever construed
by a court of law or equity, such court shall not construe this Agreement or any
provision hereof against either party as the drafter of the Agreement.

                                   SECTION 21

                                  DEFINITIONS

      As used in this Agreement the following terms have the following meanings:

      Access Easement is defined in Section 1.01.2.

      Breach means the breach by Cable of an express representation, warranty or
      covenant made by, or required to be performed or observed by, Cable which
      breach materially adversely affects either (i) Grand's ability to acquire
      the Rear Parcel or Cable Property as contemplated herein, (ii) the value
      of the Rear Property or Cable Property or (iii) Grand's intended use of
      the Rear Property,

                                       30

<PAGE>   31

Access Easement or Cable Property (including, without limitation, any breach
which materially delays Grand's development of the applicable parcel or
materially increases the cost thereof) and which breach is not cured by Cable
within twenty (20) days following Cable's receipt of written notice from Grand
of such breach (specifying in reasonable detail the nature of such breach) or
within forty-five (45) days following receipt of such notice if due to the
nature of such breach it cannot reasonably be cured within such twenty (20) day
period so long as Cable commences such cure within such twenty (20) day period
and diligently prosecutes such cure to completion within such forty-five (45)
day period.

      Cable is defined in the preamble hereto.

      Cable Center is defined in the recitals hereto.

      Cable Property is defined in the recitals hereto.

      Center Property is defined in the recitals hereto.

      Environmental Laws means all federal, state and local laws and ordinances
now or hereafter governing the environment or health and safety, including those
related to toxic or hazardous substances and other contaminants.

      Escrow Agent is defined in Section 10.01.

      Grand is defined in the preamble hereto.

      Hazardous Materials means all substances now or hereafter designated or
otherwise considered toxic, hazardous or otherwise deleterious under any
Environmental Law.

      Lease and Leases are defined in Section 4.01.1(g).

      Material Title Defect means a defect in the condition of title of the Rear
Parcel or the Center Property created by Cable subsequent to the date of the PTR
other than a Permitted Title Exception,

                                       31

<PAGE>   32

which is not cured by Cable in accordance with the provisions regarding notice
and opportunity to cure as set forth in the definition of Breach.

      McDonald's Covenant is defined in Section 3.

      McDonald's Lease means that Store Lease dated January 1, 1994 between
Martin Cable and McDonald's Corporation, as amended May 12, 1994.

      Narang Lease means that Shopping Center Lease dated             , 19  ,
between Martin Cable and Sartja Narang.

      North Easement is defined in Section 1.01.2.

      OPC Lease means a lease for an OPC kiosk on a portion of the Center
Property. The OPC Lease shall be in substantially the same form as that Lease
between Cable and Resort Management Solutions, LLC, dated May 18, 2000
previously delivered by Cable to Grand.

      Option and Options are defined in Section 1.01.1.

      Option Notice is defined in Section 1.05.

      Option Period is defined in Section 1.02.

      Permitted Title Exceptions is defined in Section 3.

      Person means any person or entity or any combination thereof.

      PTR is defined in Section 3.

      Purchase Price is defined in Section 2.01.

      Rear Parcel means the Access Easement and the Rear Property.

      Rear Property is defined in the recitals hereto.

      Sign Lease is defined in Section 8(c).

                                       32

<PAGE>   33

                                   SECTION 22

                                  COUNTERPARTS

      This Agreement may be executed in any number of counterparts, each of
which when executed and delivered shall be an original, but all such
counterparts shall constitute one and the same Agreement. Any signature page of
this Agreement may be detached from any counterpart without impairing the legal
effect of any signatures thereon, and may be attached to another counterpart,
identical in form thereto, but having attached to it one or more additional
signature pages.

      Nothing herein shall be deemed to modify or amend any obligation or right
under the Original Option Agreement which accrued prior to the effective date of
this Amended and Restated Option Agreement or to release any party from, or deny
any party the benefit of, any provision of said Original Option Agreement or to
waive any provision thereof or default thereunder. No option payments made for
periods prior to June, 2000, shall be applied against the Purchase Price. Each
party hereby represents and warrants to the other party that it has no knowledge
of any breach of the Original Option Agreement by such other party.

      IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Option Agreement as of the day and year written above.

      Cable:                                 Grand:

      Cable Family Trust                     Grand Casinos Nevada I, Inc.,
                                             a Minnesota corporation

      By: Martin J. Cable                    By:
          ------------------------              -----------------------
          Martin J. Cable, Trustee
                                             Its:
                                                 -----------------------

      By: Olga B. Cable
          -----------------------
          Olga B. Cable, Trustee

                                       33

<PAGE>   34
                                MEMORANDUM OF THE
                      AMENDED AND RESTATED OPTION AGREEMENT

         Concurrently herewith the undersigned have entered into an Amended and
Restated Option Agreement pursuant to which the Trustees of the Cable Family
Trust have granted to Grand Casinos Nevada I, Inc. the option to purchase that
property described on Exhibit A attached hereto and incorporated herein by
reference ("Option Parcel").

         The option expires if it has not been exercised by January 2, 2003.

         This Memorandum may be executed in any number of counterparts, each of
which when executed and delivered shall be an original, but all such
counterparts shall constitute one and the same document. Any signature page of
this Memorandum may be detached from any counterpart without impairing the legal
effect of any signatures thereon, and may be attached to another counterpart,
identical in form thereto, but having attached to it one or more additional
signature pages.

         Dated as of June 1, 2000.

                                        CABLE FAMILY TRUST

                                        By: Martin J. Cable, Trustee
                                            ------------------------
                                            Martin J. Cable, Trustee

                                        By: Olga B. Cable, Trustee
                                            ------------------------
                                            Olga B. Cable, Trustee

                                        GRAND CASINOS NEVADA I, INC.,
                                        a Minnesota corporation

                                        By:
                                            ------------------------
                                        Its:
                                             -----------------------
                                             Lyle Berman, CEO

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