Document:

<PAGE>
                                                                 EXHIBIT 10.10.9

Recording Requested by and   )
When Recorded Mail to:       )
                             )
Public Employees' Retirement )
System of Nevada             )
693 West Nye Lane            )
Carson City, Nevada 89701    )
--------------------------------------------------------------------------------
                   (Space above this line for Recorder's Use)

        LEASE AMENDMENT, ESTOPPEL CERTIFICATE AND CONSENT TO ASSIGNMENT
                             (MASONIC LODGE LEASE)

TO:       Public Employees' Retirement System of Nevada ("PERS"); Fremont and
          Third Limited Partnership, a Nevada limited partnership
          ("Fremont"); Sundance Hotel Group Limited Partnership, a Nevada
          limited partnership ("Sundance"); and Lincoln Management Company
          South, a Nevada corporation ("Lincoln"), as general partner of
          Fremont and Sundance.

RE:       Lease dated July 21, 1954, by and between H. John Gluskin, as Lessee,
          and Las Vegas Lodge No. 32, Free and Accepted Masons of Las Vegas,
          Clark County, Nevada, as Lessor, which Lease, Lessee represents to
          Lessor, was recorded on July 27, 1954, in Book 17 as Document No.
          16355, Clark County, Nevada Records; said Lease having been amended by
          that certain Amendment to Lease Agreement, dated July 24, 1954, which
          Amendment to Lease Agreement, Lessee hereby represents to Lessor, was
          recorded on July 27, 1954, in Book 17 as Document No. 16356; said
          Lease having been amended by the certain Supplemental Agreement of
          October 14, 1954, which Supplemental Agreement, Lessee hereby
          represents to Lessor, was recorded on February 4, 1955, in Book 39 as
          Document No. 34334; said Lease having been amended by that certain
          Articles of Amendment dated July 7, 1973, which Articles of Amendment,
          Lessee hereby represents to Lessor, was recorded on June 19, 1973, in
          Book 338 as Document No. 297840; said Lease having been amended by
          that certain Amendment to Lease dated April 18, 1979, which Amendment
          to Lease, Lessee hereby represents to Lessor, was recorded on
          April 18, 1979, in Book 1041 as Document No. 1000779 and 1000780; the
          Lessee's interest in said Lease having been assigned to David
          Goldwater by that certain Assignment of Lease dated July 27, 1954,
          which Assignment of Lease, Lessee hereby represents to Lessor, was
          recorded on July 27, 1954, in Book 17 as Document No. 16359 and
          re-recorded on July 29, 1954, in Book 17 as Document No. 16523; said
          Lessee's interest in the said Lease having been assigned to David
          Goldwater by that certain Assignment of Lease, dated February 2, 1955,
          which Assignment of Lease, Lessee hereby represents to Lessor, was
          recorded
<PAGE>
          on February 4, 1959, in Book 39 as Document No. 34335; the Lessee's
          interest in said Lease having been assigned to Three-O-One
          Corporation, a Nevada corporation, by that certain Assignment of
          Lease, dated January 31, 1955, which Assignment of Lease, Lessee
          hereby represents to Lessor, was recorded on February 1, 1955, in
          Book 39, as Document 33943 and on February 4, 1955, in Book 39, as
          Document No. 34336; and Lessee's interest in the said Lease having
          been assigned to Nevada Building Company by that certain Assignment of
          Lease, dated August 7, 1972, which Assignment of Lease, Lessee hereby
          represents to Lessor, was recorded on August 11, 1972, in Book 254 as
          Document No. 213615; said Lessee's interest in said Lease having been
          assigned to M. B. Dalitz by that certain Assignment of Lease dated
          April 18, 1979, which Assignment of Lease, Lessee hereby represents to
          Lessor, was recorded on April 18, 1979, in Book 1041, as Document No.
          1000778 and re-recorded on April 26, 1979, in Book 1045 as Document
          No. 10004574; said Lease having been amended by that certain Amendment
          to Lease dated April 18, 1979, which Amendment to Lease, Lessee hereby
          represents to Lessor, was recorded on April 18, 1979, in Book 1041 as
          Document No. 1000780; the Lessee's interest in said Lease having been
          assigned to Moe B. Dalitz, Trustee under "The M. B. Dalitz Revocable
          Trust" dated January 25, 1980, by that certain Assignment of Leases,
          dated June 13, 1980, which Assignment of Leases, Lessee hereby
          represents to Lessor, was recorded on September 12, 1980, in Book 1280
          as Document No. 1239412; said Lease having been amended by that
          certain Amendment to Masonic Ground Lease dated December 20, 1982,
          which Amendment to Masonic Ground Lease, Lessee represents to Lessor,
          was recorded on January 5, 1983, in Book 1669 as Document No. 1628017;
          said Lease covering the Premises located in Las Vegas, Clark County,
          Nevada, more particularly described as:

                    Lots One (1), Two (2), Three (3) and
                    Four (4) in Block Thirty (30) of CLARK'S
                    LAS VEGAS TOWNSITE, as shown by map thereof
                    on file in Book 1 of Plats, page 37, in the
                    Office of the County Recorder of Clark
                    County, Nevada.

                    TOGETHER WITH that certain alley vacated by
                    the City of Las Vegas, recorded April 9,
                    1979 as Document No. 995695 in Book 1036
                    of Official Records, Clark County, Nevada
                    as follows:

                    That portion of that certain Northwest-
                    Southwest alley in Block Thirty (30) of
                    CLARK'S LAS VEGAS TOWNSITE, as shown by

                             2
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                    map thereof on file in Book 1 of Plats, page 37, in the
                    Office of the County Recorder of Clark County, Nevada,
                    described as follows: COMMENCING at the Southwesterly corner
                    of Lot One (1) in Block Thirty (30) of said CLARK'S LAS
                    VEGAS TOWNSITE; THENCE Southeasterly along the Southerly
                    line of Lots One (1) through Four (4) of said Block Thirty
                    (30) a distance of 100 feet to a point; THENCE at right
                    angles to the Southwesterly line of said lots a distance of
                    10 feet to a point; THENCE Northwesterly and parallel to the
                    Southwesterly line of Lots One (1) through Four (4) in Block
                    Thirty (30) a distance of 100 feet to a point; THENCE
                    Northeasterly a distance of 10 feet to the TRUE POINT OF
                    BEGINNING.

          (the "Premises").

Gentlemen:

          The undersigned certify and represent unto PERS, Fremont, Sundance,
and Lincoln, in respect of the Lease, as follows:

          (i)  The undersigned are owners of record of the Premises, and each of
them certifies such on behalf of himself or herself only and that he or she is
duly authorized to execute and deliver this Lease Amendment, Estoppel
Certificate and Consent to Assignment.

          (ii) The undersigned, collectively, are the current Lessor under the
Lease, and each of them certifies, on behalf of himself or herself only, that he
or she has not assigned or agreed to assign his or her interest as a Lessor
under the Lease in whole or in part. The current address for notices, demands,
and communications to the Lessor under the Lease is as follows:

                                        Las Vegas Lodge No. 32
                                        Free and Accepted Masons of
                                        Las Vegas, Nevada, by

                                        /s/ Arthur E. McPherson
                                        ----------------------------------------
                                        32 XXX XXX
                                        ----------------------------------------
                                        Las Vegas, Nevada XXX
                                        ----------------------------------------
                                        TRUSTEE

                                                       and

                                        /s/ XXX E. Christopher
                                        ----------------------------------------
                                        XXX
                                        ----------------------------------------
                                        Las Vegas, Nevada XXX
                                        ----------------------------------------
                                        TRUSTEE

                                       3

<PAGE>

                                                       and

                                        /s/ XXX
                                        ----------------------------------------
                                        XXX
                                        ----------------------------------------
                                        Las Vegas, Nevada XXX
                                        ----------------------------------------
                                        TRUSTEE

          (iii)     To the best knowledge of the undersigned, the M. B. Dalitz
Revocable Trust is the current Lessee under the Lease and is entitled to all
rights and benefits of the Lessee under the Lease.

          (iv)      The Leased Property is the Premises as set forth above.

          (v)       Attached hereto as Exhibit "A", and incorporated herein by
this reference, is a true, correct and complete copy of the Lease, as in effect
as of the date hereof; and the Lease constitutes the entire agreement between
Lessor and Lessee and has not been in any respect modified, altered or amended,
except as set forth above.

          (vi)      The Lease is in full force and effect, and, to the best of
Lessor's knowledge and belief, the Lessee is not in any respect in default under
the terms and provisions of the Lease (nor is Lessor aware of any fact or
condition which, with notice or the passage of time or both, will become such a
default); provided, however, that Lessor does not waive its right to assert a
default under the terms and provisions of the Lease for any default occurring
after the date hereof. In the event that, unbeknownst to Lessor, Lessee is in
fact in default under the Lease as of the date hereof, Lessor's remedies with
respect to any such existing default shall be limited to an action for damages
and/or specific performance against Lessee and/or Fremont, and Lessor shall not
terminate the Lease on account of any such existing default.

          (vii)     Lessee has accepted possession of the Premises and is
paying rent on a current basis.

          (viii)    The term of the Lease commenced on 12:00 noon August 1,
1955, and, subject to the terms and conditions of the Lease, will end at 12:00
noon on August 1, 2018.

          (ix)      The rent under the Lease is currently $125,000.00 per year.
Such amount is to be paid annually to the Lessor at the place set forth in (ii)
above, subject to change by Lessor of place as provided in the Lease. Without
limitation of any other payment or other obligations of Lessee under the Lease,
Lessee also must pay all real property taxes assessed against the Premises.

          (x)       To the best of Lessor's knowledge and belief, Lessor has no
present set-offs, claims or defenses to the enforcement of the Lease and no
present reason, claim, or grounds to terminate the Lease or declare a default
thereunder. In the

                                       4

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event that, unbeknownst to Lessor, Lessor in fact has a present set-off, claim
or defense to the enforcement of the Lease or a present reason, claim or ground
to terminate the Lease or declare a default thereunder as of the date hereof,
Lessor's remedies with respect to the enforcement of any same shall be limited
to an action for damages and/or specific performance against Lessee and/or
Fremont, and Lessor shall not terminate the Lease on account thereof.

     (xi) The sum of $125,000.00 as and for rent, has been paid by Lessee in
advance for the period from August 1, 1987 to August 1, 1988.

     (xii) No portion of any security deposit has been applied to cure any
default under the Lease.

     (xiii) To the best of Lessor's knowledge and belief, (a) there are no
uncured defaults by Lessee under the Lease, and (b) the insurance presently
maintained by the Lessee complies with all requirements of the Lease.

     (xiv) Lessor hereby approves and consents to the assignment of the Lessee's
interest in the Premises and Lessee's interest in the Lease by Lessee to
Fremont; provided, however, that such approval and consent shall not release any
obligation of Lessee any other person or entity under the Lease, that,
notwithstanding such approval and consent, Lessee and any other persons and
entities liable under the Lease shall remain fully liable for the obligations of
the Lessee under the Lease during the remaining term of the Lease, and that
Fremont shall assume the obligations of the Lease as hereinafter provided for
from and after the effective date of Lessee's assignment to Fremont to and until
such time as Fremont shall properly assign (after obtaining any consent or
approval from Lessor that may then be required under the Lease) its interest in
the Premises and the Lease, at which time Fremont shall be released and
discharged from any and all obligations of the Lease that may thereafter accrue
and any further obligation to Lessor that may thereafter arise; and provided
further that no such release and discharge of Fremont from said Lease
obligations and no such consent and approval by Lessor to such an assignment by
Fremont of its interest in the Premises and the Lease shall release any
obligation of Lessee under the Lease.

     (xv) Lessor's consent to and approval of said assignment shall in no manner
be construed to constitute a subordination of or agreement to subordinate
Lessor's reversionary interest in the Premises or a waiver or modification of
any rights of Lessor under the Lease and, in particular, and without limitation
of the foregoing, shall not be deemed a waiver of (a) the provisions of the
Lease that generally prohibit assignments, subleases and other transfers of
interests under the Lease or of the applicability of said provisions to any
other or future transaction, or (b) the provisions of the hereinabove mentioned
Amendment to the Masonic Ground Lease that provide, inter alia, for PERS to
maintain at all times a $1,000,000.00

                                       5

<PAGE>
cash fund as security for the performance of Lessee's obligations under the
Kramer, Ham and Masons Ground Leases (as defined in Said Amendment to Masonic
Ground Lease), it being expressly understood and agreed that said $1,000,000.00
cash fund shall remain in existence, in accordance with the requirements of said
Amendments to Masonic Ground Lease, at all times during the term of the Lease.

     (xvi) Lessor has been advised that Lessee intends to sell and assign
Lessee's right, title and interest in and to, among other things, that complex
commonly known as the Sundance Hotel and Casino, Las Vegas, Nevada (the
"Sundance Property") (including, without limitation, all of Lessee's right,
title and interest in the leasehold estate in the Premises pursuant to the
Lease, except that Lessee shall continue to remain liable to Lessor under the
Lease) to Fremont pursuant to a certain Purchase Agreement (hereafter, "the
Purchase Agreement") a copy of which Purchase Agreement, as amended, has been
furnished to Lessor, and Lessor has been further advised that PERS and Fremont
have required the delivery of this lease Amendment, Estoppel Certificate and
Consent of Assignment by the Lessor in connection with such acquisition.
However, it is understood and agreed that, notwithstanding anything to the
contrary in Section 3 of the Purchase Agreement, as amended, or otherwise,
Lessor's execution of this Lease Amendment, Estoppel Certificate and Consent to
Assignment shall not constitute an agreement on the part of Lessor to consent to
any further amendment to or assignment, sublease or other transfer of the lease,
any refinancing of any indebtedness relating to the Premises or any other
transaction other than Lessee's assignment of the Lease to Fremont as
contemplated herein and the amendment to the Lease hereunder to increase the
annual rental under the Lease, as provided for below, and Lessee, Fremont and
all other signatories hereto and persons and entities mentioned herein, by
signing or accepting the benefits of this document, acknowledge and agree that
Lessor is undertaking no obligation to agree to any such thing.

     (xvii) So long as the same may be lawful, Lessor approves of the nature and
the use, as a hotel and gambling casino with related restaurant and bar
facilities, of all improvements placed on the Premises and related property,
including the contiguous nature of the Sundance Hotel and Casino and the parking
structure, and the Pioneer Citizen's Bank of Nevada building, and their use in
conjunction with adjacent properties.

     In consideration for Lessor's consenting hereunder to the assignment of
Lessee's interest in the Premises and the Lease to Fremont, it is agreed by
Lessor, Lessee and Fremont that, effective on the date as of which said
assignment becomes effective the annual rental under the Lease shall be
increased from $125,000.00 to $128,125.00.

                                       6

<PAGE>
     The increase in the annual rental provided for herein shall be prorated
for that year based on the number of days in that year occurring on or after
the date on which such assignment becomes effective. Except as amended by this
paragraph, the Lease shall remain in full force and effect in accordance with
its terms.

     As required by Sections 3 and 12 of the Purchase Agreement by and between
Fremont as "Buyer" and Lessee as "Seller" for the purchase and sale of the
Sundance Property, the increase in the annual rental under the Lease from
$125,000.00 to $128,125.00 or $3,125.00, shall be off-set at the rate of
one-twelve (1/12) thereof monthly by Fremont against monthly rent due and
payable to Lessee pursuant to Section 12.02.5 of the Purchase Agreement and the
Parking Lot Lease, which off-set shall be provided for by Amendment to Section
12.02.5 of the Purchase Agreement and by the terms of the Parking Lot Lease for
corresponding reductions of the monthly rental payment by Fremont as "Buyer" to
Lessee as "Seller" pursuant to the Parking Lot Lease. The provisions of the
preceding sentence are matters between Lessee and Fremont that shall be of no
concern to Lessor and shall not affect either Lessee's or Fremont's liability
(as elsewhere provided for herein) for the payment of the full rental that may
be payable from time to time under the Lease, as amended hereby.

     Lessor makes the above statements for the benefit and protection of
Fremont, Sundance and Lincoln, knowing that they will rely on the same in
acquiring the right, title, and interest of Lessee in and to the leasehold
estate upon the Premises pursuant to the Lease and that PERS will rely on the
same in approving Fremont's acquisition of the Sundance Property under the
Purchase Agreement subject to certain indebtedness to PERS on the Premises.
However, this Lease Amendment, Estoppel Certificate and Consent to Assignment
shall be effective upon, and only upon, the delivery to Lessor of an original
duly executed by all persons and entities whose signatures are provided for
below.

     DATED as of October 23, 1987.
                 ----------

                                    LESSOR:

                      /s/ ARTHUR E. MCPHERSON
                      ------------------------------------
                      Trustee

                      /s/ XXX
                      ------------------------------------
                      Trustee

                      /s/ XXX
                      ------------------------------------
                      Trustee

                                       7
<PAGE>
                      AGREEMENT AND ASSUMPTION OF ASSIGNEE
                      ------------------------------------

     The undersigned, Fremont and Third Limited Partnership, hereby agrees to
the terms and conditions of the foregoing lease Amendment, Estoppel Certificate
and Consent to Assignment and hereby assumes the Lease (as defined above) and
agrees to be jointly and severally liable with the Lessee (as defined above)
for the performance of all covenants and obligations of the Lessee under the
Lease to the extent provided for in paragraph (xiv) of said Lease Amendment,
Estoppel Certificate and Consent to Assignment.

                    DATED as of --------------------, 1987.

                     FREMONT AND THIRD LIMITED PARTNERSHIP,
                     a Nevada limited partnership

                     By:  LINCOLN MANAGEMENT COMPANY SOUTH,
                          a Nevada corporation, its sole
                          general partner

                                   By:
                                        ---------------------------------

                                   Its:
                                        ---------------------------------

                      AGREEMENT AND UNDERTAKING OF LESSEE
                      -----------------------------------

     The undersigned, M. B. Dalitz Revocable Trust, as Lessee under the Lease,
as defined in the foregoing Lease Amendment, Estoppel Certificate and Consent
to Assignment, hereby agrees to the terms and conditions of said instrument
(including, without limitation, the provisions thereof that increase the basic
monthly rental under the Lease) and undertakes to be and remain at all times
liable to the Lessor under the Lease for the performance of all covenants and
obligations of the Lessee under the Lease, which liability shall be joint and
several with the assignee referred to in said instrument for as long as said
assignee shall be liable under the Lease, but which liability shall survive,
and be unaffected by, any release of said assignee from liability under
paragraph (xiv) of said instrument.

                       DATED as of      XXX      , 1987.
                                   --------------

                                             M.B. DALITZ REVOCABLE TRUST

                                             By: /s/ M. B. Dalitz
                                                 ------------------------------
                                                      M. B. Dalitz, Trustee

                                       8
<PAGE>
                      CONSENT AND ASSIGNMENT OF GUARANTOR
                      -----------------------------------

     The undersigned, M. B. Dalitz, individually, as the guarantor under that
certain Guaranty and Agreement executed by him under date of December 20, 1982,
in favor of the Lessor under the above-referenced Lease (the "Guaranty
Agreement"), hereby consents to the terms of the foregoing Lease Amendment,
Estoppel Certificate and Consent to Assignment, to the assignment of said Lease
consented to by Lessor thereunder and to the increase in basic monthly rental
provided for therein. Said M. B. Dalitz further agrees that the terms and
conditions of the Guaranty Agreement shall remain in full force and effect as
to the aforesaid Lease and that neither Lessor's execution of the foregoing
lease Amendment, Estoppel Certificate and Consent to Assignment, nor the
assignment of said Lease consented to thereby, nor the increase in basic
monthly rental provided for therein, nor the failure of Lessor to obtain any
consent from any other guarantor under the Guaranty Agreement (said M. B.
Dalitz being aware of and agreeing to the fact that Lessor does not intend to
seek the consent of any such other guarantor) shall operate to release,
exonerate or in any way affect the guarantees, promises or obligations of
whatsoever kind undertaken by said M. B. Dalitz pursuant to the Guaranty
Agreement.

                DATED as of October 28th, 1987.
                            ------------

                                                   /s/ M. B. Dalitz
                                                   --------------------------
                                                   M. B. Dalitz

                                       9
<PAGE>
                         CONSENT AND AGREEMENT OF PERS
                         -----------------------------

     The undersigned, Public Employees Retirement System of Nevada ("PERS"), as
the beneficiary under that certain Deed of Trust and Assignment of Rents
securing payment of the Sundance Loan (as defined in the Amendment to Kramer
Ground Lease Referred to in the foregoing Lease Amendment, Estoppel Certificate
and Consent to Assignment), hereby consents to the execution of the foregoing
Lease Amendment, Estoppel Certificate and Consent to Assignment by Lessor, as
defined in said instrument, to the assignment of Lease consented to by Lessor
under said instrument, and to the increase in basic monthly rental provided for
in said instrument and agrees that the same shall not affect any obligation of
PERS to Lessor under the aforesaid Amendment to Kramer Ground Lease.

DATED as of Oct 26, 1987.
            ------

                                                     PUBLIC EMPLOYEES RETIREMENT
                                                     SYSTEM OF NEVADA

                                                     By: /s/ Wilbur K. Keating
                                                         ----------------------

                                                     Its: Executive Director
                                                          ------------------

LS/20/gmm

                                       10
<PAGE>
                                   EXHIBIT A

                                LEASE AGREEMENT

     THIS INDENTURE, made and entered into this 21st day of July, A.D., 1954, by
and between LAS VEGAS LODGE NO. 32, FREE & ACCEPTED MASONS, of Las Vegas, Clark
County, Nevada, a body corporate and politic, incorporated under and pursuant to
an Act to incorporate the Grand Lodge of Free & Accepted Masons, and its
subordinate lodges in the State of Nevada, approved March 3, 1865, as amended,
Party of the First Part and Lessor hereinafter designated as the Lessor; and H.
JOHN GLUSKIN of Los Angeles, California, Party of the Second Part and Lessee,
hereinafter designated as the Lessee;

                              W I T N E S S E T H:
                              - - - - - - - - - -
                                       I

     THAT the Lessor, for and in consideration of the rents, taxes, assessments,
obligations, terms and conditions hereinafter specified to be kept and performed
by the Lessee, does hereby devise, lease and let unto said Lessee, and the
Lessee hereby hires and takes from the said lessor, the real property situated,
lying and being in the City of Las Vegas, Clark County, Nevada, described as
follows:

     Lots One (1), Two (2), Three (3), and Four (4) in Block Thirty (30),
     Clark's Las Vegas Townsite, as recorded in Book One (1) of Plats on page 37
     in the office of the County Recorder for Clark County, Nevada; to which
     record reference is hereby made for a more detailed description of the said
     lots.

     Together with all and singular the buildings and improvements thereon
     situated and the tenements, hereditaments and appurtenances thereunto
     belonging or in anywise appertaining.

     TO HAVE AND TO HOLD the same for the term of sixty-three (63) years,
beginning at the hour of 12:00 noon on the 1st day of AUGUST, 1955, provided,
however, if the Lessee shall

                               EXHIBIT "C" PAGE 1

<PAGE>

erect a building upon said premises, and complete said building prior to said
date last above mentioned, then and in such event, the terms of this lease shall
commence at 12:00 noon upon the day of completion of said building, and in
either event shall continue for sixty-three (63) years thereinafter.

                                       II

     The Lessee agrees to pay to the Lessor as rental for said premises the
following sum and amounts at the times and in the manner following, to-wit:

                         An annual rental of Fifteen Thousand Dollars
                         ($15,000.00) lawful money of the United States per year
                         for the first five (5) years of said term; an annual
                         rental of Twenty Thousand Dollars ($20,000.00) per year
                         for each of the sixth (6th) to and including the tenth
                         (10th) years of said term; and an annual rental of
                         Twenty Five Thousand Dollars ($25,000.00) per year for
                         each of the eleventh (11th) to and including the
                         sixty-third (63rd) years of said term. Said annual
                         rentals shall be paid in annual installments in advance
                         on the first (1st) day of August of each year during
                         the full term of this lease, except that on the
                         execution of this lease the rentals for the first (1st)
                         year and the sixth (6th) year of the duration of this
                         term are due and payable immediately, and of which
                         said payment of Thirty Five Thousand Dollars
                         ($35,000.00) the Five Thousand Dollars ($5,000.00)
                         theretofore deposited by the Lessee in the Bank of
                         Nevada, main office at 200 South Fifth Street, Las
                         Vegas, Nevada, to the credit of the Lessor as earnest
                         money shall be credited, leaving an actual balance of
                         Thirty Thousand Dollars ($30,000.00) then to be paid on
                         said rentals for the said first (1st) and sixth (6th)
                         years of the term of this lease.

                         However, if such total rentals of Thirty Five Thousand
                         Dollars ($35,000.00) are not so paid by said Lessee,
                         then and in that event said Five Thousand Dollars
                         ($5,000.00) earnest money shall be forfeited to and
                         become the sole property of Lessor as liquidated and
                         agreed damages for the failure of the Lessee to make
                         said payments as and when they have become due under
                         the terms of this agreement.

                                      III

                         The Lessee further covenants and agrees to and with the
Lessor as follows:

     (a)  The Lessee will wreck all buildings now located upon

                               EXHIBIT "C" PAGE 2

<PAGE>

said leased premises and thereafter construct a new Class A fireproof building
upon said premises, having at least two stories. The said work of wrecking shall
begin within ninety (90) days from the execution of this lease, and said new
building shall be completed within one and one-half years (1 1/2) from the
execution of this lease. Said new building shall conform to plans and
specifications which must be submitted to and approved by an architect to be
selected by Lessor, who shall also inspect said building, when requested by
Lessor, to see that said plans and specifications are complied with. That said
building shall cover the entire area of the four lots hereby leased, except such
part or parts thereof as are necessary for setbacks and to have said building
conform to all space requirements provided for, or required by the Building
Code, ordinances and/or other regulations of the City of Las Vegas, the laws of
the State of Nevada, and said building shall, in all respects, conform to all
requirements and ordinances of said City of Las Vegas, the laws of the State of
Nevada and of the United States of America, or either of them which are
applicable to the construction of buildings such as the one to be built by the
Leasee.

     (b) Before the Lessee shall commence to wreck either of the buildings now
upon said premises, and before Leasee shall commence to construct said new
building, or any part thereof, the Lessee will execute and deliver to said
Lessor an indemnity bond in a sum equal to the said architect's estimate of the
cost of such wrecking work and completion of said new building, which bond shall
be executed by the Lessee as principal, and by a responsible surety company
authorized to do business in the State of Nevada as surety, or by other sureties
satisfactory to the Lessor. Said bond shall be conditioned that the Lessee shall
proceed forthwith with said wrecking and construction work and shall complete
the erection of said new building

                             EXHIBIT "C" PAGE 3

                                      -3-
<PAGE>

within one (1) year from the commencement thereof, and shall also be conditioned
for performance by the Leasee of all agreements contained in this lease
applicable to such wrecking of said old building and erection of said new
building, said bond to be discharged by the Lessor upon the completion of said
wrecking work and erection of said new building, free and clear of all liens and
the expiration of the time within which liens therefor could be asserted.

     (c) That in the wrecking of said old building and in the construction of
said new building, as well as in the construction of any other building or
buildings which Lessee may erect on said leased premises the said Lessee will
fully protect said Lessor against any lien or rights to liens and from any
claims of contractors, subcontractors, mechanics, laborers, materialmen or any
other persons, and any and all other claims or liens by reason of the wrecking
or construction of said buildings, or of any of them, and the Leasee agrees to
save Lessor harmless from, and hereby indemnifies Lessor against, any and all
injury and loss which Lessor may suffer by reason of any such lien, right or
claim, including attorneys' fees, court costs and expenses.

     In addition to the bond provided for in Section III (b) Lessee, before
destroying or commencing to erect any new building or structure, alteration or
repair, other than any building mentioned in said Section III (b), costing in
excess of $10,000.00, shall furnish Lessor with an indemnity bond conditioned
and executed as provided in said Section III (b), and shall obtain Lessor's
written consent to said work.

     (d) The construction of the new building or buildings which may be
erected by the said Lessee will be modern and substantial and shall in every
respect comply with the regulations, ordinances and laws, municipal or
otherwise, that may

                               EXHIBIT "C" PAGE 4

                                      -4-
<PAGE>

          govern the construction of the same; and Lessee will save Lessor
          harmless of and from any loss or damage by reason of the removal or
          destruction of the buildings now on said premises or the construction
          of the new building or buildings which may be made by Lessee and by
          reason of any mechanic's liens or incumbrances of any kind or nature
          created or claimed by reason of any acts of the said Lessee done or
          performed by reason of or under authority of this lease.

               (e)  That Lessee will pay all garbage and sewer fees, in addition
          to the said rent reserved, all rates, taxes, charges for revenue and
          otherwise, assessments and levies, general and special, ordinary and
          extraordinary, of every name, nature and kind whatsoever, including
          water rates, which may be taxed, charged, assessed, levied or imposed
          upon said premises, or upon any and all buildings and improvements
          thereon, and all which may be assessed, levied or imposed upon the
          leasehold estate hereby created and upon the reversionary estate in
          said premises during the term hereby granted, and so long thereafter
          as said Lessee, his successors and assigns, shall occupy said demised
          premises; which premise and agreement is a further consideration for
          the leasing and demising of the premises and property described
          herein.

               (f) That Lessee shall pay when due all taxes and assessments
          levied and assessed against said leased property and/or against the
          improvements to be placed upon said leased premises by the Lessee, and
          upon all personal property therein belonging to Lessee, which may be
          levied or assessed during the life of this lease; except that Lessor
          will pay when due all taxes levied and assessed upon the said leased
          premises for the year 1954.

               (g) During the wrecking of said old buildings and the erection of
          said new building, and until completion thereof,

                               EXHIBIT "C" PAGE 5

                                      -5-
<PAGE>

          Lessee will carry public liability insurance not less than Two Hundred
          Thousand Dollars ($200,000.00) for injury or death of one person, and
          not less than Four Hundred Thousand Dollars ($400,000.00) for each
          accident; and property damage insurance of Twenty Five Thousand
          Dollars ($25,000.00); thereafter during the term of this lease Lessee
          will carry public liability insurance upon said premises not less than
          Fifty Thousand Dollars ($50,000.00) for injury or death of one person
          and not less than one Hundred Thousand Dollars ($100,000.00) for each
          accident, and property damage insurance of Ten Thousand Dollars
          ($10,000.00). Lessee will pay when due all premiums on said insurance
          and keep the same in force during the life of this agreement.

               (h) The Lessee agrees that he will at all times during the term
          of this lease, at his own expense, carry insurance on the buildings
          from time to time on said premises against loss or damage by fire, or
          lightning, or earthquake, or tornado, in the aggregate amount of at
          least eighty percent (80%) of the insurable value thereof; all such
          insurance against fire, lightning, earthquake or tornado shall be
          written and maintained in responsible companies satisfactory to the
          Lessor, and loss thereunder in all such policies shall be made payable
          in all cases to the Lessor. Said insurance policies shall from time to
          time as written be delivered to the Lessor, and the same shall always
          be so written and delivered at least ten days before the expiration of
          the prior insurance policies covering the same property, and the
          entire proceeds thereof, in case of loss, are to be paid to the
          Lessor, to be held as collateral security for the payment to the
          Lessor of the rent, taxes and assessments due or that may become due
          under the terms of this lease and for the payment of any and all
          obligations of the Lessee to the Lessor under this lease, and for the
          repairing, restoration and rebuilding of the building or buildings on
          account of the injury or destruction of which such insurance moneys
          have been paid. Out of the proceeds of such

                               EXHIBIT "C" PAGE 6

                                      -6-

<PAGE>

insurance policies collected and received by the Lessor, there shall be first
paid to the Lessor for its own use and benefit all sums then due and payable by
the Lessee under this lease, or which may become due and payable from the
Lessee under this lease while said moneys are so held by the Lessor, and the
surplus of such proceeds, if any, shall be paid by the Lessor to the Lessee
when the Lessee shall have repaired or rebuilt such building or buildings so
injured or destroyed, so that the same are in as good condition as the same
were prior to such injury or destruction, or so that they shall be, when
repaired or rebuilt, of the character and value required by the terms of this
lease.

     Provided, however, that no amount shall be so paid to the Lessee until
after the completion of such repairing or rebuilding and the payment by the
Lessee for all labor and materials used or furnished in such rebuilding or
repairing, and the payment by the Lessee of all claims and demands on account of
such repairing and rebuilding, and until the Lessee has furnished to the Lessor,
satisfactory evidence that all claims and demands for labor or material used or
furnished in repairing or rebuilding such building or buildings have been paid
in full, and that no claim or lien can accrue or be enforced against such
building or buildings or said demised premises on account thereof. Lessee will
pay when due all premiums on said insurance and keep the same in force in some
reputable fire insurance company or companies during the life of this agreement.

     (i) In case any of the buildings now or hereafter placed on said demised
premises are injured or destroyed or rendered untenantable by fire, the elements
or any other cause, such destruction or injury shall not operate to terminate
this lease, but this lease shall continue in full force and effect, but the
Lessee must thereupon repair or rebuild at the time and in the manner as in this
lease provided.

                               EXHIBIT "C" PAGE 7

                                      -7-
<PAGE>

     (j) That Lessee will save harmless and indemnify the Lessor from and
against all loss, liability, or expense that may be incurred by reason of any
accident occurring on the premises, and from any damages, neglect or
misadventure arising from or in any way growing out of the use, misuse or abuse
of the city water, plumbing, electric current, gas mains or any obstructions on
or adjacent to said premises and property; nor will said Lessee make or suffer
any unlawful, improper or offensive use of the premises, or any use or
application thereof contrary to any ordinance of the City of Las Vegas, or any
law of the State of Nevada, or of the United States of America, or which shall
be injurious to any person or property of any person using or occupying said
premises as an employee or guest of the said Lessee; nor will said Lessee use,
sublease, or sublet any building so to be constructed on said leased premises,
or any part thereof, to be used for saloon or gambling purposes, save and except
that slot machines and similar devices are not included within such prohibition,
and in the event a hotel is constructed on said leased premises, which by the
ordinances of the City of Las Vegas now in force or hereafter to be enacted is
allowed to operate a bar or cocktail room or rooms in connection with the
operation of said hotel, then and in such event such operation of bar or
cocktail room by or under the supervision of such hotel is not prohibited;
neither the sale of packaged whiskey, liquors, ales, wines or beers to be
carried away by the purchaser by a duly licensed drugstore is prohibited.

     (k) The Lessee shall pay all charges of the architect to be selected by
Lessor for the examination and approval of said plans and specifications, and
such further services as he may be called upon to perform.

     (l) Lessee shall not demolish, remove or destroy any

                               EXHIBIT "C" PAGE 8

                                      -8-
<PAGE>

          building or buildings which he has theretofore constructed or erected
          on the leased premises until he has given a similar indemnity bond
          conditioned as provided by subdivision (b) of Paragraph III of this
          lease agreement in an amount equal to the estimate of the cost of
          constructing a new building or buildings on said leased premises; that
          is to say after he has once constructed and erected a building or
          buildings on the leased premises such may not be demolished, removed
          or destroyed until a new indemnity bond has been given to protect the
          Lessor as fully as the original indemnity bond protected the Lessor as
          hereinbefore provided.

               (m)  That prior to and in any event within three days after the
          commencement of any work on the said leased premises, said Lessee will
          post in a conspicuous place on said premises, and also shall within
          five days after such posting, file a duplicate original of said posted
          notice with the Recorder of Clark County, Nevada, together with an
          affidavit attached thereto showing such posting of the said original
          notice, filed on behalf of Lessor, which notice shall be that the
          Lessor will not be responsible for the costs and expenses of such
          construction work, and upon the posting and recording of said notice
          and duplicate notice immediately inform the Lessor that said notice
          has been posted and recorded as provided by law, and particularly the
          provisions of the Mechanics Liens Law approved March, 1875, and
          amendments thereto.

               (n)  That at the expiration of this Lease, whether terminated by
          the passage of the time for which the property herein described is
          leased, or by reason of forfeiture or abandonment thereof, or for any
          other reason, the Lessee will peaceably yield up to the Lessor the
          premises, together with all buildings and improvements then thereon,
          in good repair in all respects; reasonable use and wear, and tear, and
          damage by fire, or other

                               EXHIBIT "C" PAGE 9

                                      -9-
<PAGE>

          unavoidable casualty, alone excepted.

               (o)  That all the property of any kind that may be on the
          premises during the continuance of this lease shall be held an kept at
          the sole risk of the Lessee, and the Lessor shall not be liable to the
          Lessee, or any person, for any injury, loss, or damage to property or
          to the person or persons on the said premises; and that no assent,
          express or implied, by the Lessor, to any breach of any of the Lessee
          covenants shall be deemed a waiver of any succeeding breach of the
          same or any other covenant.

               (p)  That in the event Lessee assigns this lease such assignment
          of lease shall be evidenced in writing, duly executed under seal and
          acknowledged by Lessee, and duly recorded in the Recorder's office of
          Clark County, Nevada, whereby and wherein the assignee shall expressly
          accept and assume all the terms and covenants in this lease agreement
          contained to be kept and performed by the Lessee, and agrees to comply
          with and be bound by them; and the said Lessee covenants and agrees no
          assignment will be made, except in the manner and upon the conditions
          as above set forth, and it is agreed and notice is hereby given, that
          any assignment of the said lease or leasehold interest, not in strict
          conformity with these provisions, shall be absolutely null and void.

                                       IV

                    It is further understood and agreed by and between the
          parties hereto as follows:

               (a)  That any installment of rent accruing under the provisions
          of this lease, which shall not be paid when due, or within ten (10)
          days thereafter, shall bear interest at the rate of seven percent (7%)
          per annum from the date when the same was payable until the same shall
          be paid by the Lessee.

               (b)  That the Lessor shall, at its option, have the right

                              EXHIBIT "C" PAGE 10

                                      -10-
<PAGE>

          at all times during said demised term, to pay any fees, taxes,
          assessments, water rates or other charges upon said premises and
          property remaining unpaid for ten (10) days after the same became due
          and payable, and to pay, cancel and clear off all tax sales, liens,
          charges and claims upon or against said demised premises, and to
          redeem said premises from the same, or any of them, from time to time,
          and the amount paid, including reasonable expenses, shall be so much
          additional rent due from the Lessee at the next rent day after such
          payment, with interest thereon at the rate of seven percent (7%) per
          annum from the date of the payment thereof by the said Lessor.

                    It is further provided that the Lessor may advance or pay
          any such fees, taxes, assessments, water rates, or other charges, or
          pay, cancel and clear off any tax sales, liens or charges and claims
          upon and against said demised premises, and it shall not be obligatory
          upon the Lessor to inquire into the validity of any such rate, tax or
          assessment, or other charge, or any such tax sale, before making such
          advances or payments.

               (c) That if default shall be made by the Lessee, in the payment
          of any of the rent herein provided for upon the day the same becomes
          due or payable, and such default shall continue ten (10) days after
          the same became due, or in case any default in relation to liens as
          hereinbefore provided shall continue ten (10) days after service or
          written notice on Lessee demanding the same be removed, or if the
          lessee shall fail to pay any of the fees, taxes or assessments herein
          provided for to be paid by him, within the time herein provided for,
          or in case of the sale or forfeiture of said demised premises, or any
          part thereof, during said demised term, for the nonpayment of any tax,
          rate or assessment, or in case the Lessee shall fail to keep insured
          any building or buildings or improvements which may at any time
          hereafter be erected upon the said premises, as herein provided for,

                              EXHIBIT "C" PAGE 11

                                                                        -11-
<PAGE>

          or fail to spend insurance money as herein provided for, or if he
          shall fail in any of the covenants of this lease by him to be kept or
          performed, then in any or either of such events, it shall and may be
          lawful for the Lessor, at is election, at or after the expiration of
          ten (10) days previous notice in writing requiring in the alternative
          the performance of such condition or covenant, or surrender of the
          property, to declare said demised term ended;

                    and into said demised premises, and the buildings and
          improvements situated thereon, or any part thereof, either with or
          without process of law, to reenter, the said Lessee hereby waiving any
          demand for possession of the demised premises any and all buildings
          and improvements then situated thereon, and the Lessee covenants and
          agrees that upon the termination of said demised term, he will
          surrender and deliver up said above described premises and property
          peaceably to said Lessor, its officers, agents or attorneys,
          immediately upon the termination of said demised term; and if Lessee,
          shall hold the said premises or any part thereof five (5) days after
          the same should be surrendered according to the terms of this lease,
          he shall be deemed guilty of unlawful detainer of said premises, shall
          be subject to eviction and removal, forcibly or otherwise, with or
          without process of law, and to the penalties provided by law.

               (d) That in the event of any termination of this lease, then, in
          such case, all buildings, fixtures, and improvements then situate on
          said demised premises shall belong to Lessor and become its property,
          and no compensation therefor shall be allowed or paid to said Lessee.
          And all payments made shall be kept and retained by Lessor.

               (e) That the various rights, powers, options, elections,
          appointments and remedies of the Lessor contained in this lease, shall
          be construed as cumulative, and no one of them as exclusive

                              EXHIBIT "C" PAGE 12

                                      -12-
<PAGE>

of the other, or exclusive of any rights or priorities allowed by law.

     (f) That the right given in this lease to the Lessor to collect the rent
that may be due under the terms of this lease by any proceedings under the same,
or the right to collect any additional rent, moneys or payments due under the
terms of this lease by any proceedings under the same, or the right herein
given the Lessor to enforce any of the terms and provisions of this lease, shall
not in any way affect the right of such Lessor to declare this lease void, and
the term hereby created ended, as herein provided, when default is made in the
payment of said rent, or when default is made by the Lessee in any of the terms
and provisions of this lease.

     (g) That Lessee shall, at his sole cost and expense, make all necessary
repairs to, on and in the building or buildings to be erected on said leased
premises, and shall, at his sole cost and expense, replace any of said buildings
that may be destroyed by fire or otherwise during the term of this lease.

                                       V

          It is further stipulated and agreed by and between the parties hereto
as follows:

     (a) That Lessee will permit Lessor, or its representatives, to enter upon
said leased premises at all reasonable daylight hours for the purpose of
inspecting the same.

     (b) That Lessee will keep and hold harmless the Lessor from any and all
damages and liability for anything and everything whatsoever arising from or out
of the occupancy or operation to be conducted by the Lessee under this lease,
and from any loss or damage arising from any fault or negligence by the Lessee,
his agents or servants, or failure on the part of the Lessee to comply with any
of the covenants, terms or conditions herein contained on his part to be kept
and performed.

                                                             EXHIBIT "C" PAGE 13

                                                                     -13-

<PAGE>

          It is further understood and agreed by and between the parties hereto
as follows:

     (a) In case default be made in the payment of rent within the times and in
the amounts as herein specified, or in case default be made in any covenant or
agreement herein contained on the part of the said Lessee to be kept and
performed, or in case the Lessee shall be adjudged insolvent or a bankrupt, or
make an assignment for the benefit of his creditors, or in case a receiver be
appointed for Lessee, or to take possession for the lease premises as the result
of any act; or omission of the Lessee, or possession of the leased premises
shall be taken by virtue of any attachment or execution, the Lessor may at its
option, declare the said term ended; and may, upon ten (10) days' notice to
Lessee, reenter upon said premises either with or without process of law, using
all necessary force so to do, and remove all persons therefrom and retain the
possession thereof.

     (b) That in the event legal action is brought by either of the parties
hereto for enforcement of the terms and/or provisions of this lease the Court
may award a reasonable attorneys' fee and court costs to the successful party.

     (c) Should the leased premises be taken under condemnation proceedings or
be acquired by any public authority in any other manner, the estate of Lessee
shall cease and determine upon but not prior to the date when the Lessee shall
be actually required to yield possession, and all liabilities of the Lessee
hereunder accruing subsequent to such date shall cease. If only a part of the
demised premises shall be so taken, Lessee's estate and his liability for rent
hereunder shall abate proportionately after said date. Lessee hereby assigns to
Lessor his right to any and all damages for property taken in any

                                                             EXHIBIT "C" PAGE 14

                                      -14-
<PAGE>

such proceeding and all such damages shall be payable to Lessor. In the event
that any condemnation proceeding should be had to change the grade of or to
widen a street or sidewalk or for other purpose of similar nature, and the
Lessee should be in any manner injured or damaged thereby or suffer loss
therefrom, his liability for rent shall not be diminished or affected except as
in this paragraph provided.

                                      VII

          It is further understood and agreed by and between the parties hereto
as follows:

     (a) That time of payment of rentals is of the essence of this agreement,
and that the payments of the monies to become due under this lease, as
hereinabove provided, shall be made by Lessee paying the same unto the Lessor,
by depositing the same in the Bank of Nevada, Main Office, 200 South 5th Street,
Las Vegas, Nevada, to the credit of Las Vegas Lodge No. 32, Free & Accepted
Masons, of Las Vegas, Nevada, or as hereafter otherwise directed in writing by
said Lessor.

     (b) Notices to be given by the parties hereto pertaining to this agreement
of lease shall be given by personal service, or by registered mail, addressed to
the person to be served, at its or his address, respectively, as follows:

          To The Lessor, at P.O. Box 855
                               Las Vegas, Nevada

          To The Lessee, at:

     (c) That Lessor does hereby covenant and agree that the said Lessee, paying
the said rent and performing the aforesaid covenants and agreements, by this
lease provided and agreed to be performed by him, may at all times during the
term of this lease, peaceably and quietly have, hold, and enjoy the said demised
premises without any manner of trouble or hindrance of or from the said Lessor
or any other person or persons whomsoever.

                              EXHIBIT "C" PAGE 15

                                      -15-
<PAGE>

(d) The Lessee hereby covenants, promises and agrees that on the last day of
said term or sooner termination of the Estate herby granted, he will peacefully
and quietly leave, surrender and hand up to said Lessor the said premises in as
good condition as the same were received by him, and the building or buildings
erected thereon in as good a condition as they were at the time of their
completion, reasonable use and wear thereof, and damage by the elements alone
excepted.

     (e) That this lease agreement is executed in duplicate, each copy of which
shall be deemed to be and is an original of said lease agreement.

                                      VIII

          It is further understood and agreed by and between the parties hereto
that the terms and conditions of this Agreement of Lease shall extend to and be
binding upon the successors and assigns of the Lessor hereto, and also upon
their heirs, executors, administrators, successors, and assigns of the Lessee.

          IN WITNESS WHEREOF the Party of the First Part and Lessor, acting by
and through its duly authorized trustees; and the Party of the Second Part and
Lessee, have executed this AGREEMENT OF LEASE in duplicate, each copy of which
is deemed to be and is an original; the day and year in this AGREEMENT OF LEASE
first above written.

                             LAS VEGAS LODGE NO. 32, FREE &
                             ACCEPTED MASONS, of Las Vegas,
                             Clark County, Nevada,
                             PARTY OF THE FIRST PART & LESSOR

                             By /s/ Kenneth H. Zahn   Trustee
                             --------------------------------

                             By /s/ W.E. Fitzgerald   Trustee
                             --------------------------------

    (SEAL)                   By /s/ Kenneth W. Saxon  Trustee
                             --------------------------------

                             H. JOHN GLUSKIN, of LOS ANGELES,
                                       CALIFORNIA
                             PARTY OF THE SECOND PART & LESSEE

                             /s/ H. John Gluskin
                             --------------------------------

                              EXHIBIT "C" PAGE 16

                                      -16-
<PAGE>

STATE OF NEVADA          }
                         } ss
COUNTY OF CLARK          }

     On this 21st day of July, A.D., 1954, personally appeared before me, a
Notary Public in and for Clark County, KENNETH W. SAXON, known to me to be one
of the Trustees of the LAS VEGAS LODGE NO. 32, FREE & ACCEPTED MASONS of Las
Vegas, Clark County, Nevada, the corporation that executed the foregoing LEASE
AGREEMENT as Party of the First Part and Lessor, and upon depose that he is one
of the trustees of said corporation as above described that he is acquainted
with the seal of said corporation, and that the seal affixed to said instrument
is the corporate seal of said corporation; signatures to said instrument were
made by Trustees of said corporation indicated after said signature; and that
the said corporation executed said instrument freely and voluntarily and for the
uses and purposes first mentioned.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed this seal in
Las Vegas, Clark County, Nevada, the day and year in this certificate above
written.

                              /s/  L.O. HAWKINS
                                   --------------------------------
                                   Notary Public as aforesaid
                                   My Commission Expires: XXX
                                        (Notarial Seal)

STATE OF NEVADA          }
                         } ss
COUNTY OF LOS ANGELES    }

     On this 23rd day of July, A.D., 1954, personally appeared before me, Notary
Public in and for Los Angeles County, H. JOHN GLUSKIN, known to me to be the
Party of the Second Part and Lessee who executed the foregoing LEASE and upon
oath did depose and duly acknowledge to me that he executed this instrument
freely and voluntarily and for the uses and purposes therein.

     IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal in Los
Angeles County, California, the day and year in this certificate above written.

                              /s/  Harry Bauer
                                   --------------------------------
                                   Notary Public as Aforesaid
                                   My Commission Expires: XXX
                                        (Notarial Seal)

16355

RECORDED AT THE REQUEST OF                   Ret. to
HAWKINS AND CANNON                           David Goldwater
July 27 3:15pm '54                           300 Fremont
OFFICIAL RECORDS BOOK NO. 17
CLARK COUNTY, NEVADA
Paul C. O'Malley, Recorder
File # 9 50     Deputy
     ---------
                              CERTIFIED TO BE A TRUE AND CORRECT COPY OF THE
                              ORIGINAL NEVADA SOUTHERN TITLE INC.
                              BY   /s/    XXX
                                  --------------------------

                              EXHIBIT "C" PAGE 17

                                      -17-<PAGE>
                                                                    EXHIBIT 10.2

                         HYPERTENSION DIAGNOSTICS, INC.
                           2915 Waters Road, Suite 108
                              Eagan, MN 55121-1562

THE ANTHONY D. AND LESLIE T. ALTAVILLA REVOCABLE TRUST (THE "TRUST")
Anthony D. and Leslie T. Altavilla, Trustees
102 Neider Lane
Mill Valley, CA  94941

JENS DALSGAARD ("DALSGAARD")
171 Del Oro Lagoon
Novato, CA  94949

JEFF LAMBERSON ("LAMBERSON")
330 San Carlos Way
Novato, CA  94949

Dated as of March 15, 2002

         Re:   Consent under Letter Agreement dated as of October 19, 2001

Ladies and Gentlemen:

         This letter is being delivered pursuant to that certain letter
agreement dated as of October 19, 2001 by and between Hypertension Diagnostics,
Inc. (the "Company") and the Trust, Dalsgaard and Lamberson (the "Letter
Agreement"). All capitalized terms not otherwise defined herein shall have the
meaning assigned to them in the Letter Agreement.

         This letter constitutes Company's written consent to the offer, sale,
contract to sell, grant of option to purchase, or disposition of, or arrangement
for the contingent disposition of an aggregate of 60,000 Lock-Up Shares by the
Trust, Dalsgaard and Lamberson, but only in the following amounts with respect
to each of the Trust, Dalsgaard and Lamberson and only from and after the date
specified below (the "Release Date"):

<TABLE>
<CAPTION>
                                                                       RELEASE DATE
                                -------------------------------------------------------------------------------------------
                                   MARCH 15, 2002         APRIL 15, 2002          MAY 15, 2002                JUNE 15, 2002
                                -----------------         --------------          ------------           ------------------
<S>                                  <C>                     <C>                   <C>                      <C>
The Trust                                 10,500                  3,500                  3,500                        3,500

Dalsgaard                                 10,500                  3,500                  3,500                        3,500

Lamberson                                  9,000                  3,000                  3,000                        3,000
</TABLE>

         The remainder of the Lock-Up Shares shall continue to be subject to the
terms and conditions of the Letter Agreement.

<PAGE>

         This Agreement is made as of the date written above.

<TABLE>
<S><C>
                                        HYPERTENSION DIAGNOSTICS, INC.

                                        By:  /s/  James S. Murphy
                                           ------------------------------------------------
                                        Its: Its Senior Vice President, Finance and
                                              Administration and Chief Financial Officer
</TABLE>

Acknowledged and agreed to this 15th day of March, 2002.

/S/  ANTHONY D. ALTAVILLA
--------------------------------------------
ANTHONY D. ALTAVILLA, TRUSTEE
THE ANTHONY D. AND LESLIE T. ALTAVILLA REVOCABLE TRUST

/S/  JENS DALSGAARD
--------------------------------------------
JENS DALSGAARD

/S/  JEFF LAMBERSON
--------------------------------------------
JEFF LAMBERSON

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]