Document:

Exhibit
10.17

AFFIRMATION
OF GUARANTY

This AFFIRMATION OF GUARANTY
is made as of March 15, 2007, by and among SAFEGUARD DELAWARE, INC. (“SDI”),
SAFEGUARD SCIENTIFICS (DELAWARE), INC. (“SSI”; collectively with SDI, “Guarantors”,
each, a “Guarantor”) and COMERICA BANK (“Bank”).

RECITALS

Bank and CLARIENT, INC.  (“Borrower”) are parties to that certain Loan
Agreement dated as of February 13, 2003, as amended, including without
limitation by that certain First Amendment to Loan Agreement dated as of
October 21, 2003, that certain Second Amendment to Loan Agreement dated as of
January 22, 2004, that certain Third Amendment to Loan Agreement dated as of
January 31, 2005, that certain Fourth Amendment to Loan Agreement dated as of
March 11, 2005, that certain Consent and Waiver dated as of July 13, 2005, that
certain letter agreement dated as of January 26, 2006, that certain Waiver and
Fifth Amendment to Loan Agreement dated as of August 1, 2006, that certain
Sixth Amendment to Loan Agreement dated as of February 28, 2006, and that
certain Seventh Amendment to Loan Agreement dated as of January 17, 2007, and
that certain Waiver and Eighth Amendment to Loan Agreement dated as of February
28, 2007 (collectively, the “Agreement”). 
Guarantors executed for the benefit of Bank a Third Amended and Restated
Unconditional Guaranty dated as of January 17, 2007 (the “Guaranty”),
guarantying amounts owing by Borrower to Bank.  
Borrower and Bank propose to enter into a Ninth Amendment to Loan
Agreement of even date herewith (the “Amendment’), which amends the Loan
Agreement by, among other things, changing a financial covenant.  Bank has agreed to enter into the Amendment
provided, among other things, that each Guarantor consents to the Amendment and
agrees that the Guaranty will remain effective.

AGREEMENT

NOW, THEREFORE, each  Guarantor agrees as follows:

1.             Each Guarantor
consents to the execution, delivery and performance by Borrower of the
Amendment and the documents and instruments executed in connection
therewith.  The Guaranty is and shall
remain in full force and effect with respect to Borrower’s Obligations (as
defined in the Agreement) as modified by the Amendment and otherwise.  Each Guarantor confirms that, as of the date
hereof, such Guarantor has no defenses against its obligations under the
Guaranty.

2.             The Guaranty, as
amended, shall be and shall remain in full force and effect in accordance with
its terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the
execution, delivery, and performance of this Affirmation shall not operate as a
waiver of, or as an amendment of, any right, power, or remedy of Bank under the
Guaranty, as in effect prior to the date hereof.  Each Guarantor ratifies and reaffirms the
continuing effectiveness of all instruments, documents and agreements entered
into in connection with the Guaranty.

3.             Each Guarantor
represents and warrants that the Representations and Warranties contained in
the Guaranty are true and correct as of the date of this Amendment and
Affirmation other than (i) to the extent such representations and warranties
expressly relate to an earlier date, which representations and warranties are
true and correct as of such date; and (ii) for those changes to the
representations and warranties resulting from events, occurrences or
circumstances permitted under the applicable Loan Documents, as amended.  Unless otherwise defined, all capitalized
terms in this Affirmation shall be as defined in the Guaranty.  This Affirmation may be signed in two or more
counterparts, each of which shall be deemed an original and all of which shall
constitute one instrument.

   
 

IN
WITNESS WHEREOF, the undersigned have executed this
Affirmation of Guaranty as of the first date above written.

	
  

  	
  SAFEGUARD DELAWARE, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Feder

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SAFEGUARD SCIENTIFICS (DELAWARE), INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven J. Feder

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COMERICA BANK

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Beth Kinsey

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  	
   

  
					

 

 2Exhibit 10.1

FIRST AMENDMENT TO ASSET PURCHASE AGREEMENT

This First Amendment to Asset Purchase Agreement (“Amendment”),
dated as of May 7, 2007 (this “Amendment”), is by and between Hedwigs
Las Vegas Top Tier, LLC, a Delaware limited liability company, (“Purchaser”)
and 155 East Tropicana, LLC, a Nevada limited liability company, (“Seller”).

RECITALS

A.                                   Purchaser and Seller entered into that
certain Asset Purchase Agreement dated April 30, 2007 (the “Agreement”).

B.                                     Purchaser and Seller desire to amend the
Agreement as set forth below.

AGREEMENT

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereby
amend the Agreement as follows:

1.                                             Defined Terms. 
Unless otherwise defined herein, all capitalized terms used in this
Amendment shall have the meaning given such terms in the Agreement.  Unless the context otherwise indicates, all
references herein to the Agreement shall include this Amendment.

2.                                             Consideration.  As
consideration for this Amendment, Purchaser has or will pay the sum of One
Million dollars ($1,000,000) (the “Initial Payment”) to Seller in good funds by
5:00 p.m., PST, on the business day following the execution of this Amendment
by all parties.  The parties agree that
the Initial Payment is a nonrefundable earnest money deposit that is fully
earned on the date of payment.  If the
Closing occurs, the Initial Payment shall be applied to the Cash Purchase Price
as set forth in amended Section 1.6 of the Agreement below.

3.                                             Preamble.  The Preamble of the Agreement
is deleted and replaced with the following:

Seller owns and operates a
hotel located at 115 East Tropicana Ave. in Las Vegas Nevada (the “Hotel”), a
casino located at the Hotel (the “Casino”) and various related retail
operations, including restaurants, stores and other amenities (the “Other
Operations”).  The Hotel, the Casino and
the Other Operations are collectively referred to herein as the “Business.”  Seller desires to sell to Purchaser and
Purchaser desires to purchase from Seller substantially all of Seller’s assets
and to assume certain of Seller’s liabilities. 
In order to provide for the lawful continuation of the operations of the
Casino, Purchaser shall lease back the Casino operation to Seller as provided
in the Casino Operating Lease Agreement by and between Seller and Purchaser
(the “Lease Agreement”) attached hereto as Exhibit 1.

4.                                             Purchase Price. 
Section 1.5 of the Agreement is deleted and replaced with the following:

The consideration of the
sale and transfer of the Purchased Assets to Purchaser shall consist of the
Cash Purchase Price and the assumption by Purchaser of the Assumed
Liabilities.  The Cash Purchase Price
shall be (i) Ninety-Five Million dollars ($95,000,000) plus (ii) the cash
amount of the Accrued Royalty, plus (iii) any obligations under any notes
executed by Seller under the Lease Agreement (including accrued interest and
penalties) and shall be subject to adjustment as provided in Section 1.8.

5.                                             Purchase Price Payable at Closing.  Section 1.6 of the Agreement is deleted and
replaced with the following:

At the Closing, and subject
to the terms and conditions of this Agreement, Purchaser shall, pay to Seller
at the Closing in cash by wire transfer of immediately available funds to one
or more accounts designated by each Seller in writing at least two (2) Business
Days before the Closing Date, an amount equal to the sum of (i) Eighty-Five
million dollars ($85,000,000), plus (ii) the cash amount of the Accrued
Royalty, minus (iii) the sum of the Initial Payment plus the amount of any
deposit distributed to Seller pursuant to the Escrow Agreement.

6.                                             Closing.  Section 1.10 of the Agreement
is deleted and replaced with the following:

Seller shall as promptly as
possible notify Purchaser, and Purchaser shall as promptly as possible notify
Seller, when the conditions set forth in Article V to such party’s obligations
to complete the Transactions have been satisfied or waived.  Subject to Section 7.1(a)(iv), the closing of
the Transactions (the “Closing”) shall take place at the offices of Kummer
Kaempfer Bonner Renshaw & Ferrario on the second Business Day following the
satisfaction or waiver of the conditions set forth in Article V, or at such
other time, date and place as Seller and Purchaser may agree in writing.  If the Closing occurs, it shall be deemed to
have occurred at the Cutoff Time.  The
date on which the Closing occurs is referred to herein as the “Closing Date.”

7.                                             Amendment of Hooters License. 
Section 4.11 of the Agreement is deleted and replaced with the
following:

Concurrently
with or prior to the Closing, Seller shall cause its 

license agreements with
Hooters licensors to have been amended to consist, in their entirety, of (i) an
assignment agreement substantially in the form attached hereto as Exhibit 2,
(ii) a second amendment and acknowledement to consent and assignment agreements
substantially in the form attached hereto as Exhibit 3 and (iii) assignment and
acknowledgement to mark license agreement substantially in the form attached
hereto as Exhibit 4, (collectively the “Assignment Agreeements”).

8.                                             Restructuring of Agreement.  Section 4.21 of the Agreement is deleted and
replaced with the following:

Purchaser
shall reasonably determine, within 60 days of the date of this Agreement,
whether (i) consummating the Closing would cause an event of default under the
Indenture, and (ii) such default would not exist if this Agreement were
restructured as a sale of Seller’s membership interest to Purchaser under terms
substantially similar to this Agreement (the “Membership Interest Purchase
Agreement”).  If Purchaser makes the
determination required by this Section 4.21 in the affirmative, Seller and
Purchaser shall, within 30 days of such a determination (the “Negotiation
Period”), negotiate in good faith a Membership Interest Purchase
Agreement.  At the earlier of (i) the
date on which Seller and Buyer execute the Membership Interest Purchase
Agreement or (ii) the expiration of the Negotiation Period, Purchaser shall
deposit in escrow the sum of Two Million dollars ($2,000,000) under terms
reasonably agreed upon by Seller and Purchaser with First American Title
Insurance Company, as escrow agent (“Escrow Agent”), pursuant to the escrow
agreement attached as Exhibit 5 (the “Escrow Agreement”).  On the date that the Membership Interest
Purchase Agreement becomes effective according to the terms therein, if ever,
this Agreement shall become null and void and of no further force or effect and
the parties shall thereafter abide by all of the terms and conditions contained
in the Membership Interest Purchase Agreement. 
If Purchaser makes the determination required by the Section 4.21 in the
negative, 61 days following the date of this Agreement, Purchaser shall deposit
with the Escrow Agent the sum of Two Million dollars ($2,000,000) under the
terms of the Escrow Agreement.

9.                                             Deletion of Section 4.22.  Section 4.22 of the Agreement is deleted.

10.                                       Additional Conditions to
the Obligations of Seller.  Section 5.3 of the
Agreement is amended to include the following:

(d)  Approval of
Noteholders.  All required consents and
approvals under the Indenture shall have been obtained.

11.                                       Termination.  Section 7.1(a) of the Agreement is amended to
include the following:

(vi)  by Seller if the
Two Million dollar ($2,000,000) deposit provided for in Section 4.21 is not
made within the time periods provided in Section 4.21.

12.                                       Technical Corrections.  Section 7.1(b) is hereby amended to delete
the reference to “Section 8.1(a)(ii) or (iii)” and to replace that with “Section
7.1(a)(ii) or (iii).”  Section 5.2(a) is
hereby amended to delete the reference to “Section 6.2(a)” and to replace that
with “Section 5.2(a).”

13.                                       Effect of Termination.  Section 7.2 of the Agreement is deleted and
replaced with the following:

In the
event this Agreement is terminated pursuant to this Article VII, the
Transactions shall be abandoned, without further action by either of the
parties hereto, and this Agreement shall become void and have no further force
and effect, except that (a) the obligations of Purchaser set forth in the
Confidentiality Agreement shall remain in effect, (b) neither party shall be
relieved from any liabilities or damages arising out of a material breach of
any provision of this Agreement, (c) the respective obligations of the parties
set forth in Sections 4.6, 7.2, 8.1, 8.2, and Article IX shall remain in
effect, and (d) as provided in the Escrow Agreement, Seller shall retain the
deposit of Two Million dollars ($2,000,000) and any additional deposit made
pursuant to Section 4.15 unless at the time of termination there exists a
breach by Seller of any representation, warranty, covenant or other agreement
in this Agreement and, as a result of such breach, either (i) Purchaser would
not upon Closing, obtain title to substantially all of the Purchased Assets or
(ii) the value of the Purchased Assets less the cost of all Assumed Liabilities
would be reduced by Five Million dollars ($5,000,000) or more.

14.                                       Definitions.  The following definitions in Section 8.1 are
amended or added:

“Assignment Agreements” shall have the meaning ascribed to
it in Section 4.11.

“Escrow Agent” shall have the meaning ascribed to it in
Section 4.21.

“Escrow Agreement” shall have the meaning ascribed to it in
Section 4.21.

“Negotiation Period” shall have the meaning ascribed to it
in Section 4.21.

15.                                       Inconsistencies; No Other
Changes; No Default.  In the event of any
inconsistency between the terms and provisions of this Amendment and the terms
and provisions of the Agreement, the terms and provisions hereof shall
control.  Purchaser and Seller agree that
there are no other changes to the Agreement, and the Agreement, as amended
hereby, remains in full force and effect. 
Purchaser and Seller hereby acknowledge and agree that, to their
respective knowledge, the other party is not in default under the Agreement.

16.                                       Effectiveness.  This Amendment shall be effective upon mutual
execution and delivery.

17.                                       Counterparts.  This Amendment may be executed in
counterparts, each of which shall be fully effective as an original, and all of
which together shall constitute one and the same instrument.

18.                                       Exhibits.  Exhibits 1, 2, 3, 4 and 5 referred to above
and attached hereto are added as exhibits to the Agreement.

19.                                       Disclosure Schedule.  Schedule 2.12 of the Disclosure
Schedule is deleted and replaced with Schedule 2.12 attached hereto as Exhibit
6.

20.                                       Memorandum of Agreement.  Concurrent with the execution hereof the
parties agree to (i) execute and record in the real property records of Clark
County a short form memorandum of asset purchase agreement in the form attached
hereto as Exhibit 7, and (ii) execute a Release of Memorandum of Agreement in
the form attached hereto as Exhibit 8. 
The Release of Memorandum of Agreement will be held in escrow by Escrow
Agent with instructions to record it in the real property records of Clark
County upon the termination, if any, of this Agreement.

[Signature Page Follows]

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

	
  

  	
   

  	
  HEDWIGS
  LAS VEGAS TOP TIER, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Hedwigs Las Vegas GP, LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard Bosworth

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  155 EAST TROPICANA, LLC

  
	
   

  	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Hessling

  	
   

  
	
   

  	
   

  	
  Name: Michael Hessling

  
	
   

  	
   

  	
  Title: President

  
											

 

EXHIBIT 1

Lease Agreement

CASINO
OPERATIONS LEASE

THIS
CASINO OPERATIONS LEASE (“Lease”) is made and entered into as of the 3rd
day of May, 2007, by and between Hedwigs Las Vegas Top Tier, LLC, a Delaware
limited liability company, or its nominee, as landlord (“Landlord”), and
155 East Tropicana, LLC, a Nevada limited liability company, as tenant (“Tenant”),
with reference to the following facts and objectives:

RECITALS

A.            This Lease is made with reference to
a certain Asset Purchase Agreement dated as of April 30, 2007 (the “Purchase
Agreement”), by and between Landlord, as Buyer, and Tenant, as Seller,
concerning the sale by Seller to Landlord of that certain hotel, casino and
related improvements thereon, commonly known as the Hooters Casino Hotel Las
Vegas (the “Hotel”), together with all fixtures, equipment and personal
property used in connection therewith, excluding the Gaming Assets (as defined
below).

B.            Pursuant to the terms of the
Purchase Agreement, at the Closing (as defined in the Purchase Agreement)
Tenant shall continue to own the Gaming Assets (as defined below).

C.            Tenant desires to lease from
Landlord and Landlord desires to lease to Tenant (i) a portion of the Hotel in
which the Gaming Operations (as hereinafter defined) are presently located,
comprising approximately 29,000 square feet of floor space (“Gaming
Operations Location”) and offices and rooms within the Hotel, consistent
with current operations at the Hotel, used non-exclusively for the Gaming
Operations (“Associated Space”) for the non-exclusive (except as to the
portions thereof that constitute Public Areas) use by Tenant for the duration
of this Lease, and any extensions and/or renewals hereof, and (ii) the
non-exclusive right to use the public areas of the Hotel as they exist from
time to time (“Public Areas”) including, but not limited to, parking
areas, driveways, private roadways, walkways, stairways, corridors, entryways,
and restroom facilities, by Tenant, its employees, agents, representatives,
customers, business invitees and licensees for the purposes for which Public
Areas are intended. “Gaming Operations” means the ownership and
operation of the Gaming Assets. The Gaming Operations Location and the
Associated Space are sometimes collectively referred to herein as the “Leased
Property”.

NOW, THEREFORE, in
consideration of the mutual promises set forth herein, the parties hereto agree
that the foregoing recitals are true and correct and incorporated into this
Lease and 

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the parties further agree that Landlord will lease to
Tenant, and Tenant will lease from Landlord, the Leased Property on the
following terms and conditions:

ARTICLE I

APPROVALS, GAMING ACTIVITIES AND GAMING EQUIPMENT

1.1           Approvals. Tenant acknowledges
and agrees that it will at all times during the Term (as defined below)
maintain in full force and effect and in good standing, as a Tenant Expense,
all permits, licenses and approvals (“Approvals”) required by all laws,
statutes, regulations, rules, ordinances, codes, licenses, permits and orders,
from time to time in existence, of all courts of competent jurisdiction and
government agencies, and all applicable judicial and administrative and
regulatory decrees, judgments and orders (collectively, “Applicable Laws”),
including without limitation, all Approvals required by the Nevada State Gaming
Control Board, the Nevada Gaming Commission and the Clark County Liquor and
Gaming Licensing Board (collectively, the “Nevada Gaming Authorities”)
relating to the Gaming Assets and the conduct of non-restricted gaming
activities in the Leased Property (“Gaming Approvals”).

1.2           Gaming Activities. Without
limiting any other provision herein, Tenant expressly covenants and agrees that
it will, at all times during the Term:

(a)           comply with all applicable Nevada
gaming statutes and regulations, and the requirements of the Nevada Gaming
Authorities (“Nevada Gaming Laws”); and

(b)           in accordance with applicable Nevada
Gaming Laws, provide supervision at or near the Gaming Assets to prevent minors
from playing the Gaming Assets or loitering in the Gaming Operations Location;
and

(c)           undertake Gaming Operations with
sound business practice, due diligence and efficiency so as to attempt to
maximize Net Cash Flow (as defined below); and

(d)           reasonably determine the location and
selection of the Gaming Assets within the Leased Property so as to endeavor to
maximize Casino Revenues; and

(e)           provide change to customers using the
Gaming Assets.

1.3           Gaming Assets. For purposes of
this Lease, “Gaming Assets” has the meaning given in Section 8.1 of the
Purchase Agreement together with any additions and replacements thereto
acquired by Tenant and used at or in connection with the Hotel during the Term.
Tenant covenants that it will maintain the Gaming Assets at the Leased Property
in the manner and condition as required by this Lease and further, that it will
own or lease adequate and sufficient Gaming Assets to operate and maintain the
Leased Property in accordance with the standards of operation in place at the
Hotel as of the Commencement Date and to such higher standards of 

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operation as exist
in the Hotel after the Commencement Date. 
Tenant further agrees to keep and maintain all Gaming Assets that do not
consist of money (the “Non-Cash Gaming Assets”) in good condition and
repair, and repair or replace all damaged or broken Non-Cash Gaming Assets as
and when needed to keep and maintain the Non-Cash Gaming Assets operating and
in good condition. Without limiting the foregoing, Tenant must (i) repair and
maintain the Gaming Assets found at the Hotel on the Commencement Date to the
same condition as on the Commencement Date or better, ordinary wear and tear
excepted; (ii) keep the same free of any security interest, chattel mortgage,
pledge or other encumbrance; and (iii) as a Tenant Expense or using proceeds
from the Capex Reserve Fund (at Landlord’s election), replace the same when
such replacement is required by applicable law. 
All Non-Cash Gaming Assets installed in or furnished to the Hotel by
Tenant during the Term (whether pursuant to contracts or commitments entered
into by Tenant prior to or after the Commencement Date), if any, must be new
and must be purchased for cash and acquired free of any security interest,
chattel mortgage, pledge or other encumbrance, except for financing leases or
conditional sales agreements directly from the lessor or vendor of any Non-Cash
Gaming Assets.

1.4           Payments to the Vendor of Gaming
Assets; Payments to Landlord.

(a)
Tenant shall make, as a Tenant Expense, each and all of the payments called for
by any and all financing leases or conditional sales agreements relating to
Gaming Assets as such payments may be adjusted from time to time, in accordance
with the terms of such financing leases or conditional sales agreements. Such
payments shall be made by Tenant directly to the vendor under each such lease
or conditional sales agreement.  In the
event the Gaming Assets are sold to a successor licensed operator, Tenant shall
assign to the licensed operator succeeding Tenant all right, title and interest
of Tenant in and to, and the licensed operator succeeding Tenant shall assume
and thereafter duly perform each and all obligations of Tenant under, each
Gaming Asset financing lease or conditional sales agreement maintained by
Tenant pursuant to the terms of the Purchase Agreement after the Closing (as
defined in the Purchase Agreement) or entered into by Tenant after the
Commencement Date as permitted under the terms of this Lease.  Notwithstanding any contrary provision of
this Lease, Tenant may not enter into any financing leases or conditional sales
agreements that would be binding on Tenant or Landlord after the expiration or
termination of this Lease without Landlord’s prior written consent, which may
be granted or withheld in Landlord’s sole and absolute discretion.  In addition, Tenant may not make any payments
under any such leases or agreements (other than for the Gaming Assets) as a
Tenant Expense unless such lease or agreement is approved by Landlord in
writing in its sole and absolute discretion.

(b)
If (i) revenues from the Gaming Operations are insufficient in any month to pay
the Priority Payment for such month, to pay all Tenant Expenses, or to maintain
the financial condition required by the Nevada Gaming Authorities and (ii) all
reserves provided for in this Lease have been exhausted and (iii) such
insufficiency is not the result of any Event of Default or of Tenant’s
dishonesty or criminal act or failure to act in good faith in the operation of
the Gaming Operations and (iv) a loan from Landlord (each, a “Loan”) is
required to satisfy such insufficiency, then Landlord will reasonably determine
the amount of such deficiency and lend 

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Tenant sufficient
funds to pay or satisfy the deficiency. 
The amount thus lent to Tenant will be evidenced by a promissory note in
the form and substance attached hereto as Exhibit A (the “Shortfall
Note”), bearing interest at a fixed rate equal to ten percent (10%) per
annum (the “Note Rate”) with monthly payments in arrears on the last day
of each calendar month of interest only at the Note Rate on the average daily
principal balance of the Shortfall Note for such month. However, such payments
shall be made only from available Net Cash Flow (defined below) from the Gaming
Operations after the payment of Base Rent (defined below) and the Priority
Payment (defined below). If available Net Cash Flow from the Gaming Operations
after the payment of Base Rent and the Priority Payment in any particular month
is inadequate to make such payment, Tenant must use any amounts that have been
deposited in any reserve account established under the terms of this Lease to
make such payments, and if such reserve accounts are also inadequate to make
such payment, then Tenant’s failure to pay the amount specified above shall not
be a default under this Lease or the Shortfall Note, so long as Tenant pays the
amount that is available from Net Cash Flow from the Gaming Operations after
the payment of Base Rent and the Priority Payment and the amount existing in
any reserve accounts.  The remaining
unpaid balance of the payment will be carried forward (the “Shortfall Note
Carry Forward Balance”) and shall be due on the due date for the next
installment thereunder on which and to the extent there is sufficient Net Cash
Flow to pay both the regularly scheduled payment and to pay all or any part (to
the extent of available Net Cash Flow) of the Shortfall Note Carry Forward
Balance (together with interest on the Shortfall Note Carry Forward Balance,
from the date the applicable payment would have been due but for its being carried
forward, at the Note Rate).

(c)
Any additional amounts advanced to Tenant, whether pursuant to this Section 1.4
or otherwise, beyond the face amount of the original Shortfall Note must, as a
condition to the disbursement thereof, at Landlord’s option, be evidenced by a
new note on the same terms and conditions as are provided in the original
Shortfall Note or by additional notes each of which is on the same terms and
conditions as the original Shortfall Note, except in either case, that the
principal balance shall reflect the increased amount thereof.  In either case such new note or original and
additional notes will thereafter be referred to collectively herein as the “Shortfall
Note”.

(d)
Except as otherwise expressly provided in this Lease, upon termination or
expiration of this Lease, Tenant must repay to Landlord the entire balance of
principal and accrued interest outstanding under the Loan.

1.5           Disposal of Gaming Assets.
Notwithstanding the foregoing provisions of this Article I, Tenant shall have
the right, at any time or from time to time, to remove and sell, demolish or
otherwise dispose of any Non-Cash Gaming Assets, whether installed in or
furnished to the Hotel, prior to, on or after the Commencement Date, if (i)
Tenant determines, in its reasonable business judgment, that such act is
necessary or desirable in connection with Tenant’s operation of the Leased
Property; and (ii) Tenant at its cost (and, except as otherwise provided in
Section 1.3, not as a Tenant Expense) replaces the item or items so removed and
disposed of.

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1.6           Transfer of Gaming Assets at the
Hotel at End of Term. Upon the expiration or earlier termination of the
Term, any Gaming Assets at the Hotel as of the Commencement Date or installed
in or furnished to the Hotel by Tenant on or after the Commencement Date must
either, at Landlord’s option and in accordance with any applicable provisions
of the Purchase Agreement:

(a)
be transferred to Landlord; or

(b) if
directed by Landlord, be transferred to the licensed operator succeeding Tenant,

free and clear of
all liens, financing leases and conditional sales agreements other than those
permitted under the Purchase Agreement or this Lease.

Notwithstanding
the terms of this Section 1.6, in-house progressive jackpots will be dealt with
by Tenant and Landlord in accordance with applicable Nevada Gaming Laws.

1.7           Chips and Tokens.

(a)   Tenant
shall retain and use Tenant’s chips and tokens under the terms of a License
Agreement to be entered into prior to the Commencement Date.  Upon the Commencement Date, Tenant shall use
chips and tokens which have been issued in accordance with Nevada Gaming
Commission Regulations. Tenant shall redeem Tenant’s chips and tokens in
accordance with Nevada Gaming Commission Regulations.

(b)  The parties
hereto agree that, at 12:00 midnight on the Commencement Date (the “Cut-Off
Time”), and again at 11:59 P.M. on the date on which this Lease is
terminated or the Term expires, all casino cage cash (the “Cage Cash”)
and all casino chips and tokens shall be counted according to all applicable
Gaming Approvals and Nevada Gaming Laws. 
Tenant must permit Landlord’s representatives to observe all aspects of
such counts.  Tenant will be entitled to
all revenue received and will be liable for all expenses incurred, accrued or
that relate to revenues received prior to the Cut-Off Time, and only amounts
received after the Cut-Off Time will be treated as revenue for purposes of
determining Net Cash Flow.  Except for
accounts receivable that were earned by Tenant prior to the Cut-Off Time, all
accounts receivable by Tenant relating to Tenant’s activities at or in
connection with the Leased Property will, after the expiration of the Term or
termination of this Lease, belong to Landlord, if licensed, or, if Landlord is
not licensed, a successor tenant designated by Landlord.

ARTICLE II

LEASED PROPERTY

2.1           Leased Property and Grant of
Easement through Hotel. Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, the Leased Property. Landlord hereby grants to Tenant,
its employees, agents, customers and invitees a non-exclusive easement and
right of 

 5
 

access through and
across the Public Areas of the Hotel, as they exist and are modified by
Landlord from time to time, for purposes of ingress and egress to the Leased
Property.

2.2           Grant of Easement through Gaming
Operations Location. Tenant hereby grants to Landlord, its employees,
agents, contractors, licensees, tenants, occupants, customers and invitees a
non-exclusive easement and right of access through and across the Public Areas
of the Gaming Operations Location for purposes of ingress and egress to the
other portions of the Hotel. 
Notwithstanding the foregoing, Tenant may, to the extent and only to the
extent required by Nevada Gaming Authorities, restrict (but not preclude)
access to areas of the Leased Property that contain the casino cage, count
areas and casino surveillance areas.

2.3           Landlord’s Reservation.
Landlord reserves to itself the roof and exterior walls of the building
containing the Leased Property, and all space above the ceiling within the
Leased Property, to accommodate the Hotel’s structural, mechanical and
electrical conduit, piping, ducting and venting systems. Landlord further
reserves the right to run utility lines, pipes, conduits and ductwork through
the air space above Tenant’s ceiling, and through the columns and walls of the
Leased Property, in locations which will minimize interference with Tenant’s
use of the Leased Property.

2.4           Changes to Hotel. Landlord
reserves the right at any time and from time to time (a) to make or permit
changes or revisions in the site plan for or layout of the Hotel including
additions to, subtractions from, rearrangements of, alterations of,
modifications of or supplements to the Leased Property, the Public Areas or the
building areas, walkways, parking areas, driveways or other areas within the
Hotel and upon the property on which the Hotel is located, (b) to construct
other buildings or improvements in or as additions to the Hotel and to make alterations
thereof or additions thereto and to build additional stories on any such
building or buildings and to construct other buildings or improvements
adjoining the same, and (c) to make or permit changes or revisions in the
Hotel, including additions thereto, and to convey portions of the Hotel and the
property on which the Hotel is located to others for the purpose of
constructing thereon other buildings or improvements, including additions
thereto and alterations thereof. Landlord will have the right without abatement
of Rent to (a) construct, lease and/or license kiosks, carts, and sales areas
on any portion of the Hotel and the property on which the Hotel is located, (b)
enter into, modify and terminate easements and other agreements pertaining to
the use and maintenance of the parking area portions of the Hotel and the
property on which the Hotel is located, (c) close such portions of the Hotel
and the property on which the Hotel is located as may, in the reasonable
opinion of Landlord, be necessary to prevent a dedication thereof or the
accrual of any right therein to any Person or to the public, (d) close portions
of the Hotel and the property on which the Hotel is located for any other
reason reasonably determined by Landlord to be in the best interest of the
Hotel, (e) close temporarily any or all portions of the Hotel and the property
on which the Hotel is located for repairs or refurbishing, (f) discourage
non-guest parking, (g) move, remove, relocate and/or replace seats, trees,
planters and other amenities commonly found in similar resorts, and (h) do such
other acts in and to said areas and improvements as in the exercise of good
business management, and the maintenance of a resort, as Landlord, in the
exercise of its reasonable business judgment, deems advisable.

 6
 

2.5           Relocation. Throughout the
Term and from time to time, Landlord shall have a right to relocate all or a
portion of the Associated Space within the Hotel provided that the total size
of the Associated Space after such relocation is approximately the same square
footage as the original Associated Space. Landlord shall notify Tenant of such
relocation not less than thirty (30) days prior to the date thereof. Landlord
shall reconstruct on the relocated Associated Space improvements substantially
similar in quality, style and design to those constructed at the original
Associated Space in accordance with plans and specifications approved by
Landlord and Tenant, which approval shall not be unreasonably withheld by
either party. Landlord shall pay the cost of moving and reinstalling the
fixtures, furnishings and equipment of Tenant into the relocated Associated
Space. As of the later of the date specified in Landlord’s notice to Tenant or
ten (10) days after Landlord has notified Tenant that it has completed the
improvements to be constructed by Landlord on the relocated Associated Space,
Tenant shall surrender the original Associated Space (or the portion thereof
that is to be relocated), and shall move to the relocated Associated Space, and
the relocated Associated Space shall be deemed the Associated Space hereunder
as fully as if said relocated Associated Space were originally described herein
as the Associated Space. Tenant agrees that promptly, on demand, it shall
execute an amendment to this Lease designating the location of the relocated
Associated Space.

2.6           Remodeling. If, at any time,
from time to time, during the Term, Landlord remodels all or any portion of the
Hotel, and such remodeling includes the Leased Property or a portion thereof,
then Landlord shall have the right to change the dimensions or reduce the size
of the Leased Property and to close all or a portion of the Hotel, including
all or a portion of the Leased Property, for such period as Landlord deems
advisable. If Tenant is required to close all or a portion of the Leased
Property in connection with such remodeling, then, as Tenant’s sole and
exclusive remedy for such closure, Base Rent will be equitably abated based
upon the portion of the floor area of the Leased Property that is rendered
untenantable by such remodeling as a proportion of the total floor area of the
Leased Property prior to such remodeling. 
In the event of any remodeling pursuant to this Section 2.6, Landlord
shall repair any damage to the Leased Property caused thereby, and in the event
of any reduction in the area of the Leased Property, as Tenant’s sole and
exclusive remedy therefor, Base Rent shall be equitably reduced based upon the
portion of the floor area of the Leased Property that is rendered untenantable
by such remodeling as a proportion of the total floor area of the Leased
Property prior to such remodeling.

ARTICLE III

TERM OF LEASE

3.1           Initial Term. The term of this
Lease shall commence at 12:00 midnight next preceding the Closing (as defined
in the Purchase Agreement) (the “Commencement Date”) and, unless
extended as provided below, end at 11:59 p.m. on  the sooner of (i) the last day of the month
following the month in which Landlord obtains all applicable Gaming Approvals
required to operate all Gaming Assets at the Hotel or (ii) June 30, 2008 (the “Initial
Term”).

 7
 

3.2           Extension of Term.  Landlord is hereby granted options to extend
the term of this Lease, for two (2) additional consecutive three (3)-month
extension periods (but no later than December 31, 2008, in any event), each
such period, an “Extension Term”, provided that Landlord notifies
Tenant, in writing, no less than ninety (90) days prior to the commencement of
any such Extension Term of Landlord’s intention to exercise such option.  As used in this Lease, “Term” means
the Initial Term plus all duly exercised Extension Terms.  Except as expressly provided in this Lease,
the terms and conditions applicable to each Extension Term will be the same as
the terms and conditions of the Initial Term, and Rent and other charges will
continue to be adjusted as provided in this Lease as though each such Extension
Term were part of the Initial Term.

3.3           Early
Termination by Landlord.

(a)           If at any time Tenant or any other
person or entity (collectively, “Person”) associated in any way with
Tenant (i) is denied a license, found unsuitable, or is denied or otherwise
unable to obtain any other Approval required for Tenant to continue to lawfully
lease the Leased Property, own and operate the Gaming Assets or operate the
Gaming Operations Location at the Hotel, (ii) does not obtain such Approval
within any required time limit, as the same may be extended by such Nevada
Gaming Authority, or (iii) withdraws any application for Approval other than upon
a determination by the Nevada Gaming Authorities that such Approval is not
required for Tenant to be able to conduct Gaming Operations at the Hotel, (iv)
directly or indirectly causes a termination or denial of any Gaming Approval of
Landlord or any Person as a result of this Lease, then Landlord may terminate
this Lease effective upon the later of (A) one (1) business day after notice is
given to Tenant by Landlord, or (B) the date Tenant is not permitted to conduct
Gaming Operations at the Hotel, unless such failure is cured before such later
date.  Notwithstanding the foregoing, if
a Person associated with Tenant who is denied a license or otherwise found
unsuitable can be disassociated with Tenant to the satisfaction of the Nevada
Gaming Authorities, and Tenant’s nonrestricted gaming license remains in
effect, then no termination right will exist under this Section 3.3(a).

(b)           If Landlord sells its interest in the
Hotel, Landlord may terminate this Lease in connection with such sale, by
providing at least thirty (30) days’ advance written notice to Tenant.

(c)           At any time during the Term of this
Lease, and for any reason or no reason, Landlord may terminate the Lease by
providing at least ten (10) days’ advance written notice to Tenant.  Landlord’s right to terminate the Lease under
this Section 3.3(c) is absolute and may be exercised by Landlord at any time.

3.4           Early Termination by Tenant.

(a)           If at any time Landlord or any other
Person associated in any way with Landlord (i) is denied a license, found
unsuitable, or is denied or otherwise unable to obtain any other 

 8
 

Approval required
in order for Tenant to be able to conduct Gaming Operations at the Hotel, (ii)
is required by the Nevada Gaming Authorities to apply for an Approval required
in order for Tenant to be able to conduct Gaming Operations at the Hotel and
does not obtain such Approval within any required time limit, as the same may
be extended by such Nevada Gaming Authority, (iii) withdraws any application
for Approval other than upon a determination by the Nevada Gaming Authorities
that such Approval is not required in order for Tenant to be able to conduct
Gaming Operations at the Hotel, or (iv) directly or indirectly causes a
termination or denial of any Gaming Approval of Tenant or any such Person as a
result of this Lease, then Tenant may terminate this Lease effective upon the
later of (A) one (1) business day after notice is given to Landlord by Tenant,
or (B) the date Tenant is not permitted to conduct Gaming Operations at the
Hotel, unless such failure is cured before such later date.  Notwithstanding the
foregoing, if a Person associated with Landlord who is denied a license or
otherwise found unsuitable can be disassociated with Landlord to the
satisfaction of the Nevada Gaming Authority, and Tenant’s nonrestricted gaming
license remains in effect, then no termination right will exist under this
Section 3.4(a).

(b)           If at any time following the
Commencement Date Richard Bosworth ceases to be a principal of Landlord or if
Landlord assigns its interests hereunder to any Person for whom Richard
Bosworth is not a principal, Tenant may terminate this Lease effective upon
giving one (1) business day notice to Landlord. Upon termination of the Lease
as provided under this Section 3.4(b) and except as otherwise provided under
the terms of this Lease, neither Landlord nor Tenant shall have any further
obligations to the other under this Lease. 
Notwithstanding any other provision herein, Tenant’s termination right
under this Section 3.4(b) is not triggered if Landlord assigns its interests
under this Lease to any Person for whom Richard Bosworth is a principal.

3.5           Holding Over. In the event
Tenant remains in possession of the Leased Property after the expiration of the
Term or earlier termination of this Lease, Tenant shall at the option of
Landlord be considered a month-to-month tenant, subject to all of the other
terms and conditions hereof except that Base Rent will equal 200% of the Base
Rent payable immediately prior to such expiration or termination, and Landlord
shall have all rights and remedies available at law or in equity.

ARTICLE IV

RENT

4.1           Rent.       Subject to the adjustments hereinafter provided, Tenant shall
pay to Landlord as base monthly rent for the Leased Property the sum of Five Hundred
Forty Thousand and 00/100 Dollars ($540,000.00) (the “Base Rent”), which
shall be paid for each month on or before the last day of such month in
arrears. The first such payment shall be due on the last day of the full or
partial month in which the Commencement Date occurs and such payments shall
continue on the last day of each month thereafter through and including the
last day of the Term. Base Rent for any partial calendar month shall be
prorated on the basis of the number of days in 

 9
 

such month falling
within the Term divided by the number of days within such calendar month. “Rent”
means all payments of (a) Base Rent (including Rollover Rent (defined below))
and (b) any and all other amounts required to be paid by Tenant under the terms
of this Lease. If Net Cash Flow (after payment of the Priority Payment
described in Section 4.2 hereof) is insufficient in any month to pay the full
Base Rent provided for hereunder, Tenant shall not be required to pay currently
the full Base Rent provided hereunder, but shall be required to pay currently
only such amount as is available from Net Cash Flow (after payment of the
Priority Payment described in Section 4.2 hereof) and amounts previously
deposited in any reserve account established under this Lease.  As long as Tenant pays all amounts that are
required to be paid hereunder as and when described hereunder, Tenant’s failure
to make the full payment of the Base Rent in any month shall not be considered
a default hereunder, but any remaining Base Rent due shall be rolled over into
the subsequent month.  The aggregate of
prior Base Rents due at any given time is referred to herein as the “Rollover
Rent”.  The Rollover Rent shall be
paid from Net Cash Flow (after payment of the Base Rent provided in this
Section 4.1 and the Priority Payment described in Section 4.2 hereof) and, to
the extent such Net Cash Flow is insufficient, from amounts deposited in any
reserve account established under this Lease to the maximum extent possible in
any month where funds from any of these sources are available.

4.2           Base Fee-Priority Payments.
Except with respect to any calendar month during which Tenant has committed an
Event of Default and except with respect to any calendar month during which
Tenant fails to operate the Leased Property continuously during all of the
hours and days required under this Lease and each subsequent calendar month,
for the Term of this Agreement, Landlord must pay Tenant Ninety Thousand and
00/100 Dollars ($90,000.00) per calendar month payable on the last day of each
month (the “Priority Payments”), which shall be for general management
services provided by Tenant to Landlord that are not attributable to a
specific, identified project.  Tenant
will not be entitled to any Priority Payment for any month during which an
Event of Default has occurred or continues or for any month during which Tenant
failed at any time and for any length of time to operate the Leased Property
continuously during all of the hours and days required under this Lease or for
any calendar month subsequent to the month in which such failure to operate
occurred.  The Priority Payments shall be
prorated for any partial calendar month during the Term. All such pro-rations
shall be made on the basis of the actual number of days in such month falling
within the Term divided by the number of days within such calendar month. So
long as any portion of the Leased Property is leased pursuant to this Lease,
Tenant shall continue to receive the Priority Payments in full without any
pro-ration or offset.

4.3           Additional Interest and Principal
Payments; Reserves. As soon as reasonably practical but no later than the
twentieth-fifth (25th) day of the first calendar month following the
Commencement Date and each calendar month thereafter, Tenant shall deposit the
following reserves or pay the following amounts, as applicable:

(a)           all interest due under the Shortfall
Note must be paid to Landlord if any debt remains on such Shortfall Note, but
only to the extent Tenant has available Net Cash Flow from 

 10
 

the Gaming
Operations after deducting therefrom the Base Rent (including all Rollover
Rent) and the Priority Payment, for the prior month; and

(b)           the principal balance under the
Shortfall Note must be paid to Landlord if any debt remains on such Shortfall
Note, but only to the extent Tenant has available Net Cash Flow from the Gaming
Operations after deducting therefrom the Base Rent (including all Rollover
Rent), the Priority Payment, and the amounts required to be paid pursuant to
Section 4.3(a) above, for the prior month; and

(c)           all interest due under the Working
Capital Note (as defined below) must be paid to Landlord if any debt remains on
such Working Capital Note, but only to the extent Tenant has available Net Cash
Flow from the Gaming Operations after deducting therefrom the Base Rent
(including all Rollover Rent), the Priority Payment, and the amounts required
to be paid pursuant to Sections 4.3(a) and (b) above, for the prior month; and

(d)           Two Hundred Thousand and 00/100
Dollars ($200,000.00), to the extent Tenant has available Net Cash Flow from
the Gaming Operations after deducting therefrom the Base Rent (including all
Rollover Rent), the Priority Payment and the amounts required to be paid
pursuant to Sections 4.3(a), (b) and (c) above, for the prior month, must be
deposited into a “Capex Reserve Fund” for the sole purpose of funding
capital improvements to the Leased Property (“Capital Improvements”),
including, without limitation, the purchase of gaming devices and the cost of
making capital improvements to the Leased Property. The amounts in the Capex
Reserve Fund must be held separate from other accounts of Tenant in an account
that includes “Capex Reserve Fund” in its name and must not be commingled with
any other funds of Tenant or any other account. Tenant must keep the Capex
Reserve Fund and all funds therein free and clear of any and all liens, claims,
encumbrances and rights of set-off. No amounts may be expended from the Capex
Reserve Fund without the prior written approval of Landlord, which approval
shall not be unreasonably withheld or delayed. For each disbursement of funds
from the Capex Reserve Fund, Tenant must provide evidence reasonably
satisfactory to Landlord of payment for Capital Improvements as pursuant to the
plan and approved by Landlord, which shall include copies of paid invoices or
cancelled checks in a form reasonably satisfactory to Landlord for the amounts
paid and, if required by Landlord, lien waivers and releases from all parties
furnishing materials and/or services in connection with such payment. Any
amounts remaining in the Capex Reserve Fund on the Termination Date of this
Lease shall become the property of Landlord. 
To the extent Tenant has insufficient Net Cash Flow from the Gaming
Operations in any given month to deposit the full required contribution to the
Capex Reserve Fund, Tenant must make the applicable reserve contribution in the
next month in which its Net Cash Flows are sufficient to make such
contribution; and

(e)           Two
Hundred Thousand and 00/100 Dollars ($200,000.00), but only to the extent
Tenant has available Net Cash Flow from the Gaming Operations after deducting
therefrom the Base Rent (including all Rollover Rent), Priority Payments and
the amounts required to be paid or deposited pursuant to Sections 4.3(a), (b),
(c) and (d) above, for the prior month, must be deposited into a joint
marketing account (the “Joint Marketing Fund”) for the sole purpose of 

 11
 

funding marketing activities that jointly market the
Hotel and restaurants operated at the Hotel and the casino operated by Tenant (“Marketing
Expenses”). The amounts in the Joint Marketing Fund must be held separate
from other accounts of Tenant in an account that includes “Joint Marketing Fund”
in its name and must not be commingled with any other funds of Tenant or any
other account. Tenant must keep the Joint Marketing Fund and all funds therein
free and clear of any and all liens, claims, encumbrances and rights of
set-off. No amounts may be expended from the Joint Marketing Fund without the
prior written approval of Landlord, which approval shall not be unreasonably
withheld or delayed. For each disbursement of funds from the Joint Marketing
Fund, Tenant must provide evidence reasonably satisfactory to Landlord of
payment for Marketing Expenses as approved by Landlord, which shall include
copies of paid invoices or cancelled checks in a form reasonably satisfactory
to Landlord for the amounts paid. Any amounts remaining in the Joint Marketing
Fund upon the expiration or termination of this Lease shall become the property
of Landlord; and

(f)            all remaining Net Cash Flow from the
Gaming Operations after deducting therefrom the Base Rent (including all
Rollover Rent), Priority Payments and the amounts required to be paid or
deposited pursuant to Sections 4.3(a), (b), (c), (d) and (e), above, for the
prior month, must be deposited into a reserve account (the “Surplus Reserve
Fund”) for application, on a monthly basis as follows: (a) 75% shall be
applied (the “Lessor’s Share”) to the Surplus Reserve Fund; and (b) 25%
shall be withheld from Net Cash Flow by Tenant. Upon expiration or earlier
termination of this Lease, any funds remaining in the Surplus Reserve Fund
resulting from Lessor’s Share shall be the sole property of Landlord.

For purposes of
this Lease, “Net Cash Flow” means for any period, net income of Tenant,
any affiliate, and any person acting under the management, direction or control
of or under common control with Tenant (including Landlord, while performing
services for or on behalf of Tenant or at Tenant’s request) from all business
conducted in, at, from or in connection with any and all portions of the Leased
Property, as determined in accordance with generally accepted accounting
principles, consistently applied, as modified as required by Applicable Law (“GAAP”),
plus:

1.               without duplication, and in each case to the extent
deducted in arriving at net income for such period, the sum of the following
amounts:

A.            total interest expense for such period,
whether paid or accrued and whether or not capitalized, other than interest
under the slot leases permitted under the terms of this Lease and interest
payable to Landlord;

B.             total federal, state, local and foreign
income, franchise, withholding, property and similar taxes, except, to the
extent actually paid by Tenant, as provided in Section 1.4 of the Cash
Management Agreement (defined below);

C.             amortization and depreciation;

D.            any amounts required hereunder to be paid
by Tenant (I) as a result of an Event of Default or (II) as a result of any
failure by Tenant to comply with its 

 12
 

obligations hereunder or
any note executed in connection with the Lease or violation by Tenant of any of
the terms or provisions of this Lease or any note executed in connection with
the Lease or (III) any indemnity, defense or hold harmless obligation provided
for herein by Tenant or (IV) that are identified herein as being at Tenant’s “sole
cost” or “sole cost and expense” (whether using those words or words of similar
import) (collectively, “Excluded Expenses”);

E.              extraordinary, unusual or non-recurring
charges (provided that cash expenditures in respect of charges referred to in
this clause (E) may be deducted in determining Net Cash Flow only for the
period during which such expenditures were made);

F.              all losses from investments recorded
using the equity method;

G.             to the extent not otherwise included in
the determination of net income for such period, all proceeds of business
income or interruption insurance policies, if any, received during such period;
less  

2.               without duplication and to the extent included in
arriving at such net income, the sum of the following amounts for such period:

A.           extraordinary, unusual or non-recurring
gains (other than any insurance, condemnation, sale or other proceeds);

B.             non-cash gains (excluding any non-cash
gain to the extent it represents the reversal of an accrual or reserve for a
potential cash item that reduced Net Cash Flow in any prior period);

C.             all gains from investments recorded using
the equity method;

D.            all Priority Payments;

E.              principal payments on slot leases
permitted under the terms of this Lease;

in each case,
as determined in accordance with GAAP, except as otherwise expressly provided
herein.

4.4           Payment of Rent. All Rent and
other monies required to be paid to Landlord hereunder shall be paid without
offset, deduction, prior notice or demand, in lawful money of the United States
of America, at the offices of Landlord, at 155 East Tropicana Avenue, Las
Vegas, Nevada, or at such other place as Landlord may from time to time
designate in writing, to the extent not deposited pursuant to the Cash
Management Agreement.

 13
 

4.5           Lockbox
Account.  All revenue received by
Tenant in connection with Gaming Operations will be deposited pursuant to that
certain Cash Management Agreement dated as of even date herewith, by and
between Landlord and Tenant (the “Cash Management Agreement”). Until
such funds are deposited into the accounts established by the Cash Management
Agreement, they must be held by Tenant in trust for the benefit of Landlord,
and must be deposited into such accounts as soon as reasonably practical.  All amounts deposited in the accounts
established pursuant to the Cash Management Agreement will belong to and be the
property of Tenant except as otherwise expressly provided in this Lease or the
Cash Management Agreement.  All accounts
established pursuant to the Cash Management Agreement will be controlled by and
in the name of Landlord.  Funds in such
accounts shall be maintained, withdrawn and transferred in accordance with and
only in accordance with the terms of this Lease.  A breach of the covenant set forth in the
immediately preceding sentence by either party hereto, if such breach is not
cured within forty-eight (48) hours (or the next Business Day, if such
forty-eight (48) hour period expires on a day that is not a Business Day) after
written notice from the other party hereto, will be grounds for termination of
this Lease by the other party hereto.

4.6           Reporting.

(a)           Tenant must submit to Landlord, on or
before the twenty-fifth (25th) day of each calendar month during the Term,
commencing after the first full or partial calendar month of the Term, a
written statement signed by Tenant showing Net Cash Flow, the total gross
revenues received by Tenant and the itemized amounts paid or reserved for all
additions and subtractions applied in arriving at such Net Cash Flow, for the
preceding calendar month.  Together with
such report, Tenant must pay or deposit such sums as such report reveals to be
due and owing, although such payment and Landlord’s acceptance thereof will not
relieve Tenant of any liability arising as a result of such late payment.

(b)           In addition, on or before sixty (60)
days following the close of each calendar year (or the expiration or sooner
termination of this Lease), Tenant must furnish to Landlord a statement
certified by an officer of Tenant, or a certified public accountant employed by
Tenant, of the Net Cash Flow, the total gross revenues and the itemized amounts
paid or reserved for all additions and subtractions applied in arriving at such
Net Cash Flow, relating to Tenant’s operations at the Leased Property during
the preceding calendar year (or portion thereof).  Such report must include a monthly
itemization of all such reportable items and must include a reconciliation of
the monthly reports provided under Section 4.6(a), above.

(c)           For the purpose of ascertaining the
amount of reportable sales and revenue, Tenant agrees to record each and every
item of revenue at the time of the transaction on a computer system that
produces and maintains records of each such transaction in a record that cannot
be altered without also recording the occurrence and substance of such
alteration.  Tenant agrees that such
computer system will be set up so that such records cannot be changed by the
individual operating the computer system.

 14
 

(d)           If Tenant fails to prepare and
deliver any statement of Net Cash Flow in a timely manner as required herein
and such failure continues for more than ten (10) days after written notice
from Landlord, Landlord, may do any or all of the following:  (A) elect to treat Tenant’s failure to report
as an Event of Default under this Lease, (B) elect to make an audit, at Tenant’s
expense, of all books and records of Tenant which in any way pertain to or show
Net Cash Flow and to prepare the statement or statements which Tenant has
failed to prepare and deliver, in which event Tenant must reimburse Landlord,
as additional rent, for the cost of such audit and statement preparation and
immediately pay or deposit such sums as such audit reveals to be due and owing,
or (C) impose, as additional rent, a late/non-reporting fee of One Thousand
Dollars ($1,000.00) for each such failure by Tenant.  The statement or statements so prepared shall
be conclusive on Tenant, and Tenant shall pay, as additional rent, or deposit,
as applicable, on demand all expenses of such audit and of the preparation of
any such statements and all sums as may be shown by such audit to be due under
the terms of this Lease.

(e)           Subject to Applicable Laws, Landlord
may, in its sole and absolute discretion, provide a program for the purpose of
collecting daily sales information directly from Tenant via Tenant’s designated
representatives at the Leased Property. 
Tenant must cooperate with Landlord in connection with the installation
of any equipment required to implement such program and must use such
program.  The program may be in the form
of automated, computerized telecommunication. 
The costs and expenses in connection with the operation of the program
will be paid for either by Landlord as an Operating Expense or by proceeds from
the Capex Reserve or Joint Marketing Funds. 
The information collected may be used by Landlord for evaluating and
responding to market trends and such other matters as Landlord finds
appropriate.

4.7           Books and Records.

(a)           Tenant agrees to keep on the Leased
Property, accurate books and records (as more specifically identified in this
Lease) of all business conducted at the Leased Property in accordance with
GAAP, and said records shall be open and available for examination at the
Leased Property at all reasonable times by Landlord, or Landlord’s
representatives, upon reasonable notice to Tenant, for the purpose of
ascertaining or verifying the Net Cash Flow. 
All records must be retained by Tenant for examination by Landlord for a
period of at least seven (7) years following the end of the calendar year to
which said records apply.

(b)           Tenant further agrees that for the
purposes hereinbefore recited, Tenant shall prepare, preserve and maintain for
each calendar year, the following documents, books, accounts and records:

(1)  computer records maintained as recited
herein;

(2)  a single, separate bank account into which
all receipts of business and other revenue from operations on or from the
Leased Property are initially deposited in accordance with that certain Cash
Management Agreement;

 15

(3)  all bank statements detailing transactions in
or through any business bank account;

(4)  daily or weekly gaming revenue detailed
reports;

(5)  a general ledger or a summary record of all
cash receipts and disbursements from operations on or from the  Leased Property;

(6)  copies of all sales, gaming or use tax
returns filed with any governmental authority which reflect in any manner
sales, income or revenue generated in or from the Leased Property; and

(7)  such other records or accounts as Landlord may
reasonably require in order to ascertain, document, or substantiate reportable
Net Cash Flow as defined herein, and as are required pursuant to normal casino
reporting requirements that are standard to the industry within Clark County,
Nevada.

(c)           If upon inspection or examination of
Tenant’s available books and records of account, Landlord determines that
Tenant has failed to maintain, preserve, or retain the above-recited documents,
books, and records of account in the manner detailed herein, Landlord shall
give Tenant sixty (60) days within which to cure such deficiencies.  Further, if Tenant is found to be deficient
in maintaining any of the above-recited documents, books or records of account,
Tenant must reimburse Landlord for reasonable expenses incurred by Landlord in
determining said deficiencies, including, but not limited to, any audit or
examination fees incurred by Landlord.

If
after receiving the aforesaid notice, and upon expiration of the sixty (60) day
time period specified herein, Tenant fails to cure the noted deficiencies,
Landlord may, at its option, either grant Tenant additional time to cure the
deficiencies, treat such failure as an Event of Default under this Lease, or,
at Tenant’s expense and for Tenant’s benefit, retain a good and reputable
independent accounting or bookkeeping firm located in Clark County, Nevada, to
prepare and maintain the above-recited documents, books and records of
accounts.  If Landlord elects the latter
option, Tenant agrees and covenants that the representative or representatives
of said accounting or bookkeeping firm will have full right of entry and access
to the Leased Property and existing financial records, and full cooperation by
Tenant, for the purpose of establishing and maintaining the documents, records
and books of account recited hereinabove. 
Any expenses incurred by Landlord in furtherance of its rights hereunder
will be considered additional rent for the Leased Property (and not as a Tenant
Expense) and will be due and payable by Tenant with the next due installment of
Rent.

(d)           In the event an examination of the
records of Tenant to verify said Net Cash Flow discloses a deficiency in excess
of two percent (2%) of the Net Cash Flow reported for any calendar year, Tenant
agrees to pay to Landlord the reasonable costs and expenses of such audit 

 16
 

as additional
rent.  Any additional payments or
deposits found due and owing as a result of said audit must be immediately paid
by Tenant to Landlord upon demand.  If an
examination by Landlord or its representative discloses that Tenant has
overreported Net Cash Flow and that, as a result of said overreporting, Tenant
has overpaid any payment or deposit, Landlord shall credit such overpayments
against the next due installment of the applicable payment or deposit due and
owing by Tenant (or, if at the end of the Term, Landlord shall pay any such
amounts to which Tenant is entitled within thirty (30) days after Tenant has
delivered its final certified statement of Net Cash Flows to Landlord).

(e)           Landlord and Tenant both acknowledge
and agree that the accounting personnel employed by and reporting to Landlord
and Tenant, respectively, shall reasonably cooperate with one another to ensure
compliance with all Applicable Laws, Nevada Gaming Laws, and requests and
requirements of the Nevada Gaming Authorities, and to ensure accurate and
timely preparation, preservation, and maintenance of all books and
records.  Notwithstanding any other
provisions within this Lease, the provisions of this Section 4.7(e) shall survive
the termination of this Lease or the expiration of the Term.

4.8           Late Charges and Interest.

(a)
Notwithstanding anything in this Lease to the contrary, if Tenant fails to pay
any Rent or any other sum due and owing Landlord within five (5) days following
the due date of said Rent or other sum, then Tenant shall pay, as additional
Rent, a late charge of ten percent (10%) of the amount due.

(b)
In addition to any late charges provided for herein, any amount not paid by
Tenant within five (5) days after its due date in accordance with the terms of
this Lease shall bear interest from such due date until paid in full at the
lesser of the highest rate permitted by applicable law or fifteen percent (15%)
per year, payable as additional Rent. It is expressly the intent of Landlord
and Tenant at all times to comply with applicable law governing the maximum
rate or amount of any interest payable on or in connection with this Lease. If
applicable law is ever judicially interpreted so as to render usurious any interest
called for under this Lease, or contracted for, charged, taken, reserved, or
received with respect to this Lease, then it is Landlord’s and Tenant’s express
intent that all excess amounts theretofore collected by Landlord be credited on
the applicable obligation (or, if the obligation has been or would thereby be
paid in full, refunded to Tenant), and the provisions of this Lease immediately
shall be deemed reformed and the amounts thereafter collectible hereunder
reduced, without the necessity of the execution of any new document, so as to
comply with the applicable law, but so as to permit the recovery of the fullest
amount otherwise called for hereunder.

4.9           Distribution of Remaining Funds.
If, upon the expiration of the Term or the termination of the Lease, Landlord
has not obtained the necessary Approvals to operate the Gaming Operations, and
there are funds remaining in any of the reserve funds established under this
Lease or the Cash Management Agreement (the “Remaining Funds”), the
Remaining Funds will be used to pay down any remaining balance of principal and
interest on the Shortfall Note 

 17
 

and the Working
Capital Note, and if any Remaining Funds still remain following the pay-down of
the principal and interest on the Shortfall Note and the Working Capital Note
(such remaining Remaining Funds, the “Additional Remaining Funds”), any
such Additional Remaining Funds will be transferred into a separate account
controlled jointly by Landlord and Tenant (with neither Landlord nor Tenant
having authority to withdraw funds absent the joint signatures of both Landlord
and Tenant), which account will hold such Remaining Funds until either Landlord
obtains the necessary Approvals to operate the Gaming Operations or a successor
licensee to Tenant is designated and able to receive the Additional Remaining
Funds, whereupon such Additional Remaining Funds must be released to Landlord
or the successor licensee, as applicable. 
Any Additional Remaining Funds transferred to a successor licensee
succeeding Tenant will be transferred, free and clear of all liens other than
those permitted under the Cash Management Agreement or this Lease. If, within
one (1) year after the expiration of the Term or the termination of the Lease
other than pursuant to Section 3.3(a) or due to an Event of Default, Landlord
has neither obtained the necessary Approvals to operate the Gaming Operation or
designated a successor licensee, and there are Additional Remaining Funds, such
Additional Remaining Funds shall be transferred to Tenant.

ARTICLE V

EXPENSES AND LANDLORD OBLIGATIONS

5.1           Lease Expenses.

(a)           It is specifically understood and
agreed by and between Landlord and Tenant that this Lease is a “gross lease”
and the Base Rent payable by Tenant to Landlord under this Lease includes
direct payment by Landlord of all Operating Expenses.  Each cost or expense incurred or paid by
Tenant and each cost or expense incurred, accrued or paid by Landlord in
connection with the Leased Property or the operation of the Gaming Operations
at the Leased Property will be paid and accounted for in one of three (3)
ways:  (i) paid directly by Landlord as
an Operating Expense, in which case it will not be treated as an expense for
purposes of calculating Net Cash Flow; (ii) paid directly by Tenant as a Tenant
Expense, in which case it will be treated as an expense for purposes of
calculating Net Cash Flow; (iii) if it is an Excluded Expense or does not
qualify as a Tenant Expense, paid directly by Tenant and neither reimbursed by
Landlord nor treated as an expense for purposes of calculating Net Cash Flow;
or (iv) paid from a reserve account to the extent permitted under the terms of
this Lease, in which case it will not be a Tenant Expense.

(b)           “Operating Expenses” means all
costs and expenses that are incurred or accrued by Landlord in connection with
this Lease, Landlord’s obligations hereunder, or the operation of the Gaming
Operations, the Leased Property, or both. 
Operating Expenses are further described in Section 5.3, below.

(c)           If, following Tenant’s presentation
to Landlord of any operating budget, either Landlord or Tenant knows of or,
with reasonable inquiry, should know of any circumstance that 

 18
 

makes or is likely
to make such budget inaccurate in any material respect, such party must notify
the other party of such knowledge. 
Promptly following any such notice, both parties must meet and confer
and revise the applicable budget so as to address such knowledge.

(d)           Tenant may deduct as an expense for
purposes of calculating Net Cash Flow, all Tenant Expenses.  “Tenant Expenses” means all of the
following out-of-pocket costs and expenses to the extent actually and
reasonably incurred by Tenant in the ordinary course of business with respect
to Gaming Operations of Tenant at or in connection with the Leased Property,
that do not constitute Operating Expenses or Excluded Expenses, that are not
covered by insurance maintained or required to be maintained by Tenant, and
that are not paid using proceeds from any reserve funds established pursuant to
the terms of this Lease, without duplication: 
(i) all slot, table, poker, cage, surveillance (in connection with
Tenant’s obligations under Section 5.2 hereof) casino accounting, and certain
Gaming Operations-related general and administrative (to the extent not otherwise
permitted or limited below) expenses; (ii) those costs and expenses required by
applicable Nevada Gaming Laws to be paid by Tenant and all costs and expenses
for purchasing playing cards and decks and other similar gaming supplies and
for routine maintenance of the Gaming Assets (collectively, “Gaming Expenses”);
(iii) except for Live Entertainment Taxes for entertainment that is not
provided by Tenant, its agents, employees, contractors or licensees at the
Hotel (“Non-Lessee LET”), any taxes, fees, collections, impositions,
assessments, fines, penalties, late fees or any other charges of any kind (except
as limited in clause (iv) hereinbelow) that are imposed, collected, verified or
audited by any of the Nevada Gaming Authorities (collectively, “Gaming
Charges”); (iv) those costs and expenses that are reasonably required in
order for Tenant to maintain compliance with all applicable Gaming Approvals
and Nevada Gaming Laws, including gaming violations fines and penalties up to
an aggregate amount throughout the Term of Thirty Thousand and 00/100 Dollars
($30,000.00); (v) those costs and expenses incurred by Tenant in connection
with its obligations under Section 5.2; (vi) any wages, payroll taxes or costs
of fringe benefits incurred by Tenant for employees of Tenant or employees
under Tenant’s supervision as required hereunder or by Nevada Gaming Laws (all
of whom will be directly employed by Tenant); provided that amounts paid to
Tenant’s executive employees may be treated as a Tenant Expense only to the
extent that such executive employee devotes substantially all of her or his
time to the Gaming Operations at the Leased Property and all such executive
compensation does not exceed, in the aggregate, $460,000.00 per annum and
compensation for all other employees must be consistent with the past practices
of Tenant (prior to the date of this Lease) in the operation of the Gaming
Assets; (vii) any costs of servicing, maintenance, repairs or additions to or
replacements of the Gaming Assets; (viii) any personal property tax or other ad
valorem taxes on the Gaming Assets; (ix) premiums for all insurance policies
required to be carried by Tenant under Article IX hereof; (x) any payouts,
premiums or prizes or similar expenses related directly to operation of the
Gaming Operations; and (xi) all payments due under the slot machine leases
Tenant is permitted to maintain hereunder. 
Landlord shall pay all Operating Expenses in consideration of the Rent,
and Tenant shall pay directly to the applicable authority or payee all Tenant
Expenses, Non-Lessee LET to the extent paid to Tenant by Landlord as provided
in this Section 5.1, Excluded Expenses, and other expenses related to the
operation of the Gaming Operations that are not Tenant Expenses.  As between Landlord and Tenant, Landlord will
be responsible for payment to 

 19
 

Tenant of any
Non-Lessee LET that Tenant is required to pay to Nevada Gaming
Authorities.  As to any expenses paid for
as Tenant Expenses, any and all Claims of Tenant arising from any circumstances
giving rise to such Tenant Expenses are hereby presently and irrevocably
assigned to Landlord, and Tenant further agrees to reasonably cooperate with
Landlord in pursuing such Claims and, although no further instrument will be
required to make such assignment effective, as a condition precedent and, as
applicable, subsequent to Tenant’s right to treat such expenses as Tenant
Expenses, Tenant must sign such further instruments as Landlord requires in
order to make such assignment effective. 
Notwithstanding the foregoing provisions, Landlord may reject any such
assignment of Claims by Tenant at any time, upon written notice to Tenant of
the rejection of the assignment of such Claims.

5.2           Surveillance and Security. As
a Tenant Expense, Tenant shall be responsible for the installation,
maintenance, repair and (if necessary) replacement of all surveillance devices
(“Surveillance Equipment”) for both the Leased Property and the Hotel as
required by Nevada Gaming Authorities and applicable Nevada Gaming Laws and as
is customary for the operation of a first-class hotel and casino on the Las
Vegas Strip. All installation, maintenance, repair and replacement of
Surveillance Equipment by Tenant shall be performed under the supervision of
Landlord and in accordance with Nevada Gaming Laws and as a Tenant Expense. In
addition, as a Tenant Expense, Tenant shall be responsible for the operation of
the Surveillance Equipment and shall employ and supervise adequate numbers of
surveillance personnel. Landlord shall be responsible for all security for the
Leased Property at a level that is consistent with the level of security
provided to such portions of the Hotel prior to the date of this Lease.  Landlord shall supervise trained security officers
and other security personnel to provide security services to the Leased
Property and the remainder of the Hotel, as required by the Nevada Gaming
Authorities and in compliance with applicable Nevada Gaming Laws and as is
customary for the operation of a first-class hotel and casino on the Las Vegas
Strip.  Landlord and Tenant shall hold
periodic meetings to discuss and agree on the adequacy of such security
services.

5.3           Further Definition of Operating
Expenses. For the purposes of this Lease, Operating Expenses include (a)
all real and personal property taxes and assessments, both special and general,
and all other federal, state or local taxes of every kind and nature (other
than franchise, income, alternative minimum, gift, estate or other taxes in the
nature of income, gift or estate taxes, but including any taxes payable on the
net or gross Rent) levied or imposed on the Hotel or the Leased Property (but
not on the Priority Payments), but expressly excluding Gaming Charges and
gaming or entertainment taxes other than Non-Lessee LET, (b) all local or state
fees and taxes for occupancy or use of (but not including operation of the
Gaming Operations in) the Hotel or the Leased Property, (c) premiums for all
insurance policies required to be carried by Landlord under Article IX hereof,
(d) all costs of providing cleaning, janitorial services and trash removal for
the Hotel and Leased Property, including all wages and payroll taxes incurred
during the Term for employees providing such services and all costs of pest
control, carpet cleaning, glass cleaning or other services provided by
third-party vendors, (e) the cost of all inventory and supplies necessary to
operate the Hotel and the Leased Property (but not the Gaming Operations)
during the Term, such as cleaning supplies, paper and other restroom supplies,
janitorial equipment, waste baskets, directional signage, light bulbs, ballasts
and similar items, and (f) the 

 20
 

cost of all
maintenance, repair and replacement of the Hotel facility, including the Leased
Property, including carpet, flooring, wallcovering and décor maintenance,
repairs and replacement, as necessary; but specifically excluding from the
foregoing expenses and costs, all Tenant Expenses, Gaming Charges other than
Non-Lessee LET and Excluded Expenses. Landlord agrees to pay all ad valorem
taxes levied against the Hotel no later than the assessing or taxing authority’s
delinquency date. If permitted by Applicable Laws, Landlord may pay any tax,
charge or assessment in installments as determined by Landlord in Landlord’s
reasonable business judgment.  All
services performed by Landlord as part of the Operating Expenses that relate to
Tenant’s operation of the Gaming Operations (including, without limitation,
accounting, information technology and human resources) must be performed at a
level that is consistent with the level at which such services were provided to
the Gaming Operations prior to the Commencement Date subject to adjustments for
changes in volume of business.  If
Landlord fails to provide any such services at such levels and such failure
limits Tenant’s ability to continue to operate the Gaming Operations at the
level required hereunder and such failure continues for more than 48 hours
after written notice from Tenant, then Tenant may perform such services as a
Tenant Expense to the extent required to remove such limitation on Tenant’s
ability to so operate the Gaming Operations.

5.4           Employee Parking. Landlord
shall designate from time to time those parking areas (which may be on or off
the Hotel property, as elected by Landlord) to be used by employees of Tenant
at the Leased Property and Tenant shall require its employees to park only in
such designated areas. The number of parking spaces so designated shall not be
less than one (1) space per employee for the average number of Tenant’s
employees present at the Leased Property during the peak hour of Tenant’s
operations each week and shall be in materially the same location or locations
designated for the employees of the Hotel.

5.5           Alcoholic Beverages; Food.

(a)           Landlord shall cause its employees to
sell the alcoholic beverages offered by Landlord to Tenant for service to
customers of the Gaming Operations (“Gaming Customers”), which beverages
shall be signed for and approved by authorized representatives of Tenant for the
same price as such beverages are offered to non-Gaming Customers except for
well drinks, which will be sold to Tenant for $1.50 per beverage. The foregoing
price for well drinks shall be available only to Gaming Customers engaged in
gaming activities at the Leased Property and served by Landlord’s cocktail
servers or bartenders at the Hotel. Landlord shall invoice Tenant not more than
weekly for the sale of any alcoholic beverages to Gaming Customers that are not
paid for directly by such Gaming Customers. Tenant must pay such charges, as
additional rent, within two (2) business days after receipt of such
notice.  Alcoholic beverages other than
well drinks may be purchased by Tenant at the same price as such beverages are
offered to the general public. All such charges for alcoholic beverages shall
be Tenant Expenses to the extent incurred in the normal course of Gaming
Operations at the Leased Property and consistent with Tenant’s past practices
(prior to the date of this Lease) as adjusted for changes in the volume of
business.

 21
 

(b)           Complimentary meals from restaurants
operated by Landlord at the Hotel may be provided by Tenant to Gaming Customers
based upon pre-set, standard guidelines issued by Landlord to Tenant or the
host, which may be revised from time to time by Landlord upon written notice to
Tenant or the host.

5.6           Employee Meals. Landlord shall
offer to Tenant’s on-duty employees meals at Landlord’s employee dining room
for the same price as Landlord sells meals to Landlord’s employees at the Hotel.
In order to purchase such meals, each employee shall be required to identify
himself/herself to Landlord’s food servers as an on-duty employee of Tenant at
the time the meal order is placed and present a food coupon for each such meal
issued by Tenant in a form approved by Landlord.

5.7           Room Rentals. Subject to
availability and Landlord’s approval, which may be withheld in Landlord’s sole,
subjective discretion, Tenant shall be entitled to rent rooms in the hotel
portion of the Hotel for Tenant’s Gaming Customers at a rate equal to Landlord’s
then current “rack rate” for the applicable room type on the day of occupancy.
Tenant shall not charge a mark-up on such rooms or re-sell such rooms other
than to Gaming Customers.

5.8           Intentionally omitted.

5.9           Post-Lease-Term Expenses.  After the expiration of the Term or the
termination of the Lease, except to the extent paid by Tenant pursuant to
Section 5.10 below, Landlord must reimburse Tenant within ten (10) business
days after Landlord’s receipt from Tenant of reasonably satisfactory evidence
of payment by Tenant of the requested amount of any PLT Expenses and such other
information as Landlord may reasonably request in order to verify that the
requested PLT Expenses qualify as such.  “PLT
Expenses” means all actual, reasonable and out-of-pocket expenses related
to Gaming Operations conducted by Tenant from the Leased Property prior to the
expiration of the Term or the termination of this Lease (i) that are incurred
by Tenant in the ordinary course of Tenant’s business, (ii) that were paid to a
Person who is neither Tenant, an affiliate of Tenant, nor a Person in whom
Tenant or any principal or affiliate of Tenant holds any material interest or
to whom Tenant or any principal or affiliate of Tenant is related and (iii)
that Tenant is obligated to pay after the expiration of the Term or the
termination of this Lease and (iv) as to which Tenant would have been entitled
to reimbursement as a Tenant Expense or to treat as an expense for purposes of
calculating Net Cash Flow but for the expiration or termination of this
Lease.  Notwithstanding any other
provision of this Section 5.9, PLT Expenses shall not include any compensation
for Tenant’s executive employees. All revenue, income, proceeds and payments
received or receivable by Tenant after the expiration of the Term or the
termination of this Lease that relate to Gaming Operations conducted by Tenant
from the Leased Property prior to the expiration of the Term or the termination
of this Lease must be paid or assigned to Landlord immediately upon receipt and
until thus paid or assigned must be held in trust by Tenant for the benefit of
Landlord.  Tenant hereby presently and
irrevocably assigns to Landlord any and all Claims of Tenant arising in
connection with the Leased Property and all Gaming Operations conducted by
Tenant at the Leased Property and agrees to reasonably cooperate with Landlord
in pursuing such Claims and, although no further 

 22
 

instrument will be
required to make such assignment effective, Tenant will sign such further
instruments as Landlord requires in order to make such assignment
effective.  Notwithstanding the
foregoing, Landlord may reject any such assignment of Claims by Tenant at any
time, upon written notice to Tenant of the rejection of the assignment of such
Claims.   Notwithstanding any other
provisions within this Lease, the provisions of this Section 5.9 shall survive
the termination of this Lease or the expiration of the Term.

5.10         Notes; Holdback.  Upon the termination of the Lease or the
expiration of the Term, all funds in the Working Capital Account and in the
cage will be applied to any balance owed on the Shortfall Note and the Working
Capital Note before determination of the amount to be used in connection with
Section 1.7(ii) of the Purchase Agreement. 
Upon the termination of the Lease or the expiration of the Term,  One Million and 00/100 Dollars
($1,000,000.00), or such lesser amount as the parties hereto may reasonably
agree upon, shall be placed in a holdback account for Tenant’s exclusive use to
pay any PLT Expenses that are not paid pursuant to Section 5.9 hereof (the “Holdback
Account”). The Holdback Account shall be established by Landlord and Tenant
with an Eligible Institution (as defined in the Cash Management Agreement)
pursuant to a commercially reasonably holdback agreement.  Funds held in the Holdback Account and not
used by Tenant for payment of PLT Expenses within six (6) months following the
termination of the Lease or the expiration of the Term shall be returned to
Landlord.

ARTICLE VI

USE OF LEASED PROPERTY AND TENANT OBLIGATIONS

6.1           Conduct of Gaming Operations.
It is understood, and Tenant so agrees, that the Leased Property, at all times
during the Term, shall be used and occupied by Tenant solely for the conduct of
the Gaming Operations in compliance with all Applicable Laws and for purposes
directly related thereto and for no other purpose or purposes. At all times
during the Term, Tenant shall keep the Leased Property open for conduct of the
Gaming Operations in accordance with past practices, except during a Force
Majeure Event, renovation by Landlord and/or
construction activities of Landlord that make the continuing operation of the
Gaming Operations impractical. At all times during the Term, except during a
Force Majeure Event, Tenant shall maintain sufficient numbers of competently
trained and supervised employees necessary to adequately conduct the Gaming
Operations consistent with past operations at the Hotel and in accordance with
all Applicable Laws. In addition to any other remedies available to Landlord
under this Lease or at law or in equity, if Tenant fails to continuously
operate the Leased Property on the days and during the hours required
hereunder:  (a) Landlord shall have the
right to require Tenant to pay to Landlord, as additional rent and, in addition
to the Rent otherwise payable hereunder, as liquidated damages and not as a
penalty, an amount equal to one hundred percent (100%) of 1/365ths of the
annual Base Rent for each day on which Tenant fails to operate the Leased
Property as required under this Lease, which amounts are to compensate Landlord
for Landlord’s and Tenant’s estimate of the losses Landlord would suffer as a
result of lost Hotel occupancy and traffic resulting from such a failure and
for other actual and substantial 

 23
 

losses that
Landlord may suffer, all of which losses Landlord and Tenant acknowledge are
extremely difficult to forecast. Nothing contained in this Section 6.1 may be
construed to waive any rights and remedies Landlord may have against Tenant.
Landlord may offset any amounts payable by Tenant hereunder against any amounts
Landlord may owe Tenant.

6.2           Additional Obligations. Tenant
further agrees, at all times during the Term, that:

(a)
Tenant may promote its operations at the Hotel using only such trade name and
such trade marks and logos and other brand identifiers as are designated by
Landlord in Landlord’s sole, absolute and subjective discretion and will abide
by all licensing agreements related to the use of any such trade names, trade
marks, logos and other brand identifiers;

(b)
Tenant shall not conduct any auction, fire, distress or bankruptcy sales within
the Leased Property;

(c)
Tenant shall not use or permit the use of any portion of the Leased Property for
any unlawful purpose;

(d)
Tenant shall not perform any act or carry on any practice which may injure the
Leased Property, cause any offensive odors or loud noise, constitute a nuisance
or a menace, obstruct or materially interfere with the rights of Landlord, or
commit or suffer any immoral or illegal act to be committed thereon;

(e)
unless otherwise consented to by Landlord, which consent may be withheld in
Landlord’s sole discretion, Tenant shall conduct the Gaming Operations on a
twenty four (24) hour-a-day, seven (7) day-a-week basis;

(f)
Tenant shall not, without Landlord’s prior written consent, operate or permit
to be operated on the Leased Property any coin or token-operated vending
machines or similar devices for the sale or leasing to the public of any goods,
wares, merchandise, food, beverages, and/or service, excluding any and all
vending machines (including without limitation automated teller machines)
constituting Gaming Assets and located in the Leased Property as of the
Commencement Date, and provided that Tenant shall have the right to operate
Gaming Assets having capabilities similar to automated teller machines subject
to Gaming Approval by the Nevada Gaming Authorities, if required;

(g) without
limiting the provisions of Article I hereof, Tenant shall, at all times during
the Term, comply with all Applicable Laws and shall also comply with the terms
and conditions of any policies of insurance now or hereafter in effect
pertaining to the Leased Property or the Hotel, except that matters relating to
fire, building or other code deficiencies requiring alterations or improvements
to the Hotel shall be abated by Landlord as an Operating Expense; and

 24
 

(h) Tenant shall
not, without prior express written consent of Landlord, which may be withheld in
Landlord’s sole, absolute and subjective discretion, keep, use or store or
allow to be kept, used or stored, upon or about the Leased Property any
Hazardous Materials.  Notwithstanding
Section 7.4 or any contrary provision of this Lease, Tenant will remain the
owner of all Hazardous Materials installed or permitted to be installed by
Tenant or any of Tenant’s agents, contractors, licensees, invitees, or
employees upon or within the Leased Property. 
“Hazardous Materials” means and includes any substance, material,
waste, pollutant, or contaminant that is or could be regulated under any
Environmental Requirement or that may adversely affect human health or the
environment, including, without limitation, any solid or hazardous waste,
hazardous substance, asbestos, petroleum (including crude oil or any fraction
thereof, natural gas, synthetic gas, polychlorinated biphenyls (PCBs), and
radioactive material). “Environmental Laws” means all applicable present
and future statutes, regulations, ordinances, rules, codes, judgments, permits,
authorizations, orders, policies or requirements of any governmental or
quasi-governmental authority, agency or court or of any insurer of Landlord or
Tenant regulating or relating to health, safety, or environmental conditions on,
under, or about the Leased Property or the environment, including without
limitation, the following: the Toxic Substances Control Act, 15 U.S.C. Sec.
2601 et seq., the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, 42 U.S.C. Sec. 9601 et seq, the Resource Conservation
and Recovery Act of 1976, 42 U.S.C. Sec. 5901 et seq., the Federal Hazardous
Substances Act, 15 U.S.C. Sec. 1261 et seq., the Federal Water Pollution
Control Act, 33 U.S.C. Sec. 1251 et seq., the Clean Air Act, 42 U.S.C. Sec.
7401, et seq., the Federal Insecticide, Fungicide, and Rodenticide Act, 7
U.S.C. Sec. 136 et seq., the Emergency Planning and Community Right to Know Act
of 1986, 42 U.S.C. Sec. 11001 et seq., the Occupational Safety and Health Act
of 1970, 29 U.S.C. Sec. 651 et seq., the Hazardous Materials Transportation
Act, 49 U.S.C. Sec. 1801 et seq., the statutes of the State of Nevada found
currently at Chs. 444, 445A, 445B, 445C, 459, 477, 590, 618 or in the Uniform
Fire Code, and any common or civil law obligations including, without
limitation, nuisance, trespass or strict liability.

ARTICLE VII

MAINTENANCE OF LEASED PROPERTY

7.1           Maintenance by Landlord.
Landlord agrees that, from and after the Commencement Date of this Lease and at
all times during the Term, it will, as an Operating Expense, keep neat and
clean, and maintain in good order, condition and repair, the Leased Property
and every part and portion thereof, in a tenantable and attractive condition,
consistent with the terms hereof (whether or not the need for such maintenance
and repairs occurs as a result of Tenant’s use, any prior use, the elements or
the age of the Leased Property or any portion thereof), and Landlord shall with
commercially reasonable promptness and diligence make all necessary and
appropriate repairs and replacements thereto of every kind and nature, whether
interior or exterior, ordinary or extraordinary, foreseen or unforeseen,
including, but not limited to all necessary capital expenditures. All repairs
shall be made in a good, workmanlike manner, consistent with industry standards
for hotels similar to the Hotel in like locales, in 

 25
 

accordance with
all Applicable Laws relating to any such work. Landlord further agrees that the
Leased Property shall be kept in a clean, sanitary and safe condition, normal
wear and tear excepted, in accordance with all Applicable Laws and in
accordance with all directions, rules and regulations of all governmental
authorities, including, without limitation, the health officers, fire marshall,
building inspector, business license department, and other proper officers of
all such governmental authorities having jurisdiction over the Hotel and/or the
Leased Property. Notwithstanding the foregoing, Landlord shall not be liable to
Tenant, and Tenant waives any claims against Landlord for and releases Landlord
from any claim, damages, liability, legal action, loss, cost or expense
(collectively, the “Claims”), including loss of revenue or goodwill,
resulting from fire or other casualty, interruption of utilities or services,
acts of governmental authorities or other events not resulting from the
intentional and wrongful acts of Landlord, except to the extent covered by
insurance carried by Landlord pursuant to Article IX below.

7.2           Responsibilities of Tenant.
Without limiting Landlord’s obligations under Section 7.1 above, Tenant shall
direct its employees to use their best commercially reasonable efforts to keep
the Leased Property clean and in good working order, subject to ordinary wear
and tear, and Tenant and its employees, agents and contractors shall not
intentionally waste utilities or services provided by Landlord and shall not
unreasonably use or cause waste to the Leased Property so as to increase the
cost of cleaning, maintenance and repairs to be performed by Landlord. Tenant
shall not take or omit to take any action, the taking or omission of which
materially and adversely impairs the value or the usefulness of the Leased
Property or any part thereof.

7.3           Tenant Alterations; Signage.

(a)           Tenant shall not make alterations,
improvements and/or additions (collectively, “Alterations”) to the
Leased Property without first obtaining, in each instance, the prior express
written consent of Landlord, which consent may be granted or withheld in
Landlord’s sole, absolute and subjective discretion.  In no event may Tenant make any Alterations
that would affect the building structure or any utilities or building systems
of the Hotel, affect the exterior appearance of the Hotel, violate Applicable Laws
or the requirements of any insurer of the Hotel or result in an increase in the
Tenant Expenses.

(b)           Tenant must not exhibit or affix any
type of sign, decal, advertisement, notice or other writing, awning, antenna or
other projection to the roof or the outside walls or windows of the Hotel or
that is visible outside of the Leased Property, without Landlord’s prior
written approval, which may be withheld in Landlord’s sole, absolute and
subjective discretion.

7.4           Surrender of Improvements. All
additions, improvements and fixtures which may be made or installed by either
Landlord or, if consented to by Landlord pursuant to Section 7.3, Tenant upon
the Leased Property during the Term (including, without limitation, any Capital
Improvements constructed or installed using proceeds of the Capex Reserve Fund)
(a) will immediately upon such installation, and without payment of any sums by
Landlord therefor, become the property of Landlord and must thereafter remain
upon the Leased Property and (b) at the expiration or termination of this
Lease, must be surrendered with the Leased Property as a 

 26
 

part thereof unless
Landlord requires that such additions, improvements and fixtures be removed
upon such expiration or termination by written notice delivered to Tenant at
any time before such expiration or termination. 
Notwithstanding the foregoing, Tenant shall have the right (to the
extent permitted or required under Section 1.5 above and otherwise in
accordance with such Section 1.5) to remove any Gaming Assets constituting
trade fixtures. Any damage caused by such removal shall be reasonably repaired
by Tenant. Tenant shall remove its equipment and trade fixtures from the Leased
Property upon or prior to the expiration or earlier termination of the Term of
this Lease to the extent not otherwise transferred to Landlord pursuant to the
Purchase Agreement and in such manner as to minimize any negative impact on the
Gaming Operations and the guests of the Lease Property and the Hotel. In the
event Tenant shall fail to remove any additions, improvements and fixtures that
are required to be removed hereunder or to remove any personal property or
trade fixtures of Tenant within thirty (30) calendar days of the expiration or
earlier termination of the Term, Landlord may treat such failure as a holdover
under Section 3.5, and, in addition, Tenant may at any time thereafter, subject
to the Nevada Gaming Laws, at Tenant’s cost and expense, remove all of such
additions, improvements, fixtures, equipment, property and trade fixtures not
so removed and reasonably repair all damage to the Leased Property resulting
from such removal, and Tenant shall pay the cost thereof within ten (10) days
after receipt of an invoice therefor from Landlord.

7.5           Redelivery of Leased Property.
Upon expiration or earlier termination of this Lease, Tenant shall redeliver
the Leased Property, including, without limitation, all of Tenant’s
improvements and any Capital Improvements to the extent required to be left
upon the Leased Property pursuant to Section 7.4, to Landlord generally in the
same condition as it existed at the commencement of the Term, ordinary wear and
tear excepted. Upon such expiration or earlier termination, Tenant shall, and
it shall be Tenant’s sole obligation to, comply with all Nevada Gaming Laws and
directives of the Nevada Gaming Authorities with respect to the termination of
Gaming Operations or the Gaming Approvals at the Leased Property.

7.6           WARN Act Notices.  Landlord currently contemplates that, upon
the expiration of the Term, it may complete an extensive renovation of the
Hotel. Should such renovations result in significant adjustments to the Hotel’s
workforce, Tenant and Landlord must each comply with the Worker’s Adjustment
and Retraining Notification Act, 29 U.S.C. § 2101, et seq. (collectively with
any implementing rules and regulations, the “WARN Act”) as to its
respective employees, in connection with the expiration of this Lease.  Without limiting the foregoing, in connection
with such expiration, Tenant must, with respect to its employees, send the
notices that are required under the WARN Act in connection with a “mass layoff”
or “employment loss”, as those terms are defined under the WARN Act, unless
Landlord sends notice that no “mass layoff” or “employment loss” is contemplated
in connection with the expiration of the Term at least ninety (90) days prior
to such expiration.   Tenant and Landlord
will each reasonably cooperate with the other in connection with the other’s
WARN Act compliance efforts. Notwithstanding any other provision herein,
Landlord must reimburse Tenant for any amounts Tenant pays Tenant’s employees
who are subject to the WARN Act for “labor costs”, as such term is defined
under the WARN Act, until the earlier of (a) ninety (90) days or (b) until Tenant
has satisfied all of Tenant’s requirements under the WARN Act.

 27
 

ARTICLE VIII

INDEMNITY AND LIABILITY

8.1           Indemnification of Landlord.
Except to the extent arising from the negligence or intentional misconduct of
Landlord or any of its agents, contractors or employees (except with respect to
clause (f), below), Tenant hereby agrees to defend (with counsel reasonably
acceptable to Landlord), indemnify and save and hold harmless Landlord from and
against all Claims of whatever nature (a) arising from any wrongful act,
omission or negligence of Tenant or the contractors, licensees, agents,
servants or employees of Tenant (collectively with Tenant, the “Tenant
Parties”), or arising from any accident, injury or damage whatsoever caused
to any Person, or to the property of any Person, including that of Landlord or
any Tenant Party, occurring during the Term on or about the Leased Property,
including any Claim by a third (3rd) Person in connection with damage to the
Leased Property or any Tenant Party’s property located therein or property of
any Person within the Leased Property, (b) arising from any accident, injury or
damage occurring outside of the Leased Property, where such accident, injury or
damage results from a wrongful act, omission or negligence on the part of
Tenant or any Tenant Party, (c) arising from any and all Claims by any Tenant
Party’s employees, including, without limitation, wrongful termination and/or
other Claims resulting from the termination of any Tenant Party’s employees at
the Leased Property, (d) arising due to the failure of any Tenant Party to
obtain or maintain any necessary Approvals, (e) arising due to any breach or
violation of this Lease by Tenant, including, without limitation, any holdover
at the Leased Property or the presence of any Hazardous Materials on or about
the Hotel as a result of the acts or omissions of any Tenant Party, (f) arising
as a result of Landlord or its agents, contractors or employees taking any
direction from any Tenant Party, EVEN IF SUCH CLAIMS ARISE
FROM THE ORDINARY OR SIMPLE NEGLIGENCE OF LANDLORD OR ANY OF ITS AGENTS,
CONTRACTORS OR EMPLOYEES, or (g) arising from Tenant’s breach of any
of the representations or warranties set forth in this Lease.  In furtherance of the responsibility set
forth herein, the parties agree that Tenant shall obtain and pay for all
insurance as set forth in Article IX hereof, and have Landlord named as an
additional insured or loss payee, as applicable, under all such policies.

8.2           Tenant’s Own Risk.              Tenant agrees to use and occupy
the Leased Property and to use such other portions of the Leased Property as it
is herein given the right to use, at its own risk, and Landlord shall have no
responsibility or liability for any loss of or damage to fixtures or other
property of Tenant or any Tenant Party.

8.3           Indemnification by Landlord.
Except to the extent arising from the negligence or intentional misconduct of
Tenant or any of its agents, contractors or employees, Landlord hereby agrees
to defend, indemnify and save and hold harmless Tenant from and against all
Claims of whatever nature (a) arising from any wrongful act, omission or
negligence of Landlord or Landlord’s contractors, licensees, agents, servants
or employees, or arising from any accident, injury or damage whatsoever caused
to any person, or to the property of any person, including 

 28
 

that of Tenant’s or
Landlord’s agents or employees, occurring during the Term on or about those
portions of the Hotel other than the Leased Property, including any Claim by a
third (3rd)
person in connection with damage to the Hotel or Landlord’s property located
therein or property of any person within the Hotel, (b) arising from any
accident, injury or damage occurring outside of the Hotel, where such accident,
injury or damage results from a wrongful act or omission on the part of
Landlord or Landlord’s agents or employees (each, a “Landlord Party”),
or (c) arising from any and all Claims by Landlord’s employees, including,
without limitation, wrongful termination and/or other Claims resulting from the
termination of Landlord’s employees at the Hotel, including such Claims arising
due to (i) the failure of Landlord to obtain or maintain any necessary
Approvals, or (ii) a closure of the business (other than the Gaming Operations)
conducted on the Hotel for any reason, or (d) arising as a result of Tenant or
(as to Claims described in this clause (d) only) its agents, contractors or
employees taking any direction from any Landlord Party, EVEN (AS TO
CLAIMS DESCRIBED IN THIS CLAUSE (d) ONLY) IF SUCH CLAIMS ARISE FROM THE
ORDINARY OR SIMPLE NEGLIGENCE OF TENANT OR ANY OF ITS AGENTS, CONTRACTORS OR
EMPLOYEES. Landlord further covenants and agrees to defend,
indemnify and save and hold harmless Tenant from any and all Claims in
connection with or arising out of any obligations assumed by Landlord and
accruing after the termination of this Lease, except for any debts under any
obligations or contracts defined as Gaming Expenses or Operating Expenses
hereunder, for which Tenant agrees to defend, indemnify and hold Landlord
harmless.

8.4           Liability of Tenant.  Tenant will not be in default or breach of
this Lease or liable for any Claims by Landlord under this Lease or be
responsible for any late charges or default interest to the extent Tenant was prevented
from fulfilling its obligations hereunder due to the acts or omissions of
Landlord.

8.5           Survival. All indemnities set
forth herein shall survive expiration or earlier termination of this Lease.

ARTICLE IX

INSURANCE

9.1           Landlord Insurance Required.
Except for the insurance Tenant is required to obtain and maintain pursuant to
Section 9.2 below, Landlord shall, as an Operating Expense, obtain and
maintain, or cause to be maintained, at all times insurance for Landlord, the
Hotel and the Leased Property, complying with the terms of any mortgage or deed
of trust encumbering the Hotel, with such deductibles, co-insurance and
self-insured amounts as Landlord elects and providing at least the following
coverages:

(a)           Causes of Loss – Special Form
Building and Personal Property coverage insurance on the Hotel and the Leased
Property, in each case (A) in an amount equal to the full insurable replacement
cost thereof, which for purposes of this Lease shall mean actual replacement
cost (exclusive of costs of excavations, foundations, underground utilities and

 29
 

footings); and (B)
containing such endorsements and covering such additional risks as Landlord
shall determine in its discretion;

(b)           Occurrence-based Commercial General
Liability insurance against claims for personal and advertising injury, bodily
injury, death or property damage occurring upon, in or about the Hotel,
including the Leased Property, with such insurance (A) to be on the so-called “occurrence”
form with a general aggregate limit of not less than Fifty Million and 00/100
Dollars ($50,000,000.00) and a per occurrence limit of not less than Fifty
Million and 00/100 Dollars ($50,000,000.00); and (B) to cover at least the
following hazards: (1) premises and operations; (2) products and completed operations;
(3) independent contractors; (4) blanket contractual liability (including for
personal and advertising injury); and (5) contractual liability covering the
indemnities in this Lease, to the extent the same are available;

(c)           Business Income coverage insurance
covering the rents, reserve fund payments, Priority Payments and other amounts
due or payable under this Lease (A) with loss payable to Landlord or a lender
under a mortgage or deed of trust encumbering the Hotel; (B) covering all risks
covered by the insurance provided for in subsection (a) above and covering such
additional risks as Landlord elects; and (C) in such amounts and for such terms
of loss as Landlord shall determine in its discretion;

(d)           at all times during which structural
construction, repairs or alterations are being made with respect to the Hotel
or the Leased Property (A) owner’s contingent or protective liability insurance
covering claims not covered by or under the terms or provisions of the above
mentioned Commercial General Liability insurance policy; and (B) the insurance
provided for in subsection (a) above written on a so-called Builder’s Risk
Completed Value form (1) on a non-reporting basis, (2) insuring against all
Special Form causes of loss insured against pursuant to subsection (a) above,
(3) including permission to occupy the Hotel or Leased Property, and (4) with
an agreed amount endorsement waiving co-insurance provisions;

(e)           workers’ compensation, with at least
the statutory limits required by the State of Nevada, and employer’s liability
insurance relating to Landlord’s employees in respect of any work or operations
on or about the Hotel, or in connection with the Hotel or its operation (if
applicable) excluding Tenant’s employees; and

(f)            comprehensive Equipment Breakdown
(boiler and machinery) insurance, if applicable, on terms consistent with the
commercial property insurance policy required under subsection (a) above.

9.2           Tenant Insurance Required.
Tenant shall obtain and maintain, or cause to be maintained, at all times
insurance for Tenant and the Leased Property and, as applicable, the Hotel,
complying with the terms of any mortgage or deed of trust encumbering the
Hotel, with respect to the following coverages:

 30

(a)           Causes of Loss – Special Form
Building and Personal Property coverage insurance (on the then-current ISO
forms bearing those names or their equivalents or on forms that provide broader
coverage) on the Gaming Assets, in each case (A) in an amount equal to the full
insurable replacement cost thereof, which for purposes of this Lease shall mean
actual replacement cost; and (B) containing such endorsements and covering such
additional risks as Landlord shall determine in its reasonable discretion;

(b)           Commercial General Liability
insurance against claims for personal and advertising injury, bodily injury,
death or property damage occurring upon, in or about the Hotel, including the
Leased Property, with such insurance (A) to be on the so-called “occurrence”
form with a general aggregate limit of not less than Twenty-Five Million and
00/100 Dollars ($25,000,000.00) and a per occurrence limit of not less than
Twenty-Five Million and 00/100 Dollars ($25,000,000.00); and (B) to cover at
least the following hazards: (1) premises and operations, (2) products and
completed operations, (3) independent contractors, (4) blanket contractual
liability, (5) contractual liability covering the indemnities in this Lease, to
the extent the same are available, and (6) liquor liability coverage; and (C)
to name Landlord as an additional insured;

(c)           business income insurance covering
business income other than the components thereof that are required to be
insured by Landlord pursuant to Section 9.1(c) (A) with loss payable to Tenant;
(B) covering all risks covered by the insurance provided for in subsection (a)
above; (C) including dependent property coverage; and (D) in such amounts and
for such terms of loss as Landlord shall determine in its reasonable
discretion;

(d)           workers’ compensation, with at least
the statutory limits required by the State of Nevada, and employer’s liability
insurance with minimum limits of One Million and 00/100 Dollars ($1,000,000.00)
per occurrence and Five Million and 00/100 Dollars ($5,000,000.00) annual
aggregate relating to Tenant’s employees in respect of any work or operations
on or about the Hotel or Leased Property, or in connection with the Leased
Property or its operation (if applicable) excluding Landlord’s employees;

(e)           Comprehensive Crime insurance
covering employee dishonesty, burglary and robbery with a minimum limit of One
Million and 00/100 Dollars ($1,000,000.00) per loss;

(f)            employment practices liability
insurance, with limits of not less than One Million and 00/100 Dollars ($1,000,000.00);

(g)           if applicable, automobile insurance
for owned, hired and non-owned vehicles, including the loading or unloading
thereof, with liability limits of not less than One Million and 00/100 Dollars
($1,000,000.00)  in combined single limit
for bodily injury (including but not limited to wrongful death) and property
damage.

9.3           Insurers. All insurance
provided for in this Lease shall be obtained under valid and enforceable
policies (collectively, the “policies” or in the singular, the “policy”),
and shall be 

 31
 

issued by
financially sound and responsible insurance companies authorized to do business
in the State of Nevada and having AM Best’s ratings of A-/IX or better. Each of
the parties agrees to provide to the other certificates of insurance evidencing
the insurance to be maintained by such party under the terms of this Lease,
naming such other party as certificate holder and, if applicable, as additional
insured, which certificates shall provide that such insurance shall not be
terminated or materially modified without thirty (30) days prior written notice
to the certificate holder. Not less than ten (10) days prior to the expiration
dates of the policies evidenced by such certificates of insurance, revised
certificates evidencing renewal policies shall be delivered by the party
obligated to maintain such insurance to the other party.

9.4           Blanket Coverage. Any blanket
insurance policy shall specifically allocate to the Hotel and/or the Leased
Property the amount of coverage from time to time required hereunder and shall
otherwise provide the same protection as would a separate policy insuring only
the Hotel and/or the Leased Property in compliance with these provisions.

9.5           Clauses. All policies provided
shall contain clauses or endorsements to the effect that:

(a)           no act or negligence of the insured,
or anyone acting for the insured, or any tenant or other occupant, or failure
to comply with the provisions of any policy, which might otherwise result in a
forfeiture of the insurance or any part thereof, shall in any way affect the
validity or enforceability of the insurance insofar as any party named as
additional insured is concerned;

(b)           the policies by either party shall
not be materially changed (other than to increase the coverage provided
thereby) or canceled without at least thirty (30) days’ prior written notice to
the other party and any other party named therein as an additional insured;

(c)           any party named therein as an
additional insured shall not be liable for any insurance premiums thereon or
subject to any assessments thereunder; and

(d)           the policies shall not contain an
exclusion for acts of terrorism or similar acts of sabotage if such exclusion
may be deleted at commercially reasonable cost.

If
at any time either party is not in receipt of written evidence that all
insurance required hereunder to be maintained by the other party is in full
force and effect, such party shall have the right, after reasonable prior
notice to the other party, to take such action as such party deems necessary to
protect its interest, including, without limitation, obtaining such insurance
coverage as such party in its reasonable discretion deems appropriate. All
premiums incurred by such party in connection with such action or in obtaining
such insurance and keeping it in effect shall be paid by the other party upon
demand.

9.6           Payment of Premiums. The
parties shall pay all premiums for each policy of insurance required by this
Article IX to be maintained by it when due and shall forward a 

 32
 

certificate of
insurance evidencing the aforesaid coverage together with all appropriate
endorsements and riders showing the other party as an additional insured
therein, as applicable.

9.7           Hazardous Activities. Tenant
shall not use or occupy or permit the Leased Property to be occupied or used in
a manner which will materially increase the rates of any insurance for the
Hotel or Leased Property or the overall development within which the Hotel is
situated or that will make void or voidable any insurance then in force with respect
to the Leased Property or the overall development within which the Hotel is
situated, or which will make it impossible to obtain fire or other insurance
with respect to the Leased Property or the overall development within which the
Hotel is situated. If Tenant fails to comply with the provisions of this
Section 9.7, then, in addition to Landlord’s other remedies under this Lease,
Tenant shall reimburse Landlord for any increases in insurance premium charged
to Landlord as a result of Tenant’s non-compliance with this Section 9.7.

9.8           No Prohibited Activity. Tenant
agrees that it will not keep, use, sell or offer for sale in or upon the Leased
Property any article or permit any activity which may be prohibited by any
standard form of insurance policy. Tenant agrees to pay at its sole cost and
expense any increase in premiums for insurance which may be carried by Landlord
on the overall development in which the Hotel is situated, resulting from the
type of operations of, or merchandise sold, or services rendered by Tenant or
any of its activities in or about the Leased Property, whether or not Landlord
has consented to the same.

9.9           Release. Landlord and Tenant
mutually agree that with respect to any loss which is covered or required
hereunder to be covered by any property (including without limitation the
property insurance component of the insurance described in Section 9.2(f)),
boiler and machinery, loss of rents or business income insurance then being
carried or required to be carried by them respectively, the party hereto
carrying or required to carry such insurance and suffering said loss hereby
releases the other and the agents and employees of the other of and from any
and all Claims with respect to such loss only to the extent that such loss is
covered or required to be covered by the proceeds paid by the releasing party’s
insurance, including Claims with respect to the negligence of the parties
hereto or of their agents or employees; and Landlord and Tenant further
mutually agree that their respective insurance companies shall have no right of
subrogation against the other party hereto or the agents or employees of such
other party on account of any such loss, only to the extent that such loss is
covered or required to be covered by the proceeds paid by the releasing party’s
insurance and only to the extent such waiver does not invalidate coverage under
the covered party’s applicable insurance policies. For purposes of the
foregoing releases, any deductibles, self-insurance and co-insurance maintained
by the releasing party will be treated as paid to the releasing party by the
releasing party’s insurance.

 33
 

ARTICLE X

DAMAGE AND CONDEMNATION

10.1         Damage and Condemnation. In the
event that during the Term any portion of the Leased Property or the Hotel shall
be damaged or destroyed to any extent by fire or other casualty or taken by
condemnation or deed-in-lieu of condemnation, Landlord may, in its sole,
absolute and subjective discretion, elect, by written notice delivered to
Tenant at any time therafter, either: 
(a) to proceed forthwith to repair such damage and restore the Leased
Property, to the extent of insurance funds or condemnation proceeds, to
substantially their condition at the time of such damage, subject, however, to
zoning laws and building codes then in existence, or (b) to forego rebuilding
the damaged portions of the Leased Property and retain all insurance or
condemnation proceeds with respect to such casualty or condemnation, in which
case this Lease shall be deemed terminated and neither party shall have any
continuing or further obligation to the other except for those obligations
that, by their terms, survive the termination of this Lease.

10.2         Participation in Condemnation Award.
In the event of any condemnation of the Hotel or any portion thereof, Tenant
shall not participate in any respect in any part of the condemnation award that
may be made. Nothing herein contained, however, shall preclude Tenant from
asserting as against the condemning authority its claim for injury or damages occasioned
by such condemnation to the Gaming Assets or for relocation benefits under
Applicable Laws.  Any proceeds received
by Tenant must be included for purposes of calculating Net Cash Flow when
received or accrued by Tenant.

ARTICLE XI

LANDLORD’S COVENANT OF QUIET ENJOYMENT

11.1         Quiet Enjoyment. Tenant, on
payment of the Rent and observing, keeping and performing all of the terms and
provisions of this Lease on its part to be observed, kept and performed, shall
lawfully, peaceably and quietly have, hold, occupy and enjoy the Leased
Property during the Term without hindrance or ejection by Landlord or by any
Persons lawfully claiming under Landlord; provided, however, it is understood
and agreed that this covenant and any and all other covenants of Landlord
contained in this Lease shall be binding upon Landlord and its successors only
with respect to breaches occurring during its and their respective ownership of
Landlord’s interest hereunder.

11.2         Conduct of Gaming Operations.
Landlord understands and agrees that, except as otherwise provided under this
Lease or by Applicable Law and subject to Section 8.1, Tenant will have
complete control over Gaming Operations on the Leased Property and shall have
full authority to hire, discharge or discipline any and all of Tenant’s
employees. Except as expressly provided herein and subject to Section 8.1,
Landlord understands and agrees that Tenant shall be free to conduct the Gaming
Operations on the Leased Property without interference from or direction by
Landlord or any of its affiliates. Neither Landlord nor any agent or
representative of Landlord shall exercise, either directly or indirectly,
management or control of any kind 

 34
 

whatsoever, over
the conduct of Gaming Operations on the Leased Property, except as otherwise
provided under this Lease and allowed by Applicable Law.

ARTICLE XII

LIENS

12.1         Liens. Tenant shall at all times
indemnify, save and hold free, clear and harmless Landlord, the Leased Property
and the leasehold created by this Lease from any and all Claims, liens,
demands, charges, encumbrances, litigation and judgments arising directly or
indirectly out of any use, occupancy or activity of Tenant or out of any work
performed, material furnished or obligations incurred by Tenant in, upon or
otherwise in connection with the Leased Property. With respect to any
construction, alternation or repair contemplated by NRS §108.234, Tenant shall
give Landlord written notice at least ten (10) business days prior to the
commencement of any such work on the Leased Property to afford Landlord the
opportunity of filing appropriate notices of non-responsibility. Tenant shall,
at its sole cost and expense, within thirty (30) days after filing of any lien
of record, obtain the discharge and release thereof. Nothing contained herein
shall prevent Landlord, at the cost and for the account of Tenant, from
obtaining said discharge and any discharge or release so obtained by Landlord
shall be subject to Tenant’s reimbursement of same as additional Rent (and not
as a Tenant Expense or an Operating Expense except to the extent (i) Landlord
was obligated under this Lease to pay or reimburse Tenant for the costs of the
applicable construction, alteration and repair and (ii) unless the failure to
pay the applicable lien holder timely was due to Landlord’s breach of this
Lease, such costs do not exceed the amount that Tenant or Landlord would have
been required to pay had such amounts been timely paid to the applicable lien
holder) and reimbursement shall be due and payable by Tenant in accordance with
Article IV hereof.

ARTICLE XIII

EVENTS OF DEFAULT AND REMEDIES

13.1         Event of Default. The occurrence
of any of the following events shall constitute events of default by Tenant
under the terms of this Lease, individually, an “Event of Default” and,
collectively, “Events of Default”:

(a) Tenant shall
neglect or fail to perform or observe any of the covenants, terms, provisions
or conditions contained in this Lease on its part to be performed or observed,
except for any of the events described in clauses (b)-(h), below, within thirty
(30) days after written notice thereof from Landlord, or such additional time
as is reasonably required to correct any such default, but in no event more
than an additional thirty (30) days; or

(b) Tenant shall
neglect or fail to pay Rent, as provided for in Article IV, or any other
monetary obligation at any time owing from Tenant to Landlord within ten (10)
days after written notice thereof from Landlord; provided, however, that
Landlord need not give more than 

 35
 

two (2) such notices in
any twelve (12)-month period and that after the giving of such second notice,
any further failures to pay rent or any other monetary obligation when due
during the remainder of such twelve (12)-month period will be an Event of
Default without any notice, cure or grace period; or

(c) the leasehold
estate created by this Lease shall be taken on execution or by other process of
law; or

(d) subject to
Force Majeure Events, Tenant ceases to operate the Leased Property twenty-four
(24) hours per day, seven (7) days per week or if Tenant fails to operate the
Leased Property in accordance with the provisions hereof; or

(e) there is filed
by or against Tenant any petition in bankruptcy or Tenant is adjudicated as a
bankrupt or insolvent, or there is appointed a receiver or trustee to take
possession of Tenant or of all or substantially all of the assets of Tenant, or
there is a general assignment by Tenant for the benefit of creditors, or any
action is taken by or against Tenant under any state of federal insolvency or
bankruptcy act, or any similar law now or hereafter in effect, there is filed
an execution or attachment against Tenant and such execution or attachment
continues in effect for a period of thirty (30) calendar days; or

(f) Tenant fails to
maintain all necessary Approvals; or

(g) Tenant defaults under
the Shortfall Note or the Working Capital Note; or

(h) Tenant commits
any act or fails to take any action that is identified as a “default” or “Event
of Default” elsewhere in this Lease or under the Cash Management Agreement.

13.2         Landlord Remedies. Upon the
occurrence of any Event of Default by Tenant and upon the expiration of any
applicable cure period thereunder, Landlord may immediately, or at any time
thereafter, without further demand or notice, terminate this Lease or Tenant’s
right of possession under this Lease without any further liability of Landlord
hereunder in accordance with Applicable Law and exercise any and all other
remedies available to Landlord at law or in equity under the laws of the State
of Nevada, including, without limitation, any damages resulting from such Event
of Default. All of Landlord’s remedies provided herein or at law or in equity
are cumulative with and non-exclusive of each other.

13.3         Waiver. It is covenanted and
agreed that no waiver at any time of any of the provisions hereof shall be
construed as a waiver at any subsequent time of the same provisions. The
consent or approval of Landlord to or of any action by Tenant requiring
Landlord’s consent or approval shall not be deemed to waive or render
unnecessary Landlord’s consent or approval to or of any subsequent similar act
by Tenant.

13.4         Default of Landlord. Landlord
shall be in default under this Lease in the event Landlord fails to fund the
Working Capital Account pursuant to the provisions of the Cash Management
Agreement or to fund the Working Capital Loan pursuant to the terms of this
Lease 

 36
 

and ether such
failure continues for more than forty-eight (48) hours (or until the next
Business Day after such forty-eight (48) hour period, if such period expires on
a day that is not a Business Day) after written notice of such failure from
Tenant, or to perform any of the other covenants, terms, provisions or
conditions contained in this Lease on its part to be performed within thirty
(30) days after written notice thereof from Tenant, or such additional time as
is reasonably required to correct any such default, but in no event more than
an additional thirty (30) days (provided that such limitation to an additional thirty
(30) days shall not apply to Landlord’s obligations to perform construction,
repair or any other activities that are reasonably expected to take longer than
thirty (30) days to perform with the exercise of due diligence) (each such
occurrence, after giving effect to the foregoing notice and cure periods, a “Landlord
Default”).

13.5         Tenant Remedies. Upon the
occurrence of any Landlord Default and upon the expiration of any applicable
cure period thereunder, Tenant may immediately, or at any time thereafter,
without further demand or notice, terminate this Lease without any further
liability of Tenant hereunder in accordance with Applicable Law and exercise
any and all other remedies available to Tenant at law or in equity under the
laws of the State of Nevada, including, without limitation, any damages
resulting from such Landlord Default. All of Tenant’s remedies provided herein
or at law or in equity are cumulative with and non-exclusive of each other.

ARTICLE XIV

REPRESENTATIONS AND WARRANTIES

14.1         Representations and Warranties of
Landlord. Landlord hereby makes the following representations and
warranties to Tenant as of the Commencement Date:

(a)
Landlord has the full right, power and authority to enter into and to carry out
the terms and provisions of this Lease, including, without limitation, the
lease to Tenant of the Leased Property and other than the Approvals of the
Nevada Gaming Authorities, which Tenant covenants and agrees it shall have as
of the Commencement Date and at all times during the Term, no Approval of any
governmental authority or any other third (3rd) Person is required in connection
therewith and this Lease constitutes the legal, valid and binding Lease of
Landlord, enforceable in accordance with its terms, except to the extent that
enforcement may be affected by laws relating to bankruptcy, reorganization,
insolvency and creditors’ rights and by the availability of injunctive relief,
specific performance and other equitable remedies;

(b)
neither the execution and delivery of this Lease, nor the consummation of the
transactions contemplated hereby, will conflict with or result in a violation
or breach of any term or provision of, or constitute a default under (i) any
order, judgment, writ, injunction, decree, license, permit, statute, rule or
regulation of any court, governmental, regulatory or public body; or (ii) any
license, franchise, permit, indenture, mortgage, deed of trust, lease,
contract, instrument, commitment or other lease or arrangement to which Landlord
is a party or by which Landlord or the Leased Property, as applicable, is
bound; and

 37
 

(c)
no representation or warranty by Landlord contained in this Lease contains any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statement and facts contained herein not misleading.

14.2         Representations and Warranties of
Tenant. Tenant hereby makes the following representations and warranties to
Landlord as of the Commencement Date:

(a)
Tenant has the full right, power and lawful authority to enter into and to
carry out the terms and provisions of the Lease, including, without limitation,
the lease from Landlord of the Leased Property, and other than the Approvals of
the Nevada Gaming Authorities, which Tenant covenants and agrees it shall have
as of the Commencement Date and at all times during the Term, no Approval of
any Governmental Authority or any other third (3rd) Person is required in connection
therewith and this Lease constitutes the legal, valid and binding obligation of
Tenant, enforceable in accordance with its terms, except to the extent that
enforcement may be affected by laws relating to bankruptcy, reorganization,
insolvency and creditors’ rights and by the availability of injunctive relief,
specific performance and other equitable remedies;

(b)
neither the execution and delivery of this Lease, nor the consummation of the
transactions contemplated hereby, will conflict with or result in a violation
or breach of any term or provision of, or constitute a default under (i) any
order, judgment, writ, injunction, decree, license, permit, statute, rule or
regulation of any court, governmental, regulatory or public body; or (ii) any
license, franchise, permit, indenture, mortgage, deed of trust, lease, contract,
instrument, commitment or other Lease or arrangement to which Tenant is a party
or by which it or Tenant’s property, as applicable, is bound; and

(c)
no representation or warranty by Tenant contained in this Lease contains any
untrue statement of a material fact or omits to state a material fact necessary
in order to make the statement and facts contained herein not misleading.

ARTICLE XV

ESTOPPEL CERTIFICATES

15.1         Estoppel Certificates. Tenant
shall at any time and from time to time, within ten (10) days after written
notice from Landlord, execute, acknowledge and deliver to Landlord and any
prospective purchaser or lender identified by Landlord a statement in writing
(a) certifying that this Lease is unmodified and in full force and effect, or,
if modified, stating the nature of such modification and certifying that this
Lease as so modified, is in full force and effect, and the date to which the
rental and other charges are paid in advance or delinquent, if any, (b)
certifying the commencement and termination dates of the Lease, (c) certifying
that there has been no assignment or other transfer by Tenant of this Lease, or
any interest herein, (d) acknowledging that there are not, to Tenant’s
knowledge, any uncured defaults on the part of Landlord hereunder and that
Tenant has no right of offset, counterclaim 

 38
 

or deduction
against Rent, or specifying such default if any are claimed together with the
amount of any offset, counterclaim or deduction alleged by Tenant, and (e)
containing such further certifications as may be required by any lender of
Landlord’s or as may reasonably be required by Landlord.  Any such statements may be relied upon by any
existing owner or prospective purchaser or any present or prospective lender
upon the security of the Leased Property, the Hotel or both. Tenant’s failure
to deliver such statement within such time shall be conclusive and binding upon
Tenant (x) that this Lease is in full force and effect, without modification
except as may be represented by Landlord, and that the status of Rent payments
is as certified by Landlord, (y) that there are no uncured defaults in Landlord’s
performance and that Tenant has no right of offset, counterclaim or deduction
against rental, and (z) that no more than one (1) month’s Rent has been paid in
advance.

ARTICLE XVI

ASSIGNMENT OR SUBLETTING

16.1         Assignment. Tenant shall not
assign, mortgage, pledge, hypothecate or encumber this Lease nor the leasehold
estate hereby created nor any interest herein or therein, or sublet or license
the Leased Property or any portion thereof, or license the use of all or any
portion of the Leased Property without Landlord’s prior written consent, which
consent may be withheld in Landlord’s sole, absolute and subjective discretion.
Without limiting the foregoing, in no event may Tenant transfer this Lease or
any interest in the Leased Property to any Person (an “Assignee”) that
does not have all Approvals necessary for such Assignee’s performance of its
respective obligations hereunder. No assignment, sublease or transfer shall
release Tenant of any of its obligations under this Lease or be construed as,
or constitute a waiver of, any of Landlord’s rights or remedies hereunder. The
acceptance of Rent by Landlord from any other Person shall not be deemed to be
a waiver of any provision of this Lease or consent to the assignment, sublease
or transfer of Tenant’s interest in this Lease. Absent a written agreement to
the contrary which is executed by Landlord, no assignment, mortgage, pledge,
hypothecation or encumbrance of this Lease or sublease or license of the Leased
Property or any portion thereof by Tenant shall act as or effect a release of
Tenant from any of the agreements, obligations and covenants of this Lease to
be performed by Tenant hereunder.

16.2         No Merger. The voluntary or
other surrender of this Lease by Tenant, or a mutual cancellation hereof, or
the termination of this Lease by Landlord pursuant to any provision contained
herein, shall not work a merger, but at the option of Landlord, shall either
terminate any or all existing subleases or subtenancies, or operate as an
assignment to Landlord of any and all such subleases or subtenancies as
determined by Landlord, exercisable in Landlord’s sole discretion.

16.3         No Passage by Law. It is
understood and agreed that neither this Lease nor any interest herein or
hereunder, nor any estate hereby created in favor of Tenant, shall pass by
operation of law under any state or federal insolvency, bankruptcy or
inheritance act, or any similar Applicable Law now or hereafter in effect, to
any trustee, receiver, assignee for the benefit of creditors, heir, legatee,
devisee, or any other Person whomsoever without the express prior written
consent of Landlord, exercisable in Landlord’s sole discretion.

 39
 

ARTICLE XVII

RIGHT OF ACCESS

17.1         Right of Entry. Subject to
Nevada Gaming Laws, Landlord and its authorized agents and representatives
shall be entitled to enter the Leased Property at any reasonable time for the
purpose of (a) observing, posting or keeping posted thereon notices provided
for hereunder, and such other notices as Landlord may deem necessary or
appropriate for protection of Landlord, its interest or the Leased Property,
(b) inspecting the Leased Property or any portion thereof, (c) inspecting the Leased
Property relative to concerns over use, storage or disposal of Hazardous
Materials, and (d) making repairs to the Leased Property or any other portion
of the Hotel and performing any work therein or thereon which Landlord may
elect or be required to make hereunder, including, without limitation, Landlord’s
maintenance and repairs, or which may be necessary to comply with any
Applicable Laws or any applicable standards that may, from time to time, be
established by an insurer, or which Landlord may deem necessary or appropriate
to prevent waste, loss, damage or deterioration to or in connection with the
Leased Property or any other portion of the Hotel or for any lawful purpose. In
no event shall Landlord have access to any area for which access is restricted
in accordance with Nevada Gaming Laws, except pursuant to such laws. Except in
emergency situations, Landlord shall give Tenant at least twenty-four (24)
hours prior notice of entry. Landlord shall have the right to use any means
which Landlord may deem proper to open all doors in the Leased Property in an
emergency. Entry into the Leased Property obtained by Landlord by any such
means shall not be deemed to be forcible or unlawful entry into, or a detainer
of, the Leased Property, or an eviction of Tenant from the Leased Property or
any portion thereof or otherwise subject Landlord to any liability in
connection therewith (and Tenant hereby waives any Claims against Landlord and
its agents, employees and contractors arising in connection therewith). Nothing
contained herein shall impose or be deemed to impose any duty on the part of
Landlord to do any work or repair, maintenance, reconstruction or restoration,
which under any provision of this Lease is required to be done by Tenant, and
the performance thereof by Landlord shall not constitute a waiver of Tenant’s
default in Tenant’s failure to do the same.

ARTICLE XVIII

REMEDIES

Intentionally
Omitted.

ARTICLE XIX

SUBORDINATION

19.1         Subordination by Tenant. Tenant
agrees that this Lease and its rights hereunder are subject and subordinate to
the lien of any mortgage, deed of trust or other encumbrance, together with any
renewals, extensions or replacements thereof, now or hereafter placed, charged
or enforced against the Leased Property, or any portion thereof, and Tenant
agrees to execute and 

 40
 

deliver at any
time, and from time to time, upon ten (10) calendar days written demand from
Landlord, such documents as may be reasonably requested to evidence and confirm
such subordination (but no such document shall be necessary to effectuate such
subordination), and in the event that Tenant shall fail, neglect or refuse to
execute and deliver any such documents to be executed by it within ten (10)
calendar days after receipt of written request by Landlord, Tenant hereby
appoints Landlord, its successors and assigns, the attorney-in-fact of Tenant
irrevocably to execute and deliver any and all such documents for and on behalf
of Tenant; provided, however, that, subject to the terms of this Lease, such
subordination is and shall be subject to the condition that the mortgagee or
beneficiary named in such mortgage or deed of trust shall recognize this Lease
and shall not disturb the possession of Tenant except as expressly provided
herein. Tenant acknowledges that the power of attorney granted hereby is
coupled with an interest.

19.2         Deemed Prior Lien. In the event
that the mortgagee or beneficiary of any such mortgage, deed of trust, or other
encumbrance elects to have this Lease deemed a prior lien to its mortgage, deed
or trust, or other encumbrance, then and in such event, upon such mortgagee’s
or beneficiary’s giving written notice to Tenant to that effect, this Lease
shall be deemed a prior lien to such mortgage, deed of trust, or other
encumbrance, whether this Lease is dated prior to or subsequent to the date or
recordation of such mortgage, deed or trust, or other encumbrance.

19.3         Attornment. Tenant shall, in the
event any proceedings are brought for the foreclosure of any mortgage, deed of
trust, or other encumbrance against the Leased Property or the Hotel or in the
event of exercise of the power of sale under any deed of trust covering the
Leased Property or the Hotel or termination of any ground lease of the Leased
Property or the Hotel, attorn to the purchaser upon such foreclosure or sale,
and recognize such purchaser as lessor under this Lease so long as, except as
otherwise provided in this Lease, neither this Lease nor any of the rights of
Tenant hereunder shall be terminated or modified or be subject to termination
or modification so long as Tenant is not in default under this Lease beyond
applicable periods of grace.

ARTICLE XX

MISCELLANEOUS PROVISIONS

20.1         Governing Law; Consent to
Jurisdiction. This Agreement shall be construed and interpreted in accordance
with and shall be governed and enforced in all respects according to the laws
of the State of Nevada, without giving effect to any conflicts of laws
principles that would require the application of the law of another
jurisdiction. Tenant and Landlord each agree to the exclusive jurisdiction of
any state or federal court within the County of Clark, State of Nevada, with
respect to any claim or cause of action arising under or relating to this
Agreement, and waive personal service of any and all process upon it and
consent that all services of process be made by registered mail, directed to it
at its address as set forth in Section 20.12 and service so made shall be
deemed to be completed when received. Tenant and Landlord each waive any
objection based on forum non conveniens and waive any objection to venue of any
action 

 41
 

instituted
hereunder. Nothing in this Section 20.1 shall affect the right of Tenant or
Landlord to serve legal process in any other manner permitted by Applicable
Laws.

20.2         Headings. The paragraph headings
to this Lease are for convenience and reference only and the words contained
therein shall in no way be held to explain, modify, amplify or aid in the
interpretation, construction of meaning of the provisions of this Lease.

20.3         Construction. If any term or
provision of this Lease, or the application thereof to any person or
circumstances shall, to any extent, be invalid or unenforceable, the remainder
of this Lease, or the application of such term or provision to persons or
circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected thereby, and each term and provision of this Lease shall
be valid and enforced to the fullest extent permitted by law.

20.4         Binding. Except as herein
otherwise expressly provided, the terms hereof shall be binding upon and shall
inure to the benefit of the heirs, executors, administrators, successor and
assigns of Landlord and Tenant, subject to restrictions on assignment of this
Lease as provided herein. Notwithstanding the foregoing, this Lease and Tenant’s
obligations hereunder are not assignable by Tenant except as otherwise
expressly provided in this Lease and subject to all required Gaming Approvals.

20.5         Attorney’s Fees. Each party
hereto shall bear its own professional fees and expenses incurred by such party
in connection with, relating to or arising out of the execution, delivery and
performance of this Lease and the consummation of the transactions contemplated
hereby.  In the event of litigation
between the parties hereto arising out of the obligations of either party under
this Lease or concerning the meaning or interpretation of any provision
contained herein, the losing party shall pay the prevailing party’s costs and
expenses of such litigation, including, without limitation, reasonable attorney’s
fees.

20.6         Entire Agreement; Amendments.
This Lease contains the entire agreement and understanding of the parties with
respect to the subject matter hereof and cannot be changed or terminated
orally.

20.7         Interpretation. Plural shall be
substituted for the singular form and vice versa in any place or places herein
in which the context requires such substitution or substitutions.

20.8         Liens. Should any claim or lien
be filed against the Leased Property, or any action or proceeding is instituted
affecting the title to the Leased Property, Tenant shall give Landlord written
notice thereof as soon as reasonably possible after Tenant obtains actual or
constructive knowledge thereof.

20.9         No Partnership. Nothing contained
in this Lease shall be deemed or construed by the parties hereto or by any
third (3rd)
party to create the relationship of principal and agent or of partnership or of
joint venture or of any association between Landlord and Tenant, nor shall 

 42
 

anything contained
herein be deemed to create any relationship between Landlord and Tenant other
than the relationship of landlord and tenant.

20.10       Recordation. Neither this Lease
nor a memorandum hereof may be recorded by Tenant.

20.11       Time. Time is of the essence of
this Lease and all of the terms and conditions hereof.

20.12       Notice. Any and all notices that
either party hereto desires or is required to give to the other party pursuant
to this Lease shall be in writing and delivered in person, sent by overnight
courier (with confirmation of delivery) or sent by express, certified or
priority U.S. mail postage prepaid (return receipt requested), addressed as
follows:

	
  

  	
  If to Landlord:

  	
   

  	
  Hedwigs Las Vegas Top Tier, LLC

  
	
   

  	
   

  	
   

  	
  2587 S. Westgate
  Ave.

  
	
   

  	
   

  	
   

  	
  Los Angeles, CA
  90064

  
	
   

  	
   

  	
   

  	
  Attention:
  Richard Bosworth

  
	
   

  	
   

  	
   

  	
  Richard@NTHAdvisory.com
  and HedwigsLV@yahoo.com (email)

  
	
   

  	
   

  	
   

  	
  Telephone No.:
  (310) 420-6099

  
	
   

  	
   

  	
   

  	
  Facsimile No.:
  (310) 496-3132

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and with a copy
  to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Stoel Rives LLP

  
	
   

  	
   

  	
   

  	
  111 Sutter
  Street, Suite 700

  
	
   

  	
   

  	
   

  	
  San Francisco,
  CA 94104

  
	
   

  	
   

  	
   

  	
  Attention:  Alexander Hamilton, Esq.

  
	
   

  	
   

  	
   

  	
  aehamilton@stoel.com
  (email)

  
	
   

  	
   

  	
   

  	
  Telephone
  No.:  (415) 617-8954

  
	
   

  	
   

  	
   

  	
  Facsimile
  No.:  (415) 676-3000

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If to Tenant:

  	
   

  	
  155 East Tropicana, LLC

  
	
   

  	
   

  	
   

  	
  155 East Tropicana
  Ave.

  
	
   

  	
   

  	
   

  	
  Las Vegas, NV
  89109

  
	
   

  	
   

  	
   

  	
  Attention:
  Michael Hessling

  
	
   

  	
   

  	
   

  	
  hessling@hooterslv.com
  (email)

  
	
   

  	
   

  	
   

  	
  Telephone No.:
  (702) 739-9000

  
	
   

  	
   

  	
   

  	
  Facsimile No.:
  (702) 739-7783

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  with copies of
  any notices to:

  

 

 43
 

107 Hampton Road, 2nd Floor

Clearwater, FL  33759

Attention:  Niel Keifer

Lucy.Grinnell@originalhooters.com

Telephone No.:  (702)725-2551

Facsimile No.: 
(727)725-4717

and
with a copy to:

Kummer Kaempfer Bonner
Renshaw & Ferrario

3800 Howard Hughes
Parkway, 7th Floor

Las Vegas, Nevada  89169

Attention:  Sherwood Cook, Esq.

scook@kkbrf.com

Telephone No.:  (702)792-7000

Facsimile No.: 
(702)769-9181

or to such other
person or place as either party hereto may designate in writing in the manner
provided herein for giving notice. Each such notice so delivered, couriered or
mailed shall be deemed delivered when received or refused by the Person to whom
it is addressed.

20.13       Counterparts. This Lease may be
executed in counterparts and all of such counterparts, taken together, shall be
deemed part of one instrument.

20.14       Gaming Authorities Requirements.
Landlord and Tenant agree that notwithstanding any of the provisions herein, if
at any time during the Term, the Nevada Gaming Authorities require or prohibit
any act on the part of Landlord or Tenant (other than a prohibition on the
payment of Rent or any other sum hereunder by Tenant), Landlord or Tenant, as
applicable, shall comply with such requirement or prohibition as the case may
be, and any such compliance shall not be deemed a breach of this Lease, unless
such requirement or prohibition arises out of the applicable party’s failure to
comply with applicable law or the terms of this Lease.

20.15       Waiver of Jury Trial. TENANT AND
LANDLORD WAIVE ANY RIGHT TO TRIAL BY JURY OR TO HAVE A JURY PARTICIPATE IN RESOLVING
ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, BETWEEN LANDLORD
AND TENANT ARISING OUT OF THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT, OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED HERETO.

20.16
Landlord’s Lien/Security Interest. Tenant hereby grants Landlord a
security interest, and this Lease constitutes a security agreement, within the
meaning of and pursuant to the Nevada Uniform Commercial Code as to all of
Tenant’s property situated in or upon, or used in connection with the Leased
Property (collectively, the “Collateral”) as security for all of 

 44
 

Tenant’s
obligations hereunder, including without limitation, the obligation to pay Rent
and make reserve account contributions and Tenant’s obligations under the
Working Capital Note. Such personalty thus encumbered specifically includes all
Gaming Assets and all trade and other fixtures and inventory, equipment,
contract rights, accounts receivable and the proceeds thereof. Tenant hereby irrevocably
authorizes Landlord and/or Landlord’s agent to file such Uniform Commercial
Code and other filings as Landlord deems appropriate in order to perfect such
security interest. Tenant further agrees to sign such other financing
statements or other documents as reasonably requested by Landlord to further
secure Landlord’s interest under this paragraph as often as Landlord in its
discretion requires.

20.17 OFAC Compliance.

(a)           Certification.  Tenant certifies, represents, warrants and
covenants that:

(i)            it is not acting and will not act,
directly or indirectly, for or on behalf of any person, group, entity, or
nation named by any Executive Order or the United States Treasury Department as
a terrorist, “Specially Designated National and Blocked Person”, or other
banned or blocked person, entity, nation or transaction pursuant to any law,
order, rule, or regulation that is enforced or administered by the Office of
Foreign Assets Control; and

(ii)           it is not engaged in this
transaction, directly or indirectly on behalf of, or instigating or
facilitating this transaction, directly or indirectly on behalf of, any such
person, group, entity or nation.

(b)           Indemnity.  Tenant hereby agrees to defend (with counsel
reasonably acceptable to Landlord), indemnify and hold harmless Landlord and
its agents, contractors and employees from and against any and all Claims
arising from or related to any such breach of the foregoing certifications,
representations, warranties and covenants.

20.18
Exculpation. If Landlord fails to perform any covenant, term or
condition of this Lease upon Landlord’s part to be performed and, as a
consequence of such failure, Tenant recovers a money judgment against Landlord,
such judgment shall be satisfied only out of the proceeds of sale received upon
the execution of such judgment and levy thereon against the right, title and
interest of Landlord in the Hotel and out of rent or other income from the
Hotel receivable by Landlord or out of the consideration received by Landlord
from the sale or other disposition of all or any part of Landlord’s right,
title and interest in the Hotel. Neither Landlord nor any of the partners,
beneficiaries, officers, directors, members, venturers, shareholders or
affiliated entities of Landlord shall be personally liable for any deficiency
except to the extent of their fraudulent acts or omissions. Neither Tenant nor
any of the partners, beneficiaries, officers, directors, members, venturers,
shareholders or affiliated entities of Tenant shall be personally liable for
any judgment recovered by Landlord against Tenant except to the extent of their
fraudulent acts or omissions.

 45

20.19
Brokerage. Tenant and Landlord each warrants to the other that it has
had no dealings with any broker or agent in connection with this Lease. Tenant
and Landlord covenant and agree to pay, hold harmless and indemnify the other
from and against any and all Claims for any compensation, commissions and
charges claimed by any broker or agent alleging to have dealt with the
indemnifying party with respect to this Lease or the negotiation hereof
(including, without limitation, the cost of legal fees in connection
therewith).

20.20
Accord and Satisfaction. No payment by Tenant or receipt by Landlord of
a lesser amount than any payment of Rent herein stipulated shall be deemed to
be other than on account of the earliest stipulated Rent, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment of Rent be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the
balance of such Rent or pursue any other remedy provided for in this Lease or
available at law or in equity. Any check purporting to be an accord and
satisfaction must be delivered to the address to which notices are to be sent
hereunder (with copies to the addresses to which copies of such notices are to
be sent) and not to the address for payments.

20.21
Landlord’s Right To Install Items in the Leased Property.  Landlord reserves the right to install,
repair, replace and remove (without regard to whether they were placed there
before or after the Commencement Date) within and upon the Leased Property such
directories, signs, advertising, fixtures, furnishings, displays, equipment,
kiosks, booths, stands and similar items as Landlord elects in its sole,
absolute and subjective discretion.   Tenant will have no Claim as a result of any
such installation, repair, replacement or removal, whether for interference
with quiet enjoyment, constructive eviction or otherwise and will not be
entitled to any rent abatement as a result thereof.  However, in connection with any such
installation, Landlord must use good faith efforts to minimize any adverse
impact on the operation of the Leased Property that results therefrom.

20.22  Confidentiality.  Tenant shall not release any public
announcement or press release concerning this Lease or the terms hereof without
obtaining the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned, or delayed, except as may be required by
any applicable law, rule, or regulation. In the course of conducting the Gaming
Operations and operating the Leased Property, Landlord or Tenant may be exposed
to trade secrets or other confidential or proprietary information and materials
of each other including, but not limited to, information about or identities of
customers or guests of Landlord, Tenant or the Hotel (including, without
limitation, information relating to the Slot Club or the members or former
members thereof) (collectively, “guest information”), gaming
information, Standard Operating Procedures (“SOPs”), guest satisfaction
surveys, and studies, management guidelines, procedures, operating manuals and
software (“Confidential Information”). 
Landlord or Tenant agree to hold in confidence and not to disclose any
Confidential Information of any other party to this Lease to a third-party
during, and for two (2) years after, the term of this Lease or, with respect to
guest information only, at anytime after the term of this Lease, except that
Landlord or Tenant may use or disclose Confidential Information (a) to each’s
employees or others to the extent necessary to render any service contemplated
hereunder; (b) to the extent 

 46
 

expressly
authorized in writing by the party to whom such information belongs; (c) to the
extent that at the time of disclosure, such Confidential Information is in the
public domain, or after disclosure, enters the public domain other than by
breach of the terms of this Lease; (d) is in the possession of a party at the
time of disclosure and is not acquired directly or indirectly from the party to
whom such information belongs; (e) is subsequently received on a
non-confidential basis from a third party having a right to provide such
information; or (f) as required by order during the course of a judicial or
regulatory proceeding or as required by a governmental authority, provided the
non-disclosing party is given adequate notice of and an opportunity to oppose
such order or requirement. Landlord or Tenant agree not to photocopy or
otherwise duplicate any Confidential Information of another party without the
express written consent of such other party. 
The Confidential Information shall remain the exclusive property of
Landlord or Tenant, as applicable and shall, to the extent in another party’s
possession, be returned to the party to whom such information belongs upon
termination or expiration of this Lease. 
For purposes of this Section 20.22 and notwithstanding any contrary
provision of this Lease, all Confidential Information gained or acquired by
Tenant during the Term of this Lease in connection with Tenant’s or Landlord’s
operations at the Hotel will be the exclusive property of Landlord during and
after the Term of this Lease (but subject to Tenant’s right to use such
Confidential Information in accordance with this Lease during but not after the
Term) and must be returned or delivered to Landlord upon the expiration or
termination of this Lease.  Without
limiting the foregoing, all copies of any guest information, whether
electronic, paper or otherwise, that are in Tenant’s possession (or in the
possession of any person under the control of or under common control with
Tenant) must be returned to Landlord upon the expiration or termination of this
Lease.  Notwithstanding the foregoing,
following the termination of this Lease or the expiration of the Term, Tenant
may continue using their own SOPs and may continue to observe policies and
procedures that were implemented and observed by Tenant prior to such
termination, so long as such SOPs, policies and procedures are not disclosed
publicly.  In the event of any breach of
this provision, Landlord or Tenant, as applicable, shall be entitled to
equitable relief, in addition to all other remedies otherwise available at law.
This provision shall survive the termination or expiration of this Lease.

22.23       Nonrecourse Intention of the Parties.  Notwithstanding any other provision of this
Agreement, it is the intention of the parties hereto that the Leased Property
be operated by Tenant using funds from the Gaming Operations or Landlord, as
provided herein, and at the expense of Landlord, except as specifically
provided herein, and without recourse to Tenant except as to the obligations of
Tenant specifically set forth herein.

20.24       Force Majeure.  Landlord or Tenant will be excused for the
period of delay in the performance of any of their respective obligations
hereunder, except their respective obligations to pay any sums of money due
under the terms of this Lease, and shall not be considered in default, when
prevented from so performing by any labor disputes, business downturns
(including shortage of available labor) caused by renovations of the Hotel,
order of governmental authorities not caused by Tenant, civil commotion, war,
fire or other casualty, changes (after the date of this Lease) in governmental
regulations, statutes, ordinances, restrictions or decrees, acts 

 47
 

of God or any
circumstance that was beyond the reasonable control of the party claiming that
a force majeure event has occurred 
(collectively, “Force Majeure Events”).

ARTICLE XXI

WORKING CAPITAL LOAN

On the Commencement Date, and subject to all required
Gaming Approvals, Landlord will make a working capital loan to Tenant in an
amount equal to the sum of (a) the Cage Cash as of the Cut-Off Time plus (b) One
Million and 00/100ths Dollars ($1,000,000.00) (the “Working Capital Loan”).
Subject to Applicable Law, Tenant must use any proceeds received from the
Working Capital Loan for Tenant Expenses. Tenant may not use the proceeds of
the Working Capital Loan for payment of Excluded Expenses.  The Working Capital Loan shall be evidenced
by a promissory note in the form and substance attached hereto as Exhibit B
(the “Working Capital Note”), bearing interest at a fixed rate equal to
ten percent (10%) per annum (the “Working Capital Note Rate”) with
monthly payments in arrears on the last day of each calendar month of interest
only at the Working Capital Note Rate on the average daily principal balance of
the Working Capital Note for such month. 
Such payments shall be made from available Net Cash Flow from the Gaming
Operations after the payment of Base Rent, the Priority Payment, and the
amounts required to be paid pursuant to Sections 4.3(a) and 4.3(b) for the
prior month.  If available Net Cash Flow
from the Gaming Operations after the payment of Base Rent, the Priority
Payment, and the amounts owed under Sections 4.3(a) and (b) in any particular
month is inadequate to make such payment on the interest due under the Working
Capital Note, Tenant must use any amounts that have been deposited in any
reserve account established under the terms of this Lease to make such
payments, and if such reserve accounts are also inadequate to make such
payment, then Tenant’s failure to pay the amount specified above shall not be a
default under this Lease or the Working Capital Note, so long as Tenant pays
the amount that is available from Net Cash Flow from the Gaming Operations
after the payment of Base Rent, the Priority Payment, the amounts owed under
Sections 4.3(a) and (b) and the amount existing in any reserve accounts.  The remaining unpaid balance of the payment
will be carried forward (the “Working Capital Note Carry Forward Balance”)
and shall be due on the due date for the next installment thereunder on which
and to the extent there is sufficient Net Cash Flow to pay both the regularly
scheduled payment and to pay all or any part (to the extent of available Net
Cash Flow) of the Working Capital Note Carry Forward Balance (together with
interest on the Working Capital Note Carry Forward Balance, from the date the
applicable payment would have been due but for its being carried forward, at
the Working Capital Note Rate).

ARTICLE XXII

CONDITION PRECEDENT

It
is a condition precedent to the effectiveness of this Lease and of Landlord’s
and Tenant’s obligations hereunder that the closing of the transaction
contemplated in the Purchase 

 48
 

Agreement (the “Closing”)
occur when provided under the Purchase Agreement (the “Outside Closing Date”).  If the Closing has not occurred by the Outside
Closing Date for any reason (including, without limitation, Landlord’s decision
not to go forward with the transaction contemplated in the Purchase Agreement)
or if the Purchase Agreement is terminated and Landlord has informed Tenant
that no further negotiations to re-instate the Purchase Agreement are
contemplated, then either party may terminate this Lease upon written notice
provided to the other party at any time after the Outside Closing Date or on
the date of Landlord’s notice, as applicable, and prior to the Closing and,
thereupon, neither party will have any further obligations hereunder.

[BALANCE OF PAGE
LEFT BLANK INTENTIONALLY]

 49
 

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

	
  

  	
   

  	
  “Landlord”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HEDWIGS
  LAS VEGAS TOP TIER, LLC,

  
	
   

  	
   

  	
  a Delaware
  limited liability company, or its

  nominee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability company,

  
	
   

  	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  NTH Advisory
  Group, LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  a California
  limited liability company,

  
	
   

  	
   

  	
   

  	
   

  	
  Its Managing
  Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard Bosworth

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  
	
   

  	
   

  	
   

  	
  Title: Managing Member

  
							

 

[SIGNATURES
CONTINUED ON FOLLOWING PAGE]

 50
 

 

	
  

  	
  “Tenant”

  
	
   

  	
   

  
	
   

  	
  155 EAST TROPICANA, LLC,

  
	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Hessling

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Michael Hessling

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  
						

 51
 

EXHIBIT A

SHORTFALL NOTE

	
  US$

  	
  Las Vegas,
  Nevada

  
	
   

  	
  , 2007

  

 

FOR
VALUE RECEIVED, the undersigned promises to pay to the order of HEDWIGS LAS
VEGAS TOP TIER, LLC, a Delaware corporation, at c/o 2587 S. Westgate Avenue,
Los Angeles, California  90064, or at
such other places as the Note holder may designate from time to time, the sum
of                                 
(US $                 ),
in legal tender of the United States, with interest on the unpaid principal
balance advanced hereunder at the rates provided below in accordance with the
terms hereinafter set forth.

Interest
shall be computed on the basis of actual days elapsed in a year of three
hundred sixty (360) days and shall be paid on the unpaid principal balance
hereof at a fixed rate equal to ten and no/100ths percent (10.00%) per annum,
compounded monthly.

This
Note shall be payable in monthly installments of principal and interest in
accordance with the terms of that certain Casino Operations Lease between
Hedwigs Las Vegas Top Tier, LLC, a Delaware corporation, and the undersigned maker
hereof dated May 3, 2007 (the “Lease”), commencing on the
twentieth-fifth (25th) day of the first full calendar month following the date
of this Note and continuing on the same day of each month thereafter to and
until the termination or expiration of the Lease or the occurrence of an Event
of Default under the Lease or a default under this Note, on which date the
entire unpaid principal balance and accrued interest, if any, shall be due and
payable in full. Monthly installments shall be adjusted as described in the
Lease following any payments of principal or any increase in the principal
balance. All payments hereon shall first be applied to accrued interest and the
remainder shall be applied to reduction of principal.

The
indebtedness evidenced by this Note may be prepaid at any time without penalty.
Any prepayments shall be applied first to accrued interest and the balance to
principal, and shall not postpone the due date of any subsequent monthly
installments or reduce the required amount thereof.

This
Note shall be governed and construed in all respects according to the laws of
the State of Nevada.

In
the event the principal of or interest on this Note, or any part thereof, is
not paid when due, at maturity, or upon acceleration, and this Note is placed
in the hands of an attorney for collection, the maker hereof, its successors
and assigns, will repay on demand all costs and expenses of collection so
incurred, including reasonable attorneys’ fees, whether or not suit or legal
proceeding is actually commenced for the collection thereof.

 52

If
(A) default be made in the payment of this Note or any part thereof at
maturity, or in the payment of any installment of principal or interest
thereon, when due, and, except as provided in clause (B) below, and such
default shall continue for a period of five (5) days after notice thereof is
given by the Note holder to the maker hereof, or (B) any default occurs in the
payment of this Note or any part thereof at maturity, or in the payment of any
installment of principal or interest thereon when due, without any notice,
grace or cure period, if within the twelve (12) month period preceding such
default maker has been given two (2) or more notices of default under clause
(A), or (C) an Event of Default shall occur and be continuing under the terms
of that certain Casino Operations Lease between HEDWIGS LAS VEGAS TOP TIER,
LLC, and the undersigned maker hereof dated May 3, 2007 (the “Lease”), or (D)
the Lease is terminated for any reason or expires according to its terms or
otherwise, then the whole sum or sums herein agreed to be paid, shall at the
option of the Note holder, become immediately due and payable, without notice,
and no omission or delay on the part of the Note holder to exercise such option
shall be construed as a waiver of such right. Such option shall be a continuing
right and may be exercised as often as any such default occurs.

Presentment,
notice of dishonor, and protest are hereby waived by the makers, sureties,
guarantors and endorsers hereof.  This
Note shall be the joint and several obligation of all makers, sureties,
guarantors and endorsers, and shall be binding upon them and their successors
and assigns.

This
Note may not be modified orally, but only by an agreement in writing and signed
by the party against whom enforcement of any waiver, change, modification or
discharge is sought.

	
  

  	
  155 EAST TROPICANA, LLC,

  
	
   

  	
  a Nevada limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

EXHIBIT B

WORKING CAPITAL NOTE

	
  US$

  	
  Las Vegas,
  Nevada

  
	
   

  	
  , 2007

  

 

FOR
VALUE RECEIVED, the undersigned promises to pay to the order of HEDWIGS LAS
VEGAS TOP TIER, LLC, a Delaware corporation, at c/o 2587 S. Westgate Avenue,
Los Angeles, California  90064, or at
such other places as the Note holder may designate from time to time, the sum
of
                          
Million Dollars (US $             ),
or so much thereof as shall have been advanced in accordance with Article XXI
of that certain Casino Operations Lease dated May 3, 2007, between HEDWIGS LAS
VEGAS TOP TIER, LLC, and the undersigned Maker of this Note (the “Lease”),
in legal tender of the United States, with interest on the unpaid principal
balance advanced hereunder at the rates provided below in accordance with the
terms hereinafter set forth.

Interest
shall be computed on the basis of actual days elapsed in a year of three
hundred sixty (360) days and shall be paid on the unpaid principal balance
hereof at a fixed rate equal to ten and no/100ths percent (10.00%) per annum,
compounded monthly.

This
Note shall be payable in monthly installments of all accrued interest only on
the first day of each month to and until the termination or expiration of the
Lease or the occurrence of an Event of Default under the Lease or under this
Note, at which time the entire unpaid principal balance and accrued interest,
if any, shall be due and payable in full. All payments hereon shall first be
applied to accrued interest and the remainder shall be applied to reduction of
principal.

The
indebtedness evidenced by this Note may be prepaid at any time without penalty.
Any prepayments shall be applied first to accrued interest and the balance to
principal, and shall not postpone the due date of any subsequent monthly
installments or reduce the required amount thereof.

This
Note shall be governed and construed in all respects according to the laws of
the State of Nevada.

In
the event the principal of or interest on this Note, or any part thereof, is
not paid when due, at maturity, or upon acceleration, and this Note is placed
in the hands of an attorney for collection, the maker hereof, its successors
and assigns, will repay on demand all costs and expenses of collection so
incurred, including reasonable attorneys’ fees, whether or not suit or legal
proceeding is actually commenced for the collection thereof.

If
(A) default be made in the payment of this Note or any part thereof at
maturity, or in the payment of any installment of interest thereon, when due,
and, except as provided in clause (B), below, such default shall continue for a
period of five (5) days after notice thereof is given by the Note holder to the
maker hereof, or (B) any default occurs in the payment of this Note or 

any part thereof
at maturity, or in the payment of any installment of interest thereon when due,
without any notice, grace or cure period, if within the twelve (12)-month
period preceding such default maker has been given two (2) or more notices of
default under clause (A), above, or (C) an Event of Default shall occur and be
continuing under the terms of that certain Casino Operations Lease between
HEDWIGS LAS VEGAS TOP TIER, LLC, and the undersigned maker hereof dated May 3,
2007 (the “Lease”), or (D) the Lease is terminated for any reason or expires
according to its terms or otherwise, then the whole sum or sums herein agreed
to be paid, shall at the option of the Note holder, become immediately due and
payable, without notice, and no omission or delay on the part of the Note
holder to exercise such option shall be construed as a waiver of such right.
Such option shall be a continuing right and may be exercised as often as any
such default occurs.

Presentment,
notice of dishonor, and protest are hereby waived by all makers, sureties,
guarantors and endorsers hereof. This Note shall be the joint and several
obligation of all makers, sureties, guarantors and endorsers, and shall be
binding upon them and their successors and assigns.

This
Note may not be modified orally, but only by an agreement in writing and signed
by the party against whom enforcement of any waiver, change, modification or
discharge is sought.

	
   

  	
  155 EAST TROPICANA, LLC,

  
	
   

  	
  a Nevada limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Its:

  	
   

  

 

EXHIBIT 2

Assignment Agreement

ASSIGNMENT AGREEMENT

THIS ASSIGNMENT AGREEMENT (this “Assignment”) is dated
                ,
2007 by 155 East Tropicana, LLC, a Nevada limited liability company
(hereinafter “155 LLC”), Hedwigs Las Vegas Top Tier, LLC, a Delaware limited liability company (“Hedwigs”),
Hooters Gaming Corporation, a Nevada corporation (“HGC”), and Florida
Hooters LLC a Nevada limited liability company (“FLH LLC”).

RECITALS

a.             Pursuant to that certain License
Agreement dated March 21, 2001, as amended by that Amendment to License
Agreement dated April 21, 2004 (collectively the “License Agreement”), entered
into between HI Limited Partnership, a Florida limited partnership (“HI LP”)
and HGC, HI LP granted to HGC the exclusive license to use the “Hooters Brand”
in connection with the conduct of gaming and the operation of a hotel in
Nevada, including, a “Hooters” restaurant subject to the receipt of written
permission and consent from Las Vegas Wings, Inc., a Nevada corporation (“LVW”),
as the franchisee of the rights to operate 
Hooters restaurants in Nevada;

b.             Pursuant to that certain Consent
Agreement dated on or about July 30, 2004 (as amended, the “LVW Consent”),
between HGC and LVW, as amended, LVW granted its consent to the operation of a
Hooters restaurant under the License Agreement to HGC, on the terms and
conditions set forth in the LVW Consent. 
On February 2, 2006, 155 LLC, FLH LLC, HGC and LVW entered into that
certain Amendment and Acknowledgment to Consent and Assignment Agreements (the “LVW
Consent Amendment”) to clarify and amend certain rights and obligations
under the LVW Consent, based upon the terms and conditions set forth in the LVW
Consent Amendment.  The LVW Consent
together with the LVW Consent Amendment are collectively referred to herein as
the “Consent Agreement.”

c.             Pursuant to that certain Assignment
Agreement dated on or about July 30, 2004, between HGC and FLH LLC (the “Original
FLH Assignment Agreement”), as amended, HGC granted to FLH LLC certain
rights to use the Hooters brand, including without limitation, its rights under
the Consent Agreement, on goods and services that include those typically
offered through and at a hotel casino resort at 115 East Tropicana Avenue, Las
Vegas, Nevada 89109 (“Hotel Casino”). 
HGC and FLH LLC entered into that certain Amended and Restated
Assignment Agreement dated March 9, 2005.

d.             Pursuant to that certain Assignment
Agreement dated on or about July 30, 2004, between FLH LLC and 155 LLC (as
amended, the “Original 155 Assignment Agreement”), as amended, FLH LLC
granted to 155 LLC certain rights to use the Hooters brand including without
limitation, its rights under the Consent Agreement, at the Hotel Casino.  FLH LLC and 155 LLC entered into that certain
Amended and Restated Assignment Agreement dated March 9, 2005.

e.             Pursuant to that certain Asset
Purchase Agreement dated April 30, 2007 between 155 LLC and Hedwigs (the “Asset
Purchase Agreement”), 155 LLC desires to sell to Hedwigs and Hedwigs desires to
purchase from 155 LLC substantially all of 155 LLC’s assets as well as 

certain
liabilities, including among other things, 155 LLC’s rights and liabilities
under the Original 155 Assignment Agreement, as amended, under the terms and
conditions more fully set forth herein.

f.              Effective as of the Closing Date
(as such term is defined in the Asset Purchase Agreement), 155 LLC desires to
assign, and Hedwigs, LLC, desires to accept the assignment, of the rights and
liabilities to use the Hooters brand on goods and services at the Hotel Casino
as set forth in the Original 155 Assignment Agreement.

NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

1.             Recitals.  The above recitals form, constitute and shall
be considered a material part of this Assignment.

2.             The Assignment.  Effective as of the Closing Date (the “Effective
Date”), 155 LLC hereby irrevocably assigns to Hedwigs all of 155 LLC’s
rights and obligations that it has in the Hooters brand and concept pursuant to
the Original 155 Assignment Agreement, including without limitation, its rights
under the Consent Agreement, all of which are for use solely at the Hotel
Casino, and for use worldwide to promote the Hotel Casino.  It is expressly acknowledged that HGC shall
retain any and all rights and obligations that HGC has in the Hooters Brand
pursuant to the License Agreement for any location other than the Hotel Casino.

3.             Second Amendment and
Acknowledgement to Consent and Assignment Agreements.  Simultaneously with the execution of this
Assignment, HGC, LVW, FLH LLC, and 155 LLC, amended, and Hedwigs accepted the
amendment of, certain rights and obligations under the Consent Agreement as set
forth in that certain Second Amendment and Acknowledgment to Consent and
Assignment Agreements (the “Second Amendment”). 
The terms and conditions set forth in the Second Amendment shall control
the rights and obligations of the parties with respect to the Consent Agreement.

4.             The Term.  This Assignment shall be in full force and
effect from the Effective Date until the earlier of:  (a) Hedwigs ceases use of the Hooters brand
and concept at the Hotel Casino (“Closure”); (b) five years from the Effective Date;
or (c) the termination of the License Agreement.  If the Closure of the Hooters branded casino
occurs at anytime within 36 months from the Effective Date, Hedwigs shall
within 20 days of Closure pay a termination fee to HGC equal to the greater of
(y) $2,000,000 or (z) the previous 24 months of royalties (“Termination Fee”).  In the event less than 24 months of royalties
are available for the calculation of the Termination Fee, then subsection (z)
of the Termination Fee shall be determined by multiplying the prior 12 months
of royalties (inclusive of royalties payable prior to the Effective Date) by
2.  Notwithstanding anything contained
herein to the contrary, Hedwigs may cease using the Hooters Hotel brand and
concept (while continuing to utilize the Hooters brand casino) at anytime
without any obligation for the payment of the Termination Fee.    In addition, Hedwigs may cease using the
Hooters brand casino by payment of the Termination Fee contemplated hereunder
while continuing to maintain the Hooters brand restaurant in accordance with
the terms of the Second Amendment.

5.             The Option Term.  As long as this Assignment has not been
terminated as set forth herein, and Hedwigs has complied with the terms and
conditions of this Assignment, Hedwigs shall have, upon 180 days advance
written notice to HGC, the option to extend the Term of this Assignment under
subsection (b) above for two additional five-year terms under the same terms
and conditions set forth set forth in the Assignment.

6.             Obligations.

A.            Hedwigs
hereby accepts all obligations, responsibilities, liabilities and risks that
are those of 155 LLC under the Original 155 Assignment Agreement, including,
without limitation, all obligations, responsibilities, liabilities and risks
regarding any licensing fees, periodic statements, books and records,
indemnification, quality of activities, undertakings, and default and
termination.

B.            155
LLC and FLH LLC shall be released from any and all obligations and liabilities
as they pertain to the Original 155 Assignment Agreement and the Original FLH
Assignment Agreement, as such agreements are amended.

C.            155
LLC, FLH LLC and HGC shall be released from any and all obligations and
liabilities as they pertain to the Consent Agreement, as amended.

D.            For
the limited purpose of the activities surrounding the operation of the Hotel
Casino, Hedwigs shall have all of the obligations and liabilities of the
Licensee and HGC shall have all the rights of the Licensor under the License
Agreement.

7.             License Fees
& Consent Fees.  Hedwigs shall
pay all fees and other amounts due under the Original 155 Assignment Agreement
as if Hedwigs directly assumed all obligations and liabilities thereunder,
including but not limited to, those fees due (i) pursuant to the License
Agreement, as amended, whereby HI LP is entitled to a license royalty fee of
two percent (2%) for any hotel/casino, restaurant operations or any other “Licensed
Activity” (as such term is defined in the License Agreement) at the Hotel
Casino (“HI LP Fees”), (ii) pursuant to the Original 155 Assignment Agreement,
as amended, whereby HGC is entitled to three percent (3%) of all net profits
directly earned from conducting gambling as described in Nevada Revised Statuts
Section 463.0153 pursuant to a Nevada state gaming license (“Gaming Revenue”),
and which utilizes the Hooters brand and concept (“HGC Fees”) and (iii) pursuant
to the underlying Consent Agreement, as amended, whereby LVW is entitled to a
Consent Fee equal to (a) three percent (3%) of Gross Sales (as such term is
defined in the Consent Agreement) of all merchandise bearing the Hooters logo,
Hooters Casino Hotel logo or the Hooters name, at any location on or about the
Hotel Casino; and (b) four percent (4%) of all other Gross Sales at any location
on or about the Hotel Casino (“LVW Fees”) (HI LP Fees, HGC Fees and LVW Fees
are collectively referred to as the “Fees”). 
The Fees shall forever and irrevocably be paid at anytime that Hedwigs
operates a Hooters branded restaurant or sells any Hooters branded food or
merchandise at the Hotel Casino.

A.            HI LP Fees.  The HI LP Fees shall be paid and reported in
accordance with the terms set forth in the License Agreement.

B.            HGC Fees.

i.              Statement of Gaming Revenue.  Within twenty (30) days after the end of each
calendar month included in the Term, Hedwigs shall deliver to HGC a written
statement certified by Hedwigs setting forth (a) the amount of Gaming Revenue
made during such month; and (b) the HGC Fees due for such month.  If Licensee shall fail to deliver any
statement of Gaming Revenue when due and does not cure such failure within ten
(10) days after written notice from HGC, in addition to all of HGC’s other
rights and remedies hereunder, (y) Hedwigs shall pay to HGC, as additional
fees, an amount equal to $100 per day for each day such statement is overdue;
and (z) upon not less than ten (10) days prior notice to Hedwigs, HGC shall
have the right to cause an audit of all books, records and bank accounts of
Hedwigs pertaining to the licensed activities and to prepare the statements
which Hedwigs has failed to deliver.

ii.             Records and Audits. 
Hedwigs shall keep at the premises or at the home or regional office of
Hedwigs, a general ledger, sales receipts, sales records and other supporting
documentation for at least one (1) year after the end of the period to which
they pertain.  All such documentation
shall disclose in detail all information required to permit HGC to verify
Hedwigs Gaming Revenue and conform to, and be in accordance with, generally accepted
accounting principles consistently applied. 
If the documentation Hedwigs is required to maintain is insufficient to
permit HGC to verify Gaming Revenue and exclusions therefrom, HGC shall have
the right to examine or audit Hedwigs’s books and records.  HGC, its agents and employees shall have the
right at any time during normal business hours after not less than ten (10)
days’ prior written notice to Hedwigs, to cause an examination or complete
audit to be made of the documentation necessary to determine the Gamin Revenue
and such other documentation, including, without limitation, bank accounts as
HGC shall reasonably require, provided that such examination or audit is made
within one year after HGC’s receipt of Hedwigs’ Gaming Revenue statement and such
examination or audit is not made more frequently than once per year.  If any audit or examination shall disclose
that any statement of Gaming Revenue understates Gaming Revenue for the
reporting period (i) to any extent, Hedwigs shall pay to HGC upon demand the
resultant deficiency in HGC Fees, together with interest thereon at the rate of
10%; and (ii) to the extent of three percent (3%) or more, Hedwigs shall pay to
HGC as additional HGC Fees, upon demand, the cost of the audit or examination
including, without limitation, all reasonable travel expenses incurred by HGC
in conducting such audit. If any audit is required under this section, or a
controversy arises regarding any fees paid pursuant to this instrument, Hedwigs
shall retain its books and records until such audit is terminated or
controversy is resolved.

iii.            Payment.  The HGC
Fees shall be paid within 30 days of the due date of the Statement of Gaming
Revenue.  If Hedwigs fails to pay the HGC
Fee when due, in addition to all of HGC’s other rights and remedies hereunder,
Hedwigs shall pay to HGC, as additional fees, an amount equal to 5% of the HGC
Fees then due.

C.            LVW Fees.  The LVW Fees shall be paid and reported in
accordance with the terms set forth in the Second Amendment and Acknowledgment
to Consent and Assignment Agreements.

8.             Assignment.  Notwithstanding the restriction on the
assignment of the Original 155 Assignment Agreement, HGC, FLH LLC and 155 LLC
hereby expressly consent to this Assignment. 
This Assignment shall not be assignable by Hedwigs in any respect, and
shall not inure to the benefit of any third party.  Notwithstanding the foregoing, Hedwigs may
assign certain rights hereunder as set forth in the Lease Agreement (as defined
in the Asset Purchase Agreement) between 155 LLC and Hedwigs.

9.             Independent Parties.  The parties are independent contractors.  No partnership or joint venture is intended
to be created by this Assignment, nor any principal-agent or employer-employee
relationship.  Neither party has, and
neither party shall attempt to assert, the authority to make commitments for or
to bind the other party in any manner whatsoever.  This Assignment does not constitute and shall
not be construed as constituting a partnership or joint venture.

11.           Notices.  Notices herein will be delivered and
effective as follows:  every notice
required or contemplated by this Assignment to be given by either party shall
be in writing and may be given by hand delivery, by overnight commercial
courier delivery service or Express Mail, by telecopy, or by certified mail
return receipt requested, addressed to the party for whom it is intended, at:

If to 155 LLC, HGC or FLH
LLC:

107 Hampton Road, Suite 200

Clearwater, Florida 33759

Attn:  Neil Kiefer

If to Hedwigs:

Hedwig Las Vegas Top Tier, LLC

2587 S. Westgate Ave. 

Los Angeles, CA 90064

Attention:  Richard Bosworth

Richard@NTHAdvisory.com and HedwigsLV@yahoo.com(email)

(310) 420-6099 (telephone)

(310) 496-3132 (facsimile)

with a copy (which shall not constitute notice) to:

Stoel Rives LLP

111 Sutter Street, Suite 700

San Francisco, CA  94104

Attention:  Alexander Hamilton, Esq.

aehamilton@stoel.com (email)

(415) 617-8954 (telephone)

(415) 676-3000 (facsimile)

Any party may change its
address for notice by giving notice to the other party of the change. Any
notice under this Assignment shall be deemed delivered on the date of hand
delivery; the next business day after delivery to an overnight commercial
courier service or to the United States Postal Service for Express Mail for
delivery on the next business day; or the date telecopied, if electronic
confirmation of delivery is obtained and retained.

12.           Choice of Law, Venue.   This Assignment shall be governed by, and
constructed in accordance with, the laws of the State of Nevada applicable to
contracts made and to be fully performed in such State without reference to
principles of conflicts of laws.  Each
party hereto submits to the exclusive jurisdiction of the District Courts of
the State of Nevada and the United States District Court for the District of Nevada,
for the enforcement of this Assignment, and agrees to service of process by
overnight mail.

13.           Remaining
Agreement.  Except as amended herein,
all terms, conditions and provisions of the Original 155 Assignment Agreement
shall remain in full force and effect.

14.           Controlling
Document. This Assignment expressly supersedes any and all prior agreements
or communications between the parties hereto, whether oral or written, in
connection with the subject matter hereof. 
In the event of any conflict between any agreement between the parties
hereto and this Assignment, the provisions of this Assignment shall
control.  This Assignment may not be
amended, modified or changed except by a writing executed by both parties
hereto.

15.           Partial Invalidity.  In the event that any portion of this
Assignment shall be unenforceable in whole or in part, said provision shall be
limited or curtailed to the extent necessary to bring it within the requirement
of present or future law, and this Assignment shall be construed as if said
provision had been incorporated herein as so limited, or as if said provision
has not been included herein, as the case may be.

16.           Representation by Counsel - Mutual
Negotiation.  Each party has had the
opportunity to be represented by counsel of its choice in negotiating this
Assignment.  This Assignment shall
therefore be deemed to have been negotiated and prepared at the joint request,
direction, and construction of the parties, at arm’s length, with the advice
and participation of counsel, and will be interpreted in accordance with its
terms without favor to any party.  The
parties hereto and their respective counsel have reviewed this Assignment, and
the normal rule of construction to the effect that any ambiguities in this Assignment
are to be resolved against the drafting party are inapplicable to this
Assignment.

17.           Compliance with Regulatory
Agencies.   Each party specifically
acknowledges that the other party may be subject to the gaming and licensing
requirements of various jurisdictions and may be obliged to take reasonable
efforts to determine the suitability of its business associates.  Each party agrees to cooperate fully with the
other party in providing the other party with any information that the
requesting party deems necessary or appropriate in assuring itself that the
other party possesses the good character, honesty, integrity and reputation
applicable to those engaged in the gaming industry, and each party specifically
warrants and represents to the other that there is nothing in its background,
history, or reputation that would be deemed unsuitable under the standards
applicable to the gaming industry. Information provided 

by either party pursuant to this
Assignment shall be kept confidential by the other party to the extent
reasonably possible and not used for any purpose other than compliance
matters.  If, during the term of this
Assignment, either party is notified by any of the Nevada gaming authorities
that the conduct of business with the other party (or any of its subsidiaries
or affiliates) will jeopardize the first party’s (or any of its subsidiaries’
or affiliates’) license or ability to be licensed, or if either party
reasonably concludes that the other party fails to meet the criteria set forth
above, this Assignment shall terminate upon written notice (such notice shall
provide a detailed explanation as to why the other party fails to meet the
criteria set forth above) by the complaining party unless the other party is
able, within sixty (60) days of such notice, to cure any such condition to the
satisfaction of the applicable Nevada gaming authority.

18.           Force Majeure. Neither party
shall be liable for failure to perform or delay in performing any obligation
under this Assignment if the failure or delay is caused by any circumstances
beyond its reasonable control, including, but not limited to, acts of God, war,
civil commotion or industrial dispute (“Force Majeure”). If such delay or
failure continues for at least thirty (30) days, the party not subject to the
force majeure shall be entitled to terminate this Assignment by notice in
writing to the other.

19.           Counterparts.  This Assignment may be executed in any number
of counterparts, each of which shall be considered an original, but all of
which counterparts shall be deemed to be one and the same document.  Parties may execute this Assignment by
signatures obtained through facsimile, and those signatures may be relied upon
by the other party as valid as if they were signed in the presence of the other
party.

EACH
PERSON SIGNING BELOW REPRESENTS THAT HE OR SHE HAS READ THIS ASSIGNMENT IN ITS
ENTIRETY, UNDERSTANDS ITS TERMS, IS DULY AUTHORIZED TO EXECUTE THIS ASSIGNMENT
ON BEHALF OF THE PARTY INDICATED BELOW BY HIS OR HER NAME, AND AGREES ON BEHALF
OF SUCH PARTY THAT SUCH PARTY WILL BE BOUND BY THOSE TERMS.

IN
WITNESS WHEREOF, each party has caused this Assignment to be executed on its
behalf by a duly authorized representative on the day and year first written
above.

[Signature Pages Follow]

155 East
Tropicana Avenue, LLC, a Nevada limited liability company

	
  By:

  	
   

  	
  EW Common LLC, a Nevada limited liability company

  
	
  Its:

  	
   

  	
  Member

  
	
   

  	
   

  	
  By:

  	
  Eastern & Western Hotel Corporation, a Nevada
  corporation

  
	
   

  	
   

  	
  Its:

  	
  Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Michael Hessling

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  Florida Hooters LLC, a Nevada limited liability
  company

  
	
  Its:

  	
   

  	
  Member

  
	
   

  	
   

  	
  By:

  	
  Hooters Gaming LLC, a Nevada limited liability
  company

  
	
   

  	
   

  	
  Its:

  	
  Member

  
	
   

  	
   

  	
   

  	
  By:

  	
  HG Casino Management, Inc., a Nevada corporation

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Neil Kiefer, President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Lags Ventures, LLC, a Nevada limited liability
  company

  
	
   

  	
   

  	
  Its:

  	
  Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dave Lageschulte, Sole Member

  
								

 

Florida Hooters LLC, a Nevada
limited liability company

	
  By:

  	
   

  	
  Hooters Gaming LLC, a Nevada limited liability
  company

  
	
  Its:

  	
   

  	
  Member

  
	
   

  	
   

  	
  By:

  	
  HG Casino Management, Inc., a Nevada corporation

  
	
   

  	
   

  	
  Its:

  	
  Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Neil Kiefer, President

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  Lags Ventures, LLC, a Nevada limited liability
  company

  
	
  Its:

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dave Lageschulte, Sole Member

  

 

Hooters Gaming Corporation, a
Florida corporation

	
  

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Neil Kiefer, President

  

 

Hedwigs Lags Vegas Top Tier, LLC,
a Delaware limited liability company

	
  By:

  	
   

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:
  Richard Bosworth

  
	
   

  	
   

  	
   

  	
  Title:
  Managing Member

  

 

EXHIBIT 3

Second Amendment and Acknowledgement to Consent and Assignment Agreements

SECOND AMENDMENT
AND ACKNOWLEDGMENT TO CONSENT AND ASSIGNMENT AGREEMENTS

THIS SECOND AMENDMENT
AND ACKOWLEDGMENT TO CONSENT AND ASSIGNMENT AGREEMENTS (the “Second Amendment”)
is entered into on this       , day of        ,
2007 (the “Effective Date”) by 155 East Tropicana, LLC, a Nevada limited
liability company (hereinafter “155 LLC”), Hedwigs Las Vegas Top Tier,
LLC, a Delaware limited liability company (hereinafter “Hedwigs”), Florida
Hooters, LLC a Nevada limited liability company (hereinafter “FLH LLC”),
Hooters Gaming Corporation, a Nevada corporation (hereinafter “HGC”) and
Las Vegas Wings, Inc., a Nevada corporation (hereinafter “LVW”).

WHEREAS, pursuant
to that certain License Agreement dated March 21, 2001, as amended by that
Amendment to License Agreement dated April 21, 2004 (collectively the “License
Agreement”), and entered into between HI Limited Partnership, a Florida
limited partnership (“HI LP”) and HGC, HI LP granted to HGC the
exclusive license to use the “Hooters Brand” in connection with the conduct of
gaming and the operation of a hotel in Nevada, including, a “Hooters”
restaurant subject to the receipt of written permission and consent from LVW as
the franchisee of the rights to operate 
Hooters’ restaurants in Nevada;

WHEREAS pursuant
to that certain Consent Agreement dated July 30, 2004 (the “Consent
Agreement”), between HGC and LVW, LVW granted its written permission and consent  to HGC to use the Hooters restaurant concept
at the Hotel Casino based upon the terms and conditions set forth in the
Consent Agreement;

WHEREAS pursuant
to that certain Assignment Agreement dated July 30, 2004 (the “Assignment
Agreement”) between HGC and FLH LLC, HGC among other things, assigned its
rights and obligations under the Consent Agreement to FLH LLC based upon the
terms and conditions set forth in the Consent Agreement;

WHEREAS pursuant
to that certain Operating Agreement of 155 LLC (the “Operating Agreement”),
as part of FLH LLC’s Initial Capital Contribution to 155 LLC, FLH LLC assigned
its rights under the Assignment Agreement to 155 LLC;

WHEREAS pursuant
to that certain Amendment and Acknowledgment to Consent and Assignment
Agreements dated February 2, 2006 (“Amendment”), the parties clarified
and amended, under certain circumstances, the meaning and application of Gross
Sales, as applied to the payment of the Consent Fee, based upon the terms and
conditions set forth in the Amendment (the Consent Agreement, Assignment
Agreement, Operating Agreement and Amendment shall be collectively referred to
as the “Agreements”); and

WHEREAS, pursuant
to that certain Asset Purchase Agreement dated April 30, 2007 (the “Asset
Purchase Agreement”) between 155 LLC and Hedwigs, 155 LLC desires to sell
to Hedwigs and Hedwigs desires to purchase from 155 LLC substantially all of
155 LLC’s assets and certain liabilities, including among other things, 155 LLC’s
rights and liabilities under the Assignment Agreement under the terms and conditions
more fully set forth herein;

NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

1.             Recitals.  The above recitals form, constitute and shall
be considered a material part of this Amendment.

2.             Defined
Terms.  Except as
otherwise defined herein, all capitalized terms in this Second Amendment shall
have the same meaning that was given to such terms in the Agreements.

3.             Restriction.  The definition of Restriction, as defined in
the Consent Agreement, shall be deleted in its entirety and replaced as
follows:

Restriction.  LVW agrees that during the term of this
Consent, if LVW, or any other operator, operates a Hooters restaurant concept
within the area known as the Las Vegas Strip (as defined below) then this
Consent may be terminated by HGC, or its assignee, without any obligation for
the payment of the Termination Fee (as defined herein).  HGC, or its assignee, shall have no other
rights, remedies or claim to damages.  For purposes of this Consent, “Las Vegas
Strip” shall mean that area of Clark County, Nevada to 

the east of Decatur Boulevard, south of the Las Vegas 93/95 Expressway,
north of Blue Diamond Road and west of Maryland Parkway.

4              The Term.  The definition of The Term, as defined in the
Consent Agreement, shall be deleted in its entirety and replaced as follows:

The Term.  This Consent shall be in full force and
effect from the Effective Date until the earlier of:  (a) HGC, or HGC’s assignee, ceases use of the
Hooters restaurant concept at the Hotel Casino (“Closure”) (Closure shall not
include any renovation or remodel caused by the destruction of the Hooters
restaurant, so long as HGC, or HGC’s assignee, timely completes such work and upon
completion timely re-opens the Hooters restaurant); (b) five years from the
Closing Date, as such term is defined in the Asset Purchase Agreement; or (c)
the termination of the License Agreement. 
If the Closure occurs at anytime within 36 months from the Closing Date,
HGC or HGC’s assignee, shall within 20 days of Closure pay a termination fee to
LVW equal to the greater of (y) $1,000,000 or (z) the previous 24 months of
royalties (“Termination Fee”).  In the
event less than 24 months of royalties are available for the calculation of the
Termination Fee, then subsection (z) of the Termination Fee shall be determined
by multiplying the prior 12 months of royalties by 2.  In any event, the Consent Fees set forth in
this Consent shall forever and irrevocably be paid to LVW (regardless of LVW’s
ongoing status as a franchisee of the rights to operate Hooters’ restaurants in
Nevada) at anytime that HGC, or its assigns, operates a Hooters branded
restaurant or sells any Hooters branded food or merchandise at the Hotel
Casino.

The
Option Term.  As long
as this Consent has not been terminated as set forth herein, and HGC, or HGC’s
assignee, has complied with the terms and conditions of this Consent, HGC, or
HGC’s assignee, shall have, upon 180 days advance written notice to LVW, the
option to extend the Term of this Consent under subsection (b) above for two
additional five-year terms under the same terms and conditions set forth set
forth in the Consent.

5.             Consent
Fees.  The definition of
Consent Fees, as defined in the Amendment, shall be deleted in its entirety and
replaced as follows:

Consent
Fees.  HGC or HGC’s
assignees that use the Hooters restaurant concept for restaurant services at
the Hotel Casino, shall forever and irrevocably pay to LVW a fee equal to:  (i) three percent (3%) of Gross Sales (as such
term is defined on Exhibit “A” attached hereto and incorporated herein
by reference) of all merchandise bearing the Hooters logo, Hooters Casino Hotel
logo or the Hooters name, at any location on or about the Hotel Casino; and
(ii) four percent (4%) of all other Gross Sales (as such term is defined
on Exhibit “A” attached hereto and incorporated herein by reference) at
any location on or about the Hotel Casino (collectively referred to as the “Consent
Fee”).  The Consent Fee shall be paid
within 30 days of the due date of the Statement of Gross Sales (as defined in
Exhibit “A”).  If HGC or HGC’s
assignees fails to pay the Consent Fee when due, in addition to all of LVW’s
other rights and remedies hereunder, HGC or HGC’s assignees shall pay to LVW,
as additional fees, an amount equal to the greater of (i) 3% of the Consent Fee
then due or (ii) $100 per day for each day the payment is overdue.

6.             Hooters’
Image.  The following provision
shall be added to the Consent Agreement:

Control of Hooters’ Image.  The restaurant and services provided by HGC
or HGC’s assignee(s) shall be of a high quality which is objectively comparable
to the current establishment and operations of other Hooters restaurants
operated by the principals of LVW.  In
addition to any other rights provided herein, LVW shall have the right to
protect the Quality of Activities as set forth in Section XI of the License
Agreement:  Any such assignee must comply
with such requirements as if such assignee is the Licensee and LVW is the
Licensor under the License Agreement.  If
the quality of the restaurant(s), bars, merchandise or other hospitality
businesses offered or operated under this Consent falls below such quality,
then HGC or HGC’s assignee(s) shall use its best efforts to restore such
quality.  In the event that HGC or HGC’s
assignee(s) has not taken appropriate steps to restore such quality within thirty
(30) days after receiving written notification from LVW, LVW shall have the
right to terminate the Consent and require that HGC or HGC’s assignee(s) cease
using the the Hooters restaurant concept at the Hotel Casino, which includes
the sale of Hooters merchandise and all other ancillary rights related thereto.

Inspection.  HGC or HGC’s assignee(s) agrees to permit LVW
or its representative to inspect the facilities where the restaurants, bars, merchandise
or other hospitality businesses offered or operated under this Consent are
located, provided  such inspection is
during regular business hours, and does not unreasonably disrupt HGC or HGC’s
assignee(s) business.

7.             Default.  The following provision shall be added to the
Consent Agreement:

Event of Default.  The following events shall be and events of
default by HGC, or HGC’s assignee, under this Consent (“Event of Default”):

(A)          HGC,
or HGC’s assignee, shall fail to pay when due any Consent Fee or any other
obligation under this Consent involving the payment of money and such failure
continues for a period of ten (10) days after notice from LVW;

(B)           HGC,
or HGC’s assignee shall fail to comply with any term, provision or covenant of
this consent, other than as described in subsection (a) above, and shall not
cure such failure within thirty (30) days after written notice thereof to
HGC, or HGC’s assignee, provided that if the failure is not capable of being
cured within said thirty (30) day period and HGC, or HGC’s assignee has
commenced such cure within such period and diligently pursues completion then the
time for such cure shall be extended accordingly; and

(C)           HGC,
or HGC’s assignee, shall file a petition seeking relief, or a petition seeking
an order for relief is filed under any section or chapter of title 11 of the
united states code, as amended, or under any similar law or statute of the
united states or any state thereof; or HGC, or HGC’s assignee shall be adjudged
bankrupt or insolvent in proceedings.

Remedies.  Upon
the occurrence of any Event of Default, LVW shall have the option to pursue any
right or remedy as otherwise set forth in this Consent, and/or any right or
remedy available at law or in equity, and/or any one or more of the following
remedies:

(A)          HGC’s
or HGC’s assignee shall be obligated to reimburse LVW for the damages suffered
by LVW as a result of the occurrence of the Event of Default, and LVW may
pursue a monetary recovery from HGC, or HGC’s assignee; and

(B)           LVW
may terminate this Consent, in which event HGC or HGC’s assignee(s) shall
immediately cease using the Hooters restaurant concept at the Hotel Casino,
which includes the sale of Hooters merchandise and all other ancillary rights
related thereto.

8.             Remaining
Agreement.  Except as
amended herein, all terms, conditions and provisions of the Consent Agreement
and Assignment Agreement shall remain in full force and effect.

9.             Second
Amendment Controls.  In
the event of any conflict between any Agreement and this Second Amendment, the
provisions of this Second Amendment shall control.

10.           Representation by Counsel
- Mutual Negotiation. 
Each party has had the opportunity to be represented by counsel of its
choice in negotiating this Second Amendment. 
This Second Amendment shall therefore be deemed to have been negotiated
and prepared at the joint request, direction, and construction of the parties,
at arm’s length, with the advice and participation of counsel, and will be
interpreted in accordance with its terms without favor to any party.  The parties hereto and their respective
counsel have reviewed this Second Amendment, and the normal rule of
construction to the effect that any ambiguities in this Second Amendment are to
be resolved against the drafting party are inapplicable to this Second Amendment.

11.           Counterparts.  This Second Amendment may be executed in any
number of counterparts, each of which shall be considered an original, but all
of which counterparts shall be deemed to be one and the same document.  The parties may execute this agreement by
signatures obtained through facsimile, and those signatures may be relied upon
by the other party as valid as if they were signed in the presence of the other
party.

EACH PERSON SIGNING
BELOW REPRESENTS THAT HE OR SHE HAS READ THIS SECOND AMENDMENT IN ITS ENTIRETY,
UNDERSTANDS ITS TERMS, IS DULY AUTHORIZED TO EXECUTE THIS SECOND AMENDMENT ON
BEHALF OF THE PARTY INDICATED BELOW BY HIS OR HER NAME, AND AGREES ON BEHALF OF
SUCH PARTY THAT SUCH PARTY WILL BE BOUND BY THOSE TERMS.

IN WITNESS WHEREOF, each party has caused this Second
Amendment to be executed on its behalf by a duly authorized representative on
the day and year first written above.

	
  155 East Tropicana, LLC

  	
   

  	
  Florida
  Hooters, LLC

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Name/Title:

  	
   

  	
   

  	
  Name/Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
											

 

	
  Hooters Gaming Corporation

  	
   

  	
  Las
  Vegas Wings, Inc.

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Name/Title:

  	
   

  	
   

  	
  Name/Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
											

 

Acknowledged
and Agreed to:

Hedwigs Las Vegas Top Tier, LLC

	
  By:

  	
   

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  	
   

  
	
   

  	
   

  	
   

  	
  Title:  Managing Member

  	
   

  
								

 

EXHIBIT 4

Assignment and Acknowledgement to Mark License Agreement

ASSIGNMENT
AND ACKNOWLEDGMENT TO MARK LICENSE AGREEMENT

THIS ASSIGNMENT AMENDMENT
AND ACKOWLEDGEMENT TO MARK LICENSE AGREEMENT (“Amendment”) is entered
into on this              
day of                       ,
2007 (the “Effective Date”) by 155 East Tropicana, LLC, a Nevada limited
liability company (hereinafter “155 LLC”), Lags Ventures, Inc., a
Florida limited liability corporation (hereinafter “Lags”), and Hedwigs
Las Vegas Top Tier, LLC, a Delaware limited liability corporation (hereinafter “Hedwigs”).

WHEREAS pursuant
to that certain “Amended and Restated Mark License Agreement” dated
March 9, 2005 between Florida Hooters, LLC a Nevada limited liability company (FLH
LLC) and Lags, Lags granted its written permission and consent to FLH LLC to
use the marks “DAN MARINO’S FINE FOOD & SPIRITS” and “MARTINI BAR”
(operated in conjunction with Dan Marino’s Fine Food & Spirits) along with
certain logos for restaurant services, restaurant merchandise and gift
merchandise related thereto (the “Marks”) based upon the terms and
conditions set forth in the Mark License Agreement;

WHEREAS, pursuant to that certain Assignment Agreement dated on or
about July 30, 2004, between FLH LLC and 155 LLC (“Assignment Agreement”),
as amended, FLH LLC granted to 155 LLC certain rights to use the Marks at the
Hotel Casino.  FLH LLC and 155 LLC
entered into an Amended and Restated Assignment Agreement dated March 9, 2005.

WHEREAS pursuant
to that certain Amendment and Acknowledgment to Mark License Agreement dated
February 2, 2006 (“Amendment”) the parties clarified and amended, under
certain circumstances the Gross Sales, as applied to the payment of the Consent
Fee.

WHEREAS, pursuant
to that certain Asset Purchase Agreement dated April 30, 2007 (“Asset Purchase
Agreement”) between 155 LLC and Hedwigs, 155 LLC desires to sell to Hedwigs and
Hedwigs desires to purchase from 155 LLC substantially all of 155 LLC’s assets
and certain liabilities, including among other things, 155 LLC’s rights and
liabilities under the Mark License Agreement under the terms and conditions
more fully set forth herein;

NOW THEREFORE, in
consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

1.             Recitals.  The above recitals form, constitute and shall
be considered a material part of this Amendment.

2.             Defined
Terms.  Except as
otherwise defined herein, all capitalized terms in this Assignment shall have
the same meaning that was given to such terms in the Mark License Agreement, the
Amendment or Asset Purchase Agreement, as the case may be.

3.             The
Assignment.  Subject to
the Closing, 155 LLC hereby irrevocably assigns to Hedwigs all of 155 LLC’s
rights and obligations that it has in the Marks pursuant to the Mark License
Agreement and Assignment Agreement, all of which are for use solely at the
Hotel Casino, and for use worldwide to promote the Marks and the Casino.  Licensor hereby consents to this Assignment.

4              The Term.  The following shall be added to the definition
of the Term, as set forth in paragraph 3 of the Mark License Agreement:

Notwithstanding
anything contained herein to the contrary, upon 10 days written notice to
Licensor, Licensee may terminate this Agreement at anytime.

5.             Mark
License Fees.  Hedwigs
acknowledges and agres that the Mark License Fees shall not be subject to
subordination or deferral.

6.             Default.  The following provision shall be added to the
Mark License Agreement:

Event of Default.  The following events shall be and events of
default by Hedwigs (“Event of Default”):

(A)          Hedwigs
shall fail to pay when due any Consent Fee or any other obligation under this
Consent involving the payment of money and such failure continues for a period
of five (5) days after notice from Licensor;

(B)           Hedwigs
shall fail to comply with any term, provision or covenant of this consent,
other than as described in subsection (a) above, and shall not cure such failure
within fifteen (15) days after written notice thereof to Hedwigs provided that
if the failure is not capable of being cured within said fifteen (15) day
period and Hedwigs has commenced such cure within such period and diligently
pursues completion then the time for such cure shall be extended accordingly;
and

(C)           Hedwigs
shall file a petition seeking relief, or a petition seeking an order for relief
is filed under any section or chapter of title 11 of the united states code, as
amended, or under any similar law or statute of the united states or any state
thereof; or Hedwigs shall be adjudged bankrupt or insolvent in proceedings.

Remedies.  Upon
the occurrence of any Event of Default, Licensor shall have the option to
pursue any right or remedy as otherwise set forth in this Agreement, and/or any
right or remedy available at law or in equity, and/or any one or more of the
following remedies:

(A)          Hedwigs shall be obligated to reimburse Licensor for the
damages suffered by Licensor as a result of the occurrence of the Event of Default,
and Licensor may pursue a monetary recovery from Hedwigs; and

(B)           Licensor may terminate this Consent,
in which event Hedwigs shall immediately cease using the Marks at the Hotel
Casino, which includes the sale of merchandise and all other ancillary rights
related thereto.

7.             Remaining Agreement.  Except as amended herein, all terms,
conditions and provisions of the Consent Agreement and Assignment Agreement
shall remain in full force and effect.

8.             Assignment
Controls.  In the event of
any conflict between any Agreement and this Assignment, the provisions of this
Assignment shall control.

9.             Representation
by Counsel - Mutual Negotiation. 
Each party has had the opportunity to be represented by counsel of its
choice in negotiating this Second Amendment. 
This Second Amendment shall therefore be deemed to have been negotiated
and prepared at the joint request, direction, and construction of the parties,
at arm’s length, with the advice and participation of counsel, and will be interpreted
in accordance with its terms without favor to any party.  The parties hereto and their respective
counsel have reviewed this Second Amendment, and the normal rule of
construction to the effect that any ambiguities in this Second Amendment are to
be resolved against the drafting party are inapplicable to this Second
Amendment.

10.           Counterparts.  This Second Amendment may be executed in any
number of counterparts, each of which shall be considered an original, but all
of which counterparts shall be deemed to be one and the same document.  The parties may execute this agreement by
signatures obtained through facsimile, and those signatures may be relied upon
by the other party as valid as if they were signed in the presence of the other
party.

EACH
PERSON SIGNING BELOW REPRESENTS THAT HE OR SHE HAS READ THIS SECOND AMENDMENT
IN ITS ENTIRETY, UNDERSTANDS ITS TERMS, IS DULY AUTHORIZED TO EXECUTE THIS
SECOND AMENDMENT ON BEHALF OF THE PARTY INDICATED BELOW BY HIS OR HER NAME, AND
AGREES ON BEHALF OF SUCH PARTY THAT SUCH PARTY WILL BE BOUND BY THOSE TERMS.

IN
WITNESS WHEREOF, each party has caused this Second Amendment to be executed on
its behalf by a duly authorized representative on the day and year first
written above.

[Signature Page
Follows]

 

	
  155 East Tropicana, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name/Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
					

 

Lags Ventures, Inc.

	
  

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name/Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
					

 

HEDWIGS LAS VEGAS TOP TIER, LLC,

a
Delaware limited liability company

	
  By:

  	
   

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  
	
   

  	
   

  	
   

  	
  Title: Managing Member

  

 

EXHIBIT 5

Escrow Agreement

ESCROW AGREEMENT

 

ESCROW
AGREEMENT  dated as of                  ,
200     (this “Agreement”), by and among 155 East
Tropicana, LLC, a Nevada limited liability company,(“Seller”), Hedwigs
Las Vegas Top Tier, LLC, a Delaware limited liability company (“Purchaser”),  and,  First American Title Insurance
Company ,
a national banking association (“Escrow Agent”).

Purchaser
and Seller have entered into an Asset Purchase Agreement (the “Purchase
Agreement”), pursuant to which Purchaser will acquire from Seller certain
of Seller’s assets.

The
parties contemplate the establishment of an escrow arrangement to provide for
the holding and later distribution of the Deposit, as provided for herein.

Capitalized
terms used in this Agreement and not otherwise defined herein shall have the
meanings given to them in the Purchase Agreement.

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in
this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

1.             ESTABLISHMENT
AND ADMINISTRATION OF ESCROW.

1.1           Deposit.    If and when required by Section 4.21 of the
Purchase Agreement, Purchaser shall deliver to the Escrow Agent $2,000,000 in
cash (the “Initial Deposit”).  From time
to time thereafter, Purchaser may make additional cash deliveries to the Escrow
Agent as provided in the Purchase Agreement (“Supplemental Deposits”).  The Initial Deposit and any and all
Supplemental Deposits are herein referred to, collectively, as the “Deposit”).  The Deposit, as constituted from time to
time, shall be held in escrow in accordance with this Agreement. The Escrow
Agent shall place the Deposit in a segregated account (the “Escrow Account”).
The Deposit shall be held as a trust fund and shall not be subject to any lien,
attachment, trustee process or any other judicial process of any creditor of
any party hereto. The Escrow Agent agrees to accept delivery of the Deposit and
to hold the Deposit in the Escrow Account, upon the terms and conditions of
this Agreement.

1.2           Appointment.       Purchaser and Seller hereby
appoint the Escrow Agent to serve as agent for the purpose of holding and
distributing the Deposit upon the terms and conditions set forth in this
Agreement, and the Escrow Agent accepts such appointment subject to the terms
and conditions of this Agreement.

1.3           Permitted
Investments.   So long as the Deposit
is held by the Escrow Agent, such funds shall be invested by the Escrow Agent
in the permitted investments listed on Exhibit A in accordance with
instructions delivered in writing to the Escrow Agent by Purchaser. The Escrow
Agent shall send periodic statements in reasonable detail to Purchaser and
Seller of the value, by investment, of the Deposit, and of all transactions
affecting the amounts in the Escrow Account.

1.4           Interest
and Dividends.   The Deposit shall be
increased from time to time by any and all interest and dividends accrued and
paid thereon from the time or times of deposit in the Escrow Account (after
payment of expenses incurred in connection with the investment, 

reinvestment or sale thereof) pursuant to this Section 1, all of which
shall be held in the Escrow Account and be considered part of the Deposit.

2.             ADMINISTRATION OF THE
DEPOSIT.

2.1           Closing.   In the event of Closing and at such time as
Purchaser and Seller deliver to Escrow Agent joint written instructions to that
effect, Escrow Agent shall promptly deliver to Seller the Deposit plus the
interest and investment income deposited in the Escrow Account in accordance
with Section 1 attributable to the Deposit.

2.2           Termination.  Except as provided in Section 2.4, in the
event the Purchase Agreement is terminated and Purchaser and Seller deliver to
Escrow Agent joint written instructions to that effect, Escrow Agent shall
promptly (a) deliver to Seller that portion of the Deposit not included in
clause (b) of this Section 2.3 and (b) deliver to Purchaser all interest and
investment income deposited in the Escrow Account in accordance with
Section 1 attributable to the Deposit.

2.3           Termination Upon
Major Breach.  Notwithstanding
anything to the contrary in Section 2.2, if, at the time of termination of the
Purchase Agreement, there exists a Major Breach and Purchaser and Seller
deliver to Escrow Agent joint written instructions to that effect, Escrow Agent
shall promptly deliver the Deposit to Purchaser.   For the purpose of this Section 2.3, a Major
Breach is a breach of any representation, warranty, covenant or other agreement
in the Asset Purchase Agreement if, but only if, as a result of such breach,
either (i) Purchaser would not upon Closing, obtain title to substantially all
of the Purchased Assets or (ii) the value of the Purchased Assets less the cost
of all Assumed Liabilities would be reduced by $5 million or more.

2.4           Disagreement as to
Existence of Major Breach.  If
Purchaser and Seller do not agree on whether a Major Breach exists, the matter
shall be referred to an independent arbitrator selected by the parties (or if
the parties cannot agree on an independent arbitrator, by a Las Vegas Court to
which either party may apply for that purpose) and the decision of such
arbitrator shall be final and binding on Purchaser and Seller and Purchaser and
Seller agree that the Escrow Agent may conclusively rely on the determination
of the arbitrator with respect to the existence or lack thereof of a Major
Breach.  The cost of any such arbitrator
shall be borne by the party whose position is not upheld by the arbitrator.

2.5           Action of Escrow
Agent in the Event of an Objection or Dispute. In the event of conflicting
instructions from Seller and Purchaser under Section 2.2 or 2.3 of this
Agreement, or of an objection by one party to the instructions given to the
Escrow Agent by the other party, Escrow Agent shall promptly notify Purchaser
and Seller of such conflicting instructions and provide complete copies thereof
to Purchaser and Seller.  The Escrow
Agent shall make no distribution of any of the Deposit unless and until Escrow
Agent receives a letter executed jointly by Purchaser and Seller setting forth
instructions as to such disposition or distribution, in which case Escrow Agent
shall then promptly act in accordance with such letter of instructions.

3.             TERMINATION.   This
Agreement shall terminate on the final distribution and release of the last of
the Deposit held by the Escrow Agent in accordance with this Agreement.

 2
 

4.             INDEMNITY;
PERFORMANCE; LIMITATION OF LIABILITY OF ESCROW AGENT.

4.1           Exculpation of
Escrow Agent.  Purchaser
and Seller acknowledge and agree that the Escrow Agent (i) shall not be
responsible for performance of any obligations under any of the other
agreements referred to hereby, including the Purchase Agreement, but shall only
be obligated for the performance of such duties as are specifically set forth
in this Agreement; (ii) shall not be obligated to take any legal or other
action hereunder which might in its reasonable judgment involve any expense or
liability on its part unless it shall have been furnished with acceptable
indemnification; (iii) shall be entitled to rely on any document reasonably
believed by it to be genuine and correct and to have been signed or sent by the
proper person or persons or on other evidence or information deemed by it to be
reliable and shall have no responsibility for determining the accuracy thereof;
(iv) shall have no responsibility whatsoever with respect to the undertakings
of any other party hereto or to any notice or undertakings of anyone not a
party hereto; and (v) may consult counsel reasonably satisfactory to it,
including in-house counsel, and the opinion of such counsel shall be full and
complete authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in accordance with the opinion of
such counsel.

4.2           Indemnification
of Escrow Agent.  Purchaser and Seller jointly and
severally agree to indemnify and hold harmless the Escrow Agent and each of its
directors, officers, employees and agents appointed and acting in accordance
with this Agreement (collectively, the “Escrow Indemnified Parties”) against
all claims, losses, damages, costs, penalties, fines and reasonable expenses
(including reasonable expenses of the Escrow Agent’s legal counsel) which may
be paid, incurred or suffered by any Escrow Indemnified Party by reason of or
as a result or in connection with the Escrow Agent’s execution of, and
performance of, its duties set forth in this Agreement, or any written
instructions delivered to the Escrow Agent by the parties pursuant hereto,
except to the extent that any such claim, loss, damage, cost, penalty, fine or
expense results from fraud, gross negligence, willful misconduct or bad faith
on the part of such Escrow Indemnified Party. In no event shall the Escrow
Agent be liable for indirect, punitive, special or consequential damages. In no
case shall Purchaser or Seller be liable under this indemnity for any claim
against any of the Escrow Indemnified Parties unless Purchaser and Seller shall
be notified by the Escrow Agent of the written assertion of a claim or of any
action commenced against the Escrow Indemnified Parties, promptly after a
Responsible Officer (as defined below) of the Escrow Agent shall have received
any such written assertion of a claim or shall have been served with a summons
or other first legal process giving information as to the nature and basis of
the claim. As used herein, “Responsible Officer” shall mean an officer of the
Escrow Agent assigned to and working in its [Corporate Trust Department].
Purchaser and Seller shall be entitled to participate at their own expense in
the defense and, if Purchaser and Seller so elect at any time after receipt of
such notice, Purchaser and Seller may assume the defense of any suit brought to
enforce any such claim. The Escrow Agent shall have the right but shall be
under no obligation to employ separate counsel in any such suit and participate
in the defense thereof. As between Purchaser and Seller, to the extent that
there is any liability for obligations to the Escrow Agent under this
paragraph, Purchaser and Seller may apportion such liabilities as agreed by
Purchaser and Seller.

 3
 

4.3           Survival.  The exculpation and
indemnification set forth in Sections 4.1 and 4.2 shall survive the termination
of (and any resignation or removal of the Escrow Agent under) this Agreement.

4.4           Sub-Agents.  The Escrow Agent
shall have not more or less responsibility or liability on account of any
action or omission of any book-entry depository or subescrow agent employed by
the Escrow Agent than any such book-entry depository or subescrow agent has to
the Escrow Agent, except to the extent that such action or omission of any
book-entry depository or subescrow agent was caused by the Escrow Agent’s own
fraud, gross negligence, bad faith or willful misconduct.

4.5           No
Action Required.  It is further agreed that if any
controversy arises between the parties hereto or with any third person with
respect to the Deposit or any part of the subject matter of this Agreement, its
terms or conditions, the Escrow Agent shall not be required to determine the
same or take any action in respect of such controversy, but may await the
settlement of any such controversy by final appropriate legal proceedings or
otherwise as it may require, notwithstanding anything in this Agreement to the
contrary, and in such event the Escrow Agent shall not be liable for interest
or damages. The Escrow Agent shall not be obliged to institute or defend any
legal proceedings which relate to the Deposit.

4.6           No
Third Party Liability.  The Escrow Agent shall have no
liability for any action or omissions of any other party, or any failure or
delay by any other party in performing or observing its duties hereunder
(including without limitation any failure or delay by Purchaser or Seller in
any instance which prevents or impairs the performance by the Escrow Agent in
accordance with the terms hereof).

5.             RESIGNATION;
REMOVAL; SUCCESSOR.

5.1           Resignation.  The Escrow Agent may
resign as escrow agent under this Agreement and thereby become discharged from
the obligations hereby created, by notice in writing given to Purchaser and
Seller not less than 30 days before such resignation is to take effect.

5.2           Removal.  The Escrow Agent may
be removed at any time by an instrument or concurrent instruments in writing
delivered to the Escrow Agent and signed by both Purchaser and Seller.

5.3           Successor.
 If
at any time after the date of this Agreement the Escrow Agent shall give notice
of its resignation pursuant to Section 5.1 hereof, shall be removed
pursuant to Section 5.2 hereof, or shall be dissolved or otherwise become
incapable of acting, or the position of the Escrow Agent shall become vacant
for any other reason, Purchaser and Seller shall promptly appoint a mutually
acceptable successor Escrow Agent. Upon such appointment such successor shall
execute, acknowledge and deliver to its predecessor, and also to Purchaser and
Seller an instrument in writing accepting such appointment hereunder and
agreeing to be bound by the terms and provisions of this Agreement. Thereupon
such successor Escrow Agent, without any further act, shall become fully vested
with all the rights, immunities, and powers, and shall be subject to all of the
duties and obligations of its predecessor and such predecessor 

 4
 

Escrow Agent shall promptly deliver the Deposit to such successor
pursuant to written instructions from Purchaser or Seller.

5.4           Deposit
Into Court.  In
the event that a successor Escrow Agent has not been appointed within 30 days
of the date of any such resignation, removal, dissolution, incapacity or
vacancy, the Escrow Agent or its legal representative may deposit the Deposit
with the clerk of a court of competent jurisdiction and shall interplead all of
the parties hereto. Upon so depositing such property and filing its pleading,
this Agreement shall terminate as to the Escrow Agent.

5.5           Survival.  In the event the Escrow Agent is merged or
consolidated with any other entity, and as a result thereof the Escrow Agent
ceases to exist as a separate entity, or the Escrow Agent sells substantially
all of its corporate trust business (including the escrows contemplated by this
Agreement) to another entity, then such surviving entity, without any further
act shall become fully vested with all the rights, immunities, and powers, and
shall be subject to all of the duties and obligations of the Escrow Agent.

6.             FEES
AND EXPENSES.  Purchaser shall pay to the
Escrow Agent reasonable compensation for its normal services hereunder in
accordance with the fee schedule attached hereto as Exhibit B and shall
reimburse the Escrow Agent hereunder for all reasonable expenses, disbursements
and advances incurred or made by the Escrow Agent in performance of its duties
hereunder (including reasonable fees, expenses and disbursements of its
counsel), it being understood that Seller shall promptly reimburse one-half of
such fees and expenses by payment to Purchaser.

7.             NOTICES.  All notices, consents, waivers and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (i) delivered by hand (with written confirmation of
receipt), (ii) sent by facsimile (with written confirmation of receipt),
provided that a copy is mailed by registered mail, return receipt requested, or
(iii) when received by the addressee, if sent by a nationally recognized
overnight delivery service (receipt requested), in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses and
facsimile numbers as a party may designate by notice to the other parties):

	
  If to Seller:

  155 East Tropicana, LLC.

  115 East Tropicana Avenue

  Las Vegas, Nevada 89109

  Attn:  Michael
  Hessling

  hessling@hooterslv.com (email)

  (702) 739-9000 (telephone)

  (702) 739-7783(facsimile)

  	
  Copy to:

  Kummer Kaempfer Bonner Renshaw
  & Ferrario

  3800 Howard Hughes Parkway, 7th
  Floor

  Las Vegas, NV 89169

  Attn:  Sherwood Cook

  scook@kkbrf.com (email)

  (702) 792-7000 (telephone)

  (702) 769-9181 (facsimile)

  

 

 5
 

 

	
  If to Purchaser:

  	
  Copy to:

  
	
   

  Hedwig
  Las Vegas Top Tier, LLC

  2587
  S. Westgate Ave. 

  Los Angeles, CA 90064

  Attention:  Richard Bosworth

  Richard@NTHAdvisory.com and HedwigsLV@yahoo.com(email)

  (310) 420-6099 (telephone)

  (310) 496-3132 (facsimile)

  	
   

  Stoel Rives LLP

  111 Sutter Street, Suite 700

  San Francisco, CA  94104

  Attention:  Alexander Hamilton, Esq.

  aehamilton@stoel.com (email)

  (415) 617-8954 (telephone)

  (415) 676-3000 (facsimile)

   
  

  

 

If to Escrow Agent:

First American Title Insurance Company

135 Main Street, 12th Floor

San Francisco, CA 94105

Attn.: Ms. Heather Kucala

8.             COUNTERPARTS;
FACSIMILE.  This Agreement may be
executed in one or more counterparts, each of which will be deemed to be an
original and all of which, when taken together, will be deemed to constitute
one and the same agreement. This Agreement may be executed by facsimile, with
such facsimile copy to serve as conclusive evidence of the consent and
ratification of the matters contained herein by the parties hereto.

9.             SECTION
HEADINGS; CONSTRUCTION.  The headings of
sections in this Agreement are provided for convenience only and will not
affect its construction or interpretation. The words “include,” “includes” and “including”
when used herein shall be deemed in each case to be followed by the words “without
limitation.”

10.           WAIVER.  The rights and remedies of the parties to
this Agreement are cumulative and not alternative. Neither the failure nor any
delay by any party in exercising any right, power or privilege under the
documents referred to in this Agreement will operate as a waiver of such right,
power or privilege, and no single or partial exercise of any such right, power
or privilege will preclude any other or further exercise of such right, power
or privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable
law, (i) no claim or right arising out of this Agreement or the documents
referred to in this Agreement can be discharged by one party, in whole or in
part, by a waiver or renunciation of the claim or right unless in writing
signed by the other party, (ii) no waiver that may be given by a party will be
applicable except in the specific instance for which it is given and (iii) no
notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or
demand to take further action without notice or demand as provided in this
Agreement or the documents referred to in this Agreement.

11.           EXCLUSIVE AGREEMENT;
MODIFICATION; ASSIGNMENT. This Agreement and the Purchase Agreement (with
respect to all parties except the Escrow Agent, which is not a party to the
Purchase Agreement) supersede all prior agreements between the parties with
respect to their subject matter and constitute (along with the documents
referred to in this Agreement and the Purchase Agreement) a complete and
exclusive statement of the terms of the respective 

 6
 

agreements between the
parties to such documents with respect to the subject matter hereof.  The Escrow Agent’s duties are set forth in
this Agreement only, and the Escrow Agent has no duty to inquire into the terms
of the Purchase Agreement. This Agreement may not be amended except by a
written agreement executed by or on behalf of Purchaser, Seller and the Escrow
Agent. This Agreement may not be assigned by Seller without Purchaser’s prior
written consent, nor by Purchaser without Seller’s prior written consent. This
Agreement shall inure to the benefit of the parties and their respective
successors and permitted assigns.

12.           GOVERNING
LAW.  This Agreement shall be governed by
and construed in accordance with, the laws of the State of Nevada, without
regard to any conflicts of law principles thereof.

13.           MISCELLANEOUS.

13.1         Authority
to Return Funds.  It is understood
and agreed that should any dispute arise with respect to the delivery,
ownership, right of possession, or disposition of any of the Deposit, or should
any claim be made upon the Deposit by a third party, the Escrow Agent, upon
receipt of written notice of such dispute or claim by the parties hereto or by
a third party, is authorized and directed to retain in its possession without
liability all or any of the Deposit until such dispute shall have been settled
either by the mutual written agreement of the parties involved or by a final
order, decree or judgment of a Court in the United States of America, the time
for perfection of an appeal of such order, decree or judgment having expired.
The Escrow Agent may, but shall be under no duty whatsoever to, institute or
defend any legal proceedings which relate to the Deposit.

13.2         Jurisdiction.  The parties hereto hereby consent and submit
to the exclusive jurisdiction of the appropriate court in Las Vegas, Nevada, in
connection with any actions or proceedings brought against one another arising
out of or relating to this Agreement. In any such action or proceeding, the
parties hereto hereby absolutely and irrevocably waive personal service of any
summons, complaint, declaration or other process and hereby absolutely and
irrevocably agree that the service thereof may be made by certified or
registered first-class mail directed to such parties at their respective
addresses in accordance with Section 7 hereof.

13.3         Force
Majeure.  The Escrow Agent shall not
be responsible for delays or failures in performance resulting from acts beyond
its control. Such acts shall include but not be limited to acts of God,
strikes, lockouts, riots, acts of war, epidemics, governmental regulations
superimposed after the fact, fire communication line failures, computer
viruses, power failures, earthquakes or other disasters.

13.4         Copies
As Evidence.  This Agreement and all
documents relating thereto, including without limitation (i) consents, waivers
and modifications which may hereafter be executed, and (ii) certificates and
other information previously or hereafter furnished, may be reproduced by any
photographic, photostatic, microfilm, optical disk, micro-card, miniature
photographic or other similar process. The parties agree that any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding relating to this Agreement, whether or
not the original is in existence and whether or not such reproduction was made
by a party in the regular course of business, and that any enlargement,
facsimile or further reproduction of such reproduction shall likewise be
admissible in evidence.

 7
 

14.           TAXES.  
The parties agree to treat the Deposit and any dividends, interest and
gains earned or realized on the Deposit as owned by Purchaser and not by
Seller, in all cases to the extent not paid to Seller pursuant to this
Agreement, and to file all tax returns on a basis consistent with such
treatment. Purchaser, on its own behalf, and Seller, on their own behalf, shall
provide the Escrow Agent with the certified tax identification number of
Purchaser, on the one hand, and Seller, on the other hand, by furnishing an
appropriate Form W-9 (or Form W-8, in the case of non-U.S. persons) and other
forms and documents that the Escrow Agent may reasonably request (collectively,
“Tax Reporting Documentation”) and
Escrow Agent shall file the appropriate 1099 or other required forms pursuant
to Federal and applicable state laws. A statement of citizenship will be
provided by each of Purchaser and Seller if requested by Escrow Agent.
The parties hereto understand that, if the Tax Reporting Documentation is not
certified to the Escrow Agent as described above, the Escrow Agent may be
required to withhold a portion of the Deposit or any interest earned on the
investment of monies or other property held by the Escrow Agent pursuant to
this Agreement. The Escrow Agent shall timely file information statements with
the Internal Revenue Service and provide payee statements to the parties
documenting imputed interest or any payment made hereunder.

IN
WITNESS WHEREOF, the parties have executed and delivered this Agreement
as of the date first written above.

[Signature Page
Follows]

 8
 

 

	
  SELLER:

  	
   

  
	
   

  	
   

  
	
  155 East Tropicana, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  PURCHASER:

  	
   

  
	
   

  	
   

  
	
  HEDWIGS
  LAS VEGAS TOP TIER, LLC,

  a Delaware limited liability company

  	
   

  
	
   

  	
   

  
	
  By: Hedwigs Las Vegas GP, LLC, 

  a Delaware limited liability company

  Its Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  NTH Advisory Group, LLC

  	
   

  
	
   

  	
  a California limited liability
  company

  Its managing member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:  Richard Bosworth

  	
   

  
	
   

  	
   

  	
  Title:  Managing Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ESCROW AGENT:

  	
   

  
	
   

  	
   

  
	
  First American Title Insurance
  Company

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
													

 

 9
 

Exhibit A

Permitted Investments

The
Escrow Agent is hereby directed to invest funds in the First American Trust
Account to be opened with Bank of America in San Francisco, California to earn
interest at 4.1%, compounded daily

 10
 

Exhibit B

Fees and Expenses of Escrow Agent

$1,200 – Initial Set Up Fee

$200
– Disbursement Fee (to be paid for each and every disbursement)

 11

EXHIBIT
7

Memorandum of Asset Purchase Agreement

 

APN(s)   162-28-101-002 and
162-28-102-001

 

 

 

RECORDING REQUESTED BY AND

WHEN RECORDED RETURN TO:

Alexander E. Hamilton, Esq.

Stoel Rives LLP

111 Sutter Street, Suite 700

San Francisco, CA 94104

MEMORANDUM OF ASSET PURCHASE AGREEMENT

THIS MEMORANDUM OF ASSET PURCHASE AGREEMENT is made and entered into as
of the 30th day of April, 2007, by and between by and between Hedwigs Las Vegas Top
Tier, LLC, a Delaware limited liability company (“Purchaser”) and 155 East
Tropicana, LLC, a Nevada limited liability company, (“Seller”).

RECITALS

Seller owns that certain real property located in Clark County, State
of Nevada, which is more particularly described in Exhibit A attached
hereto arid incorporated herein (the “Property”).

NOW THEREFORE, the parties agree as follows:

AGREEMENT

Seller agrees to sell the Property to Purchaser and Purchaser agrees to
purchase the same from Seller together with certain other assets and
liabilities upon all the terms and conditions set forth in that certain Asset
Purchase Agreement dated as of May 1, 2007 by and between Seller and
Purchaser, as amended by that certain First Amendment to Asset Purchase
Agreement dated as of May 7, 2007 entered into by and between Seller and
Purchaser.

[End of page]

IN WITNESS WHEREOF, Seller and Purchaser have executed this Memorandum
of Asset Purchase Agreement as of the day and year first written above.

	
  

  	
  HEDWIGS LAS VEGAS TOP TIER, LLC,

  
	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  155 EAST TROPICANA, LLC

  
	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Michael Hessling

  
	
   

  	
   

  	
  Title: President

  

 

 

	
  STATE OF NEVADA

  COUNTY OF CLARK

  	
  }ss.

  

 

This instrument was
acknowledged before me on                   
by Richard Bosworth as Managing Member of NTH Advisory Group, LLC, a
California limited liability company and the Managing Member of Hedwigs Las
Vegas GP, LLC, a Delaware limited liability company and the Managing Member of
Hedwigs Las Vegas Top Tier, LLC, a Delaware limited liability company.

	
  

  	
  NOTARY PUBLIC

  

 

	
  STATE OF NEVADA

  COUNTY OF CLARK

  	
  }ss.

  

 

This instrument was
acknowledged before me on                 
by Michael Hessling as President of 155 East Tropicana, LLC, a Nevada
limited liability company.

	
  

  	
  NOTARY PUBLIC

  

 

 

EXHIBIT
A

THE
PROPERTY

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

PARCEL I:

That portion of the West
Half (W 1/2) of the Northeast Quarter (NE 1/4) of the Northwest Quarter (NW
1/4) of Section 28, Township 21 South, Range 51 East, M.D.M., described as
follows:

COMMENCING at the North Quarter (N 1/4) corner of said Section 28;

THENCE South 89`50’14” west, along the North line of the Northwest
Quarter (NW 1/4) of said Section 28, a distance of 1,318.16 feet to a point;

THENCE South 02`54’50” East, a distance of 101.41 feet to a point on
the South right of way line of Tropicana Avenue (100 feet wide) said point
also being the Northwest (NW) corner of Tropicana Park, as shown by map thereof
on file in Book 8 of Plats, Page 37 and reverted to acreage by map
thereon on file in Book 15 of Plats, Page 11, Clark County Records
said point being the TRUE POINT OF BEGINNING;

THENCE North 87`11’36” East, along said South right of way line, a
distance of 452.59 feet to a point of tangency of a curve concave to the
Southwest and having a radius of 15.00 feet;

THENCE along said curve through a central angle of 89`50’04” an arc
length of 23.52 feet to a point on the Westerly right of way line of Scott
Street, as shown on said plats;

THENCE South 02`58’20” East, along said right of way line, a distance
of 631.04 feet to a point on the centerline of Mona Avenue, as shown on the
aforementioned plat of Tropicana Park;

THENCE South 87`01’40” West, along said centerline, and the Westerly extension
thereof, a distance of 468.21 feet to a point on the West line of said
Tropicana Park;

THENCE North 02`54’50”
West, along said line to the TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM that
portion of said land conveyed to the State of Nevada by deed recorded June 23,
1999 in Book 990623, Doc/Inst. No. 02544, Official Records, Clark County,
Nevada.

PARCEL II:

(Convention Center)

The Easterly 150 feet of
the West Half (W 1/2) of the Northeast Quarter (NE 1/4) of the Northwest
Quarter (NW 1/4) of Section 28, Township 21 South, Range 61 East, M.D.M.

EXCEPT the portion
thereof conveyed to the State of Nevada by Deed recorded May 29, 1959 as
Document No. 162200 of Official Records, Clark County, Nevada Records.

FURTHER EXCEPTING the
interest in the South 30 feet and the West 20 feet conveyed to Clark County for
roads, utilities and other public and incidental purposes by Deed recorded
September 13, 1971 as Document No. 128706.

FURTHER EXCEPTING that
portion of said land conveyed to Ben Hur Hotel, Inc. described as follows:

COMMENCING at the Southeast (SE) corner of the Northeast Quarter (NE
1/4) of the Northwest Quarter (NW 1/4) of said Section 28;

THENCE North 88`43’17” West along the South line thereof a distance of
658.98 feet to the Southwest (SW) corner of the East Half (E 1/2) of the
Northeast Quarter (NE 1/4) of the Northwest Quarter (NW 1/4) of Section 28,
said point being the TRUE POINT OF BEGINNING;

THENCE continuing North 88`43’17” West 
a distance of 148.90 feet to the Southeast (SE) corner of the Tropicana
Park Subdivision as shown in Book 8 of Plats, Page 37, Clark County Records,
Nevada; thence North 00`26’17” West along the East line of said Tropicana Park
a distance of 571.77 feet;

THENCE North 89`38’50” East a distance of 149.91 feet to a point in the
West line of the East Half (E 1/2) of the Northeast Quarter (NE 1/4) of the
Northwest Quarter (NW 1/4) of Section 28;

THENCE South 00`19’51”
East a distance of 576.01 feet to the TRUE POINT OF BEGINNING.

FURTHER EXCEPTING that certain
spandrel area conveyed to Clark County for road purposes by Deed recorded May
4, 1987 as Document No. 870504/00953 and re-recorded May 20, 1987 as Document
No. 870520/00620 of Official Records.

 

EXHIBIT 8

Termination of Memorandum of Agreement

 

APN(s): 162-28-101-002 and
162-28-102-001

 

 

 

RECORDING REQUESTED BY AND

WHEN RECORDED RETURN TO:

Sherwood
N. Cook

Kummer Kaempfer Bonner Renshaw & Ferrario

3800 Howard Hughes Parkway

Seventh Floor

Las Vegas, Nevada  89169

TERMINATION OF MEMORANDUM OF AGREEMENT

THIS TERMINATION OF
MEMORANDUM OF AGREEMENT is dated as of the      
day of             ,
200 , by and between 155 East Tropicana, LLC, a Nevada limited liability
company (“Seller”), and Hedwigs Las Vegas Top Tier, LLC, a Delaware limited
liability company (“Purchaser”).

BY THIS TERMINATION
OF MEMORANDUM OF AGREEMENT, that certain Memorandum of Agreement dated
May     , 2007 by and between Seller and Purchaser and
recorded in the Official Records of Clark County, Nevada on                   
in Book No.            as
Instrument            is
hereby terminated with respect to those certain parcels of real property
located in Clark County, Nevada and more particularly described on Exhibit A
attached hereto and incorporated herein by reference, and shall be of no
further force or effect.

[End of page]

IN WITNESS WHEREOF, this Termination of Memorandum of Agreement has
been executed as of the date first set forth above.

	
  

  	
  HEDWIGS LAS VEGAS TOP TIER, LLC,

  
	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Hedwigs Las Vegas GP, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability
  company

  
	
   

  	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NTH Advisory Group, LLC

  
	
   

  	
   

  	
   

  	
  a California limited liability

  
	
   

  	
   

  	
   

  	
  company

  
	
   

  	
   

  	
   

  	
  Its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard Bosworth

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  155 EAST TROPICANA, LLC

  
	
   

  	
  a Nevada limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Michael Hessling

  
	
   

  	
   

  	
  Title: President

  

 

 

	
  STATE OF NEVADA

  COUNTY OF CLARK

  	
  }ss.

  

 

This
instrument was acknowledged before me on                 
by Richard Bosworth as Managing Member of NTH Advisory Group, LLC, a
California limited liability company and the Managing Member of Hedwigs Las
Vegas GP, LLC, a Delaware limited liability company and the Managing Member of
Hedwigs Las Vegas Top Tier, LLC, a Delaware limited liability company.

	
  

  	
  NOTARY PUBLIC

  

 

	
  STATE OF NEVADA

  COUNTY OF CLARK

  	
  }ss.

  

 

This
instrument was acknowledged before me on                 
by Michael Hessling as President of 155 East Tropicana, LLC, a Nevada limited
liability company.

	
  

  	
  NOTARY PUBLIC

  

 

EXHIBIT A

THE PROPERTY

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

PARCEL I:

That portion of the West
Half (W 1/2) of the Northeast Quarter (NE 1/4) of the Northwest Quarter (NW
1/4) of Section 28, Township 21 South, Range 51 East, M.D.M., described as
follows:

COMMENCING at the North Quarter (N 1/4) corner of said Section 28;

THENCE South 89`50’14” west, along the North line of the Northwest
Quarter (NW 1/4) of said Section 28, a distance of 1,318.16 feet to a point;

THENCE South 02`54’50” East, a distance of 101.41 feet to a point on
the South right of way line of Tropicana Avenue (100 feet wide) said point
also being the Northwest (NW) corner of Tropicana Park, as shown by map thereof
on file in Book 8 of Plats, Page 37 and reverted to acreage by map
thereon on file in Book 15 of Plats, Page 11, Clark County Records
said point being the TRUE POINT OF BEGINNING;

THENCE North 87`11’36” East, along said South right of way line, a
distance of 452.59 feet to a point of tangency of a curve concave to the
Southwest and having a radius of 15.00 feet;

THENCE along said curve through a central angle of 89`50’04” an arc
length of 23.52 feet to a point on the Westerly right of way line of Scott
Street, as shown on said plats;

THENCE South 02`58’20” East, along said right of way line, a distance
of 631.04 feet to a point on the centerline of Mona Avenue, as shown on the
aforementioned plat of Tropicana Park;

THENCE South 87`01’40” West, along said centerline, and the Westerly extension
thereof, a distance of 468.21 feet to a point on the West line of said
Tropicana Park;

THENCE North 02`54’50”
West, along said line to the TRUE POINT OF BEGINNING.

EXCEPTING THEREFROM that
portion of said land conveyed to the State of Nevada by deed recorded June 23,
1999 in Book 990623, Doc/Inst. No. 02544, Official Records, Clark County,
Nevada.

PARCEL II:

(Convention Center)

The Easterly 150 feet of
the West Half (W 1/2) of the Northeast Quarter (NE 1/4) of the Northwest
Quarter (NW 1/4) of Section 28, Township 21 South, Range 61 East,
M.D.M.

EXCEPT the portion
thereof conveyed to the State of Nevada by Deed recorded May 29, 1959 as
Document No. 162200 of Official Records, Clark County, Nevada Records.

FURTHER EXCEPTING the
interest in the South 30 feet and the West 20 feet conveyed to Clark County for
roads, utilities and other public and incidental purposes by Deed recorded
September 13, 1971 as Document No. 128706.

FURTHER EXCEPTING that
portion of said land conveyed to Ben Hur Hotel, Inc. described as follows:

COMMENCING at the Southeast (SE) corner of the Northeast Quarter (NE
1/4) of the Northwest Quarter (NW 1/4) of said Section 28;

THENCE North 88`43’17” West along the South line thereof a distance of
658.98 feet to the Southwest (SW) corner of the East Half (E 1/2) of the
Northeast Quarter (NE 1/4) of the Northwest Quarter (NW 1/4) of Section 28,
said point being the TRUE POINT OF BEGINNING;

THENCE continuing North 88`43’17” West 
a distance of 148.90 feet to the Southeast (SE) corner of the Tropicana
Park Subdivision as shown in Book 8 of Plats, Page 37, Clark County Records,
Nevada; thence North 00`26’17” West along the East line of said Tropicana Park
a distance of 571.77 feet;

THENCE North 89`38’50” East a distance of 149.91 feet to a point in the
West line of the East Half (E 1/2) of the Northeast Quarter (NE 1/4) of the
Northwest Quarter (NW 1/4) of Section 28;

THENCE South 00`19’51”
East a distance of 576.01 feet to the TRUE POINT OF BEGINNING.

FURTHER EXCEPTING that certain
spandrel area conveyed to Clark County for road purposes by Deed recorded May
4, 1987 as Document No. 870504/00953 and re-recorded May 20, 1987 as Document
No. 870520/00620 of Official Records.

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