Document:

CREDIT
AGREEMENT

     

    Dated
as of July 23, 2010

     

    among

     

    NG
WASHINGTON II HOLDINGS, LLC

     

    as
borrower,

     

    THE
LENDERS THAT ARE SIGNATORIES HERETO,

     

    and

     

    FORTRESS
CREDIT CORP.

    as
agent

    
       

      
        	
                    

              

      

       

    

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

     

    
      
        
          
            	 
      	
                    PAGE

                  
	 
      	 
      
	
                    ARTICLE
      1 DEFINITIONS

                  	
                    2

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      1.1

                  	
                    Definitions

                  	
                    2

                  
	 
      	
                    Section
      1.2

                  	
                    Accounting
      Terms

                  	
                    21

                  
	 
      	
                    Section
      1.3

                  	
                    Uniform
      Commercial Code

                  	
                    22

                  
	 
      	
                    Section
      1.4

                  	
                    Construction

                  	
                    22

                  
	 
      	
                    Section
      1.5

                  	
                    Time
      Periods

                  	
                    22

                  
	 
      	 
      
	
                    ARTICLE
      2 THE
      CREDITS

                  	
                    22

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      2.1

                  	
                    Loan
      Facility.

                  	
                    22

                  
	 
      	
                    Section
      2.2

                  	
                    Extension
      of Loan Maturity Date

                  	
                    22

                  
	 
      	
                    Section
      2.3

                  	
                    Mandatory
      Prepayments.

                  	
                    22

                  
	 
      	
                    Section
      2.4

                  	
                    Optional
      Prepayments

                  	
                    23

                  
	 
      	
                    Section
      2.5

                  	
                    Application
      of Prepayments

                  	
                    23

                  
	 
      	
                    Section
      2.6

                  	
                    Amount
      of the Loans

                  	
                    24

                  
	 
      	
                    Section
      2.7

                  	
                    Repayment
      Fee

                  	
                    24

                  
	 
      	
                    Section
      2.8

                  	
                    Method
      of Note Issuance

                  	
                    24

                  
	 
      	
                    Section
      2.9

                  	
                    Interest
      Rate

                  	
                    25

                  
	 
      	
                    Section
      2.10

                  	
                    Rates
      Applicable After Default; Late Charge.

                  	
                    25

                  
	 
      	
                    Section
      2.11

                  	
                    Method
      of Payment

                  	
                    25

                  
	 
      	
                    Section
      2.12

                  	
                    Evidence
      of Indebtedness.

                  	
                    25

                  
	 
      	
                    Section
      2.13

                  	
                    Interest
      Payment Dates; Interest and Fee Basis

                  	
                    26

                  
	 
      	
                    Section
      2.14

                  	
                    Notification
      of Loans, Interest Rates and Prepayments

                  	
                    26

                  
	 
      	
                    Section
      2.15

                  	
                    Lending
      Installations

                  	
                    26

                  
	 
      	
                    Section
      2.16

                  	
                    Non
      Receipt of Funds by Agent

                  	
                    26

                  
	 
      	
                    Section
      2.17

                  	
                    Limitation
      on Interest

                  	
                    26

                  
	 
      	
                    Section
      2.18

                  	
                    Application
      of Excess Cash Flow

                  	
                    27

                  
	 
      	 
      
	
                    ARTICLE
      3 YIELD
      PROTECTION

                  	
                    27

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      3.1

                  	
                    Yield
      Protection

                  	
                    27

                  
	 
      	
                    Section
      3.2

                  	
                    Taxes

                  	
                    27

                  
	 
      	
                    Section
      3.3

                  	
                    [Intentionally
      Omitted]

                  	
                    28

                  
	 
      	 
      
	
                    ARTICLE
      4 CONDITIONS
      PRECEDENT

                  	
                    28

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      4.1

                  	
                    Loans
      and Closing

                  	
                    28

                  
	 
      	
                    Section
      4.2

                  	
                    Further
      Conditions Precedent

                  	
                    31

                  
	 
      	
                    Section
      4.3

                  	
                    Extension
      Option

                  	
                    31

                  
	 
      	 
      
	
                    ARTICLE
      5 REPRESENTATIONS
      AND WARRANTIES

                  	
                    32

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      5.1

                  	
                    Existence
      and Standing

                  	
                    32

                  
	 
      	
                    Section
      5.2

                  	
                    Authorization
      and Validity.

                  	
                    32

                  
	 
      	
                    Section
      5.3

                  	
                    No
      Conflict; Government Consent

                  	
                    33

                  
	 
      	
                    Section
      5.4

                  	
                    Financial
      Statements

                  	
                    33

                  
	 
      	
                    Section
      5.5

                  	
                    Material
      Adverse Change

                  	
                    33

                  
	 
      	
                    Section
      5.6

                  	
                    Taxes

                  	
                    33

                  
	 
      	
                    Section
      5.7

                  	
                    Litigation
      and Contingent Obligations

                  	
                    33

                  
	 
      	
                    Section
      5.8

                  	
                    Organizational
      Structure.

                  	
                    34

                  

          

        

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          i

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            	 
      	
                    Section
      5.9

                  	
                    Plan
      Liability.

                  	
                    34

                  
	 
      	
                    Section
      5.10

                  	
                    Accuracy
      of Information

                  	
                    34

                  
	 
      	
                    Section
      5.11

                  	
                    Regulation
      U

                  	
                    35

                  
	 
      	
                    Section
      5.12

                  	
                    Material
      Agreements

                  	
                    35

                  
	 
      	
                    Section
      5.13

                  	
                    Compliance
      With Laws

                  	
                    35

                  
	 
      	
                    Section
      5.14

                  	
                    Ownership
      of Property

                  	
                    35

                  
	 
      	
                    Section
      5.15

                  	
                    Plan
      Assets; Prohibited Transactions

                  	
                    35

                  
	 
      	
                    Section
      5.16

                  	
                    Environmental
      Law

                  	
                    35

                  
	 
      	
                    Section
      5.17

                  	
                    Environmental
      Matters

                  	
                    35

                  
	 
      	
                    Section
      5.18

                  	
                    Investment
      Company Act

                  	
                    36

                  
	 
      	
                    Section
      5.19

                  	
                    Affiliate
      Transactions

                  	
                    37

                  
	 
      	
                    Section
      5.20

                  	
                    Post
      Retirement Benefits

                  	
                    37

                  
	 
      	
                    Section
      5.21

                  	
                    Insurance

                  	
                    37

                  
	 
      	
                    Section
      5.22

                  	
                    Solvency

                  	
                    37

                  
	 
      	
                    Section
      5.23

                  	
                    Anti-Terrorism
      Laws

                  	
                    37

                  
	 
      	
                    Section
      5.24

                  	
                    No
      Violation of Anti-Money Laundering Laws

                  	
                    37

                  
	 
      	
                    Section
      5.25

                  	
                    Labor
      Matters

                  	
                    37

                  
	 
      	
                    Section
      5.26

                  	
                    Patents,
      Trademarks, Permits, Etc.; Government Approvals.

                  	
                    38

                  
	 
      	
                    Section
      5.27

                  	
                    Collateral
      Locations and Condition

                  	
                    38

                  
	 
      	
                    Section
      5.28

                  	
                    Gaming
      and Liquor Laws

                  	
                    38

                  
	 
      	
                    Section
      5.29

                  	
                    Asset
      Purchase Agreement

                  	
                    38

                  
	 
      	
                    Section
      5.30

                  	
                    Mortgages

                  	
                    38

                  
	 
      	
                    Section
      5.31

                  	
                    Assessments

                  	
                    38

                  
	 
      	
                    Section
      5.32

                  	
                    No
      Joint Assessment; Separate Lots

                  	
                    38

                  
	 
      	
                    Section
      5.33

                  	
                    Flood
      Zone

                  	
                    39

                  
	 
      	
                    Section
      5.34

                  	
                    No
      Encroachments

                  	
                    39

                  
	 
      	
                    Section
      5.35

                  	
                    Management
      Agreement

                  	
                    39

                  
	 
      	
                    Section
      5.36

                  	
                    Leases

                  	
                    39

                  
	 
      	
                    Section
      5.37

                  	
                    Status
      of Borrower and Operator

                  	
                    39

                  
	 
      	
                    Section
      5.38

                  	
                    Deposit
      Accounts and Securities Accounts

                  	
                    39

                  
	 
      	
                    Section
      5.39

                  	
                    Gaming
      and Liquor Licensing

                  	
                    39

                  
	 
      	
                    Section
      5.40

                  	
                    Fiscal
      Year

                  	
                    39

                  
	 
      	
                    Section
      5.41

                  	
                    Corporate
      Overhead

                  	
                    39

                  
	 
      	
                    Section
      5.42

                  	
                    Indebtedness

                  	
                    39

                  
	 
      	 
      
	
                    ARTICLE
      6 COVENANTS

                  	
                    39

                  
	 
      	 
      	 
      	 
      
	 
      	
                    Section
      6.1

                  	
                    Reporting

                  	
                    39

                  
	 
      	
                    Section
      6.2

                  	
                    Application
      of Acquisition Finance Consideration

                  	
                    43

                  
	 
      	
                    Section
      6.3

                  	
                    Further
      Assurances

                  	
                    43

                  
	 
      	
                    Section
      6.4

                  	
                    Conduct
      of Business

                  	
                    43

                  
	 
      	
                    Section
      6.5

                  	
                    Taxes

                  	
                    43

                  
	 
      	
                    Section
      6.6

                  	
                    Insurance

                  	
                    43

                  
	 
      	
                    Section
      6.7

                  	
                    Compliance
      with Laws

                  	
                    44

                  
	 
      	
                    Section
      6.8

                  	
                    Maintenance
      of Properties

                  	
                    44

                  
	 
      	
                    Section
      6.9

                  	
                    Books
      and Records; Inspection

                  	
                    44

                  
	 
      	
                    Section
      6.10

                  	
                    Distributions
      and Dividends

                  	
                    44

                  
	 
      	
                    Section
      6.11

                  	
                    Indebtedness

                  	
                    44

                  
	 
      	
                    Section
      6.12

                  	
                    Merger

                  	
                    45

                  
	 
      	
                    Section
      6.13

                  	
                    Sale
      of Assets

                  	
                    45

                  
	 
      	
                    Section
      6.14

                  	
                    Investments
      and Acquisitions

                  	
                    45

                  
	 
      	
                    Section
      6.15

                  	
                    Liens

                  	
                    45

                  
	 
      	
                    Section
      6.16

                  	
                    Affiliate
      Transactions

                  	
                    46

                  
	 
      	
                    Section
      6.17

                  	
                    Amendments
      to Agreements

                  	
                    46

                  
	 
      	
                    Section
      6.18

                  	
                    Deposit
      and Securities Accounts; Tax, Insurance and CME Reserves

                  	
                    46

                  

          

        

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 
      	
                                Section
      6.19

                              	
                                Sale
      of Accounts

                              	
                                46

                              
	 
      	
                                Section
      6.20

                              	
                                Sale
      and Leaseback Transactions and other Off-Balance Sheet
      Liabilities

                              	
                                46

                              
	 
      	
                                Section
      6.21

                              	
                                Contingent
      Obligations

                              	
                                46

                              
	 
      	
                                Section
      6.22

                              	
                                Letters
      of Credit

                              	
                                47

                              
	 
      	
                                Section
      6.23

                              	
                                Financial
      Covenants

                              	
                                47

                              
	 
      	
                                Section
      6.24

                              	
                                Capital
      Expenditures

                              	
                                47

                              
	 
      	
                                Section
      6.25

                              	
                                Management
      Fees, Management Expenses and Interest Expense

                              	
                                47

                              
	 
      	
                                Section
      6.26

                              	
                                Negative
      Pledge

                              	
                                48

                              
	 
      	
                                Section
      6.27

                              	
                                Compliance
      with Anti-Money Laundering Laws and Anti-Terrorism Laws

                              	
                                48

                              
	 
      	
                                Section
      6.28

                              	
                                Prohibited
      Events

                              	
                                49

                              
	 
      	
                                Section
      6.29

                              	
                                Trade
      Names

                              	
                                49

                              
	 
      	
                                Section
      6.30

                              	
                                New
      Subsidiaries

                              	
                                49

                              
	 
      	
                                Section
      6.31

                              	
                                Gaming
      and Liquor Licensing

                              	
                                49

                              
	 
      	
                                Section
      6.32

                              	
                                Fiscal
      Year

                              	
                                49

                              
	 
      	 
      
	
                                ARTICLE 7
      RESERVES

                              	
                                49

                              
	 
      	 
      	 
      	 
      
	 
      	
                                Section
      7.1

                              	
                                Tax
      Reserve

                              	
                                49

                              
	 
      	
                                Section
      7.2

                              	
                                Insurance
      Reserve

                              	
                                51

                              
	 
      	
                                Section
      7.3

                              	
                                CME
      Reserve

                              	
                                52

                              
	 
      	 
      
	
                                ARTICLE 8
      DEFAULTS

                              	
                                52

                              
	 
      	 
      	 
      	 
      
	 
      	
                                Section
      8.1

                              	
                                Representations
      and Warranties

                              	
                                52

                              
	 
      	
                                Section
      8.2

                              	
                                Failure
      to Make Payments

                              	
                                52

                              
	 
      	
                                Section
      8.3

                              	
                                Breach
      of Certain Covenants

                              	
                                53

                              
	 
      	
                                Section
      8.4

                              	
                                Delivery
      of Financial Statements

                              	
                                53

                              
	 
      	
                                Section
      8.5

                              	
                                Other
      Defaults

                              	
                                53

                              
	 
      	
                                Section
      8.6

                              	
                                Default
      as to Material Indebtedness

                              	
                                53

                              
	 
      	
                                Section
      8.7

                              	
                                Involuntary
      Bankruptcy; Appointment of Receiver, Etc.

                              	
                                53

                              
	 
      	
                                Section
      8.8

                              	
                                Voluntary
      Bankruptcy; Appointment of Receiver, Etc.

                              	
                                54

                              
	 
      	
                                Section
      8.9

                              	
                                Condemnation

                              	
                                54

                              
	 
      	
                                Section
      8.10

                              	
                                Judgments
      and Attachments

                              	
                                54

                              
	 
      	
                                Section
      8.11

                              	
                                ERISA
      Matters

                              	
                                54

                              
	 
      	
                                Section
      8.12

                              	
                                Change
      in Control

                              	
                                54

                              
	 
      	
                                Section
      8.13

                              	
                                Environmental
      Matters

                              	
                                54

                              
	 
      	
                                Section
      8.14

                              	
                                Other
      Loan Documents

                              	
                                54

                              
	 
      	
                                Section
      8.15

                              	
                                Collateral
      Documents

                              	
                                54

                              
	 
      	
                                Section
      8.16

                              	
                                Breach
      of Lease

                              	
                                55

                              
	 
      	 
      
	ARTICLE 9 ACCELERATION,
      WAIVERS, AMENDMENTS AND REMEDIES	
                                 55

                              
	 
      	 
      	 
      	 
      
	 
      	
                                Section
      9.1

                              	
                                Acceleration

                              	
                                55

                              
	 
      	
                                Section
      9.2

                              	
                                Amendments
      and Waivers

                              	
                                55

                              
	 
      	
                                Section
      9.3

                              	
                                Preservation
      of Rights

                              	
                                56

                              
	 
      	 
      
	
                                ARTICLE
      10 GENERAL
      PROVISIONS

                              	
                                56

                              
	 
      	 
      	 
      	 
      
	 
      	
                                Section
      10.1

                              	
                                Survival
      of Representations and Warranties

                              	
                                56

                              
	 
      	
                                Section
      10.2

                              	
                                Governmental
      Regulation

                              	
                                56

                              
	 
      	
                                Section
      10.3

                              	
                                Headings

                              	
                                56

                              
	 
      	
                                Section
      10.4

                              	
                                Entire
      Agreement

                              	
                                56

                              
	 
      	
                                Section
      10.5

                              	
                                Several
      Obligations; Benefits of this Agreement

                              	
                                56

                              
	 
      	
                                Section
      10.6

                              	
                                Expenses;
      Indemnification

                              	
                                57

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          iii

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                
                  
                    	 
      	
                            Section
      10.7

                          	
                            Numbers
      of Documents

                          	
                            58

                          
	 
      	
                            Section
      10.8

                          	
                            Accounting

                          	
                            58

                          
	 
      	
                            Section
      10.9

                          	
                            Severability
      of Provisions

                          	
                            58

                          
	 
      	
                            Section
      10.10

                          	
                            Nonliability
      of Lenders

                          	
                            58

                          
	 
      	
                            Section
      10.11

                          	
                            Confidentiality

                          	
                            58

                          
	 
      	
                            Section
      10.12

                          	
                            Nonreliance

                          	
                            58

                          
	 
      	
                            Section
      10.13

                          	
                            Disclosure

                          	
                            58

                          
	 
      	 
      
	
                            ARTICLE 11
      AGENT

                          	
                            58

                          
	 
      	 
      	 
      	 
      
	 
      	
                            Section
      11.1

                          	
                            Appointment;
      Nature of Relationship

                          	
                            58

                          
	 
      	
                            Section
      11.2

                          	
                            Powers

                          	
                            59

                          
	 
      	
                            Section
      11.3

                          	
                            General
      Immunity

                          	
                            59

                          
	 
      	
                            Section
      11.4

                          	
                            Exculpatory
      Provisions

                          	
                            59

                          
	 
      	
                            Section
      11.5

                          	
                            Employment
      of Agents and Counsel

                          	
                            60

                          
	 
      	
                            Section
      11.6

                          	
                            Reliance
      by Agent

                          	
                            60

                          
	 
      	
                            Section
      11.7

                          	
                            Agent’s
      Reimbursement and Indemnification

                          	
                            60

                          
	 
      	
                            Section
      11.8

                          	
                            Notice
      of Default

                          	
                            60

                          
	 
      	
                            Section
      11.9

                          	
                            Rights
      as a Lender

                          	
                            60

                          
	 
      	
                            Section
      11.10

                          	
                            Non-Reliance
      on Agent and Other Lenders

                          	
                            60

                          
	 
      	
                            Section
      11.11

                          	
                            Indemnity
      by Lenders

                          	
                            61

                          
	 
      	
                            Section
      11.12

                          	
                            Successor
      Agent

                          	
                            61

                          
	 
      	
                            Section
      11.13

                          	
                            Fees

                          	
                            61

                          
	 
      	
                            Section
      11.14

                          	
                            Delegation
      to Affiliates

                          	
                            61

                          
	 
      	
                            Section
      11.15

                          	
                            Execution
      of Collateral Documents

                          	
                            61

                          
	 
      	
                            Section
      11.16

                          	
                            Collateral
      Releases

                          	
                            62

                          
	 
      	 
      
	
                            ARTICLE
      12 SETOFF;
      RATABLE PAYMENTS

                          	
                            62

                          
	 
      	 
      	 
      	 
      
	 
      	
                            Section
      12.1

                          	
                            Setoff

                          	
                            62

                          
	 
      	
                            Section
      12.2

                          	
                            Ratable
      Payments

                          	
                            62

                          
	 
      	 
      
	ARTICLE 13 BENEFIT
      OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS 	
                             62

                          
	 
      	 
      	 
      	 
      
	 
      	
                            Section
      13.1

                          	
                            Successors
      and Assigns

                          	
                            62

                          
	 
      	
                            Section
      13.2

                          	
                            Participations

                          	
                            63

                          
	 
      	
                            Section
      13.3

                          	
                            Assignments
      by Lenders

                          	
                            63

                          
	 
      	
                            Section
      13.4

                          	
                            No
      New Loan

                          	
                            65

                          
	 
      	
                            Section
      13.5

                          	
                            Certain
      Pledges

                          	
                            65

                          
	 
      	
                            Section
      13.6

                          	
                            Dissemination
      of Information

                          	
                            65

                          
	 
      	
                            Section
      13.7

                          	
                            Tax
      Forms

                          	
                            65

                          
	 
      	
                            Section
      13.8

                          	
                            Approval
      of Gaming Authorities

                          	
                            65

                          
	 
      	 
      
	
                            ARTICLE 14
      NOTICES

                          	
                            65

                          
	 
      	 
      	 
      	 
      
	 
      	
                            Section
      14.1

                          	
                            Notices

                          	
                            65

                          
	 
      	
                            Section
      14.2

                          	
                            Change
      of Address

                          	
                            66

                          
	 
      	 
      
	
                            ARTICLE
      15 MISCELLANEOUS

                          	
                            66

                          
	 
      	 
      	 
      	 
      
	 
      	
                            Section
      15.1

                          	
                            Counterparts

                          	
                            66

                          
	 
      	
                            Section
      15.2

                          	
                            USA
      Patriot Act

                          	
                            66

                          
	 
      	
                            Section
      15.3

                          	
                            Restrictions
      under Gaming Laws and Liquor Laws

                          	
                            66

                          
	 
      	
                            Section
      15.4

                          	
                            Intralinks,
      Etc

                          	
                            66

                          

                  

                

              

            

          

        

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          iv

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            
              
                	ARTICLE 16 CHOICE
      OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
      TRIAL 	
                        67

                      
	 
      	 
      	 
      	 
      
	 
      	
                        Section
      16.1

                      	
                        CHOICE
      OF LAW

                      	
                        67

                      
	 
      	
                        Section
      16.2

                      	
                        CONSENT
      TO JURISDICTION

                      	
                        67

                      
	 
      	
                        Section
      16.3

                      	
                        WAIVER
      OF VENUE

                      	
                        67

                      
	 
      	
                        Section
      16.4

                      	
                        WAIVER
      OF JURY TRIAL

                      	
                        67

                      

              

            

          

        

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          v

          
            

          

        

        
           

        

      

    

    

    Exhibits

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Exhibit A:

                                          	
                                            Form
      of Pledge Agreement

                                          
	
                                            Exhibit B:

                                          	
                                            Form
      of Security Agreement

                                          
	
                                            Exhibit C:

                                          	
                                            Form
      of Note Issue Notice

                                          
	
                                            Exhibit D:

                                          	
                                            Form
      of Note

                                          
	
                                            Exhibit E:

                                          	
                                            Closing
      List

                                          
	
                                            Exhibit F:

                                          	
                                            Form
      of Compliance Certificate

                                          
	
                                            Exhibit G:

                                          	
                                            Form
      of Assignment and Assumption Agreement

                                          
	
                                            Exhibit H:

                                          	
                                            Form
      of Extension Notice

                                          
	
                                            Exhibit I:

                                          	
                                            Form
      of Guaranty

                                          
	
                                            Exhibit J:

                                          	
                                            Form
      of Monthly Gaming Report

                                          
	
                                            Exhibit K:

                                          	
                                            Agent’s
      Account

                                          
	
                                            Exhibit L:

                                          	
                                            Commitments
      and Pro Rata Shares of the Lenders

                                          
	
                                            Exhibit M:

                                          	
                                            Deposit
      Accounts and Securities Accounts

                                          
	
                                            Exhibit N:

                                          	
                                            Permitted
      Management
Expenses

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    Schedules

     

    
      
        	
                Schedule 1.1:

              	
                Mortgaged
      Properties

              
	
                Schedule 5.7:

              	
                Litigation
      and Contingent Obligations

              
	
                Schedule 5.8.1:

              	
                Credit
      Party Corporate Information

              
	
                Schedule
      5.8.2

              	
                Credit
      Party Organizational Structure

              
	
                Schedule
      5.8.3

              	
                Joint
      Ventures and Partnerships

              
	
                Schedule 5.14:

              	
                Liens

              
	
                Schedule 5.17.1:

              	
                Environmental
      Matters

              
	
                Schedule 5.25:

              	
                Labor
      Matters

              
	
                Schedule 5.26.1:

              	
                Pending
      Claims against any Credit Party

              
	
                Schedule 5.27:

              	
                List
      of All Real Property and Leases

              
	
                Schedule 5.36:

              	
                Leases
      on Mortgaged Properties

              
	
                Schedule 6.11

              	
                Indebtedness

              
	
                Schedule 14.1:

              	
                Notice
      Information

              

      

    

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          vi

          
            

          

        

        
           

        

      

    

    

    CREDIT
AGREEMENT

     

    THIS
CREDIT AGREEMENT, dated as of July 23, 2010 (as amended, amended and restated,
supplemented and/or otherwise modified and in effect from time to time, this
“Agreement”),
is entered into among NG
WASHINGTON II HOLDINGS, LLC, a Delaware limited liability company (
“Borrower”),
the lenders identified on the signature pages hereof (such lenders, together
with their respective successors and permitted assigns, are referred to
hereinafter each individually as a “Lender” and
collectively as the “Lenders”), and FORTRESS CREDIT CORP., a
Delaware corporation, as agent to the Lenders (together with its successors and
assigns, “Agent”).

     

    RECITALS

     

    WHEREAS,
NG Washington II, LLC, a Washington limited liability company and Wholly-Owned
Subsidiary of Borrower  (“Buyer” or “Operator”, as the
context requires) and Grant Thornton Ltd., in its capacity as court-appointed
receiver and not in its personal capacity (“Receiver”), entered
into that certain asset purchase agreement dated as of April 14, 2010 (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “Asset
Purchase Agreement”);

     

    WHEREAS,
each of Borrower and Buyer are Wholly-Owned Subsidiaries of Nevada Gold &
Casinos, Inc., a Nevada corporation (“Parent”);

     

    WHEREAS,
NG Washington, LLC, a Washington limited liability company and a Wholly-Owned
Subsidiary of Parent (“NG Washington”)
currently owns and operates three (3) card room businesses in the State of
Washington licensed by the Washington State Gambling Commission (“WSGC”) d/b/a “Crazy
Moose Casino”, “Coyote Bob’s Casino” and “Crazy Moose Casino II” (collectively,
the “Existing Card
Rooms”);

     

    WHEREAS,
pursuant to the Asset Purchase Agreement, Receiver agreed to sell, and Operator
agreed to purchase, certain of the assets of the following Washington
corporations (the “Companies”) currently
under the control of and operated by Receiver: (a) Big Nevada, Inc., Little
Nevada, Inc., Golden Nugget Tukwila, Inc., Mill Creek Gaming, Inc., Royal Casino
Holdings, Inc., Silver Dollar Mill Creek, Inc. and Hollydrift Gaming, Inc.
(including the card room businesses thereof other than “The Silver Dollar
Tukwila” operated by Little Nevada, Inc. and “The Drift on Inn Casino” operated
by Hollydrift Gaming, Inc. (such card room businesses collectively the “New Card Rooms”)),
and (b) Gameco, Inc., Gaming Consultants, Inc. and Gaming Management, Inc.
which historically provided  management services to the New Card
Rooms, (such assets collectively, the “Purchased
Assets”);

     

    WHEREAS,
Operator intends to operate each of the New Card Rooms;

     

    WHEREAS,
Fortress and the initial Lenders are senior secured creditors of the Companies
and expect to receive from Receiver distributions from the net proceeds of sale
of the Purchased Assets pursuant to the Asset Purchase Agreement, as senior
secured creditors of the Companies;

     

    WHEREAS,
Borrower and the other Credit Parties have requested from the original Lenders,
and, subject to the terms and conditions contained herein, the original Lenders
have agreed to provide to Borrower, for the benefit of Borrower, Operator and
the other Credit Parties, term loans in an aggregate principal amount not to
exceed the Facility Commitment (as defined hereinafter) for the purpose of
financing a portion of the acquisition consideration due from Operator to
Receiver for the Purchased Assets pursuant to the Asset Purchase Agreement, the
balance of the acquisition consideration to be paid to Receiver in cash from the
proceeds of that certain Amended and Restated Promissory Note dated July 7, 2009
issued by Parent to Louise H. Rogers (the “Rogers’ Note”);
and

     

    WHEREAS,
as an inducement for Lenders to provide the term loans to Borrower under this
Agreement, Lenders require (a) Parent, Borrower and Operator to enter into the
applicable Collateral Documents (as defined hereinafter) to secure the
Obligations (as defined hereinafter), and (b) Operator and NG Washington to
enter into the Guaranty (as defined hereinafter) to guaranty payment of the
Obligations (as defined hereinafter).

     

    NOW,
THEREFORE, in consideration of the promises and the mutual covenants hereinafter
contained, and for other good and valuable consideration, the parties hereto
agree as follows:

     

    
      
        Fortress/Nevada
Gold & Casinos
Credit
Agreement

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    ARTICLE
1

     

    DEFINITIONS

     

    Section
1.1          Definitions.  As
used in this Agreement (including, without limitation, the preamble and recitals
above), the following terms shall have the following meanings:

     

    “Account Bank” means,
with respect to the Deposit Account maintained by Borrower, Encore Bank N.A.,
and, with respect to the Deposit Accounts maintained by the Operator, Sterling
Savings Bank, a Washington State-chartered commercial bank, or any other
depository institution acceptable to Agent in its sole discretion,.

     

    “Acquisition” means
any transaction, or any series of related transactions, consummated prior to, on
or after the date of this Agreement, by which Borrower or Operator:

     

    (a)           acquires
any ongoing business or all or substantially all of the assets of any Person, or
division thereof, whether through purchase of assets, merger or otherwise
(including, without limitation, the acquisition of the Purchased Assets pursuant
to the Asset Purchase Agreement); or

     

    (b)           directly
or indirectly acquires (in one transaction or as the most recent transaction in
a series of transactions) at least a majority (in number of votes) of the Voting
Stock of a Person (other than Securities having such power only by reason of the
happening of a contingency).

     

    “Acquisition Finance
Consideration” means the Fortress Accommodation (as defined in the Asset
Purchase Agreement) made available to Borrower hereunder, and evidenced by the
Notes issued by Borrower to Lenders hereunder.

     

    “Adjusted EBITDA”
means, with respect to any Person for any period, (a) the Net Income of such
Person for such period (excluding from the determination of Net Income any
extraordinary gains and losses), plus (b) without
duplication, the sum of the following amounts of such Person, in each case to
the extent deducted in determining Net Income for such Person during such
period: (i) Net Interest Expense; (ii) income Tax expense; (iii) depreciation
expense; (iv) amortization expense; and (v) corporate overhead attributable to
the Purchased Assets; minus (c) without
duplication, the sum of all of the following amounts of such Person for such
period: (i) the aggregate amount of all non-cash items increasing Net Income;
(ii) non-recurring gains and losses; (iii) income tax credits, (iv) gains and
losses from discontinued operations, (v)  non-cash deferred and stock
based compensation and (vi) non-recurring, non-operating income.

    

    “Affiliate” of any
Person means any other Person directly or indirectly controlling, controlled by
or under common control with such Person.  A Person shall be deemed to
control another Person if the controlling Person owns ten percent (10%) or more
of any class of Voting Stock (or other ownership interests) of the controlled
Person or possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of the controlled Person, whether
through ownership of Voting Stock, by contract or otherwise, and “Affiliated” has a
correlative meaning to Affiliate.

     

    “Agent” is defined in
the preamble hereto.

     

    “Agent’s Account”
means the Deposit Account of Agent identified on Exhibit
K.

     

    “Agreement” is defined
in the preamble hereto.

     

    “Anti-Money-Laundering
Laws” means the BSA and all applicable Requirements of Law and government
guidance on BSA compliance and on the prevention and detection of money
laundering violations under 18 U.S.C. §§ 1956 and 1957.

     

    “Anti-Terrorism Laws”
means the OFAC Laws and Regulations, the Executive Orders and the USA Patriot
Act and regulations promulgated thereunder.

     

    “Applicable Margin”
means nine percent (9.00%) per annum.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    “Applicable Maturity
Date” means:

     

    (a)           the
Initial Maturity Date; or

     

    (b)           if
the maturity of the Loans is extended in accordance with Section 2.2, the
Extended Maturity Date.

     

    “Applicable Rate”
means, with respect to any calendar month during which any Loan is outstanding,
the sum of:

     

    (a)           LIBOR;
plus

     

    (b)            the
Applicable Margin.

     

    “Approved CapEx
Budget” is defined in Section
6.1(b).

     

    “Approved Capital
Expenditures” means, for a Fiscal Year, the aggregate amount of Capital
Expenditures of the Operator set forth in the Approved CapEx Budget for that
Fiscal Year.

     

    “Approved Fund” means
any Fund that is administered or managed by:

     

    (a)           a
Lender;

     

    (b)           an
Affiliate of a Lender; or

     

    (c)           an
entity or an Affiliate of an entity that administers or manages a
Lender.

     

    “Asset Purchase
Agreement” is defined in the recitals hereto.

     

    “Assignees” is defined
in Section
13.3.

     

    “Assignment and Assumption
Agreement” is defined in Section
13.3(a).

     

    “Authorized Officer”
means, with respect to a Person, any of the President, Chief Executive Officer,
or Chief Financial Officer, as applicable, of that Person.

     

    “Base Consideration
Amount” has the meaning ascribed to such term in the Asset Purchase
Agreement.

     

    “Borrower” is defined
in the preamble hereto.

     

    “Borrowing” means the
borrowing of a Loan hereunder, evidenced by a Note or Notes issued by Borrower
to each Lender.

     

    “BSA” means the Bank
Secrecy Act, 31 U.S.C. §§ 5311 et seq.

     

    “Business Day”
means:

     

    (a)           with
respect to a Borrowing, any payment or rate determination of the Loan, a day
(other than a Saturday or Sunday) on which banks generally are open in New York,
New York and London, England for the conduct of substantially all of their
commercial lending activities, interbank wire transfers can be made on the
Fedwire system and dealings in US Dollars are carried on in the London interbank
market; and

     

    (b)           for
all other purposes, a day (other than a Saturday or Sunday) on which banks
generally are open in New York, New York for the conduct of substantially all of
their commercial lending activities and interbank wire transfers can be made on
the Fedwire system.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

     

    “Buyer” is defined in
the recitals hereto.

     

    “CapEx Budget” is
defined in Section
6.1(b).

     

    “Capital Expenditures”
of a Person means, without duplication, any expenditures for any purchase,
leasing or other acquisition of any Property which would be classified as a
fixed or capital asset on a balance sheet of such Person prepared in accordance
with GAAP.

     

    “Capitalized Lease” of
a Person means any lease of Property by such Person as lessee which would be
capitalized on a balance sheet of such Person prepared in accordance with
GAAP.

     

    “Capitalized Lease
Obligations” of a Person means the amount of the obligations of such
Person under Capitalized Leases which would be shown as a liability on a balance
sheet of such Person prepared in accordance with GAAP.

     

    “Capital Stock” means,
with respect to any Person, any shares of common or preferred stock, any other
equity securities, any limited liability company interests, any general or
limited partnership interests or other equivalents of such Person, regardless of
class or designation, and all warrants, options, purchase rights, conversion or
exchange rights, voting rights, calls or claims of any character with respect
thereto.

     

    “Cash Capital
Expenditures” means, with reference to any period, the aggregate amount
of all Capital Expenditures paid in cash by Operator related to the operation of
the New Card Rooms.

     

    “Cash Equivalent
Investments” means:

     

    (a)           marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States or issued by any agency thereof and backed by the full faith and credit
of the United States, in each case maturing within one year from the date of
acquisition thereof;

     

    (b)           marketable
direct obligations issued by any state of the United States or any political
subdivision of any such state or any public instrumentality thereof maturing
within one year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either S&P or
Moody’s;

     

    (c)           commercial
paper maturing no more than 270 days from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s;

     

    (d)      
    certificates of deposit or bankers’ acceptances maturing
within one year from the date of acquisition thereof issued by any bank
organized under the laws of the United States or any state thereof having at the
date of acquisition thereof combined capital and surplus of not less than
US$500,000,000; and

     

    (e)
Investments in money market funds substantially all of whose assets are invested
in the types of assets described in clauses (a) through
(d)
above.

     

    “Cash Interest
Expense” means, with reference to any period, interest paid in cash on
the Loans and on any other Indebtedness permitted to be incurred by Operator
under Section
6.11.

     

    “Cash Operating
Expenses” means, with reference to any period, the aggregate amount of
all Operating Expenses paid in cash by Operator related to the operation of the
New Card Rooms.

     

    “Cash Tax Expense”
means, with reference to any period, the aggregate amount of any Taxes
(including, without limitation, gaming taxes) paid in cash by Operator or
Borrower (including any deductions for interest paid thereon) arising from the
operation of the New Card Rooms during such period; provided that any
such Tax payment made shall only be a “Cash Tax Expense” to the extent Agent has
verified that the amount of the Tax payment calculated by Operator or Borrower
as being due has actually been paid in cash by Operator or Borrower, as the case
may be.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

     

    “Casino” means any
gaming establishment and other property or assets directly ancillary thereto or
used in connection therewith, including any building, restaurant, hotel,
theater, parking facilities, retail shops, land, golf courses and other
recreation and entertainment facilities, marina, vessel, barge, ship and
equipment to the extent required under applicable Gaming Laws to be registered
with, approved by, or not disapproved by, all applicable Gaming
Authorities.

     

    “CERCLA” means the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
U.S.C. §§ 9601 et seq., any amendments
thereto, any successor statutes, and any regulations or legally enforceable
guidance promulgated thereunder.

     

    “Change in Control”
means any of the following shall occur:

     

    (a)           Parent
at any time shall cease to own directly one hundred percent (100%) of the
Capital Stock of Borrower and NG Washington; or

     

    (b)           Parent
at any time shall cease to own indirectly one hundred percent (100%) of the
Capital Stock of Borrower; or

     

    (c)           Borrower
at any time shall cease to own directly one hundred percent (100%) of the
Capital Stock of Operator; or

     

    (d)           Parent
at any time shall cease to be a publicly-listed company on the New York Stock
Exchange or NASDAQ; provided that such
event shall not be a Change in Control if the Administrative Agent determines in
its reasonable discretion that such event will not cause a Material Adverse
Change as described in sub-clause (i) of that defined term only;

     

    (e)           the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person or group (as such terms are used for purposed of Section 13(d) of
 the Securities Exchange Act of 1934), of Capital Stock representing more
than 49.99% of the then-exercisable aggregate ordinary voting power represented
by the issued and outstanding Capital Stock of Parent; or

     

    (f)           the
natural persons who on the date hereof constitute the board of directors of
Parent (together with any new directors whose election by such board of
directors of Parent or whose nomination for election by the stockholders of
Parent was approved by a vote of a majority of the directors of Parent then
still in office who were either directors on the date of this Agreement or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the board of directors of Parent then in
office.

     

    “Claim” means any
claim or demand, by any Person, of whatsoever kind or nature for any alleged
Liabilities and Costs, whether based in contract, tort, implied or express
warranty, strict liability, criminal or civil statute, Permit, ordinance or
regulation, common law or otherwise.

     

    “Closing List” is
defined in Section
4.1(a)(C).

     

    “CME Reserve” is
defined in Section
7.3(a).

     

    “Collateral” means the
Property from time to time of each Collateral Party subject to Liens in favor of
Agent to secure the Obligations pursuant to the Collateral
Documents.  “Collateral” includes, without limitation, the Purchased
Assets.

     

    “Collateral Documents”
means, collectively:

     

    (a)           the
Pledge Agreement;

     

    (b)           each
Control Agreement;

     

    (c)           the
Security Agreement;

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

     

    (d)           the
Mortgages;

     

    (e)           the
Estoppels;

     

    (f)           the
SNDAs; and

     

    (g)           all
other pledge or hypothecation agreements, debentures, mortgages, deeds of trust
and other documents purporting to evidence a Lien or perfect a Lien granted in
connection with this Agreement or any other Loan Document, in each case as
amended, amended and restated, supplemented and/or otherwise modified and in
effect from time to time.

     

    “Collateral Party”
means each of Parent, Borrower and Operator.

     

    “Collateral
Subsidiaries” means Borrower and Operator.

     

    “Commission” means the
Securities and Exchange Commission.

     

    “Commitment” means,
with respect to each Lender, the commitment of such Lender to make its Pro Rata
Share of the Loans available to Borrower hereunder on each Purchase Agreement
Closing Date.  The Commitments of each Lender as of the date of this
Agreement are set forth on Exhibit L
hereto.

     

    “Compliance
Certificate” means a duly completed certificate signed by the Chief
officer of Borrower in the form of Exhibit
F.

     

    “Constituent Document”
means:

     

    (a)           with
respect to any corporation:

     

    (i)         the
certificate of incorporation, notice of articles and articles of incorporation
(or the equivalent organizational documents) of such entity;

     

    (ii)        the
bylaws (or the equivalent governing documents, if any) of such entity;
and

     

    (iii)       any
document setting forth the designation, amount and/or relative rights,
limitations and preferences of any class or series of such entity’s Capital
Stock or the holders thereof;

     

    (b)           with
respect to any partnership (whether limited or general):

     

    (i)         the
certificate of partnership (or equivalent filings);

     

    (ii)        the
partnership agreement (or equivalent organizational documents) of such
partnership; and

     

    (iii)       any
document setting forth the designation, amount and/or rights, limitations and
preferences of any of such partnership’s partnership interests or the holders
thereof;

     

    (c)           with
respect to any limited liability company:

     

    (i)         the
articles of organization (or the equivalent organizational documents) of such
entity;

     

    (ii)        the
operating agreement (or the equivalent governing documents) of such entity;
and

     

    (iii)       any
document setting forth the designation, amount and/or rights, limitations and
preferences of any of such limited liability company’s membership interests or
the holders thereof; and

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

     

    (d)           with
respect to any other type of entity, the organizational and governing document
for such entity which are equivalent to those described in clauses (a) through
(c) above, as
applicable.

     

    “Contaminant” means
any waste, pollutant, hazardous substance, radioactive substance or material,
flammable explosives, toxic substance, hazardous waste, radioactive waste,
special waste, petroleum or petroleum-derived substance or waste, mold, asbestos
in any form or condition, polychlorinated biphenyls, or any hazardous or toxic
constituent thereof and includes, but is not limited to, these terms as defined
in Environmental, Health or Safety Requirements of Law.

     

    “Contingent
Obligation” of a Person means any agreement, undertaking or arrangement
by which such Person assumes, guarantees, endorses, contingently agrees to
purchase or provide funds for the payment of, or otherwise becomes or is
contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take or pay contract or the obligations of any such Person as general
partner of a partnership with respect to the liabilities of the
partnership.

     

    “Control Agreements”
means those control agreements, in form and substance acceptable to Agent, among
Operator or Borrower, as applicable account holder, Agent and the applicable
securities intermediary (with respect to a Securities Account) or the Account
Bank (with respect to a Deposit Account), in form and substance reasonably
satisfactory to Agent and in any event providing to Agent “control” of such
Securities Account or Deposit Account within the meanings of Articles 8 and 9 of
the UCC, respectively.

     

    “Controlled Group”
means all members of the controlled group of corporations or other business
entities and all trades or businesses (whether or not incorporated) under common
control which, together with any Credit Party, are treated as a single employer
under Section 414 of the Internal Revenue Code.

     

    “Controlled Group
Member” means each member of the Controlled Group.

     

    “Credit Parties”
means, collectively, Borrower, the Guarantors and the Collateral Parties, and
each a “Credit
Party”.

     

    “Default” means an
event described in Article
8.

     

    “Deposit Account” has
the meaning set forth in Article 9 of the UCC.

     

    “Designated Person” is
defined in Section
5.23.

     

    “Effective Date” is
defined in Section
4.1.

     

    “Environmental, Health or
Safety Requirements of Law” means all Requirements of Law derived from or
relating to federal, state and local laws, by-laws, regulations, orders,
ordinances, rules, permits, licenses or other binding determination of any
Governmental Authority relating to or addressing the indoor or outdoor
environment, public or worker health or safety, including but not limited to
CERCLA, any other law, regulation, or order relating to any past, current,
proposed or threatened activity, event or occurrence involving any Contaminant,
including the use, Release, handling, or disposal of any Contaminant, any law,
regulation, or order relating to Remedial Action and any law, regulation, or
order relating to workplace or worker safety and health, and such Requirements
of Law as are promulgated by the specifically authorized agent or agents
responsible for administering such Requirements of Law.

     

    “Environmental
Indemnity” means that certain environmental indemnity, dated as of the
Effective Date, among each Collateral Party in favor of Agent, as amended,
amended and restated, supplemented and/or otherwise modified and in effect from
time to time.

     

    “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time,
and any rule or regulation issued thereunder.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

     

    “ERISA Event”
means:

     

    (a)           a
Reportable Event with respect to a Pension Plan;

     

    (b)           a
withdrawal by any Controlled Group Member from a Pension Plan subject to
Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of
ERISA;

     

    (c)           a
complete or partial withdrawal by any Controlled Group Member from a
Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization;

     

    (d)           the
filing of a notice of intent to terminate, the treatment of a Plan amendment as
a termination under Sections 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC or a similar foreign governmental authority to terminate
a Pension Plan, Foreign Pension Plan or Multiemployer Plan;

     

    (e)           an
event or condition which constitutes grounds under Section 4042 of ERISA,
or a similar provision under the laws of a foreign jurisdiction, for the
termination of, or the appointment of a trustee to administer, any Pension Plan,
Foreign Pension Plan or Multiemployer Plan;

     

    (f)         
  the imposition of any liability under Title IV of ERISA, other than
for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon
any Controlled Group Member; or

     

    (g)           any
event occurring in a foreign jurisdiction similar to the events described in
clause (a)
through clause
(f) above.

     

    “Estoppel” means each
“Lease Estoppel Certificate and Agreement” between each landlord of a Mortgaged
Property and Agent.

     

    “Executive Orders” is
defined in Section
5.23.

     

    “Excess Cash Flow”
means for each Excess Cash Flow Period, with respect to Borrower and
Operator:

     

    (a)           Net
Income; plus

     

    (b)           depreciation
expense and amortization expense; minus

     

    (c)           Cash
Capital Expenditures (including capital expenditures required to be reserved for
in the CME Reserve pursuant to Section 7.3); minus

     

    (d)           Cash
Interest Expense.

     

    For the
avoidance of doubt, any Net Proceeds of Sale or Insurance Proceeds received by
Operator or Borrower and required to be applied to prepay the Loans pursuant to
Sections 2.3(a)
and 2.3(b)
shall be paid directly to Agent to be applied in accordance with Section 2.5 and shall
not be available to Borrower or Operator for any other uses.

     

    “Excess Cash Flow
Determination Date” means the date that the Excess Cash Flow with respect
to an .Excess Cash Flow Period is determined by Borrower or
Operator.  Each Excess Cash Flow Determination Date shall in no event
be later than one (1) Business Day prior to the delivery of the monthly
financial statements for the applicable Excess Cash Flow Period in accordance
with Section
6.1(d).

     

    “Excess Cash Flow
Period” means each calendar month during the term of this Agreement;
provided that
the first Excess Cash Flow Period following the Effective Date shall begin on
the Effective Date.

     

    “Existing Card Rooms”
is defined in the recitals hereto.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

     

    “Extended Maturity
Date” means the date that is one year after the Initial Maturity
Date.

     

    “Extension Effective
Date” is defined in Section
2.2.

     

    “Extension Exercise
Date” is defined in Section
2.2.

     

    “Extension Fee” is
defined in Section
11.13.

     

    “Extension Notice”
means an irrevocable notice signed by the Chief Financial Officer of Borrower in
the form of Exhibit
H.

     

    “Extension Option” is
defined in Section
2.2.

     

    “Facility Commitment”
means the aggregate of the Commitments, being Five Million Seventy Thousand
United States Dollars (US$5,070,000) as of the Effective Date.

     

    “Federal Funds Effective
Rate” means, for any day, an interest rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 11:00 a.m. (New York, New York time)
on such day on such transactions received by Agent from three Federal funds
brokers of recognized standing selected by Agent in its sole
discretion.

     

    “Federal Taxes” is
defined in Section
7.1(a).

     

    “Fiscal Quarter”
means, with respect to a Person, a fiscal quarter of that Person.

     

    “Fiscal Year” means,
with respect to a Person, a fiscal year of that Person.

     

    “Foreign Employee Benefit
Plan” means any “employee benefit plan” (as such term is defined in
Section 3(3) of ERISA) which is sponsored or maintained by any Controlled
Group Member or to which any Controlled Group Member contributes or has an
obligation to contribute, but which is not covered by ERISA pursuant to
Section 4(b)(4) of ERISA.

     

    “Foreign Pension Plan”
means any Foreign Employer Benefit Plan which under applicable local law is
required to be funded through a trust or other funding vehicle.

     

    “Fortress” means
Fortress Credit Corp., a Delaware corporation, in its individual capacity, and
its successors and assigns.

     

    “Fund” means any
Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans of the type
contemplated by this Agreement and similar extensions of credit in the ordinary
course of its business.

     

    “Funded Indebtedness”
means, at any time with respect to any Person, the aggregate US Dollar amount of
Indebtedness of such Person which has actually been funded and is outstanding at
such time, whether or not such amount is due or payable at such
time.  “Funded Indebtedness” shall include all
Obligations.

     

    “GAAP” means the
generally accepted accounting principles (in the United States) set forth in the
opinions and pronouncements of the Accounting Principles Board, the American
Institute of Chartered Accountants and the Financial Accounting Standards Board,
or such other statements by such other entity as may be in general used by
significant segments of the accounting profession, as the same may be amended
from time to time.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    “Gaming Authority”
means any governmental agency, authority, board, bureau, commission, department,
office or instrumentality of any nature whatsoever of the United States federal
government, any state or city or other political subdivision or otherwise,
whether now or hereafter in existence, or any officer or official thereof, in
each case, with licensing, permit or regulatory authority over gambling, gaming
or Casino activities, including, without limitation, the WSGC.

     

    “Gaming Laws” means
all laws, rules, regulations, orders, decisions, determinations, judgments,
accords and decrees of all Gaming Authorities, as in effect from time to time,
including without limitation the policies, interpretations and administration
thereof by such Gaming Authorities.

     

    “Gaming License”
means, in any jurisdiction in which Borrower or any of its Affiliates conducts
any Casino or gaming business or activities, any license, permit, finding of
suitability, consent, approval or other authorization to conduct gaming
activities that is granted or issued by the applicable Gaming
Authorities.

     

    “Gaming Taxes” is
defined in Section
7.1(a).

     

    “Governmental
Authority” means any nation or government, any federal, state, province,
territory, regional, local or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

     

    “Gross Revenues”
means, with reference to any New Card Room for any period, without duplication,
all rents, revenues, issues, profits, deposits, proceeds of business
interruption or rent loss insurance, all other payments actually received, and
other types of income accrued in accordance with GAAP, and all other
consideration from any source whatsoever received by or for the benefit of any
Credit Party in connection with the ownership and operation of the New Card
Rooms, and before deducting any costs or expenses, and including without
limitation all gross gambling receipts and gross sales reported by Operator on
the House-Banked Card Room Reports, Punch Board/Pull-Tab Reports and Activity
Reports required to be maintained by or submitted to the WSGC from time to
time.  “Gross Revenues” shall not include (a) non-recurring capital
events, (b) the proceeds of any financing; or (c) match play
coupons.

     

    “Guarantors” means NG
Washington and Operator, in their respective capacities as a guarantor of the
Obligations pursuant to the Guaranty.

     

    “Guaranty” means that
certain full-recourse guaranty, dated as of the Effective Date, among each
Guarantor and in favor of Agent, in substantially the form of Exhibit I attached
hereto, as amended, amended and restated, supplemented and/or otherwise modified
and in effect from time to time.

     

    “Highest Lawful Rate”
means, with respect to any Lender and on any day, the maximum non-usurious rate
of interest, if any, that may be contracted for, charged, or received on that
day under the laws applicable to such Lender.

     

    “Indebtedness” of a
Person means such Person’s:

     

    (a)           obligations
for borrowed money;

     

    (b)           obligations
representing the deferred purchase price of Property or services (other than
accounts payable arising in the ordinary course of such Person’s business
payable on terms customary in the trade);

     

    (c)           obligations,
whether or not assumed, secured by Liens or payable out of the proceeds or
production from Property now or hereafter owned or acquired by such
Person;

     

    (d)           obligations
which are evidenced by notes, acceptances, or other instruments;

     

    (e)           obligations
of such Person to purchase securities or other Property arising out of or in
connection with the sale of the same or substantially similar securities or
Property;

     

    (f)      
     Capitalized Lease Obligations;

     

    (g)           all
preferred stock subject to mandatory redemption (upon the occurrence of any
contingency or otherwise);

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

     

    (h)          any
other obligation for borrowed money or other financial accommodation which in
accordance with GAAP would be shown as a liability on the consolidated balance
sheet of such Person;

     

    (i)           obligations
with regard to Letters of Credit;

     

    (j)           obligations
with respect to Rate Management Transactions; and

     

    (i)           all
Contingent Obligations with respect to any of the foregoing.

     

    “Initial Insurance Reserve
Deposit Amount” is defined in Section
7.2(b).

     

    “Initial Maturity
Date” means the second anniversary of the Effective Date.

     

    “Initial Tax Reserve Deposit
Amount” is defined in Section
7.1(b).

     

    “Insurance Proceeds”
means the proceeds of a claim under an insurance policy on account of a Property
Loss Event.

     

    “Insurance Reserve Required
Minimum Balance” is defined in Section
7.2(c).

     

    “Internal Revenue
Code” means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified form time to time.

     

    “Interest Payment
Date” means the first Business Day of each calendar month.

     

    “Insurance Reserve” is
defined in Section
7.2(a).

     

    “Investment” of a
Person means any:

     

    (a)           loan,
advance (other than commission, travel and similar advances to officers and
employees made in the Ordinary Course of Business), extension of credit (other
than accounts receivable arising in the Ordinary Course of Business on terms
customary in the trade) or contribution of capital by such Person;

     

    (b)           purchase
or other acquisition of Securities or of a beneficial interest in
Securities;

     

    (c)           Deposit
Accounts and certificates of deposit owned by such Person; and

     

    (d)           structured
notes, derivative financial instruments and other similar instruments or
contracts owned by  such Person.

     

    The
amount of any Investment shall be the original cost of such Investment, plus the cost of all
additions thereto minus the amount of
any return of capital or principal to the extent such return is in cash with
respect to such Investment without any adjustments for increases or decreases in
value or write-ups, write-downs or write-offs with respect to such
Investment.

     

    “Knowledge” (and the
related term “Know”) means, with
respect to any Person’s knowledge, the knowledge of any Authorized Officer of
such Person and, with respect to environmental matters, the knowledge of the
Chief Operating Officer of such Person.

     

    “Lease” means any
lease, sublease or other rental or occupancy agreement with respect to a Real
Property or any portion thereof.

     

    “Lenders” means the
lending institutions listed on the signature pages of this Agreement and their
respective successors and assigns.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

     

    “Lending Installation”
means, with respect to a Lender or Agent, the office, branch, Subsidiary or
Affiliate of such Lender or Agent listed on the signature pages hereof or on a
Schedule or otherwise selected by such Lender or Agent pursuant to Section
2.15.

     

    “Letter of Credit” of
a Person means a letter of credit or similar instrument which is issued upon the
application of such Person or upon which such Person is an account party or for
which such Person is in any way liable.

     

    “Liabilities and
Costs” means all liabilities, obligations, responsibilities, losses,
damages, punitive damages, economic damages, consequential damages, treble
damages, costs and expenses (including, without limitation, attorney, expert and
consulting fees and costs and fees associated with any investigation,
feasibility or Remedial Action studies), fines, penalties and monetary
sanctions, interest, direct or indirect, known or unknown, absolute or
contingent, past, present or future, including interest, if any, thereon,
including, without limitation, those arising from personal injury, death,
intentional, willful or wanton injury, damage or threat to the environment,
natural resources or public health or welfare.

     

    “LIBOR” means, with
respect to any calendar month or any other period, the higher of:

     

    (a)           the
LIBOR Minimum; and

     

    (b)           the
British Bankers’ Association London Interbank Offered Rate for US Dollars
applicable to such calendar month (or any other period comparable to such
calendar month) displayed on the appropriate page of Reuters Screen LIBOR01 at
or about 11:00 a.m. (London, England time) two (2) Business Days prior to the
first day of such calendar month; provided that, if
such rate shall cease to be available from such source, LIBOR shall be
determined from such financial reporting service or other information source as
shall be reasonably determined by Agent for the applicable principal amount on
such date of determination.

     

    “LIBOR Minimum” means
two percent (2.0%) per annum.

     

    “Lien” means any lien
(statutory or other), mortgage, pledge, hypothecation,
assignment,  security interest, charge, deposit arrangement,
encumbrance or preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or
other title retention agreement).

     

    “Liquor Authorities”
means, in any jurisdiction in which Borrower or any of its Affiliates sells and
distributes alcoholic beverages, the applicable alcoholic beverage commission or
other Governmental Authority responsible for interpreting, administering and
enforcing the Liquor Laws, including, without limitation, the
WSLCB.

     

    “Liquor Laws” means
the laws, rules, regulations and orders applicable to or involving the sale or
distribution of liquor by Borrower or any of its Affiliates in any jurisdiction,
as in effect from time to time, including the policies, interpretations and
administration thereof by the applicable Liquor Authorities.

     

    “Liquor License”
means, in any jurisdiction in which Borrower or any of its Affiliates sells or
distributes liquor, any license, permit or other authorization to sell or
distribute liquor that is granted or issued by the applicable Liquor
Authorities.

     

    “Lists” is defined in
Section
5.23.

     

    “Loans” means the term
loans borrowed or to be borrowed under the Loan Facility in an aggregate amount
not to exceed the Facility Commitment, or the principal amount outstanding from
time to time of such term loans, as the context requires.

     

    “Loan Documents” means
this Agreement and the Notes issued pursuant to this Agreement, the Collateral
Documents, the Guaranty, the Environmental Indemnity, the Parent Expenses
Agreement and any and all agreements, contracts, promissory notes, security
agreements, assignments, subordination agreements, leases, guaranties,
instruments, letters of credit, letter of credit agreements, certificates and
other documents now and hereafter existing between any of Agent and Lenders, on
the one hand, and any Credit Party, on the other hand, executed and/or delivered
pursuant to this Agreement or any other Loan Documents, in each case as amended,
amended and restated, supplemented and/or otherwise modified and in effect from
time to time.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

     

    “Loan Facility” means
the term loan facility made available by Lenders to Borrower pursuant to Section
2.1.

     

    “Management Agreement”
means that certain agreement dated as of or prior to the Effective Date pursuant
to which the Service Supplier agrees to manage the New Card Rooms on behalf of
Operator, as amended, amended and restated, supplemented and/or otherwise
modified, or replaced, and in effect from time to time.

     

    “Margin Stock” means
“margin stock” as such term is defined in Regulation U.

     

    “Material Adverse
Change” and “Material Adverse
Effect” mean, respectively, a material adverse change in, or a material
adverse effect upon:

     

    (a)           the
business, Property, condition (financial or otherwise), or results of operations
of the Operator individually or the Credit Parties taken as a
whole;

     

    (b)           the
ability of any Credit Party to perform their respective obligations under the
Loan Documents; or

     

    (c)           the
validity or enforceability of any of the Loan Documents or the rights or
remedies of Agent or Lenders thereunder (including, without limitation, the
perfection or priority of any Lien granted in favor of Agent pursuant to any
Collateral Document), but excluding any invalidity or unenforceability of the
same resulting from the act or omission of Agent or any Lender.

     

    “Material
Indebtedness” means Indebtedness in an outstanding principal amount of
US$100,000 or more in the aggregate (or the equivalent thereof in any currency
other than US Dollars).

     

    “Material Indebtedness
Agreement” means any agreement under which any Material Indebtedness was
created or is governed or which provides for the incurrence of Indebtedness in
an amount which would constitute Material Indebtedness (whether or not an amount
of Indebtedness constituting Material Indebtedness is outstanding
thereunder).

     

    “Moody’s” means
Moody’s Investors Service, Inc. or any successor thereto.

     

    “Mortgaged Properties”
has the meaning assigned to it on Schedule 1.1.

     

    “Mortgages” means each
“Leasehold Deed of Trust, Assignment of Leases and Rents, Security Agreement and
Fixture Filing” with respect to each Mortgaged Property from Operator (as
grantor), Lawyers Title Insurance Corporation (as trustee) and Agent (as
beneficiary), and all other mortgages, debentures, deeds of trust, leasehold
mortgages, leaseholder deeds of trust, collateral assignments of leases, or
other real estate security documents delivered by any Collateral Subsidiary to
Agent on behalf of itself and Lenders or any nominee on behalf of Agent and
Lenders with respect to the Mortgaged Properties, all as required by, and in
form and substance satisfactory to, Agent.

     

    “Multiemployer Plan”
means a “multiemployer plan” as defined in Section 4001(a)(3)
of  ERISA which is, or within the immediately preceding six (6) years
was, contributed to by any Credit Party or any Controlled Group
Member.

     

    “Net Cash Proceeds of
Sale” means, without duplication, proceeds received by Operator in cash
and cash equivalents readily convertible into cash (including Cash Equivalent
Investments), and such proceeds of any notes received as consideration of any
other non-cash consideration) from the sale, assignment (but not collateral
assignment) or other disposition of any portion of any Property of Operator, net
of (a) reasonable fees, costs and expenses directly related to such sale,
assignment or other disposition (other than those payable to Borrower or an
Affiliate thereof), in each case only to the extent approved in advance by
Agent, and (b) taxes paid or payable as a result thereof or any tax
distributions resulting therefrom.

     

    “Net Income” means,
with reference to any Card Room for any period:

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

     

    (a)           Gross
Revenues, minus

     

    (b)           Operating
Expenses.

     

    “Net Interest Expense”
means, for any period, as determined with respect to a Person, the amount equal
to: (a) total interest expense of such Person for such period, whether paid or
accrued (including the interest component of any Capitalized Lease for such
period but excluding that portion of such interest expense comprising default
interest (if any)), and in any event, including, without limitation, (i) all
bank fees, commissions, discounts and other fees and charges owed with respect
to Letters of Credit, (ii) interest payable by addition to principal or in the
form of property other than cash and any other interest expense not payable in
cash, minus (b)
any net payments received by such Person during such period as interest income
received in respect of its investments in cash, determined in accordance with
GAAP.

     

    “New Card Rooms” is
defined in the recitals hereto.

     

    “NG Washington” is
defined in the recitals hereto.

     

    “Note” is defined in
Section 2.12(d).

     

    “Note Issue Date”
means the date on which Borrower shall request a Loan hereunder, evidenced by a
Note.

     

    “Note Issue Notice” is
defined in Section
2.8.

     

    “NPL” is defined in
Section 5.17(E).

     

    “Obligations” means
all unpaid principal in respect of and accrued and unpaid interest on the Loan,
all accrued and unpaid fees and all expenses, reimbursements, indemnities
(including with respect to Taxes) and other obligations of each Credit Party to
Lenders or to any Lender, Agent or any indemnified party arising under the Loan
Documents.  The term includes, without limitation, all interest,
charges, expenses, fees (including attorneys’ fees and disbursements) and any
other sum chargeable to any Credit Party under this Agreement or under any other
Loan Document.  For the avoidance of doubt, the Obligations of Parent
are as stipulated in the Pledge Agreement and the Environmental
Indemnity.

     

    “Off-Balance Sheet
Liability” of a Person means (i) any repurchase obligation or
liability of such Person with respect to accounts or notes receivable sold by
such Person, (ii) any liability under any Sale and Leaseback Transaction
which is not a Capitalized Lease, (iii) any liability under any so-called
“synthetic lease” transaction entered into by such Person, or (iv) any
obligation arising with respect to any other transaction which is the functional
equivalent of or takes the place of borrowing but which does not constitute a
liability on the balance sheets of such Person.

     

    “OFAC” is defined in
Section
5.23.

     

    “OFAC Laws and
Regulations” is defined in Section
5.23.

     

    “Operator” is defined
in the recitals hereto.

     

    “Operating Expenses”
means, with reference to any New Card Room for any period, the following
expenses incurred by Operator necessary for the operation of the New Card Rooms
and paid in cash or cash equivalents, without duplication:

     

    (a)           salaries
and wages of Persons working in the New Card Rooms;

     

    (b)           cash
prizes paid out and the cost of all merchandise awarded as prizes in the New
Card Rooms;

     

    (c)           accrued
and deferred prizes for progressive jackpot contests; provided that prizes
shall be first funded by player contributions and, to the extent there are no
player contributions remaining in the applicable progressive jackpot account,
seed money funded by Operator;

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

     

    (e)           material
and supplies for the New Card Rooms;

     

    (f)        
   Real Property rental or lease payments in respect of the New
Card Rooms;

     

    (g)           utilities
payments with respect to the New Card Rooms;

     

    (h)           repairs
to and maintenance of the New Card Rooms which are not Capital
Expenditures;

     

    (i)        
   interest on installment contract purchases for the New
Card Rooms;

     

    (j)        
   insurance (including insurance required to be maintained under
this Agreement and reserved for in the Insurance Reserve pursuant to Section 7.2), and
bonding in respect of the New Card Rooms ;

     

    (k)           advertising
and marketing including busing and transportation of patrons to the New Card
Rooms;

     

    (l)       
    Permitted Management Fees;

     

    (m)          Permitted
Management Expenses;

     

    (n)           reasonable
fees of outside accountants, consultants and attorneys;

     

    (o)           costs
to purchase security equipment installed in the New Card Rooms;

     

    (p)           lease
payments for furniture, fixtures and equipment in the New Card
Rooms;

     

    (q)           trash
removal;

     

    (r)           costs
incurred in complying with federal, state, or local laws or regulations
(including Gaming and Liquor Laws);

     

    (s)           Taxes
(including Reserved Taxes required to be reserved for in the Tax Reserve
pursuant to Section
7.1);

     

    (t)        
   any other expenses incurred with the prior consent of Agent
(acting in its sole discretion); and

     

    (u)           additional
operating expenses to the extent (and only to the extent) required to be
included in this definition in order to comply with GAAP.

     

    “Operating Lease” of a
Person means any lease of Property (other than a Capitalized Lease) by such
Person as lessee which has an original term (including any required renewals and
any renewals effective at the option of the lessor) of one year or
more.

     

    “Operating Lease
Obligations” of a Person means, as at any date of determination, the
amount obtained by aggregating the present values, determined in the case of
each particular Operating Lease by applying a discount rate (which discount rate
shall equal the discount rate which would be applied under GAAP if such
Operating Lease were a Capitalized Lease) from the date on which each fixed
lease payment is due under such Operating Lease to such date of determination,
of all fixed lease payments due under all Operating Leases.

     

    “Ordinary Course of
Business” means, in respect of any transaction entered into by any
Person, the ordinary course of such Person’s business, as conducted by any such
person in accordance with past practice and undertaken by such Person in good
faith and not for purposes of evading any covenant or restriction binding on
such Person in any Loan Document.

     

    “Paid In Full”, “Pay In Full” and
“Payment In
Full” means, with respect to the Obligations (other than, as of any date
of payment, Obligations which are contingent and unliquidated and not then due
and owing and which pursuant hereto, survive the making and repayment of the
Loan and the termination of the Commitments hereunder), the indefeasible payment
in full in cash of such Obligations.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    “Parent” is defined in
the recitals hereto.

     

    “Parent Expenses
Agreement” means that certain agreement dated as of the Effective Date
among Parent, Operator and Agent pursuant to which Parent agrees to subordinate
its right to receive management fees and be reimbursed for out-of-pocket fees,
costs and expenses incurred on behalf of Operator to the Liens granted in favor
of Agent for itself and the Lenders pursuant to the Collateral Documents (as
such agreement may be amended, amended and restated, supplemented and/or
otherwise modified, or replaced, and in effect from time to time).

     

     “Participants” is
defined in Section
13.2(a).

     

    “Participation
Register” is defined in Section
13.2(d).

     

    “PBGC” means the
Pension Benefit Guaranty Corporation, or any successor thereto.

     

    “Pension Plan” means
any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
either Section 302 or Title IV of ERISA and is sponsored or maintained by
any any Credit Party or any Controlled Group Member or to which any Credit Party
or any Controlled Group Member contributes or has an obligation to contribute,
or in the case of a multiple employer or other plan as described in
Section 4064(a) of ERISA has made contributions at any time during the
immediately preceding five (5) plan years.

     

    “Permitted Liens”
means those Liens permitted to be created, incurred or suffered to exist in
respect of or on the Property of either Collateral Subsidiary under Section
6.15.

     

    “Permitted Management
Expenses” is defined in Section
6.25(b).

     

    “Permitted Management
Fees” means, with reference to any calendar month, management fees paid
during such period to Parent under the Management Agreement in compliance with
Section
6.25(a).

     

    “Permits” means any
permit, approval, authorization, license (including, without limitation, any
Gaming License and Liquor License), variance, exemption, no-action letter or
permission required from a Governmental Authority under an applicable
Requirement of Law.

     

    “Person” means any
natural person, corporation, firm, joint venture, partnership, limited liability
company, association, enterprise, trust or other entity or organization, or any
government or political subdivision or any agency, department or instrumentality
thereof.

     

    “Plan” means an
“employee benefit plan” as defined in Section 3(3) of ERISA as to which any
Credit Party or any Controlled Group Member may have any liability.

     

    “Pledge Agreement”
means that certain pledge agreement, dated as of the Effective Date, among
Parent and Agent, in substantially the form of Exhibit A attached
hereto, as amended, amended and restated, supplemented and/or otherwise modified
and in effect from time to time.

     

    “Property” of a Person
means any and all property, whether real, personal, tangible, intangible, or
mixed, of such Person, or other assets owned, leased or operated by such
Person.  The “Property” of Operator shall include, without limitation,
the New Card Rooms.

     

    “Property Loss Event”
means (a) any loss of or damage to any Property of Operator that results in a
claim to proceeds of insurance or (b) any condemnation or other taking of any
Property of Operator, including in each case the Purchased Assets.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

     

    “Pro Rata Share”
means, with respect to all matters relating to any Lender in relation to the
Loans and from time to time, as the context requires (a) the percentage obtained
by dividing
(i) the aggregate outstanding principal amount of the Loans held by
such Lender, by
(ii) the outstanding principal balance of the Loans held by all Lenders, or
(b) the principal amount outstanding of the Loans held by any Lender (including,
without limitation, as referenced in the Notes), and as any such percentages or
amounts may be adjusted as a result of any assignment that has become effective
pursuant to Section
13.3.  The Pro Rata Shares of the Lenders as of the date of
this Agreement are set forth on Schedule L.

     

    “Purchase Agreement Closing
Date” means a “Closing Date”, as defined in the Asset Purchase
Agreement.

     

    “Purchased Assets” is
defined in the recitals hereto.

     

    “Rate Management
Transaction” means any transaction (including an agreement with respect
thereto) which is a rate swap, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction, currency option
or any other similar transaction (including any option with respect to any of
these transactions) or any combination thereof, whether linked to one or more
interest rates, foreign currencies, commodity prices, equity prices or other
financial measures.

     

    “Real Property” means,
with respect to any Person, all of such Person’s present and future right, title
and interest (including, without limitation, any leasehold estate) in real
property.

     

    “Real Property Taxes”
is defined in Section
7.1(a).

     

    “Receiver” is defined
in the recitals hereto.

     

    “Register” is defined
in Section
13.3(g).

     

    “Registered Loan” is
defined in Section
13.3(g).

     

    “Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System as from
time to time in effect and any successor or other regulation or official
interpretation of said Board of Governors relating to the extension of credit by
banks for the purpose of purchasing or carrying margin stocks applicable to
member banks of the Federal Reserve System.

     

    “Regulation X” means
Regulation X of the Federal Reserve Board as in effect from time to
time.

     

    “Release” means any
active or passive release, spill, emission, leaking, pumping, injection,
deposit, disposal, pouring, dumping, abandonment, discards of barrels,
containers or other receptacles, including the active or passive discharge,
dispersal, leaching or migration into the indoor or outdoor environment or into
or out of any Property.

     

    “Remedial Action”
means actions required to (a) clean up, remove, treat or in any other way
address Contaminants in the indoor or outdoor environment; (b) prevent the
Release or threat of Release or minimize the further Release of Contaminants; or
(c) investigate and determine if a remedial or other response is needed and
to design such a response and post-remedial investigation, monitoring, operation
and maintenance and care.

     

    “Repair Plan” is
defined in Section
2.3(b).

     

    “Repayment Fee” is
defined in Section
2.7.

     

    “Reportable Event”
means a reportable event as defined in Section 4043 of ERISA and the
regulations issued under such section, with respect to a Plan, excluding,
however, such events as to which the PBGC has by regulation waived the
requirement of Section 4043(a) of ERISA that it be notified within thirty
(30) days after the occurrence of such event, provided, however, that a failure
to meet the minimum funding standard of Section 412 of the Internal Revenue
Code and of Section 302 of ERISA shall be a Reportable Event regardless of
the issuance of any such waiver of the notice requirement in accordance with
either Section 4043(a) of ERISA or Section 412(c) of the Internal
Revenue Code.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

     

    “Reports” is defined
in Section
10.6(c).

     

    “Required Lenders”
means:

     

    (a)           if
there is no Loan then outstanding, a Lender or Lenders whose Commitments
aggregate more than fifty percent (50%) of the Facility Commitment (or, if the
Facility Commitment has been reduced to zero, aggregated more than fifty percent
(50%) of the Facility Commitment immediately prior to the reduction);
and

     

    (b)           at
any other time, a Lender or Lenders whose Pro Rata Share in the Loan then
outstanding is more than fifty percent (50%).

     

    “Requirements of Law”
means, as to any Person, the charter and bylaws or other organizational or
governing documents of such Person, and any law, rule or regulation, or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject including, without
limitation, the Internal Revenue Code, the Securities Act, the Securities
Exchange Act, Regulation U, Regulation X, ERISA, the Fair Labor Standards Act
and any similar statute of any foreign government or any political subdivision
thereof, and any certificate of occupancy, zoning ordinance, building, or land
use requirement or Permit or labor or employment rule or regulation, including
Environmental, Health or Safety Requirements of Law.

     

    “Reserved Taxes” is
defined in Section
7.1(a).

     

    “Reserves” means,
collectively, the Tax Reserve, the Insurance Reserve and the CME
Reserve.

     

    “Returns” is defined
in Section
5.6.

     

    “Rogers’ Note” is
defined in the recitals hereto.

     

    “Rogers’ Waiver” means
that certain Waiver, Amendment and Release from Louise R. Rogers in favor of
Parent, and certain of Parent’s Affiliates (including NG Washington), dated as
of July 19, 2010, with respect to the Rogers’ Note and the loan and security
documentation executed in connection therewith.

     

    “S&P” means
Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc.

     

    “Sale and Leaseback
Transaction” means, with respect to any Person, any transaction(s)
whereby such Person sells or otherwise transfers Property used or useful in its
business, and, following such sale or transfer, rents or leases such Property or
other property which it intends to use for substantially the same purpose or
purposes as prior to such sale and transfer.

     

    “Securities” means any
stock, shares, voting trust certificates, bonds, debentures, notes or other
evidences of Indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or any certificates of interest, shares, or participation in
temporary or interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire any of the foregoing, but shall not
include any evidence of the Obligations.

     

    “Securities
Account” has
the meaning set forth in Article 8 of the UCC.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     

    “Securities Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

     

    “Security Agreement”
means that certain pledge and security agreement entered into by Borrower and
Operator in favor of Agent in substantially the form and substance of Exhibit B attached
hereto, as amended, amended and restated, supplemented and/or otherwise modified
and in effect from time to time.

     

    “Service Supplier”
means Nevada Gold & Casinos, Inc. or another entity acceptable to Agent in
its sole discretion, in each case only if such entity is and remains licensed as
a service supplier by the WSGC.

     

    “Single Employer Plan”
means a Plan maintained by any Credit Party or any Controlled Group Member
employees of any Credit Party or any Controlled Group Member.

     

    “SNDA” means, with
respect to each Mortgaged Property, each “Subordination, Non-disturbance and
Attornment Agreement” among each and every fee mortgagee and fee mortgagor of a
Mortgaged Property, and the Operator (as tenant of such Mortgaged
Property).

     

    “Solvent” means, when
used with respect to any Person, that at the time of determination:

     

    (a)           the
assets of such Person, at a fair valuation, are in excess of the total amount of
its debts (including, without limitation, contingent liabilities);
and

     

    (b)           the
present fair saleable value of its assets is greater than its probable liability
on its existing debts as such debts become absolute and matured;
and

     

    (c)           it
is then able and expects to be able to pay its debts (including, without
limitation, contingent debts and other commitments) as they mature;
and

     

    (d)           it
has capital sufficient to carry on its business as conducted and as proposed to
be conducted.

     

    For
purposes of determining whether a Person is Solvent at any time, the amount of
any contingent liability shall be computed as the amount that, in light of all
the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured
liability.

     

    “Sterling Loan
Agreement” means that certain Loan Agreement between Sterling Savings
Bank as lender and NG Washington as Borrower dated as of June 3, 2009, as
amended by that First Amendment dated as of June 12, 2009, as further amended by
that certain Change in Terms Agreement dated as of May 26, 2010..

     

    “Sterling Waiver”
means that certain Waiver, Amendment and Release from Sterling Savings Bank in
favor of NG Washington and Parent, dated as of July 20, 2010, with respect to
the Sterling Loan Agreement and the documentation executed in connection
therewith.

     

    “Subsidiary” of a
Person means:

     

    (a)           any
corporation more than fifty percent (50%) of the outstanding securities having
ordinary voting power of which shall at the time be owned or controlled,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries; or

     

    (b)           any
partnership, limited liability company, association, joint venture or similar
business organization more than fifth percent (50%) of the ownership interests
having ordinary voting power of which shall at the time be so owned or
controlled.  Unless otherwise expressly provided, all references
herein to a “Subsidiary” shall mean a Subsidiary of Borrower.

     

    “Syndication” is
defined in Section
15.4.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    “Taxes” means any and
all present or future income, franchise, sales, use, excise, real and personal
property, stamp or other taxes (including, without limitation, gaming taxes),
duties, levies, imposts, fees, assessments, deductions, charges or withholdings,
and any and all liabilities with respect to the foregoing and restrictions or
other charges of whatever nature now or hereafter imposed, levied, collected,
withheld or assessed by any jurisdiction (whether pursuant to federal, state,
local or foreign law) or by any political subdivision or taxing authority
thereof or therein, and all interest, penalties or additional amounts payable in
respect thereof.

     

    “Tax Reserve” is
defined in Section
7.1(a).

     

    “Tax Reserve Required Minimum
Balance” is defined in Section
7.1(e).

     

    “Three-Month Annualized
Adjusted EBITDA” means, for any Person, (a) Adjusted EBITDA for the three
(3) calendar month period ending with the last day of the last calendar month
for which financial statements have been delivered to Agent by Borrower pursuant
to Section 6.1,
multiplied by
(b) four (4).

     

    “Threshold Amount” is
defined in Section 7.2(b).

     

    “Title Policies” means
a mortgagee’s title insurance policy or policies:

     

    (a)           issued
by one or more title companies reasonably satisfactory to Agent which policy or
policies shall, if available, be in form ALTA 1992 or ALTA 2006 (with waiver of
arbitration provisions and creditor’s rights exclusion deleted by endorsement),
naming Agent as the insured party for benefit of the Lenders;

     

    (b)           insuring
the Mortgages as being first and prior liens upon the Mortgaged
Properties;

     

    (c)           showing
no encumbrances against the Mortgaged Properties (whether junior or superior to
the Mortgages) which are not acceptable to Agent other than Permitted
Liens;

     

    (d)           in
an amount acceptable to Agent; and

     

    (e)           otherwise
in form and content reasonably acceptable to Agent.

     

    Such
title insurance policies shall include, without limitation, the following
endorsements or affirmative coverages in form and substance reasonably
acceptable to Agent, to the extent available in the jurisdiction in which the
Land is located and to the extent applicable in Agent’s reasonable discretion:
variable rate endorsement; leasehold; environmental; comprehensive endorsement;
location; creditor’s rights; fairway; zoning (ALTA 3.1 with parking added)
endorsement; first loss, last dollar and tie-in endorsement; access coverage;
separate tax parcel coverage; contiguity (if applicable) coverage; and such
other endorsements as Agent shall reasonably require in order to provide
insurance against specific risks identified by Agent in connection with the
Mortgaged Properties.

     

    “Transferee” is
defined in Section
13.6.

     

    “TTM Adjusted EBITDA”
means, at any time with respect to any Person, Adjusted EBITDA of such Person
for the twelve (12) month period then ended.

     

    “TTM EBITDAM” means at
any time with respect to NG Washington, Adjusted EBITDA plus management fees
paid in cash by NG Washington to the then appointed service supplier with
respect to the operations of the Existing Card Rooms, for the twelve (12) month
period then ended.

     

    “Unapproved CapEx
Budget” is defined in Section
6.1(b).

     

    “Unfunded Liabilities”
means the amount (if any) by which the present value of all vested and unvested
accrued benefits under all Single Employer Plans exceeds the fair market value
of all such Plan assets allocable to such benefits, all determined as of the
then most recent valuation date for such Plans using PBGC actuarial assumptions
for single employer plan terminations.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

     

    “UCC” means the
Uniform Commercial Code as enacted in the State of New York, as it may be
amended from time to time; provided, however, in
the event that, by reason of mandatory provisions of law, any or all of the
creation, attachment, perfection, priority or enforcement of Agent’s or Lender's
Liens over any Collateral is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than the State of New York, the term “UCC” shall
include the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such creation, attachment,
perfection, priority or enforcement and for purposes of definitions related to
such provisions.

     

    “Unmatured Default”
means an event which but for the lapse of time or the giving of notice, or both,
would constitute a Default.

     

    “USA Patriot Act”
means the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56,
115 Stat. 272 (2001), as amended.

     

    “Voting Stock” means,
with respect to any Person, shares, securities, limited liability company
interests, general or limited partnership interests or other equivalents with
respect to any class or classes of Capital Stock of such Person entitling any
holder thereof (whether at all times or only so long as no senior class of
Capital Stock has voting power by reason of any contingency):

     

    (a)           in
the case of a corporation (or equivalent organization), to vote in the election
of members of the board of directors (or the equivalent thereof) of such
Person;

     

    (b)           in
the case of a limited liability company, to vote in the election of managers of
such Person or to bind or otherwise act as agent for such Person;

     

    (c)           in
the case of a limited partnership, to vote on the admission of the general
partner of such Person or to bind or otherwise act as agent for such Person;
or

     

    (d)           in
the case of a general partnership, to bind or otherwise act as agent for such
Person.

     

    “Wholly Owned
Subsidiary” of a Person means (i) any Subsidiary all of the
outstanding voting securities of which shall at the time be owned or controlled,
directly or indirectly, by such Person or one or more Wholly Owned Subsidiaries
of such Person, or by such Person and one or more Wholly Owned Subsidiaries of
such Person, or (ii) any partnership, limited liability company,
association, joint venture or similar business organization one hundred percent
(100%) of the ownership interests having ordinary voting power of which shall at
the time be so owned or controlled.

     

    “WSGC” is defined in
the recitals hereto.

     

    “WSLCB” means the
Washington State Liquor Control Board.

     

    Section
1.2          Accounting
Terms.  All
accounting terms not specifically defined herein shall be construed in
accordance with GAAP.  When used herein, the term “financial
statements” shall include the notes and schedules thereto.  Whenever
the term “Borrower” is used in respect of a financial covenant or a related
definition, it shall be understood to mean Borrower and its Subsidiaries on a
consolidated basis unless expressly stated otherwise or the context otherwise
requires.

     

    Section
1.3          Uniform Commercial
Code. Any terms used in this
Agreement that are defined in the UCC shall be construed and defined as set
forth in the UCC unless otherwise defined herein, provided, however, that to the
extent that the UCC is used to define any term herein and such term is defined
differently in different Divisions of the UCC, unless expressly stated otherwise
the definition of such term contained in Article 9 of the UCC shall
govern.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          21

          
            

          

        

        
           

        

      

    

    

    Section
1.4          Construction. The foregoing
definitions shall be equally applicable to both the singular and plural forms of
the terms defined.  Unless expressly stated otherwise, the terms
“include”, “includes” and “including” shall not be limiting.  The word
“will” shall be construed to have the same meaning and effect as the word
“shall”.  The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement.  The words “asset” and
“property” shall be construed to have the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights and section, subsection, clause,
subclause, schedule, annex and exhibit references herein are to this Agreement
unless expressly stated otherwise.  “On”, when used with respect to
the Mortgaged Property or any property adjacent to the Mortgaged Property, shall
mean “on, in, under, above or about”.  Any reference in this Agreement
to any Loan Document or other agreement, instrument, or document shall include
all amendments, amendments and restatements, supplements or other modifications
thereto from time to time, as applicable (subject to any restrictions on such
amendments, amendments and restatements, supplements or other modifications
thereto set forth herein).  Any reference herein to the satisfaction
or repayment in full of the Obligations shall mean the indefeasible repayment in
full in cash (or cash collateralization, if expressly permitted hereunder) of
all Obligations other than contingent indemnification
Obligations.  Any reference herein to any Person shall be construed to
include such Person’s successors and assigns.  Any reference to any
law or regulation shall refer to such law or regulation as amended,
consolidated, replaced and/or supplemented from time to time.  Any
reference to “Dollars”, “US Dollars”, “dollars”, “$” or “US$” shall mean the
lawful currency of the United States.  Any references herein or in any
other Loan Document to “Lender”, “Loan”, “Commitment”, “Borrowing”, a Loan being
“made” or “funded” (or the use of similar terminology) shall not be construed as
referencing or requiring that Agent or any Lender shall, or is required to,
actually advance monies to Borrower at any time hereunder.

     

    Section
1.5          Time
Periods.  In
this Agreement, in the computation of periods of time from a specified date to a
later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding”.  Periods of days
referred to in this Agreement shall be counted in calendar days unless Business
Days are expressly prescribed.  Any period determined hereunder by
reference to a month or months or year or years shall end on the day in the
relevant calendar month in the relevant year, if applicable, immediately
preceding the date numerically corresponding to the first day of such period,
provided that
if such period commences on the last day of a calendar month (or on a day for
which there is no numerically corresponding day in the calendar month during
which such period is to end), such period shall, unless otherwise expressly
required by the other provisions of this Agreement, end on the last day of the
calendar month. Unless otherwise specified, all references to specific times
shall mean and be a reference to such time in New York, New York.

     

    ARTICLE
2

     

    THE
CREDITS

     

    Section
2.1          Loan
Facility.

     

    (a)           Subject
to the terms and conditions hereof (including, without limitation, the
conditions precedent set forth in Section 4.1), each
Lender agrees separately (and not jointly or jointly and severally) to make its
Pro Rata Share of the Loans available to Borrower on the Effective Date and on
each subsequent Purchase Agreement Closing Date, if any.  Each
Lender’s Commitment shall expire on the calendar day after the last Purchase
Agreement Closing Date.

     

    (b)          The
outstanding Loans and all other Obligations in respect thereof shall be Paid in
Full by Borrower on the Applicable Maturity Date.

     

    (c)           No
repayment or prepayment of the Loans may be reborrowed by Borrower.

     

    Section
2.2          Extension of Loan Maturity
Date.  Borrower
may elect to extend the maturity date of the Loans from the Initial Maturity
Date to the Extended Maturity Date (the “Extension Option”) by
delivery of an Extension  Notice to Agent not more than ninety (90)
days and not less than forty five (45) days prior to the Initial Maturity Date
(the date of such delivery, the “Extension Exercise
Date”), which extension shall take effect as of the Initial Maturity
Date, subject to the satisfaction of each condition set forth in Section 4.3 in a
manner satisfactory to Agent (in its sole discretion) (the “Extension Effective
Date”).

     

    Section
2.3          Mandatory
Prepayments.

     

    (a)           If
any Credit Party at any time or from time to time makes or agrees in writing to
dispose of any Property of Operator, then (a) Borrower shall notify Agent
thereof no later than five (5) Business Days prior to such proposed disposition
(including the amount of the estimated Net Cash Proceeds of Sale to be received
by Operator or such Credit Party in respect thereof) and (b) within three (3)
Business Days after such disposition and receipt of Net Cash Proceeds of Sale,
Borrower shall, absolutely and unconditionally without notice or demand, prepay
the aggregate outstanding amount of the Loans in an amount equal to the lesser
of (i) one hundred percent (100%) of such Net Cash Proceeds of Sale payable to
or for the benefit of Operator in connection therewith, and (ii) the
Obligations.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

    

    

     

    (b)           If
Operator shall at any time or from time to time suffer a Property Loss Event,
then (a) Borrower shall notify the Agent no later than five (5) Business Days
following such Property Loss Event of such event (including the amount of the
estimated Insurance Proceeds to be received by such Credit Party in respect
thereof) and (b) within three (3) Business Days after the receipt of such
Insurance Proceeds by or on behalf of Operator (or of Agent as the loss payee
with respect thereto) in respect of any Property Loss Event, Borrower shall,
absolutely and unconditionally without notice or demand, prepay the aggregate
outstanding amount of the Loans in an amount equal to the lesser of (i) one
hundred percent (100%) of the Insurance Proceeds payable to or for the benefit
of Operator in connection therewith, and (ii) the Obligations; provided that (x) if
no Default or Unmatured Default has occurred and either (y) the Insurance
Proceeds do not exceed $25,000 and Borrower delivers a certificate of an
Authorized Officer of Operator to Agent on or prior to the date such Insurance
Proceeds are received setting forth Operator’s intention to use or commit to use
a specified amount of such proceeds to repair, replace or reinstate the affected
Property within ninety (90) days thereof, or (z) the Insurance Proceeds exceed
$25,000 and Borrower delivers to Agent a repair plan, a budget in relation
thereto, and specifies therein a period within which such repairs or
reinstatement shall be completed (collectively, a “Repair Plan”), and
Agent, following its review thereof, approves the same exercising its reasonable
discretion, the Insurance Proceeds shall not be required to be applied towards
prepayment of the Loans.  Without limiting the foregoing, upon
Borrower’s or Operator’s receipt of any Insurance Proceeds in excess of $25,000,
such proceeds shall be immediately paid over to Agent, pending Agent’s approval
of the Repair Plan.  The balance of Insurance Proceeds received and
not specified for such use in such Certificate or Repair Plan, as applicable,
shall be immediately applied to prepay the Loans, and any portion specified for
such use in such certificate or Repair Plan, as applicable, but remaining
unapplied after ninety (90) days (in the case of (y) above) or the period
specified therefor in the Repair Plan (in the case of (z) above) shall be
applied to prepay the Loans immediately upon the expiry of such
period.

     

    (c)           Subject
to Section 2.18
and beginning with the first full calendar month following the Effective Date,
to the extent that Excess Cash Flow for any Excess Cash Flow Period is greater
than $0.00, Borrower shall, one (1) Business Day after the relevant Excess Cash
Flow Determination Date, prepay the aggregate outstanding amount of the Loans in
an aggregate amount equal to 66.67% of such Excess Cash Flow and the remaining
33.33% of Excess Cash Flow shall be available to Borrower to make a permitted
distribution to Parent pursuant to Section 6.10(b); provided that, in the
event that Excess Cash Flow is less than or equal to $0.00 on a cumulative and
aggregated basis for successive Excess Cash Flow Periods, no prepayment of the
Loans by Borrower shall be required under this Section
2.3(c).  For the avoidance of doubt, neither Agent nor any
Lender shall be required to fund any negative Excess Cash Flow, whether
determined for a single Excess Cash Flow Period, for successive Excess Cash Flow
Periods on a cumulative and aggregated basis or otherwise.

     

    (d)           Subject
to Section
2.18, in the event that Borrower exercises the Extension Option in
accordance with Section 2.2, Borrower
shall, one (1) Business Day after the first Excess Cash Flow Determination Date
on or following the Extension Effective Date, prepay the Loans in an aggregate
amount equal to one hundred percent (100%) of Excess Cash Flow arising on and
after the Extension Effective Date.

     

    (e)           Upon
the occurrence and during the continuance of any Default, Borrower shall, one
(1) Business Day after each Excess Cash Flow Determination Date, prepay the
Loans in an aggregate amount equal to one hundred percent (100%) of Excess Cash
Flow arising prior to and upon the occurrence of such Default and during the
continuance of such Default.

     

    Section
2.4          Optional
Prepayments.  Borrower
may, on at least three (3) Business Days’ prior written notice to Agent, at any
time prepay, subject to the payment of any funding indemnification amounts
required by Section
3.1(a), the payment of all accrued and unpaid interest thereon and
payment of any applicable Repayment Fee pursuant to Section 2.7, but
otherwise without penalty or premium, all or part of the outstanding Loans;
provided that
any such prepayments shall be in a minimum aggregate amount of US$100,000 and
integral multiples of US$50,000 in excess thereof or, if less, the aggregate
amount outstanding of the Loans.

     

    Section
2.5          Application of
Prepayments.  Subject
to Section
9.1(d), each prepayment of the Loans made by Borrower pursuant to Section 2.3 or Section 2.4 shall be
allocated and applied as follows:

     

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Agreement

    

    
      
        
           

        

        
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    first, to funding
indemnification amounts due and payable (if any) to the Lenders under Section
3.1(a);

     

    second, to fees,
expenses and indemnification amounts then due and payable to Agent pursuant to
any of the Loan Documents;

     

    third, to fees,
expenses and indemnification amounts then due and payable to any Lender pursuant
to any of the Loan Documents (including any Repayment Fees but excluding
indemnification amounts due and payable under Section
3.1(a));

     

    fourth, ratably, to
interest then due and payable on each Lender’s Pro Rata Share of the Loans;
and

     

    fifth, ratably, to
principal of each Lender’s Pro Rata Share of the Loans.

     

    Section
2.6          Amount of the
Loans.  The
amount of the Loan made on each Purchase Agreement Closing Date, as evidenced by
Notes issued by Borrower to each Lender on such date, and as such Notes shall be
amended and restated on each Purchase Agreement Closing Date after the Effective
Date, in accordance with Section 2.8, shall be
in an aggregate principal amount equal to the Acquisition Finance Consideration
required on that Purchase Agreement Closing Date pursuant to the Asset Purchase
Agreement; provided that the
aggregate principal amount of all Loans made hereunder shall not exceed in any
event the Facility Commitment.

     

    Section
2.7          Repayment
Fee.  Borrower
shall pay Agent, for ratable account of Lenders, a repayment premium (“Repayment Fee”) on
the date of any prepayment or repayment of the Loans pursuant to Section 2.3(a), Section 2.3(e) or
Section 2.4,
calculated as follows:

     

    (a)           in
an amount equal to two percent (2.00%) of the principal amount of the Loans
prepaid or repaid if the prepayment or repayment occurs after the first
anniversary of the Effective Date and on or prior to the date that is eighteen
(18) months after the Effective Date;

     

    (b)           in
an amount equal to four percent (4.00%) of the principal amount of the Loans
prepaid or repaid if the prepayment or repayment occurs after the date that is
eighteen (18) months after the Effective Date and on or prior to the Initial
Maturity Date (irrespective of whether the Applicable Maturity Date is the
Initial Maturity Date or the Extended Maturity Date);

     

    (c)           in
an amount equal to six percent (6.00%) of the principal amount of the Loans
prepaid or repaid if the prepayment or repayment occurs after the Initial
Maturity Date and on or prior to the date that is six (6) months after the
Initial Maturity Date; and

     

    (d)           in
an amount equal to eight percent (8.00%) of the principal amount of the Loans
prepaid or repaid if the prepayment or repayment occurs (i) after the date that
is six (6) months after the Initial Maturity Date, or (ii) upon and after the
acceleration of the Loans following a Default pursuant to Section
9.1(a).

     

    Any
prepayment or repayment of the Loans occurring prior to the first anniversary of
the Effective Date, other than pursuant to Section 2.7(d)(ii),
shall not be subject to any additional fee or charge thereon (including, without
limitation, any Repayment Fee).

     

    Section
2.8          Method of Note
Issuance.  Borrower
shall deliver to Agent an irrevocable written notice in the form of Exhibit C (the “Note Issue Notice”)
not later than 12:00 p.m. (New York, New York time) at least one (1) Business
Day before each Purchase Agreement Closing Date, specifying:

     

    (a)           the
Note Issue Date;

     

    (b)           the
aggregate principal amount of the new Notes to be issued by Borrower to the
Lenders on such Note Issue Date; and

     

    (c)           all
other matters specified in the form of Note Issue Notice.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Subject
to satisfaction of each condition set forth in Section 4.2 in a
manner satisfactory to Agent (in its sole discretion) or the Required Lenders’
waiver thereof (or Agent’s waiver with the consent of the Required Lenders),
Borrower shall issue to each Lender on each Note Issue Date a Note evidencing
such Lender’s Pro Rata Share of the Loan in accordance with Borrower’s written
instructions contained in the Note Issue Notice; provided that, on
each Note Issue Date after the Effective Date, each Lender shall surrender its
existing Note to Borrower and Borrower shall issue on such Note Issue Date an
amended and restated Note evidencing the increase in the principal amount of
such Lender’s Pro Rata Share of the Loans on such Note Issue
Date.  Borrower, Agent and Lenders each agree that there will be no
actual cash proceeds of the Loans representing the Acquisition Finance
Consideration made by Lenders to Borrower.  Further, Borrower, Agent
and Lenders each acknowledge that Receiver and Buyer have agreed, pursuant to
the Asset Purchase Agreement, that no cash payment will be made to Receiver by
Buyer in respect of the Acquisition Finance Consideration.

     

    Section
2.9          Interest
Rate.  Subject
to Section 2.10
below, the Loans shall bear interest on the outstanding principal amount thereof
from and including the Note Issue Date, and the interest rate applicable to the
Loans outstanding during any calendar month shall be a per annum rate equal to
the Applicable Rate determined for such calendar month.

     

    Section
2.10        Rates Applicable After
Default; Late Charge.

     

    (a)           Default
Rate.  Upon the occurrence and during the continuance of a
Default or Unmatured Default, the Loans and all other Obligations, including
overdue interest, shall bear interest from and including the date of such
Default or Unmatured Default and thereafter at ten percent (10.00%) per annum
above the per annum rate otherwise applicable thereto hereunder.

     

    (b)           Late
Charge.  Borrower shall pay an additional charge applicable to
any amount due on, but remaining unpaid six (6) days after, the Applicable
Maturity Date, such charge equal to five percent (5.00%) per annum on such
overdue amount, such charge to begin accruing from and including such sixth
(6th) day after the Applicable Maturity Date.

     

    Section
2.11        Method of
Payment.  All
payments of the Obligations hereunder shall be made without setoff, deduction,
or counterclaim, in immediately available funds to Agent’s Account or to another
account held at the same or another Lending Installation of Agent specified in
writing by Agent to Borrower, by noon (local time) on the date when due and
shall be applied ratably by Agent among Lenders.  Each payment
delivered to Agent for the account of any Lender shall be delivered promptly by
Agent to such Lender in the same type of funds that Agent received at its
address specified pursuant to Article 14 or at any
Lending Installation specified in a notice received by Agent from such
Lender.  So long as no Default or Unmatured Default has occurred and
is continuing, (a) prepayments in respect of the Loans shall be applied in
accordance with Section 2.5, and
(b) payments applied to, and in respect of, the Loans shall be applied
ratably to the portion thereof held by each Lender as determined by its Pro Rata
Share thereof.

     

    Section
2.12        Evidence of
Indebtedness.

     

    (a)           Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the Indebtedness of Borrower to such Lender incurred
hereunder, including the amounts of principal of and interest on the Loans
payable and paid to such Lender from time to time hereunder.

     

    (b)           Agent
shall also maintain accounts in which it will record:

     

    (A)           the
amount of the Loans borrowed hereunder;

     

    (B)           the
amount of any principal of or interest on the Loans due and payable or to become
due and payable from Borrower to each Lender hereunder; and

     

    (C)           the
amount of any sum received by Agent hereunder from Borrower and each Lender’s
share thereof.

     

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Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    (c)           The
entries maintained in the accounts maintained pursuant to Sections Section
2.12(a) and Section 2.12(b) above
shall be prima facie
evidence of the existence and amounts of the Obligations therein recorded; provided, however, that the failure of Agent
or any Lender to maintain such accounts or any error therein shall not in any
manner affect the obligation of Borrower to repay the Obligations in accordance
with their terms.

     

    (d)           Each
Lender’s Pro Rata Share of the Loans shall be evidenced by a promissory note in
substantially the form of Exhibit D (as
amended, amended and restated, supplemented and/or otherwise modified and in
effect from time to time, each a “Note”).  Borrower
shall prepare, execute and deliver to such Lender such Note or Notes, as
applicable, on the relevant Note Issue Date, payable to such
Lender.  Any issuance or reissuance of, or amendment to a Note shall
not be, nor shall it be deemed to be, a discharge, rescission, extinguishment,
novation or substitution of the obligation evidenced by such Note and the Note
so issued, reissued or replaced shall continue to evidence the same obligation
and not a new obligation.

     

    Section
2.13        Interest Payment Dates;
Interest and Fee Basis.  Interest
accrued on the Loans shall be payable in arrears on each Interest Payment Date,
commencing with the first such Interest Payment Date to occur after the
Effective Date, on any date on which the Loans is prepaid, whether by
acceleration or otherwise, and on the Applicable Maturity
Date.  Interest and fees payable by Borrower hereunder shall be
calculated for actual days elapsed on the basis of a 360-day
year.  Interest shall be payable for the day the Loans is made but not
for the day of any payment thereof or thereon if payment is received prior to
4.00 p.m. (New York, New York time).  If any payment hereunder shall
become due on a day which is not a Business Day, such payment shall be made on
the next succeeding Business Day and such extension of time shall be included in
computing interest or fees, as the case may be.

     

    Section
2.14        Notification of Loans,
Interest Rates and Prepayments.  Promptly
after receipt thereof, Agent will notify each Lender of the contents of the Note
Issue Notice and any prepayment notice received by it
hereunder.  Agent will from time to time notify each Lender of the
Applicable Rate promptly upon determination of the same.

     

    Section
2.15        Lending
Installations.  Each
Lender may book its Pro Rata Share of the Loans at any Lending Installation
selected by such Lender and may change its Lending Installation from time to
time.  All terms of this Agreement shall apply to any such Lending
Installation and its Pro Rata Share of the Loans and any Notes issued hereunder
shall be deemed held by each Lender for the benefit of any such Lending
Installation.  Each Lender may, by written notice to Agent and
Borrower in accordance with Article 14, designate
replacement or additional Lending Installations through which its Pro Rata Share
of the Loans will be made by it and for whose account payments on or in respect
of the Loans are to be made.

     

    Section
2.16        Non Receipt of Funds by
Agent.  Unless
Borrower or a Lender, as the case may be, notifies Agent prior to the date on
which it is scheduled to make payment to Agent of:

     

    (A)           in
the case of a Lender, its Pro Rata Share of the Loans; or

     

    (B)           in
the case of Borrower, a payment of principal, interest or fees to Agent for the
account of Lenders,

     

    that it
does not intend to make such payment, Agent may assume that such payment has
been made. Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such
assumption.  If such Lender or the Borrower, as the case may be, has
not in fact made such payment to Agent, the recipient of such payment shall, on
demand by Agent, repay to Agent the amount so made available together with
interest thereon in respect of each day during the period commencing on the date
such amount was so made available by Agent until the date Agent recovers such
amount at a rate per annum equal to (i) in the case of payment by a Lender,
the Federal Funds Effective Rate for such day for the first three (3) days and,
thereafter, the interest rate applicable to the Loans or (ii) in the case
of payment by Borrower, the interest rate applicable to the Loans.

     

    Section
2.17        Limitation on
Interest.  Notwithstanding
any other provision herein, the aggregate interest rate charged with respect to
any of the Obligations on any day, including all charges or fees in connection
therewith deemed in the nature of interest under applicable law, shall not
exceed the Highest Lawful Rate in effect on such day.  Accordingly, if
any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess
shall be cancelled automatically and, if previously paid, shall at such Lender’s
option be applied to its Pro Rata Share of the Loans or be refunded to
Borrower.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Section
2.18        Application of Excess Cash
Flow.  Borrower
shall apply all Excess Cash Flow at any time in the following order of
priority:

     

    first, upon the
occurrence and during the continuance of any Default, in accordance with Section
2.3(e);

     

    second, to make a
distribution to Parent for the purpose set forth in Section 6.10(a) and
in accordance therewith; and

     

    third, (a) if the
Extension Option is exercised by Borrower, after the Extension Effective Date,
in accordance with Section 2.3(d), and
(b) on and prior to the Initial Maturity Date, in accordance with Section
2.3(c).

     

    ARTICLE
3

     

    YIELD
PROTECTION

     

    Section
3.1          Yield
Protection.

     

    (a)           If
any payment in respect of the Loans occurs on a date which is not an Interest
Payment Date, Borrower will indemnify each Lender for any loss or cost incurred
by it resulting therefrom, including, without limitation, any loss or cost in
liquidating or employing deposits acquired to fund or maintain its Pro Rata
Share of the Loans; provided that the
Borrower shall not be liable for indemnifying each Lender under this Section 3.1 to the
extent that such payment is made pursuant to Sections 2.3(b),
2.3(c) or 2.3(d), and/or on or
prior to the first anniversary of the Effective Date, unless such payment is
made upon and after the acceleration of the Loans following a Default pursuant
to Section
9.1(a).  For purposes of calculating amounts payable by
Borrower to each Lender under this Section 3.1(a), each
Lender shall be deemed to have funded its Pro Rata Share of the Loans at the
Applicable Rate through the purchase of a deposit in the London interbank
eurodollar market for a comparable amount and for a period beginning on the
first day of such calendar month and ending on the last day of such calendar
month, whether or not in fact that is the case or not.  Unless
otherwise provided herein, the amount specified in the written statement of any
Lender shall be payable on demand after receipt by Borrower of such written
statement

     

    (b)           A
certificate of any Lender or any applicable Lending Installation setting forth
the amount or amounts necessary to compensate such Lender or Lending
Installation or its holding company, as the case may be, as specified in Section 3.1(a), and
delivered to Borrower shall be conclusive and binding for all purposes, absent
manifest error.  Borrower shall pay such Lender or Lending
Installation or its holding company, as the case may be, the amount shown as due
on any such certificate within ten (10) days after receipt thereof.

     

    (c)           Failure
or delay on the part of any Lender or Lending Installation to demand
compensation pursuant to Section 3.1(a) shall
not constitute a waiver of such Lender’s or Lending Installation’s right to
demand such compensation, provided that
Borrower shall not be required to compensate a Lender or Lending Installation
pursuant to this Section 3.1 for any
increased costs incurred or reductions suffered more than three (3) months prior
to the date that such Lender or Lending Installation, as the case may be,
notifies Borrower of the event giving rise to such increased costs or reductions
and of such Lender’s or Lending Installation’s intention to claim compensation
therefor (except that, if the event giving rise to such increased costs or
reductions is retroactive, then the three (3) month period referred to above
shall be extended to include the period of retroactive effect
thereof).

     

    (d)           Anything
to the contrary contained herein notwithstanding, no Lender, nor any of its
participants, is required actually to acquire eurodollar deposits to fund or
otherwise match fund any Obligation as to which interest accrues at the
Applicable Rate.

     

    (e)           The
obligations of Borrower under this Section 3.1 shall
survive payment of the Obligations and termination of this
Agreement.

     

    Section
3.2          Taxes.  Borrower
hereby agrees to pay any present or future stamp, transfer, recording,
value-added or
documentary taxes and any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or under any Note or from the
execution or delivery or enforcement of  any provision of, or
otherwise with respect to, this Agreement or any Loan Document in accordance
with applicable law.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Section
3.3          [Intentionally
Omitted].

     

    ARTICLE
4

     

    CONDITIONS
PRECEDENT

     

    Section
4.1          Loans and
Closing.  This
Agreement shall become effective on the Business Day (the “Effective Date”) when
each of the following conditions shall have been satisfied in a manner
satisfactory to Agent or waived by the Required Lenders (or by Agent with the
consent of the Required Lenders):

     

    (a)           Loan
Documents.  Lenders shall not be required to make any Loan
hereunder unless Borrower has furnished to Agent with sufficient copies for
Lenders and in form and substance satisfactory to Agent:

     

    (A)           A
certificate dated the Effective Date, executed by the Secretary or Manager of
each Credit Party (as applicable) (i) attaching copies of the Constituent
Documents of such Credit Party (in the case of those of Borrower and Operator,
in form and substance acceptable to Agent), certified by the appropriate
governmental officer in its jurisdiction of organization where applicable, and
certifying that such Constituent Documents have not been amended, supplemented
or otherwise modified and are in full force and effect as of the Effective Date,
(ii)  attaching an incumbency certificate which shall identify by name and
title and bear the signatures of an Authorized Officer of the applicable Credit
Party and any other officers, managers or managing members of such Credit Party
authorized to execute and deliver the Loan Documents to which such Credit Party
is a party, upon which certificate Agent and Lenders shall be entitled to rely
until informed of any change in writing by Borrower, (iii) attaching signed
resolutions of the board of directors, members, managers or partners, or other
applicable Person, of such Credit Party, authorizing the execution and delivery
of the Loan Documents by such Credit Party and the performance of the
transactions contemplated thereby, and certifying that such resolutions have not
been amended, rescinded or otherwise modified and are in full force and effect
as of the Effective Date.

     

    (B)           A
certificate dated the Effective Date, signed by the Chief Financial Officer or
Manager of each Credit Party, stating that (i) such Credit Party, both
individually and together with its Affiliates, is Solvent and will be Solvent
after giving effect to the financing transactions contemplated under the Loan
Documents, (ii) all conditions precedent set forth in this Section 4.1 have been
satisfied, and (iii) after giving effect to the financing transactions
contemplated under the Loan Documents, all representations and warranties in
this Agreement and the other Loan Documents are true and correct in all respects
(subject to any express qualification as to materiality contained in any such
representation and warranty), and no Default or Unmatured Default has occurred
and is continuing.

     

    (C)           Copies
of the Asset Purchase Agreement (without any amendments, supplements or other
modifications thereto since April 14, 2010, unless consented to in writing in
advance by Agent) and copies of all other agreements, documents and instruments
relating to the acquisition of the Purchased Assets by Operator (including,
without limitation, the required court and regulatory approvals for such
acquisition), each duly executed where appropriate.

     

    (D)           This
Agreement, the Guaranty, the Collateral Documents, the Environmental Indemnity,
the Parent Expenses Agreement and all other agreements, documents, certificates
and instruments relating to the Loan or Loans and described in the list of
closing documents attached hereto and made a part hereof as Exhibit E (the “Closing List”), each
fully executed.

     

    (E)           Written
opinions of Borrower’s outside counsel addressing those matters and those laws
(including the laws of the States of Delaware, New York, Nevada and Washington)
which in Agent’s opinion are appropriate for the transactions contemplated
hereby and hereunder, addressed to Agent and Lenders and in form and substance
acceptable to Agent.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    (F)           The
certificates described in Section 5.21
evidencing insurance acceptable to Agent with respect to all the New Card Rooms
and evidence acceptable to Agent that the premium payments for the first three
(3) months of such annual policies have been paid for each of the required
insurance policies for the New Card Rooms being purchased on the Effective
Date.

     

    (G)           Certificates
of status with respect to each Credit Party dated within ten (10) days prior to
the Effective Date issued by the appropriate governmental officer of the
jurisdiction of organization of such Credit Party, which certificates shall
indicate that such Credit Party is in good standing in such
jurisdiction.

     

    (H)           Certificates
of status with respect to each Credit Party dated within thirty (30) days prior
to the Effective Date issued by the appropriate governmental officer of the
jurisdictions (other than the jurisdiction of organization of such Credit Party)
in which its failure to be duly qualified or licensed would constitute a
Material Adverse Change, which certificates shall indicate that such Credit
Party is in good standing in such jurisdiction.

     

    (I)            Such
other agreements, certificates, documents, instruments and other items evidenced
in writing as Agent, any Lender or its counsel may reasonably require or listed
on the Closing List.

     

    (b)           Collateral Information;
Perfection of Liens.  Agent shall have received complete and
accurate information from each Collateral Party with respect to the name, the
location of the principal place of business and chief executive office, and the
jurisdiction of organization for each Credit Party; all UCC, land and other
filing and recording fees and taxes shall have been paid or duly provided for;
Agent shall have received the results of Lien searches as it may request in each
relevant jurisdiction of organization for each Credit Party and each other
Subsidiary of Parent and such searches shall reveal no Liens on any Credit
Party’s assets except for Liens to be discharged on or prior to the Effective
Date, or as otherwise permitted by Agent; and Agent shall have received evidence
to its satisfaction in its sole discretion that all Liens granted to Agent with
respect to all Collateral are valid, effective, perfected and of first priority,
except as otherwise permitted under this Agreement. All certificates
representing Capital Stock included in the Collateral shall have been delivered
to Agent (with duly executed assignment in blank, as appropriate) and all
instruments included in the Collateral shall have been delivered to Agent (duly
endorsed to Agent).  Control Agreements with respect to all Deposit
Accounts (including, without limitation, the Tax Reserve, the Insurance Reserve
and the CME Reserve but excluding player-supported jackpot accounts) and
Securities Accounts of Operator (if any) and Borrower shall have been executed
by all parties thereto and otherwise be in form and substance satisfactory to
Agent.

     

    (c)           Corporate and Capital
Structure: Due Diligence; Amount of Indebtedness.  The
corporate, capital and legal structure of Parent and its Subsidiaries
(including, without limitation, Borrower, Operator and NG Washington) and all
legal due diligence with respect thereto, shall be acceptable to
Agent.  The Indebtedness of the Credit Parties shall be in form and
substance satisfactory to Agent.

     

    (d)           No Legal
Impediments.  No law, regulation, order, judgment or decree of
any Governmental Authority shall exist, which imposes adverse conditions on any
Credit Party or the consummation of the transactions contemplated hereunder or
the Acquisition of the Purchased Assets by Borrower; and Agent shall not have
received any notice that any action, suit, investigation, litigation or
proceeding is pending or threatened in any court or before any arbitrator or
Governmental Authority which is likely to (i) enjoin, prohibit or restrain
the making of the Loan on the Effective Date, or (ii) have a Material
Adverse Effect.

     

    (e)           No
Default.  No Default or Unmatured Default shall have occurred
and be continuing or would result from the making of the Loan requested to be
made on the Effective Date.

     

    (f)           Representations and
Warranties.  All of the representations and warranties
contained in this Agreement and in any of the other Loan Documents shall be true
and correct on and as of the Effective Date, both before and immediately after
giving effect to the making of the Loan on such date.

     

    (g)           Fees and Expenses
Paid.  There shall have been paid to Agent, for the account of
Lenders and Agent or other Persons entitled thereto, for their respective
individual accounts, all fees (including, without limitation, the reasonable
legal fees and disbursements of counsel to Agent and local counsel to Agent) due
and payable on or before the Effective Date, and all expenses (including,
without limitation, legal expenses) due and payable on or before the Effective
Date.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    (h)           Initial Insurance and Tax
Reserve Deposits.  There shall have been deposited
in:

     

    (i)           the
Tax Reserve, the Initial Tax Reserve Deposit Amount; and

     

    (ii)           the
Insurance Reserve, the Initial Insurance Reserve Deposit Amount,

     

    in each
case in respect of the New Card Room(s) being purchased on the Effective Date,
as evidenced by bank statements delivered to Agent by Borrower.

     

    (i)           Consents,
Etc.  Each Credit Party shall have received all consents and
authorizations required pursuant to any contractual obligation with any other
Person and shall have obtained all Permits of, and effected all notices to and
filings with, any Governmental Authority, Gaming Authority or Liquor Authority
as may be necessary to allow each Credit Party lawfully (i) to execute,
deliver and perform, in all respects, their respective obligations hereunder,
under the other Loan Documents to which each of them is, or shall be, a party
and each other agreement or instrument to be executed and delivered by each of
them pursuant thereto or in connection therewith and (ii) to create and
perfect the Liens on the Collateral to be owned by each of them in the manner
and for the purpose contemplated by the Loan Documents.  No such
consent or authorization shall impose any conditions upon any Credit Party that
are not acceptable to Agent.  All requisite Governmental Authorities,
Gaming Authorities and Liquor Authorities shall have approved or consented to
the Acquisition of the Purchased Assets by Operator and to the financing
transactions contemplated under the Loan Documents, to the extent
required.

     

    (j)           Due
Diligence.  Agent and its counsel shall have completed their
due diligence review of the financial, business, operations, assets,
liabilities, corporate, capital, environmental, legal and management structure
and contractual obligations of the Credit Parties, the results of which shall
have provided Agent and each Lender with results and information which, in the
judgment of such Person, are satisfactory to permit Agent and each Lender to
enter into the financing transactions contemplated hereby.

     

    (k)           Management
Agreement.  Borrower has furnished to Agent, with sufficient
copies for Lenders and in form and substance satisfactory to Agent, copies of
the Management Agreement certified by the Secretary of Parent as a true,
complete and correct copy of the original, in full force and effect as of the
Effective Date, and otherwise in form and substance acceptable to
Agent.

     

    (l)           Waivers.  Borrower
has furnished to Agent a copy of:

     

    (i)           
the Rogers’ Waiver, duly executed by Rogers (as lender), Parent (as borrower),
and each of NG Washington, Gold Mountain Development, CGC Holdings, L.L.C.,
Colorado Grande Enterprises, Inc, and Nevada Gold BVR, L.L.C. (as guarantors);
and

     

    (ii)           The
Sterling Waiver, duly executed by Sterling Savings Bank (as lender), NG
Washington (as borrower) and Nevada Gold & Casinos, Inc. (as
guarantor);

     

    certified
by an Authorized Officer of Parent (in the case of item (i) above) or NG
Washington (in the case of item (ii) above) as a true, complete and correct copy
of the original, in full force and effect as of the Effective Date, and
otherwise in form and substance acceptable to Agent;

     

    (m)           UCC Financing
Statements.  Written evidence satisfactory to Agent that the
UCC-3 financing statements, in the form attached to the Rogers’ Waiver, have
been filed by Borrower or Louise H. Rogers in all appropriate governmental
filing offices.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    (n)           Operating
Budget.  An operating budget arranged by month for the period
commencing on the first day of the first full calendar month following the
Effective Date to April 30, 2011 and pro forma operating budgets arranged by
month for the Fiscal Years May 1, 2011 to April 30, 2012, and May 1, 2012 to
April 30, 2013.

     

    Section
4.2          Further Conditions
Precedent.  Lenders
shall not be required to make any further Loan on any Purchase Agreement Closing
Date following the Effective Date (if any) unless:

     

    (a)           There
exists no Default or Unmatured Default and no Default or Unmatured Default will
occur as a result of making the Loan.

     

    (b)           The
Notes have been executed by Borrower and issued to each Lender pursuant to Section 2.12,
evidencing the Loan made to Borrower on the Effective Date and on each
subsequent Purchase Agreement Closing Date (if any), and payable to each
Lender.

     

    (c)           The
representations and warranties contained in Article 5 are true
and correct as of the applicable Note Issue Date except to the extent any such
representation or warranty is stated to relate solely to an earlier date, in
which case such representation or warranty shall have been true and correct on
and as of such earlier date.

     

    (d)           There
shall have been deposited in the Tax Reserve and the Insurance Reserve, the
applicable Initial Tax Reserve Deposit Amount and Initial Insurance Reserve
Deposit Amount, respectively, in respect of the New Card Room(s) being purchased
on such date.

     

    (e)           Agent
has received evidence acceptable to it that the premium payments for the first
three (3) months of the insurance policies for the New Card Rooms being
purchased on such subsequent Purchase Agreement Closing Date (as evidenced by
the certificates previously delivered to Agent pursuant to Section 4.01(a)(F))
have been paid;

     

    (f)           The
conditions set forth in Section 4.1(d), (e), (f), (g), (h) and (i) have been
satisfied in a manner satisfactory to Agent or waived by the Required Lenders
(or by Agent with the consent of the Required Lenders).

     

    (g)           All
legal matters incident to the making of the applicable Loan shall be
satisfactory to Agent, Lenders and their counsel.

     

    (h)           Each
condition precedent to the purchase and sale of the Purchased Assets on the
applicable Purchase Agreement Closing Date pursuant to the Asset Purchase
Agreement shall have been satisfied (without giving effect to any waiver of any
material terms or conditions of the Asset Purchase Agreement granted by Receiver
or Operator without the prior written consent of Agent). That portion of the
purchase price for the Purchased Assets not comprising the Acquisition Finance
Consideration shall have been delivered to Receiver by Operator pursuant to the
terms of the Asset Purchase Agreement.

     

    Any
Lender may require delivery of a Compliance Certificate to Agent or such Lender
as a condition to making any Loan.

     

    Section
4.3          Extension
Option.  The
Applicable Maturity Date shall not be extended to the Extended Maturity Date on
the Initial Maturity Date unless each of the following conditions have been
satisfied in a manner satisfactory to Agent or waived by the Required Lenders
(or Agent with the consent of the Required Lenders):

     

    (a)           Agent
shall have received an Extension Notice from Borrower in accordance with Section
2.2.

     

    (b)           Agent
shall have received the Extension Fee from Borrower.

     

    (c)           No
Default or Unmatured Default shall have occurred and be continuing or would
result from the exercise of the Extension Option, either as of the Extension
Exercise Date or as of the Initial Maturity Date.

     

    (d)           No
Material Adverse Change shall have occurred, as determined by Agent in its sole
discretion.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

     

    (e)           With
respect to the Borrower and the Operator on a consolidated basis, the ratio of
(a) Funded Indebtedness to (b) TTM Adjusted EBITDA, calculated in each case as
of the last calendar day of the last calendar month prior to the Initial
Maturity Date for which financial statements have been furnished to Agent by
Borrower pursuant to Section 6.1, is less
than or equal to 2.0:1.0.

     

    (f)           With
respect to the Collateral Subsidiaries on a consolidated basis, the ratio of (a)
Funded Indebtedness to (b) Three-Month Annualized Adjusted EBITDA, calculated in
each case as of the last calendar day of the last calendar month prior to the
Initial Maturity Date for which financial statements have been furnished to
Agent by Borrower pursuant to Section 6.1, is less
than or equal to 2.0:1.0.

     

    (g)           There
shall have been paid or reimbursed to Agent, for the account of Agent, Lenders
or other Persons entitled thereto, all fees, costs and expenses (including,
without limitation, the reasonable legal fees and disbursements of counsel to
Agent) incurred by Agent and Lenders in connection with Borrower’s exercise of
the Extension Option.

     

    (h)           The
Obligations as of the Initial Maturity Date (other than Obligations which are
contingent and unliquidated and not then due and owing as of such date), shall
be less than US$3,000,000.

     

    ARTICLE
5

     

    REPRESENTATIONS
AND WARRANTIES

     

    In order
to induce Lenders and Agent to enter into this Agreement and to make the Loans
and the other financial accommodations to Borrower, Borrower hereby represents
and warrants to each Lender and Agent as of the Effective Date, on each
subsequent Purchase Agreement Closing Date (if any) and the date on which a
Compliance Certificate is required to be delivered pursuant to Section 6.1(g) that
the following statements are true, correct and complete:

     

    Section
5.1          Existence and
Standing.  Each
Credit Party is a corporation, partnership or limited liability company duly and
properly incorporated or organized, as the case may be, validly existing and (to
the extent such concept applies to such entity) in good standing under the laws
of its jurisdiction of incorporation or organization and has all requisite
authority to conduct its business in each jurisdiction in which its business is
conducted.

     

    Section
5.2          Authorization and
Validity.

     

    (a)           Each
Credit Party has the power and authority and legal right to execute and deliver
the Loan Documents to which it is a party and to perform its obligations
thereunder.  The execution and delivery by each Credit Party of the
Loan Documents to which it is a party and the performance of its obligations
thereunder have been duly authorized by proper corporate
proceedings.

     

    (b)           The
Loan Documents to which each Credit Party is a party constitute legal, valid and
binding obligations of such Credit Party enforceable against such Credit Party
in accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally.

     

    (c)           Each
of the Collateral Documents to which any Collateral Party is a party, creates
valid and perfected first priority Liens in the Collateral covered thereby
securing the payment of all of the Obligations purported to be secured
thereby.

     

    (d)           Each
Credit Party has performed and complied with all the terms, provisions,
agreements and conditions set forth in each Loan Document to which it is a party
and required to be performed or complied with by such parties on or before the
Effective Date, all filings and recordings and other actions which are necessary
or desirable to perfect and protect the Liens granted pursuant to the Loan
Documents and preserve their required priority have been duly taken, and no
Default, Unmatured Default or breach of any covenant by any such party exists
thereunder.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Section
5.3          No Conflict; Government
Consent.  Neither
the execution and delivery by any Credit Party of the Loan Documents to which it
is a party, nor the consummation of the transactions therein contemplated, nor
compliance with the provisions thereof will violate (a) any law, rule,
regulation, order, writ, judgment, injunction, decree or award binding on any
Credit Party, (b) any Credit Party’s Constituent Documents, or (c) the
provisions of any indenture, instrument or agreement to which any Credit Party
is a party or is subject, or by which it, or its Property, is bound, or conflict
with or constitute a default thereunder, or result in, or require, the creation
or imposition of any Lien in, of or on the Property of any Credit Party pursuant
to the terms of any such indenture, instrument or agreement (including, without
limitation, the Rogers’ Note and the loan and security documentation executed in
connection therewith).  No order, consent, adjudication, approval,
license, authorization, or validation of, or filing, recording or registration
with, or exemption by, or other action in respect of any governmental or public
body or authority, or any subdivision thereof, which has not been obtained by
any Credit Party, is required to be obtained by any Credit Party in connection
with the execution and delivery of the Loan Documents, the borrowings under this
Agreement, the payment and performance by Credit Parties of the Obligations or
the legality, validity, binding effect or enforceability of any of the Loan
Documents. None of the Credit Parties is subject to any federal or state statute
or regulation which limits its ability to incur Indebtedness or its ability to
consummate the transactions contemplated in the Loan Documents.

     

    Section
5.4          Financial
Statements.

     

    (a)           The
consolidated financial statements heretofore delivered to Lenders were prepared
in accordance with GAAP in effect on the dates of such statements were prepared
and fairly present the consolidated financial condition and operations of Parent
and NG Washington at such dates and the consolidated results of their operations
for the relevant period then ended.  The initial projections and each
of the business plans and all other financial projections and related materials
and documents delivered to Agent and/or Lenders (to the extent in fact delivered
to Agent and/or Lenders) were prepared in good faith and are based upon facts
and assumptions that are reasonable in light of the then current and foreseeable
business conditions and prospects of  the Parent and NG Washington
and, as from the Effective Date, Borrower and Operator, and represent
management’s opinion of the projected financial performance based on the
information available at the time so furnished. The opening balance sheet of the
Credit Parties, copies of which have been furnished to Lenders, fairly present
on a pro forma basis the
financial condition of the Credit Parties as of the Effective Date, and reflect
on a pro forma basis those
liabilities reflected in the notes thereto and resulting from consummation of
the transactions contemplated by the Loan Documents, and the payment or accrual
of all transaction costs payable with respect to any of the
foregoing.  Such initial projections and the assumptions expressed in
such pro forma are reasonable based on the information available to Credit
Parties at the time so furnished.

     

    (b)           Each
budget delivered pursuant to Section 4.1(n), Section 6.1(a) and
6.1(e) (or
forecast therein) has been prepared in good faith by Borrower and based on
assumptions believed by Borrower to be reasonable.

     

    Section
5.5          Material Adverse
Change.  Since
April 14, 2010, there has been no Material Adverse Change.

     

    Section
5.6          Taxes.  Each
of the Credit Parties has timely filed or caused to be timely filed, with the
appropriate governmental or quasi-governmental authority all United States
federal, state and local tax returns and other reports (“Returns”) which are
required to be filed by applicable law with respect to the income, properties or
operations of any Credit Party.  Such Returns accurately reflect all
liability for Taxes of Parent or any of its Subsidiaries for the periods covered
thereby.  Each Credit Party has paid in full all Taxes due (whether or
not shown on any Returns) and any penalties with respect thereto (including any
penalties for late filing) or pursuant to any assessment received by any Credit
Party.  No tax Liens have been filed and no claims are being asserted
with respect to any such Taxes.  The charges, accruals and reserves on
the books of the Credit Parties in respect of any Taxes or other governmental
charges are adequate.  Other than Taxes currently paid, no Credit
Party has any Knowledge of any basis for any other Tax that could reasonably be
expected to have a Material Adverse Effect.  There is no action, suit,
proceeding, investigation, audit, or claim now pending or, to the best Knowledge
of Borrower, threatened by any Governmental Authority regarding any Taxes
relating to any Credit Party.  Each Credit Party is a “U.S. Person” as
defined in Section 7701(a)(30) of the Internal Revenue Code, or, in the case of
an entity that is disregarded for United States federal income tax purposes, is
created or organized under the law of the United States, of any state thereof or
of the District of Columbia.

     

    Section
5.7          Litigation and Contingent
Obligations.  Except
as set forth on Schedule 5.7,
there is no litigation, arbitration, governmental investigation, proceeding or
inquiry pending or threatened against or affecting any Credit Party or which
seeks to prevent, enjoin or delay the making of the Loans.  Other than
any liability incident to any litigation, arbitration or proceeding which is set
forth on Schedule 5.7, no
Credit Party has any material Contingent Obligations not provided for or
disclosed in the financial statements referred to in Section
5.4.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

     

    Section
5.8          Organizational
Structure.

     

    (a)           Set
forth on Schedule 5.8.1
is a complete and accurate list of Parent and each Subsidiary thereof showing:
(i) its jurisdiction of its organization, (ii) its legal name, (iii) its
organizational number (if any), (iv) the location of its chief executive office
or sole place of business, and such Schedule also lists all jurisdictions of
organization and legal names of such Person for five (5) years prior to the
Effective Date.

     

    (b)           Set
forth on Schedule 5.8.2
is a complete and accurate description of the authorized Capital Stock of each
Subsidiary of Parent, by class and with a description of the number of shares or
other interests of Capital Stock of each such class that are issued and
outstanding and any other Person owning such Capital Stock (if
any).  Other than as described on Schedule 5.8.2,
there are no subscriptions, options, warrants, or calls relating to any shares
of each Credit Party’s Capital Stock, including any right of conversion or
exchange under any outstanding security or other instrument.  No
Credit Party is subject to any obligation (contingent or otherwise) to
repurchase or otherwise acquire or retire any shares of its Capital Stock or any
security convertible into or exchangeable for any of its Capital Stock. All of
the outstanding  Capital Stock of each Credit Party has been validly
issued and is fully paid and non-assessable.  This representation and
warranty is not made with respect to the Capital Stock of Parent.

     

    (c)           Except
as set forth on Schedule 5.8.3, no
Credit Party is engaged in any joint venture or partnership with any other
Person.

     

    Section
5.9          Plan
Liability.

     

    (a)           The
Unfunded Liabilities of all Single Employer Plans do not in the aggregate exceed
US$250,000.  No Credit Party nor any Controlled Group Member has
incurred, or is reasonably expected to incur, any withdrawal liability to
Multiemployer Plans in excess of US$250,000 in the aggregate.  Each
Plan complies in all material respects with all applicable Requirements of Law,
no Reportable Event has occurred with respect to any Plan, none of the Credit
Parties nor any Controlled Group Member has withdrawn from any Plan or initiated
steps to do so, and no steps have been taken to reorganize or terminate any
Plan.

     

    (b)           No
ERISA Event has occurred or could be reasonably expected to result in liability
to any Credit Party or any Controlled Group Member in an aggregate amount in
excess of US$250,000.

     

    (c)           No
Credit Party or Controlled Group Member has failed to make a required
contribution  or any other required payment under Section 412 of
the Internal Revenue Code or Section 302 of ERISA on or before the due date for
such installment or other payment.  No Pension Plan has failed to
satisfy the minimum standard with respect to such Pension Plan within the
meaning of Section 412 or Section 302 of ERISA, whether or not
waived.  No Credit Party or Controlled Group Member nor any fiduciary
of any Plan has engaged in a prohibited nonexempt transaction described in
Section 406 of ERISA or 4975 of the Internal Revenue Code.

     

    (d)           Each
Foreign Employee Benefit Plan is in compliance in all material respects with all
laws, regulations and rules applicable thereto and the respective requirements
of the governing documents for such Plan.  The aggregate of the
liabilities to provide all of the accrued benefits under any Foreign Pension
Plan does not exceed the current fair market value of the assets held in the
trust or other funding vehicle for such Plan.  With respect to
any  Foreign Employee Benefit Plan maintained by any Credit Party on
any Controlled Group Member (other than a Foreign Pension Plan), reasonable
reserves have been established in accordance with prudent business practice or
where required by ordinary accounting practices in the jurisdiction in which
such Plan is maintained.  The aggregate unfunded liabilities, after
giving effect to any reserves for such liabilities, with respect to such Plan
will not result in a material liability.  There are no actions, suits
or claims (other than routine claims for benefits) pending or threatened against
any Credit Party of Controlled Group Member with respect to any Foreign Employee
Benefit Plan.

     

    Section
5.10        Accuracy of
Information.  None
of the representations or warranties made by any Credit Party in the Loan
Documents, and no information, exhibit or report furnished by any Credit Party
to Agent or to any Lender in connection with the Loan Documents contains or
contained any material misstatement of fact or omits or omitted to state a
material fact or any fact necessary to make the statements contained herein or
therein not misleading.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Section
5.11        Regulation
U.  Margin
Stock constitutes less than twenty five percent (25%) of the value of those
assets of each Credit Party which are subject to any limitation on sale, pledge,
or other restriction hereunder.  No Credit Party is engaged in the
business of extending credit for the purpose of purchasing or carrying Margin
Stock.

     

    Section
5.12        Material
Agreements.  No
Credit Party is a party to any agreement or instrument or subject to any charter
or other corporate restriction which could reasonably be expected to have a
Material Adverse Effect.  No Credit Party is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (a) any agreement (other than an agreement
evidencing or governing Indebtedness) to which it is a party, which default
could reasonably be expected to result in a Material Adverse Change, or (b) any
agreement or instrument evidencing or governing Indebtedness.

     

    Section
5.13        Compliance With
Laws. Each
Credit Party is complying and will comply with all Requirements of Law
applicable to the conduct of their respective businesses or the ownership of
their respective Property.

     

    Section
5.14        Ownership of
Property.  Except
as set forth on Schedule 5.14,
on the date of this Agreement, each of Borrower and Operator will have good
title, free of all Liens other than Permitted Liens, to all of the Property and
assets reflected in the most recent consolidated financial statements, if any,
provided to Agent hereunder as owned by Borrower or Operator, as
applicable.

     

    Section
5.15        Plan Assets; Prohibited
Transactions.  No
Credit Party is an entity deemed to hold “plan assets” within the meaning of 29
C.F.R. § 2510.3-101, as modified by Section 3(42) of ERISA, of an employee
benefit plan (as defined in Section 3(3) of ERISA) which is subject to
Title I of ERISA or a plan (within the meaning of Section 4975 of the
Internal Revenue Code), and neither the execution of this Agreement nor the
making of the Loans hereunder gives rise to a prohibited transaction within the
meaning of Section 406 of ERISA or Section 4975 of the Internal
Revenue Code, or any other Requirements of Law, with respect to any
Plan.

     

    Section
5.16        Environmental
Law.  In
the ordinary course of its business, each Collateral Subsidiary considers the
effects of Environmental, Health or Safety Requirements of Law on the business
of such Collateral Subsidiary in the course of which an officer and/or other
employee reporting to an officer of such Collateral Subsidiary takes
responsibility for identifying and evaluating potential risks and liabilities
accruing to such Collateral Subsidiary due to Environmental, Health or Safety
Requirements of Law.  On the basis of this consideration, and to its
Knowledge, each Collateral Subsidiary has concluded that Environmental, Health
or Safety Requirements of Law cannot reasonably be expected to have a Material
Adverse Effect upon the businesses conducted by such Collateral Subsidiary (if
any).  Neither Collateral Subsidiary has received any notice to the
effect that the businesses operated by it are not in material compliance with
any of the requirements of applicable Environmental, Health or Safety
Requirements of Law or are the subject of any federal or state investigation
evaluating whether any Remedial Action is needed to respond to a Release of any
Contaminant into the environment, which non compliance or Remedial Action could
reasonably be expected to have a Material Adverse Effect on the businesses
operated by such Collateral Subsidiary (if any).

     

    Section
5.17        Environmental
Matters.  Except
as set forth in Schedule 5.17.1,
to each of Borrower’s and Operator’s Knowledge:

     

    (A)           the
operations of the Collateral Subsidiaries comply in all respects with all
applicable Environmental, Health or Safety Requirements of Law;

     

    (B)           each
Collateral Subsidiary has obtained all environmental, health and safety Permits
necessary for its respective operations and Properties, and all such Permits are
in good standing, and each Collateral Subsidiary is currently in compliance with
all terms and conditions of such Permits;

     

    (C)           neither
Collateral Subsidiary nor any of their respective present or past Property or
operations, are subject to or the subject of any currently effective or ongoing
judicial or administrative proceeding, order, judgment, decree, dispute,
negotiations, agreement, or settlement respecting (A) any violation of or
liability under any Environmental, Health or Safety Requirements of Law,
(B) any Remedial Action, (C) any Claims or Liabilities and Costs
arising from the Release or threatened Release of a Contaminant into the
environment, or (D) any Environmental, Health or Safety Requirements of
Law;

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    (D)           no
Collateral Subsidiary has filed any notice under any applicable Requirement of
Law: (A) reporting to any Person or Governmental Authority a Release of a
Contaminant; (B) reporting under Section 103(c) of CERCLA, indicating
past or present treatment, storage or disposal of a hazardous waste, as that
term is defined under 40 C.F.R. Part 261 or any state equivalent; or
(C) reporting a violation of any applicable Environmental, Health or Safety
Requirement of Law or condition in any Permit under an Environmental, Health or
Safety Requirement of Law within the past three years;

     

    (E)           none
of the present or past Property of any Collateral Subsidiary is listed or
proposed for listing on the National Priorities List (“NPL”) pursuant to
CERCLA or on the Comprehensive Environmental Response Compensation Liability
Information System List (CERCLIS) or any similar state list of sites requiring
Remedial Action;

     

    (F)           no
Collateral Subsidiary has sent or directly arranged for the transport of any
product, material or waste, to any current or proposed NPL site, or any site on
any similar state list of sites requiring Remedial Action;

     

    (G)           there
is not now in connection with or resulting from any Collateral Subsidiary’s
operations, nor, to Borrower’s Knowledge, has there ever been on or in any of
the current or former Real Property (A) any treatment, recycling, storage
or disposal of any hazardous waste requiring a Permit under any applicable
Environmental, Health or Safety Requirement of Law or any state equivalent,
(B) any solid waste landfill, waste pile, petroleum or hazardous waste,
swamp, pit, pond, underground storage tank or surface impoundment, (C) any
asbestos-containing material, or (D) a reportable or non-permitted Release
to the environment of any Contaminant involving any polychlorinated biphenyls
used in hydraulic oils, electrical transformers or other equipment;

     

    (H)           there
have been no Releases of any Contaminants to the environment from any Property
owned by either Collateral Subsidiary except (A) in compliance with
Environmental, Health or Safety Requirements of Law, or (B) which have been
addressed to the satisfaction of the appropriate Governmental
Authorities;

     

    (I)         
  no environmental Lien has attached to any Real Property owned by
either Collateral Subsidiary;

     

    (J)       
    within the last year each Collateral Subsidiary has
inspected its respective Property and such Property does not contain any
asbestos-containing material or visible evidence of mold growth;

     

    (K)           no
Collateral Subsidiary has received any notice of Claim to the effect that any of
such Persons is or may be liable to any Person as a result of the Release or
threatened Release of a Contaminant into the environment, and no Collateral
Subsidiary has any contingent liability in connection with any Release or
threatened Release of any Contaminants into the environment;

     

    (L)           none
of the Real Property owned by either Collateral Subsidiary is subject to any
Environmental Property Transfer Act, or the extent such acts are applicable to
any such Property, the Collateral Subsidiaries have fully complied with the
requirements of such acts; and

     

    (M)           each
Collateral Subsidiary is conducting and will continue to conduct their
respective business and operations in an environmentally responsible manner in
material compliance with Environmental, Health or Safety Requirements of Law,
and the Collateral Subsidiaries, taken as a whole, have not been, and have no
reason to believe they will be, subject to Liabilities and Costs arising out of
or relating to environmental, health or safety matters that have or are
reasonably likely to result in cash expenditures by the Collateral Subsidiaries
in excess of US$25,000 in the aggregate for any calendar year ending after the
Effective Date.

     

    Section
5.18        Investment Company
Act.  No
Credit Party is an “investment company” or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940,
as amended.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
          36

          
            

          

        

        
           

        

      

    

     

    Section
5.19        Affiliate
Transactions.  Neither
Collateral Subsidiary has entered into or will enter into any transaction,
contract, agreement or instrument with any of its Affiliates other than (a) with
each other, and (b) the Management Agreement and a tax sharing agreement between
Operator and Parent, or make or be obligated to make any payments or incur any
payment obligation or make any transfer to any of its Affiliates, other than
payments by Operator to Parent of Permitted Management Fees and Permitted
Management Expenses.

     

    Section
5.20        Post Retirement
Benefits.  There
are no post retirement medical and insurance benefits payable by Operator to its
employees and former employees.

     

    Section
5.21        Insurance.  The
certificate signed by the Chief Financial Officer of Borrower, attaching each
insurance certificate, policy and endorsement in relation thereto then in effect
and summarizing the property and casualty insurances carried by Operator and,
with respect to the Card Rooms, any other Credit Party, has been furnished by
Borrower to Agent, and is complete and accurate.  This summary
includes the insurer’s or insurers’ name(s), policy number(s), expiration
date(s), amount(s) of coverage, type(s) of coverage, exclusion(s), and
deductibles.  This summary also includes similar information, and
describes any reserves, relating to any self insurance program that is in
effect.  The insurance certificates and policies attached to the
certificate evidence insurances in full compliance with the requirements of
Section
6.6.

     

    Section
5.22        Solvency.  Immediately
after the consummation of the transactions to occur on the Effective Date and
immediately following the Borrowing of each Loan hereunder on the Effective Date
and each subsequent Purchase Agreement Closing Date (if any) and after giving
effect to the Borrowing of each Loan, Borrower is, and each other Credit Party
is and will be, Solvent.

     

    Section
5.23        Anti-Terrorism
Laws.  None
of Credit Parties or any of its Subsidiaries are, and no Person who owns a
controlling interest in or otherwise controls any Credit Party or any of its
Subsidiaries is or shall be, (a) listed on the Specially Designated
Nationals and Blocked Persons List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of
the Treasury, and/or on any other similar list (collectively, the “Lists”) maintained by
OFAC pursuant to any authorizing statute, Executive Order or regulation
(collectively “OFAC
Laws and Regulations”); or (b) a Person (a “Designated Person”)
either (i) included within the term "designated national" as defined in the
Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (ii) designated
under Sections 1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66
Fed. Reg. 49079 (published September 25, 2001) or similarly designated under any
related enabling legislation or any other similar Executive Orders
(collectively, the “Executive
Orders”).  No Credit Party nor any of its Subsidiaries
(x) is a Person or entity with which any Lender or Agent is prohibited from
dealing or otherwise engaging in any transaction by any Anti-Terrorism Law or
(y) is a Person or entity that commits, threatens or conspires to commit or
supports “terrorism” as defined in the Executive Orders or (z) is
affiliated or associated with a Person or entity listed in the preceding clause (x) or clause
(y).  No Credit Party, any of its Affiliates, nor any brokers
or other agents acting in any capacity in connection with the Loans borrowed
hereunder (I) deals in, or otherwise engages in any transaction relating
to, any property or interests in property blocked pursuant to the Executive
Orders or (II) engages in or conspires to engage in any transaction that
evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

     

    Section
5.24        No Violation of Anti-Money
Laundering Laws.  No
Credit Party nor any holder of a direct or indirect interest in any Credit Party
(a) is under investigation by any governmental authority for, or has been
charged with, or convicted of, money laundering under any Anti-Money-Laundering
Laws, drug trafficking, terrorist-related activities or other money laundering
predicate crimes, or any violation of any Anti-Money-Laundering Laws,
(b) has been assessed civil penalties under any Anti-Money Laundering Laws,
or (c) has had any of its funds seized or forfeited in an action under any
Anti-Money Laundering Laws.

     

    Section
5.25        Labor
Matters.  Except
as set forth in Schedule 5.25,
as of the Effective Date there is no collective bargaining agreement or
certification covering, or being negotiated on behalf of, any of the employees
of any Credit Party.  As of the Effective Date, no attempt is being or
will be made to organize the employees of any Credit Party, nor is any such
activity pending, threatened or planned.

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

    

    
      
        
           

        

        
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    Section
5.26          Patents, Trademarks,
Permits, Etc.; Government Approvals.

     

    (a)           To
the Borrower’s Knowledge, except as set forth on Schedule 5.26.1, each
Credit Party owns, is licensed or otherwise has the lawful right to use, or has
all Permits and other governmental approvals, patents, trademarks, trade names,
industrial designs, copyrights, technology, know-how and processes used in or
necessary for the conduct of its respective business as currently conducted
except where the failure to do so would not have or be reasonably likely to have
a Material Adverse Effect.  Except as set forth on Schedule 5.26.1,
as of the Effective Date no claims are pending or, to the best of Borrower’s
Knowledge following inquiry, threatened that any Credit Party is infringing upon
the rights of any Person with respect to such permits and other governmental
approvals, patents, trademarks, trade names, industrial designs, copyrights,
technology, know-how and processes, except for such claims and infringements
that do not, in the aggregate, give rise to any liability on the part of any
Credit Party which will, or is reasonably likely to, have a Material Adverse
Effect.

     

    (b)           Except
for Liens granted to Agent for the benefit of Agent and Lenders, the
transactions contemplated by the Loan Documents will not impair the ownership of
or rights under (or the license or other right to use, as the case may be) any
permits and governmental approvals, patents, trademarks, trade names, industrial
designs, copyrights, technology, know-how or processes by any Credit Party in
any manner which shall have or is reasonably likely to have a Material Adverse
Effect.

     

    Section
5.27          Collateral Locations and
Condition.  Schedule 5.27
contains a true and complete list of (a) all of the Real Property owned in
fee simple by each Credit Party, (b) a true and complete list of all Leases
in effect on the Effective Date.  Substantially all of the assets and
Property owned by or leased to Credit Parties are in adequate operating
condition and repair, ordinary wear and tear excepted, and are free and clear of
any known defects except such defects that do not substantially interfere in any
material respect with the continued use thereof in the conduct of normal
operations.

     

    Section
5.28          Gaming and Liquor
Laws.  There
are no Gaming Laws or Liquor Laws presently in effect or formally proposed to
become effective that could reasonably be expected to materially and adversely
affect the rights, remedies and powers of Agent or any Lender under this
Agreement or under any of the other Loan Documents, other than
(a) limitations on the ability of Agent or the Lenders to foreclose on and
own the Pledged Stock of Operator without obtaining the requisite Gaming License
or Liquor License therefor, (b) limitations on the ability of Agent or the
Lenders to foreclose on the Mortgages in respect of of Operator without
obtaining the requisite Gaming License or Liquor License therefor, and
(c) limitations on the ability of Agent or the Lenders to foreclose on, own
and operate any gaming device or associated equipment of any Credit Party
without obtaining the requisite Gaming License or Liquor License
therefor.

     

    Section
5.29          Asset Purchase
Agreement.  Operator
is not in default in the performance or compliance with any provisions of the
Asset Purchase Agreement or any of the documents delivered in connection
therewith.  The Asset Purchase Agreement complies with, and the
Acquisition of the Purchased Assets by Operator has been consummated in
accordance with, all applicable Requirements of Law.  The Asset
Purchase Agreement is in full force and effect as of the Effective Date and has
not been terminated, rescinded or withdrawn.  To the best of each
Credit Party’s Knowledge, none of Operator’s representations or warranties in
the Asset Purchase Agreement contain any untrue statement of a material fact or
omit any fact necessary to make the statements therein not
misleading.  Each of the representations and warranties given by
Operator in the Asset Purchase Agreement is true and correct in all material
respects.  Notwithstanding anything contained in the Asset Purchase
Agreement to the contrary, such representations and warranties of Operator are
incorporated into this Agreement by this  Section 5.29 and
shall, solely for purposes of this Agreement and the benefit of Agent and
Lenders, survive the consummation of the Acquisition of the Purchased
Assets.

     

    Section
5.30          Mortgages.  To
the Borrower’s Knowledge, the Mortgages create a valid and enforceable Lien on
the Mortgaged Properties described therein, as security for the repayment of the
Obligations, subject only to the Permitted Liens applicable to the Mortgaged
Properties.

     

    Section
5.31           Assessments.  Except
as previously disclosed to Agent in writing, there are no pending nor, to
Borrower’s Knowledge, without inquiry or investigation, proposed special or
other assessments for public improvements or otherwise affecting the Mortgaged
Properties.

     

    Section
5.32          No Joint Assessment;
Separate Lots.  Borrower
has not affirmatively permitted, or initiated, or to the Knowledge of Borrower
suffered the joint assessment of any Mortgaged Property (a) with any other
real property constituting a separate tax lot, and (b) with any portion of
such Mortgaged Property which may be deemed to constitute personal property, or
any other procedure whereby the lien of any taxes which may be levied against
such personal property shall be assessed or levied or charged to such Mortgaged
Property as a single lien.  Each Mortgaged Property is comprised of
one or more parcels, each of which constitutes a separate tax lot and none of
which constitutes a portion of any other tax lot except as disclosed in the
Title Policies.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      

        
          
             

          

          
            38

            
              

            

          

          
             

          

        

    

    Section
5.33          Flood
Zone.  To
the best of Borrower’s Knowledge, the Mortgaged Properties are not located in a
flood hazard area as defined by the Federal Insurance
Administration.

     

    Section
5.34          No
Encroachments.  To
the best of Borrower’s Knowledge, (a) no improvements on adjoining
properties encroach upon any Mortgaged Property, (b) no easements or other
encumbrances upon any Mortgaged Property encroach upon any of the improvements
on such Mortgaged Property, in the case of (i) and (ii), the aforementioned
conditions in this clause do not materially and adversely affect the value or
marketability of such Mortgaged Property and (c) all of the improvements on
the Mortgaged Properties comply with all material requirements of any applicable
zoning and subdivision laws and ordinances.

     

    Section
5.35          Management
Agreement.  The
New Card Rooms are each managed pursuant to the Management Agreement by the
Service Supplier, and the Service Supplier holds a currently valid Gaming
License with respect to the management activities performed under such
Management Agreement (including, without limitation, a valid service supplier
license issued by the WSGC) and such Management Agreement has been filed with
and approved by the WSGC.

     

    Section
5.36          Leases.  The
Mortgaged Properties are not subject to any Leases other than those set forth in
Schedule 5.36.

     

    Section
5.37          Status of Borrower and
Operator.  Borrower
has not engaged in any business activities and does not own any Property other
than (a) ownership of one hundred percent (100%) of the Capital Stock of
Operator, (b) activities and contractual rights incidental to the maintenance of
its corporate existence; and (c) rights arising under the Loan
Documents.  Borrower has no liabilities or obligations other than (i)
arising from its ownership of the Capital Stock of Operator, (ii) those
incidental to the maintenance of its corporate existence, and (iii) arising
under the Loan Documents.  Operator has not engaged in any business
activities other than with respect to the operation of the New Card
Rooms.

     

    Section
5.38          Deposit Accounts and
Securities Accounts.  Set
forth on Exhibit
M is a listing of all of Borrower’s and Operator’s Deposit Accounts and
Securities Accounts, including, with respect to each bank (which is the Account
Bank) or securities intermediary (a) the name and address of such Person, and
(b) the account numbers of the Deposit Accounts or Securities Accounts
maintained with such Person.

     

    Section
5.39          Gaming and Liquor
Licensing.  Borrower
is not licensed by, nor made any application to become licensed by, the
WSGC.  Operator has all Gaming Licenses and Liquor Licenses necessary
to own and operate the Card Rooms, and such Permits are in good standing, and
Operator is currently in compliance with all terms and conditions of such
Permits.

     

    Section
5.40          Fiscal
Year.  The
Fiscal Year of each Credit Party is May 1 to April 30.

     

    Section
5.41          Corporate
Overhead.  Parent
does not and will not allocate its or its Subsdiaries’ (other than Borrower’s
and Operator’s) corporate overhead costs and expenses to the Borrower or
Operator, or to Operator’s businesses, other than Permitted Management
Expenses.

     

    Section
5.42          Indebtedness.  Neither
Borrower nor Operator has any Indebtedness other than as permitted pursuant to
Section
6.11.

     

    ARTICLE
6

     

    COVENANTS

     

    So long
as any Obligation is outstanding and thereafter until Payment In Full of all of
the Obligations, unless Required Lenders in their sole discretion shall
otherwise consent in writing (or Agent acting with the consent of the Required
Lenders):

     

    Section
6.1            Reporting.  Borrower
will furnish to Agent (and Agent will make available to each Lender), in form
and substance acceptable to Agent:

      

      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    (a)           Annual
Financials.  As soon as available and in any event within
ninety (90) days after the end of each Fiscal Year, an unqualified (except for
qualifications as to non-material matters) audit report by Pannell Kerr Forster
of Texas, P.C. or such other certified public accountants as are acceptable to
Agent, certified by such accountants as fairly presenting the consolidated
financial position of the Credit Parties and their Subsidiaries and having been
prepared in accordance with GAAP on a consolidated and consolidating basis,
including balance sheets as of the end of such period and related profit and
loss and reconciliation of surplus statements, in each case for the New Card
Rooms on an individual and consolidated basis, and a statement of cash flows on
a consolidated basis for the New Card Rooms, accompanied by any management
letter prepared by said accountants.

     

    (b)           Approved Capital
Expenditures Budget

     

    (i)      
     As soon as available and in any event within
thirty (30) days after the Effective Date, a capital expenditures budget for the
New Card Rooms on an individual and consolidated basis for the period from and
including the Effective Date to and including April 30, 2011; and

     

    (ii)           As
soon as available and in any event no later than thirty (30) days prior to April
30 of each calendar year after the Effective Date, a capital expenditures budget
for the New Card Rooms on an individual and consolidated basis for the Fiscal
Year beginning on May 1 of that calendar year (each such capital expenditures
budget, a “CapEx
Budget”) in sufficient detail acceptable to the Agent and Required
Lenders in their sole discretion.  Each such CapEx Budget so furnished
shall be subject to review and approval by Agent and the Required
Lenders.  Agent’s and any Required Lender’s initial review and each
subsequent review of any revised CapEx Budget shall be performed within thirty
(30) days after its receipt of such proposed budget.  To the extent
that Agent or any Required Lender does not approve all or a portion of a
proposed CapEx Budget, Agent will provide Borrower with its and/or their
comments with respect thereto.  Agent’s and the Required Lenders’
approval of any proposed CapEx Budget furnished in accordance with this Section 6.1(b) shall
not be unreasonably withheld (a CapEx Budget, until it is approved pursuant to
this Section 6.1(b), an “Unapproved CapEx
Budget” and, when approved pursuant to this Section 6.1(b), an “Approved CapEx
Budget”).

     

    (c)           Quarterly
Financials.

     

    (i)         
  As soon as available and in any event within forty five (45) days
after the last day of each Fiscal Quarter of Operator (including the last Fiscal
Quarter of each Fiscal Year), consolidated and consolidating cash flow
statements of Operator and the Borrower as at the close of each such period, and
specifying in reasonable detail any material variations to the Approved CapEx
Budget and the operating budget prepared for that period;

     

    (ii)           As
soon as available and in any event within forty five (45) days after the last
day of each Fiscal Quarter of Operator, consolidated and consolidating financial
statements and operating statements of the Operator and Borrower on an
individual and consolidated basis for the period from the beginning of such
Fiscal Year to the end of such Fiscal Quarter, and including, without
limitation, consolidated and consolidating balance sheets in sufficient detail
acceptable to Agent, with respect to the operations and management of each New
Card Room.

     

    (d)           Monthly
Financials.  As soon as available and in any event within
thirty (30) days after the last day of each calendar month:

     

    (i)         
  monthly summary reports including the following information, in
sufficient detail acceptable to Agent, and with respect to the operations and
management of each New Card Room (including back office operations and other
corporate overhead) for such calendar month:

     

    (A)          results
from operations, including Gross Revenues, Net Income and Operating Expenses
(for the avoidance of doubt inclusive of profit and loss
statements);

     

    (B)           statements
as of the last day of such calendar month comparing actual to budgeted results
and variance analysis for the New Card Rooms, on an individual and consolidated
basis (for the avoidance of doubt inclusive of profit and loss
statements);

     

    (C)           balance
sheets as at the last day of such calendar month for the New Card Rooms, on an
individual and consolidated basis;

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      

        
          
             

          

          
            40

            
              

            

          

          
             

          

        

      

       

    

    (D)           a
completed gaming report for such month in the form set forth as Exhibit J
hereto;

     

    (E)           actual
violations arising with respect to Gaming Laws, Liquor Laws, Gaming Licenses or
Liquor Licenses, and any potential violations notified to the WSGC, the WSLCB or
any other Governmental Authority in relation thereto; and

     

    (F)           other
events having or likely to have a Material Adverse Effect on each New Card
Room’s operations.

     

    (e)          Operating
Budget.  An operating budget for the New Card Rooms as soon as
available and in any event no later than thirty (30) days prior to the Fiscal
Year beginning (i) May 1, 2011, which shall also specify those line items that
exceed the line items set forth in the pro forma operating budget delivered
pursuant to Section
4.1(n) for such Fiscal Year, and (ii) May 1, 2012, which shall also
specify those line items that exceed the line items set forth in the operating
budget delivered pursuant to sub-clause (i) of this Section 6.1(e) for
such Fiscal Year.

     

    (f)           Gaming Tax
Returns.  Borrower shall, and shall cause Operator to, furnish
to Agent concurrently with Operator’s filing of a gaming tax return with a
Governmental Authority, a copy of such gaming tax return, completed and signed
on behalf of Operator.

     

    (g)          Further Financial
Information.  Such further financial information concerning
each Credit Party’s financial performance, and the New Card Rooms’ operations
and finances, on an individual and/or consolidated basis, as Agent may
reasonably request from time to time.

     

    (h)          Compliance
Certificate.  Together with the financial statements and other
financial information required to be furnished under Section 6.1(a) and
Section 6.1(c),
a Compliance Certificate.

     

    (i)           ERISA
Matters.  Within 270 days after the close of each Fiscal Year,
a statement of the Unfunded Liabilities of each Single Employer Plan, certified
as correct by an actuary enrolled under ERISA or deemed competent under
applicable foreign legislation.  As soon as possible and in any event
within ten (10) days after Borrower knows that any ERISA Event has occurred with
respect to any Plan, a statement, signed by the Chief Financial Officer of
Borrower, describing said ERISA Event and the action which Borrower proposes to
take with respect thereto.

     

    (j)           Environmental
Matters.  As soon as possible and in any event within ten (10)
days after receipt by Borrower, a copy of (a) any notice or claim to the
effect that Borrower or any of its Subsidiaries is or may be liable to any
Person as a result of the Release by Borrower, any of its Subsidiaries, or any
other Person of any Contaminant into the environment, and (b) any notice
alleging any violation of any Environmental, Health or Safety Requirements of
Law by Borrower or any of its Subsidiaries.

     

    (k)          Good Standing
Certificates.  Together with the annual financial statements
delivered pursuant to Section 6.1(a), for
each Credit Party and each other Person which has pledged collateral in support
of the Obligations, a copy of the results of a search of such Person at the
appropriate governmental department or registry in its jurisdiction of
incorporation or organization evidencing on its face the status of such Person
in that jurisdiction as of the date the annual financial statements are
delivered pursuant to Section
6.1(a).

     

    (l)           Events of
Default.  Promptly upon Borrower obtaining Knowledge
(a) of any condition or event which constitutes a Default or Unmatured
Default, or becoming aware that any Lender or Agent has given any written notice
with respect to a claimed Default or Unmatured Default, (b) that any Person
has given any notice to any Credit Party or taken any other action with respect
to a claimed default or event or condition of the type referred to in Section 8.7, Section 8.8 or Section 8.9, or
(c) of any condition or event which has or is reasonably likely to result
in a Material Adverse Effect, Borrower shall deliver to Agent and Lenders a
certificate executed by an officer of Borrower specifying (A) the nature
and period of existence of any such claimed default, Default, Unmatured Default,
condition or event, (B) the notice given or action taken by such Person in
connection therewith, and (C) the remedial action any Credit Party has
taken, is taking and proposes to take with respect thereto.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    (m)         Lawsuits.  Promptly
upon (and, in any event, within ten (10) Business Days after) Borrower obtaining
Knowledge of the institution of, or written threat of, any Claim, action, suit,
proceeding, governmental investigation, any allegation of defective pricing, or
any arbitration against or affecting any Credit Party or any Property of any
Credit Party not previously disclosed pursuant to Section 5.7, which
action, suit, proceeding, governmental investigation or arbitration exposes, or
in the case of multiple actions, suits, proceedings, governmental investigations
or arbitrations arising out of the same general allegations or circumstances
which expose, in Borrower’s reasonable judgment, any Credit Party (or the Credit
Parties as a whole) to liability in an amount aggregating US$100,000 or more
(exclusive of claims covered by insurance policies of any Credit Party unless
the insurers of such claims have disclaimed coverage or reserved the right to
disclaim coverage on such claims which has or which could be expected to result
in a Material Adverse Effect), Borrower shall give written notice thereof to
Agent and Lenders and provide such other information as may be reasonably
available to enable each Lender and Agent and its counsel to evaluate such
matters.

     

    (n)          Insurance.  As
soon as practicable and in any event by the last day in each Fiscal Year,
Borrower shall deliver to Agent (a) a report in form and substance
reasonably satisfactory to Agent outlining all material insurance coverage
(including any self-insurance provided by any Credit Party (if any) but
excluding health, medical, dental and life insurance (other than key man life
insurance)) maintained as of the date of such report by any Credit Party on
their behalf and the duration of such coverage and (b) evidence that all
premiums then due and payable with respect to such coverage have been paid
(except as otherwise agreed to by Agent).

     

    (o)          Labor
Matters.  Borrower shall notify Agent and Lenders in writing,
promptly after Borrower has Knowledge of (a) any material labor dispute to
which any Credit Party is or may become a party, including, without limitation,
any strikes, lockouts or other disputes relating to such Persons’ plants and
other facilities and (b) any liability (arising pursuant to the Worker
Adjustment and Retraining Notification Act or otherwise) incurred with respect
to the closing of any plant or other facility of such Persons.

     

    (p)          Material Debt
Notices.  Borrower shall deliver a copy to Agent and Lenders of
any notice or other communication received by any Credit Party from any Person
alleging the occurrence in connection with any Indebtedness described in Section 8.6 of an
event described in such Section, promptly after such notice or other
communication is received from such Person.

     

    (q)          Landlord
Communications.  Borrower shall deliver a copy to Agent of any
notice or other communication received by any Credit Party or the Service
Supplier (if not a Credit Party) from any landlord of the Mortgaged Properties
and the New Card Rooms, promptly after such notice or other communication is
received from such Person;

     

    (r)           Notice of Material Adverse
Effect.  Borrower will, and will cause each other Credit Party
to, give prompt notice in writing to Agent and Lenders of the occurrence of any
other development, financial or otherwise, which could reasonably be expected to
have a Material Adverse Effect.

     

    (s)          Condemnation.  Immediately
upon learning of the institution of any proceeding for the condemnation or other
taking of any of the owned or leased Real Property of any Credit Party, Borrower
shall notify Agent of the pendency of such proceeding, and permit Agent to
participate in any such proceeding, and from time to time will deliver to Agent
all instruments reasonably requested by Agent to permit such
participation.

     

    (t)          Additional
Information.  Within five (5) Business Days after request
therefor, such other information (including non financial information) as Agent
or any Lender may from time to time reasonably request.

     

    (u)          Anti-Terrorism and
Anti-Money Laundering Law Notices.  Borrower shall immediately
notify Agent if Borrower obtains Knowledge that any holder of a direct or
indirect interest in any Credit Party or any Subsidiary thereof, or any
director, manager or officer of any of such holder, (a) has been listed on
any of the Lists, (b) has become a Designated Person, (c) is under
investigation by any governmental authority for, or has been charged with or
convicted of, money laundering drug trafficking, terrorist-related activities or
other money laundering predicate crimes, or any violation of any
Anti-Money-Laundering Laws or Anti-Terrorism Laws, (d) has been assessed
civil penalties under any Anti-Money Laundering Laws, or (e) has had funds
seized or forfeited in an action under any Anti-Money Laundering
Laws.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    Section
6.2            Application of Acquisition
Finance Consideration.

     

    (a)           Borrower
will cause Operator to apply the Acquisition Finance Consideration solely to
purchase the Purchased Assets.

     

    (b)           Borrower
will not, nor will it permit any Credit Party to apply the Acquisition Finance
Consideration to purchase or carry any “margin stock” (as defined in Regulation
U) or to make any Acquisition other than of the Purchased Assets.

     

    Section
6.3            Further
Assurances.

     

    (a)           Borrower
shall execute and deliver, and cause each Credit Party to execute and deliver,
within the time periods set forth with respect to such items on the Closing List
(as the same may be extended by Agent in its sole discretion), all agreements,
documents and instruments designated as “Post Closing Items” on the Closing
List.

     

    (b)           In
addition to and not in lieu of the rights and obligations of the parties under
Section 6.3(a)
above, at any time and from time to time, promptly following Agent’s written
request and at the expense of the applicable Person, Borrower agrees to duly
execute and deliver, and to cause the Credit Parties to duly execute and
deliver, any and all such further instruments and documents and take such
further action as Agent may reasonably deem desirable in order to perfect and
protect any Lien granted or purported to be granted pursuant to the Collateral
Documents or to enable Agent, in accordance with the terms of the applicable
Loan Documents, to exercise and enforce its rights and remedies under the Loan
Documents with respect to such Collateral. Notwithstanding the foregoing, the
granting of such further assurances or Lien under this Section 6.3 shall not
be required if it would (A) be prohibited by applicable law, or
(B) result in material adverse tax consequences to Borrower.

     

    Section
6.4            Conduct of
Business.  Borrower
will cause Operator to only conduct business with respect to the ownership and
operation of the New Card Rooms, and Borrower will, and will cause Operator to,
do all things necessary to remain duly incorporated or organized, validly
existing and (to the extent such concept applies to such entity) in good
standing as a Delaware limited liability company (in the case of Borrower) and a
Washington State limited liability company (in the case of Operator) and to
maintain all requisite authority to conduct its business in each jurisdiction in
which its business is conducted.  Borrower shall be a non-operating
holding company of Operator at all times.

     

    Section
6.5            Taxes.  Borrower
will, and will cause each other Credit Party to, timely file complete and
correct United States federal, state  and local Returns required by
law and pay in full when due (a) all Taxes, and (b) all Claims
(including, without limitation, claims for labor, services, materials and
supplies) which have become due and payable and which by law have or may become
a Lien (other than a Permitted Lien) upon any Credit Party’s Property or assets
prior to the time when any penalty or fine shall be accrued with respect
thereto, except in each case those which are being contested in good faith by
appropriate proceedings being diligently prosecuted and with respect to which
adequate reserves have been set aside in accordance with GAAP and only for so
long as the enforcement and ability of any taxing authority to impose a Lien
with respect thereto or force payment thereon is effectively
stayed.  Borrower shall promptly pay or cause to be paid any valid
judgment enforcing any such Taxes and cause the same to be satisfied of
record.

     

    Section
6.6            Insurance.  Borrower
will, and will cause each Credit Party to, maintain with reputable insurance
companies rated no less than “A-, VIII” by A.M. Best (or an equivalent rating by
another insurance rating company reasonably satisfactory to Agent) insurance on
all of their Collateral, wherever located, in such amounts and covering such
risks as is consistent with sound business practice (including, without
limitation, loss or damage by fire or explosion, business interruption and
public liability insurance, as well as insurance against larceny, embezzlement,
and criminal misappropriation) and, in all cases, acceptable to Agent, and
Borrower will furnish to Agent and any Lender upon request full information
(including documentation) as to the insurance carried.  Each
certificate and policy relating to the Collateral and/or business interruption
coverage shall contain an endorsement, in form and substance acceptable to
Agent, showing loss payable to Agent, for the benefit of Lenders, and, if
required by Agent, naming Agent as an additional insured under such
policy.  Each certificate and policy relating to coverage other than
the foregoing shall, if required by Agent, contain an endorsement naming Agent
as an additional insured under such policy.  Such endorsement or an
independent instrument furnished to Agent shall provide that the insurance
companies will give Agent at least thirty (30) days’ written notice before any
such policy or policies of insurance shall be altered adversely to the interests
of Lenders or cancelled (for non-payment of premium or otherwise) and that no
act, whether willful or negligent, or default of any Credit Party or any other
Person shall affect the right of Agent to recover under such policy or policies
of insurance in case of loss or damage.  In the event any Credit
Party, at any time or times hereafter shall fail to obtain or maintain any of
the policies or insurance required herein or to pay any premium in whole or in
part relating thereto, then Agent, without waiving or releasing any obligations
or resulting Default hereunder, may at any time or times thereafter (but shall
be under no obligation to do so) obtain and maintain such policies of insurance
and pay such premiums and take any other action with respect thereto which Agent
deems advisable. All sums so disbursed by Agent shall be part of the
Obligations, payable as provided in this Agreement.  The annual
premium for each policy of insurance required pursuant to this Section 6.6 shall be
payable, in accordance with its terms, for the first three (3) calendar months
of the term of each such policy in advance, and, from the beginning of the third
calendar month thereafter, monthly in advance for the remainder of the annual
term of each such policy.

    
       

      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    Section
6.7            Compliance with
Laws.  Borrower
will, and will cause each other Credit Party to, comply with all Requirements of
Law to which it may be subject including, without limitation, all Gaming Laws,
Liquor Laws, Environmental, Health or Safety Requirements of Law, ERISA,
Anti-Terrorism Laws and Anti-Money Laundering Laws.

     

    Section
6.8            Maintenance of
Properties.  Borrower
will, and will cause Operator and Service Supplier to, do all things necessary
to maintain, preserve, protect and keep its Property in good repair, working
order and condition, and make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted at all times (including, without limitation, the Card Rooms
and the Property relating thereto).

     

    Section
6.9            Books and Records;
Inspection.  Borrower
will maintain, for itself, and shall cause each other Credit Party to maintain,
a system of accounting established and administered in accordance with
GAAP.  Borrower will not permit Parent to allocate its corporate
overhead costs and expenses to the Borrower or Operator, or to Operator’s
businesses, other than Permitted Management Expenses.  Borrower will,
and will cause each other Credit Party to, permit Agent and Lenders, by their
respective representatives and agents, to inspect any of the Property, books and
financial records of Borrower and each other Credit Party, to examine and make
copies of the books of accounts and other financial records of Borrower and each
other Credit Party, and to discuss the affairs, finances and accounts of
Borrower and each other Credit Party with, and to be advised as to the same by,
their respective officers, management personnel and independent certified public
accountants, at such reasonable times and intervals as Agent or any Lender may
designate.  Each such visitation shall be at Lenders’ expense unless
such visitation occurs following a Default or Unmatured Default or a Default or
Unmatured Default occurs or is discovered during such visitation in which event
such visitation shall be at Borrower’s expense.  Borrower shall, and
shall cause the other Credit Parties to, obtain as needed all material Permits
necessary for their operations, and shall maintain such Permits in good
standing.

     

    Section
6.10          Distributions and
Dividends.  Borrower
will not, and will not permit Operator to, declare or pay any dividends or make
any distributions on its Capital Stock or redeem, repurchase or otherwise
acquire or retire any of its Capital Stock at any time outstanding
except:

     

    (a)           Subject
to Section
2.18, an aggregate amount up to but not exceeding $660,000 in any one
Fiscal Year to Parent from Excess Cash Flow for the sole purpose of Parent
paying interest (other than default interest) on the Rogers’ Note, and any such
distribution shall be made no earlier than two (2) Business Days prior to the
applicable interest payment date under the Rogers’ Note and in an amount not
exceeding the scheduled interest payable on such interest payment
date.

     

    (b)           Subject
to Section
2.18, distributions by Borrower to Parent made in accordance with Section
2.3(c).

     

    Section
6.11           Indebtedness.

     

    (a)           Borrower
will not, nor will it permit Operator to, create, incur or suffer to exist any
Indebtedness, except:

     

    (i)         
  the Obligations.

     

    (ii)           Indebtedness
of Operator for unsecured trade payables incurred in the Ordinary Course of
Business, not to exceed a commercially reasonable amount at any time, as
determined by Agent in its sole discretion.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
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    (iii)           Subject
to an Approved CapEx Budget then being in effect, Capital Lease Obligations
incurred with respect to gaming equipment used in the New Card Rooms not in
excess of the line-item amount attributable thereto in such Approved CapEx
Budget.

     

    (iv)           Indebtedness
existing on the Effective Date and set forth on Schedule
5.14.

     

    Section
6.12           Merger.  Borrower
will not, nor will it permit Operator to, merge or consolidate with or into any
other Person.

     

    Section
6.13           Sale of
Assets.

     

    (a)           Borrower
will not, nor will it permit Operator to, lease, sell or otherwise dispose of
its Property (including, without limitation, sales of any of the Purchased
Assets) to any other Person without the Agent’s prior written consent (which may
be withheld in Agent’s sole discretion), except:

     

    (i)         
  Sales or other dispositions of furniture, fixtures and equipment of
the New Card Rooms that is substantially worn, damaged, or obsolete in the
Ordinary Course of Business.

     

    (ii)           Sales
of inventory of the New Card Rooms to customers in the Ordinary Course of
Business.

     

    (iii)          Sales
of other Property of the Operator in the Ordinary Course of Business that are
not, individually or in the aggregate, material to the operation of any New Card
Room.

     

    (b)           Borrower
will not permit NG Washington to lease, sell, or otherwise dispose of all or
substantially all of its Property.

     

    Section
6.14          Investments and
Acquisitions.  Borrower
will not, nor will it permit Operator to, make or suffer to exist any
Investments in any entity, or commitments therefor, or to create any Subsidiary
or to become or remain a partner in any partnership or joint venture, or to make
any Acquisition, except:

     

    (a)           Cash
Equivalent Investments.

     

    (b)           Existing
Investments in the Operator described in Schedule 5.8.2.

     

    Section
6.15          Liens.  Borrower
will not, nor will it permit Parent or Operator to, create, incur, or suffer to
exist any Lien in, of or on the Property of Borrower or Operator or over the
Capital Stock of Borrower or Operator, except:

     

    (a)           Liens
for Taxes, assessments or governmental charges or levies on its Property if the
same shall not at the time be delinquent or thereafter can be paid without
penalty, or are being contested in good faith and by appropriate proceedings and
for which adequate reserves in accordance with GAAP shall have been set aside on
its books.

     

    (b)           Liens
imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and other
similar liens arising in the Ordinary Course of Business which secure payment of
obligations not more than sixty (60) days past due or which are being contested
in good faith by appropriate proceedings and for which adequate reserves shall
have been set aside on its books.

     

    (c)           Liens
arising out of pledges or deposits under worker’s compensation laws, fair labor
or employment standards, unemployment insurance, old age pensions, or other
social security or retirement benefits, or similar legislation.

     

    (d)           Utility
easements, building restrictions and such other encumbrances or charges against
real property as are of a nature generally existing with respect to properties
of a similar character and which do not in any material way affect the
marketability of the same or interfere with the use thereof in the business of
Borrower or Operator.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    (e)           Liens
over gaming equipment leased in the ordinary course of business and used in the
New Card Rooms.

     

    (f)          
 Liens in favor of Agent, for the benefit of Agent and Lenders, granted
pursuant to any Collateral Document.

     

    (g)           Liens
existing on the Effective Date and set forth on Schedule
5.14.

     

    Section
6.16          Affiliate
Transactions.  Borrower
will not, and will not permit Operator to, enter into any transaction, contract,
agreement or instrument (including, without limitation, the purchase or sale of
any Property or service) with any of its Affiliates except (a) with each other,
and (b) the Management Agreement and a tax sharing agreement between Operator
and Parent; or make any payment or incur any payment obligation or make any
transfer to any of its Affiliates except payments by Operator to Parent of
Permitted Management Fees and Permitted Management Expenses.

     

    Section
6.17          Amendments to
Agreements.  Borrower
will not, and will not permit any other Credit Party to, amend or terminate any
of its Constituent Documents (x) in any way adverse to Agent or any Lender,
or (y) that would result in the Constituent Documents prohibiting or
conflicting with the pledge of Capital Stock issued by a Credit Party to Agent
and Lenders as required hereby or otherwise prohibiting, limiting or restricting
Agent’s and its successors’ and assigns’ exercise of all rights and remedies
under the Pledge Agreement, including, without limitation, the acquisition of
ownership of such Capital Stock and Borrower’s and Operator’s elections to treat
its limited liability company interests as a “security” under Section 8-103
of the UCC.  Borrower will not permit Operator to amend any Lease with
respect to a Mortgaged Property, or any part thereof, without the prior written
consent of Agent (which consent shall not to be unreasonably
withheld).  Borrower will not, and will not permit Operator to, make
any amendments to any other material agreements to which Borrower and/or
Operator is a party without the prior written consent of Agent (which consent
shall not to be unreasonably withheld) other than amendments which could not
reasonably be expected to have a Material Adverse Effect.

     

    Section
6.18           Deposit and Securities
Accounts; Tax,
Insurance and CME Reserves.  To
the extent not prohibited by the WSGC:

     

    (a)           Prior
to the deposit of any cash related to the operations of any New Card Room into
any Deposit Account held by Borrower or Operator (other than player funds
required to be deposited in player-supported jackpot accounts), such Deposit
Account shall be subject to a Control Agreement among Borrower or Operator, as
accountholder, the Account Bank and Agent with respect to such Deposit Account
(other than player-supported jackpot accounts).

     

    (b)           Prior
to the establishment of any Securities Account by Borrower or Operator, such
party shall enter into a Control Agreement with respect to such Securities
Account.

     

    (c)           Neither
Borrower nor Operator has any Deposit Accounts into which cash related to the
New Card Rooms is or shall be deposited by or on behalf of either Borrower or
Operator other than the Deposit Accounts held at the Account Bank which are
subject to Control Agreements in full force and effect as of the Effective Date
(including, without limitation, the Tax Reserve, the Insurance Reserve and the
CME Reserve but excluding player-supported jackpot accounts).  Neither
Borrower nor Operator has any Securities Account other than the Securities
Accounts (if any) which are each subject to a Control Agreement in full force
and effect, as of the Effective Date.

     

    Section
6.19           Sale of
Accounts.  Borrower
will not, nor will it permit Operator to, sell or otherwise dispose of any notes
receivable or accounts receivable, with or without recourse.

     

    Section
6.20          Sale and Leaseback
Transactions and other Off-Balance Sheet Liabilities.  Borrower
will not, nor will it permit Operator to, enter into or suffer to exist any
(a) Sale and Leaseback Transaction or (b) any other transaction
pursuant to which it incurs or has incurred Off-Balance Sheet
Liabilities.

     

    Section
6.21          Contingent
Obligations.  Borrower
will not, nor will it permit Operator, to make or suffer to exist any Contingent
Obligation, except for the Guaranty.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
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    Section
6.22          Letters of
Credit.  Borrower
will not, nor will it permit Operator to, apply for or become liable upon or in
respect of any Letter of Credit, except Letters of Credit required by law or
regulatory authority in each case applicable to or binding upon Borrower or
Operator or any of its Property or to which Borrower or Operator or any of its
Property is subject, not to exceed in aggregate US$25,000 or such larger amount
as agreed by Agent.

     

    Section
6.23           Financial
Covenants.

     

    (a)           Borrower
shall not permit the ratio of (i) Funded Indebtedness to (ii) TTM Adjusted
EBITDA, on a consolidated basis with Operator, and calculated at the end of each
Fiscal Quarter, beginning with the Fiscal Quarter ending January 31, 2011, to be
greater than the maximum ratio set forth in the table below opposite the
applicable calculation date:

     

    
      
        
          	
                  Fiscal Quarter End

                	
                  Maximum Ratio

                
	
                  January
      31, 2011

                	
                  3.5:1.0

                
	 
      	 
      
	
                  April
      30, 2011

                	
                  3.5:1.0

                
	 
      	 
      
	
                  July
      31, 2011

                	
                  3.0:1.0

                
	 
      	 
      
	
                  October
      31 , 2011

                	
                  3.0:1.0

                
	 
      	 
      
	
                  January
      31, 2012

                	
                  3.0:1.0

                
	 
      	 
      
	
                  April
      30, 2012

                	
                  3.0:1.0

                
	 
      	 
      
	
                  July
      31, 2012

                	
                  2.0:1.0

                
	 
      	 
      
	
                  October
      31, 2012

                	
                  2.0:1.0

                
	 
      	 
      
	
                  January
      31, 2013

                	
                  2.0:1.0

                
	 
      	 
      
	
                  April
      30, 2013

                	
                  2.0:1.0

                

        

      

    

     

    (b)           Borrower
shall not permit:

     

    (i)      
     NG Washington’s TTM EBITDAM on a non-consolidated
basis, as calculated at the end of each Fiscal Quarter, beginning with the
Fiscal Quarter ending October 31, 2010, to be less than $2,500,000

     

    (ii)           the
principal amount of Indebtedness of NG Washington outstanding at any time to be
in excess of $4,150,000 in aggregate; and

     

    (iii)           scheduled
payments of interest (excluding default interest) on the principal amount
outstanding of Indebtedness of NG Washington to be greater than $280,000 in
aggregate in any one Fiscal Year.

     

    Section
6.24          Capital
Expenditures.  Borrower
shall not permit Operator to incur or pay in aggregate for any Fiscal Year,
Capital Expenditures in excess of the aggregate of Approved Capital Expenditures
for that Fiscal Year.

     

    Section
6.25           Management Fees, Management
Expenses and Interest Expense.

     

    (a)           Borrower
shall not, and shall not permit Operator, to incur or pay management fees to the
Service Supplier pursuant to the Management Agreement in an amount exceeding
three percent (3%) of Operator’s Gross Revenues (“Permitted Management
Fees”), such payments to be made on an Interest Payment
Date.  If Operator wishes to pay Parent Permitted Management Fees more
frequently than on an Interest Payment Date, it shall only be permitted to do so
pursuant to an amendment to this Agreement between Borrower, Agent and Lenders
providing for the establishment of an interest reserve into which weekly
interest accrued on the Loans is to be funded acceptable to Agent and Lenders in
their sole discretion.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    (b)           Borrower
shall not make, and shall not permit Operator to make any payments to, or
reimburse any out-of-pocket fees, costs and expenses incurred by Parent, or
contract for or otherwise incur any payment or reimbursement obligation to
Parent, whether in Parent’s capacity as Service Supplier pursuant to the terms
of the Management Agreement, in its capacity as purchaser of services for and on
behalf of its Subsidiaries or otherwise, other than, with respect to the
Operator, the following payments to and reimbursements of Parent (collectively,
“Permitted Management
Expenses”):

     

    (i)       
    with respect to each separate category of expense
specified on Exhibit
N, an aggregate amount for each such category not exceeding, without the
prior written consent of Agent, one hundred and twenty percent (120%) of the
amounts specified therefor on Exhibit N for the
applicable Fiscal Year, and any such costs and expenses shall only be paid or
reimbursed to Parent to the extent reasonably incurred by Parent on behalf of
Operator and reasonably allocated to Operator by Parent; and

     

    (ii)           with
respect to travel expenses, such expenses reasonably incurred by Parent on
behalf of Operator and reasonably allocated to Operator by Parent.

     

    Each
category of Permitted Management Expenses projected to be payable by Borrower to
Parent shall in each case be set forth as separate line items in each operating
budget delivered to Agent pursuant to Section 4.1(n) and
6.1(e).  Any
payment to or reimbursement of Parent by Operator permitted by this Section 6.25 shall be
made on an Interest Payment Date, or more frequently subject to Borrower’s
election provided for in the last sentence of Section 6.25(a) and
satisfaction of the conditions provided for therein.

     

    (c)           Borrower
shall not, and shall not permit Operator to pay interest on any Indebtedness,
except for interest on Indebtedness permitted to be incurred under Section 6.11 and due
and payable on a non-accelerated basis.

     

    Section
6.26          Negative
Pledge.  Borrower
shall not, and shall not permit any other Collateral Party, to enter into,
assume or become subject to any contractual obligation prohibiting or otherwise
restricting the existence of any Lien upon any of its assets (in the case of
Borrower and Operator) or upon the Capital Stock owned by Parent in Borrower (in
the case of Borrower and Parent) in favor of the Agent, whether now owned or
hereafter acquired except in connection with any document or instrument
governing Permitted Liens, provided that, other
than Permitted Liens granted pursuant to the Transaction Documents in favor of
the Agent, any such restriction contained therein relates only to the asset or
assets subject to such Permitted Liens and any UCC financing statements filed in
relation thereto describes as collateral only those asset or assets subject to
such Permitted Lien and no other asset or assets of such Collateral
Party.

     

    Section
6.27          Compliance with Anti-Money
Laundering Laws and Anti-Terrorism Laws.  Borrower
agrees that it shall continue to take, and shall cause each Credit Party to
take, reasonable measures (including, without limitation, the adoption of
adequate policies, procedures and internal controls) appropriate to the
circumstances (in any event as required by applicable Requirements of Law), to
ensure that such Person is and shall be in compliance with all current and
future Anti-Money Laundering Laws and Anti-Terrorism Laws and all other
applicable Requirements of Law and governmental guidance for the prevention of
terrorism, terrorist financing and drug trafficking. Borrower shall not, and
shall not permit any Credit Party or any of its Subsidiaries
to:  (a) violate any of the prohibitions set forth in the
Anti-Terrorism Laws applicable to any of them or the business that they conduct,
or (b) require Agent or Lenders to take any action that would cause Agent
or Lenders to be in violation of the prohibitions set forth in the
Anti-Terrorism Laws, it being understood that Agent or any Lender can refuse to
honor any such request or demand otherwise validly made by Borrower under this
Agreement or any Loan Document. Borrower also shall not, and shall not permit
any Credit Party to, directly or indirectly, (i) Knowingly conduct any
business or engage in making or receiving any contribution of funds, goods or
services to or for the benefit of any Designated Person or any other Person
identified in any List, (ii) Knowingly deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant
to any Anti-Terrorism Law, (iii) repay the Loans with any funds derived
from any unlawful activity with the result that the making of the Loans would be
in violation of law, or (iv) Knowingly engage in or conspire to engage in
any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law (and Borrower shall deliver to Agent any certification or
other evidence requested from time to time by Agent in its reasonable
discretion, confirming compliance with this Section
6.27).

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    Section
6.28           Prohibited
Events.  Borrower
shall not permit to occur or cause to permit to occur any of the following
events:

     

    (a)           the
adoption of a plan relating to the liquidation or dissolution of any Credit
Party; or

     

    (b)           any
event deemed to be a change of control (or similar concept) in any
agreement, contract or other document other than a Loan Document to which a
Credit Party is party.

     

    Section
6.29          Trade
Names.  Promptly
upon (and, in any event, within three (3) Business Days after) Borrower’s or
Operator’s receipt of any correspondence from or on behalf of a third party (a)
demanding that Borrower or Operator cease using a trade name or trademark that
such third party claims infringes an intellectual property right of that third
party, or (b) otherwise questioning or challenging in any way the use of a
trade name by Borrower or Operator, Borrower shall, or shall procure that
Operator shall, deliver copies of all such correspondence to Agent.

     

    Section
6.30           New
Subsidiaries.  Borrower
shall not, and shall not permit Operator to, form or acquire any additional
Subsidiaries, without the prior written consent of Agent.

     

    Section
6.31          Gaming and Liquor
Licensing.  Borrower
shall not apply for any license issued by the WSGC or make any application to
the WSGC to become so licensed unless the WSGC requires Borrower to be so
licensed, provided that if such
requirement to be licensed is caused by an act or omission of Borrower or any
Affiliate thereof, Borrower shall still be in breach of this covenant unless
such act or omission is necessary to comply with the express terms and
conditions of this Agreement.

     

    Section
6.32           Fiscal
Year.  Borrower
shall not, and shall not permit any other Credit Party to, change its Fiscal
Year without the prior written consent of Agent.

     

    ARTICLE
7

     

    RESERVES

     

    Section
7.1           
 Tax
Reserve.

     

    (a)           Borrower
shall cause Operator to establish and maintain at all times while this Agreement
continues in effect a reserve (the “Tax Reserve”) for
payment of federal income Taxes and gaming Taxes arising from the operation of
the New Card Rooms (“Federal Taxes” and
“Gaming Taxes”,
respectively) and for payment of real estate Taxes on the Mortgaged Properties
(“Real Estate
Taxes” and, together with Federal Taxes and Gaming Taxes, “Reserved
Taxes”).  The Tax Reserve shall be maintained in a segregated
Deposit Account at the Account Bank opened in the name of Operator on or prior
to the Effective Date solely for the purpose of this Section 7.1, which
shall be subject to a Control Agreement.

     

    (b)           Borrower
shall, or shall cause Operator to, deposit in the Tax Reserve on or prior to the
Effective Date twenty five percent (25%) of the average monthly Gaming Taxes and
Real Estate Taxes estimated by Agent in its sole discretion prior to the
Effective Date to be payable or, if not payable on a monthly basis, accrued, by
Operator for that portion of the Fiscal Year beginning on the Effective Date and
ending on April 30, 2011 (the “Initial Tax Reserve Deposit
Amount”), for each New Card Room being purchased on the Effective
Date.  Prior to any subsequent Purchase Agreement Closing Date (if
any), Borrower shall similarly deposit in the Tax Reserve the Initial Tax
Reserve Deposit Amount for each New Card Room being purchased on that
date.

     

    (c)           Borrower
shall, or shall cause Operator to further deposit in the Tax Reserve on a
monthly basis an additional amount:

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    (i)     
      during the first three (3) calendar months
following the Effective Date or, with respect to those New Card Rooms purchased
on any subsequent Purchase Agreement Closing Date (if any), following that date,
an aggregate amount necessary to ensure that no later than the end of such three
(3) calendar month period there is not less than one hundred percent (100%) of
the average monthly Gaming Taxes and Real Estate Taxes estimated by Agent in its
sole discretion prior to the Effective Date to be payable by Operator when
initially due or, if not payable on a monthly basis, accrued for the immediately
preceding calendar months; and

     

    (ii)           for
each subsequent calendar month, subject to Section
7.1(e):

     

    (A)           no
later than concurrently with Borrower’s delivery of monthly financial statements
pursuant to Section
6.1(d) an amount necessary to reserve for one hundred percent (100%) of
the Gaming Tax liabilities accrued and/or payable by Operator for the calendar
month to which such financial statements relate based on the operational results
for that calendar month set forth in such financial statements; and

     

    (B)           the
average monthly Real Estate Taxes estimated by Agent in its sole discretion
prior to the Effective Date to ensure that there is not less than one hundred
percent (100%) of Real Estate Taxes reserved in the Tax Reserve to pay Real
Estate Taxes when initially due; provided that as soon
as Borrower or Operator becomes aware of an increase in the Real Estate tax
liability of Operator (whether by notice from Agent or otherwise), the Borrower
or Operator shall increase the amount it pays into the Tax Reserve on a monthly
basis commensurate with such increase.

     

    (d)           Subject
to Section
7.1(e), beginning with the first full calendar month following the
Effective Date and the first full calendar month of any subsequent Fiscal Year,
Borrower shall, or shall cause Operator to deposit in the Tax Reserve on a
monthly basis no later than concurrently with Borrower’s delivery of monthly
financial statements pursuant to Section 6.1(d) an
amount necessary to provide for the payment when initially due of one hundred
percent (100%) of Federal Income Taxes on the taxable income arising from the
operations of the New Card Rooms as reflected in such monthly financial
statements.  In determining the monthly amounts required to be
reserved under this Section 7.1(d), the
Borrower will apply the then federal income tax rate applicable to the Operator
to the taxable income arising from the operational results of the New Card Rooms
for the applicable calendar month.

     

    (e)           The
aggregate required minimum balance of the Tax Reserve under this Section 7.1 (the
“Tax Reserve Required
Minimum Balance”) may be (i) increased or decreased at any time, in
Agent’s sole discretion, pursuant to a change in Law or in anticipation of a
proposed change in Law that increases or decreases or would be reasonably likely
to increase or decrease, as applicable, Operator’s liability for any Reserved
Taxes and (ii) increased or decreased, in Agent’s sole discretion, not more than
once every three (3) calendar months to the extent that the Agent determines
that the actual operating results for any New Card Room or the New Card Rooms
collectively, warrant an increase or decrease in the Tax Reserve Required
Minimum Balance.  To the extent that any adjusted Tax Reserve Required
Minimum Balance determined by the Agent is higher than the then actual balance
of the Tax Reserve, the Borrower shall cause the Operator to cure such
deficiency promptly and in any event within thirty (30) days following notice to
the Borrower of an adjustment made pursuant to sub-clause (i) or (ii)
above.

     

    (f)           Borrower
shall, or shall cause Operator to, deposit in the Tax Reserve on each Interest
Payment Date, an aggregate amount sufficient to maintain the then effective Tax
Reserve Required Minimum Balance for each of the New Card Rooms.

     

    (g)           So
long as no Default or Unmatured Default has occurred and is continuing, Borrower
shall cause Operator to apply all amounts in the Tax Reserve necessary to pay
Reserved Taxes to the Governmental Authority directly (or indirectly through
Parent to the extent permitted by Section 6.25(b)) on
or prior to the initial due date therefor.  Borrower shall be
responsible for ensuring the receipt by Agent, at least fifteen (15) days prior
to the initial due dates for payment of Reserved Taxes, of all bills, invoices
and statements for all Reserved Taxes to be paid from the Tax
Reserve.

     

    (h)           Any
failure to have sufficient funds in the Tax Reserve to pay all Reserved Taxes
when initially due and payable shall not excuse any failure by Borrower or
Operator to pay all such amounts at such time as otherwise required under this
Agreement.

      

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
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    (i)           All
interest and other proceeds paid on the funds deposited in the Tax Reserve shall
accrue to the benefit of Operator; provided, however,
that Borrower shall cause Operator to retain such amounts in the Tax Reserve
together with all other amounts from time to time in the Tax Reserve until
applied to pay Reserved Taxes in accordance with this Section 7.1 or until
all Obligations have been Paid in Full or as otherwise consented to in writing
by Agent.

     

    Section
7.2            Insurance
Reserve.

     

    (a)           Borrower
shall cause Operator to establish and maintain at all times while this Agreement
continues in effect a reserve for payment of all premiums to obtain or maintain
insurance required under this Agreement (the “Insurance
Reserve”).  The Insurance Reserve shall be maintained in a
segregated Deposit Account at the Account Bank opened in the name of Operator on
or prior to the Effective Date solely for the purpose of this Section 7.2, which
shall be subject to a Control Agreement.

     

    (b)           Borrower
shall, or shall cause Operator to, deposit in the Insurance Reserve on or prior
to the Effective Date an amount equal to twenty five percent (25%) of the
aggregate monthly insurance premiums payable by Operator in respect of all New
Card Rooms being purchased on the Effective Date (the “Initial Insurance Reserve
Deposit Amount”).  Prior to any subsequent Purchase Agreement
Closing Date (if any), Borrower shall similarly deposit in the Insurance Reserve
the Initial Insurance Reserve Deposit Amount for each New Card Room being
purchased on that date.

     

    (c)           Borrower
shall, or shall cause Operator to further deposit in the Insurance Reserve
during the first three (3) calendar months following the Effective Date or, with
respect to those New Card Rooms purchased on any subsequent Purchase Agreement
Closing Date (if any), following that date, an aggregate amount necessary to
ensure that no later than the end of such three (3) calendar month period, there
is not less than one hundred percent (100%) of the aggregate monthly insurance
premiums due deposited in the Insurance Reserve (the “Insurance Reserve Minimum
Required Balance”).  Borrower shall, or shall cause Operator to
further deposit in the Insurance Reserve on a monthly basis on each Interest
Payment Date, an additional amount equal to one hundred percent (100%) of the
insurance premiums initially due during such calendar month.

     

    (d)           The
Insurance Reserve Required Minimum Balance for each insurance policy required to
be maintained pursuant to Section 6.6 shall be
increased during the last three (3) months of the annual term of each such
policy to the extent necessary to ensure that there are sufficient funds on
deposit in the Insurance Reserve at the end of each annual policy term to pay
the first three (3) months annual premium in advance on renewal or replacement
of such policy.

     

    (e)           To
the extent that any adjusted Insurance Reserve Required Minimum Balance
determined by the Agent is higher than that in effect, the Borrower shall cause
the Operator to cure such deficiency within thirty (30) days following notice
thereof from the Agent.

     

    (f)           So
long as no Default or Unmatured Default has occurred and is continuing, Borrower
shall cause Operator to apply all amounts in the Insurance Reserve necessary to
pay insurance premiums to the insurance broker or provider, or other party
entitled thereto, directly on or prior to the initial due date
therefor.  Borrower shall be responsible for ensuring the receipt by
Agent, at least ten (15) days prior to the initial due dates for each payment of
insurance premiums, of all bills, invoices and statements for all insurance
premiums to be paid from the Insurance Reserve.

     

    (g)           Any
failure to have sufficient funds in the Insurance Reserve to pay all insurance
premiums when initially due and payable shall not excuse any failure by Borrower
or Operator to pay all such amounts at such time as otherwise required under
this Agreement.

     

    (h)           All
interest and other proceeds paid on the funds deposited in the Insurance Reserve
shall accrue to the benefit of Operator; provided, however, that Borrower shall
cause Operator to retain such amounts together with all other amounts from time
to time in the the Insurance Reserve until applied to pay insurance premiums in
accordance with this Section 7.2 or until
all Obligations have been Paid in Full or as otherwise consented to in writing
by Agent.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    Section
7.3             CME
Reserve.

     

    (a)           Borrower
shall cause Operator to establish and maintain at all times while this Agreement
continues in effect a reserve for payment of Capital Expenditures arising from
or related to the operation of the New Card Rooms (the “CME
Reserve”).  The CME Reserve shall be maintained in a segregated
Deposit Account at the Account Bank opened in the name of Operator on or prior
to the Effective Date solely for the purpose of this Section
7.3.

     

    (b)           On
or prior to the date on which Borrower delivers a CapEx Budget for a Fiscal Year
pursuant to, and in accordance with, Section 6.1(b)(i)
or Section
6.1(b)(ii), as applicable, Borrower shall, or shall cause Operator to,
deposit in the CME Reserve an amount equal to fifty percent (50%) of the
budgeted Capital Expenditures set forth in such Unapproved CapEx Budget for that
Fiscal Year, which deposited amount shall be subject to adjustment to the extent
it is greater or less than fifty percent (50%) of the budgeted Capital
Expenditures set forth in the Approved CapEx Budget for that Fiscal Year (for
that Fiscal Year, the “CME Threshold
Amount”).

     

    (c)           So
long as no Default or Unmatured Default has occurred and is continuing, Borrower
shall cause Operator to fund all Approved Capital Expenditures (which shall not,
for the avoidance of doubt, include any cash on deposit in a Reserve), up to the
CME Threshold Amount for such Fiscal Year and, thereafter, Borrower shall cause
Operator to fund all Approved Capital Expenditures from the CME
Reserve.

     

    (d)           With
respect to the period from and including the Effective Date to and including the
date upon which the first Approved CapEx Budget is agreed by Agent, Borrower
shall cause Operator to incur or pay Capital Expenditures only with the prior
written consent of Agent.

     

    (e)           If,
as of the beginning of any Fiscal Year, the CapEx Budget is not an Approved
CapEx Budget, Borrower shall cause Operator to incur or pay Capital Expenditures
in accordance with the Approved CapEx Budget for the immediately preceding year,
except to the extent Agent has approved particular Capital Expenditures in the
CapEx Budget for the then current Fiscal Year, in which event Borrower shall
have the right to permit such Approved Capital Expenditures to be incurred and
paid.

     

    (f)           If
the CME Reserve shall at any time not contain at least the CME Threshold Amount
(or prior to an Approved CapEx Budget for a Fiscal Year, at least fifty percent
(50%) of the Capital Expenditures set forth in the Unapproved CapEx Budget for
such Fiscal Year, Borrower shall cause Operator to fund such deficiency on the
next succeeding Interest Payment Date.  Any failure to have sufficient
funds in the CME Reserve to pay or incur Approved Capital Expenditures when
needed shall not excuse any failure by Borrower to cause Operator to pay or
incur Capital Expenditures to satisfy its other obligations under this
Agreement.

     

    (g)           All
interest and other proceeds paid on the funds deposited in the CME Reserve shall
accrue to the benefit of Operator; provided, however,
that Borrower shall cause Operator to retain such amounts together with all
other amounts from time to time in the CME Reserve until applied to incur or pay
Approved Capital Expenditures in accordance with this Section 7.3 or until
all Obligations have been Paid in Full or as otherwise consented to in writing
by Agent.

     

    ARTICLE
8

     

    DEFAULTS

     

    The
occurrence of any one or more of the following events shall constitute a
Default:

     

    Section
8.1            Representations and
Warranties.  Any
representation or warranty made or deemed made by or on behalf of any Credit
Party to Lenders or Agent under or in connection with this Agreement, the Loans,
any Loan Document or any certificate or information delivered in connection with
this Agreement or any other Loan Document shall be false or misleading in any
material respect on the date made (or deemed made).

     

    Section
8.2            Failure to Make
Payments.  (a) Nonpayment
of principal of the Loans when due, (b) nonpayment of interest on the Loans
within three (3) Business Days after the same becomes due or (c) nonpayment
of any fee or other Obligations under any of the Loan Documents within the later
of (i) five (5) Business Days after the same has become due to the
Knowledge of any Credit Party and (ii) notice from Agent that the same is
owed.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
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    Section
8.3            Breach of Certain
Covenants.  Borrower
shall fail to perform or observe duly and punctually any agreement, covenant or
obligation binding on such Person under Article 6 (other than
Section 6.1(a),
(d) and (e) to which the
provisions of Section
8.4 shall apply or Section 6.7, Section 6.8 and Section 6.9 to which
the provisions of Section 8.5 shall
apply).

     

    Section
8.4            Delivery of Financial
Statements.  Borrower
shall fail to deliver to Agent the financial documentation required to be
delivered pursuant to Section 6.1(a), (d) and (e) within the
applicable period prescribed therefor which is not remedied within one (1)
Business Day thereafter.

     

    Section
8.5            Other
Defaults.  Other
than as covered by this Article 8 elsewhere,
any Credit Party shall fail to perform or observe duly and punctually any
agreement, covenant or obligation binding on such Person under any of the terms
or provisions of this Agreement or any Loan Document which is not remedied (if
capable of remedy) within thirty (30) days after the earlier of Knowledge of
Borrower thereof and notice from Agent to Borrower thereof.

     

    Section
8.6             Default as to Material
Indebtedness.  Failure
of any Credit Party or any Subsidiary thereof to pay when due any Material
Indebtedness; or the default by any Credit Party or any Subsidiary thereof in
the performance (beyond the applicable grace period with respect thereto, if
any) of any term, provision or condition contained in any Material Indebtedness
Agreement, or any other event shall occur or condition exist, the effect of
which default, event or condition is to cause, or to permit the holder(s) of
such Material Indebtedness or the lender(s) under any Material Indebtedness
Agreement to cause, such Material Indebtedness to become due prior to its stated
maturity or any commitment to lend under any Material Indebtedness Agreement to
be terminated prior to its stated expiration date; or any Material Indebtedness
of any Credit Party or any Subsidiary thereof shall be declared to be due and
payable or required to be prepaid or repurchased (other than by a regularly
scheduled payment) prior to the stated maturity thereof; or any Credit Party or
any Subsidiary thereof shall not pay, or admit in writing its inability to pay,
its debts generally as they become due.

     

    Section
8.7           
 Involuntary
Bankruptcy; Appointment of Receiver, Etc.

     

    (a)           An
involuntary case, proceeding or other action shall be commenced against any
Credit Party or any Subsidiary thereof under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have any order for relief
entered with respect to it, or seeking to adjudicate it as bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, wind-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or seeking appointment of a receiver, administrative receiver, trustee,
receiver-manager, liquidator, sequestrator, administrator, custodian or similar
official for it or for all or any substantial part of its assets, and if such
case or proceeding is being diligently contested in good faith, which case,
proceeding or other action shall not be stayed, dismissed, bonded or discharged
within thirty (30) days; or a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of any Credit Party or any
Subsidiary thereof in an involuntary case, under any applicable bankruptcy,
insolvency or other similar law now or hereinafter in effect; or any other
similar relief shall be granted under any applicable federal, state, local or
foreign law; or any petition is presented by any Person for the appointment of
an administrator of any Credit Party or any Subsidiary thereof and if such
petition is being diligently contested in good faith, such petition shall not be
stayed, dismissed, bonded or discharged within thirty (30) days.

     

    (b)           A
decree or order of a court having jurisdiction in the premises for the
appointment of a receiver, receiver-manager, liquidator, administrative
receiver, sequestrator, trustee, custodian or other officer having similar
powers over any Credit Party or any Subsidiary thereof or over all or a
substantial part of the Property of any Credit Party or any Subsidiary thereof
shall be entered; or an interim receiver, trustee or other custodian of any
Credit Party or any Subsidiary thereof or of all or a substantial part of the
property of any Credit Party or any Subsidiary thereof shall be appointed or a
warrant of attachment, execution or similar process against any substantial part
of the Property of any Credit Party or any Subsidiary thereof shall be issued
and any such event shall not be stayed, dismissed, bonded or discharged within
thirty (30) days after entry, appointment or issuance.

     

    (c)           Any
order, judgment or decree shall be entered against any Credit Party or any
Subsidiary thereof, decreeing its involuntary dissolution, split up or other
similar proceeding, and such order shall remain undischarged and unstayed for a
period in excess of thirty (30) days; or any Credit Party or any Subsidiary
thereof shall otherwise dissolve or cease to exist except as specifically
permitted hereby.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    Section
8.8        
    Voluntary Bankruptcy;
Appointment of Receiver, Etc.  Any
Credit Party or any Subsidiary thereof shall (a) commence any voluntary
case, proceeding or other action (a) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have any order for relief
entered with respect to it, or seeking to adjudicate it as bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, wind-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts, or (b) seeking appointment of a receiver, trustee, receiver-manager,
administrative receiver, liquidator, sequestrator, administrator, custodian or
similar official for it or for all or any substantial part of its assets or
(c) consent to the entry of an order for relief in an involuntary case, or
to the conversion of an involuntary case to a voluntary case, under any such
law, (d) consent to the appointment of or taking possession by a receiver,
receiver-manager, liquidator, sequestrator, trustee or other custodian or other
officer for all or a substantial part of its property, (e) generally not
pay its debts as such debts become due, or shall admit in writing its inability
to pay its debts generally, or shall make any general assignment for the benefit
of creditors or shall otherwise become insolvent under any relevant law, or
(f) take any other action to authorize any of the actions set forth in this
Section
8.8.

     

    Section
8.9            Condemnation.  Any
court, government or governmental agency shall condemn, seize or otherwise
appropriate, or take custody or control of, all or any portion of the Property
of either Collateral Subsidiary.

     

    Section
8.10          Judgments and
Attachments.  (a) Any
money judgment (other than a money judgment covered by insurance as to which the
insurance company has acknowledged coverage), writ or warrant of attachment,
distress or similar process is rendered against any Credit Party or any
Subsidiary thereof or any of their respective assets and shall remain
undischarged, unvacated, unbonded or unstayed for a period of thirty (30) days,
(b) a federal tax Lien is filed against any Credit Party or any Property of
any Credit Party which is not discharged of record, bonded over or otherwise
secured to the satisfaction of Agent in its sole discretion within thirty (30)
days after the filing thereof or the date upon which Agent receives actual
knowledge of the filing thereof, or (c) an environmental Lien is filed
against any Property of any Credit Party with respect to Claims, and which with
respect to clauses
(a) through (c) immediately
above, (i) against the Parent involving either separately or collectively an
amount in excess of US$100,000, or (ii) against any other Credit Party (or, if
applicable, Subsidiary thereof), either separately or collectively involving an
amount in excess of US$50,000.

     

    Section
8.11          ERISA
Matters.  (a)
An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which
has resulted or could reasonably be expected to result in liability of any
Credit Party or any Controlled Group Member to the Pension Plan, Foreign Pension
Plan, Multiemployer Plan or the PBGC or similar foreign governmental authority
in an aggregate amount in excess of US$500,000, or (b) any Credit Party or
any Controlled Group Member fails to pay when due, after the expiration of any
applicable grace period, any contribution payment under Section 412 of the
Internal Revenue Code or Section 302 of ERISA that is reasonably expected to
result in the imposition of a Lien pursuant to Section 430 of the Internal
Revenue Code or Section 303 of ERISA.

     

    Section
8.12           Change in
Control.  Any
Change in Control shall occur.

     

    Section
8.13          Environmental
Matters.  Borrower
or Operator shall (a) be the subject of any proceeding or investigation
pertaining to the Release by either of them of any Contaminant into the
environment, or (b) violate any Environmental, Health or Safety
Requirements of Law, which, in the case of an event described in clause (a) or clause (b), could
reasonably be expected to have a Material Adverse Effect, and Borrower or
Operator, as the case may be, fails to remedy the same within thirty (30) days
after the earlier of Knowledge of Borrower thereof and notice from Agent to
Borrower.

     

    Section
8.14          Other Loan
Documents.  Any
Loan Document shall fail to remain in full force or effect or any action shall
be taken to discontinue or to assert the invalidity or unenforceability of any
such Loan Document by any Person other than Agent or any Lender, or any
Guarantor shall fail to comply with any of the terms or provisions of the
Guaranties, or any Guarantor shall deny that it has any further liability under
the Guaranties, or shall give notice to such effect.

     

    Section
8.15          Collateral
Documents.  Any
Collateral Document shall for any reason fail to create a valid and perfected
first priority Lien over any collateral purported to be covered thereby, except
as permitted by the terms of any Collateral Document, or any Collateral Document
shall fail to remain in full force or effect or any action shall be taken to
discontinue or to assert the invalidity or unenforceability of any Collateral
Document.

      

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
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    Section
8.16          Breach of
Lease.  Breach
of (a) any material obligation of Operator by Operator as tenant under or
pursuant to any Lease related to the operations of any New Card Room (including,
without limitation, failure to pay rent when due, to make repairs to the
premises, to maintain insurance coverage or to comply with all applicable laws
and regulations) or (b) any other obligation of Operator as tenant under or
pursuant to any Lease beyond any applicable grace period with respect thereto
contained in such Lease, if any.

     

    ARTICLE
9

     

    ACCELERATION,
WAIVERS, AMENDMENTS AND REMEDIES

     

    Section
9.1             Acceleration.

     

    (a)           If
any Default described in Section 8.7 or Section 8.8 occurs,
the obligations of Lenders to make the Loans hereunder shall automatically
terminate, the “Applicable Maturity Date” shall be deemed to have occurred, and
the Obligations shall immediately become due and payable without any election or
action on the part of Agent or any Lender.  If any other Default
occurs, Required Lenders (or Agent with the consent of Required Lenders) may
terminate or suspend the obligations of Lenders to make the Loans hereunder, or
declare the Obligations to be due and payable, or both, whereupon the
Obligations shall become immediately due and payable, and the “Applicable
Maturity Date” shall deemed to have occurred, without presentment, demand,
protest or notice of any kind, all of which Borrower hereby expressly
waives.  If such Default occurs after the first anniversary of the
Effective Date, the applicable Repayment Fee shall automatically become due and
payable by Borrower as liquidated damages and not as a penalty.

     

    (b)           If,
within thirty (30) days after acceleration of the maturity of the Obligations or
termination of the obligations of Lenders to make the Loans hereunder as a
result of any Default (other than any Default as described in Section 8.7 or Section 8.8) and
before any judgment or decree for the payment of the Obligations due shall have
been obtained or entered, Required Lenders (in their sole discretion) shall so
direct, Agent shall, by notice to Borrower, rescind and annul such acceleration
and/or termination.

     

    (c)           Upon
acceleration, Agent and Lenders, without notice to or demand upon Borrower,
which is expressly waived by Borrower to the fullest extent permitted by law,
shall be entitled to proceed to protect, exercise and enforce its rights and
remedies hereunder or under the other Loan Documents, or any other rights and
remedies as are provided by law or equity.  Agent may determine, in
its sole discretion, the order and manner in which Agent’s and Lenders’ rights
and remedies are to be exercised.  

     

    (d)           At
any time a Default has occurred and is continuing, Agent may (a) provide
notice to the Account Bank or securities intermediary, as applicable, that a
Default has occurred hereunder and (b) exercise its rights under the
Control Agreements to give directions and instructions with respect to the
Deposit Accounts and Securities Accounts covered thereby, as applicable, and to
exclude Borrower from access to the Deposit Accounts and Securities Accounts
subject to the Control Agreements and the ability to give directions and
instructions with respect to the accounts covered thereby.  All
payments received by Agent and Lenders at any time after a Default has occurred
and is continuing shall be applied to the Obligations as determined by Agent in
its sole discretion.

     

    Section
9.2            Amendments and
Waivers.

     

    (a)           
No amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent with respect to any departure by Borrower therefrom,
shall be effective unless the same shall be in writing and signed by the
Required Lenders (or by Agent with the consent of the Required Lenders) and
Borrower and then any such waiver or consent shall be effective, but only in the
specific instance and for the specific purpose for which given; provided,
however, that no such waiver, amendment or consent shall, unless in writing and
signed by all Lenders affected thereby and Borrower:

     

    (b)           Extend
the final maturity of the Loans (other than pursuant to Section 2.2) or
forgive all or any portion of the principal amount thereof, or reduce the rate
or extend the time of payment of interest or fees thereon.

     

    (c)           Change
the percentage specified in the definition of Required Lenders.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
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    (d)           Reduce
the amount or extend the payment date for prepayments required under Section 2.3, or
increase the amount of the Facility Commitment or of the Commitment of any
Lender hereunder, or permit Borrower to assign its rights under this
Agreement.

     

    (e)           Amend
this Section
9.2.

     

    (f)      
     Release any Guarantor of the Loans or, except as
provided in this Agreement or the  Collateral Documents, release or
agree to subordinate Agent and Lenders’ Liens with respect to any of the
Collateral.

     

    (g)           Amend
the definition of “Required Lenders”.

     

    (h)           Waive
any of the conditions specified in Section
4.2.

     

    No
amendment of any provision of this Agreement relating to Agent shall be
effective without the written consent of Agent.  Agent may waive
payment of the fee required under Section 13.3(b)
without obtaining the consent of any other party to this Agreement.

     

    Section
9.3            Preservation of
Rights.  No
delay or omission of Lenders or Agent to exercise any right under the Loan
Documents shall impair such right or be construed to be a waiver of any Default
or an acquiescence therein, and the making of the Loans notwithstanding the
existence of a Default or the inability of Borrower to satisfy the conditions
precedent to the Loans shall not constitute any waiver or
acquiescence.  Any single or partial exercise of any such right shall
not preclude other or further exercise thereof or the exercise of any other
right, and no waiver, amendment or other variation of the terms, conditions or
provisions of the Loan Documents whatsoever shall be valid unless in writing
signed by Lenders required pursuant to Section 9.2, and then
only to the extent in such writing specifically set forth.  All
remedies contained in the Loan Documents or by law afforded shall be cumulative
and all shall be available to Agent and Lenders until the Obligations have been
paid in full.

     

    ARTICLE
10

     

    GENERAL
PROVISIONS

     

    Section
10.1           Survival of
Representations
and Warranties.  All
representations and warranties of Borrower contained in this Agreement shall
survive the making of the Loans herein contemplated.

     

    Section
10.2          Governmental
Regulation.  Anything
contained in this Agreement to the contrary notwithstanding, no Lender shall be
obligated to extend credit to Borrower in violation of any limitation or
prohibition provided by any applicable statute or regulation.

     

    Section
10.3           Headings.  Section headings
in the Loan Documents are for convenience of reference only, and shall not
govern the interpretation of any of the provisions of the Loan
Documents.

     

    Section
10.4          Entire
Agreement.  The
Loan Documents embody the entire agreement and understanding among Borrower, the
other Credit Parties, Agent and Lenders and supersede all prior agreements and
understandings among Borrower, the other Credit Parties, Agent and Lenders
relating to the subject matter thereof.

     

    Section
10.5          Several Obligations;
Benefits of this Agreement.  The
respective obligations of Lenders hereunder are several and not joint and
limited to such Lender’s Commitment and Pro Rata Share of the Loans, and no
Lender shall be the partner or agent of any other (except to the extent to which
Agent is authorized to act as such).  The failure of any Lender to
perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder.  This Agreement shall not be
construed so as to confer any right or benefit upon any Person other than the
parties to this Agreement and their respective successors and
assigns.

      

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
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    Section
10.6           Expenses;
Indemnification.

     

    (a)           Generally.  Borrower
agrees upon demand to pay, or reimburse the Agent for, all of Agent’s reasonable
internal and external audit, legal, appraisal, syndication, computer, travel,
messenger, courier, insurance, evaluation, filing, document duplication and
reproduction and investigation expenses and for all other reasonable
out-of-pocket costs and expenses of every type and nature (including, without
limitation, reasonable attorneys’ fees and disbursements at its standard rates,
local legal counsel, auditors, accountants, appraisers, printers, insurance and
environmental advisers, and other consultants and agents), incurred by Agent in
connection with (a) Agent’s audit and investigation of each Credit Party
and its Subsidiaries in connection with the preparation, negotiation, and
execution of the Loan Documents and Agent’s periodic audits of the Credit
Parties and its Subsidiaries; (b) the preparation, negotiation, execution
and interpretation hereof (including, without limitation, the satisfaction or
attempted satisfaction of any of the conditions set forth in Section 3.3), the
other Loan Documents and any proposal letter or commitment letter issued in
connection therewith and the making of the Loans hereunder; (c) the
creation, perfection or protection of the Liens under the Loan Documents
(including, without limitation, any reasonable fees and expenses for local
counsel in various jurisdictions); (d) the ongoing administration hereof
and of the Loans, including consultation with attorneys in connection therewith
and with respect to Agent’s rights and responsibilities hereunder and under the
other Loan Documents; (e) the protection, collection or enforcement of any
of the Obligations or the enforcement of any of the Loan Documents; (f) the
commencement, defense or intervention in any court proceeding relating in any
way to the Obligations, the Property, any Credit Party or any of its
Subsidiaries, this Agreement or any of the other Loan Documents; (g) the
response to, and preparation for, any subpoena or request for document
production with which Agent is served or deposition or other proceeding in which
Agent is called to testify, in each case, relating in any way to the
Obligations, the Property, any Credit Party or any of its Subsidiaries, this
Agreement or any of the other Loan Documents; and (h) any amendments,
consents, waivers, assignments, restatements, or supplements to any of the Loan
Documents and the preparation, negotiation, and execution of the
same.

     

    (b)           After
Default.  Borrower further agrees to pay or reimburse Agent and
Lenders upon demand for all out-of-pocket costs and expenses, including, without
limitation, reasonable attorneys’ fees and disbursements at its standard rates,
and including allocated costs of internal counsel and costs of settlement),
incurred by Agent or any Lender (a) in enforcing any Loan Document or
Obligation or any security therefor or exercising or enforcing any other right
or remedy available by reason of any Default; (b) in connection with any
refinancing or restructuring of the credit arrangements provided hereunder in
the nature of a “work-out” or in any insolvency or bankruptcy proceeding;
(c) in commencing, defending or intervening in any litigation or in filing
a petition, complaint, answer, motion or other pleadings in any legal proceeding
relating to the Obligations, the Property, any Credit Party or any of its
Subsidiaries and related to or arising out of the transactions contemplated
hereby or by any of the other Loan Documents; and (d) in taking any other
action in or with respect to any suit or proceeding (bankruptcy or otherwise)
described in clauses
(a) through (c)
above.

     

    (c)           Additional Expenses
Covered.  Expenses being reimbursed by Borrower under this
Section 10.6
include, without limitation, the cost and expense of obtaining an appraisal of
each parcel of real property or interest in real property described in the
Mortgages following a Default or Unmatured Default or a Default or Unmatured
Default occurs or is discovered during such appraisal, which appraisal shall be
in conformity with the applicable requirements of any law or any governmental
rule, regulation, policy, guideline or directive (whether or not having the
force of law), or any interpretation thereof, including, without limitation, the
provisions of Title XI of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, as amended, reformed or otherwise modified from time to
time, and any rules promulgated to implement such provisions and costs and
expenses incurred in connection with the Reports described in the following
sentence.  Borrower acknowledges that from time to time Agent may
prepare and may distribute to Lenders (but shall have no obligation or duty to
prepare or to distribute to Lenders) certain audit reports (the “Reports”) pertaining
to Borrower’s assets for internal use by Agent from information furnished to it
by or on behalf of Borrower, after Agent has exercised its rights of inspection
pursuant to this Agreement.

     

    (d)           Indemnification.  Borrower
hereby further agrees upon demand to indemnify Agent, each Lender, their
respective affiliates, investment advisors, clients and managed accounts, and
each of their directors, officers and employees against all losses, claims,
damages, penalties, judgments, liabilities and expenses (including, without
limitation, all expenses of litigation or preparation therefor, including,
without limitation, reasonable attorneys’ fees and settlement costs, whether or
not Agent, any Lender or any affiliate is a party thereto) which any of them may
pay or incur arising out of or relating to this Agreement, the other Loan
Documents, the transactions contemplated hereby or the direct or indirect
application or proposed application of the Acquisition Finance Consideration
hereunder except to the extent that they are determined in a final
non-appealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of any such indemnified
party.  The obligations of Borrower under this Section 10.6 shall
survive the termination of this Agreement.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
        57

        
          

        

      

      
         

      

    

    Section
10.7          Numbers of
Documents.  All
statements, notices, closing documents, and requests hereunder shall be
furnished to Agent with sufficient counterparts so that Agent may furnish one to
each of Lenders.

     

    Section
10.8          Accounting.  Except
as provided to the contrary herein, all accounting terms used herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP.

     

    Section
10.9          Severability of
Provisions.  Any
provision in any Loan Document that is held to be inoperative, unenforceable, or
invalid in any jurisdiction shall, as to that jurisdiction, be inoperative,
unenforceable, or invalid without affecting the remaining provisions in that
jurisdiction or the operation, enforceability, or validity of that provision in
any other jurisdiction, and to this end the provisions of all Loan Documents are
declared to be severable.

     

    Section
10.10        Nonliability of
Lenders.  The
relationship between Borrower on the one hand and Lenders and Agent on the other
hand shall be solely that of borrower and lender.  Neither Agent nor
any Lender shall have any fiduciary responsibilities to any Credit
Party.  Neither Agent nor any Lender undertakes any responsibility to
any Credit Party to review or inform any Credit Party of any matter in
connection with any phase of any Credit Party’s business or
operations.  Each Credit Party agrees that neither Agent nor any
Lender shall have liability to any Credit Party (whether sounding in tort,
contract or otherwise) for losses suffered by any Credit Party in connection
with, arising out of, or in any way related to, the transactions contemplated
and the relationship established by the Loan Documents, or any act, omission or
event occurring in connection therewith, unless it is determined in a final
non-appealable judgment by a court of competent jurisdiction that such losses
resulted from the gross negligence or willful misconduct of the party from which
recovery is sought. Neither Agent nor any Lender shall have any liability with
respect to, and Borrower hereby waives, releases and agrees not to sue for, any
special, indirect, and consequential or punitive damages suffered by any Credit
Party in connection with, arising out of, or in any way related to the Loan
Documents or the transactions contemplated thereby.

     

    Section
10.11        Confidentiality.  Each
Lender agrees to hold any material, non-public confidential information which it
may receive from any Credit Party pursuant to this Agreement in confidence,
except for disclosure (a) to its Affiliates, its and its Affiliates’
investment advisors, managed accounts and to other Lenders and their respective
Affiliates, (b) to legal counsel, accountants, and other professional
advisors to such Lender or to a Transferee, (c) to regulatory officials,
(d) to any Person as requested pursuant to or as required by law,
regulation, or legal process; provided that such Lender shall, to the extent
legally permissible, provide notice as soon as practicable, of such disclosure
to Borrower, to enable Borrower or any other Credit Party to seek a protective
order or otherwise prevent or restrict such disclosure, (e) permitted by
Section 13.6
and (f) to rating agencies if requested or required by such agencies in
connection with a rating relating to the Loans borrowed hereunder.

     

    Section
10.12        Nonreliance.  Each
Lender hereby represents that it is not relying on or looking to any margin
stock (as defined in Regulation U of the Board of Governors of the Federal
Reserve System) for the repayment of the Loans provided for herein.

     

    Section
10.13        Disclosure.  Borrower
and each Lender hereby acknowledge and agree that Fortress and/or its Affiliates
from time to time may hold investments in, make other loans to or have other
relationships with Borrower and its Affiliates.

     

    ARTICLE
11

     

    AGENT

     

    Section
11.1          Appointment; Nature of
Relationship.  Fortress
Credit Corp. is hereby appointed by each Lender as its contractual
representative hereunder and under each other Loan Document (herein referred to
as Agent), and each Lender irrevocably authorizes Agent to act as the
contractual representative of such Lender with the rights and duties expressly
set forth herein and in the other Loan Documents.  Agent agrees to act
as such contractual representative upon the express conditions contained in this
Article
11.  Notwithstanding the use of the defined term “Agent,” it is
expressly understood and agreed that Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement or any other Loan
Document and that Agent is merely acting as the contractual representative of
Lenders with only those duties as are expressly set forth in this Agreement and
the other Loan Documents.  In its capacity as Lenders’ contractual
representative, Agent (a) does not hereby assume any fiduciary duties to
any of Lenders, (b) is a “representative” of Lenders within the meaning of
the term “secured party” as defined in the UCC and (c) is acting as an
independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Loan
Documents.  Each of Lenders hereby agrees to assert no claim against
Agent on any agency theory or any other theory of liability for breach of
fiduciary duty, all of which claims each Lender hereby waives.

      

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
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    Section
11.2          Powers.  Agent
shall have and may exercise such powers under the Loan Documents as are
specifically delegated to Agent by the terms thereof, together with such powers
as are reasonably incidental thereto.  Agent shall have no implied
duties to Lenders, or any obligation to Lenders to take any action under the
Loan Documents except any action specifically provided by the Loan Documents to
be taken by Agent.

     

    Section
11.3          General
Immunity.  Neither
Agent nor any of its directors, officers, agents, Affiliates or employees shall
be liable to Lenders or any Lender for any action taken or omitted to be taken
by it or them hereunder or under any other Loan Document or in connection
herewith or therewith except to the extent such action or inaction is determined
in a final non-appealable judgment by a court of competent jurisdiction to have
arisen from the gross negligence or willful misconduct of such
Person.  In addition, the provisions of this Article 11 are solely
for the benefit of Agent and Lenders and neither Borrower nor any other Person
shall have any rights as third party beneficiaries of any of such
provisions.

     

    Section
11.4          Exculpatory
Provisions.  Agent
shall not have any duties or obligations except those expressly set forth herein
and in the other Loan Documents.  Without limiting the generality of
the foregoing, Agent and each of its officers, directors, investment advisors,
managed accounts, employees and agents:

     

    (a)           shall
not be subject to any fiduciary or other implied duties, regardless of whether
an Unmatured Default or Default has occurred and is continuing;

     

    (b)           shall
not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Documents that Agent is required to exercise as directed in
writing by Required Lenders (or such other number or percentage of Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided that Agent
shall not be required to take any action that, in its opinion or the opinion of
its counsel, may expose Agent to liability or that is contrary to any Loan
Document or applicable law; and

     

    (c)           shall
not, except as expressly set forth herein and in the other Loan Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to Borrower or any of its Affiliates that is communicated
to or obtained by Agent or any of its Affiliates in any capacity.

     

    Agent
shall not be liable for any action taken or not taken by it (a) with the
consent or at the request of Required Lenders (or such other number or
percentage of Lenders as shall be necessary, or as Agent shall believe in good
faith shall be necessary, under the circumstances as provided in Section 9.1) or
(b) in the absence of its own gross negligence or willful
misconduct.  Agent shall be deemed not to have knowledge of any
Default or Unmatured Default unless and until notice describing such Default or
Unmatured Default is given to Agent by any Credit Party, a Lender or a Lending
Installation.

     

    Agent
shall not be responsible for or have any duty to ascertain or inquire into
(a) any statement, warranty or representation made in or in connection with
this Agreement or any other Loan Document, (b) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (c) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default or Unmatured Default, (d) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or
(e) the satisfaction of any condition set forth in Section 3.3 or
elsewhere herein, other than to confirm receipt of items expressly required to
be delivered to Agent.  Agent shall be fully justified in failing or
refusing to take any action hereunder and under any other Loan Document unless
it shall first be indemnified to its satisfaction by Lenders pro rata against
any and all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
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    Section
11.5          Employment of Agents and
Counsel.  Agent
may execute any of its duties as Agent hereunder and under any other Loan
Document by or through employees, agents, and attorneys in fact and shall not be
answerable to Lenders, except as to money or securities received by it or its
authorized agents, for the default or misconduct of any such agents or attorneys
in fact selected by it with reasonable care.  Agent shall be entitled
to advice of counsel concerning the contractual arrangement between Agent and
Lenders and all matters pertaining to Agent’s duties hereunder and under any
other Loan Document.

     

    Section
11.6          Reliance by
Agent.  Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document
or other writing (including any electronic message, Internet or intranet website
posting or other distribution) believed by it to be genuine and to have been
signed, sent or otherwise authenticated by the proper Person.  Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining compliance with any condition
hereunder to the making of the Loans, that by its terms must be fulfilled to the
satisfaction of a Lender or applicable Lending Installation, Agent may presume
that such condition is satisfactory to such Lender or Lending Installation
unless Agent shall have received notice to the contrary from such Lender or
Lending Installation prior to the making of the Loans.  Agent may
consult with legal counsel (who may be counsel for Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

     

    Section
11.7          Agent’s Reimbursement and
Indemnification.  Lenders
agree to reimburse and indemnify Agent ratably in proportion to their respective
Commitments (or, if the Commitments have been terminated, in proportion to their
Commitments immediately prior to such termination) (a) for any amounts not
reimbursed by Borrower for which Agent is entitled to reimbursement by Borrower
under the Loan Documents, (b) for any other expenses incurred by Agent on
behalf of Lenders, in connection with the preparation, execution, delivery,
administration and enforcement of the Loan Documents (including, without
limitation, for any expenses incurred by Agent in connection with any dispute
between Agent and any Lender or between two or more of Lenders) and (c) for
any liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind and nature whatsoever which
may be imposed on, incurred by or asserted against Agent, its Affiliates, and
each of their respective officers, directors, investment advisors, clients,
managed accounts, employees and agents in any way relating to or arising out of
the Loan Documents or any other document delivered in connection therewith or
the transactions contemplated thereby (including, without limitation, for any
such amounts incurred by or asserted against Agent in connection with any
dispute between Agent and any Lender or between two or more of Lenders), or the
enforcement of any of the terms of the Loan Documents or of any such other
documents, provided that no
Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
Agent.  The obligations of Lenders under this Section 11.7 shall
survive payment of the Obligations and termination of this
Agreement.

     

    Section
11.8          Notice of
Default.  Agent
shall not be deemed to have knowledge or notice of the occurrence of any Default
or Unmatured Default hereunder unless Agent has received written notice from a
Lender or a Borrower referring to this Agreement describing such Default or
Unmatured Default and stating that such notice is a “notice of
default”.  In the event that Agent receives such a notice, Agent shall
give prompt notice thereof to Lenders.

     

    Section
11.9          Rights as a
Lender.  In
the event Agent is a Lender, Agent shall have the same rights and powers
hereunder and under any other Loan Document with respect to its Commitment and
its Pro Rata Share of the Loans as any Lender and may exercise the same as
though it were not Agent, and the term “Lender” or “Lenders” shall, at any time
when Agent is a Lender, unless the context otherwise indicates, include Agent in
its individual capacity.  Agent and its Affiliates may accept deposits
from, lend money to, and generally engage in any kind of trust, debt, equity or
other transaction, in addition to those contemplated by this Agreement or any
other Loan Document, with Borrower or any of its Subsidiaries in which Borrower
or such Subsidiary is not restricted hereby from engaging with any other
Person.  Agent, in its individual capacity, is not obligated to remain
a Lender.

     

    Section
11.10        Non-Reliance on Agent and
Other Lenders.  Each
Lender and Lending Installation acknowledges that it has, independently and
without reliance upon Agent or any other Lender or any of their Affiliates and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each
Lender and Lending Installation also acknowledges that it will, independently
and without reliance upon Agent or any other Lender or any of their Affiliates
and based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement, any other Loan Document or any related
agreement or any document furnished hereunder or thereunder.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
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    Section
11.11        Indemnity by
Lenders. 
To the extent determined by the Agent, in its sole discretion, to be required by
any applicable law, the Agent may withhold from any interest, fees or other
payment to any Lender an amount equivalent to any applicable withholding
tax.  If the Internal Revenue Service or any other Governmental Authority
asserts a claim that the Agent did not properly withhold tax from amounts paid
to or for the account of any Lender because the appropriate form was not
delivered or was not properly executed or because such Lender failed to notify
the Agent of a change in circumstance which rendered the exemption from, or
reduction of, withholding tax ineffective or for any other reason, such Lender
shall indemnify the Agent fully for all amounts paid, directly or indirectly, by
the Agent as tax or otherwise, including any penalties or interest and together
with all expenses (including legal expenses, allocated internal costs and
out-of-pocket expenses) incurred. The obligations of the Lenders under this
Section 11.11 shall survive the Payment in Full of the Obligations and the
termination of this Agreement.

     

    Section
11.12        Successor
Agent.  Agent
may resign at any time by giving written notice thereof to Lenders and Borrower,
such resignation to be effective upon the appointment of a successor Agent or,
if no successor Agent has been appointed, forty-five (45) days after the
retiring Agent gives notice of its intention to resign.  Upon any such
resignation, Required Lenders shall have the right to appoint, on behalf of
Borrower and Lenders, a successor Agent.  If no successor Agent shall
have been so appointed by Required Lenders within thirty (30) days after the
resigning Agent’s giving notice of its intention to resign, then the resigning
Agent may appoint, on behalf of Borrower and Lenders, a successor
Agent.  Notwithstanding the previous sentence, Agent may at any time
without the consent of Borrower or any Lender, appoint any of its Affiliates as
a successor Agent hereunder.  If Agent has resigned and no successor
Agent has been appointed, Lenders may perform all the duties of Agent hereunder
and Borrower shall make all payments in respect of the Obligations to the
applicable Lender and for all other purposes shall deal directly with
Lenders.  No successor Agent shall be deemed to be appointed hereunder
until such successor Agent has accepted the appointment.  Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the resigning Agent.  Upon
the effectiveness of the resignation of Agent, the resigning Agent shall be
discharged from its duties and obligations hereunder and under the Loan
Documents.  After the effectiveness of the resignation of an Agent,
the provisions of this Article 11 shall continue in effect for the benefit of
such Agent in respect of any actions taken or omitted to be taken by it while it
was acting as Agent hereunder and under the other Loan Documents.

     

    Section
11.13        Fees.  Borrower
agrees to pay to Agent on or prior to the Extension Exercise Date, a
non-refundable extension fee equal to one percent (1%) of the then principal
amount outstanding of the Loans (the “Extension
Fee”).

     

    Section
11.14        Delegation to
Affiliates.  Borrower
and Lenders agree that Agent may perform any and all of its duties and exercise
its rights and powers hereunder or under any other Loan Document by or through
any one or more sub agents appointed by Agent.  Agent and any such sub
agent may perform any and all of its duties and exercise its rights and powers
by or through their respective Affiliates.  The exculpatory provisions
of this Article
11 shall apply to any such sub agent and to the Affiliates of Agent and
any such sub agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as Agent.  Any such Affiliate (and such Affiliate’s
directors, officers, agents and employees) which performs duties in connection
with this Agreement shall be entitled to the same benefits of the
indemnification, waiver and other protective provisions to which Agent is
entitled under Article
10 and this Article
11.

     

    Section
11.15        Execution of Collateral
Documents.  Lenders
hereby empower and authorize Agent to execute and deliver to Borrower on their
behalf the Collateral Document(s) and all related financing statements and any
financing statements, agreements, documents or instruments as shall be necessary
or appropriate to effect the purposes of the Collateral
Document(s).  Each Lender agrees that any action taken by Agent or the
Required Lenders (or, where required by the express terms hereof, a different
proportion of the Lenders) in accordance with the provisions hereof or of the
other Loan Documents, and the exercise by Agent or the Required Lenders (or,
where so required, such different proportion) of the powers set forth herein or
therein, together with such other powers as are reasonably incidental thereto,
shall be authorized and binding upon all of Lenders. Without limiting the
generality of the foregoing, Agent shall have the sole and exclusive right and
authority to (a) act as the disbursing and collecting agent for Lenders
with respect to all payments and collections arising in connection herewith and
with the Loan Documents relating to the Collateral; (b) execute and deliver
each Loan Document relating to the Collateral and accept delivery of each such
agreement delivered by any Credit Party or any Subsidiary thereof; (c) act
as collateral agent for Lenders for purposes of the perfection of all Liens
created by such agreements and all other purposes stated therein, provided, however,
Agent hereby appoints, authorizes and directs each Lender to act as collateral
sub-agent for Agent and Lenders for purposes of the perfection of all Liens with
respect to the Property at any time in the possession of such Lender, including,
without limitation, Credit Parties’ respective deposit accounts maintained with,
and cash and Cash Equivalent Investments held by, such Lender; (iv) manage,
supervise and otherwise deal with the Collateral; (v) take such action as
is necessary or desirable to maintain the perfection and priority of the Liens
created or purported to be created by the Loan Documents; and (vi) except
as may be otherwise specifically restricted by the terms hereof or of any other
Loan Document, exercise all remedies given to Agent and Lenders with respect to
the Collateral under the Loan Documents relating thereto, applicable law or
otherwise.

      

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        61

        
          

        

      

      
         

      

    

    Section
11.16        Collateral
Releases.  Lenders
hereby empower and authorize Agent to execute and deliver to Borrower on their
behalf any agreements, documents or instruments as shall be necessary or
appropriate to effect any releases of Collateral which shall (a) be
permitted by the terms hereof or of any other Loan Document, (b) otherwise
have been approved by Required Lenders (or, if required by the terms of Section 9.2, all of
Lenders) in writing, (c) be with respect to all of the Collateral upon
final Payment In Full of the Obligations and termination of the Commitments and
this Agreement, or (d) be with respect to any part of the Collateral sold
or disposed of by any Credit Party or any Subsidiary thereof, if such sale or
disposition is permitted hereunder.

     

    ARTICLE
12

     

    SETOFF;
RATABLE PAYMENTS

     

    Section
12.1          Setoff.  If
a Default shall have occurred and be continuing, each Lender, each applicable
Lending Installation, and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
applicable law, to set off and apply any and all deposits (general or special,
time or demand, including all account balances, whether provisional or final and
whether or not collected or available, in whatever currency) at any time held
and any other Indebtedness (in whatever currency) at any time held or owing by
such Lender, Lending Installation or any such Affiliate to or for the credit or
the account of Borrower or any other Credit Party against the payment of the
Obligations owing to such Lender, irrespective of whether or not such Lender or
Lending Installation shall have made any demand under this Agreement or any
other Loan Document and although such obligations of Borrower or such Credit
Party may be contingent or unmatured or are owed to a branch or office of such
Lender or Lending Installation different from the branch or office holding such
deposit or obligated on such Indebtedness.  The rights of each Lender,
Lending Installation and their respective Affiliates under this Section 12.1 are in
addition to other rights and remedies (including other rights of setoff) that
such Lender, Lending Installation or their respective Affiliates may
have.  Each Lender and Lending Installation agrees to notify Borrower
and Agent promptly after any such setoff and application, provided that the
failure to give such notice shall not affect the validity of such setoff and
application.

     

    Section
12.2          Ratable
Payments.  If
any Lender, whether by setoff or otherwise, has payment made to it upon its Pro
Rata Share of the Loans (other than payments received pursuant to Section 3.1(a)) in a
greater proportion than its Pro Rata Share thereof, such Lender agrees to notify
Agent of such fact and, promptly upon demand by Agent, to purchase (for cash at
face value) a portion of the Loans held by the other Lenders and such other
obligations of the other Lenders, or make such other adjustments as shall be
equitable so that the benefit of all such payments shall be shared by Lenders
ratable in accordance with the aggregate amount of principal of and accrued
interest on their respective portions of the Loans and other amounts owing to
them.  Likewise, if any Lender, whether in connection with setoff or
amounts which might be subject to setoff or otherwise, receives collateral or
other protection for its Obligations or such amounts which may be subject to
setoff, such Lender shall notify Agent of such fact and, promptly upon demand by
Agent, to take such action necessary so that the benefits of all such collateral
shall be shared by Lenders ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective portions of the Loans and
other amounts owing to them  In case any such payment is disturbed by
legal process, or otherwise, appropriate further adjustments shall be
made.

     

    ARTICLE
13

     

    BENEFIT
OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

     

    Section
13.1          Successors and
Assigns.  The
terms and provisions of the Loan Documents shall be binding upon and inure to
the benefit of Borrower and Lenders and their respective successors and assigns
permitted hereby, except that (a) Borrower shall not have the right to
assign or otherwise transfer its rights or obligations under the Loan Documents
without the prior written consent of each Lender, (b) any assignment by any
Lender must be made in compliance with Section 13.3,
(c) any transfer by participation must be made in compliance with Section 13.2 and
(d) any pledge or assignment of a security interest by a Lender must be
made in compliance with Section
13.5.  Any attempted assignment or transfer by any party not
made in compliance with this Section 13.1 shall be
null and void.  Nothing in this Agreement, expressed or implied, shall
be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent
provided in Section
13.2 and, to the extent expressly contemplated hereby, the Affiliates of
each of Agent and Lenders) any legal or equitable right, remedy or claim under
or by reason of this Agreement.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        62

        
          

        

      

      
         

      

    

    Section
13.2          Participations.

     

    (a)           Permitted Participants;
Effect  Subject to Section 13.8, any
Lender may at any time, without the consent of, or notice to, Borrower or Agent,
sell to one or more banks or other entities (“Participants”) in all
or a portion of such Lender’s rights and/or obligations under the Loan Documents
(including all or a portion of its Commitment and/or the Loans owing to it);
provided that
(a) such Lender’s obligations under the Loan Documents shall remain
unchanged, (b) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (c) Borrower,
Agent and Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under the Loan
Documents.

     

    (b)           Voting
Rights.  Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce the Loan Documents and to approve any amendment, modification
or waiver of any  provision of the Loan Documents; provided that such
agreement or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, modification or waiver
described in Section
9.2 that
affects such Participant.  Subject to Section 13.2(c),
Borrower agrees that each Participant shall be entitled to the benefits of Section 3.1 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to
Section
13.3.  To the extent permitted by law, each Participant also
shall be entitled to the benefits of Section 12.1 as though it were a
Lender, provided such
Participant agrees to be subject to Section 12.2 as though it were a
Lender.

     

    (c)           Benefit of Certain Other
Provisions  Borrower agrees that each Participant shall be
entitled to the benefits of to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to Section 13.3, provided that
(a) a Participant shall not be entitled to receive any greater payment
under Section
3.1(a) than Lender who sold the participating interest to such
Participant would have received had it retained such interest for its own
account, unless the sale of such interest to such Participant is made with the
prior written consent of Borrower.

     

    (d)           Participation
Register.  In the event that any Lender sells participations in
all or a portion of a Registered Loan, such Lender, as acting solely for this
purpose as a non-fiduciary agent of Borrower, shall maintain a register on which
it enters the name of all Participants in the Registered Loans held by it and
the principal amount (and stated interest thereon) of the portion of the
Registered Loan subject to the participation (the “Participation
Register”).  A Registered Loan  (and the registered
note evidencing the same) may be participated in whole or in part only by
registration of such participation on the Participation Register (and the
registered note shall expressly so provide).  Any participation of
such Registered Loan (and the registered note evidencing the same) may be
effected only by the registration of such participation on the Participation
Register.  The Participation Register shall be available for
inspection by Borrower and Agent at any reasonable time and from time to time
upon reasonable prior notice.

     

    Section
13.3          Assignments by
Lenders.  Subject
to Section
13.3(h), any Lender may at any time assign all or any part of its rights
and obligations under the Loan Documents to one or more banks or other entities
(“Assignees”)
(including all or a portion of its Commitment and the Loans at the time owing to
it); provided
that any such assignment shall be subject to the following
conditions:

     

    (a)           Assignment and Assumption
Agreement.  The parties to each assignment shall execute and
deliver to Agent an Assignment and Assumption Agreement, substantially in the
form of Exhibit
G (an “Assignment and Assumption
Agreement”), or in such other form as may be agreed to by the parties
thereto, together with a processing and recordation fee of US$4,000 (unless such
fee is waived by Agent) and the Assignee, if it is not a Lender, shall deliver
to Agent an administrative questionnaire in form and substance satisfactory to
Agent.

     

    (b)           Minimum
Amounts.  In the case of an assignment of the entire remaining
amount of the assigning Lender’s Commitment and the Pro Rata Share of the Loans
at the time owing to it or in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be
assigned.  In any case not described in the foregoing sentence of this
Section
13.3(b), the aggregate amount of the Commitment (which for this purpose
includes the Loans outstanding thereunder) or, if the applicable Commitment is
not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption Agreement with respect to such assignment is delivered
to Agent or, if “Trade Date” is specified in the Assignment and Assumption
Agreement, as of the Trade Date) shall not be less than US$100,000, in the case
of any assignment in respect of the Loans, unless each of Agent and, so long as
no Default has occurred and is continuing, Borrower otherwise consents (each
such consent not to be unreasonably withheld or delayed).

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
        63

        
          

        

      

      
         

      

    

    (c)           Consents.  The
consent of Borrower and Agent shall not be required prior to an assignment by a
Lender.

     

    (d)           No Assignment to
Borrower.  No assignment shall be made by a Lender to Borrower
or any of Borrower’s Affiliates or Subsidiaries.

     

    (e)           No Assignment to Natural
Persons.  No assignment shall be made by a Lender to a natural
person.

     

    (f)     
      Effect; Effective
Date.  Subject to acceptance and recording thereof by Agent
pursuant to Section
13.3(g), from and after the effective date specified in each Assignment
and Assumption Agreement, the Assignee thereunder shall be a party to this
Agreement and, to the extent of the interest assigned by such Assignment and
Assumption Agreement, have the rights and obligations of a Lender under this
Agreement and the other Loan Documents, and the assigning Lender thereunder
shall, to the extent of the interest assigned by such Assignment and Assumption
Agreement, be released from its obligations under this Agreement and the other
Loan Documents (and, in the case of an Assignment and Assumption Agreement
covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Section 3.1 and Section 10.6 with
respect to facts and circumstances occurring prior to the effective date of such
assignment.  Any assignment or transfer by a Lender of rights or
obligations under this Agreement and the other Loan Documents that does not
comply with this Section 13.3(f) shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section
13.2.  The Assignment and Assumption Agreement shall contain a
representation by the Assignee to the effect that none of the consideration used
to make the purchase of the Commitment and the applicable Pro Rata Share of the
Loans under the applicable assignment agreement constitutes “plan assets” as
defined under Section 3(42) of ERISA and that the rights and interests of the
Assignee in and under the Loan Documents will not be “plan assets” under Section
3(42) of ERISA.  On and after the effective date of such assignment,
such Assignee shall for all purposes be a Lender party to this Agreement and any
other Loan Document executed by or on behalf of Lenders and shall have all the
rights and obligations of a Lender under the Loan Documents, to the same extent
as if it were an original party thereto, and the transferor Lender shall be
released with respect to the Commitment and the applicable Pro Rata Share of the
Loans assigned to such Assignee without any further consent or action by
Borrower, Lenders or Agent.  In the case of an assignment covering all
of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a Lender hereunder but shall continue to be entitled to
the benefits of, and subject to, those provisions of this Agreement and the
other Loan Documents which survive payment of the Obligations and termination of
the applicable agreement.  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 13.3 shall be
treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section
13.2.  Upon the consummation of any assignment to an Assignee
pursuant to this Section 13.3(f), the
transferor Lender, Agent and Borrower shall, subject to the provisions in Section 13.3(g)
below, make appropriate arrangements so that new Notes or, as appropriate,
replacement Notes are issued to such transferor Lender and new Notes or, as
appropriate, replacement Notes, are issued to such Assignee, in each case in
principal amounts reflecting their respective Commitments, as adjusted pursuant
to such assignment.

     

    (g)           Register.  Agent,
acting solely for this purpose as a non-fiduciary agent of Borrower, shall
maintain or cause to be maintained, a copy of each Assignment and Assumption
Agreement delivered to it and a register (the “Register”) on which
it enters the name and address of each Lender as the registered owner of the
applicable Pro Rata Share of the Loans (and the Commitment with respect thereto,
the principal amount thereof and the stated interest thereon) held by such
Lender (each, a “Registered
Loan”).   Borrower hereby acknowledges and makes the
Registered Loan a registered obligation for United States withholding tax
purposes.  A Registered Loan (and the registered note evidencing the
same) may be assigned or sold in whole or in part only by registration of such
assignment or sale on the Register (and each registered note shall expressly so
provide) and any assignment or sale of all or part of such Registered Loan (and
the registered note evidencing the same) may be effected only by registration of
such assignment or sale on the Register or by the surrender of the registered
note evidencing the same duly endorsed by (or accompanied by a written
instrument of assignment or sale duly executed by) the holder of such registered
note, whereupon one or more new registered notes in the same aggregate principal
amount shall be issued to the designated Assignee(s) or
Transferee(s).  Upon its receipt of an Assignment and Acceptance
executed by an assigning Lender and an Assignee, Agent shall, if Agent consents
to such assignment and if such Assignment and Acceptance has been completed
(a) accept such Assignment and Acceptance and (b) record the
information contained therein in the Register.  Prior to the
registration of assignment or sale of any Registered Loan (and the registered
note evidencing the same), Borrower shall treat the Person in whose name such
Registered Loan (and the registered note evidencing the same) is registered as
the owner thereof for the purpose of receiving all payments thereon and for all
other purposes.  The entries in the Register shall be conclusive, and
Borrower, Agent and Lenders may treat each Person whose name is recorded in the
Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary.  The Register
shall be available for inspection by Borrower and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

        

    

    
      
         

      

      
        64

        
          

        

      

      
         

      

    

    (h)           The
entries in the Register shall be conclusive, and Borrower, Agent and Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary.  The Register shall be available for
inspection by Borrower and any Lender, at any reasonable time and from time to
time upon reasonable prior notice.

     

    Section
13.4          No New
Loan.  No
assignment shall be, nor shall it be deemed to be, a discharge, rescission,
extinguishment, novation or substitution of the Loans or any portion thereof and
the portion of the Loans so assigned shall continue to be the same obligation
and not a new obligation.

     

    Section
13.5          Certain
Pledges.  Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank; provided
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

     

    Section
13.6          Dissemination of
Information.  Borrower
authorizes each Lender to disclose to any Participant or Assignee or any other
Person acquiring an interest in the Loan Documents by operation of law (each a
“Transferee”)
and any prospective Transferee any and all information in such Lender’s
possession concerning the creditworthiness of Borrower and its Subsidiaries,
including without limitation any information contained in any Reports; provided that each
Transferee and prospective Transferee agrees to be bound by Section 10.11 of this
Agreement.

     

    Section
13.7          Tax Forms.  If
any interest in any Loan Document is transferred to any transferee (including,
for this purpose, any participant of any Lender’s interest) which is not
incorporated under the laws of the United States or any State thereof, such
transferee, prior to the  effectiveness of such transfer and from time
to time thereafter as requested or necessary, shall provide to Agent any tax
forms and other tax certifications that it is legally able to deliver, properly
completed and executed, that are requested by Agent in order for Agent to comply
with its withholding and tax reporting obligations with respect to payments
under the Loan Documents.

     

    Section
13.8          Approval of Gaming
Authorities.  Notwithstanding
any provision in Section 13.2 and
Section 13.3 to
the contrary, the rights of the Lenders to assign interests or grant
participations in a Commitment or the Loans or any other interests of the
Lenders hereunder to any Person who is not the original Agent, an original
Lender, an Affiliate of an original Lender or the original Agent, or an Approved
Fund with respect to an original Lender or the original Agent, shall be subject
to the prior approval of all applicable Gaming Authorities, to the extent
required by applicable Gaming Laws.

     

    ARTICLE
14

     

    NOTICES

     

    Section
14.1          Notices.  All
notices, requests and other communications to any party hereunder shall be in
writing (including electronic transmission, facsimile transmission or similar
writing) and shall be given to such party: (x) in the case of Borrower, Agent,
each other Credit Party and any Lender, at its address, email address or
facsimile number set forth on Schedule 14.1,
or (x) in the case of any party, at such other address or facsimile number
as such party may hereafter specify for the purpose by notice to Agent and
Borrower in accordance with the provisions of this Section
14.1.  Each such notice, request or other communication shall
be effective (a) if given by facsimile transmission, when transmitted to
the facsimile number specified in this Section 14.1 and
confirmation of receipt is received, (b) if given by mail, 72 hours after
such communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid, or (c) if given by any other means, when delivered
(or, in the case of electronic transmission, received) at the address specified
in this Section
14.1; provided that notices to Agent
under Article 2
shall not be effective until received.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

      
      

    

    
      
         

      

      
        65

        
          

        

      

      
         

      

    

    Section
14.2           Change of
Address.  Borrower,
Agent and any Lender may each change the address for service of notice upon it
by a notice in writing to the other parties hereto.

     

    ARTICLE
15

     

    MISCELLANEOUS

     

    Section
15.1          Counterparts.  This
Agreement may be executed in any number of counterparts and by a different party
on separate counterparts, each of which, when executed and delivered, will be
deemed an original, and all of which, when taken together, shall constitute one
and the same agreement.  Delivery of an  executed
counterpart of this Agreement via facsimile transmission or in Adobe .pdf format
by electronic mail shall be binding, and as effective as delivery of a manually
executed counterpart, and may be used as admissible evidence that the Party so
transmitting intends to be bound by the terms set forth herein.

     

    Section
15.2          USA Patriot
Act.  Each
Lender hereby notifies Borrower that pursuant to the requirements of the USA
Patriot Act, if it is required to obtain, verify and record information that
identifies Borrower, each other Credit Party and its other Subsidiaries which
information that will allow such Lender to identify such Persons in accordance
with its requirements.  Borrower shall promptly, following a request
by Agent or any Lender, provide all documentation and other information that
Agent or such Lender reasonably requests in order to comply with its ongoing
obligations under applicable “know your customer” and anti-money laundering
rules and regulations, including the USA Patriot Act.

     

    Section
15.3          Restrictions under Gaming
Laws and Liquor Laws.  Notwithstanding
any other provision of this Agreement or any other Loan Document to the
contrary, all rights, remedies and powers provided in this Agreement and the
other Loan Documents, including with respect to the Collateral, may be exercised
only to the extent, and in the manner, that the exercise thereof does not
violate any applicable Gaming Laws or Liquor Laws, and only to the extent that
all approvals required for the exercise thereof, including prior approvals, are
obtained from the requisite Gaming Authorities and Liquor
Authorities.  Further, all  provisions of this Agreement and
the other Loan Documents, including with respect to the Collateral, are intended
to be subject to all applicable mandatory provisions of the Gaming Laws and
Liquor Laws and to be limited solely to the extent necessary to not render the
provisions of this Agreement and the other Loan Documents invalid or
unenforceable, in whole or in part.

     

    Section
15.4          Intralinks,
Etc.  Borrower
further agrees that, upon the original Lenders transferring or proposing to
transfer by way of participation, assignment or any other manner permitted under
Article 13 all
or a portion of such original Lender’s rights and/or obligations under the Loan
Documents (including all or a portion of its Commitment and/or the Pro Rata
Share of the Loans owing to it) (a “Syndication”), Agent
may make communications, Loan Documents and any amendments, restatements,
supplements or modifications thereof available to each Credit Party and its
Subsidiaries by posting such matters on Intralinks or a substantially similar
electronic transmission system (each such system, the “Platform”).  Borrower
hereby acknowledges that, upon Syndication, certain of Lenders may be
“public-side” Lenders (i.e., Lenders that do not wish to receive material
non-public information with respect to Borrower or its securities (each, a
“Public
Lender”), and Borrower hereby agrees that all materials and/or
information provided by or on behalf of each Credit Party hereunder and under
the Loan Documents (collectively, the “Borrower Materials”)
in advance of, upon and after Syndication may be posted on the Platform and that
(a) all Borrower Materials that are to be made available to Public Lenders
shall be clearly and conspicuously marked “PUBLIC” by a Credit Party, which
shall mean, at a minimum, that the word “PUBLIC” shall appear prominently on the
first page thereof, (b) by marking Borrower Materials “PUBLIC”, Credit
Parties shall be deemed to have authorized Agent, Lenders and their Affiliates
to treat such Borrower Materials as not containing any material non-public
information with respect to Borrower or its securities for purposes of United
States Federal and state securities laws, (iii) all Borrower Materials
marked “PUBLIC” are permitted to be made available through a portion of the
Platform designated “Public Investor”, and (c)  Agent, Lenders and their
Affiliates shall be entitled to treat any Borrower Materials that are not so
marked “PUBLIC” as being suitable only for posting on a portion of the Platform
not designated “Public Investor”. Notwithstanding the foregoing, Borrower shall
be under no obligation to mark any Borrower Materials “PUBLIC”. Nothing in this
Section 15.4
shall prejudice the right of Agent to give any notice or other communication
pursuant hereto or to any other Loan Document in any other manner specified
herein or therein.  Borrower acknowledges that the distribution of
material through an electronic medium is not necessarily secure and that there
are confidentiality and other risks associated with such
distribution.

     

    
      Fortress/NG
Washington II Holdings, LLC

      Credit
Agreement

       

    

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    ARTICLE
16

     

    CHOICE
OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

     

    Section
16.1          CHOICE OF
LAW.  THE
LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A CONTRARY EXPRESS CHOICE OF LAW
PROVISION, INCLUDING, BUT NOT LIMITED TO, THE MORTGAGES WHICH SHALL BE GOVERNED
BY THE LAWS OF THE STATE OF WASHINGTON) SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF
LAWS PROVISIONS.

     

    Section
16.2          CONSENT TO
JURISDICTION.  BORROWER
HEREBY IRREVOCABLY SUBMITS TO THE NON EXCLUSIVE JURISDICTION OF ANY UNITED
STATES FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND
BORROWER HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT,
ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF AGENT OR
ANY LENDER TO BRING PROCEEDINGS AGAINST BORROWER IN THE COURTS OF ANY OTHER
JURISDICTION.  ANY JUDICIAL PROCEEDING BY BORROWER AGAINST AGENT OR
ANY LENDER OR ANY AFFILIATE OF AGENT OR ANY LENDER INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW
YORK.

     

    Section
16.3          WAIVER OF
VENUE.  BORROWER
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF
VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN SECTION
16.2.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM
TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     

    Section
16.4         WAIVER OF JURY
TRIAL.  BORROWER,
AGENT AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
ANY LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

     

    *     *     *

     

    Fortress/NG
Washington II Holdings, LLC

    Credit
Agreement

     

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, Borrower,
Agent and Lenders have executed this Agreement as of the date first above
written.

     

    
      
        
          	
                  NG
      WASHINGTON II HOLDINGS, LLC

                
	
                  in
      its capacity as Borrower

                
	 
      	 
      
	
                  By:

                	
                  /s/
      Robert B. Sturges

                
	 
      	 
      
	
                  Name:

                	
                  Robert
      B. Sturges

                
	 
      	 
      
	
                  Title:

                	
                  Manager

                

        

      

    

     

    Signature
Page 1 of 2 to Fortress/NG Washington II Holdings, LLC

    Credit
Agreement

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      FORTRESS CREDIT
      CORP.,

                    
	
                      in
      its capacity as Agent

                    
	 
	
                      By:

                    	
                      /s/
      Constantine M. Dakolias

                    
	 
      	 
      
	
                      Name:

                    	
                      Constantine
      M. Dakolias

                    
	 
      	 
      
	
                      Title:

                    	
                      President

                    
	 
      	 
      
	
                      FORTRESS CREDIT OPPORTUNITIES I
      LP,

                    
	
                      as
      a Lender,

                    
	 
      
	
                      By:
      Fortress Credit Opportunities I GP LLC, its general
  partner

                    
	 
      	 
      
	
                      By:

                    	
                      /s/
      Constantine M. Dakolias

                    
	 
      	 
      
	
                      Name:

                    	
                      Constantine
      M. Dakolias

                    
	 
      	 
      
	
                      Title:

                    	
                      President

                    
	 
      	 
      
	
                      FORTRESS CREDIT FUNDING II
      LP,

                    
	
                      as
      a Lender

                    
	 
      
	
                      By:
      Fortress Credit Funding II GP LLC, its general partner

                    
	 
      	 
      
	
                      By:

                    	
                      /s/
      Constantine M. Dakolias

                    
	 
      	 
      
	
                      Name:

                    	
                      Constantine
      M. Dakolias

                    
	 
      	 
      
	
                      Title:

                    	
                      President

                    

            

          

        

      

    

     

    Signature
Page 2 of 2 to Fortress/NG Washington II Holdings, LLC

    Credit
Agreement

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    FORM
OF PLEDGE AGREEMENT

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

     

    FORM
OF SECURITY AGREEMENT

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    FORM
OF NOTE ISSUE NOTICE

     

    July
[__], 2010

     

    To:
Fortress Credit Corp., as Agent (the “Agent”) under the
Credit Agreement described below.

     

    
      	
               
      

            	
              Re:

            	
              Credit
      Agreement, to be dated on or about July 23, 2010 (as the same may be
      amended or modified, the “Credit
      Agreement”), among NG Washington II Holdings, LLC (the “Borrower”),
      Lenders named therein and Agent.  Capitalized terms used herein
      and not otherwise defined herein shall have the meanings assigned thereto
      in the Credit Agreement.

            

    

     

    This
notice is a Note Issue Notice pursuant to the Credit
Agreement.  Borrower hereby requests a borrowing under the Credit
Agreement as follows:

     

    1.           The
aggregate amount of the proposed Borrowing, as evidenced by the Notes to be
issued by Borrower on the Note Issue Date, is US$[___________].

     

    2.           The
requested Note Issue Date (which is a Business Day) is July [__],
2010.

     

    3.           Acquisition
Finance Consideration evidenced by the Notes should be applied towards the
purchase price for the Purchased Assets in accordance with the terms set forth
in the Asset Purchase Agreement.

     

    Borrower
certifies that as of the Note Issue Date (a) all of the conditions
precedent contained in Section 4.2 of the
Credit Agreement have been satisfied (or waived pursuant to Section 9.2(h)
of the Credit Agreement) and (b) all representations and warranties of
Borrower set forth in Article 5 of the
Credit Agreement are true and correct in all respects (subject to any express
qualification as to materiality contained in any such representation and
warranty and other than representations and warranties which expressly speak as
of a different date).

     

    Borrower
will indemnify each Lender for any loss or cost incurred by such Lender
resulting from the Notes not being issued on the date specified by Borrower in
this Note Issue Notice for any reason other than default by Lenders, including,
without limitation, any loss or cost in liquidating or employing deposits
acquired to fund or maintain each Lender’s Pro Rata Share of the
Loans.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned has executed this Notice as of the date first
written above.

     

    
      	 
      	
              NG WASHINGTON II HOLDINGS,
      LLC, as Borrower

            
	 
      	 
      	 
      
	 
      	
              By:

            	
                 

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Name:

            	
                 

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Title:

            	
                 

            	 
      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    FORM
OF NOTE

     

    [Date]

     

    NG
WASHINGTON II HOLDINGS, LLC, (the “Borrower”), promises
to pay _________________ or its registered successors or assigns (the “Lender”) the
aggregate unpaid principal amount of its Pro Rata Share of the Loans made by the
Lenders to Borrower pursuant to Article 2 of the
Agreement (as hereinafter defined), at the main office of Fortress Credit Corp.
in New York, New York, as Agent, together with interest on the unpaid principal
amount hereof at the rates and on the dates set forth in the Agreement (as
hereinafter defined).  Borrower shall pay the principal of and accrued
and unpaid interest on the Loans in full on the Applicable Maturity Date and
shall make such mandatory repayments as are required to be made under the terms
of Article 2 of
the Agreement (as hereinafter defined).

     

    The
Lender shall, and is hereby authorized to, record on the schedule attached
hereto, or to otherwise record in accordance with its usual practice, the date
and amount of the Loans and the date and amount of each principal repayment
hereunder.

     

    The
rights evidenced by this Note to receive principal and interest may only be
transferred if the transfer is registered on a record of ownership and the
transferee is identified as the owner of an interest in the obligation pursuant
to Section
13.2(d) or Section 13.3(g) of
the Agreement.  This Note may not at any time be endorsed to, or to
the order of, bearer.

     

    This Note
is one of the Notes issued pursuant to, and is entitled to the benefits of, the
Credit Agreement dated as of July 23, 2010 (as amended, amended and restated,
supplemented or otherwise modified and in effect from time to time, the “Agreement”), among
Borrower, the Lenders party thereto, including the Lender, and Fortress Credit
Corp., as Agent, to which Agreement reference is hereby made for a statement of
the terms and conditions governing this Note, including the terms and conditions
under which this Note may be prepaid or its maturity date
accelerated.  This Note is secured pursuant to the Collateral
Documents and guaranteed pursuant to the Guaranty, all as more specifically
described in the Agreement, and reference is made thereto for a statement of the
terms and provisions thereof.  Capitalized terms used herein and not
otherwise defined herein are used with the meanings attributed to them in the
Agreement.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first
written  above.

     

    
      	 
      	
              NG WASHINGTON II HOLDINGS,
      LLC, as Borrower

            
	 
      	 
      
	 
      	
              By:

            	
                 

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Print Name:

            	
                 

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              Title:

            	
                 

            	 
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
OF LOANS AND REPAYMENTS OF PRINCIPAL TO NOTE OF ___________________, DATED
_____________:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Date

                                  	 	
                                    Principal Amount of

                                    Loans

                                  	 	
                                    Payment Date

                                  	 	
                                    Principal Amount

                                    Repaid

                                  	 	
                                    Unpaid Balance

                                  
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 
      	 	 
      	 	 
      	 	 
      	 	 
      

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

     

    CLOSING
LIST

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
F

     

    FORM
OF COMPLIANCE CERTIFICATE

     

    [on Parent’s
letterhead]

     

    [Date of Compliance
Certificate]

    

    
      	
              To:

            	
              Fortress
      Credit Corp, as Agent

            

    

    
      	
               
      

            	
              under
      the below referenced Credit
Agreement

            

    

    1345 Avenue of the
Americas

    46th Floor

    New York, NY 10105

    
      	
            	
              Attn:

            	
              Constantine
      M. Dakolias, President

            

    

     

    
      With a
copy to:

    

     

    
      Fortress
Investment Group LLC

    

    
      Drawbridge
Special Opportunities Funds

    

    
      5221 N.
O’Connor Blvd., Suite 700

    

    
      Irving,
TX  75039

    

    
      	
               
      

            	
              Attn:

            	
              Andy
      Osborne

            

    

    

    
      	
               
      

            	
              Re:

            	
              Compliance
      Certificate for the [Fiscal Quarter][Fiscal Year] beginning on ___________
      and ending on _____________ (the “Test
      Date”).

            

    

    

    
      Ladies
and Gentlemen:

    

     

    Reference
is made to that certain CREDIT
AGREEMENT dated as of July __, 2010 (as the same may be amended, amended
and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by
and among NG WASHINGTON II
HOLDINGS, LLC, a Delaware limited liability company (“Borrower”), the
lenders identified on the signature pages thereof (such lenders, together with
their respective successors and permitted assigns, are referred to hereinafter
each individually as a “Lender” and
collectively as the “Lenders”), and FORTRESS CREDIT CORP., a
Delaware corporation, as agent to the Lenders (together with its successors and
assigns, “Agent”).  Capitalized
terms used in this Compliance Certificate have the meanings set forth in the
Credit Agreement unless specifically defined herein.

     

    Pursuant
to Section
6.1(h) of the Credit Agreement, I, the Chief Financial Officer of Parent
hereby certify that:

     

    1.           [The
financial information of the Credit Parties and their Subsidiaries furnished in
Schedule 1
hereto, as required pursuant to Section 6.1(a) of the Credit Agreement, has been
prepared in accordance with GAAP on a consolidated and consolidating basis, and
fairly presents the consolidated financial position of the Credit Parties and
their Subsidiaries.]1

     

    2.           [The
financial information of the Borrower and the Operator furnished in Schedule 1 hereto, as
required pursuant to Section 6.1(c) of the Credit Agreement, has been prepared
on a consolidated and consolidating basis and fairly presents the consolidated
financial position of the Borrower and the Operator.]2

     

    3.          
I have reviewed the terms of the Credit Agreement and have made, or caused to be
made under my supervision, a review in reasonable detail of the transactions and
condition of the Credit Parties during the accounting period covered by the
financial statements delivered herewith.

     

    4.           Such
review has not disclosed the existence on and as of the date hereof, and neither
I nor the President, Chief Executive Officer or Chief Financial Officer of each
of the Borrower and Operator (if any) have knowledge of the existence as of the
date hereof, of any event or condition that constitutes a Default or an Event of
Default, except for such conditions or events listed on Schedule 2 attached
hereto, specifying the nature and period of existence thereof and what action
Borrower and/or Operator has taken or is taking, or proposes to take with
respect thereto.

     

    
      
        

      
        1 Include
Paragraph 1 only if this compliance certificate is delivered in connection with
annual financial statements.

      

        
        2 Include
this Paragraph only if this compliance certificate is delivered in connection
with quarterly financial statements.

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.           The
representations and warranties of the Credit Parties set forth in the Credit
Agreement and the other Loan Documents are true and correct in all respects
(subject to any express qualification as to materiality contained in any such
representation or warranty, if applicable) on and as of the date hereof (except
to the extent they relate to a specified date), except as set forth on Schedule 3 attached
hereto.

     

    6.           Borrower
is in compliance with the applicable covenants in Section 6.23 and
6.24 of the
Credit Agreement as demonstrated on Schedule 4
hereof.

     

    7.           [The
Excess Cash Flow of the Borrower and the Operator for the Fiscal Quarter covered
by this Certificate, reported on a monthly basis, is set forth on Schedule 5 attached
hereto.]3

     

    8.           [There
are no material variations to the Approved CapEx Budget or the operating budget
prepared for the Fiscal Quarter ended on the Test Date other than as specified
on Schedule
6.]3

     

    9.           [The
aggregate amounts of Permitted Management Fees and Permitted Management Expenses
paid by the Company in the [Fiscal Quarter][Fiscal Year]
ending on the Test Date are set forth on Schedule 6 attached
hereto.]4

     

    [remainder of page intentionally left
blank]

    

      
        

    

    
      3 Include
this Paragraph and the corresponding Schedule only if this compliance
certificate is delivered in connection with quarterly financial
statements.

    

      
      4 Include
this Paragraph and the corresponding Schedule only if this compliance
certificate is delivered in connection with quarterly financial
statements.

      

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        
 

    

    IN
WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned this
_____ day of _____________, ________.

     

    
      	 
      	
              NEVADA GOLD & CASINOS,
      INC., a Nevada corporation, in its capacity as
    Parent

            
	 
      	 
      
	 
      	
              By:

            	
                

            	 
      
	 
      	
              Name:

            	 
      	 
      
	 
      	
              Title:

            	
              Chief
      Financial Officer

            	 
      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    SCHEDULE
1 TO COMPLIANCE CERTIFICATE

    

    Financial
Information

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
2 TO COMPLIANCE CERTIFICATE

    

    Default(s)
or Event(s) of Default

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
3 TO COMPLIANCE CERTIFICATE

    

    Representations
and Warranties

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
4 TO COMPLIANCE CERTIFICATE

    

    Financial
Covenants

    

    
      	
              1.

            	
              Leverage
      Ratio.5

            

    

    

    The
Funded Indebtedness to TTM Adjusted EBIDTA, measured on a consolidated basis
with Operator, and calculated as of the Test Date, is _____:1.0, as calculated
per Annex A
attached hereto, which [is/is
not] equal to or less than the applicable ratio set forth in Section 6.23(a) of
the Credit Agreement for such Test Date.

     

    
      	
              2.

            	
              NG
      Washington Quarterly Financial Covenants.5

            

    

     

    (a)           NG
Washington’s TTM EBITDAM, on a non-consolidated basis, as of the Test Date, is
__________, as calculated per Annex B attached
hereto, which [is/is
not] less than $2,500,000.

    

    (b)           The
maximum principal amount outstanding at any time during the Fiscal Quarter ended
on the Test Date of NG Washington’s Indebtedness, incurred by NG Washington and
remaining outstanding, was $___________, which [is][is not] in excess of
$4,150,000 in aggregate.

     

    
      	
              3.

            	
              NG
      Washington Annual Interest Payments.
      5

            

    

     

    Payments
of interest on the principal amount outstanding of Indebtedness of NG Washington
totaled $___________ for the Fiscal Quarter ended on the Test Date and
$___________ in aggregate for the fiscal year ending on the Test Date, which
[is][is not] greater
than $280,000.

     

    
      	
              4.

            	
              Operator
      Capital Expenditures. 6

            

    

     

    The
aggregate amount of Capital Expenditures paid or incurred by the Operator for
the Fiscal Year ending on the Test Date is $________, which [is][is not] greater than the
aggregate of Approved Capital Expenditures for such Fiscal Year.

     

    
      
        

      

      5 Include
this item only if this compliance certificate is delivered in connection with
quarterly financial statements.

    

      
      6 Include
this item only if this compliance certificate is delivered in connection with
annual financial statements.

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
A TO SCHEDULE 4 TO COMPLIANCE CERTIFICATE

    

    Test Date
[_______]

    

    Leverage Ratio

     

    (A)         As
of the Test Date, Funded Indebtedness of Borrower was $____________ and Funded
Indebtedness of Operator was $____________.

    

    (B)          For
the twelve (12) month period ending on the Test Date determined with respect to
Borrower and Operator on a consolidated basis, TTM Adjusted EBIDTA was
$________________ (determined as set forth below).

    

    (i)           Net
Income (excluding any extraordinary gains and losses): $_____________;
plus

    

    (ii)          Net
Interest Expense: $____________; plus

    

    (iii)         income
Tax expense: $____________; plus

    

    (iv)        
depreciation expense: $____________; plus

    

    (v)         
amortization expense: $___________; plus

    

    (vi)        
corporate overhead attributable to the Purchased
Assets:  $___________;

    

    minus the aggregate
of:

    

    (a)          all
non-cash items increasing Net Income: $___________; plus

    

    (b)       
  non-recurring gains and losses: $___________; plus

    

    (c)          income
Tax credits: $___________; plus

    

    (d)         gains
and losses from discontinued operations: $___________; plus

    

    (e)          non-cash
deferred and stock based compensation: $__________; plus

    

    (f)           non-recurring,
non-operating income: $___________.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
B TO SCHEDULE 4 TO COMPLIANCE CERTIFICATE

     

    NG Washington Financial
Covenants

     

    For the
twelve (12) month period ending on the Test Date determined with respect to NG
Washington, TTM Adjusted EBITDAM was $________________ (determined as set forth
below).

    

    (i)            TTM
Adjusted EBITDA $________________ determined as set forth in Annex A to this
Schedule 4; plus

    

    (ii)           management
fees paid in cash to the then appointed service supplier with respect to the
operations of the Existing Card
Rooms:  $___________.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5 TO COMPLIANCE CERTIFICATE

    

    Excess
Cash Flow

     

    1.           Calculation
of Excess Cash Flow

     

    First
Month of Fiscal Quarter:

     

    (a)          For
the month of [Month] [Year], the amount of Borrower’s and Operator’s Excess Cash
Flow, on a consolidated basis, was $___________ (determined as set forth
below):

     

    (i)           Net
Income: $___________; plus

     

    (ii) 
        depreciation expense and
amortization expense: $___________;

    

    minus the aggregate
of:

    

    (iii)         Cash
Capital Expenditures: $___________; plus

    

    (iv)         Cash
Interest Expense: $___________.

    

    Second
Month of Fiscal Quarter:

     

    (a)          For
the month of [Month] [Year], the amount of Borrower’s and Operator’s Excess Cash
Flow, on a consolidated basis, was $___________ (determined as set forth
below):

     

    (i)           Net
Income: $___________; plus

     

    (ii)   
      depreciation expense and amortization
expense: $___________;

    

    minus the aggregate
of:

    

    (iii)         Cash
Capital Expenditures: $___________; plus

    

    (iv)         Cash
Interest Expense: $___________.

    

     

    Third
Month of Fiscal Quarter:

     

    (a)          For
the month of [Month] [Year], the amount of Borrower’s and Operator’s Excess Cash
Flow, on a consolidated basis, was $___________ (determined as set forth
below):

     

    (i)           Net
Income: $___________; plus

     

    (ii)          depreciation
expense and amortization expense: $___________;

    

    minus the aggregate
of:

    

    (iii)         Cash
Capital Expenditures: $___________; plus

    

    (iv)         Cash
Interest Expense: $___________.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    2.            Application
of Excess Cash Flow.

     

    Based on
the calculations set forth on this Schedule, Borrower’s and Operator’s Excess
Cash Flow for each of the following months was applied as follows:

     

    First
Month of Fiscal Quarter:

     

    For the
month of [Month] [Year], the Excess Cash Flow of the Borrower and Operator was
applied as follows:

     

    First:       if
an Event of Default has occurred and is continuing, 100% to the prepayment of
the Loans $___________;

     

    Second, Distribution
to Parent to pay interest on the Rogers’ Note $___________;

     

    Third, prepayment of
the Loans (66.67%)  $___________;

     

    Fourth, Distribution
to Parent (33.33%)  $___________.

     

    Second
Month of Fiscal Quarter:

     

    For the
month of [Month] [Year], the Excess Cash Flow of the Borrower and Operator was
applied as follows:

     

    First:       if
an Event of Default has occurred and is continuing, 100% to the prepayment of
the Loans $___________;

     

    Second, Distribution
to Parent to pay interest on the Rogers’ Note $___________;

     

    Third, prepayment of
the Loans (66.67%)  $___________;

     

    Fourth, Distribution
to Parent (33.33%)  $___________.

     

    Third
Month of Fiscal Quarter:

     

    For the
month of [Month] [Year], the Excess Cash Flow of the Borrower and Operator was
applied as follows:

     

    First:       if
an Event of Default has occurred and is continuing, 100% to the prepayment of
the Loans $___________;

     

    Second, Distribution
to Parent to pay interest on the Rogers’ Note $___________;

     

    Third, prepayment of
the Loans (66.67%)  $___________;

     

    Fourth, Distribution
to Parent (33.33%)  $___________.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
6 TO COMPLIANCE CERTIFICATE

    

    Material
Variations to Approved CapEx Budget and Operating Budget

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
7 TO COMPLIANCE CERTIFICATE

    

    Permitted
Management Fees and Permitted Management Expenses

     

    1.            Permitted
Management Fees

     

    The
aggregate amount of management fees to the Service Supplier pursuant to the
Management Agreement incurred or paid by the Borrower and Operator for the
Fiscal Quarter ended on the Test Date is equal to $_________.  Such
amount [is/is not] less
than $_________, an amount equal to three percent (3%) of Operator’s Gross
Revenues for such Fiscal Quarter.

     

    2.            Permitted
Management Expenses

     

    The amount of payments to and
reimbursements of Parent by Operator for the Fiscal Quarter ending on the Test
Date and for the Fiscal Year ending on the Test Date were as
follows:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Expense Category

                                        	 	
                                          Fiscal Quarter

                                        	 	
                                          Fiscal Year-to-Date

                                        	 	
                                          Exhibit N Stated

                                          Amount for Fiscal

                                          Year [______]

                                        	 	
                                          Exhibit N Stated

                                          Amount Plus 20%

                                        
	
                                          Insurance, including
      but not limited to:

                                           

                                          General
      Business Liability

                                          Property
      Terrorism

                                          Crime

                                          Umbrella

                                          Theft
      and HR Exclusions

                                          Errors
      and omissions

                                          Auto

                                          Liquor

                                            

                                        	 	 
      	 	 
      	 	 
      	 	 
      
	
                                          Employer contributions to Employee Benefit
      Plans:

                                          
                                          

                                          Health

                                          Dental

                                          Life

                                          Disability

                                          Optional
      (AFLAC, Additional Life)

                                          401K
      and Match

                                          401K
      maintenance quarterly fees $200 per unit

                                        	 	 
      	 	 
      	 	 
      	 	 
      
	
                                            

                                          Taxes, including but not limited
      to:

                                           

                                          Federal
      income

                                          State
      income, if applicable

                                          Property

                                        	 	 
      	 	 
      	 	 
      	 	 
      
	
                                           

                                          Licenses and Fees, including but not limited
      to:

                                            

                                          Incorporation
      fees

                                          State
      and City Operating Licenses

                                          Gaming
      Licenses

                                        	 	 
      	 	 
      	 	 
      	 	 
      
	
                                            

                                          Professional Fees, including but not limited
      to:

                                           

                                          Sarbanes-Oxley
      Compliance

                                          Audits

                                          Tax
      Return preparation

                                          Legal

                                          Consultants
      (if required)

                                        	 	 
      	 	 
      	 	 
      	 	 
      

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    The
amount listed in the table above in each row of the Fiscal Year-to-Date column
[is/is not] less than
the corresponding amount listed for such expense in the column labeled “Exhibit N Stated
Amount Plus 20%” for every row.

     

    The amount of travel expenses for the
Borrower and Operator equal $________ for the Fiscal Quarter ended on the Test
Date and equal $________ for the Fiscal Year ending on the Test
Date.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
G

     

    FORM
OF ASSIGNMENT AND ASSUMPTION AGREEMENT

     

    This
Assignment and Assumption Agreement (this “Assignment
Agreement”) is dated as of the Effective Date set forth below and is
entered into by and between [Insert name of Assignor] (the
“Assignor”) and
[Insert name of
Assignee] (the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (as amended, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the
Assignee.  The Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part
of this Assignment Agreement as if set forth herein in full.

     

    For an
agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by Agent as
contemplated below, (a) the interest in and to all of the Assignor’s rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto that represents the
amount and percentage interest identified below of all of the Assignor’s
outstanding rights and obligations under the respective facilities identified
below (including without limitation any guaranties included in such facilities,
and (b) to the extent permitted to be assigned under applicable law, all
claims (including without limitation contract claims, tort claims, malpractice
claims, statutory claims and all other claims at law or in equity), suits,
causes of action and any other right of the Assignor (in its capacity as a
Lender) against any Person whether known or unknown arising under or in
connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all other
claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (a) above (the rights
and obligations sold and assigned by the Assignor to the Assignee pursuant to
clauses (a) and (b) above being
referred to herein collectively as the “Assigned
Interest”).  Such sale and assignment is without recourse to
the Assignor and, except as expressly provided in this Assignment Agreement,
without representation or warranty by the Assignor.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          1.

                                        	
                                          Assignor:

                                        	 
      	 
      
	 	 	 	 
	
                                          2.

                                        	
                                          Assignee:

                                        	 
      	
                                             [and
      is an Affiliate/Approved

                                        
	 
      	 
      	
                                          Fund
      of [identify
      Lender]]7

                                        	 
      
	 	 	 	 
	
                                          3.

                                        	
                                          Borrower(s):

                                        	
                                          
                                            NG
      Washington II Holdings, LLC

                                          

                                        	 
      
	 	 	 	 
	
                                          4.

                                        	
                                          Agent:

                                        	
                                          
                                            Fortress
      Credit Corp.

                                          

                                        	 
      
	 	 	 
	
                                          5.

                                        	
                                          Credit
      Agreement:

                                        	
                                          The
      US$5,070,000 Credit Agreement dated as of [______][__], 2010 (as amended,
      amended and restated, supplemented and/or otherwise modified and in effect
      from time to time), among NG Washington II Holdings, LLC, as Borrower, the
      Lenders party thereto, and Fortress Credit Corp., as
  Agent.

                                        
	 	 	 	 
	
                                          6.

                                        	
                                          Assigned Interest:

                                        	 
      	 
      

                                

                              

                            

                             

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Commitment/Pro Rata Share of

                                    Loans for all Lenders*

                                  	 	
                                    Amount of Commitment/ Pro Rata

                                    Share of Loans Assigned*

                                  	 	
                                    Percentage Assigned of Commitment/

                                    Pro Rata Share of Loans8

                                  
	
                                    US$

                                  	 	US$	 	 	
                                    _______%

                                  
	
                                    US$

                                  	 	US$	 	 	
                                    _______%

                                  
	
                                    US$

                                  	 	US$	 	 	
                                    _______%

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      
        
          
            

          

        

        7 Select as
applicable.
  
        *  Amount
to be adjusted by the counterparties to take into account any payments or
prepayments made between the Trade Date and the Effective Date.

         

        8 Set
forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all
Lenders thereunder.

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        
          
            
              
                	
                        7.

                      	
                        Trade
      Date:

                      	 
      	
                        9

                      
	 
      	 
      	 
      	 
      
	
                        Effective
      Date:  ____________, 20__ [TO BE INSERTED BY AGENT AND WHICH
      SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER BY
      AGENT.]

                      

              

            

          

        

      

    

     

    
      
        

      

    

    
      9  Insert
if satisfaction of minimum amounts is to be determined as of the Trade
Date.

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    The terms
set forth in this Assignment Agreement are hereby agreed to:

     

    
      
        
          
            	
                    ASSIGNOR

                  
	
                    [NAME
      OF ASSIGNOR]

                  
	 
      	 
      
	
                    By:

                  	 
      
	 
      	
                    Title:

                  
	 
      	 
      
	
                    ASSIGNEE

                  
	
                    [NAME
      OF ASSIGNEE]

                  
	 
      	 
      
	
                    By:

                  	 
      
	 
      	
                    Title:

                  

          

        

      

    

     

    [Consented
to,]10 Acknowledged
and Accepted:

     

    [NAME OF
AGENT], as Agent

     

    By:

    Title:

     

    [Consented
to:]11

     

    [NAME OF
RELEVANT PARTY]

     

    By:

    Title:

      
      
        

      

      10  Refer
to Section 13.3(b).

    

      
      11  Refer
to Section 13.3(b).

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ANNEX
1

    TERMS
AND CONDITIONS FOR

    ASSIGNMENT
AND ASSUMPTION AGREEMENT

     

    1.           Representations and
Warranties.

     

    1.1         Assignor.  The
Assignor represents and warrants that (a) it is the legal and beneficial
owner of the Assigned Interest, (b) the Assigned Interest is free and clear
of any lien, encumbrance or other adverse claim and (c) it has full power
and authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and to consummate the transactions contemplated
hereby.  Neither the Assignor nor any of its officers, directors,
employees, agents or attorneys shall be responsible for (i) any statements,
warranties or representations made in or in connection with the Credit Agreement
or any other Loan Document, (ii) the execution, legality, validity,
enforceability, genuineness, sufficiency, perfection, priority, collectability,
or value of the Loan Documents or any collateral thereunder, (iii) the
financial condition of Borrower, any of its Subsidiaries or Affiliates or any
other Person obligated in respect of any Loan Document, (iv) the
performance or observance by Borrower, any of its Subsidiaries or Affiliates or
any other Person of any of their respective obligations under any Loan Document,
(v) inspecting any of the property, books or records of Borrower, or any
guarantor, or (vi) any mistake, error of judgment, or action taken or
omitted to be taken in connection with the Loans or the Loan
Documents.

     

    1.2         Assignee.  The
Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and to consummate the transactions contemplated hereby and
to become a Lender under the Credit Agreement, (ii) it meets all the
requirements to be an Assignee under Section 13.3 of the
Credit Agreement (subject to such consents, if any, as may be required under
such Section
13.3 of the Credit Agreement), (iii) from and after the Effective Date, it
shall be bound by the provisions of the Credit Agreement as a Lender thereunder
and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it is sophisticated with respect to decisions to
acquire assets of the type represented by the Assigned Interest and either it,
or the person exercising discretion in making its decision to acquire the
Assigned Interest, is experienced in acquiring assets of such type
(v) agrees that its payment instructions and notice instructions are as set
forth in Schedule 1 to this Assignment Agreement, (vi) confirms that
none of the funds, monies, assets or other consideration being used to make the
purchase and assumption hereunder are “plan assets” as defined under Section
3(42) of ERISA and that its rights, benefits and interests in and under the Loan
Documents will not be “plan assets” under Section 3(42) of ERISA,
(vii) agrees to indemnify and hold the Assignor harmless against all
losses, costs and expenses (including, without limitation, reasonable attorneys’
fees) and liabilities incurred by the Assignor in connection with or arising in
any manner from the Assignee’s non-performance of the obligations assumed under
this Assignment Agreement, (viii) it has received a copy of  the
Credit Agreement, together with copies of financial statements and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment Agreement and to purchase
the Assigned Interest on the basis of which it has made such analysis and
decision independently and without reliance on Agent or any other Lender, and
(ix) attached as Schedule 1 to this Assignment Agreement is any
documentation required to be delivered by the Assignee with respect to its tax
status pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee and (b) agrees that (i) it will,
independently and without reliance on Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

     

    2.           Payments.  The
Assignee shall pay the Assignor, on the Effective Date, the amount agreed to by
the Assignor and the Assignee.  From and after the Effective Date,
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective
Date.

     

    3.           No New
Loan.  The Assigned Interest shall not be, nor shall it be
deemed to be, a discharge, rescission, extinguishment, novation or substitution
of the Loans or any portion thereof and the portion of the Loans so assigned
shall continue to be the same obligation and not a new obligation.

     

    4.           General
Provisions.  This Assignment Agreement shall be binding upon,
and inure to the benefit of, the parties hereto and their respective successors
and assigns.  This Assignment Agreement may be executed in any number
of counterparts, which together shall constitute one
instrument.  Delivery of an executed counterpart of a signature page
of this Assignment Agreement by facsimile shall be effective as delivery of a
manually executed counterpart of this Assignment Agreement.  This
Assignment Agreement shall be governed by, and construed in accordance with, the
law of the State of New York.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    ADMINISTRATIVE
QUESTIONNAIRE

     

    On file
with Agent

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    EXHIBIT
H

     

    FORM
OF EXTENSION NOTICE

     

    [______
__, 2012]

     

    Fortress
Credit Corp

    1345
Avenue of the Americas

    46th
Floor

    New York
NY 10105

    Telephone: 212
798 6130

    Fax: 212
798 6099

    Attn:  Constantine
M. Dakolias, President

     

    Re:  NG Washington II Holdings,
LLC – Extension Notice re Maturity Date

     

    Ladies
and Gentlemen:

     

    The
undersigned, NG Washington II Holdings, LLC (“Borrower”), refers to
the Credit Agreement dated as of July 23, 2010 (the “Credit Agreement”,
the terms therein being used herein as therein defined), among the undersigned,
the financial institutions party thereto as Initial Lenders, Fortress Credit
Corp, as Agent (the “Agent”), and hereby
gives you, in your capacity as Agent, irrevocable notice, pursuant to and in
accordance with Section 2.2 of the
Credit Agreement, that the undersigned hereby elects, subject to the
satisfaction of each condition set forth in Section 4.3 of the
Credit Agreement in a manner satisfactory to Agent in its sole discretion, to
extend the Initial Maturity Date of the Loan, being _______ ___, 2012, to the
Extended Maturity Date of the Loan, which would be _______ ___,
2013.

     

    Unless
otherwise defined herein, capitalized terms used in this Extension Notice shall
have the meanings set forth in the Credit Agreement.

     

    The
undersigned hereby certifies that no Default or Unmatured Default has occurred
and is continuing or would result from the exercise of the Extension Option,
either as of the date hereof or as of the Initial Maturity Date.

     

    The
undersigned further certifies that the Borrower and the Operator are in
compliance with the applicable covenants in Section 4.3(e) and
4.3(f), and as
demonstrated on Schedule 1 attached hereto.

     

    
      
        
          	
                  Very
      truly yours,

                
	 
      
	
                  NG
      WASHINGTON II HOLDINGS, LLC, as Borrower

                
	 
      	 
      
	
                  By:

                	 
      
	
                  Name:

                
	
                  Title:
      Chief Financial
Officer

                

        

      

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    SCHEDULE
1

    

    Financial
Covenants

    

    Leverage
Ratio.

    

    (a)           The
Funded Indebtedness to TTM Adjusted EBIDTA, measured on a consolidated basis
with Operator, and calculated as of the last calendar day of the last calendar
month prior to the Initial Maturity Date for which financial statements have
been furnished to Agent by Borrower pursuant to Section 6.1 of the Credit
Agreement (the “Test
Date”), is _____:1.0, as calculated per Annex A attached
hereto, which [is/is
not] equal to or less than 2.0:1.0.

     

    (b)           The
Funded Indebtedness to Three-Month Annualized Adjusted EBIDTA, measured on a
consolidated basis with Operator, and calculated as of the Test Date, is
_____:1.0, as calculated per Annex A attached
hereto, which [is/is
not] equal to or less than 2.0:1.0.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    ANNEX A TO SCHEDULE
1

    

    [Test
Date]

    

    Trailing Twelve Month
Leverage Ratio

     

    (A)         As
of the Test Date, Funded Indebtedness of Borrower was $____________ and Funded
Indebtedness of Operator was $____________.

    

    (B)         For
the twelve (12) month period ending on the Test Date determined with respect to
Borrower and Operator on a consolidated basis, TTM Adjusted EBIDTA was
$________________ (determined as set forth below).

    

    (i)           Net
Income (excluding any extraordinary gains and losses): $_____________;
plus

    

    (ii)          Net
Interest Expense: $____________; plus

    

    (iii)         income
Tax expense: $____________; plus

    

    (iv)        depreciation
expense: $____________; plus

    

    (v)         amortization
expense: $___________; plus

    

    (vi)        corporate
overhead attributable to the Purchased
Assets:  $___________;

    

    minus the aggregate
of:

    

    (a)    
     all non-cash items increasing Net Income:
$___________; plus

    

    (b)          non-recurring
gains and losses: $___________; plus

    

    (c)          income
Tax credits: $___________; plus

    

    (d)         gains
and losses from discontinued operations: $___________; plus

    

    (e)          non-cash
deferred and stock based compensation: $__________; plus

    

    (f)           non-recurring,
non-operating income: $___________.

    

    Three-Month Annualized
Leverage Ratio

     

    (A)          As
of the Test Date, Funded Indebtedness of Borrower was $____________ and Funded
Indebtedness of Operator was $____________.

    

    (B)           For
the three (3) month period ending on the Test Date determined with respect to
Borrower and Operator on a consolidated basis, three-months Adjusted EBIDTA was
$________________ (determined as set forth below).  Such amount
multiplied by four (4), the Three-Month Annualized Adjusted EBITDA, is
$________________.

    

    (i)           Net
Income (excluding any extraordinary gains and losses): $_____________;
plus

    

    (ii)          Net
Interest Expense: $____________; plus

    

    (iii)         income
Tax expense: $____________; plus

    

    (iv)        depreciation
expense: $____________; plus

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (v)         amortization
expense: $___________; plus

    

    (vi)        corporate
overhead attributable to the Purchased
Assets:  $___________;

    

    minus the aggregate
of:

    

    (a)          all
non-cash items increasing Net Income: $___________; plus

    

    (b)          non-recurring
gains and losses: $___________; plus

    

    (c)          income
Tax credits: $___________; plus

    

    (d)         gains
and losses from discontinued operations: $___________; plus

    

    (e)          non-cash
deferred and stock based compensation: $__________; plus

    

    (f)           non-recurring,
non-operating income: $___________.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
I

     

    FORM
OF GUARANTY

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
J

     

    FORM
OF GAMING REPORT

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
K

     

    AGENT’S
ACCOUNT

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
L

     

    COMMITMENTS
AND PRO RATA SHARES OF THE LENDERS

     

    
      
        
          	
                  Lender

                	 	
                  Commitment

                	 	 	
                  Pro Rata Share

                	 
	 
      	 	 	 	 	 	 
	
                  Fortress
      Credit Opportunities I LP

                	 	US$	4,309,500.00	 	 	 	85	%
	 
      	 	 	 	 	 	 	 	 
	
                  Fortress
      Credit Funding II LP

                	 	US$	760,500.00	 	 	 	15	%

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
M

     

    DEPOSIT
ACCOUNTS AND SECURITIES ACCOUNTS

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
N

     

    PERMITTED
MANAGEMENT EXPENSES

     

    
      
        
          
            
              
                
                  
                    
                      	 
      	 	
                              Fiscal Year to April 30,

                              2011

                            	 	 	
                              Fiscal Year to April 30,

                              2012

                            	 	 	
                              Fiscal Year to April 30,

                              2013

                            	 
	
                              Insurance, including but not limited
      to:

                            	 	$	180,000	 	 	$	189,000	 	 	$	198,450	 
	
                              General
      Business Liability

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Property
      Terrorism

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Crime

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Umbrella

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Theft
      and HR Exclusions

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Errors
      and omissions

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Auto

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Liquor

                            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Employer contribution to Employee Benefit
      Plans:

                            	 	$	250,000	 	 	$	262,500	 	 	$	275,625	 
	
                              Health

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Dental

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Life

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Disability

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Optional
      (AFLAC, Additional Life)

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              401K
      and Match

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              401K
      maintenance quarterly fees $200 per unit

                            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Taxes, including but not limited to (but excluding
      gaming taxes):

                            	 	$	836,000	 	 	$	877,800	 	 	$	921,690	 
	
                              Federal
      income

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              State
      income, if applicable

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Property

                            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Licenses and Fees, including but not limited
      to:

                            	 	$	333,333	 	 	$	350,000	 	 	$	367,500	 
	
                              Incorporation
      fees

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              State
      and City Operating Licenses

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Gaming
      Licenses

                            	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Professional Fees, including but not limited
      to:

                            	 	$	166,667	 	 	$	175,000	 	 	$	183,750	 
	
                              Sarbanes-Oxley
      Compliance

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Audits

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Tax
      return preparation

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Legal

                            	 	 	 	 	 	 	 	 	 	 	 	 
	
                              Consultants
      (if required)

                            	 	 	 	 	 	 	 	 	 	 	 	 

                    

                  

                

              

            

          

        

      

    

    

    Notes:

    1.
Excludes actual travel expenses incurred which are, subject to Section
6.25(b)(ii) of the Credit Agreement, to be reimbursed by Operator upon
submission of invoices therefor to Operator by Parent.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
1.1

     

    MORTGAGED
PROPERTIES

     

    1.           Club
Hollywood Casino (Building)

    16716
Aurora Avenue North

    Shoreline,
WA 98133

    

    2.           Club
Hollywood Casino (Parking Lot)

    16622
Aurora Avenue North

    Shoreline,
WA 98133

    

    3.           Silver
Dollar Casino - Mill Creek 

    17917
Bothell Everett Highway

    Bothell,
WA 98012

    

    4.           Silver
Dollar Casino - Renton

    3100 East
Valley Road

    Renton,
WA 98055

    

    5.           Silver
Dollar Casino - SeaTac

    19222
International Boulevard

    SeaTac,
WA 98188

    

    6.           Golden
Nugget Casino 

    14025
Interurban Avenue South

    Tukwila,
WA 98168

    

    7.           Royal
Casino

    13010
Highway 99 South

    Everett,
WA 98204

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.7

     

    LITIGATION
AND CONTINGENT OBLIGATIONS

     

    LITIGATION

     

    
      	
               
      

            	
              1.

            	
              Threat
      of a lawsuit by GOLD & Associates of Jacksonville, Inc. d/b/a Gold
      & Associates against Nevada Gold & Casinos,
  Inc.

            

    

     

    CONTINGENT
OBLIGATIONS

     

    
      	
               
      

            	
              1.

            	
              Nevada
      Gold & Casinos, Inc. is a guarantor in favor of Crazy Moose Casino,
      Inc., Crazy Moose Casino II, Inc., Coyote Bob’s, Inc. and Gullwing III,
      LLC pursuant to the terms of that certain Commercial Guaranty dated May
      12, 2009 among Nevada Gold & Casinos, Inc., Crazy Moose Casino, Inc.,
      Crazy Moose Casino II, Inc,. Coyote Bob’s, Inc. and Gullwing III,
      LLC.

            

    

     

    
      	
               
      

            	
              2.

            	
              NG
      Washington, LLC is a guarantor in favor of Louise Rogers pursuant to the
      terms of that certain Loan Guaranty Agreement dated July 7, 2009 among
      Gold Mountain Development, LLC, CGC Holdings, L.L.C., Colorado Grande
      Enterprises, Inc., NG Washington, L.L.C., Nevada Gold BVR, L.L.C. and
      Louise H. Rogers.

            

    

     

    
      	
               
      

            	
              3.

            	
              Nevada
      Gold & Casinos, Inc. is a guarantor in favor of Sterling Savings Bank
      pursuant to the terms of that certain Business Loan Agreement dated June
      3, 2009 between NG Washington, LLC and Sterling Savings
    Bank.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.8.1

    

    CREDIT
PARTY CORPORATE INFORMATION

    

    
      
        	
                Current Legal

                Name

              	 
      	
                Jurisdiction of

                Organization

              	 
      	
                Organization 

                Number

              	 
      	
                Location of

                Chief Executive

                Office/Sole Place

                of Business

              	 
      	
                Legal Name(s) for

                Last 5 Years

              
	
                Nevada
      Gold & Casinos, Inc.

              	 
      	
                Nevada

              	 
      	
                1530-77

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Nevada
      Gold & Casinos, Inc.

              
	
                NG
      Washington, LLC

              	 
      	
                Washington

              	 
      	
                602-899-429

              	 
      	
                402
      16th Street NE, Suite 106

                Auburn,
      WA 98002

              	 
      	
                NG
      Washington, LLC

              
	
                NG
      Washington II Holdings, LLC

              	 
      	
                Delaware

              	 
      	
                4827119

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                NG
      Washington II Holdings, LLC

              
	
                NG
      Washington II, LLC

              	 
      	
                Washington

              	 
      	
                602-990-936

              	 
      	
                711
      Powell Ave., SW

                Renton,
      WA 98057

              	 
      	
                NG
      Washington II, LLC

              
	
                Nevada
      Gold NY, Inc.

              	 
      	
                New
      York

              	 
      	
                F050912000876

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Nevada
      Gold NY, Inc.

              
	
                Nevada
      Gold Vicksburg, LLC

              	 
      	
                Mississippi

              	 
      	
                922158

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Nevada
      Gold Vicksburg, LLC

              
	
                CGC
      Holdings, LLC

              	 
      	
                Nevada

              	 
      	
                E0209492005-7

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                CGC
      Holdings, LLC

              
	
                Colorado
      Grande Enterprises, Inc.

              	 
      	
                Colorado

              	 
      	
                20011216166

              	 
      	
                300
      E. Bennett Ave.

                Cripple
      Creek, CO 80813

              	 
      	
                Colorado
      Grande Enterprises, Inc.

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                Black
      Hawk Gold, Ltd.

              	 
      	
                Colorado

              	 
      	
                19971070727

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Blackhawk
      Gold, Ltd.

                Black
      Hawk Gold, Ltd.

              
	
                Gold
      Mountain Development, LLC

              	 
      	
                Colorado

              	 
      	
                941047960

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Gold
      Mountain Development, LLC

              
	
                Nevada
      Gold Speedway, LLC

              	 
      	
                Nevada

              	 
      	
                E0100102010-9

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Nevada
      Gold Speedway, LLC

              
	
                Nevada
      Gold BVR, LLC

              	 
      	
                Nevada

              	 
      	
                E0162412005-3

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Nevada
      Gold BVD, L.L.C.,

                Nevada
      Gold BVR, LLC

              
	
                Gold
      River, LLC

              	 
      	
                Nevada

              	 
      	
                7783-2004

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Gold
      River, LLC, Nevada Gold River, LLC

              
	
                Dry
      Creek Casino, LLC

              	 
      	
                Texas

              	 
      	
                07092796

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Dry
      Creek Casino, LLC

              
	
                Texas
      City Limits, LLC

              	 
      	
                Texas

              	 
      	
                800438195

              	 
      	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	 
      	
                Texas
      City Limits, LLC

              
	
                Nevada
      Gold Management Services, Inc.

              	
                  

              	
                Texas

              	
                  

              	
                801043570

              	
                  

              	
                50
      Briar Hollow Lane, Suite 500W

                Houston,
      TX 77027

              	
                  

              	
                Nevada
      Gold Management Services,
Inc.

              

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.8.2

     

    CREDIT
PARTY ORGANIZATIONAL STRUCTURE

     

    (a)           Authorized Capital Stock of
each Subsidiary of Parent

     

    
      
        
          
            
              
                	
                        Investment

                        In

                      	 	
                        Owned

                        By

                      	 	
                        Amount of

                        Investment

                      	 	 	
                        Percent Ownership

                      	 
	
                        NG
      Washington, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	13,175,000	 	 	 	100	%
	
                        NG
      Washington II Holdings, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        NG
      Washington II, LLC

                      	 	
                        NG
      Washington II Holdings, LLC

                      	 	$	7,500,000	 	 	 	100	%
	
                        Nevada
      Gold NY, Inc.

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Nevada
      Gold Vicksburg, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        CGC
      Holdings, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	7,987,903	 	 	 	100	%
	
                        Colorado
      Grande Enterprises, Inc.

                      	 	
                        CGC
      Holdings, LLC

                      	 	$	1	 	 	 	100	%
	
                        Black
      Hawk Gold, Ltd.

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Gold
      Mountain Development, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Nevada
      Gold Speedway, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Nevada
      Gold BVR, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Gold
      River, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%
	
                        Dry
      Creek Casino, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	69	%
	
                        Texas
      City Limits, LLC

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	540	 	 	 	54	%
	
                        Nevada
      Gold Management Services, Inc.

                      	 	
                        Nevada
      Gold & Casinos, Inc.

                      	 	$	1	 	 	 	100	%

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    (b)           Subscriptions, Options,
Warrants, Calls

     

    Stock Options issued by
Nevada Gold & Casinos, Inc.

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  	
                                                                          Name

                                                                        	 	
                                                                          Exercisable

                                                                        	 	 	
                                                                          Unexercicable

                                                                        	 	 	
                                                                          Option Exercise

                                                                          Price ($)

                                                                        	 	
                                                                          Issued

                                                                        	 	
                                                                          Vesting

                                                                        	 	
                                                                          Option Expiration Date

                                                                        
	
                                                                          Robert
      B. Sturges

                                                                        	 	 	100,000	 	 	 	 	 	 	4.87	 	
                                                                          10/12/06

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          10/12/16

                                                                        
	 
      	 	 	200,000	 	 	 	 	 	 	1.65	 	
                                                                          8/30/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          8/30/12

                                                                        
	 
      	 	 	100,000	 	 	 	 	 	 	1.20	 	
                                                                          1/23/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/23/13

                                                                        
	 
      	 	 	150,000	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          James
      J. Kohn

                                                                        	 	 	26,000	 	 	 	 	 	 	3.79	 	
                                                                          10/23/06

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          10/23/11

                                                                        
	 
      	 	 	60,000	 	 	 	 	 	 	1.65	 	
                                                                          8/30/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          8/30/12

                                                                        
	 
      	 	 	70,000	 	 	 	 	 	 	1.14	 	
                                                                          4/22/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          4/22/13

                                                                        
	 
      	 	 	75,000	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          Ernest
      E. East

                                                                        	 	 	30,000	 	 	 	 	 	 	3.24	 	
                                                                          1/8/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/8/12

                                                                        
	 
      	 	 	60,000	 	 	 	 	 	 	1.65	 	
                                                                          8/30/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          8/30/12

                                                                        
	 
      	 	 	60,000	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                          Eric
      Rose

                                                                        	 	 	5,000	 	 	 	 	 	 	1.14	 	
                                                                          4/22/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          4/22/13

                                                                        
	 
      	 	 	1,667	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	1,666	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          7/28/10

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	1,666	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          7/28/11

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          Victor
      Mena

                                                                        	 	 	6,667	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	6,666	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          7/28/10

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	6,666	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          7/28/11

                                                                        	 	
                                                                          7/28/19

                                                                        
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                                                                          William
      G. Jayroe

                                                                        	 	 	40,000	 	 	 	 	 	 	 	1.20	 	
                                                                          1/23/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/23/13

                                                                        
	 
      	 	 	10,000	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          Francis
      M. Ricci

                                                                        	 	 	25,000	 	 	 	 	 	 	 	1.20	 	
                                                                          1/23/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/23/13

                                                                        
	 
      	 	 	10,000	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          Wayne
      H. White

                                                                        	 	 	25,000	 	 	 	 	 	 	 	1.20	 	
                                                                          1/23/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/23/13

                                                                        
	 
      	 	 	10,000	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          William
      Sherlock

                                                                        	 	 	25,000	 	 	 	 	 	 	 	1.35	 	
                                                                          10/15/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          10/15/12

                                                                        
	 
      	 	 	5,000	 	 	 	 	 	 	 	1.20	 	
                                                                          1/23/08

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          1/23/13

                                                                        
	 
      	 	 	15,000	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          Frank
      Catania

                                                                        	 	 	25,000	 	 	 	 	 	 	 	0.75	 	
                                                                          4/16/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          4/16/14

                                                                        
	 
      	 	 	5,000	 	 	 	 	 	 	 	1.25	 	
                                                                          7/28/09

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/28/19

                                                                        
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 
      	 	 
      
	
                                                                          H.
      Thomas Winn

                                                                        	 	 	150,000	 	 	 	 	 	 	 	2.01	 	
                                                                          7/6/07

                                                                        	 	
                                                                          Vested

                                                                        	 	
                                                                          7/6/12

                                                                        
	 
      	 	 	 	 	 	 	50,000	 	 	 	2.01	 	 
      	 	
                                                                          7/6/2011

                                                                        	 	
                                                                          7/6/12

                                                                        

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.8.3

     

    JOINT
VENTURES AND PARTNERSHIPS

     

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
5.14

     

    LIENS

     

    None.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.17.1

     

    ENVIRONMENTAL
MATTERS

     

    
      	
               
      

            	
              1.

            	
              Presence
      of grease tank inside the Golden Nugget Tukwila, located at 14025
      Interurban Avenue South Tukwila, Washington 98168, previously used as a
      receptacle for disposing fry
oil.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.25

     

    LABOR
MATTERS

     

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
5.26.1

     

    PENDING
CLAIMS AGAINST ANY CREDIT PARTY

     

    RIGHT TO
USE

     

    Lawful
rights to use certain trademarks and trade names may be subject to third
parties’ rights, namely, such rights to the Silver Dollar Casino trade name and
to the following trademarks: Silver Dollar Casino, Golden Nugget Casino, Club
Hollywood, Washington Players Club and Club BC’s.

    

    PENDING OR THREATENED
CLAIMS

    

    None.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.27

     

    LIST
OF ALL REAL PROPERTY AND LEASES

     

    Real
Property owned by each Credit Party:

     

    
      	
               
      

            	
              1.

            	
              Nevada Gold &
      Casinos, Inc.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Real
      property located in Gilpin County, City of Black Hawk, Colorado,
      80422.

            

    

     

    
      	
               
      

            	
              2.

            	
              NG Washington,
      LLC

            

    

     

    
      	
               
      

            	
              (a)

            	
              Real
      property located at 3014 W. Kennewick Ave., Kennewick, WA
      99336

            

    

     

    
      	
               
      

            	
              (b)

            	
              Real
      property located at 510 S. 20th
      Ave., Pasco, WA 99301

            

    

     

    Leases of
the Credit Parties in effect on the Effective Date:

     

    
      	
               
      

            	
              1.

            	
              NG Washington II,
      LLC

            

    

     

    
      	
               

            	
              Schedule
      5.37 is incorporated herein

            

    

     

    
      	
               
      

            	
              2.

            	
              NG Washington,
      LLC

            

    

     

    
      	
               
      

            	
              (a)

            	
              Lease
      Agreement dated February 1, 2004 between Auburn Airport Plaza, LLC, as
      landlord, and Gillwing III, LLC, as tenant, assigned to NG Washington,
      LLC, as tenant, on May 12, 2009 (Administrative
  Office).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Shopping
      Center Lease Agreement dated February 14, 2001 between Chin Partnership,
      as landlord, and Gullwing III, LLC, as tenant, assigned to NG Washington,
      LLC, as tenant, on May 12, 2009 (Crazy Moose Casino Mountlake
      Terrace).

            

    

     

    
      	
               
      

            	
              (c)

            	
              Lease
      Agreement dated June 27, 2005 between TCW, LLC, as landlord, and Crazy
      Moose Casino, Inc., as tenant, assigned to NG Washington, LLC, as tenant,
      on May 12, 2009 (Parking Lot at Crazy Moose Casino
  Pasco).

            

    

     

    
      	
               
      

            	
              3.

            	
              Nevada Gold &
      Casinos, Inc.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Office
      Lease dated October 8, 2008 between RMC 2004 Portfolio I, LP et al., as
      landlord, and Nevada Gold & Casinos, Inc., as tenant (Nevada Gold
      & Casinos, Inc.’s Corporate
Office).

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
5.36

     

    LEASES
ON MORTGAGED PROPERTIES

     

    
      	
               
      

            	
              1.

            	
              192nd
      Property Lease effective June 1, 2002 for the Silver Dollar Casino SeaTac
      originally between 192nd Pacific Properties L.L.C. and Roy R. Toland and
      Audrey V. Toland, as landlord, and Big Nevada, Inc. d/b/a “The Silver
      Dollar Casino”, which lease is now between 192nd Pacific Properties L.L.C.
      and Roy R. Toland and Audrey V. Toland, as landlord, and NG Washington II,
      LLC, as tenant.

            

    

     

    
      	
               
      

            	
              2.

            	
              Lease
      Agreement dated March 8, 2004 for the Silver Dollar Casino Renton
      originally between Little Family, LLC, as landlord, and Little Nevada,
      Inc., as tenant, which lease is now between Little Family, LLC and Little
      3100, LLC, as landlord, and NG Washington II, LLC, as
    tenant.

            

    

     

    
      	
               
      

            	
              3.

            	
              Sublease
      Agreement, dated December 21, 2007, originally between Little Nevada,
      Inc., as sublessor, and Ruth Dykeman Children’s Center, as sublettee, as
      subsequently amended, which sublease is now between NG Washington II, LLC,
      as sublessor, and Ruth Dykeman Children’s Center, as
      sublettee.

            

    

     

    
      	
               
      

            	
              4.

            	
              Lease
      Agreement dated December 3, 2001 for the Silver Dollar Casino Mill Creek
      originally between Colin W. & Merlyna M. Radford and Tri-Western
      Syndicated Investment Co. dba Tri West North Creek Partnership, as
      landlord, and Timothy B. and Michael Iszley dba Golden Nugget Casino, as
      tenant, as subsequently amended (with Wallace Properties – Mill Creek,
      LLC, as successor in interest to original landlord and Silver Dollar Mill
      Creek, Inc. as successor in interest to original tenant), which lease is
      now between Wallace Properties – Mill Creek, LLC, as landlord, and NG
      Washington II, LLC, as tenant.

            

    

     

    
      	
               
      

            	
              5.

            	
              Commercial
      Premises Lease dated March 5, 2007 for the Club Hollywood Casino
      originally between Old 99 Property Group, L.L.C., as landlord, and
      Hollydrift Gaming, Inc. d/b/a Club Hollywood, as tenant, which lease is
      now between Old 99 Property Group, L.L.C., as landlord and NG Washington
      II, LLC, as tenant.

            

    

     

    
      	
               
      

            	
              6.

            	
              Commercial
      Premises Lease (Parking Lot) dated March 5, 2007 for the Club Hollywood
      Casino originally between Old 99 Property Group, L.L.C., as landlord, and
      Hollydrift Gaming, Inc. d/b/a Club Hollywood, as tenant, which lease is
      now between Old 99 Property Group, L.L.C., as landlord, and NG Washington
      II, LLC, as tenant.

            

    

     

    
      	
               
      

            	
              7.

            	
              Commercial
      Premises Lease dated December 22, 2006 for the Royal Casino originally
      between Allen and Sharon Hemmat, as landlord, and Royal Casino Holdings,
      Inc., as tenant, which lease is now between Allen and Sharon Hemmat, as
      landlord, and NG Washington II, LLC, as
tenant.

            

    

     

    
      	
               
      

            	
              8.

            	
              Golden
      Nugget Casino Lease dated November 29, 2004, originally between Bruce
      Fehling and Yong Hui Fehling, as landlord, and Golden Nugget Tukwila, Inc.
      (formerly Vormsberg Company), as tenant, which lease is now between Bruce
      Fehling and Yong Hui Fehling, as landlord, and NG Washington II, LLC, as
      tenant.

            

    

     

    
      	
               
      

            	
              9.

            	
              Office
      Lease dated October 29, 2004 between WTCTPI, LLC, as landlord, and Gaming
      Consultants, Inc., as tenant, which lease is now between ECI TWO WTC LLC,
      as landlord, and NG Washington II, LLC, as
  tenant.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
6.11

     

    INDEBTEDNESS

     

    None.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
14.1

     

    NOTICE
INFORMATION

     

    Fortress
Credit Corp.

    1345
Avenue of the Americas, 46th
FL

    New York,
NY  10105

    Attn: 
Constantine M. Dakolias

    Fax:
(646) 224-8716

    

    with a
copy to:

    Sidley
Austin LLP

    555 W.
Fifth Street, Suite 4000

    Los
Angeles, CA 90013

    (213)
896-6600 fax

    Attn: 
Edward C. Prokop

    

    NG
Washington II Holdings, LLC

    50 Briar
Hollow Lane, Suite 500W

    Houston,
TX 77027

    (713)
621-2245 phone

    (713)
621-2245 fax

    Attn.: Robert B.
Sturges, Manager

    

    with a
copy to:

    Nevada
Gold & Casinos, Inc.

    50 Briar
Hollow Lane, Suite 500W

    Houston,
TX 77027

    (713)
621-2245 phone

    (713)
621-2245 fax

    Attn.: Robert B.
Sturges, CEO

    

    and

    

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2009 phone

    (973)
530-2209 fax

    Attn.:
David M. Hyman, Esq.

    

    NG
Washington II, LLC

    711
Powell Ave., SW

    Renton,
WA 98057

    (425)
264-1050 phone

    (425)
264-1060 fax

    Attn.:
Victor Mena, Chief Operating Officer

    

    with a
copy to:

    Nevada
Gold & Casinos, Inc.

    50 Briar
Hollow Lane, Suite 500W

    Houston,
TX 77027

    (713)
621-2245 phone

    (713)
621-2245 fax

    Attn.: Robert B.
Sturges, CEO

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    and

    

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2009 phone

    (973)
530-2209 fax

    Attn.:
David M. Hyman, Esq.

    

    NG
Washington, LLC

    402
16th
Street NE, Suite 106

    Auburn,
WA 98002

    (253)
288-9700 phone

    (253)
288-9710 fax

    Attn.:
Victor Mena, Chief Operating Officer

    

    with a
copy to:

    Nevada
Gold & Casinos, Inc.

    50 Briar
Hollow Lane, Suite 500W

    Houston,
TX 77027

    (713)
621-2245 phone

    (713)
621-2245 fax

    Attn.: Robert B.
Sturges, CEO

    

    and

    

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2009 phone

    (973)
530-2209 fax

    Attn.:
David M. Hyman, Esq.

    

    Nevada
Gold & Casinos, Inc.

    50 Briar
Hollow Lane, Suite 500W

    Houston,
TX 77027

    (713)
621-2245 phone

    (713)
621-2245 fax

    Attn.: Robert B.
Sturges, CEO

    

    and

    

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2009 phone

    (973)
530-2209 fax

    Attn.:
David M. Hyman, Esq.MEMBERSHIP
INTEREST PLEDGE AGREEMENT

     

    THIS
MEMBERSHIP INTEREST PLEDGE AGREEMENT (as amended, restated, supplemented and
otherwise modified and in effect from time to time, this “Pledge Agreement”) is
entered into as of July 23, 2010 among NEVADA GOLD & CASINOS,
INC., a Nevada corporation (“Nevada Gold”) in its
capacity as grantor (“Grantor”) and FORTRESS CREDIT CORP., in its
capacity as agent (“Agent”) for the
Lenders party to the Credit Agreement referred to below.

     

    RECITALS

     

    A.           NG
Washington II Holdings, LLC, a Delaware limited liability company, in its
capacity as borrower (“Borrower”), Agent,
and Lenders are entering into a Credit Agreement dated as of July 23, 2010 (as
amended, amended and restated, supplemented and otherwise modified and in effect
from time to time, the “Credit Agreement”)
pursuant to which Lenders shall extend credit to Borrower and Borrower shall
issue promissory notes evidencing such credit to the Lenders.

     

    B.           Grantor
will receive direct and indirect benefits as a result of the extension of credit
to Borrower under the Credit Agreement.

     

    C.           Grantor
is the direct parent of Borrower.

     

    D.           As
a condition precedent to the initial extension of credit under the Credit
Agreement and the effectiveness of the Credit Agreement, Agent and Lenders have
required that that Grantor enter into this Pledge Agreement.

     

    E.           In
consideration of the foregoing, and in order to induce Lenders and Agent to
enter into the Credit Agreement, Grantor is willing to pledge to Agent, for the
benefit of Agent and Lenders, its membership interests in Borrower, on the terms
and conditions set forth herein.

     

    NOW,
THEREFORE, in consideration of the promises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Grantor and Agent, on behalf of Lenders, hereby agree as follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1           Terms Defined in Credit
Agreement.  All capitalized terms used herein and not otherwise
defined shall have the meanings assigned to such terms in the Credit
Agreement.

     

    1.2           Terms Defined in
UCC.  Terms defined in the UCC which are not otherwise defined
in this Pledge Agreement are used herein as defined in the UCC.

     

    1.3           Definitions of Certain Terms
Used Herein.  As used in this Pledge Agreement, in addition to
the terms defined in the Preamble and Recitals above, the following terms shall
have the following meanings:

     

    “Article” means a
numbered article of this Pledge Agreement, unless another document is
specifically referenced.

     

    “Collateral” shall
have the meaning set forth in Article II.

     

    “Control” shall have
the meaning set forth in Article 8 or, if applicable, in Section 9-104,
9-105, 9-106 or 9-107 of Article 9 of the UCC.

     

    “Exhibit” refers to a
specific exhibit to this Pledge Agreement, unless another document is
specifically referenced.

     

    “Investment Property”
shall have the meaning set forth in Article 9 of the UCC.

     

    “Section” means a
numbered section of this Pledge Agreement, unless another document is
specifically referenced.

     

    “Security” has the
meaning set forth in Article 8 of the UCC.

     

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    “Stock Rights” means
all dividends, instruments or other distributions and any other right or
property which Grantor shall receive or shall become entitled to receive for any
reason whatsoever with respect to, in substitution for or in exchange for any
Capital Stock constituting Collateral, any right to receive Capital Stock and
any right to receive earnings, in which Grantor now has or hereafter acquires
any right, issued by an issuer of such Capital Stock.

     

    The
foregoing definitions shall be equally applicable to both the singular and
plural forms of the defined terms.

     

    ARTICLE
II

    GRANT
OF SECURITY INTEREST

     

    Grantor
hereby pledges, assigns and grants to Agent, on behalf of and for the ratable
benefit of Agent and Lenders, a security interest in all of its right, title and
interest in, to and under all Investment Property issued by or related to
Borrower, whether now owned or hereafter acquired, and all accessions to,
substitutions for and replacements, proceeds (including any Stock Rights) and
products of such Investment Property, together with all books and records
related thereto (all of which will be collectively referred to as the “Collateral”), to
secure the prompt and complete payment and performance of the
Obligations.

     

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

     

    Grantor
represents and warrants to Agent and Lenders that:

     

    3.1           Title, Perfection and
Priority.  Grantor has good and valid rights in or the power to
transfer the Collateral and title to the Collateral with respect to which it has
purported to grant a security interest hereunder, free and clear of all Liens
except for Liens permitted under Section 4.1(e), and has full power and
authority to grant to Agent the security interest in such Collateral pursuant
hereto.  Neither the execution or delivery of this Pledge Agreement
nor the performance by Grantor of any of its obligations hereunder, does or will
violate, constitute a default under, conflict with, or entitle any third party
to exercise any rights with respect to the Collateral by virtue of, any other
agreement, undertaking, security document, court order or decree, judgment,
arbitration award or decree, statute , rule or regulation of any Governmental
Authority, to which Grantor is a party, or by which or any of the Collateral is
bound.  When financing statements have been filed in the appropriate
offices against Grantor in the locations listed on Exhibit C, and
the Agent has received all Securities certificates with respect to certificated
Securities included in the Collateral, Agent will have a fully perfected first
priority security interest in that Collateral in which a security interest may
be perfected by filing, or possession, subject only to Liens permitted under
Section 4.1(e).

     

    3.2           Type and Jurisdiction of
Organization, Organizational and Identification Numbers.  The
type of entity of Grantor, its state of organization, the organizational number
issued to it by its state of organization and its federal employer
identification number (if any) are set forth on Exhibit A.

     

    3.3           Principal
Location.  Grantor’s mailing address and the location of its
place of business (if it has only one) or its chief executive office (if it has
more than one place of business), are disclosed in Exhibit A;
Grantor has no other places of business except those set forth in Exhibit A.

     

    3.4           Exact
Names.  Grantor’s name in which it has executed this Pledge
Agreement is the exact name as it appears in Grantor’s organizational documents,
as amended, as filed in Grantor’s jurisdiction of
organization.  Grantor has not, during the past five years, been known
by or used any other corporate or fictitious name, or been a party to any merger
or consolidation.

     

    3.5           Filing
Requirements.  None of the Collateral is of a type for which
security interests or liens may be perfected by filing under any federal
statute.

     

    3.6           No Financing Statements,
Security Agreements.  No financing statement or security
agreement describing all or any portion of the Collateral which has not lapsed
or been terminated naming Grantor as debtor has been filed or is of record in
any jurisdiction except (a) for financing statements or security agreements
naming Agent on behalf of Agent and Lenders as the secured party and (b) as
permitted by Section
4.1(e).

     

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    3.7          Collateral.

     

    (a)           Exhibit B sets
forth a complete and accurate list of all of the Collateral.  Grantor
is the direct, sole beneficial owner and sole holder of record of the Collateral
listed on Exhibit B as
being owned by it, free and clear of any Liens, except for the security interest
granted to Agent for the benefit of Agent and Lenders hereunder. Grantor further
represents and warrants that (i) all Collateral constituting Capital Stock
has been (to the extent such concepts are relevant with respect to such
Collateral) duly authorized, validly issued, is fully paid and non assessable,
and (ii) with respect to any certificates delivered to Agent representing
any Capital Stock, such certificates are Securities as defined in Article 8
of the UCC as a result of actions by the issuer or otherwise.

     

    (b)           In
addition, (i) none of the Collateral has been issued or transferred in
violation of the securities registration, securities disclosure or similar laws
of any jurisdiction to which such issuance or transfer may be subject,
(ii) there are existing no options, warrants, calls or commitments of any
character whatsoever relating to the Collateral or which obligate the issuer of
any Capital Stock included in the Collateral to issue additional Capital Stock,
and (iii) no consent, approval, authorization, or other action by, and no
giving of notice, filing with, any governmental authority or any other Person is
required for the pledge by Grantor of the Collateral pursuant to this Pledge
Agreement or for the execution, delivery and performance of this Pledge
Agreement by Grantor, or for the exercise by Agent of the voting or other rights
provided for in this Pledge Agreement or for the remedies in respect of the
Collateral pursuant to this Pledge Agreement, except as may be required in
connection with such disposition by laws affecting the offering and sale of
securities generally.

     

    (c)           Grantor
owns 100% of the issued and outstanding Capital Stock of Borrower, and the sale,
transfer or other disposition of such Capital Stock is not restricted or limited
except by virtue of the limitations imposed by applicable securities
laws.

     

    ARTICLE
IV

    COVENANTS

     

    From the
date of this Pledge Agreement, and thereafter until this Pledge Agreement is
terminated, agrees that:

     

    4.1         General.

     

    (a)           Collateral
Records.  Grantor will maintain complete and accurate books and
records with respect to the Collateral, and furnish to Agent, with sufficient
copies for each of Lenders, such reports relating to the Collateral as Agent
shall from time to time request.

     

    (b)           Authorization to File
Financing Statements; Ratification.  Grantor hereby authorizes
Agent to file, and if requested will deliver to Agent, all financing statements
and other documents and take such other actions as may from time to time be
requested by Agent in order to maintain a first perfected security interest in
and, if applicable, Control of, the Collateral.  Any financing
statement filed by Agent may be filed in any filing office in any UCC
jurisdiction and may (i) indicate the Collateral by any appropriate description
which reasonably approximates the description contained in this Pledge
Agreement, and (ii) contain any other information required by part 5
of Article 9 of the UCC for the sufficiency or filing office acceptance of
any financing statement or amendment, including whether Grantor is an
organization, the type of organization and any organization identification
number issued to Grantor.  Grantor also agrees to furnish any such
information to Agent promptly upon request.  Grantor also ratifies its
authorization for Agent to have filed in any UCC jurisdiction any initial
financing statements or amendments thereto if filed prior to the date
hereof.

     

    (c)           Further
Assurances.  Grantor will furnish to Agent, as often as Agent
requests, statements and schedules further identifying and describing the
Collateral and such other reports and information in connection with the
Collateral as Agent may reasonably request, all in such detail as Agent may
specify.  Grantor also agrees to take any and all reasonable actions
necessary to defend title to the Collateral against all persons and to defend
the security interest of Agent in the Collateral and the priority thereof
against any Lien not expressly permitted hereunder.

     

    (d)           Disposition of
Collateral.  Grantor shall not sell or otherwise dispose of the
Collateral.

     

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    (e)           Liens.  Grantor
shall not create, incur, or suffer to exist any Lien on the Collateral except
the security interests created by this Pledge Agreement.

     

    (f)           Other Financing
Statements.  Grantor will not authorize the filing of any
financing statement naming it as debtor covering all or any portion of the
Collateral.  Grantor acknowledges that it is not authorized to file
any financing statement or amendment or termination statement with respect to
any financing statement filed in connection with the Collateral which does not
expressly exclude the Collateral from the description of the collateral secured
in such financing statement, without the prior written consent of Agent (not to
be unreasonably withheld), subject to Grantor’s rights under
Section 9-509(d)(2) of the UCC.

     

    (g)           Compliance with
Terms.  Grantor will perform and comply with all obligations in
respect of the Collateral and all agreements to which it is a party or by which
it is bound relating to the Collateral.

     

    4.2         Delivery of Investment
Property.  Grantor will (a) deliver to Agent immediately
upon execution of this Pledge Agreement the originals of, and duly executed
blank assignments in the form set forth in Exhibit E in respect
of, all Investment Property constituting Collateral, (b) hold in trust for
Agent upon receipt and immediately thereafter deliver to Agent any Securities
constituting Collateral, (c) upon Agent’s request, deliver to Agent (and
thereafter hold in trust for Agent upon receipt and immediately deliver to
Agent) any Document evidencing or constituting Collateral and (d) upon
Agent’s request, deliver to Agent a duly executed amendment to this Pledge
Agreement, in the form of Exhibit D hereto
(the “Amendment”), pursuant
to which Grantor will confirm the pledge of such additional Collateral hereunder
and, immediately upon execution of such Amendment, deliver the originals of, and
duly executed blank assignments in the form set forth in Exhibit E in respect
of, all Investment Property constituting such additional
Collateral.  Grantor hereby authorizes Agent to attach each Amendment
to this Pledge Agreement and agrees that all additional Collateral set forth in
such Amendments shall be considered to be part of the Collateral.

     

    4.3         Collateral.

     

    (a)           Changes in Capital Structure
of Issuers.  Grantor will not (i) permit or suffer any
issuer of Capital Stock constituting Collateral to dissolve, merge, liquidate,
retire any of its Capital Stock or other Investment Property evidencing
ownership, reduce its capital, sell or encumber all or substantially all of its
assets or merge or consolidate with any other entity, or vote any Collateral in
favor of any of the foregoing.

     

    (b)           Issuance of Additional
Securities. Grantor will not permit or cause the issuer of Capital Stock
constituting Collateral to issue additional Capital Stock, any right to receive
the same or any right to receive earnings.

     

    (c)           Registration of
Collateral.  Grantor will permit any registrable Collateral to
be registered in the name of Agent or its nominee at any time at the option of
the Required Lenders.

     

    (d)           Treatment as
“Security”.  With respect to any Capital Stock which is
included within the Collateral that shall at any time constitute a Security or
the issuer shall take any action to have such interests treated as a Security,
all certificates or other documents constituting such Security shall be
delivered to Agent by Grantor and such Security shall be properly defined as
such under Article 8 of the UCC of the applicable jurisdiction, whether as
a result of actions by the issuer thereof or otherwise.

     

    (e)           Exercise of Rights in
Collateral.

     

    (i)           Without
in any way limiting the foregoing and subject to clause (ii)
below, Grantor shall have the right to exercise all voting rights or other
rights relating to the Collateral for all purposes not inconsistent with this
Pledge Agreement, the Credit Agreement or any other Loan Document; provided however, that no vote or other right
shall be exercised or action taken which would have the effect of impairing the
rights of Agent in respect of the Collateral.

     

    (ii)           Grantor
will permit Agent or its nominee at any time after the occurrence of a Default,
without notice, and to the exclusion of the Grantor once written notice of a
Default has been given to Grantor by Agent, to exercise all voting rights or
other rights relating to Collateral, including, without limitation, exchange,
subscription or any other rights, privileges, or options pertaining to any
Capital Stock or Investment Property constituting Collateral as if Agent was the
absolute owner thereof.

     

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    (iii)           Grantor
shall be entitled to collect and receive for its own use all cash dividends and
other distributions paid in respect of the Collateral to the extent not in
violation of the Credit Agreement other than any of the
following distributions and payments (collectively referred to as the “Excluded
Payments”):  (A) dividends and other distributions paid or
payable other than in cash in respect of any Collateral, and instruments and
other property received, receivable or otherwise distributed in respect of, or
in exchange for, any Collateral; (B) dividends and other distributions paid
or payable in cash in respect of any Collateral during the continuance of a
Default or at any time in connection with a partial or total liquidation or
dissolution or in connection with a reduction of capital, capital surplus or
paid-in capital of an issuer; and (C) cash paid, payable or otherwise
distributed, in respect of principal of, or in redemption of, or in exchange
for, any Collateral; provided
however, that
until actually paid, all rights to such distributions shall remain subject to
the Lien created by this Pledge Agreement; and

     

    (iv)           All
Excluded Payments and all other distributions in respect of any of the
Collateral, whenever paid or made, shall be delivered to Agent to hold as
Collateral and shall, if received by Grantor, be received in trust for the
benefit of Agent, be segregated from the other property or funds of Grantor, and
be forthwith delivered to Agent as Collateral in the same form as so received
(with any necessary endorsement).

     

    4.4           No
Interference.  Grantor agrees that it will not interfere with
any right, power and remedy of Agent provided for in this Pledge Agreement or
now or hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by Agent of any one or more of such
rights, powers or remedies.

     

    4.5           Change of Name or Location;
Change of Fiscal Year.  Grantor shall not, without giving Agent
not less than thirty (30) days’ prior written notice thereof and after having
executed and delivered to Agent such further instruments and documents in
connection therewith as may be requested by Agent pursuant to Section
4.1(c), change its name as it appears in official filings in the
state of its incorporation or organization, (b) change its chief executive
office, principal place of business, mailing address, corporate offices or
warehouses or locations, or the location of its records concerning the
Collateral as set forth in this Pledge Agreement, (c) change the type of
entity that it is, (d) change its organization identification number, if
any, issued by its state of incorporation or other organization, or
(e) change its state of incorporation or organization.

     

    4.6         Acknowledgment by
Issuer.  Grantor shall cause Borrower to execute and deliver an
acknowledgement in the form and substance attached as Exhibit F
hereto.

     

    ARTICLE
V

    REMEDIES

     

    5.1         Remedies.

     

    (a)           Upon
the occurrence of a Default, Agent may, with the concurrence or at the direction
of the Required Lenders, exercise any or all of the following rights and
remedies:

     

    (i)           those
rights and remedies provided in this Pledge Agreement, the Credit Agreement, or
any other Loan Document; provided that, this Section 5.1(a)
shall not be understood to limit any rights or remedies available to Agent and
Lenders prior to a Default;

     

    (ii)           those
rights and remedies available to a secured party under the UCC (whether or not
the UCC applies to the affected Collateral) or under any other applicable law
(including, without limitation, any law governing the exercise of a bank’s right
of setoff or bankers’ lien) when a debtor is in default under a security
agreement;

     

    (iii)           without
notice (except as specifically provided in Section 7.1 or
elsewhere herein) sell or otherwise dispose of the Collateral or any part
thereof in one or more parcels at public or private sale or sales (which sales
may be adjourned or continued from time to time with or without notice and may
take place at Grantor’s premises or elsewhere), for cash, on credit or for
future delivery without assumption of any credit risk, and upon such other terms
as Agent may deem commercially reasonable; and

     

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    (iv)           concurrently
with written notice to the Grantor, transfer and register in its name or in the
name of its nominee the whole or any part of the Collateral, to exchange
certificates or instruments representing or evidencing Collateral for
certificates or instruments of smaller or larger denominations, to exercise the
voting and all other rights as a holder with respect thereto, to collect and
receive all cash dividends and other distributions made thereon and to otherwise
act with respect to the Collateral as though Agent was the outright owner
thereof.

     

    (b)           Agent,
on behalf of Lenders, may comply with any applicable state or federal law
requirements in connection with a disposition of the Collateral and compliance
will not be considered to adversely affect the commercial reasonableness of any
sale of the Collateral.

     

    (c)           Agent
shall have the right upon any such public sale or sales and, to the extent
permitted by law, upon any such private sale or sales, to purchase for the
benefit of Agent and Lenders, the whole or any part of the Collateral so sold,
free of any right of equity redemption, which equity redemption Grantor hereby
expressly releases.

     

    (d)           Until
Agent is able to effect a sale or other disposition of Collateral, Agent shall
have the right to hold or use Collateral, or any part thereof, to the extent
that it deems appropriate for the purpose of preserving Collateral or its value
or for any other purpose deemed appropriate by Agent.  Agent may, if
it so elects, seek the appointment of a receiver or keeper to take possession of
Collateral and to enforce any of Agent’s remedies (for the benefit of Agent and
Lenders), with respect to such appointment without prior notice or hearing as to
such appointment.

     

    (e)           Notwithstanding
the foregoing, neither Agent nor Lenders shall be required to (i) make any
demand upon, or pursue or exhaust any of their rights or remedies against,
Grantor, any other obligor, guarantor, pledgor or any other Person with respect
to the payment of the Obligations or to pursue or exhaust any of their rights or
remedies with respect to any Collateral therefor or any direct or indirect
guarantee thereof, (ii) marshal the Collateral or any guarantee of the
Obligations or to resort to the Collateral or any such guarantee in any
particular order, or (iii) effect a public sale of any
Collateral.

     

    (f)           Grantor
recognizes that Agent may be unable to effect a public sale of any or all the
Collateral and may be compelled to resort to one or more private sales thereof
in accordance with clause (a)
above.  Grantor also acknowledges that any private sale may result in
prices and other terms less favorable to the seller than if such sale were a
public sale and, notwithstanding such circumstances, agrees that any such
private sale shall not be deemed to have been made in a commercially
unreasonable manner solely by virtue of such sale being
private.  Agent shall be under no obligation to delay a sale of any of
the Collateral for the period of time necessary to permit the Grantor or the
issuer of the Collateral to register such securities for public sale under the
Securities Act of 1933, as amended, or under applicable state securities laws,
even if Grantor and the issuer would agree to do so.

     

    5.2         Grantor’s Obligations Upon
Default.  Upon the request of Agent after the occurrence of a
Default, Grantor will:

     

    (a)           assemble
and make available to Agent all books and records relating to the Collateral at
any place or places specified by Agent, whether at Grantor’s premises or
elsewhere;

     

    (b)           take,
or cause an issuer of Collateral to take, any and all actions necessary to
register or qualify the Collateral to enable Agent to consummate a “public
disposition” (within the meaning of Article 9 of the UCC) or other disposition
of the Collateral, it being recognized that no obligation to register the
Collateral (or any portion thereof) under the Securities Act of 1933 is hereby
being undertaken.

     

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    ARTICLE
VI

    ATTORNEY
IN FACT; PROXY

     

    6.1         Authorization for Secured
Party to Take Certain Action.

     

    (a)           Grantor
irrevocably authorizes and appoints Agent as its attorney in fact (i) to
execute on behalf of Grantor as debtor and to file financing statements
necessary or desirable in Agent’s sole discretion to perfect and to maintain the
perfection and priority of Agent’s security interest in the Collateral,
(ii) if a Default has occurred and is continuing, to endorse and collect
any cash proceeds of the Collateral, (iii) to file a carbon, photographic
or other reproduction of this Pledge Agreement or any financing statement with
respect to the Collateral as a financing statement and to file any other
financing statement or amendment of a financing statement (which does not add
new collateral or add a debtor) in such offices as Agent in its sole discretion
deems necessary or desirable to perfect and to maintain the perfection and
priority of Agent’s security interest in the Collateral, (iv) to contact
and enter into one or more agreements with the issuers of uncertificated
securities which are Collateral or with securities intermediaries holding
Collateral as may be necessary or advisable to give Agent Control over such
Collateral, (v) to apply the proceeds of any Collateral received by Agent
to the Obligations, (vi) upon written notice to the applicable Grantor, to
discharge past due taxes, assessments, charges, fees or Liens on the Collateral
(except for such Liens as are specifically permitted hereunder), (vii) if a
Default has occurred and is continuing, to change the address for delivery of
mail addressed to Grantor to such address as Agent may designate and to receive,
open and dispose of all mail addressed to Grantor, and (viii) to do all
other acts and things necessary to carry out this Pledge Agreement (provided
that, if addressed in this Pledge Agreement, in accordance therewith); and
Grantor agrees to reimburse Agent on demand for any payment made or any expense
incurred by Agent in connection with any of the foregoing; provided that, this
authorization shall not relieve Grantor of any of its obligations under this
Pledge Agreement or under the Credit Agreement. Grantor agrees that such
authorization includes a ratification and authorization with respect to any
initial financing statements filed prior to the date hereof.

     

    (b)           All
acts of said attorney or designee are hereby ratified and
approved.  The powers conferred on Agent, for the benefit of Agent and
Lenders, under this Section 6.1 are
solely to protect Agent’s interests in the Collateral and shall not impose any
duty upon Agent or any Lender to exercise any such powers.

     

    6.2         Proxy.  GRANTOR
HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE AGENT AS THE PROXY AND ATTORNEY
IN FACT (AS SET FORTH IN SECTION 6.1
ABOVE) OF GRANTOR WITH RESPECT TO THE COLLATERAL, INCLUDING THE RIGHT TO VOTE
SUCH COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO.  IN
ADDITION TO THE RIGHT TO VOTE ANY SUCH COLLATERAL, THE APPOINTMENT OF THE AGENT
AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER
RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH COLLATERAL
WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF
SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH
MEETINGS).  THE APPOINTMENT OF THE AGENT AS PROXY AND ATTORNEY IN FACT
SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION
(INCLUDING ANY TRANSFER OF ANY SUCH COLLATERAL ON THE RECORD BOOKS OF THE ISSUER
THEREOF) BY ANY PERSON (INCLUDING THE ISSUER OF SUCH COLLATERAL OR ANY OFFICER
OR AGENT THEREOF), UPON THE OCCURRENCE OF A DEFAULT OR FROM THE DATE OF THIS
PLEDGE AGREEMENT, AS SPECIFIED IN SECTION 6.1
ABOVE.

     

    6.3         Nature of Appointment;
Limitation of Duty.  THE APPOINTMENT OF THE AGENT AS PROXY AND
ATTORNEY-IN-FACT IN THIS ARTICLE VI IS
COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS
PLEDGE AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 7.13.  NOTWITHSTANDING
ANYTHING CONTAINED HEREIN, NEITHER THE AGENT, NOR ANY LENDER, NOR ANY OF THEIR
RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES
SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR
OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO
SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE
SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED
BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE
LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES.

     

    ARTICLE
VII

    GENERAL
PROVISIONS

     

    7.1          Waivers.  Grantor
hereby waives notice of the time and place of any public sale or the time after
which any private sale or other disposition of all or any part of the Collateral
may be made.  To the extent such notice may not be waived under
applicable law, any notice made shall be deemed reasonable if sent to Grantor,
addressed as set forth in Article VIII, at
least ten days prior to (i) the date of any such public sale or
(ii) the time after which any such private sale or other disposition may be
made.  To the maximum extent permitted by applicable law, Grantor
waives all claims, damages, and demands against Agent or any Lender arising out
of the repossession, retention or sale of the Collateral, except such as arise
solely out of the gross negligence or willful misconduct of Agent or such Lender
as finally determined by a court of competent jurisdiction.  To the
extent it may lawfully do so, Grantor absolutely and irrevocably waives and
relinquishes the benefit and advantage of, and covenants not to assert against
Agent or any Lender, any valuation, stay, appraisal, extension, moratorium,
redemption or similar laws and any and all rights or defenses it may have as a
surety now or hereafter existing which, but for this provision, might be
applicable to the sale of any Collateral made under the judgment, order or
decree of any court, or privately under the power of sale conferred by this
Pledge Agreement, or otherwise.  Except as otherwise specifically
provided herein, Grantor hereby waives presentment, demand, protest or any
notice (to the maximum extent permitted by applicable law) of any kind in
connection with this Pledge Agreement or any Collateral.

     

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    7.2           Limitation on Agent’s and
Lenders’ Duty with Respect to the Collateral.  Agent and each
Lender shall use reasonable care with respect to the Collateral in its
possession or under its control.  Neither Agent nor any Lender shall
have any other duty as to any Collateral in its possession or control or in the
possession or control of any agent or nominee of Agent or such Lender, or any
income thereon or as to the preservation of rights against prior parties or any
other rights pertaining thereto.  To the extent that applicable law
imposes duties on Agent to exercise remedies in a commercially reasonable
manner, Grantor acknowledges and agrees that it is commercially reasonable for
Agent (i) to incur expenses deemed significant by Agent to prepare Collateral
for disposition, (ii) to advertise dispositions of Collateral through
publications or media of general circulation, whether or not the Collateral is
of a specialized nature, (iii) to contact other Persons, whether or not in
the same business as Grantor, for expressions of interest in acquiring all or
any portion of such Collateral, (iv) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the
Collateral is of a specialized nature, (v) to dispose of Collateral by
utilizing internet sites that provide for the auction of assets of the types
included in the Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (vi) to purchase insurance or
credit enhancements to insure Agent against risks of loss, or disposition of
Collateral or to provide to Agent a guaranteed return from the disposition of
Collateral, or (vii) to the extent deemed appropriate by Agent, to obtain
the services of other brokers, investment bankers, consultants and other
professionals to assist Agent in the disposition of any of the
Collateral.  Grantor acknowledges that the purpose of this Section 7.2 is
to provide non-exhaustive indications of what actions or omissions by Agent
would be commercially reasonable in Agent’s exercise of remedies against the
Collateral and that other actions or omissions by Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 7.2.  Without
limitation upon the foregoing, nothing contained in this Section 7.2
shall be construed to grant any rights to Grantor or to impose any duties on
Agent that would not have been granted or imposed by this Pledge Agreement or by
applicable law in the absence of this Section 7.2.

     

    7.3           Secured Party Performance of
Debtor Obligations.  Without having any obligation to do so,
Agent may perform or pay any obligation which Grantor has agreed to perform or
pay in this Pledge Agreement and Grantor shall reimburse Agent for any amounts
paid by Agent pursuant to this Section 7.3.  Grantor’s
obligation to reimburse Agent pursuant to the preceding sentence shall be an
Obligation payable on demand.

     

    7.4           Specific Performance of
Certain Covenants.  Grantor acknowledges and agrees that a
breach of any of the covenants contained in Sections 4.1(d),
4.1(e), 4.2, 4.3 and 7.6, will cause
irreparable injury to Agent and Lenders, that Agent and Lenders have no adequate
remedy at law in respect of such breaches and therefore agrees, without limiting
the right of Agent or Lenders to seek and obtain specific performance of other
obligations of Grantor contained in this Pledge Agreement, that the covenants of
Grantor contained in the Sections referred to in this Section 7.4
shall be specifically enforceable against Grantor.

     

    7.5           Dispositions Not
Authorized.  No Grantor is authorized to sell or otherwise
dispose of the Collateral and notwithstanding any course of dealing between
Grantor and Agent or other conduct of Agent, no authorization to sell or
otherwise dispose of the Collateral shall be binding upon Agent or Lenders
unless such authorization is in writing signed by Agent with the consent or at
the direction of the Required Lenders.

     

    7.6           No Waiver; Amendments;
Cumulative Remedies.  No delay or omission of Agent or any
Lender to exercise any right or remedy granted under this Pledge Agreement shall
impair such right or remedy or be construed to be a waiver of any Unmatured
Default or Default or an acquiescence therein, and any single or partial
exercise of any such right or remedy shall not preclude any other or further
exercise thereof or the exercise of any other right or remedy.  No
waiver, amendment or other variation of the terms, conditions or provisions of
this Pledge Agreement whatsoever shall be valid unless in writing signed by
Agent with the concurrence or at the direction of Lenders required under Section
9.2 of the Credit Agreement and then only to the extent in such writing
specifically set forth.  All rights and remedies contained in this
Pledge Agreement or by law afforded shall be cumulative and all shall be
available to Agent and Lenders until the Obligations have been paid in
full.

     

    7.7           Limitation by Law;
Severability of Provisions.  All rights, remedies and powers
provided in this Pledge Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law, and all the
provisions of this Pledge Agreement are intended to be subject to all applicable
mandatory provisions of law that may be controlling and to be limited to the
extent necessary so that they shall not render this Pledge Agreement invalid,
unenforceable or not entitled to be recorded or registered, in whole or in
part.  Any provision in this Pledge Agreement that is held to be
inoperative, unenforceable, or invalid in any jurisdiction shall, as to that
jurisdiction, be inoperative, unenforceable, or invalid without affecting the
remaining provisions in that jurisdiction or the operation, enforceability, or
validity of that provision in any other jurisdiction, and to this end the
provisions of this Pledge Agreement are declared to be severable.

     

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    7.8           Reinstatement.  This
Pledge Agreement shall remain in full force and effect and continue to be
effective should any petition be filed by or against Grantor for liquidation or
reorganization, should Grantor become insolvent or make an assignment for the
benefit of any creditor or creditors or should a receiver or trustee be
appointed for all or any significant part of Grantor’s assets, and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance
had not been made.  In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Obligations shall be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

     

    7.9           Benefit of
Agreement.  The terms and provisions of this Pledge Agreement
shall be binding upon and inure to the benefit of Grantor, Agent and Lenders and
their respective successors and assigns (including all persons who become bound
as a debtor to this Pledge Agreement), except that Grantor shall not have the
right to assign its rights or delegate its obligations under this Pledge
Agreement or any interest herein, without the prior written consent of
Agent.  No sales of participations, assignments, transfers, or other
dispositions of any agreement governing the Obligations or any portion thereof
or interest therein shall in any manner impair the Lien granted to Agent, for
the benefit of Agent and Lenders, hereunder.

     

    7.10           Survival of
Representations.  All representations and warranties of the
Grantors contained in this Pledge Agreement shall survive the execution and
delivery of this Pledge Agreement.

     

    7.11           Taxes and
Expenses.  Any taxes (including income taxes) payable or ruled
payable by Federal or State authority in respect of this Pledge Agreement shall
be paid by Grantor, together with interest and penalties, if
any.  Grantor shall directly pay the reasonable fees, expenses and
disbursements of Agent’s counsel and shall reimburse Agent for any and all out
of pocket expenses and internal charges (including reasonable attorneys’,
auditors’ and accountants’ fees and reasonable time charges of attorneys,
paralegals, auditors and accountants who may be employees of Agent) paid or
incurred by Agent in connection with the preparation, execution, delivery,
administration, collection and enforcement of this Pledge Agreement and in the
audit, analysis, administration, collection, preservation or sale of the
Collateral (including the reasonable expenses and charges associated with any
periodic or special audit of the Collateral).  Any and all costs and
expenses incurred by Grantor in the performance of actions required pursuant to
the terms hereof shall be borne solely by Grantor.

     

    7.12           Headings.  The
title of and section headings in this Pledge Agreement are for convenience of
reference only, and shall not govern the interpretation of any of the terms and
provisions of this Pledge Agreement.

     

    7.13           Termination.  This
Pledge Agreement shall continue in effect (notwithstanding the fact that from
time to time there may be no Obligations outstanding) until (i) the Credit
Agreement has terminated pursuant to its express terms and (ii) all of the
Obligations have been Paid In Full and no commitments of Agent or Lenders which
would give rise to any Obligations are outstanding.

     

    7.14           Entire
Agreement.  This Pledge Agreement embodies the entire agreement
and understanding between Grantor and Agent relating to the Collateral and
supersedes all prior agreements and understandings between Grantor and Agent
relating to the Collateral.

     

    7.15           CHOICE OF
LAW.  THIS
PLEDGE AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK.

     

    7.16           CONSENT
TO JURISDICTION.  GRANTOR HEREBY IRREVOCABLY SUBMITS TO
THE NON EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT AND GRANTOR HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION
IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT
FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT OR ANY
LENDER TO BRING PROCEEDINGS AGAINST GRANTOR IN THE COURTS OF ANY OTHER
JURISDICTION.  ANY JUDICIAL PROCEEDING BY GRANTOR AGAINST THE AGENT OR
ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH
THIS PLEDGE AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A
COURT IN NEW YORK, NEW YORK.

     

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    7.17          WAIVER OF
JURY TRIAL.  GRANTOR, THE AGENT AND EACH LENDER
HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR
INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY
WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS PLEDGE AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

     

    7.18         Indemnity.  Grantor
hereby agrees to indemnify Agent and Lenders, and their respective successors,
assigns, agents, investment advisors, clients, managed accounts and employees,
from and against any and all liabilities, damages, penalties, suits, costs, and
expenses of any kind and nature (including, without limitation, all expenses of
litigation or preparation therefor whether or not Agent or any Lender is a party
thereto) imposed on, incurred by or asserted against Agent or Lenders, or their
respective successors, assigns, agents and employees, in any way relating to or
arising out of this Pledge Agreement, or the purchase, ownership, delivery,
possession, sale or other disposition of any Collateral. The foregoing to the
contrary notwithstanding, Grantor shall not have any obligation to any
indemnified party under this Section 7.18 with
respect to any indemnified amount that a court of competent jurisdiction finally
determines in a non-appealable decision to have resulted from the gross
negligence or willful misconduct of such indemnified party.

     

    7.19         Counterparts.  This
Pledge Agreement may be executed in any number of counterparts and by a
different party on separate counterparts, each of which, when executed and
delivered, will be deemed an original, and all of which, when taken together,
shall constitute one and the same agreement.  Delivery of
an  executed counterpart of this Pledge Agreement via facsimile
transmission or in Adobe .pdf format by electronic mail shall be binding, and as
effective as delivery of a manually executed counterpart, and may be used as
admissible evidence that the party so transmitting intends to be bound by the
terms set forth herein.

     

    7.20        Lien
Absolute.  All rights of Agent hereunder, and all obligations
of Grantor hereunder, shall be absolute and unconditional irrespective
of:

     

    (a)           any
lack of validity or enforceability of the Credit Agreement, any other Loan
Document or any other agreement or instrument governing or evidencing any
Obligations;

     

    (b)           any
change in the time, manner or place of payment of, or in any other term of, all
or any part of the Obligations, or any other amendment or waiver of or any
consent to any departure from the Credit Agreement, any other Loan Document or
any other agreement or instrument governing or evidencing any
Obligations;

     

    (c)           any
exchange, release or non-perfection of any other Collateral, or any release or
amendment or waiver of or consent to departure from any guaranty, for all or any
of the Obligations;

     

    (d)           the
insolvency of any Person; or

     

    (e)           any
other circumstance which might otherwise constitute a defense available to, or a
discharge of, Grantor.

     

    7.21       Release.  Grantor
consents and agrees that Agent may at any time, or from time to time, in its
discretion (provided that, if addressed in the Credit Agreement, in accordance
therewith):

     

    (a)           renew,
extend or change the time of payment, and/or the manner, place or terms of
payment of all or any part of the Obligations; and

     

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    (b)           exchange,
release and/or surrender all or any of the Collateral (including the
Collateral), or any part thereof, by whomsoever deposited, which is now or may
hereafter be held by Agent in connection with all or any of the Obligations; all
in such manner and upon such terms as Agent may deem proper, and without notice
to or further assent from Grantor, it being hereby agreed that Grantor shall be
and remain bound upon this Pledge Agreement, irrespective of the value or
condition of any of the Collateral, and notwithstanding any such change,
exchange, settlement, compromise, surrender, release, renewal or extension, and
notwithstanding also that the Obligations may, at any time, exceed the aggregate
principal amount thereof set forth in the Credit Agreement, or any other
agreement governing any Obligations.

     

    ARTICLE
VIII

    NOTICES

     

    All notices, requests and other
communications to any party hereunder shall be in writing (including electronic
transmission, facsimile transmission or similar writing) and shall be given to
such party: (x) in the case of Borrower, Agent or any Lender, at its address or
facsimile number set forth on Schedule 14.1 of the Credit Agreement, and (y) in
the case of Grantor, at its address or facsimile number set forth on Exhibit A attached
hereto.  Each such notice, request or other communication shall be
effective (i) if given by facsimile transmission, when transmitted to the
facsimile number specified in this Article VIII and
confirmation of receipt is received, (ii) if given by mail, 72 hours after such
communication is deposited in the mails with first class postage prepaid,
addressed as aforesaid, or (iii) if given by any other means, when delivered
(or, in the case of electronic transmission, received) at the address specified
in this Article
VIII. Grantor may change the address for service of notice upon it by a
notice in writing to Agent, Agent may change the address for service of notice
upon it by a notice in writing the Grantor, and each other party to the Loan
Documents may change the address for service of notice in accordance with the
terms of the other Loan Documents.

     

    ARTICLE
IX

    THE
AGENT

     

    Fortress
Credit Corp. has been appointed Agent for Lenders hereunder pursuant to
Article XI of the Credit Agreement.  It is expressly understood
and agreed by the parties to this Pledge Agreement that any authority conferred
upon Agent hereunder is subject to the terms of the delegation of authority made
by Lenders to Agent pursuant to the Credit Agreement, and that Agent has agreed
to act (and any successor Agent shall act) as such hereunder only on the express
conditions contained in such Article XI.  Any successor Agent
appointed pursuant to Article XI of the Credit Agreement shall be entitled
to all the rights, interests and benefits of Agent hereunder.

     

    [Signature
Page Follows]

     

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Grantor and Agent have executed this Pledge Agreement as of
the date first above written.

     

    
      	 
      	
              NEVADA
      GOLD & CASINOS, INC.,

            
	 
      	
              as
      Grantor

            
	 
      	 
      
	 
      	
              By:

            	
              
                /s/
      Robert B. Sturges

              

            
	 
      	 
      
	 
      	
              Name:

            	
              
                Robert
      B. Sturges

              

            
	 
      	 
      
	 
      	
              Title:

            	
              
                CEO

              

            

    

    

    SIGNATURE
PAGE 1 OF 2 TO

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      	 
      	
              FORTRESS CREDIT
      CORP.,

            
	 
      	
              as
      Agent

            
	 
      	 
      
	 
      	
              By:

            	
              
                /s/
      Constantine M. Dakolias

              

            
	 
      	 
      
	 
      	
              Name:

            	
              
                Constantine
      M. Dakolias

              

            
	 
      	 
      
	 
      	
              Title:

            	
              
                President

              

            
	 
      	 
      

    

    

    SIGNATURE
PAGE 2 OF 2 TO

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

     (See
Sections 3.2, 3.3 and 3.4 of Pledge Agreement)

     

    GRANTOR’S
INFORMATION

     

    
      	
              I.

            	
              Name of Grantor: Nevada
      Gold & Casinos, Inc.

            

    

     

    
      	
              II.

            	
              State of Incorporation or
      Organization: Nevada

            

    

     

    
      	
              III.

            	
              Type of Entity:
      Corporation

            

    

     

    
      	
              IV.

            	
              Organizational Number assigned
      by State of Incorporation or Organization:
  1530-77

            

    

     

    
      	
              V.

            	
              Federal Identification Number:
      88-0142032

            

    

     

    
      	
              VI.

            	
              Place of Business (if it
      has only one) or Chief
      Executive Office (if more than one place of business) and Mailing
      Address:

            

    

     

    
      
        	
                
                  50
      Briar Hollow Lane

                

              
	
                
                  Suite
      500W

                

              
	
                
                  Houston,
      TX 77027

                

              
	
                Attention:  

              	
                
                  Robert
      B. Sturges

                

              
	 
      	
                CEO

              

      

    

     

    with a
copy to:

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2080 phone

    (973)
530-2280 fax

    Attn.:
David Hyman, Esq.

     

    
      
        	
                
                  3167
      Warm Springs Road

                

              
	
                
                  Suite
      100

                

              
	
                
                  Las
      Vegas, NV 89120

                

              
	 
      
	
                Attention: 

              	
                
                  Robert
      B. Sturges

                

              
	 
      	
                CEO

              

      

    

     

    with a copy to:

    Wolff
& Samson PC

    One
Boland Drive

    West
Orange, NJ 07052

    (973)
530-2080 phone

    (973)
530-2280 fax

    Attn.:
David Hyman, Esq.

    

    Exhibit
A

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    (See
Section 3.7 of Pledge Agreement and Definition of
“Collateral”)

     

    LIST OF
COLLATERAL

     

    MEMBERSHIP
INTERESTS

     

    
      
        
          
            
              
                	
                        Grantor

                      	 	
                        Issuer

                      	 	
                        Certificate

                        Number(s)

                      	 	
                        Type of

                        Membership

                        Interest

                      	 	
                        Percentage of Issued

                        and Outstanding

                        Membership Interests

                        Owned by Grantor

                        
                        

                      	 	 	
                        Percentage of

                        Outstanding

                        Membership

                        Interests

                        
                        

                      	 
	
                        Nevada
      Gold & Casinos, Inc.

                      	 	
                        NG
      Washington II Holdings, LLC

                      	 	1	 	
                        Voting

                      	 	 	100	%	 	 	100	%

              

            

          

        

      

    

    

    Exhibit
B

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
C

    (See
Section 3.1 of Pledge Agreement)

     

    OFFICES
IN WHICH FINANCING STATEMENTS HAVE BEEN FILED

     

    
      	
              Jurisdiction

            	 
      	
              Office

            
	
              Delaware

            	 
      	
              Delaware
      Secretary of State

              401
      Federal Street, Suite 4

              Dover,
      DE 19901

            

    

    

    Exhibit
C

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

    (See
Section 4.2 of Pledge Agreement)

    

    AMENDMENT

    

    This
Amendment, dated [________________, ___] is delivered pursuant to
Section 4.2 of the Pledge Agreement referred to below.  All
defined terms herein shall have the meanings ascribed thereto or incorporated by
reference in the Pledge Agreement.  The undersigned hereby certifies
that the representations and warranties in Article III of the Pledge
Agreement are and continue to be true and correct.  The undersigned
further agrees that this Amendment may be attached to that certain Membership
Interest Pledge Agreement, dated July 23, 2010, between the undersigned, as a
Grantor, and Fortress Credit Corp., as Agent, (the “Pledge Agreement”)
and that the Collateral listed on Schedule I to this
Amendment shall be and become a part of the Collateral referred to in said
Pledge Agreement and shall secure all Obligations referred to in said Pledge
Agreement.

     

    
      	 
      	
              
                   

              

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            	
              
                   

              

            
	 
      	
              Title:

            	
              
                   

              

            

    

     

    Exhibit D
- 1

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
I TO AMENDMENT

     

    MEMBERSHIP
INTERESTS

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Grantor

                                  	 	
                                    Issuer

                                  	 	
                                    Certificate

                                    Number(s)

                                  	 	
                                    Type of

                                    Membership

                                    Interest

                                  	 	
                                    Percentage of Issued and

                                    Outstanding Membership

                                    Interests Owned by

                                    Grantor

                                  	 	
                                    Percentage of

                                    Outstanding

                                    Membership

                                    Interests

                                  
	 
      	 	 
      	 	 
      	 	 
      	 	 
      	 	 
      
	 	 	 	 	 	 	 	 	 	 	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    Exhibit D
- 2

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
E

    (See
Section 4.2 of Pledge Agreement)

     

    FORM OF
ASSIGNMENT

     

    FOR VALUE
RECEIVED, the undersigned does hereby sell, assign and transfer to
______________________  one hundred percent (100%) of the membership
interests in NG Washington II Holdings, LLC, a Delaware limited liability
company (the “Company”), represented by Certificate No. 2 (the “Membership
Interests”), standing in the name of the undersigned on the books of the Company
and does hereby irrevocably constitute and appoint ______________________ and
its officers as the undersigned’s true and lawful attorney, for and in name and
stead, to sell, assign and transfer all or any of the Membership Interests, and
for that purpose to make and execute all necessary acts of assignment and
transfer thereof; and to substitute one or more persons with like full power,
hereby ratifying and confirming all that said attorney or substitute or
substitutes shall lawfully do by virtue hereof.

     

    Dated:
_______________1

     

    
      	 
      	
              NEVADA
      GOLD & CASINOS, INC.

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              By: 

            	
                 

            	
              2

            
	 
      	 
      	
              Name:

            	 
      
	 
      	 
      	
              Title:

            	 
      

    

     

    
      

    

    
      1 date to
be left blank

      
        2 to be
executed by an authorized officer of Nevada Gold & Casinos,
Inc.

      

    

     

    Exhibit
E

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

    

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    EXHIBIT
F

    (See
Section 4.7 of Pledge Agreement)

    

    FORM OF
ACKNOWLEDGMENT

     

    Reference
is hereby made to that certain Membership Interest Pledge Agreement dated as of
July 23, 2010 by and among Nevada Gold & Casinos, Inc., a Nevada corporation
(the “Grantor”), (as the
same may be amended, amended and restated, supplemented or otherwise modified
from time to time, the “Pledge Agreement”),
in favor of Fortress Credit Corp., as agent (the “Agent”), for the
benefit of the Lenders under the Credit Agreement.  Capitalized terms
used herein and not defined herein shall have the meanings given to such terms
in the Pledge Agreement.

     

    The
undersigned hereby acknowledges receipt of a copy of the foregoing Pledge
Agreement, agrees promptly to note on its books the security interests granted
under such Pledge Agreement with respect to the Collateral issued by the
undersigned, and waives any rights or requirement at any time hereafter to
receive a copy of such Pledge Agreement in connection with the registration of
any Collateral in the name of Agent or its nominee or the exercise of voting
rights by Agent.

     

    
      
        
          
            
              
                	 
      	
                        NG
      WASHINGTON II HOLDINGS, LLC

                      
	 
      	 
      	 
      	 
	  
      	
                        By:

                      	
                         

                      	 
      
	 
      	
                        Name: 

                      	 
      	 
	 
      	
                        Title:

                      	 
      	 

              

            

          

        

      

    

    

    Exhibit
F

    Fortress/Nevada
Gold & Casinos

    Membership
Interest Pledge Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]