Document:

Form of Warrant

 Exhibit 4.1 
 COMMON STOCK PURCHASE WARRANT 
 To Purchase
                     Shares of Common Stock of 
 NANOGEN, INC. 
 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that,
for value received,                      (the “Holder”), is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five year anniversary following the Initial Exercise Date (the
“Termination Date”) but not thereafter, to subscribe for and purchase from Nanogen, Inc., a Delaware corporation (the “Company”), up to
                     shares (the “Warrant Shares”) of Common Stock, par value $0.001 per share, of the Company (the
“Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 
 Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Securities Purchase Agreement (the “Purchase Agreement”), dated February 5, 2007, among the Company and the purchasers signatory thereto. 
 Section 2. Exercise. 
 a) Exercise of Warrant. Exercise of the
purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of (i) a duly executed facsimile copy of
the Notice of Exercise Form annexed hereto (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company); and (ii) payment
of the aggregate Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised; and (iii) if this Warrant is exercised in full, this Warrant certificate for cancellation. The Holder shall not be required to
physically surrender this Warrant to the Company until (i) the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full or (ii) a new Warrant is delivered to the Holder pursuant to
Section 2(e)(iii). Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder
in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any
Notice of Exercise Form within 1 Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of
the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 
  

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 b) Exercise Price. The exercise price of the Common Stock under this Warrant shall
be $1.85, subject to adjustment hereunder (the “Exercise Price”). Subject to Section 2(c) below, payment of the Exercise Price shall be made by wire transfer of immediately available fund drawn on a U.S. bank. 
 c) Cashless Exercise. If at any time during the term of this Warrant either there is no effective Registration Statement
registering, or no current prospectus available for, either (i) the issuance of the Warrant Shares by the Company to the Holder or (ii) the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised at such time by
means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 
 (A) = the Closing Price on the Trading Day immediately preceding the date of such election; 
 (B) = the Exercise Price of this Warrant, as adjusted; and 
 (X) = the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash
exercise rather than a cashless exercise. 
 d) Holder’s Restrictions. The Company shall not effect any exercise
of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2(c) or otherwise, to the extent that after giving effect to such issuance after exercise, such Holder (together with such
Holder’s affiliates, and any other person or entity acting as a group together with such Holder or any of such Holder’s affiliates), as set forth on the applicable Notice of Exercise, would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by such Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Preferred Stock or Warrants)
subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(d),
beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by a Holder that the Company is not representing to such Holder that such
calculation is in compliance with Section 13(d) of the Exchange Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(d)
applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which a 

  

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portion of this Warrant is exercisable shall be in the sole discretion of a Holder, and the submission of a Notice of Exercise shall be deemed to be each
Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the
Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the
rules and regulations promulgated thereunder. For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s Transfer Agent setting forth the number of shares of
Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by such Holder or its affiliates since the date as of which such number of outstanding
shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon
exercise of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2(d) may be waived by such Holder, at the election of such Holder, upon not less than 61 days’ prior notice to the Company to change the Beneficial
Ownership Limitation to 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant, and the provisions of this Section 2(d) shall
continue to apply. Upon such a change by a Holder of the Beneficial Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the Beneficial Ownership Limitation may not be waived by such Holder. The provisions of this paragraph
shall be implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 
 e) Mechanics of Exercise. 
 i. Authorization of Warrant Shares. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase
rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue). 
  

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 ii. Delivery of Certificates Upon Exercise. Certificates for shares purchased
hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”)
system if the Company is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise within 3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the date that is the later of
(x) the date the Notice or Exercise has been delivered to the Company and (y) the date the aggregate Exercise Price has been delivered to the Company. The Warrant Shares shall be deemed to have been issued, and Holder or any other person
so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and all taxes required to be paid by
the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance of such shares, have been paid. 
 iii.
Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or
certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this
Warrant. 
 iv. Rescission Rights. If the Company fails to cause its transfer agent to transmit to the Holder a
certificate or certificates representing the Warrant Shares pursuant to Section 2(e)(ii) on or before the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 
 v. Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to
the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the
Holder is required by its broker to purchase (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a
“Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds
(y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such
purchase obligation 

  

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was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such
exercise was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations
and other evidence reasonably requested by the Company. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
 vi. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise
of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Exercise Price. 
 vii. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without
charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the
Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for
exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto.

 viii. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the
timely exercise of this Warrant, pursuant to the terms hereof. 
 Section 3. Certain Adjustments. 
 a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (A) pays a stock dividend or
otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by

  

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the Company pursuant to this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way
of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall
be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record
date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 
 b) Subsequent Equity Sales. If the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding,
shall sell or grant any option to purchase, or sell or grant any right to reprice its securities, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or Common Stock
Equivalents entitling any Person to acquire shares of Common Stock, at an effective price per share less than the then Exercise Price (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive
Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or
due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share which is less than the Exercise Price, such issuance shall be deemed to
have occurred for less than the Exercise Price on such date of the Dilutive Issuance), then the Exercise Price shall be reduced and only reduced to equal the Base Share Price. Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no adjustments shall be made, paid or issued under this Section 3(b) in respect of an Exempt Issuance. The Company shall notify the Holder in writing, no later than the Trading Day
following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 3(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such
notice the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon the occurrence of any Dilutive Issuance, after the date
of such Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. 
 c) Pro Rata Distributions. If the Company, at any time prior to the Termination Date, shall distribute to all holders of Common
Stock (and not to Holders of the Warrants) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to 

  

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Section 3(b)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record
date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the Closing Price determined as of the record date mentioned above, and of which the numerator shall be such Closing
Price on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of
Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common
Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. 
 d) Fundamental Transaction. If, at any time while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects
any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant
Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and any additional consideration (the “Alternate Consideration”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of
shares of Common Stock for which this Warrant is exercisable immediately prior to such event. For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based
on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the
relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same
choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such
Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a
Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3(d) and insuring that this Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction 

  

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analogous to a Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction that is (1) an all cash
transaction, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the Securities Exchange Act of 1934, as amended, or (3) a Fundamental Transaction involving a person or entity not traded on a national securities
exchange, the Nasdaq Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the Company or any successor entity shall pay at the Holder’s option, exercisable at any time concurrently with or within 30 days after the
consummation of the Fundamental Transaction, an amount of cash equal to the value of this Warrant as determined in accordance with the Black-Scholes option pricing formula using an expected volatility equal to the 100 day historical price volatility
obtained from the HVT function on Bloomberg L.P. as of the trading day immediately prior to the public announcement of the Fundamental Transaction. 
 e) Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of
Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. 
 f) Voluntary Adjustment By Company. The Company may at any time during the term of this Warrant reduce the then current Exercise
Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 
 g) Notice
to Holders. 
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to this
Section 3, the Company shall promptly deliver each Holder a written notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
 ii. Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other
property in respect of its Common Stock, including without limitation any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement
contemplating, or solicits, stockholder approval for any reclassification of the Common Stock or any merger, sale or similar transaction pursuant to which Common Stock is converted or exchanged for cash, securities or property or
(iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the
Company, at least 15 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such 
  

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dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other
property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice. The Holder is entitled to exercise this Warrant during the 15-day period commencing on the date of such notice to the effective date of the event triggering such notice. 
 Section 4. Transfer of Warrant. 
 a)
Transferability. This Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company, together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a
new Warrant or Warrants in the name of the assignee or assignees and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so
assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 
 b) New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such
division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. 
 c) Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant
Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder,
and for all other purposes, absent actual notice to the contrary. 
 Section 5. Miscellaneous. 
 a) Title to Warrant. Prior to the Termination Date and subject to compliance with applicable laws and Section 4 of this Warrant, this Warrant and
all rights hereunder are transferable, in whole or in part, at the office or agency of the Company by the Holder in person or by duly authorized attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly
endorsed. 
  

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 b) No Rights as Shareholder Until Exercise. This Warrant does not entitle the
Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price (or by means of a cashless exercise), the Warrant Shares so
purchased shall be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment. 
 c) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated
as of such cancellation, in lieu of such Warrant or stock certificate. 
 d) Saturdays, Sundays, Holidays, etc. If the
last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not
a Saturday, Sunday or legal holiday. 
 e) Authorized Shares. 
 The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its
officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any
of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such 

  

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terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against
impairment. Without limiting the generality of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value,
(b) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts
to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in
the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 f) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be
determined in accordance with the provisions of the Purchase Agreement. 
 g) Restrictions. The Holder acknowledges
that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws. 
 h) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
 i) Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall
be delivered in accordance with the notice provisions of the Purchase Agreement. 
 j) Limitation of Liability. No
provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
  

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 k) Remedies. Holder, in addition to being entitled to exercise all rights granted
by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
 l) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and
the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares. 

m) Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company
and the Holder. 
 n) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
 o) Headings. The headings
used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 ******************** 
  

 12 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly
authorized. 
 Dated: February     , 2007 
  

			
	NANOGEN, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 13 

 NOTICE OF EXERCISE 
 TO:                      
 (1) The undersigned hereby elects to purchase              Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
 (2)
Payment shall take the form of (check applicable box): 
 [    ] in lawful money of the United States; or 
 [    ] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below: 
                                    
 _______________________________________                                 
                                    
 The Warrant Shares shall be delivered to the following: 
                                    
 _______________________________________                                 
                                    
                                    
 _______________________________________                                 
                                    
                                    
 _______________________________________                                 
                                    

 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute 
 this form and supply required information. 
 Do not use this form to exercise the warrant.) 
 FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
                                       
                                        
                               whose address is 
 ____________________________________________________________________.                           
                                        
                                        
                              
 ____________________________________________________________________                           
                                        
                                        
                              
                                        
                                        
             Dated:                     ,
             
  

					
	 Holder’s Signature:
	  	  
	  	
			
	Holder’s Address:	  	  
	  	
			
		  	  
	  	

 Signature Guaranteed:
                                        
                                        
             
 NOTE: The signature to this Assignment Form must correspond with the name as
it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or other representative capacity should
file proper evidence of authority to assign the foregoing Warrant.Reducing Revolving Loan Agreement

 Exhibit 10.80 
 REDUCING REVOLVING LOAN AGREEMENT 
 THIS REDUCING REVOLVING LOAN AGREEMENT (the
“Agreement”) is made effective as of the 31st day of January, 2007, by and between FULL HOUSE RESORTS,
INC., a Delaware corporation (the “Borrower”), and NEVADA STATE BANK (the “Lender”). 
 WITNESSETH:

 WHEREAS, Borrower desires to purchase all of the issued and outstanding shares of stock (the “Shares”) in
Stockman’s Casino, a Nevada corporation (“Stockman’s Casino”), which is licensed by the Nevada Gaming Commission to own and operate the Stockman’s Casino and Hotel located on certain real property in Fallon, Churchill
County, Nevada, and described in Exhibit “A” (the “Property”); 
 WHEREAS, subject to the terms and conditions
hereof, Lender has agreed to lend to Borrower certain funds on a reducing revolving basis in an amount not to exceed SIXTEEN MILLION AND NO/I OOTHS DOLLARS ($16,000,000.00) (the “Loan”) to assist the Borrower in purchasing
the Shares and to provide Borrower with working capital. 
 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises of
the parties and subject to the following terms and conditions, Borrower agrees to borrow from Lender, and Lender agrees to loan to Borrower the Loan for the purposes provided herein. The Loan shall be evidenced by a Reducing Revolving Promissory
Note (the “Note”) bearing even date herewith, secured by a Stock Pledge Agreement (the “Stock Pledge”) under which the Borrower shall pledge to Lender all of the Shares, and guaranteed by Stockman’s Casino by the execution
of a Guarantee in form and content acceptable to Lender (the “Guarantee”). This Agreement, the Note, the Guarantee, Stock Pledge, and any and all other documents now or hereafter executed by Borrower or any other person or party in
connection with or to evidence or secure payment of the Loan are sometimes hereafter collectively referred to as the “Loan Documents”. 
 A. DISBURSEMENTS: 
 A.1 Initial Disbursement. Lender shall make an initial disbursement under the Loan
(the “Initial Disbursement”) to assist Borrower in purchasing the Shares once the following conditions have been satisfied: 
 (a)
Borrower has caused to be provided to Lender, at Borrower’s or Stockman’s Casino’s expense, an ALTA lender’s policy of title insurance insuring the lien of a Deed of Trust and Security Agreement and Fixture Filing With Assignment
of Rents (the “Deed of Trust”) executed by Stockman’s Casino for the benefit of Lender to secure Stockman’s Casino’s obligations 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 
under the Guarantee as a first priority lien on the Property, which title policy shall be in form and content, and issued by a title insurer acceptable to
Lender, and shall be subject only to such exceptions to title as Lender may approve; 
 (b) Borrower shall have paid Lender or deposited
into escrow sufficient sums to pay Lender’s loan fee in the amount of $160,000.00, all closing costs and fees, and Lender’s reasonable attorneys’ fees and costs incurred in connection herewith; 
 (c) Lender shall have received evidence acceptable to Lender that the security interest in and to all personal property collateral for the Loan,
including without limitation, the inventory and accounts receivable of Stockman’s Casino, contained in the Deed of Trust constitutes a first priority lien; 
 (d) Lender shall have received evidence acceptable to Lender that Borrower has received any and all regulatory approvals in connection with the acquisition of the Shares, including without limitation, approvals
required to be obtained from the Gaming Authorities (as defined in the Stock Pledge); 
 (e) Lender shall have received an opinion from
counsel for the Borrower, in all respects acceptable to Lender, opining that the Loan documents have been duly executed anal delivered and are enforceable under Nevada law, that Borrower and Stockman’s Casino are legally existing under the laws
of the state of their organization, are qualified to transact business in Nevada and are in good standing, and that the Loan has been duly authorized by all necessary corporate action; and 
 (1) There has occurred no material adverse change in the financial condition of Borrower or Stockman’s Casino from the condition reflected in the
most recent financial statements provided to Lender in connection with the Loan. 
 A.2 Subsequent Disbursements.
Lender’s obligation to make any disbursements under the an following the Initial Disbursement shall be subject to the following: 
 (a) Each representation, covenant and warranty made by Borrower herein shall be true and correct at the time Borrower requests any such disbursement and at the time that such disbursement is made; 
 (b) Borrower shall submit to Lender a disbursement request in form and content acceptable to Lender and executed by an authorized officer or other
representative of Borrower; 
 (c) No Event of Default (as herein defined), or any event which with notice and/or the passage of time would
constitute an Event of Default, shall then exist hereunder; and 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 (d) Borrower shall provide Lender with such information as Lender may reasonably require regarding the
proposed use of the requested Loan funds. 
 A.3 Reductions in Commitment. The maximum committed amount under the Loan shall
be reduced by the amount of $533,000.00 semi-annually on the first day of January and July of each year commencing on the first day of July, 2007. 
 B. REPRESENTATIONS, COVENANTS AND WARRANTIES. 
 Borrower hereby unconditionally represents, covenants and warrants as
follows: 
 B.l Power. If Borrower or any signator who signs on its behalf is a corporation, partnership, limited liability
company, or trust, that it is a corporation duly incorporated, or a partnership, limited liability company, or trust duly organized, and in any event validly existing under the laws of the state of its incorporation or organization and duly
qualified to do business in the State of Nevada, with requisite power and authority to (i) incur the indebtedness evidenced by the Note; (ii) enter into this Agreement and execute the Stock Pledge; and (iii) enter into any other Loan
Documents executed and delivered to Lender concurrently herewith. 
 B.2 Authority. That this Agreement, the Note, the Stock
Pledge and all other Loan Documents executed and delivered to Lender concurrently herewith were duly executed, and, if Borrower or any signator who signs on its behalf is a corporation, partnership, limited liability company, or trust, in accordance
with any requirements of its articles of incorporation, articles of partnership, articles of organization and/or operating agreement, or declaration of trust, and any amendments thereto, and that the execution of the same, and the full and complete
performance of the provisions thereof, is authorized by its bylaws, articles of partnership, articles of organization and/or operating agreement, or declaration of trust, or a resolution of its board of directors, partners, members and/or managers
or trustees, and will not result in any breach of, or constitute a default under, or result in the creation of any lien, charge or encumbrance (other than those contained herein or in any instrument delivered to Lender concurrently herewith) upon
any property or assets of Borrower under any indenture, mortgage, deed of trust, bank loan or credit agreement or other instrument or agreement to which Borrower is a party or by which Borrower is bound or, if applicable, under Borrower’s
corporate charter, bylaws, articles of partnership, articles of organization and/or operating agreement, or declaration of trust. 
 B.3
Financial Statements. Any and all balance sheets, statements of income or loss, reconciliation of surplus and financial data of any other kind heretofore furnished Lender by or on behalf of Borrower and Stockman’s Casino are true and
correct in all material respects, and fully and accurately present the financial condition of the subjects thereof as of the dates thereof, and no material adverse change has occurred in the financial condition reflected therein since the dates of
the most recent financial data submitted to Lender. During the Loan term, Borrower shall provide Lender with: (i) copies of annual CPA audited financial statements for the Borrower and 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 
Stockman’s Casino within 120 days following the end of each fiscal year; (ii) copies of quarterly 10Q’s for Borrower within 45 days following
the end of each fiscal quarter; (iii) copies of quarterly internally prepared financial statements for Stockman’s Casino within 45 days following the end of each fiscal quarter; (iv) copies of federal income tax returns (including all
schedules) and/or extension requests for Borrower within 30 days after filing the same; and (v) such other financial information in connection with the Borrower, Stockman’s Casino and the Property as Lender may reasonably request.
Stockman’s Casino’s annual and quarterly financial statements shall be certified to be true and correct by Stockman’s Casino’s chief financial officer. 
 B.4 Financial Covenants. During the term of the Loan, Stockman’s Casino shall: 
 (a) maintain a Fixed Charge Coverage Ratio (defined as [earnings before interest, taxes, depreciation and amortization (“EBITDA”), less
maintenance capital expenditures (in an amount equal to two percent (2%) of total net revenues), cash taxes, dividends and withdrawals] _ [interest, capital lease payments and scheduled principal payments]) of not less than 1.10 to 1.00 to be
measured quarterly by Lender on a rolling four (4) quarter basis (which may include quarters under previous ownership); 
 (b) maintain
a Maximum Funded Debt to EBITDA Ratio (the “Funded Debt to EBITDA Ratio”) (defined as [interest bearing debt (which shall include the indebtedness evidenced by the Loan), plus capital leases outstanding as of the measurement date] =
[EBITDA]) of not greater than 4.25 to 1.00 until December 31, 2007, not greater than 3.75 to 1.00 until December 31, 2008, not greater than 3.25 to 1.00 until December 31, 2009, and not greater than 2,75 to 1.00 as of
December 31, 2009 and thereafter to be measured quarterly by Lender on a rolling four (4) quarter basis (which may include quarters under previous ownership); 
 (c) maintain a Minimum Tangible Net Worth (defined as net worth minus all intangible assets, including without limitation, shareholder loans, affiliate loans and investments, goodwill, and financing costs) as
determined at the close of acquisition of the Shares, to be increased by an amount equal to twenty percent (20%) of Stockman’s Casino’s net income after income tax obligations and debt service requirements under the Loan and the
Subordinated Debt (as hereinafter defined), each fiscal year end commencing with the fiscal year ending on December 31, 2007, to be measured quarterly by Lender; 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 (d) limit distributions to and withdrawals by owners to an amount equal to not more than fifty percent
(50%) of Stockman’s Casino’s net income plus income tax obligations and debt service requirements under the Loan and the Subordinated Debt (as hereinafter defined), during each of the first three (3) twelve (12) month fiscal
periods following the closing of the Loan; 
 (e) make annual capital expenditures in an amount not less than two percent (2%) and not
greater than six percent (6%) of Stockman’s Casino’s consolidated net revenues for the immediately prior fiscal year unless otherwise consented to by the Lender; and 
 (f) establish and maintain operating accounts with a branch of Lender. 
 For the purpose of determining the adjusted interest rate under the Note, the Funded Debt to EBITDA Ratio shall be based upon the average outstanding balance of the Loan as of the end of the four (4) previous
fiscal quarters of Stockman’s Casino. 
 B.5 Subordination of Seller Indebtedness. Any indebtedness of Borrower in
favor of the seller of the Shares (the “Subordinated Debt”) shall be subordinated to all of Borrower’s indebtedness to Lender, including the Loan, pursuant to an agreement acceptable to Lender (the “Subordination
Agreement”). Such Subordination Agreement shall provide that regularly scheduled payments of principal and/or interest under such Subordinated Debt maybe made by Borrower if no Event of Default then exists hereunder. 
 B.6 Litigation. There are no actions, suits or proceedings of a material nature (collectively “Proceedings”) pending, or
to the knowledge of Borrower threatened, against or affecting the Borrower, Stockman’s Casino, the Property, the Shares, or involving the validity or enforceability of the Stock Pledge or the priority of the lien and security interest thereof,
and no event (“Adverse Event”) has occurred (including specifically the execution of this Agreement, the Note, the Stock Pledge or any of the other Loan Documents) which will violate, be in conflict with, result in the breach of or
constitute (with due notice or lapse of time, or both) a default under any Legal Requirement (as hereafter defined), or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever on the Shares or the Property
other than the liens and security interests created by, or referred to in, the Stock Pledge. Borrower shall give Lender written notice of any pending or threatened Proceeding or any Adverse Event promptly after Borrower obtains knowledge thereof.

  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 B.7 Permits. Before requesting, or being entitled to, any disbursement of the an, Borrower
and/or Stockman’s Casino shall have complied with all Legal Requirements and all material requirements .of the governmental entities with jurisdiction over the Property. 
 The foregoing representations, covenants and warranties shall survive until all suns payable pursuant to the Note or this Agreement, or which are
secured by the Stock Pledge or any of the other Loan Documents, have been paid in fill. 
 C. DEFAULT. 
 C1 Events of Default. Any of the following shall constitute a default hereunder (an “Event of Default”): 
 (a) The failure of Borrower to make any payment required hereunder, under the Note, or under any other Loan Document within fifteen (15) days after
the due date thereof; 
 (b) The neglect, failure, or refusal of Borrower to keep in full force and effect any material permit, license,
consent or approval required hereunder, or under the Loan Documents; 
 (c) The materially false or misleading nature of any representation
or warranty of Borrower contained herein or in any representation to Lender concerning the financial condition of Borrower, or the reasonable determination by Lender of a material threat to its security by reason of a material adverse change in the
financial condition of Borrower; 
 (d) The failure of Borrower to fully perform any and all covenants and agreements hereunder; provided,
however, that such failure shall not be an Event of Default hereunder if such failure is not specifically covered elsewhere herein or in the Note, the Stock Pledge or any of the other Loan Documents, such failure does not relate, in the judgment of
Lender, to a matter which is of an emergency nature, and Borrower performs such covenant or agreement within thirty (30) days after performance thereof is due. If such failure is specifically covered elsewhere herein or in the Note, the Stock
Pledge or any of the other Loan Documents, the foregoing 30-day grace period shall not be applicable in such a situation and the grace period, notice requirement and/or cure period, if any, set forth in such other reference shall control;

 (e) The failure of Borrower to perform (other than to make a payment due thereunder) as required under any other Loan Document within
thirty (30) days after such performance is due; 
 (f) The admission by Borrower or Stockman’s Casino in writing of its inability
to pay its debts generally as they become due, or the filing by Borrower or Stockman’s Casino of a petition or action for relief under any bankruptcy, reorganization or insolvency law, or any other law or laws for the relief of, or relating to,
debtors; 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 (g) The filing of any involuntary petition under any bankruptcy or insolvency law against Borrower or
Stockman’s Casino, or the appointment of a custodian, receiver or trustee to take possession of the Property or other assets of Borrower or Stockman’s Casino, unless such petition or appointment is or has been set aside or withdrawn within
sixty (60) days from the date of such filing or appointment; 
 (h) Stockman’s Casino shall. notify Lender of its intention to
rescind, modify, terminate or revoke the Guarantee without the prior written consent of Lender, or the Guarantee shall cease to be in full force and effect for any reason; or 
 (i) Any breach or default by Borrower or Stockman’s Casino under any other loan or credit facility now or hereafter existing between Lender and
Borrower or Stockman’s Casino, subject to any applicable notice requirement and opportunity to cure. 
 For the purpose of paragraph C.
1, whenever Borrower is provided with a period of time within which to cure any default, and such default is not reasonably susceptible to cure within such period of time, it shall be deemed cured if Borrower commences curative action within such
time period and diligently pursues such action thereafter. 
 C.2 Acceleration. Upon the occurrence and during the
continuance of an Event of Default hereunder, the entire unpaid balance of the Note including all accrued interest shall, at the option of Lender, become immediately due and payable and Lender shall have such rights of enforcement as maybe afforded
by law, hereunder, or under the Note, the Stock Pledge or any of the other Loan Documents. 
 D. REMEDIES. 
 D.1 General. Upon the occurrence and during the continuance of an Event of Default hereunder, Lender shall have all rights and remedies
available to Lender under the law, hereunder or under the Note (including but not limited to the right to accelerate the Note), the Stock Pledge or any of the other Loan Documents. 
 D.2 Right to Advance or Post Funds. Where disputes arise which, in the good faith opinion of Lender, may endanger the performance of any
covenant contained herein, Lender may, following ten (10) days written notice to Borrower, enter into such agreements or advance funds for the account of Borrower without prejudice to Borrower’s rights, if any, to recover said funds from
the party to whom paid. Such agreement or agreements may take the form which Lender, in its discretion, deems proper, including but not limited to agreements to indemnify a title insurer against possible assertion of lien claims or to pay disputed
amounts to contractors if Borrower is unable or unwilling to pay the same. All sums paid or agreed to be paid pursuant to any such 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 
undertaking shall be for the account of Borrower, Borrower shall reimburse Lender for any such payments made upon demand therefor, with interest at the rate
then applicable under the Note until date of reimbursement, and such advances and interest shall be secured by the Stock Pledge. 
 D.3
Curing of Defaults by Disbursement. Upon the occurrence and during the continuance of an Event of Default which may be cured by the payment of money other than under Paragraph C. 1 (a), Lender, without waiving any right of acceleration or
foreclosure under the Note or the Stock Pledge which Lender may have by reason of such Event of Default, or any other right Lender may have against Borrower because of such Event of Default, shall have the right to make such payment from the Loan,
thereby curing the Event of Default. 
 D.4 Remedies are Cumulative. All remedies of Lender provided for herein are
cumulative and shall be in addition to any and all other rights and remedies provided in the Note, the Stock Pledge or any of the other Loan Documents or by law. The exercise of any rights of Lender hereunder shall not in any way constitute a cure
or waiver of a default hereunder or elsewhere, or invalidate any act done pursuant to any notice of default, or, to the maximum extent permitted by law, prejudice Lender in the exercise of any of its other rights hereunder or elsewhere unless, in
the exercise of said rights, Lender realizes Al amounts owed to it hereunder and under the Note, the Stock Pledge and the other Loan Documents. 
 D.5 Right of Contest. Borrower shall have the right to contest in good faith any claim, demand, levy, or assessment by a third party, the assertion of which would constitute an Event of Default hereunder. Any such contest
shall be prosecuted diligently and in a manner not prejudicial to Lender or the rights of Lender hereunder. fn the event that Lender reasonably determines that such claim, demand, levy or assessment could adversely affect Lender’s interest in
the Property, upon demand by Lender, Borrower shall deposit funds with Lender or obtain and record a bond satisfactory to Lender in an amount sufficient to cover any amounts which may be owing in the event the contest may be unsuccessful. Borrower
shall make such deposit or obtain and record such bond, as the case may be, within five (5) days after demand therefor and, if made by payment of funds to Lender, the amount so deposited shall be disbursed in accordance with the resolution of
the contest to Borrower or the adverse claimant. 
 E. MISCELLANEOUS. 
 E.l No Waiver. No waiver of any default or breach by Borrower hereunder shall be implied from any omission by Lender to take action on
account of such default, and no express waiver shall affect any default other than the default specified in the waiver and the waiver shall be operative only for the time and to the extent therein stated. Waivers of any covenant, term, or condition
contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term or condition. The consent or approval by Lender to or of any act by Borrower requiring further consent or approval shall not be deemed to waive
or render unnecessary the consent or approval to or of any subsequent similar act. 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 E.2 No Third Parties Benefitted. This Agreement is made and entered into for the sole
protection and benefit of Lender and Borrower. All conditions of the obligations of Lender to make advances hereunder are imposed solely and exclusively for the benefit of Lender and maybe freely modified by Lender with the concurrence of Borrower
or waived by Lender in whole or in part at any time if in its sole discretion it deems it advisable to do so. No person other than Borrower shall have standing to require Lender to make any Loan advances or be a beneficiary of this Agreement or of
any of the advances to be made hereunder. 
 E.3 [Intentionally Omitted.] 
 E.4 Notices. All notices or other communications required or permitted to be given hereunder shall be in writing and shall be considered
as properly given if mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested, or by delivering the same in person to the intended addressee, or by telefax. Notice so mailed shall be effective
two (2) business days following its deposit. Notice given in any other manner shall be effective only if and when received by the addressee during normal business hours. For purposes of notice, the addresses of the parties shall be as set forth
on the signature page hereof; provided, however, that either party shall have the right to change its address for notice hereunder to any other location by the giving of notice to the other party in the manner set forth above. 
 E.5 Authority to File Notices. Borrower irrevocably appoints, designates, and authorizes Lender as its agent (said agency being coupled
with an interest) to file for record any notice that Lender reasonably deems necessary or desirable to protect its interest hereunder or under the Note, the Stock Pledge or any of the other Loan Documents. Lender shall only file such notices if
Borrower fails, within fifteen (15) days after written demand by Lender, to do so. 
 E.6 Expenses. Borrower shall pay
promptly all reasonable costs, charges, and expenses incurred by Lender in connection with the Loan, including but not limited to commitment fees, loan fees, service charges, title charges, tax and lien service charges, costs of inspection,
recording fees, processing fees, appraisal fees, attorneys` fees, real property taxes and assessments and insurance premiums, and any and all fees in consideration of Lender’s commitment to provide the Loan. 
 E.7 Actions. Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right to commence, appear in or
defend any action or proceeding purporting to affect the Property, or the rights, duties, or liabilities of the parties hereunder, or the disbursement of any funds. In connection therewith, Lender may incur and pay costs and expenses, including
reasonable attorneys’ fees, and Borrower shall pay to Lender on demand all such costs and expenses and Lender is authorized to disburse funds from the Loan for said purpose. 
 E.8 Commissions and Brokerage Fee. Borrower shall indemnify Lender from any responsibility and/or liability for the payment of any
commission, charge or brokerage fees to 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 
anyone which may be payable in connection with the making, purchase or refmance of the Loan, it being understood that any such commission, charge, or
brokerage fees will be paid directly by Borrower to the party or parties entitled thereto. 
 E.9 Applicable Law. This
Agreement shall be governed by and construed in accordance with the laws of Nevada, except as preempted by federal law. Notwithstanding anything to the contrary contained herein, this than Agreement is subject to the Applicable Gaming Laws (as
defined in the Stock Pledge) of the State of Nevada. Lender agrees to cooperate with the Gaming Authorities (as defined in the Stock Pledge) of the State of Nevada in connection with the administration of their regulatory jurisdiction over Borrower,
including the provision of such documents and other information as may be requested by the Gaming Authorities of the State of Nevada relating to Borrower or the an Documents. 
 E.10 Heirs, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, assigns
and personal representatives of the parties hereto; provided, however, that Borrower shall not assign its rights hereunder in whole or in part without the prior written consent of Lender, which such consent may be granted or withheld in the sole and
absolute discretion of Lender. Any such assignment without said consent shall be void. Lender shall have the right at any time and from time to time to assign to participants or others all or certain of its rights and obligations hereunder but no
such assignment shall, without Borrower’s written consent, relieve Lender of its obligations hereunder. Notwithstanding the foregoing, without Lender’s prior consent but on at lease fifteen (15) days advance notice to Lender, the
Borrower may (i) transfer the Shares to any entity controlled by or under common control with Borrower, and/or (ii) cause the transfer of the Property to a separate entity controlled by or under common control with Stockman’s Casino
(i.e., separate from the operations of the Property), so long as in each case the liens of the Stock Pledge and the Deed of Trust remain first priority liens in favor of Lender on the respective collateral described therein. 
 E.11 Time. Time is of the essence of this Agreement and each and every proAsion hereof in which time is an element. 
 E.12 Supplemental Agreement. The provisions of this Agreement are not intended to supersede the provisions of the Stock Pledge but shall
be construed as supplemental thereto. This Agreement, and all representations and warranties contained herein, shall remain in effect until the Loan has been paid in full. 
 E.13 Legal Requirements. “Legal Requirements” shall mean (i) any and all present and future judicial decisions, statutes,
rulings, directions, rules, regulations, permits, certificates or ordinances of any governmental authority in any way applicable to Borrower or the Property, including the ownership, use, occupancy, possession, operation, maintenance, alteration,
repair or reconstruction thereof, including, without limitation, any Applicable Gaming Laws, (ii) Borrower’s presently or subsequently effective bylaws and articles of incorporation or partnership, limited partnership, joint venture, trust
or other form of business association agreement, (iii) any and 
  

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 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 
all terms, provisions and conditions of any commitment between Lender and Borrower which are to be performed or observed by Borrower, and (iv) any and
all leases and other contracts (written or oral) of any nature that relate, in any way, to the Property and to which Stockman’s Casino may be bound, including but not limited to any lease or other contract pursuant to which Stockman’s
Casino is granted a possessory interest in the Property. 
 E.14 Relationship of Parties. The relationship between
Borrower and Lender is, and at all time shall remain, solely that of debtor and creditor, and shall not be, or be construed to be, a joint venture, equity venture, partnership or other relationship of any nature, and Lender neither undertakes nor
assumes any responsibility or duty to Borrower or to any other person with respect to the Property or the Loan, except as expressly provided in the an Documents; and notwithstanding any other provision of the Loan Documents: (a) Lender is not,
and shall not be construed as, a partner, joint venturer, alter ego, manager, controlling person or other business associate or participant of any kind of Borrower or its partners or members and Lender does not intend to ever assume such status;
(b) Lender shall in no event be liable for any debts, expenses or losses incurred or sustained by Borrower; (c) Lender does not intend to ever assume any responsibility to any person for the quality, suitability, safety or condition of the
Property; and (d) Lender shall not be deemed responsible for or a participant in any acts, omissions or decisions of Borrower or its partners or members. 
 E.15 Attorneys’ Fees and Costs. If any legal action or any arbitration or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute, breach, default or
misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees and other costs incurred in that action or proceeding, in addition to any
other relief to which he may be entitled. 
 E.16 Expiration of Commitment. Lender’s obligation to disburse the
Loan is further conditioned upon the execution of this Agreement and the other Loan Documents and the recordation of the Deed of Trust on or before February 28, 2007. 
 E.17 Counterparts. This Agreement may be executed in any number of counterparts, all of which, when taken together, shall be construed as
one document. 
 E.18 Interpretation. This Agreement shall not be construed against the party preparing it, but shall be
construed as if both parties jointly prepared this Agreement and any uncertainty and ambiguity shall not be interpreted against any one party, 
 E.19 Partial Invalidity. In the event that any of the terms hereof shall be held to be invalid or unenforceable by any court of competent jurisdiction, such fact shall not affect the validity or enforceability of the remaining
terms hereof. 
  

 11 
 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 E.20 Reasonableness Standard. Except as otherwise provided herein, whenever Lender’s
consent or approval is required in this Agreement or any of the other Loan Documents, such consent or approval shall not be unreasonably withheld, conditioned or delayed. 
 E.21 Gaming Laws. Whenever in this Agreement a right is given to Lender, which right is affected by Applicable Gaming
Laws (as defined in the Stock Pledge) or the enforcement of which is subject to Applicable Gaming Laws, the enforcement of any such right shall be subject to Applicable Gaming Laws and approval, if so required, of the applicable Gaming Authorities
(as defined in the Stock Pledge). Without limiting the generality of the foregoing, Lender acknowledges that (a) Lender is subject to being called forward by the Gaming Authorities of the State of Nevada, in their discretion, for licensing or a
fording of suitability as a lender to a gaming licensee, and (b) to the extent the prior approval of the Gaming Authorities of the State of Neva is required pursuant to Applicable Gaming Laws for the exercise, operation and effectiveness of any
remedy hereunder or under any other Loan Document, or the taking of any action that may be taken by Beneficiary hereunder or under any other Loan Document, such remedy or action shall be subject to such prior approval of the Gaming Authorities of
the State of Nevada. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

  

					
	 Full House Resorts, Inc.
	 	FULL HOUSE RESORTS, INC.,
	 4670 S. Fort Apache, Suite 190
	 	a Delaware corporation
	 Las Vegas, Nevada 89147
	 		 	
		 	By:	 	 /s/ Barth F. Aaron

		 	Its:	 	Secretary
		 		 	“Borrower”
		
	 Nevada State Bank One
	 	NEVADA STATE BANK
	 W. Liberty Street
	 		 	
	 Reno, Nevada 89501
	 		 	
		 	By:	 	/s/ Richard Thomas
		 	Its:	 	Vice President
		 		 	“Lender”

  

 12 
 Hale Lane Peek Dennison and Howard 
 Attorneys and Counsellors at Law 
 Reno, Nevada 
 (775) 327-3000 

 EXHIBIT “A” 
 LEGAL DESCRIPTION 
 The land referred to herein is situated in the State of Nevada, County of CHURCHILL,
described as follows: 
 Parcels 1, 2 and 3 of the Parcel Map for James R. Peters, as trustee under the James R. Peters Family Trust Agreement recorded
March 1, 2005, under Document No. 368694, Official Records, Churchill County, Nevada.

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