Document:

Exhibit 10.33

Assessor’s Parcel No.: 162-21-210-008

PREPARED BY AND UPON

RECORDATION RETURN TO:

Fried, Frank, Harris,
Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

STATEMENTS OF PROPERTY
TAXES

ARE TO BE MAILED TO:

TSP Owner LLC

3667 Las Vegas Blvd.
South

Las Vegas, Nevada  89109

Attention: Controller

 

 

 

 

SPACE ABOVE THIS LINE
RESERVED FOR RECORDER’S USE

DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF
LEASES AND RENTS, FINANCING STATEMENT AND FIXTURE FILING

made by

TSP OWNER LLC,
 as Trustor

to

FIRST AMERICAN TITLE INSURANCE COMPANY,

as Trustee, for the benefit of

COLUMN FINANCIAL, INC., 

as Beneficiary

Dated as of November 30, 2006

TABLE OF CONTENTS

	
  ARTICLE I.

  	
  GRANTS OF SECURITY

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
  Granting Clause

  	
   

  
	
  Section 1.2.

  	
  Assignment of Rents

  	
   

  
	
  Section 1.3.

  	
  Security Agreement

  	
   

  
	
  Section 1.4.

  	
  Fixture Filing

  	
   

  
	
  Section 1.5.

  	
  Pledges of Monies held

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  DEBT AND OBLIGATIONS SECURED

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
  Debt

  	
   

  
	
  Section 2.2.

  	
  Other Obligations

  	
   

  
	
  Section 2.3.

  	
  Debt and Other Obligations

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  TRUSTOR COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
  Maintenance of Property

  	
   

  
	
  Section 3.2.

  	
  Waste

  	
   

  
	
  Section 3.3.

  	
  Payment for Labor and Materials

  	
   

  
	
  Section 3.4.

  	
  Performance of Other Agreements

  	
   

  
	
  Section 3.5.

  	
  Change of Name, Identity, Structure or Location;
  Subjection to Other Security Agreements; Locations of Places of Business and
  Chief Executive Office

  	
   

  
	
  Section 3.6.

  	
  Title

  	
   

  
	
  Section 3.7.

  	
  No Consents or Other Filings

  	
   

  
	
  Section 3.8.

  	
  Examination of Books and Records

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  OBLIGATIONS AND RELIANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
  Relationship of Trustor and Beneficiary

  	
   

  
	
  Section 4.2.

  	
  No Reliance on Beneficiary

  	
   

  
	
  Section 4.3.

  	
  No Beneficiary Obligations

  	
   

  
	
  Section 4.4.

  	
  Liens Absolute

  	
   

  
	
  Section 4.5.

  	
  Continuing Liability of Trustor

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  FURTHER ASSURANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
  Recording of Security Instrument, etc

  	
   

  
	
  Section 5.2.

  	
  Further Acts, etc

  	
   

  
	
  Section 5.3.

  	
  Changes in Tax, Debt, Credit and Documentary Stamp
  Laws

  	
   

  
	
  Section 5.4.

  	
  Severing of Mortgage

  	
   

  
				

 

 i
 

 

	
  ARTICLE VI.

  	
  DUE ON SALE/ENCUMBRANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
  Beneficiary Reliance

  	
   

  
	
  Section 6.2.

  	
  No Sale/Encumbrance

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII.

  	
  RIGHTS AND REMEDIES UPON DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
  Remedies

  	
   

  
	
  Section 7.2.

  	
  Limitation on Duty of Beneficiary in Respect of
  Collateral

  	
   

  
	
  Section 7.3.

  	
  Application of Proceeds

  	
   

  
	
  Section 7.4.

  	
  Right to Cure Defaults

  	
   

  
	
  Section 7.5.

  	
  Actions and Proceedings

  	
   

  
	
  Section 7.6.

  	
  Other Rights, Etc

  	
   

  
	
  Section 7.7.

  	
  Right to Release Any Portion of the Property

  	
   

  
	
  Section 7.8.

  	
  Violation of Laws

  	
   

  
	
  Section 7.9.

  	
  Recourse and Choice of Remedies

  	
   

  
	
  Section 7.10.

  	
  Right of Entry

  	
   

  
	
  Section 7.11.

  	
  General Authority

  	
   

  
	
  Section 7.12.

  	
  Nevada Foreclosure

  	
   

  
	
  Section 7.13.

  	
  Limitation on Foreclosure

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII.

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
  General Indemnification

  	
   

  
	
  Section 8.2.

  	
  Mortgage and/or Intangible Tax

  	
   

  
	
  Section 8.3.

  	
  ERISA Indemnification

  	
   

  
	
  Section 8.4.

  	
  Duty to Defend; Attorneys’ Fees and Other Fees and
  Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.

  	
  WAIVERS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
  Waiver of Counterclaim

  	
   

  
	
  Section 9.2.

  	
  Marshalling and Other Matters

  	
   

  
	
  Section 9.3.

  	
  Waiver of Notice

  	
   

  
	
  Section 9.4.

  	
  Waiver of Statute of Limitations

  	
   

  
	
  Section 9.5.

  	
  Survival

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE X.

  	
  EXCULPATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XII.

  	
  APPLICABLE LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 12.1.

  	
  Governing Law

  	
   

  
	
  Section 12.2.

  	
  Usury Laws

  	
   

  
	
  Section 12.3.

  	
  Provisions Subject to Applicable Law

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XIII.

  	
  DEFINITIONS

  	
   

  
				

 

 ii
 

 

	
  ARTICLE XIV.

  	
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 14.1.

  	
  No Oral Change

  	
   

  
	
  Section 14.2.

  	
  Successors and Assigns

  	
   

  
	
  Section 14.3.

  	
  Inapplicable Provisions

  	
   

  
	
  Section 14.4.

  	
  Headings, etc

  	
   

  
	
  Section 14.5.

  	
  Number and Gender

  	
   

  
	
  Section 14.6.

  	
  Subrogation

  	
   

  
	
  Section 14.7.

  	
  Entire Agreement

  	
   

  
	
  Section 14.8.

  	
  Limitation on Beneficiary’s Responsibility

  	
   

  
	
  Section 14.9.

  	
  Appointment of Collateral Agent

  	
   

  
	
  Section 14.10.

  	
  Counterparts; Effectiveness

  	
   

  
	
  Section 14.11.

  	
  Joint and Several Liability

  	
   

  
	
  Section 14.12.

  	
  Intentionally Omitted.

  	
   

  
	
  Section 14.13.

  	
  Other Collateral

  	
   

  
	
  Section 14.14.

  	
  Waiver of Appraisement, Valuation, Stay, Extension
  and Redemption Laws

  	
   

  
	
  Section 14.15.

  	
  Suits to Protect the Mortgaged Property

  	
   

  
	
  Section 14.16.

  	
  Waiver of Trial by Jury

  	
   

  
	
  Section 14.17.

  	
  Substitution of Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE XV.

  	
  STATE-SPECIFIC PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 15.1.

  	
  Principles of Construction

  	
   

  
	
  Section 15.2.

  	
  Waivers

  	
   

  
	
  Section 15.3.

  	
  Incorporated Statutory Provisions

  	
   

  
	
  Section 15.4.

  	
  Gaming Matters

  	
   

  
	
  Section 15.5.

  	
  Security Agreement

  	
   

  
	
  Section 15.6.

  	
  Future Advances

  	
   

  
	
  Section 15.7.

  	
  Additional Event of Default

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  Legal Description

  	
   

  
	
  Exhibit B

  	
  Additional Definitions

  	
   

  
					

 

 iii

DEED OF TRUST, SECURITY AGREEMENT, ASSIGNMENT OF
LEASES AND RENTS, FINANCING STATEMENT AND FIXTURE FILING (this “Security
Instrument”), dated as of November 30, 2006, made by TSP OWNER LLC, a
Delaware limited liability company, having its principal place of business c/o
OPBIZ, L.L.C., 3667 Las Vegas Blvd. South, Las Vegas, Nevada 89109,  each as trustor (collectivey, “Trustor”),
to First American Title Insurance Company, a New York corporation, having its
principal place of business at 633 Third Avenue, New York, NY 10017, as trustee
(“Trustee”), for the benefit of COLUMN FINANCIAL, INC., a Delaware
corporation, having an address at 11 Madison Avenue, New York, New York 10010,
as beneficiary (“Beneficiary”).

W I T N E S S E T H:

WHEREAS, this Security Instrument is given to secure a
loan (the “Loan”) in the maximum principal sum of up to Eight Hundred
and Twenty Million and No/100 Dollars ($820,000,000) advanced pursuant to that
certain Loan Agreement, dated as of the date hereof, between PH Fee Owner LLC
and OpBiz, L.L.C. (collectively, “Borrower”) and Beneficiary, as lender
(as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Loan Agreement”; capitalized terms not
otherwise defined herein or in Exhibit B attached hereto and made part
hereof shall have the respective meanings specified in the Loan Agreement) and
evidenced by that certain Promissory Note, dated the date hereof, made by
Borrower in favor of Beneficiary (as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, the “Note”);

WHEREAS,  Trustor
is a wholly-owned subsidiary of PH Fee Owner LLC and will derive a benefit from
the making of the Loan to Borrower;

WHEREAS, Trustor desires to secure the payment of the
Debt and the performance of all of Borrower’s obligations under the Note, the
Loan Agreement and the other Loan Documents (as herein defined); and

WHEREAS, this Security Instrument is given pursuant to
the Loan Agreement, and payment, fulfillment, and performance by Borrower of
its obligations thereunder and under the other Loan Documents are secured
hereby.

NOW THEREFORE, in consideration of the premises and
the mutual conditions contained herein, including Beneficiary’s entering into
the Loan Agreement, the receipt and legal sufficiency of which are hereby
expressly acknowledged by all parties, to secure full and complete payment and
performance of the Loan, including, without limitation, Borrower’s performance
of Borrower’s obligations under the Note, the Loan Agreement and the other Loan
Documents:

ARTICLE
I.

GRANTS OF SECURITY

Section 1.1.            Granting
Clause.  Trustor does hereby
irrevocably grant, bargain, pledge, deed, mortgage, warrant, sell, transfer,
assign, and convey unto Trustee, its successors and assigns, IN TRUST for the
benefit of Beneficiary, and their respective successors and assigns forever,
WITH POWER OF SALE AND RIGHT OF ENTRY AND POSSESSION, subject only

to those
matters constituting Permitted Encumbrances under the Loan Agreement, property,
rights, interests and estates now owned, or hereafter acquired by Trustor and
all of Trustor’s right, title and interest, now owned or hereafter acquired, in
and to the following described properties and interests and all replacements or
substitutes therefor and all products and proceeds thereof, and accessions
thereto, and whether held to be real or personal property, tangible or
intangible (collectively, the “Property”):

(a)           Land.  The real property described in Exhibit A
attached hereto and made a part hereof (the “Land”);

(b)           Additional Land.  All additional lands, estates and development
rights hereafter acquired by Trustor for use in connection with the Land and
the development of the Land and all additional lands and estates therein which may,
from time to time, by supplemental mortgage or otherwise, be expressly made
subject to the lien of this Security Instrument;

(c)           Improvements.  The buildings, structures, fixtures,
additions, enlargements, extensions, modifications, repairs, replacements and
improvements now or hereafter erected or located on the Land (collectively, the
“Improvements”);

(d)           Easements.  All easements, rights-of-way or use, rights,
strips and gores of land, streets, ways, alleys, passages, sewer rights, water,
water courses, water rights and powers, water permits, oil, gas, and other
mineral rights, air rights and development rights, and all estates, leasehold
interests, rights, titles, interests, powers, privileges, liberties,
servitudes, tenements, hereditaments and appurtenances of any nature
whatsoever, in any way now or hereafter belonging, relating or pertaining to
the Land and the Improvements (or benefiting same) and the reversions and
remainders, and all land lying in the bed of any street, road or avenue, opened
or proposed, in front of or adjoining the Land, to the center line thereof and
all the estates, rights, titles, interests, rights of dower, rights of curtesy,
property, possession, claim and demand whatsoever, both at law and in equity,
of Trustor of, in and to the Land and the Improvements and every part and
parcel thereof, with the appurtenances thereto;

(e)           Equipment.  All “equipment,” as such term is defined in
Article 9 of the Uniform Commercial Code, now owned or hereafter acquired by
Trustor, which is used at or in connection with the Improvements or the Land or
is located thereon or therein (including, but not limited to, all machinery,
equipment, furnishings, and electronic data-processing and other office
equipment now owned or hereafter acquired by Trustor and any and all additions,
substitutions and replacements of any of the foregoing), together with all
attachments, components, parts, equipment and accessories installed thereon or
affixed thereto (collectively, the “Equipment”);

(f)            Fixtures.  All Equipment now owned, or the ownership of
which is hereafter acquired, by Trustor which is so related to the Land and
Improvements forming part of the Property that it is deemed fixtures or real
property under the law of the State of Nevada, including, without limitation,
all building or construction materials intended for construction,
reconstruction, alteration or repair of or installation on the Property,
construction equipment, appliances, machinery, plant equipment, fittings,
apparatuses, fixtures and other items now or hereafter attached to, installed
in or used in connection with (temporarily or permanently) any of the
Improvements or the Land, including, but not limited to, engines, devices for
the operation of

 2
 

pumps, pipes,
plumbing, call and sprinkler systems, fire extinguishing apparatuses and
equipment, heating, ventilating, incinerating, electrical, air conditioning and
air cooling equipment and systems, gas and electric machinery, appurtenances
and equipment, pollution control equipment, security systems, disposals,
dishwashers, refrigerators and ranges, recreational equipment and facilities of
all kinds, and water, gas, electrical, storm and sanitary sewer facilities,
utility lines and equipment (whether owned individually or jointly with others,
and, if owned jointly, to the extent of Trustor’s interest therein) and all
other utilities whether or not situated in easements, all water tanks, water
supply, water power sites, fuel stations, fuel tanks, fuel supply, and all
other structures, together with all accessions, appurtenances, additions,
replacements, betterments and substitutions for any of the foregoing and the
proceeds thereof (collectively, the “Fixtures”).

(g)           Personal Property.  All furniture, furnishings, objects of art,
machinery, goods, tools, supplies, appliances, general intangibles, contract
rights, accounts, accounts receivable, franchises, licenses, certificates and
permits, and all other personal property of any kind or character whatsoever as
defined in and subject to the provisions of the Uniform Commercial Code,
whether tangible or intangible, other than Fixtures, which are now or hereafter
owned by Trustor and which are located within or about the Land or the
Improvements, together with all accessories, replacements and substitutions
thereto or therefor and the proceeds thereof (collectively, the “Personal
Property”), and the right, title and interest of Trustor in and to any of
the Personal Property which may be subject to any security interests (as
defined in the Uniform Commercial Code) superior in lien to the lien of this
Security Instrument, and all proceeds and products of the above;

(h)           Leases and Rents.  All leases, subleases or subsubleases,
lettings, licenses, concessions or other agreements (whether written or oral)
pursuant to which any Person is granted a possessory interest in, or right to
use or occupy all or any portion of the Land and the Improvements, and every
modification, amendment or other agreement relating to such leases, subleases,
subsubleases, or other agreements entered into in connection with such leases,
subleases, subsubleases, or other agreements and every guarantee of the
performance and observance of the covenants, conditions and agreements to be
performed and observed by the other party thereto, heretofore or hereafter
entered into (collectively, the “Leases”), whether before or after the
filing by or against Trustor of any petition for relief under 11 U.S.C.
§ 101 et seq., as the same may be amended from time to time (the “Bankruptcy
Code”), and all right, title and interest of Trustor, its successors and
assigns therein and thereunder, including, without limitation, cash or
securities deposited thereunder to secure the performance by the lessees of
their obligations thereunder and all rents, additional rents, revenues, issues
and profits (including all oil and gas or other mineral royalties and bonuses)
from the Land and the Improvements whether paid or accruing before or after the
filing by or against Trustor of any petition for relief under the Bankruptcy
Code (collectively, the “Rents”) and all proceeds from the sale or other
disposition of the Leases and the right to receive and apply the Rents to the
payment of the Debt;

(i)            Condemnation
Awards.  All Awards which may
heretofore and hereafter be made with respect to the Property, whether from the
exercise of the right of eminent domain (including, but not limited to, any
transfer made in lieu of or in anticipation of the exercise of the right), or
for a change of grade, or for any other injury to or decrease in the value of
the Property;

 3
 

(j)            Insurance
Proceeds.  All Insurance Proceeds in
respect of the Property under any Policies covering the Property, including,
without limitation, the right to receive and apply the proceeds of any Policies,
judgments, or settlements made in lieu thereof, in connection with a Casualty
to the Property;

(k)           Tax Certiorari.  All refunds, rebates or credits in connection
with reduction in Taxes or Other Charges charged against the Property;

(l)            Conversion.  All proceeds of the conversion, voluntary or
involuntary, of any of the foregoing including, without limitation, Insurance
Proceeds and Awards, into cash or liquidation claims;

(m)          Rights.  The right, in the name and on behalf of
Trustor, to appear in and defend any action or proceeding brought with respect
to the Property and to commence any action or proceeding to protect the
interest of Beneficiary in the Property;

(n)           Agreements.  All agreements, contracts, certificates,
instruments, franchises, permits, licenses, plans, specifications and other
documents, now or hereafter entered into, and all rights therein and thereto,
respecting or pertaining to the use, occupation, construction, management or
operation of the Land and any part thereof or any Improvements or any business
or activity conducted in, at or on the Land and any part thereof or any
Improvements and all right, title and interest of Trustor therein and
thereunder, including, without limitation, the right, upon the happening of any
default hereunder, to receive and collect any sums payable to Trustor
thereunder;

(o)           Intellectual
Property.  All Trademark Collateral,
Copyright Collateral, Patent Collateral, goodwill, books and records and all
other General Intangibles relating to or used in connection with the ownership,
management, operation, maintenance or renovation of the Property; and

(p)           Other Rights.  Any and all other rights of Trustor in and to
the items set forth in paragraphs (a) through (o) above.

AND without limiting any of the other provisions of
this Security Instrument, Trustor hereby expressly grants to Beneficiary, as
secured party, a security interest in the portion of the Property which is or
may be subject to the provisions of the Uniform Commercial Code which are
applicable to secured transactions; it being understood and agreed that the
Improvements and Fixtures are part and parcel of the Land (the Land, the
Improvements and the Fixtures collectively referred to as the “Real Property”)
appropriated to the use thereof and, whether affixed or annexed to the Real
Property or not, shall for the purposes of this Security Instrument be deemed
conclusively to be real estate and mortgaged hereby.

Section 1.2.            Assignment of Rents. 
Trustor hereby absolutely and unconditionally assigns to Beneficiary all
of Trustor’s right, title and interest in and to all current and future Leases
and Rents; it being intended by Trustor that this assignment constitutes a
present, absolute assignment and not an assignment for additional security
only.  Nevertheless, subject to the terms
of the Assignment of Leases and Section 7.1(h) of this Security
Instrument, Beneficiary grants to Trustor a revocable license to collect,
receive, use and enjoy the Rents, and

 4
 

Trustor shall
hold the Rents, or a portion thereof sufficient to discharge all current sums
due on the Debt, for use in the payment of such sums.

Section 1.3.            Security Agreement. 
This Security Instrument is both a real property mortgage and a “security
agreement” within the meaning of the Uniform Commercial Code.  The Property includes both real and personal
property and all other rights and interests, whether tangible or intangible in
nature, of Trustor in the Property. 
Trustor hereby expressly grants to Beneficiary, as security for the
Obligations (hereinafter defined), a security interest in the Fixtures, the
Equipment, the Personal Property, and any other Property (to the extent such
other Property is not real property) to the full extent that the Fixtures, the
Equipment, the Personal Property and any other Property (to the extent such
other Property is not real property) may be subject to the Uniform Commercial
Code (said portion of the Property so subject to the Uniform Commercial Code
and not constituting real property being called the “Collateral”).  If an Event of Default shall occur and be
continuing, Beneficiary, in addition to any other rights and remedies which it
may have, shall have and may exercise immediately and without demand, any and
all rights and remedies granted to a secured party upon default under the
Uniform Commercial Code, including, without limiting the generality of the
foregoing, the right to take possession of the Collateral or any part thereof,
and to take such other measures as Beneficiary may deem necessary for the care,
protection and preservation of the Collateral. 
Upon request or demand of Beneficiary after the occurrence and during
the continuance of an Event of Default, Trustor shall, at its expense, assemble
the Collateral and make it available to Beneficiary at a convenient place (at
the Land if tangible property) reasonably acceptable to Beneficiary.  Trustor shall pay to Beneficiary on demand
any and all expenses, including reasonable legal expenses and attorneys’ fees,
incurred or paid by Beneficiary in protecting its interest in the Collateral
and in enforcing its rights hereunder with respect to the Collateral after the
occurrence and during the continuance of an Event of Default.  Any notice of sale, disposition or other intended
action by Beneficiary with respect to the Collateral sent to Trustor in
accordance with the provisions hereof at least 10 business days prior to such
action, shall, except as otherwise provided by applicable law, constitute
reasonable notice to Trustor.  The
proceeds of any disposition of the Collateral, or any part thereof, may, except
as otherwise required by applicable law, be applied by Beneficiary to the
payment of the Debt in such priority and proportions as Beneficiary in its
discretion shall deem proper.  Trustor
hereby warrants Trustor’s (debtor’s) principal place of business and State of
organization are as set forth on page one hereof.  The address of Beneficiary (secured party) is
as set forth on page one hereof.

Section 1.4.            Fixture
Filing.  This Security Instrument constitutes and
shall be effective as Financing Statement filed as a fixture filing from the
date of recording under Sections 104.9334 and 104.9502 of the Nevada Uniform
Commercial Code (the “UCC”).  For
such purposes, (i) the “debtor” is Trustor and its address is the address given
for it in the initial paragraph of this Security Instrument; (ii) the “secured
party” is Beneficiary, and its address for the purpose of obtaining information
is the address given for it in the initial paragraph of this Security
Instrument; (iii) the real estate to which the fixtures are or are to become
attached is Trustor’s interest in the Real Property and is legally described in
Exhibit A attached hereto; and (iv) the record owner of such real estate
is Trustor.

Section 1.5.            Pledges of Monies Held. 
Without limiting the generality of the foregoing, Trustor hereby pledges
to Beneficiary any and all monies now or hereafter held by Beneficiary

 5
 

or on behalf
of Beneficiary, including, without limitation, any sums deposited in the
Lockbox Account, the Cash Management Account, the Reserve Funds and Net
Proceeds, as additional security for the Obligations until expended or applied
as provided in this Security Instrument.

CONDITIONS TO GRANT

TO HAVE AND TO HOLD the Property, together with all
and singular the rights, hereditaments and appurtenances in anywise
appertaining or belonging thereto, unto Trustee and its successors and assigns,
in trust for the benefit of Beneficiary hereinafter set forth, forever,

ARTICLE
II.

DEBT AND OBLIGATIONS SECURED

Section 2.1.            Debt.  This Security
Instrument and the grants, assignments and transfers made in Article 1 are
given for the purpose of securing the full and timely payment of the Debt
(including, without limitation, any interest which accrues after the commencement
of any bankruptcy or insolvency proceeding with respect to Trustor or Borrower,
whether or not allowed or allowable as a claim under any bankruptcy or
insolvency proceeding).

Section 2.2.            Other Obligations. 
This Security Instrument and the grants, assignments and transfers made
in Article 1 are also given for the purpose of securing the full and
timely payment and performance of the following (collectively, the “Other Obligations”):

(a)           the
performance of all other obligations of Trustor contained herein;

(b)           the
performance of each obligation of Borrower contained in the Loan Agreement and
any other Loan Document; and

(c)           the
performance of each obligation of Trustor or Borrower contained in any renewal,
extension, amendment, modification, consolidation, change of, or substitution
or replacement for, all or any part of the Note, the Loan Agreement or any
other Loan Document.

Section 2.3.            Debt and Other Obligations.  Borrower’s
obligations for the payment of the Debt and Borrower’s and Trustor’s obligations
for the payment and performance of the Other Obligations (including, without
limitation, any interest which accrues after the commencement of any bankruptcy
or insolvency proceeding with respect to Trustor or Borrower, whether or not
allowed or allowable as a claim under any bankruptcy or insolvency proceeding),
in each case whether now or hereafter due, owing or incurred in any manner,
whether direct or indirect, actual or contingent, whether incurred solely or
jointly with any other Person and whether as principal or surety (and including
all liabilities in connection with any notes, bills or other instruments
accepted by Beneficiary in connection therewith), together in each case with
all renewals, modifications, consolidations or extensions thereof, shall be
referred to collectively herein as the “Obligations”.

ARTICLE
III.

TRUSTOR COVENANTS

Trustor represents, warrants, covenants and agrees
that:

 6
 

Section 3.1.            Maintenance of Property.  Trustor shall cause the Property to be
maintained in a good and safe condition and repair.  The Improvements, the Fixtures, the Equipment
and the Personal Property shall not be removed, demolished or materially
altered (except for normal replacement of the Fixtures, the Equipment or the
Personal Property, tenant finish and refurbishment of the Improvements) without
the consent of Beneficiary or as otherwise permitted pursuant to the Loan
Agreement.  Trustor shall promptly
repair, replace or rebuild any part of the Property which may be destroyed by
any Casualty or become damaged, worn or dilapidated or which may be affected by
any Condemnation, and shall complete and pay for any structure at any time in
the process of construction or repair on the Land.

Section 3.2.            Waste.  Trustor shall not commit or suffer any waste
of the Property or make any change in the use of the Property which will in any
way materially increase the risk of fire or other hazard arising out of the
operation of the Property, or take any action that might invalidate or allow
the cancellation of any Policy, or do or permit to be done thereon anything
that may in any way materially impair the value of the Property or the security
of this Security Instrument.  Trustor
will not, without the prior written consent of Beneficiary, permit any drilling
or exploration for or extraction, removal, or production of any minerals from
the surface or the subsurface of the Land, regardless of the depth thereof or
the method of mining or extraction thereof.

Section 3.3.            Payment
for Labor and Materials.  (a)  Trustor will promptly pay when due all bills
and costs for labor, materials, and specifically fabricated materials (“Labor
and Material Costs”) incurred by it in connection with the Property and
never permit to exist beyond the due date thereof in respect of the Property or
any part thereof any lien or security interest, even though inferior to the
liens and the security interests hereof, and in any event never permit to be
created or exist in respect of the Property or any part thereof any other or
additional lien or security interest other than the liens or security interests
hereof except for the Permitted Encumbrances. 
Trustor shall record (and cause all of those claiming by, through or
under Trustor to record) notices of non-responsibility and take (or cause to be
taken) such further measures as required under NRS §§ 108.234, 2403, 2407
to prevent liens from attaching to the Property as a result of any labor
performed at or materials supplied to the Property.

(b)           After
prior written notice to Beneficiary, Trustor, at its own expense, may contest
by appropriate legal proceeding, promptly initiated and conducted in good faith
and with due diligence, the amount or validity or application in whole or in
part of any of the Labor and Material Costs; provided, that (i) no Event
of Default has occurred and is continuing under the Loan Agreement, the Note,
this Security Instrument or any of the other Loan Documents, (ii) Trustor is
permitted to do so under the provisions of any other mortgage, deed of trust or
deed to secure debt affecting the Property, (iii) such proceeding shall suspend
the collection of the Labor and Material Costs from Trustor and from the
Property or Trustor shall have paid all of the Labor and Material Costs under
protest, (iv) such proceeding shall be permitted under and be conducted in
accordance with the provisions of any other instrument to which Trustor is
subject and shall not constitute a default thereunder, (v) neither the Property
nor any part thereof or interest therein will be in danger of being sold,
forfeited, terminated, canceled or lost, and (vi) Trustor shall have furnished
the security as may be required in the proceeding, or as may be reasonably
requested by Beneficiary, to insure the payment of any contested Labor and
Material Costs, together with all interest and penalties thereon.

 7
 

Section 3.4.            Performance
of Other Agreements.  Trustor shall
observe and perform each and every term, covenant and provision to be observed
or performed by Trustor pursuant to any agreement or recorded instrument
affecting or pertaining to the Property and any amendments, modifications or
changes thereto.

Section 3.5.            Change of Name, Identity, Structure or
Location; Subjection to Other Security Agreements; Locations of Places of
Business and Chief Executive Office. 
Trustor shall not change its name, identity (including its trade name or
names), structure or location (determined as provided in Section 9-307 of the
UCC) in any manner, and shall not become bound, as provided in Section 9-203(d)
of the UCC, by a security agreement entered into by another Person, in each
case unless it shall have given Beneficiary not less than 30 days’ prior notice
thereof.  Trustor shall not in any event
change the location of its place or places of business, its chief executive
office or any Collateral or its name, identity, structure or location
(determined as provided in Section 9-307 of the UCC), or become bound, as
provided in Section 9-203(d) of the UCC, by a security agreement entered into
by another Person, if such change would cause the Security Interests in any
Collateral to lapse or cease to be perfected unless Trustor has taken on or
before the date of lapse all actions necessary to ensure that the Security
Interests in the Collateral does not lapse or cease to be perfected.

Section 3.6.            Title.  Trustor has good, marketable and insurable
fee simple title to the real property comprising part of the Property, and
Trustor is the beneficial owner of and has good title to the balance of such
Property, in each case free and clear of all Liens whatsoever except Permitted
Encumbrances.  The Permitted Encumbrances
in the aggregate do not materially and adversely affect the value, operation or
use of the Property.  Other than this
Security Instrument, financing statements or other similar or equivalent
documents or instruments with respect to the security interests purported to be
granted hereby (the “Security Interests”)  and Permitted Encumbrances, no financing statement, deed of
trust, security agreement or similar or equivalent document or instrument
covering all or any part of the Collateral is on file or of record in any
jurisdiction in which such filing or recording would be effective to perfect a
Lien on such Collateral.  The Collateral
is not in the possession or control of any Person asserting any claim thereto
or security interest therein, except that Beneficiary or its nominee, custodian
or a securities intermediary acting on its behalf may have possession and/or
control of the Collateral as contemplated hereby.  This Security Instrument, when properly
recorded in the appropriate records, will create (a) a valid, perfected first
priority Lien on the Property, subject only to Permitted Encumbrances and (b) a
valid perfected first priority security interest in and to, and a valid
perfected first priority collateral assignment of, all Collateral, all in
accordance with the terms hereof and thereof, in each case subject only to any
applicable Permitted Encumbrances.  There
are no claims for payment for work, labor or materials affecting the Property
which are past due and are or may become a Lien prior to, or of equal priority
with, the Liens created by this Security Instrument unless such claims for
payments are being contested in accordance with the terms and conditions of this
Security Instrument.  Trustor is not and
will not become a party to or otherwise be bound by any agreement, other than
this Security Instrument, which restricts in any manner the rights of
Beneficiary or any other present or future holder of the Collateral with
respect thereto.

Section 3.7.            No Consents or Other Filings.  No consent of any other Person (including,
without limitation, any member or creditor of Trustor or any of its
subsidiaries) and no order,

 8
 

consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by any Governmental Authority is
required to be obtained by Trustor in connection with the execution, delivery
or performance of this Security Instrument, or to perfect or maintain the
perfection and intended priority of the Liens and Security Interests of this
Security Instrument, except for (a) any such order, consent, approval, license
or authorization which has been obtained prior to the date hereof, (b)
recordation of this Security Instrument in the Clark County Recorder’s Office
and (c) filing of a UCC-1 Financing Statement with the office of the
Secretary of State of the State of Delaware. 
No such order, consent, approval, license, authorization, validation,
filing, recording, registration or exemption is required to be obtained by
Trustor in connection with the exercise of the rights and remedies of
Beneficiary pursuant to this Security Instrument, except as may be required in
connection with the disposition of the Collateral by laws affecting the
offering and sale of securities generally.

Section 3.8.            Examination of Books and Records.  With respect to the
books and records of Trustor, Beneficiary shall have the rights set forth in
Section 5.2.11(e) of the Loan Agreement.

ARTICLE
IV.

OBLIGATIONS AND RELIANCES

Section 4.1.            Relationship of Trustor and Beneficiary.  The relationship between Trustor and
Beneficiary is solely that of debtor and creditor, and Beneficiary has no
fiduciary or other special relationship with Trustor, and no term or condition
of the Loan Agreement, the Note, this Security Instrument and the other Loan
Documents shall be construed so as to deem the relationship between Trustor and
Beneficiary to be other than that of debtor and creditor.

Section 4.2.            No Reliance on Beneficiary.  The general partners, members, principals and
(if Trustor is a trust) beneficial owners of Trustor are experienced in the
ownership and operation of properties similar to the Property, and Trustor and
Beneficiary are relying solely upon such expertise and business plan in
connection with the ownership and operation of the Property.  Trustor is not relying on Beneficiary’s
expertise, business acumen or advice in connection with the Property.

Section 4.3.            No Beneficiary Obligations.  (a)  Notwithstanding
the provisions of Section 1.1(h) and Section 1.1(n) or Section
1.2, Beneficiary is not undertaking the performance of (i) any
obligations under the Leases or (ii) any obligations with respect to such
agreements, contracts, certificates, instruments, franchises, permits,
trademarks, licenses and other documents.

(b)           By
accepting or approving anything required to be observed, performed or fulfilled
or to be given to Beneficiary pursuant to this Security Instrument, Beneficiary
shall not be deemed to have warranted, consented to, or affirmed the
sufficiency, the legality or effectiveness of same, and such acceptance or
approval thereof shall not constitute any warranty or affirmation with respect
thereto by Beneficiary.

Section 4.4.            Liens Absolute.  All rights of Beneficiary, all Liens and
security interests hereunder and all obligations of Trustor or Borrower
hereunder are unconditional and absolute

 9
 

and independent and separate from any other security for or guaranty of
the Obligations, whether executed by Trustor or any other Person.  Without limiting the generality of the
foregoing, the obligations of Trustor hereunder shall not be released,
discharged or otherwise affected or impaired by:

(a)           any
extension, renewal, settlement, compromise, acceleration, waiver or release in
respect of any obligation of Trustor under any Loan Documents or any other
agreement or instrument evidencing or securing any Obligation, by operation of
law or otherwise;

(b)           any
change in the manner, place, time or terms of payment of any Obligation or any
other amendment, supplement or modification to any Loan Documents or any other
agreement or instrument evidencing or securing any Obligation;

(c)           any
release, non-perfection or invalidity of any direct or indirect security for
any Obligation, any sale, exchange, surrender, realization upon, offset against
or other action in respect of any direct or indirect security for any
Obligation or any release of any other obligor in respect of any Obligation;

(d)           any
change in the existence, structure or ownership of Trustor, Borrower, any
Guarantor or any other Person, or any insolvency, bankruptcy, reorganization,
arrangement, readjustment, composition, liquidation or other similar proceeding
affecting Trustor, any Guarantor or any other Person, or their assets or any
resulting disallowance, release or discharge of all or any portion of any
Obligation;

(e)           the
existence of any claim, set-off or other right which Trustor, Borrower, any
Guarantor or any other Person, may have at any time against Beneficiary or any
other Person, whether in connection herewith or any unrelated transaction; provided,
that nothing herein shall prevent the assertion of any such claim by separate
suit or compulsory counterclaim;

(f)            any
invalidity or unenforceability relating to or against Trustor, Borrower, any
Guarantor or any other Person, for any reason of any Loan Documents or any
other agreement or instrument evidencing or securing any Obligation or any
provision of applicable law or regulation purporting to prohibit the payment by
Trustor, Borrower, any Guarantor or any other Person, of any Obligation;

(g)           any
failure by Beneficiary: (i) to file or enforce a claim against Trustor,
Borrower, any Guarantor or any other Person, or its estate (in a bankruptcy or
other proceeding); (ii) to give notice of the existence, creation or incurrence
by Trustor or Borrower of any new or additional indebtedness or obligation
under or with respect to the Obligations; (iii) to commence any action against
Trustor, Borrower, any Guarantor or any other Person; (iv) to disclose to
Trustor, Borrower, any Guarantor or any other Person, any facts which such
Beneficiary may now or hereafter know with regard to Trustor; or (v) to proceed
with due diligence in the collection, protection or realization upon any
collateral securing the Obligations;

(h)           any
direction as to application of payment by Trustor or any other Person;

 10

(i)            any subordination
by Beneficiary of the payment of any Obligation to the payment of any other
liability (whether matured or unmatured) of Trustor to its creditors;

(j)            any act or failure
to act by Beneficiary under this Security Instrument or otherwise which may
deprive Trustor, Borrower, any Guarantor or any other Person, of any right to
subrogation, contribution or reimbursement against Trustor or any right to
recover full indemnity for any payments made in respect of the Obligations; or

(k)           any other act or
omission to act or delay of any kind by Trustor or Beneficiary or any other
Person or any other circumstance whatsoever which might, but for the provisions
of this clause, constitute a legal or equitable discharge of Trustor’s
obligations hereunder.

Trustor
has irrevocably and unconditionally delivered this Security Instrument to
Beneficiary, and the failure by any other Person to sign this Security
Instrument or a pledge agreement similar to this Security Instrument or
otherwise shall not discharge the obligations of Trustor hereunder.

Section 4.5.            Continuing Liability of Trustor.  The Security Interests are granted as
security only and shall not subject Beneficiary to, or transfer or in any way
affect or modify, any obligation or liability of Trustor with respect to any of
the Collateral or any transaction in connection therewith.

ARTICLE V.

FURTHER ASSURANCES

Section 5.1.            Recording of Security Instrument, etc.  Trustor forthwith upon the execution and
delivery of this Security Instrument and thereafter, from time to time, will
cause this Security Instrument and any of the other Loan Documents creating a
Lien or security interest or evidencing the Lien hereof upon the Property and
each instrument of further assurance to be filed, registered or recorded in
such manner and in such places as may be required by any present or future law
in order to publish notice of and fully to protect and perfect the Lien or
security interest hereof upon, and the interest of Beneficiary in, the
Property.  Trustor will pay all taxes,
filing, registration or recording fees, and all expenses incident to the
preparation, execution, acknowledgment and/or recording of this Security
Instrument, any deed of trust or mortgage supplemental hereto, any security
instrument with respect to the Property and any instrument of further
assurance, and any modification or amendment of the foregoing documents, and
all federal, state, county and municipal taxes, duties, imposts, assessments
and charges arising out of or in connection with the execution and delivery of
this Security Instrument, any deed of trust or mortgage supplemental hereto,
any security instrument with respect to the Property or any instrument of
further assurance, and any modification or amendment of the foregoing documents,
except where prohibited by law so to do.

Section 5.2.            Further Acts, etc.  Trustor will, at the cost of Trustor, and
without expense to Beneficiary, do, execute, acknowledge and deliver all
further acts, deeds, conveyances, deeds of trust, mortgages, assignments,
notices of assignments, transfers and assurances as Beneficiary shall, from
time to time, reasonably require, for the better assuring, conveying,
assigning, 

 11
 

transferring,
and confirming unto Beneficiary the property and rights hereby mortgaged,
deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned,
warranted and transferred or intended now or hereafter so to be, or which
Trustor may be or may hereafter become bound to convey or assign to
Beneficiary, or for carrying out the intention or facilitating the performance
of the terms of this Security Instrument or for filing, registering or
recording this Security Instrument, or for complying with all Legal
Requirements.  Trustor will, from time to
time at its expense at the reasonable request of Beneficiary and in such manner
and form as Beneficiary may require, execute, deliver, file and record any
financing statement, specific assignment, instrument, document, agreement or
other paper and take any other action (including, without limitation, any
filings of financing or continuation statements under the UCC or the Uniform
Commercial Code of the States of Delaware and Nevada) that from time to time
may be necessary or desirable, or that Beneficiary may request, in order to
create, preserve, perfect, confirm or validate the Security Interests or to
enable Beneficiary to obtain the full benefit of this Security Instrument or to
exercise and enforce  any of its rights,
powers and remedies created hereunder or under applicable law with respect to
any of the Collateral.  To the extent
permitted by applicable law, Trustor hereby authorizes Beneficiary to file, in
the name of Trustor or otherwise and without the signature or other separate
authorization or authentication of Trustor appearing thereon, such financing
statements or continuation statements as Beneficiary in its sole discretion may
deem necessary or appropriate to perfect or maintain the perfection of the
Security Interests.  Trustor agrees that
a carbon, photographic, photostatic or other reproduction of this Security
Instrument is sufficient as a financing statement.  Trustor also agrees that any financing
statements or continuation statements may describe the collateral as “all
assets” or “all personal property” or words to similar effect and which may be
filed in Nevada, Delaware or other jurisdictions as Beneficiary in its sole
discretion may deem necessary or appropriate to perfect or maintain the
perfection of the Security Interests. 
Trustor shall pay the costs of, or incidental to, any recording or
filing of any such financing or continuation statements.

Section 5.3.            Changes in Tax, Debt, Credit and
Documentary Stamp Laws. 
(a)  If any law is enacted or
adopted or amended after the date of this Security Instrument which deducts the
Debt from the value of the Property for the purpose of real estate taxation or
which imposes a tax, either directly or indirectly, on the Debt or Beneficiary’s
interest in the Property in substitute for real property taxation, Trustor will
pay the tax, with interest and penalties thereon, if any.  If Beneficiary is advised by competent
counsel chosen by it that the payment of tax by Trustor would be unlawful or
taxable to Beneficiary or unenforceable or provide the basis for a defense of
usury then Beneficiary shall have the option by written notice of not less than
120 days to declare the Debt immediately due and payable.

(b)           Trustor will not
claim or demand or be entitled to any credit or credits on account of the Debt
for any part of the Taxes or Other Charges assessed against the Property, or
any part thereof, and no deduction shall otherwise be made or claimed from the
assessed value of the Property, or any part thereof, for real estate tax
purposes by reason of this Security Instrument or the Debt.  If such claim, credit or deduction shall be
required by law, Beneficiary shall have the option, by written notice of not
less than 120 days, to declare the Debt immediately due and payable.

(c)           If at any time the
United States of America, any State thereof or any subdivision of any such
State shall require revenue or other stamps to be affixed to the Note, this 

 12
 

Security
Instrument, or any of the other Loan Documents or impose any other tax or
charge on the same, Trustor will pay for the same, with interest and penalties
thereon, if any.

Section 5.4.            Severing of Mortgage.  This Security Instrument and the Note shall,
at any time until the same shall be fully paid and satisfied, at the sole
election of Beneficiary, be severed, split or divided into two or more notes
and two or more security instruments in such denominations as Beneficiary shall
determine in its sole discretion, each of which shall cover all or a portion of
the Property to be more particularly described therein.  To that end, Trustor, upon written request of
Beneficiary, at Trustor’s cost and expense, shall execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered by the then owner
of the Property, to Beneficiary and/or its designee or designees, substitute
notes and security instruments in such principal amounts, aggregating not more
than the then unpaid principal amount of this Security Instrument, (provided
that the severance of such instruments shall not modify or amend any material
economic term of the Loan) and containing terms, provisions and clauses
substantially identical to those contained herein and in the Note, and such
other documents and instruments as may be required by Beneficiary.

ARTICLE VI.

DUE ON SALE/ENCUMBRANCE

Section 6.1.            Beneficiary
Reliance.  Trustor acknowledges that
Beneficiary has examined and relied on the experience of Trustor and its
general partners, members, principals and (if Trustor is a trust) beneficial
owners in owning and operating properties such as the Property in agreeing to
make the Loan, and will continue to rely on Trustor’s ownership of the Property
as a means of maintaining the value of the Property as security for repayment
of the Debt and the performance of the Other Obligations.  Trustor acknowledges that Beneficiary has a
valid interest in maintaining the value of the Property so as to ensure that,
should Trustor default in the repayment of the Debt or the performance of the
Other Obligations, Beneficiary can recover the Debt by a sale of the Property.

Section 6.2.            No Sale/Encumbrance.  Neither Trustor nor any Restricted Party
shall cause, permit or suffer any Transfer to occur other than as expressly
permitted pursuant to the terms of the Loan Agreement.

ARTICLE VII.

RIGHTS AND REMEDIES UPON DEFAULT

Section 7.1.            Remedies.  Upon the occurrence and during the
continuance of any Event of Default, Trustor agrees that Beneficiary may, to
the extent permitted by applicable law, take such action, without notice or
demand, as it deems advisable to protect and enforce its rights against Trustor
and in and to the Property, including, but not limited to, the following
actions, each of which may be pursued concurrently or otherwise, at such time
and in such order as Beneficiary may determine, in its sole discretion, without
impairing or otherwise affecting the other rights and remedies of Beneficiary:

(a)           institute
proceedings, judicial or otherwise, for the complete foreclosure of this
Security Instrument under any applicable provision of law, in which case the
Property or any

 13
 

interest
therein may be sold for cash or upon credit in one or more parcels or in
several interests or portions and in any order or manner;

(b)           with or without
entry, to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this
Security Instrument for the portion of the Debt then due and payable, subject
to the continuing Lien and security interest of this Security Instrument for
the balance of the Debt not then due, unimpaired and without loss of priority;

(c)           sell for cash or
upon credit the Property or any part thereof and all estate, claim, demand,
right, title and interest of Trustor therein and rights of redemption thereof,
pursuant to power of sale or otherwise, at one or more sales, as an entirety or
in parcels, at such time and place, upon such terms and after such notice
thereof as may be required or permitted by law;

(d)           institute actions,
suits or proceedings (i) in equity for the specific performance of any
covenant, condition or agreement contained herein, or (ii) as Beneficiary
otherwise may deem appropriate to protect and enforce the rights vested in
Beneficiary by this Security Instrument;

(e)           recover judgment on
the Note either before, during or after any proceedings for the enforcement of
this Security Instrument or the other Loan Documents;

(f)            apply for the
appointment of a receiver, trustee, liquidator or conservator of the Property,
without notice and without regard for the adequacy of the security for the Debt
and without regard for the solvency of Trustor, Borrower, any guarantor,
indemnitor with respect to the Loan or of any Person liable for the payment of
the Debt;

(g)           the license granted
to Trustor under Section 1.2 shall be automatically revoked, and, subject
to any applicable Legal Requirements, Beneficiary may enter into or upon the
Property, either personally or by its agents, nominees or attorneys and
dispossess Trustor and its agents and servants therefrom, without liability for
trespass, damages or otherwise and exclude Trustor and its agents or servants
wholly therefrom, and take possession of all books, records and accounts
relating thereto and Trustor agrees to surrender possession of the Property and
of such books, records and accounts to Beneficiary upon demand, and thereupon
Beneficiary may (i) use, operate, manage, control, insure, maintain, repair,
restore and otherwise deal with all and every part of the Property and conduct
the business thereat; (ii) complete any construction on the Property in such
manner and form as Beneficiary deems advisable; (iii) make alterations,
additions, renewals, replacements and improvements to or on the Property; (iv)
exercise all rights and powers of Trustor with respect to the Property, whether
in the name of Trustor or otherwise, including, without limitation, the right
to make, cancel, enforce or modify Leases, obtain and evict tenants, and
demand, sue for, collect and receive all Rents; (v) require Trustor to pay
monthly in advance to Beneficiary, or any receiver appointed to collect Rents,
the fair and reasonable rental value for the use and occupation of such part of
the Property as may be occupied by Trustor; (vi) require Trustor to vacate and
surrender possession of the Property to Beneficiary or to such receiver and, in
default thereof, Trustor may be evicted by summary proceedings or otherwise;
and (vii) apply the receipts from the Property to the payment of the

 14
 

Debt, in such
order, priority and proportions as Beneficiary shall deem appropriate in its
sole discretion after deducting therefrom all expenses (including reasonable
attorneys’ fees) incurred in connection with the aforesaid operations and all
amounts necessary to pay the Taxes, Other Charges, Insurance Premiums and other
expenses in connection with the Property, as well as just and reasonable
compensation for the services of Beneficiary, its counsel, agents and
employees;

(h)           exercise any and all
rights and remedies granted to a secured party upon default under the Uniform
Commercial Code, including, without limiting the generality of the foregoing:
(i) the right to take possession of the Fixtures, the Equipment, the Personal
Property, any other Collateral or any part thereof, and to take such other
measures as Beneficiary may deem necessary for the care, protection and
preservation of the Fixtures, the Equipment, the Personal Property, any other
Collateral or any part thereof and (ii) request Trustor at its expense to
assemble the Fixtures, the Equipment, the Personal Property, any other
Collateral or any part thereof and make it available to Beneficiary at a
convenient place acceptable to Beneficiary;

(i)            pursue such other
remedies as Beneficiary may have under applicable law;

(j)            apply the
undisbursed balance of any Net Proceeds Deficiency deposit, together with
interest thereon, to the payment of the Debt in such order, priority and
proportions as Beneficiary shall deem to be appropriate in its discretion; or

(k)           collect, receive,
appropriate and realize upon the Collateral and/or sell, assign, give an option
or options to purchase or otherwise dispose of and deliver the Collateral (or
contract to do so) or any part thereof in one or more parcels (which need not
be in round lots) at public or private sale or at broker’s board or on any
securities exchange, at any office of Beneficiary or elsewhere in such manner
as is commercially reasonable and as Beneficiary may deem best, for cash, on
credit or for future delivery without assumption of any credit risk and at such
price or prices as Beneficiary may deem satisfactory.  Beneficiary shall give Trustor not less than
10 days’ prior notice of the time and place of any sale or other intended
disposition of any of the Collateral, except any Collateral which threatens to
decline speedily in value or is of a type customarily sold on a recognized
market.  Any such notice shall (i) in the
case of a public sale, state the time and place fixed for such sale, (ii) in
the case of a sale at a broker’s board or on a securities exchange, state the
board or exchange at which such sale is to be made and the day on which the
Collateral, or the portion thereof being sold, will first be offered for sale,
(iii) in the case of a private sale, state the day after which such sale may be
consummated, (iv) contain the information specified in Section 9-613 of the
UCC, (v) be authenticated and (vi) be sent to the parties required to be
notified pursuant to Section 9-611(c) of the UCC; provided, that if
Beneficiary fails to comply with this sentence in any respect, its liability
for such failure shall be limited to the liability (if any) imposed on it as a
matter of law under the UCC.  Beneficiary
and Trustor agree that such notice constitutes reasonable notification within
the meaning of Section 9-611 of the UCC. 
Except as otherwise provided herein, Trustor hereby waives, to the
extent permitted by applicable law, notice and judicial hearing in connection
with Beneficiary’s taking possession or disposition of any of the
Collateral.  Beneficiary may be the
purchaser of any or all of the Collateral so sold at any public sale (or, if
the Collateral is of a type customarily sold in a recognized market or is of a
type which is the subject of widely distributed standard price quotations, at
any private sale).  Trustor will execute
and deliver such documents and take such other action as Beneficiary deems
necessary or advisable in order that any such sale may be

 15
 

made in
compliance with law.  Upon any such sale,
Beneficiary shall have the right to deliver, assign and transfer to the
purchaser thereof the Collateral so sold. 
Each purchaser at any such sale shall hold the Collateral so sold to it
absolutely and free from any claim or right of whatsoever kind.  Any such public sale shall be held at such
time or times within ordinary bankers hours and at such place or places as
Beneficiary may fix in the notice of such sale. 
At any such sale, the Collateral may be sold in one lot as an entirety
or in such parcels, as Beneficiary may determine.  Beneficiary shall not be obligated to make
any such sale pursuant to any such notice. 
Beneficiary may, without notice or publication, adjourn any public or
private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for the sale, and such sale may be
made at any time or place to which the same may be so adjourned without further
notice.  In the case of any sale of all
or any part of the Collateral on credit or for future delivery, the Collateral
so sold may be retained by Beneficiary until the selling price is paid by the
purchaser thereof, but Beneficiary shall not incur any liability in case of the
failure of such purchaser to take up and pay for the Collateral so sold and, in
the case of such failure, such Collateral may again be sold upon like notice.

In the event of a sale, by foreclosure, power of sale
or otherwise, of less than all of Property, this Security Instrument shall
continue as a lien and security interest on the remaining portion of the
Property unimpaired and without loss of priority.

(l)            Without limiting
the foregoing, upon the occurrence of an Event of Default, Beneficiary may
deliver to Trustee written declaration of default and demand for sale and of
written Notice of Default and Election to Sell (in accordance with Nevada
Revised Statutes 107.080) to cause the Property to be sold to satisfy the
obligations hereof, which Notice Trustee shall cause to be filed for
record.  After the lapse of such time as
may then be required by law following the recordation of said Notice of Breach
and Election to Sell, and notice of sale having been given as then required by
law, Trustee without demand on Trustor, shall sell the Property at the time and
place fixed by it in said notice, either as a whole or in separate parcels, and
in such order as it may determine, at public auction to the highest bidder, for
cash in lawful money of the United States payable at the time of sale.  Trustee may, for any cause it deems
expedient, postpone the sale of all or any portion of the Property until it
shall be completed and, in every case, notice of postponement shall be given by
public announcement thereof at the time and place last appointed for the sale
and from time to time thereafter Trustee may postpone such sale by public
announcement at the time fixed by the preceding postponement.  Trustee shall execute and deliver to the
purchaser its Trustee’s Deed conveying the Property so sold but without any
covenant or warranty, express or implied. 
The recitals in the Trustee’s Deed of any matters or facts shall be
conclusive proof of the truthfulness thereof. 
Any person, including Beneficiary, may bid at the sale.  After deducting all costs, fees and expenses
of the Trustee and of this Trust, including the cost of any evidence of title
procured in connection with such sale, the Trustee shall apply the proceeds of
sale in the manner provided in NRS 40.462.

Section 7.2.            Limitation on Duty of Beneficiary in
Respect of Collateral.  Beyond
the exercise of reasonable care in the custody thereof, Beneficiary shall not
have any duty to exercise any rights or take any steps to preserve the rights
of Trustor in the Collateral in Beneficiary’s possession or control or in the
possession or control of any agent or bailee or any income thereon or as to the
preservation of rights against prior parties or any other rights pertaining
thereto, nor shall Beneficiary be liable to Trustor or any other Person for
failure to meet any obligation 

 16
 

imposed by
Section 9-207 of the UCC or any successor provision.  Without limiting the foregoing, Beneficiary
shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral in its possession or control if the Collateral
is accorded treatment substantially equal to that which Beneficiary accords its
own property, and (i) shall not be liable or responsible for any loss or damage
to any of the Collateral, or for any diminution in the value thereof, by reason
of the act or omission of any agent or bailee selected by Beneficiary in good
faith or (ii) shall not have any duty or responsibility for ascertaining or
taking action with respect to calls, conversions, exchanges, maturities,
tenders or other matters relative to any Collateral, whether or not Beneficiary
has or is deemed to have knowledge of such matters.

Section 7.3.            Application of Proceeds.  Upon the occurrence of any Event of Default,
the purchase money, proceeds and avails of any disposition of the Property, and
or any part thereof, or any other sums collected by Beneficiary pursuant to
this Security Instrument may be applied by Beneficiary to the payment of the
Debt or other Obligations in such priority and proportions as Beneficiary in
its discretion shall deem proper.

Section 7.4.            Right to Cure Defaults.  Upon the occurrence and during the
continuance of any Event of Default, Beneficiary may, but without any
obligation to do so and without notice to or demand on Trustor and without
releasing Trustor from any obligation hereunder, make any payment or do any act
required of Trustor hereunder in such manner and to such extent as Beneficiary
may deem necessary to protect the security hereof.  Beneficiary is authorized to enter upon the
Property for such purposes, or appear in, defend, or bring any action or
proceeding to protect its interest in the Property or to foreclose this
Security Instrument or collect the Debt, and the cost and expense thereof
(including reasonable attorneys’ fees to the extent permitted by law), with
interest as provided in this Section 7.4, shall constitute a portion of
the Debt and shall be due and payable to Beneficiary upon demand.  All such costs and expenses incurred by
Beneficiary in remedying such Event of Default or such failed payment or act or
in appearing in, defending, or bringing any such action or proceeding shall
bear interest at the Default Rate, for the period after such cost or expense
was incurred to the date of payment to Beneficiary.  All such costs and expenses incurred by
Beneficiary together with interest thereon calculated at the Default Rate shall
be deemed to constitute a portion of the Debt and be secured by this Security
Instrument and the other Loan Documents and shall be immediately due and
payable upon demand by Beneficiary therefor.

Section 7.5.            Actions and Proceedings.  Beneficiary has the right to appear in and
defend any action or proceeding brought with respect to the Property and to
bring any action or proceeding, in the name and on behalf of Trustor, which
Beneficiary, in its discretion, decides should be brought to protect its
interest in the Property.

Section 7.6.            Other
Rights, Etc.  (a)  The failure of Beneficiary to insist upon
strict performance of any term hereof shall not be deemed to be a waiver of any
term of this Security Instrument. 
Trustor shall not be relieved of Trustor’s obligations hereunder by reason
of (i) the failure of Beneficiary to comply with any request of Trustor,
Borrower or any guarantor or indemnitor with respect to the Loan to take any
action to foreclose this Security Instrument or otherwise enforce any of the
provisions hereof or of the Note or the other Loan Documents, (ii) the release,
regardless of consideration, of the whole or any part of the Property, or of
any person liable for the Debt or any portion thereof, or (iii) any agreement
or stipulation by Beneficiary

 17
 

extending the
time of payment or otherwise modifying or supplementing the terms of the Note,
this Security Instrument or the other Loan Documents.

(b)           It is agreed that
the risk of loss or damage to the Property is on Trustor, and Beneficiary shall
have no liability whatsoever for decline in value of the Property, for failure
to maintain the Policies, or for failure to determine whether insurance in
force is adequate as to the amount of risks insured.  Possession by Beneficiary shall not be deemed
an election of judicial relief if any such possession is requested or obtained
with respect to any Property or collateral not in Beneficiary’s possession.

(c)           Beneficiary may
resort for the payment of the Debt to any other security held by Beneficiary in
such order and manner as Beneficiary, in its discretion, may elect.  To the extent permitted by applicable law,
Beneficiary may take action to recover the Debt, or any portion thereof, or to
enforce any covenant hereof without prejudice to the right of Beneficiary
thereafter to foreclose this Security Instrument.  The rights of Beneficiary under this Security
Instrument shall be separate, distinct and cumulative and none shall be given
effect to the exclusion of the others. 
No act of Beneficiary shall be construed as an election to proceed under
any one provision herein to the exclusion of any other provision.  Beneficiary shall not be limited exclusively
to the rights and remedies herein stated but shall be entitled to every right
and remedy now or hereafter afforded at law or in equity.

Section 7.7.            Right to Release Any Portion of the
Property.  Beneficiary may
release any portion of the Property for such consideration as Beneficiary may
require without, as to the remainder of the Property, in any way impairing or
affecting the lien or priority of this Security Instrument, or improving the
position of any subordinate lienholder with respect thereto, except to the
extent that the obligations hereunder shall have been reduced by the actual
monetary consideration, if any, received by Beneficiary for such release, and
may accept by assignment, pledge or otherwise any other property in place
thereof as Beneficiary may require without being accountable for so doing to
any other lienholder.  This Security
Instrument shall continue as a lien and security interest in the remaining
portion of the Property.

Section 7.8.            Violation of Laws.  If the Property is not in material compliance
with any applicable Legal Requirements, Beneficiary may impose additional
requirements upon Trustor in connection herewith including, without limitation,
monetary reserves or financial equivalents.

Section 7.9.            Recourse and Choice of Remedies.  Notwithstanding any other provision of this
Security Instrument or the Loan Agreement, including, without limitation, Section
9.4 of the Loan Agreement, Beneficiary and other Indemnified Parties (as
hereinafter defined) are entitled to enforce the obligations of Trustor
contained in Section 8.2 and Section 8.3 without first resorting
to or exhausting any security or collateral and without first having recourse
to the Note or any of the Property, through foreclosure or acceptance of a deed
in lieu of foreclosure or otherwise, and in the event Beneficiary commences a
foreclosure action against the Property, Beneficiary is entitled to pursue a
deficiency judgment with respect to such obligations against Trustor with
respect to the Loan.  The provisions of Section
8.2 and Section 8.3 are exceptions to any non-recourse or
exculpation provisions in the Loan Agreement, the Note, this Security
Instrument or the other Loan Documents, and Trustor with respect to the Loan is
fully liable for the obligations pursuant to Section 8.2 and Section
8.3.  The liability of Trustor with
respect to

 18
 

the Loan
pursuant to Section 8.2 and Section 8.3 is not limited to the
original principal amount of the Note. 
Notwithstanding the foregoing, nothing herein shall inhibit or prevent
Beneficiary from foreclosing or exercising any other rights and remedies
pursuant to the Loan Agreement, the Note, this Security Instrument and the
other Loan Documents, whether simultaneously with foreclosure proceedings or in
any other sequence.  A separate action or
actions may be brought and prosecuted against Trustor pursuant to Section
8.2 and Section 8.3 whether or not action is brought against any
other Person or whether or not any other Person is joined in the action or
actions.

Section 7.10.          Right of
Entry.  Upon reasonable notice to
Trustor, Beneficiary and its agents shall have the right to enter and inspect
the Property at all reasonable times.

Section 7.11.          General Authority.  Trustor hereby irrevocably appoints
Beneficiary and any officer or agent thereof as its true and lawful
attorney-in-fact, with full power of substitution, in the name of Trustor,
Beneficiary or otherwise, for the sole use and benefit of Beneficiary, but at
Trustor’s expense, to the extent permitted by law, to exercise at any time and
from time to time all or any of the following powers with respect to all or any
of the Property, all acts of such attorney being hereby ratified and confirmed;
such power, being coupled with an interest, is irrevocable until the
Obligations (excluding contingent indemnification obligations) are paid in
full:

(a)           to exercise and
perfect any and all rights and remedies available to Beneficiary at law or in
equity, including without limitation, such rights and remedies available to
Beneficiary pursuant to Section 5.1, Section 5.2 and, upon the
occurrence of an Event of Default, this Article VII;

(b)           to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to carry out the terms of this Security Instrument;

(c)           to receive, take,
endorse, assign and deliver any and all checks, notes, drafts, acceptances,
documents and other negotiable and non-negotiable instruments taken or received
by Trustor as, or in connection with, the Property;

(d)           upon the occurrence
of an Event of Default, to commence, settle, compromise, compound, prosecute,
defend or adjust any claim, suit, action or proceeding with respect to, or in
connection with, the Property;

(e)           upon the occurrence
of an Event of Default, to sell, transfer, assign or otherwise deal in or with
the Property or the proceeds or avails thereof, as fully and effectually as if
Beneficiary were the absolute owner thereof;

(f)            upon the occurrence
of an Event of Default, to extend the time of payment of any or all of the
Property and to make any allowance and other adjustments with respect thereto;
and

 19
 

(g)           to do, at its
option, but at the expense of Trustor, at any time or from time to time, all
acts and things which Beneficiary reasonably deems necessary to protect or
preserve the Property and to realize upon the Property.

Section 7.12.          Nevada Foreclosure.  This instrument may be foreclosed as to the
Property in any manner permitted by the laws of the State of Nevada.  In addition to any other right, with or
without a foreclosure, Beneficiary may institute a judicial action for the
foreclosure or enforcement of the assignments, liens, and security interests
hereof subject to the terms of the Loan Documents and applicable Nevada
law.  If a nonjudicial foreclosure
hereunder is commenced by Beneficiary, Beneficiary, at any time before the
sale, may abandon the sale and judicially foreclose and/or enforce the
assignments, liens and security interests hereof subject to the terms of the
Loan Documents and applicable Nevada law. 
If Beneficiary should institute a suit for judicial foreclosure or
enforcement of the assignments, liens, and security interests hereof, it may,
to the extent permitted by applicable law, at any time before the entry of a
final judgment in said suit, dismiss the same, and sell the Property, or any
part thereof, in accordance with the power of sale provisions of this Security
Instrument.  To the extent applicable,
with respect to fixtures, Beneficiary or Trustee may elect to treat same as
either real property or personal property and proceed to exercise such rights
and remedies applicable to the categorization so chosen.  Beneficiary may proceed against the items of
real property and any items of Collateral separately or together in any order
whatsoever, without in any way affecting or waiving Beneficiary’s rights and
remedies under the UCC, this Security Instrument, the Notes and the other Loan
Documents.  Trustor acknowledges and
agrees that Beneficiary’s rights and remedies under this Security Instrument,
the Notes, and the other Loan Documents shall be cumulative and shall be in
addition to every other right and remedy now or hereafter existing at law, in
equity, by statute or by agreement of the parties.

Section 7.13.          Limitation on Foreclosure.  Beneficiary and Trustee acknowledge and
understand that (i) the prior approval of the gaming authorities of the State
of Nevada may be required pursuant to applicable law for the exercise,
operation and effectiveness of certain remedies hereunder or under any other
Loan Document, or the taking of certain other actions that may be taken by
Beneficiary or Trustee hereunder or under any other Loan Document, including
without limitation the disposition of collateral consisting of Gaming Equipment
and (ii) as a condition of such approval, the Beneficiary or Trustee may be
subject to being called forward for licensing or a finding of suitability.

ARTICLE VIII.

INDEMNIFICATION

Section 8.1.            General
Indemnification.  Trustor shall, at
its sole cost and expense, protect, defend, indemnify, release and hold
harmless the Indemnified Parties (hereinafter defined) from and against any and
all claims, suits, liabilities (including, without limitation, strict
liabilities), actions, proceedings, obligations, debts, damages, losses, costs,
expenses, diminutions in value, fines, penalties, charges, fees, expenses,
judgments, awards, amounts paid in settlement, punitive damages, foreseeable
and unforeseeable consequential damages, of whatever kind or nature (including,
but not limited, to reasonable attorneys’ fees and other costs of defense)
(collectively, the “Losses”) imposed upon or incurred by or asserted
against any Indemnified Parties and directly or indirectly arising out of or in
any way relating to any one or

 20
 

more of the
following: (a) ownership of this Security Instrument, the Property or any
interest therein or receipt of any Rents; (b) any amendment to, or
restructuring of, the Debt, the Note, the Loan Agreement, this Security
Instrument, or any other Loan Documents; (c) any and all lawful action that may
be taken by Beneficiary in connection with the enforcement of the provisions of
this Security Instrument, whether or not suit is filed in connection with same,
or in connection with Trustor, any guarantor or indemnitor and/or any partner,
joint venturer or shareholder thereof becoming a party to a voluntary or
involuntary federal or state bankruptcy, insolvency or similar proceeding; (d)
any accident, injury to, or death of, persons or loss of or damage to property
occurring in, on or about the Property or any part thereof or on the adjoining
sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(e) any use, nonuse or condition in, on or about the Property or any part
thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (f) any failure on the part of Trustor to
perform or be in compliance with any of the terms of this Security Instrument;
(g) performance of any labor or services or the furnishing of any
materials or other property in respect of the Property or any part thereof; (h)
the failure of any person to file timely with the Internal Revenue Service an
accurate Form 1099-B, Statement for Recipients of Proceeds from Real Estate,
Broker and Barter Exchange Transactions, which may be required in connection
with this Security Instrument, or to supply a copy thereof in a timely fashion
to the recipient of the proceeds of the transaction in connection with which
this Security Instrument is made; (i) any failure of the Property to be in
compliance with any Legal Requirements; (j) the enforcement by any Indemnified
Party of the provisions of this Article 8; (k) any and all claims and
demands whatsoever which may be asserted against Beneficiary by reason of any
alleged obligations or undertakings on its part to perform or discharge any of
the terms, covenants, or agreements contained in any Leases; (l) the payment of
any commission, charge or brokerage fee to anyone claiming through Trustor
which may be payable in connection with the funding of the Loan; or (m) any
misrepresentation made by Trustor in this Security Instrument.  Any amounts payable to Beneficiary by reason
of the application of this Section 8.1 shall become immediately due and
payable and shall bear interest at the Default Rate from the date loss or
damage is sustained by Beneficiary until paid. 
For purposes of this Article 8, the term “Indemnified Parties”
means Beneficiary and any Person who is or will have been involved in the
origination of the Loan, any Person who is or will have been involved in the
servicing of the Loan, any Person in whose name the encumbrance created by this
Security Instrument is or will have been recorded, Persons who may hold or
acquire or will have held a full or partial interest in the Loan (including,
but not limited to, investors or prospective investors in the Securities, as
well as custodians, trustees and other fiduciaries who hold or have held a full
or partial interest in the Loan for the benefit of third parties) as well as
the respective directors, officers, shareholders, partners, employees, agents, servants,
representatives, contractors, subcontractors, affiliates, subsidiaries,
participants, successors and assigns of any and all of the foregoing
(including, but not limited to, any other Person who holds or acquires or will
have held a participation or other full or partial interest in the Loan,
whether during the term of the Loan or as a part of or following a foreclosure
of the Loan and any successors by merger, consolidation or acquisition of all
or a substantial portion of Beneficiary’s assets and business).

Section 8.2.            Mortgage and/or Intangible Tax.  Trustor shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties
from and against any and all Losses imposed upon or incurred by or asserted
against any Indemnified Parties and directly or indirectly arising out of or in
any way relating to any tax on the making 

 21
 

and/or
recording of this Security Instrument, the Note or any of the other Loan
Documents, but excluding any income, franchise or other similar taxes.

Section 8.3.            ERISA Indemnification.  Trustor shall, at
its sole cost and expense, protect, defend, indemnify, release and hold
harmless the Indemnified Parties from and against any and all Losses
(including, without limitation, reasonable attorneys’ fees and costs incurred
in the investigation, defense, and settlement of Losses incurred in correcting
any prohibited transaction or in the sale of a prohibited loan, and in
obtaining any individual prohibited transaction exemption under ERISA that may
be required, in Beneficiary’s sole discretion) that Beneficiary may incur,
directly or indirectly, as a result of a default under Section 4.1.9 or Section
5.2.9 of the Loan Agreement.

Section 8.4.            Duty to Defend; Attorneys’ Fees and Other
Fees and Expenses.  Upon
written request by any Indemnified Party, Trustor shall defend such Indemnified
Party (if requested by any Indemnified Party, in the name of the Indemnified
Party) by attorneys and other professionals approved by the Indemnified
Parties.  Notwithstanding the foregoing,
if the defendants in any such claim or proceeding include both Trustor and any
Indemnified Party and Trustor and such Indemnified Party shall have reasonably
concluded that there are any legal defenses available to it and/or other
Indemnified Parties that are different from or additional to those available to
Trustor, such Indemnified Party shall have the right to select separate counsel
to assert such legal defenses and to otherwise participate in the defense of
such action on behalf of such Indemnified Party, provided that no compromise or
settlement shall be entered without Trustor’s consent, which consent shall not
be unreasonably withheld.  Upon demand,
Trustor shall pay or, in the sole and absolute discretion of the Indemnified
Parties, reimburse, the Indemnified Parties for the payment of reasonable fees
and disbursements of attorneys, engineers, environmental consultants,
laboratories and other professionals in connection therewith.

ARTICLE IX.

WAIVERS

Section 9.1.            Waiver of Counterclaim.  To the extent permitted by applicable law,
Trustor hereby waives the right to assert a counterclaim, other than a
mandatory or compulsory counterclaim, in any action or proceeding brought
against it by Beneficiary arising out of or in any way connected with this
Security Instrument, the Loan Agreement, the Note, any of the other Loan
Documents, or the Obligations.

Section 9.2.            Marshalling and Other Matters.  To the extent permitted by applicable law,
Trustor hereby waives the benefit of all appraisement, valuation, stay,
extension, reinstatement and redemption laws now or hereafter in force and all
rights of marshalling in the event of any sale hereunder of the Property or any
part thereof or any interest therein. 
Further, Trustor hereby expressly waives any and all rights of
redemption from sale under any order or decree of foreclosure of this Security
Instrument on behalf of Trustor, and on behalf of each and every person
acquiring any interest in or title to the Property subsequent to the date of
this Security Instrument and on behalf of all persons to the extent permitted
by applicable law.

 22

 

Section 9.3.            Waiver of Notice.  To the extent permitted by applicable law,
Trustor shall not be entitled to any notices of any nature whatsoever from
Beneficiary except with respect to matters for which this Security Instrument
specifically and expressly provides for the giving of notice by Beneficiary to
Trustor and except with respect to matters for which Beneficiary is required by
applicable law to give notice, and Trustor hereby expressly waives the right to
receive any notice from Beneficiary with respect to any matter for which this
Security Instrument does not specifically and expressly provide for the giving
of notice by Beneficiary to Trustor.

Section 9.4.            Waiver of Statute of Limitations.  To the extent permitted by applicable law,
Trustor hereby expressly waives and releases to the fullest extent permitted by
law, the pleading of any statute of limitations as a defense to payment of the
Debt or performance of its Other Obligations.

Section 9.5.            Survival.  The indemnifications made pursuant to Section
8.1 and Section 8.3 shall continue indefinitely in full force
and effect and shall survive and shall in no way be impaired by any of the
following: any satisfaction or other termination of this Security Instrument,
any assignment or other transfer of all or any portion of this Security
Instrument or Beneficiary’s interest in the Property (but, in such case, shall
benefit both Indemnified Parties and any assignee or transferee), any exercise
of Beneficiary’s rights and remedies pursuant hereto including, but not limited
to, foreclosure or acceptance of a deed in lieu of foreclosure, any exercise of
any rights and remedies pursuant to the Loan Agreement, the Note or any of the
other Loan Documents, any transfer of all or any portion of the Property (whether
by Trustor or by Beneficiary following foreclosure or acceptance of a deed in
lieu of foreclosure or at any other time), any amendment to this Security
Instrument, the Loan Agreement, the Note or the other Loan Documents, and any
act or omission that might otherwise be construed as a release or discharge of
Trustor from the obligations pursuant hereto.

ARTICLE X.

EXCULPATION

The provisions of Section 9.4 of the Loan Agreement
are hereby incorporated by reference into this Security Instrument to the same
extent and with the same force as if fully set forth herein.

ARTICLE XI.

NOTICES

All notices, consents, approvals and requests required
or permitted hereunder shall be given in writing and shall be effective for all
purposes if hand delivered or sent by (a) certified or registered United States
mail, postage prepaid, return receipt requested or (b) expedited prepaid
delivery service, either commercial or United States Postal Service, with proof
of attempted delivery, and by facsimile (with answer back acknowledged),
addressed as follows (or at such other address and Person as shall be
designated from time to time by any party hereto, as the case may be, in a
notice to the other parties hereto in the manner provided for in this Article);

 23
 

 

	
  If to Lender:

  	
   

  	
  Column Financial, Inc.

  
	
   

  	
   

  	
  11 Madison Avenue

  
	
   

  	
   

  	
  New York, New York 10010

  
	
   

  	
   

  	
  Attention: Michael May

  
	
   

  	
   

  	
  Facsimile No.: (212) 352-8106

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Column Financial, Inc.

  
	
   

  	
   

  	
  One Madison Avenue

  
	
   

  	
   

  	
  New York, New York 10010

  
	
   

  	
   

  	
  Legal and Compliance Department

  
	
   

  	
   

  	
  Attention: Casey McCutcheon, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (917) 326-8433

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Fried, Frank, Harris, Shriver & Jacobson LLP

  
	
   

  	
   

  	
  One New York Plaza

  
	
   

  	
   

  	
  New York, New York 10004

  
	
   

  	
   

  	
  Attention: Jonathan L. Mechanic, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (212) 859-4000

  
	
   

  	
   

  	
   

  
	
  If to Borrower:

  	
   

  	
  c/o OpBiz, L.L.C.

  
	
   

  	
   

  	
  3667 Las Vegas Boulevard South

  
	
   

  	
   

  	
  Las Vegas, Nevada 89109

  
	
   

  	
   

  	
  Attention: Mark Helm, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (702) 785-5936

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Greenberg Traurig LLP

  
	
   

  	
   

  	
  200 Park Avenue

  
	
   

  	
   

  	
  New York, New York 10166

  
	
   

  	
   

  	
  Attention: Joseph F. Kishel, Esq.

  
	
   

  	
   

  	
  Facsimile No.: (212) 801-9238

  

 

ARTICLE XII.

APPLICABLE LAW

Section 12.1.          Governing
Law.  This Security Instrument shall
be governed in accordance with the terms and provisions of Section 10.3 of the
Loan Agreement.

Section 12.2.          Usury Laws.  Notwithstanding anything to the contrary (a)
all agreements and communications between Trustor and Beneficiary are hereby
and shall automatically be limited so that, after taking into account all amounts
deemed interest, the interest contracted for, charged or received by
Beneficiary shall never exceed the Maximum Legal Rate or amount, (b) in
calculating whether any interest exceeds the Maximum Legal Rate, all such
interest shall be amortized, prorated, allocated and spread over the full
amount and term of all principal indebtedness of Borrower to Beneficiary, and
(c) if through any contingency or event, Beneficiary receives or is deemed to
receive interest in excess of the Maximum Legal Rate, any such excess shall be
deemed to have been applied toward payment of the principal of any and all then
outstanding indebtedness of Borrower to Beneficiary, or if there is no such
indebtedness, shall immediately be returned to Borrower.

 24
 

Section 12.3.          Provisions Subject to Applicable Law.  All rights, powers and remedies provided in
this Security Instrument may be exercised only to the extent that the exercise
thereof does not violate any applicable provisions of law and are intended to
be limited to the extent necessary so that they will not render this Security
Instrument invalid, unenforceable or not entitled to be recorded, registered or
filed under the provisions of any applicable law.  If any term of this Security Instrument or
any application thereof shall be invalid or unenforceable, the remainder of
this Security Instrument and any other application of the term shall not be
affected thereby.

ARTICLE XIII.

DEFINITIONS

All capitalized terms not defined herein shall have
the respective meanings set forth in the Loan Agreement or in Exhibit B
attached hereto and made a part hereof. 
Unless the context clearly indicates a contrary intent or unless
otherwise specifically provided herein, words used in this Security Instrument
may be used interchangeably in singular or plural form and the word “Trustor”
shall mean “each Trustor and any subsequent owner or owners of the Property or
any part thereof or any interest therein”, the word “Beneficiary” shall
mean “Beneficiary and any subsequent holder of the Note,” the word “Note”
shall mean “the Note and any other evidence of indebtedness secured by this
Security Instrument,” the word “Property” or “Collateral” shall
include any portion of the Property or the Collateral and any interest therein,
and the phrases “attorneys’ fees”, “legal fees” and “counsel
fees” shall include any and all attorneys’, paralegal and law clerk fees
and disbursements, including, but not limited to, fees and disbursements at the
pre-trial, trial and appellate levels incurred or paid by Beneficiary in
protecting its interest in the Property, the Leases and the Rents and enforcing
its rights hereunder.  Terms used herein
that are defined in Articles 8 and 9 of the Uniform Commercial Code and not
otherwise defined herein or by reference herein have the meaning assigned to
such terms therein.

ARTICLE XIV.

MISCELLANEOUS PROVISIONS

Section 14.1.          No Oral Change.  This Security Instrument, and any provisions
hereof, may not be modified, amended, waived, extended, changed, discharged or
terminated orally or by any act or failure to act on the part of Trustor or
Beneficiary, but only by an agreement in writing signed by the party against
whom enforcement of any modification, amendment, waiver, extension, change,
discharge or termination is sought.

Section 14.2.          Successors and Assigns.  This Security Instrument shall be binding
upon and inure to the benefit of Trustor and Beneficiary and their respective
successors and assigns forever.

Section 14.3.          Inapplicable Provisions.  If any term, covenant or condition of this
Security Instrument is held to be invalid, illegal or unenforceable in any
respect, this Security Instrument shall be construed without such provision.

 25
 

Section 14.4.          Headings,
etc.  The headings and captions of
various Articles and Sections of this Security Instrument are for convenience
of reference only and are not to be construed as defining or limiting, in any
way, the scope or intent of the provisions hereof.

Section 14.5.          Number and Gender.  Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of nouns and pronouns shall include the
plural and vice versa.

Section 14.6.          Subrogation.  If any or all of the proceeds of the Note
have been used to extinguish, extend or renew any indebtedness heretofore
existing against the Property, then, to the extent of the funds so used,
Beneficiary shall be subrogated to all of the rights, claims, liens, titles,
and interests existing against the Property heretofore held by, or in favor of,
the holder of such indebtedness and such former rights, claims, liens, titles,
and interests, if any, are not waived but rather are continued in full force
and effect in favor of Beneficiary and are merged with the lien and security interest
created herein as cumulative security for the repayment of the Debt, the
performance and discharge of Trustor’s obligations hereunder, under the Loan
Agreement, the Note and the other Loan Documents and the performance and
discharge of the Other Obligations.

Section 14.7.          Entire Agreement.  This Security Instrument and the specific
cross-references herein to the Loan Agreement constitute the entire
understanding and agreement between Trustor and Beneficiary with respect to the
transactions arising in connection with the Debt and supersede all prior
written or oral understandings and agreements between Trustor and Beneficiary
with respect thereto.  Trustor hereby
acknowledges that, except as incorporated in writing in the Note, the Loan
Agreement, this Security Instrument and the other Loan Documents, there are
not, and were not, and no Persons are or were authorized by Beneficiary to
make, any representations, understandings, stipulations, agreements or
promises, oral or written, with respect to the transaction which is the subject
of the Note, the Loan Agreement, this Security Instrument and the other Loan
Documents.

Section 14.8.          Limitation on Beneficiary’s Responsibility.  No provision of this Security Instrument
shall operate to place any obligation or liability for the control, care,
management or repair of the Property upon Beneficiary, nor shall it operate to
make Beneficiary responsible or liable for any waste committed on the Property
by tenants or any other Person, or for any dangerous or defective condition of
the Property, or for any negligence in the management, upkeep, repair or
control of the Property resulting in loss or injury or death to any tenant,
licensee, employee or stranger or any other Person.  Nothing herein contained shall be construed
as constituting Beneficiary a “mortgagee in possession.”

Section 14.9.          Appointment of Collateral Agent.  At any time or times, in order to comply with
any Legal Requirement, Beneficiary may appoint another Person that is an
Affiliate of Beneficiary to act as collateral agent on behalf of Beneficiary
with such power and authority as may be necessary for the effectual operation
of the provisions hereof and may be specified in the instrument of appointment
(which may, in the discretion of Beneficiary, include provisions for the
protection of such collateral agent). 
Notwithstanding any such appointment but only to the extent not
inconsistent with such legal requirements or, in the reasonable judgment of
Beneficiary, not unduly burdensome to it or any such collateral agent, Trustor
shall, so long as 

 26
 

no Default or
Event of Default shall have occurred and be continuing, be entitled to deal
solely and directly with Beneficiary rather than any such collateral agent in
connection with Beneficiary’s rights and obligations under this Security
Instrument.

Section 14.10.        Counterparts; Effectiveness.  This Security Instrument may be executed in
any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same
instrument.  This Security Instrument
shall become effective with respect to Trustor when Beneficiary shall receive
counterparts hereof executed by itself and Trustor.

Section 14.11.        Joint and Several Liability.  If Trustor consists of more than one Person,
the obligations and liabilities of each such Person shall be joint and several.

Section 14.12.        Intentionally
Omitted.

Section 14.13.        Other Collateral.  This Security Instrument is one of a number
of security agreements to secure the Obligations of Borrower pursuant to the
Loan Agreement and the other Loan Documents. 
All potential junior Lien claimants are placed on notice that, under the
Loan Agreement and each other Loan Document granting a security interest to
Beneficiary or otherwise (such as by separate future unrecorded agreement
between Trustor and Beneficiary), other collateral for the Obligations secured
hereunder (i.e., collateral other than the Property) may, under certain
circumstances, be released without a corresponding reduction in the total
principal amount secured by this Security Instrument.  Such a release would decrease the amount of
collateral securing the same indebtedness, thereby increasing the burden on the
remaining Property created and continued by this Security Instrument.  No such release shall impair the priority of
the lien of this Security Instrument.  By
accepting its interest in the Property, each and every junior Lien claimant
shall be deemed to have acknowledged the possibility of, and consented to, any
such release. Nothing in this paragraph shall impose any obligation upon
Beneficiary.

Section 14.14.        Waiver of Appraisement, Valuation, Stay,
Extension and Redemption Laws. 
Trustor agrees to the full extent permitted by law that if an Event of
Default occurs, neither Trustor nor anyone claiming through or under it shall
or will set up, claim or seek to take advantage of any appraisement, valuation,
stay, extension or redemption laws now or hereafter in force, in order to
prevent or hinder the enforcement or foreclosure of this Security Instrument or
the absolute sale of the Property or any portion thereof or the final and
absolute putting into possession thereof, immediately after such sale, of the
purchasers thereof, and Trustor for itself and all who may at any time claim
through or under it, hereby waives, to the full extent that it may lawfully so
do, the benefit of all such laws, and any and all right to have the assets
comprising the Property marshaled upon any foreclosure of the lien hereof and agrees
that Trustee or any court having jurisdiction to foreclose such lien may sell
the Property in part or as an entirety.

Section 14.15.        Suits to Protect the Mortgaged Property.  Subject to applicable provisions of the Loan
Agreement, Beneficiary shall have the power and authority to institute and
maintain any suits and proceedings as Beneficiary, in its sole and absolute
discretion, may deem advisable (a) to prevent any impairment of the Property by
any acts which may be unlawful or in violation 

 27
 

of this
Security Instrument, (b) to preserve or protect its interest in the Mortgaged
Property, or (c) to restrain the enforcement of or compliance with any
legislation or other Legal Requirement that may be unconstitutional or
otherwise invalid, if the enforcement of or compliance with such enactment,
rule or order might impair the security hereunder or be prejudicial to
Beneficiary’s interest.

Section 14.16.        Waiver of Trial by Jury.  EACH
OF BENEFICIARY AND TRUSTOR HEREBY WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR
PROCEEDING BROUGHT IN CONNECTION WITH THIS DEED OF TRUST, WHICH WAIVER IS
INFORMED AND VOLUNTARY.

Section 14.17.        Substitution
of Trustee.  Beneficiary, to the
extent not prohibited by law, shall have the irrevocable power, to be exercised
at any time or times hereafter and with or without cause, to substitute a
trustee or trustees in place of Trustee, by an instrument in writing duly
executed, acknowledged and recorded in the Clark County Recorder’s Office, and
when such instrument is so recorded, all of the powers of Trustee thus
superseded shall terminate and all of the right, title and interest of Trustee
hereunder shall be vested in the trustee or trustees named as its successor,
and such successor trustee or trustees shall have the same powers, rights and
duties which the trustee so superseded had under this Security Instrument.  The exercise of this right to appoint a
successor trustee, no matter how often exercised, shall not be deemed an
exhaustion of said right.  Irrespective
of whether Trustee consists of one or more entities, Beneficiary may name one
or more entities as successor trustee or trustees as Beneficiary may determine.

ARTICLE XV.

STATE-SPECIFIC PROVISIONS

Section 15.1.          Principles
of Construction.  In the event of any inconsistencies between
the terms and conditions of this Article 15 and the terms and conditions
of this Security Instrument, the terms and conditions of this Article 15
shall control and be binding.

Section 15.2.          Waivers.  (a) 
Trustor waives all rights of subrogation, reimbursement,
indemnification, and contribution and any other rights and defenses that are or
may become available to such Trustor by reason of Nevada law, including, to the
extent permitted by law, (i) the benefit of all laws now existing or that may
hereafter be enacted providing for any appraisement before sale of any portion
of the Property; (ii) all rights of redemption, valuation, appraisement, stay
of execution, notice of election to mature or declare due the whole of the
secured indebtedness, and marshaling in the event of foreclosure of the liens
hereby created; (iii) all rights and remedies that Trustor may have or be able
to assert by reason of the laws of the State of Nevada pertaining to the rights
and remedies of sureties; (iv) the right to assert any statute of limitations
as a bar to the enforcement of the lien of this Security Instrument or to any
action brought to enforce the Notes or any other Obligation secured by this
Security Instrument; (v) Trustor’s right to notice of termination of the
operation of instrument under NRS § 106.380; and (vi) any rights, legal or
equitable, to require marshaling of assets or to require upon foreclosure sales
in a particular order, including, without limitation, any rights under NRS §§
100.040 and 100.050.  Beneficiary shall
have the right to determine the order in which any or all of the Mortgaged
Property shall be subjected to the remedies provided herein.  Beneficiary shall 

 28
 

have the right
to determine the order in which any or all portions of the indebtedness secured
hereby are satisfied from the proceeds realized upon the exercise of the
remedies provided herein.  Nothing
contained herein shall be deemed to be a waiver of Trustor’s rights under NRS §
40.462.

(b)           Trustor waives all
rights and defenses affecting enforcement of this Security Instrument that
Trustor may have because the Obligations are secured by real property.  This is an unconditional and irrevocable
waiver of any rights and defenses affecting enforcement of this Security
Instrument that Trustor may have because the Loan is secured by real
property.  These rights and defenses
include, but are not limited to, any rights and defenses based upon Nevada law.

(c)           Trustor hereby
expressly waives diligence, demand, presentment, protest and notice of every
kind and nature whatsoever (unless as otherwise required under this Security
Instrument) and waives any right to require Beneficiary to enforce any remedy
against any guarantor, endorser or other person whatsoever prior to the
exercise of its rights and remedies hereunder or otherwise.  To the extent permitted by applicable law,
Trustor waives any right to require Beneficiary to (i) proceed or exhaust any
collateral security given or held by Beneficiary in connection with the
Obligations, (ii) give notice of the terms, time and place of any public or
private sale of any real or personal property security for the Obligations or
other guaranty of the Obligations; or (iii) pursue any other remedy in
Beneficiary’s power whatsoever.

(d)           Until all of the Obligations
shall have been paid in full, Trustor (i) shall not have any right of
subrogation to any of the rights of Beneficiary against any guarantor, maker or
endorser; (ii) waives any right to enforce any remedy which Beneficiary or
Trustor now has or may hereafter have against any other guarantor, maker or
endorser; (iii) waives any benefit of, and any other right to participate in,
any collateral security for the Obligations or any guaranty of the obligations
now or hereafter held by Beneficiary.

(e)           Trustor expressly
waives all suretyship defenses that Trustor may have under Nevada law and the
laws of any other state.

Section 15.3.          Incorporated Statutory Provisions.  To the extent not
inconsistent with the other provisions of this Security Instrument or the other
Loan Documents, the following covenants, Nos. 1, 2 (full replacement value), 3,
4 (default rate under Note), 5, 6, 7 (a reasonable percentage), 8 and 9 of
Nevada Revised Statues § 107.030 are hereby adopted and made a part of this
Security Instrument.

Section 15.4.          Gaming Matters.  Beneficiary acknowledges that to the extent
the exercise of its rights, remedies and
powers hereunder are subject to Gaming Laws, Beneficiary shall obtain
consents or approvals as required by such Gaming Laws.

Section 15.5.          Security Agreement.  THIS SECURITY INSTRUMENT CONSTITUTES A
SECURITY AGREEMENT AS THAT TERM IS DEFINED IN THE NEVADA UNIFORM COMMERCIAL
CODE, PORTION OF THE COLLATERAL ARE GOODS THAT ARE OR ARE TO BECOME FIXTURES ON
THE LAND DESCRIBED IN EXHIBIT A ATTACHED HERETO.  THIS INSTRUMENT IS INTENDED TO SERVE AS A
FIXTURE FILING AND 

 29
 

IS TO BE
RECORDED IN THE REAL ESTATE RECORDS OF CLARK COUNTY, NEVADA AND INDEXED AS BOTH
A DEED OF TRUST AND A FIXTURE FILING. 
TRUSTOR IS THE OWNER OF A RECORD INTEREST IN THE LAND DESCRIBED IN
EXHIBIT A ATTACHED HERETO.  TRUSTOR IS
THE DEBTOR AND BENEFICIARY IS THE SECURED PARTY.

Section 15.6.          Future Advances.  This Security Instrument is governed by
Nevada Revised Statutes Sections (“NRS”) 106.300 to 106.400 and secures
future advances as provided in such sections. 
The maximum amount of “principal” (as defined in NRS Section 106.345)
secured hereby (including disbursements that the Lender may, but shall not be
obligated to, make under this Security Instrument, the Loan Documents or any
other document with respect thereto) shall not exceed) ($820,000,000)
Dollars.  This Security Instrument shall
be valid and have priority to the extent of the maximum amount secured hereby
over all subsequent liens and encumbrances, including statutory liens,
excepting solely taxes and assessments levied on the Property given priority by
law.

Section 15.7.          Additional Event of Default.  An Event of Default shall occur if Trustee or
any other “borrower” (as that term is defined in NRS 106.310, as amended or
recodified from time to time) who may send a notice pursuant to NRS 106.380(1),
as amended or recodified from time to time, with respect to this Security
Instrument, (i) delivers, sends by mail or otherwise gives, or purports to
deliver, send by mail or otherwise give to Beneficiary:  (A) any notice of an election to terminate
the operation of this Security Instrument as security for any Obligation,
including, without limitation, any obligation to repay any “future advance” (as
defined in NRS 106.320, as amended or recodified from time to time), of “principal”
(as defined in NRS 106,345, as amended or recodified from time to time), or (B)
any other notice pursuant to NRS 106.380(3), as amended or recodified from time
to time, or (ii) records a statement pursuant to NRS 106.380(3), as amended or
recodified from time to time, or (iii) (causes this Security Instrument, any
Obligation, or Beneficiary to be subject to NRS 106.380(2), 106.380(3) or
106.400, as amended or recodified from time to time.

[REMAINDER OF PAGE
INTENTIONALLY BLANK]

 

 30

 

IN WITNESS WHEREOF, this Security Instrument has been
executed by Trustor Trustee, and Beneficiary as of the day and year first above
written.

	
  TRUSTOR:

  	
  TSP OWNER LLC, a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE:

  	
  FIRST AMERICAN TITLE INSURANCE

  
	
   

  	
  COMPANY, a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
  BENEFICIARY:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLUMN FINANCIAL, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

NEVADA NOTARY BLOCKS

	
  STATE
  OF

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of

  	
  )

  

 

This instrument was acknowledged before me on
                            ,
200      , by                           ,
as                                    
of                                                        ,
a[n]                                                
limited liability company, on behalf of such company.

	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  My commission will expire:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

NEVADA NOTARY BLOCKS

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss.

  
	
  County of

  	
  )

  

 

This instrument was acknowledged before me on                                     ,
200        , by                                 ,
as                                   
of                                     ,
a[n]                                            
limited liability company, on behalf of such company.

	
  (SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
  My commission will expire:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

 

EXHIBIT A

Legal Description

(see attached)

 

 A-I

 

Timeshare Portion:

Real property in the City of, County of CLARK,
State of NEVADA, described as follows:

Parcel I:

Parcel NC

A portion of Lot 1 as
shown in that certain Final Map entitled “Aladdin Commercial Subdivision”
recorded in Book 96, Page 33 of Plats on file at the Clark County, Nevada
Recorder’s Office and lying within a portion of the Northwest Quarter (NW1/4)
of Section 21, Township 21 South, Range 61 East, M.D.M., Clark County, Nevada,
more particularly described as follows:

Commencing at the Southwest
corner of the Northwest Quarter (NW 1/4) of said section 21 being on the
centerline of Harmon Avenue; Thence along the South line of the Northwest
Quarter (NW 1⁄4) of Section 21 and the Centerline of Harmon Avenue, North 89°31’10”
East, 904.20 feet; Thence departing said South line and street centerline,
North 00°28’50” West, 93.28 feet to the Northerly right-of-way of said Harmon
Avenue, to a point hereafter referred to as Point ‘A’ and being the Point of
Beginning; Thence dparting said Northerly right-of-way, North 00°36’40” West,
142.49 feet to the beginning of a curve , concave Southeasterly and having a
radius of 130.00 feet; Thence Northeasterly along said curve to the right,
through a central angle of 90°00’00”, an arc length of 204.20 feet to a point
of tangency; Thence North 89°23’20” East, 511.60 feet to the Westerly
right-of-way of Audrie Lane; Thence along said Westerly right-of-way, South
00°36’40” East, 282.16 feet to the beginning of a curve, concave Northwesterly
and having a radius of 30.00 feet; Thence Southwesterly along said curve to the
right, through a central angle of 90°07’50”, an arc length of 47.19 feet to the
Northerly right-of-way of said Harmon Avenue; Thence along said Northerly
right-of-way , the following seven (7) courses: (1) South 89°31’10” West, 72.93
feet to the beginning of a curve concave Northerly and having a radius of 25.00
feet; Thence (2) Westerly along said curve to the right through a central angle
of 09°27’42”, an arc length of 4.13 feet; Thence (3) North 81°01’08” West,
68.86 feet to the beginning of a curve concave Southerly and having a radius of
25.00 feet; Thence (4) Westerly along said curve, through a central angle of
09°27’42”, an arc length of 4.13 feet; Thence (5) South 89°31’10” West, 396.66
feet to the beginning of a curve concave Northeasterly and having a radius of
30.00 feet; Thence (6) Northwesterly along said curve to the right, through a
central angle of 93°33”45”, an arc length of 48.99 feet to a point of
non-tangency, a radial line to said point bears North 86°55’05” West; Thence
(7) South 80°41’11” West, 36.38 feet to the Point of Beginning.

Parcel NC has an upper
elevation of infinity.

Excepting therefrom the
following described area:

Parcel NB 11 as shown in
File 111, Page 83 of Surveys on file at the Clark County, Nevada Recorders
Office described as follows:

Commencing at the
aforementioned Point “A”; Thence North 00°36’40” West, 132.97 feet to the Point
of Beginning; Thence North 00°36’40” West, 9.51 feet to the beginning of a
curve concave Southeasterly and having a radius of 130.00 feet; Thence
Northeasterly along said curve to the right through a central angle of 90°00’00”,
an arc length of 204.20 feet; Thence North 89°23’20” East, 105.35 feet; Thence
South 44°22’41” West, 101.35 feet; Thence South 89°21’45” West, 101.25 feet;
Thence South 00°25’39” East, 67.78 feet; Thence South 89°22’54” West, 62.23
feet to the Point of Beginning.

Further Excepting
therefrom the following described area:

Parcel NB 11 has a lower
plane elevation of 2144.29 feet and an upper plane elevation of 2173.00 feet.

Parcel NB 7 as shown in
File 111, Page 82 of Surveys on file at the Clark County, Nevada Recorder’s
Office described as follows;

Beginning at the
aforementioned Point “A”; Thence North 00°36’40” West, 132.97 feet; Thence
North 89°22’54” East, 62.23 feet; Thence South 00°25’39” East, 159.12 feet to
the Northerly right-of-way of said Harmon Avenue and being a point on a
non-tangent curve, concave Northeasterly and having a radius of 30.00 feet,
from which a radius bears North 07°23’15” East; Thence Northwesterly along said
right-of-way and curve, through a central angle of 85°41’41”, an arc length of
44.87 feet to a point of non-tangency, a radial line to said point bears North
86°55’05” West; Thence along a non-tangent line, South 80°41’11” West, 36.38
feet to the Point of Beginning.

Parcel NB 7 has a lower
plane elevation of 2117.29 feet and an upper elevation of infinity.

Parcel II:

A non-exclusive easement
for pedestrian and vehicular ingress and egress, for passage and parking of
vehicles, utilities, maintenance and otherwise, for pedestrian passage access
and passage and to use the exit stairways and walkways as set forth in that
certain construction, operation and reciprocal easement agreement recorded
March 2, 1998 in Book 980302 as Instrument No. 00003 and re-recorded March 24,
1998 in Book 980324 as Instrument No. 01111 and re-recorded May 29, 1998 in
Book 980529 as Instrument No. 02358 and re-recorded October 22, 1998 in Book
981022 as Instrument No. 00509 and amended by that certain document recorded
November 20, 2000 in Book 20001120 as Instrument No. 00858 of Official Records,
Clark County, Nevada, and amended by that certain document recorded March 31,
2003 in Book 20030331 of Official Records, Clark County, Nevada, as Instrument
No. 04875.

Parcel III:

A non-exclusive right to
use that certain multi-level parking structure and surface-level parking
facilities as set forth in that certain memorandum of parking area use
agreement recorded March 2, 1998 in Book 980302 as Instrument No. 00005 and
re-recorded May 29, 1998 in Book 980529 as Instrument No. 02360 of Official
Records, Clark County Nevada.

 

 

EXHIBIT B

Definitions

“Commercial Tort Claims” shall have the meaning
ascribed thereto in the Uniform Commercial Code.

“Contracts” shall mean, collectively, all
agreements entered into by any Pledgor or by any other Person on behalf of
Trustor or assumed by Trustor, relating to the ownership, operation or
maintenance of the Premises or any other Property, all rights, privileges and
powers under Operating Agreements (which shall include, without limitation, the
rights of the Trustor under any and all extensions, modifications, amendments
and renewals of such leases, contracts and agreements and all rights of Trustor
to receive moneys due or to become due thereunder or pursuant thereto and to
amend, modify, terminate or exercise rights under such leases, contracts and
agreements, but, subject to the applicable provisions of the other Loan
Documents, excluding any rights under (but not excluding Proceeds of) any such
lease, contract or agreement that by the terms thereof, or under applicable
law, cannot be assigned or a security interest granted therein in the manner
contemplated by this Agreement unless consent from the relevant party or
parties has been obtained and under the terms of which lease, contract or
agreement any such assignment or grant of a security interest therein in the
absence of such consent would, or could, result in a breach thereof, but only
to the extent that (y) such rights are subject to such contractual or legal
restriction and (z) such restriction is not, or could not be, rendered ineffective
pursuant to the Uniform Commercial Code or any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity.

“Copyrights” shall mean, collectively, all of
each Trustor’s copyrights, copyright registrations and applications for
copyright registration under the laws of the United States or any other country
or jurisdiction, including all recordings, supplemental registrations and
derivative or collective work registrations, and all renewals and extensions thereof,
in each case whether published or unpublished, now owned or existing or created
or hereafter acquired or arising.

“Copyright Collateral” shall mean,
collectively, all Copyrights and Copyright Licenses to which any Pledgor is or
hereafter becomes a party and all other General Intangibles embodying,
incorporating, evidencing or otherwise relating or pertaining to any Copyright
or Copyright License, in each case whether now owned or existing or hereafter
acquired or arising.

“Copyright License” shall mean any agreement
now or hereafter in effect granting any right to any third party under any
Copyright now or hereafter owned by Trustor or which Trustor otherwise has the
right to license, or granting any right to Trustor under any property of the
type described in the definition of Copyright herein now or hereafter owned by
any third party, and all rights of Trustor under any such agreement, but,
subject to the applicable provisions of the other Loan Documents, excluding any
rights under (but not excluding Proceeds of) any such agreement that by the
terms thereof, or under applicable law, cannot be assigned or a security 

 B-1
 

interest granted therein in the manner contemplated by
this Agreement, unless consent from the relevant party or parties has been
obtained and under the terms of which agreement any such assignment or grant of
a security interest therein in the absence of such consent would, or could,
result in a breach thereof, but only to the extent that (y) such rights are
subject to such contractual or legal restriction and (z) such restriction is
not, or could not be, rendered ineffective pursuant to the Uniform Commercial
Code or any relevant jurisdiction or any other applicable law (including the
Bankruptcy Code) or principles of equity.

“Domain Name” shall mean the combination of
words and abbreviations that represents a uniquely identifiable internet
protocol address of a World Wide Web internet location.

“Gaming Authority” means any of the Nevada
Gaming Commission, the Nevada State Gaming Control Board, the Clark County
Liquor and Gaming Licensing Board, the City of Las Vegas and any other gaming
regulatory body or any agency which has, or may at any time after the Closing
Date have, jurisdiction over the gaming activities of the Premises or any successor
to such authority.

“Gaming Equipment” means the gaming equipment
and gaming devices which are regulated gaming devices under any Gaming Laws
(including but not limited to slot machines, gaming tables, cards, dice,
cashless wagering systems and tangible associated equipment (as defined in NRS
463.0136) and other applicable law) together with all improvements and/or
additions thereto.

“Gaming Laws” means the provisions of the
Nevada Gaming Control Act, as amended from time to time, all regulations of the
Nevada Gaming Commission promulgated thereunder, as amended from time to time,
the provisions of the Clark County Code, as amended from time to time, and all
other laws, statutes, rules, rulings, orders, ordinances, regulations and other
Legal Requirements of any Gaming Authority.

“General Intangibles” shall have the meaning
ascribed thereto in the Uniform Commercial Code, including, without limitation,
all Contracts, all Copyright Collateral, all Patent Collateral, all Trademark
Collateral, all Domain Name registrations, all trade secrets, all Intercompany
Obligations, all rights under or evidenced by choses in action or causes of
action, all judgments, tax refund claims, claims against carriers and shippers,
claims under liens and insurance policies, all rights under security
agreements, guarantees, indemnities and other instruments and contracts
securing or otherwise relating to any of the foregoing, and all other
intangible personal property of every kind and nature, and all accessions,
additions, improvements, modifications and upgrades to, replacements of and
substitutions for the foregoing, in each case whether now owned or existing or
hereafter acquired or arising, but excluding Accounts and excluding leases,
contracts and agreements (including, without limitation, Licenses) to the
extent excluded from Contracts under the definition of such term herein.  For the purposes of this Agreement, General
Intangibles shall include Commercial Tort Claims and shall include all
contractual or other rights of the Borrower to receive Marketing Fees in
whatever form that such Marketing Fees or rights to receive such Marketing Fees
arise (including all Accounts, General Intangibles, Investment Property, Letter
of Credit Rights and all other rights of payment of any kind in respect of such
Marketing Fees) (the “Development Commissions”).

 B-2
 

“Instruments” shall have the meaning ascribed
thereto in the Uniform Commercial Code, whether now owned or existing or
hereafter acquired, including those evidencing, representing, securing, arising
from or otherwise relating to any Accounts, Intercompany Obligations or other
Collateral.

“Intercompany Obligations” shall mean,
collectively, all indebtedness, obligations and other amounts at any time owing
to Trustor from any of Trustor’s subsidiaries or affiliates and all interest,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such
indebtedness, obligations or other amounts.

“License” shall mean any Copyright License,
Patent License or Trademark License.

“Patents” shall mean, collectively, all of
Trustor’s letters patent, whether under the laws of the United States or any
other country or jurisdiction, all recordings and registrations thereof and
applications therefor, including, without limitation, the inventions described
therein, all reissues, continuations, divisions, renewals, extensions,
continuations-in-part thereof, in each case whether now owned or existing or
hereafter acquired or arising.

“Patent Collateral” shall mean, collectively,
all Patents and all Patent Licenses to which any Trustor is or hereafter
becomes a party and all other General Intangibles embodying, incorporating,
evidencing or otherwise relating or pertaining to any Patent or Patent License,
in each case whether now owned or existing or hereafter acquired or arising.

“Patent License” shall mean any agreement,
whether written or oral, now or hereafter in effect granting to any third party
any right to make, use or sell any invention on which a Patent, now or
hereafter owned by Trustor or which Trustor otherwise has the right to license,
is in existence, or granting to Trustor any right to make, use, sell, offer to
sell or import any invention on which property of the type described in the
definition of Patent herein, now or hereafter owned by any third party, is in
existence, and all rights of Trustor under any such agreement, but, subject to
the applicable provisions of the other Loan Documents, excluding any rights
under (but not excluding Proceeds of) any such agreement that by the terms
thereof, or under applicable law, cannot be assigned or a security interest
granted therein in the manner contemplated by this Agreement, unless consent
from the relevant party or parties has been obtained and under the terms of
which agreement any such assignment or grant of a security interest therein in
the absence of such consent would, or could, result in a breach thereof, but
only to the extent that (y) such rights are subject to such contractual or
legal restriction and (z) such restriction is not, or could not be, rendered
ineffective pursuant to the Uniform Commercial Code or any relevant
jurisdiction or any other applicable law (including the Bankruptcy Code) or
principles of equity.

“Trademarks” shall mean, collectively, all of
Trustor’s trademarks, service marks, trade names, corporate and company names,
business names, fictitious business names, logos, trade dress, trade styles,
other source or business identifiers, designs and general intangibles of a
similar nature, whether under the laws of the United States or any other
country or jurisdiction, all recordings and registrations thereof and
applications therefor (but excluding any application to register any trademark,
service mark or other mark prior to the filing under applicable law of a 

 B-3
 

verified statement of use (or the equivalent) for such
trademark, service mark or other mark if the creation of a Lien thereon or
security interest therein would void or invalidate such trademark, service mark
or other mark), all renewals and extensions thereof, all rights corresponding
thereto, and all goodwill associated therewith or symbolized thereby, in each
case whether now owned or existing or hereafter acquired or arising.

“Trademark Collateral” shall mean,
collectively, all Trademarks and Trademark Licenses to which Trustor is or
hereafter becomes a party and all other General Intangibles embodying,
incorporating, evidencing or otherwise relating or pertaining to any Trademark
or Trademark License, in each case whether now owned or existing or hereafter
acquired or arising.

“Trademark License” shall mean any agreement,
whether written or oral, now or hereafter in effect granting any
right to any third party under any Trademark now or hereafter owned by Trustor
or which Trustor otherwise has the right to license, or granting any right to
Trustor under any property of the type described in the definition of Trademark
herein now or hereafter owned by any third party, and all rights of Trustor
under any such agreement (including, without limitation, the license to use the
Trademarks set forth in the License Agreement), but, subject to the applicable
provisions of the other Loan Documents, excluding any rights under (but not
excluding Proceeds of) any such agreement that by the terms thereof, or under
applicable law, cannot be assigned or a security interest granted therein in
the manner contemplated by this Agreement, unless consent from the relevant
party or parties has been obtained and under the terms of which agreement any
such assignment or grant of a security interest therein in the absence of such
consent would, or could, result in a breach thereof, but only to the extent
that (y) such rights are subject to such contractual or legal restriction and
(z) such restriction is not, or could not be, rendered ineffective
pursuant to the Uniform Commercial Code or any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity.

 

 B-4Exhibit 10.34

PROMISSORY NOTE

$820,000,000                                                                                                                                                     New
York, New York

November 30, 2006

FOR VALUE RECEIVED, PH FEE OWNER LLC, a Delaware
limited liability company (“Fee Owner”), and OPBIZ, L.L.C., a Nevada
limited liability company (“OpBiz” and, together with Fee Owner,
collectively, “Borrower”), each having its principal place of business
at 3667 Las Vegas Boulevard South, Las Vegas, Nevada 89109, hereby jointly and
severally as maker unconditionally promise to pay to the order of COLUMN
FINANCIAL, INC., a Delaware corporation (together with its successors and
assigns, “Lender”), as lender, having an address at 11 Madison Avenue,
New York, New York 10010, or at such other place as the holder hereof may from
time to time designate in writing, the principal sum of EIGHT HUNDRED TWENTY
MILLION DOLLARS ($820,000,000) or so much thereof as is advanced, in lawful
money of the United States of America, with interest thereon to be computed
from the date of this Note at the Applicable Interest Rate, and to be paid in
accordance with the terms of this Note and that certain Loan Agreement, dated
the date hereof (as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time, the “Loan Agreement”), between
Borrower and Lender.  All capitalized
terms not defined herein shall have the respective meanings set forth in the
Loan Agreement.

ARTICLE
1.
 PAYMENT TERMS

Borrower agrees to pay the principal sum of this Note
and interest on the unpaid principal sum of this Note from time to time
outstanding at the rates and at the times specified in Article 2 of the
Loan Agreement.  The outstanding balance
of the principal sum of this Note, all accrued and unpaid interest thereon and
all other sums due to Lender under the Loan Documents shall be due and payable
on the Maturity Date.

ARTICLE 2.

DEFAULT AND ACCELERATION

The Debt shall without notice become immediately due
and payable at the option of Lender if any payment required in this Note is not
paid on or prior to the date when due or if not paid on the Maturity Date or on
the happening of any other Event of Default.

ARTICLE 3.

LOAN DOCUMENTS

This Note is secured by the Security Instrument and
the other Loan Documents.  All of the
terms, covenants and conditions contained in the Loan Agreement, the Security
Instrument and the other Loan Documents are hereby made part of this Note to
the same extent and with the same force as if they were fully set forth
herein.  In the event of a conflict or
inconsistency between the terms of this Note and the Loan Agreement, the terms
and provisions of the Loan Agreement shall govern.

ARTICLE 4.

SAVINGS CLAUSE

Notwithstanding anything to the contrary: (a) all
agreements and communications between Borrower and Lender are hereby and shall
automatically be limited so that, after taking into account all amounts deemed
interest, the interest contracted for, charged or received by Lender shall
never exceed the Maximum Legal Rate; (b) in calculating whether any interest
exceeds the Maximum Legal Rate, all such interest shall be amortized, prorated,
allocated and spread over the full amount and term of all principal
indebtedness of Borrower to Lender; and (c) if through any contingency or
event Lender receives or is deemed to receive interest in excess of the Maximum
Legal Rate, any such excess shall be deemed to have been applied toward payment
of the principal of any and all then outstanding indebtedness of Borrower to
Lender.

ARTICLE 5.

NO ORAL CHANGE

This Note may not be modified, amended, waived,
extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Borrower or Lender, but only by an agreement in writing
signed by the party against whom enforcement of any modification, amendment,
waiver, extension, change, discharge or termination is sought.

ARTICLE 6.

WAIVERS

Borrower and all other Persons who may become liable
for the payment of all or any part of the Debt do hereby severally waive
presentment and demand for payment, notice of dishonor, notice of intention to
accelerate, notice of acceleration, protest and notice of protest and
non-payment and all other notices of any kind. 
No release of any security for the Debt or extension of time for payment
of this Note or any installment hereof, and no alteration, amendment or waiver
of any provision of this Note, the Loan Agreement or the other Loan Documents
made by agreement between Lender or any other Person shall release, modify,
amend, waive, extend, change, discharge, terminate or affect the liability of
Borrower or any other Person who may become liable for the payment of all or
any part of the Debt under this Note, the Loan Agreement or the other Loan
Documents.  No notice to or demand on
Borrower shall be deemed to be a waiver of the obligation of Borrower or of the
right of Lender to take further action without further notice or demand as
provided for in this Note, the Loan Agreement or the other Loan Documents.  If Borrower is a partnership, the agreements
herein contained shall remain in force and be applicable, notwithstanding any
changes in the partners comprising the partnership, and the term “Borrower” as
used herein shall include any alternate or successor partnership, but any
predecessor partnership and its partners shall not thereby be released from any
liability.  If any Borrower is a limited
liability company, the agreements herein contained shall remain in force and be
applicable, notwithstanding any changes in the members comprising the limited
liability company, and the term “Borrower” as used herein shall include any
alternate or successor limited liability company, but any predecessor limited
liability company and its members shall not thereby be released from any
liability.  If Borrower is a corporation,
the agreements contained herein shall remain in full force and be applicable
notwithstanding any changes in the shareholders comprising, or the officers and
directors relating to, the corporation, and the term 

 2
 

“Borrower” as used herein shall include any
alternative or successor corporation, but any predecessor corporation shall not
thereby be released from any liability. 
Nothing contained in this Article 6 shall be construed as a
consent to, or a waiver of, any prohibition or restriction on transfers of
interests in such partnership, limited liability company or corporation, as
applicable, which may be set forth in the Loan Agreement or any other Loan
Document.

ARTICLE 7.

TRANSFER OF NOTE

Upon the transfer of this Note, Borrower hereby
waiving notice of any such transfer, Lender may deliver all the collateral
mortgaged, granted, pledged or assigned pursuant to the Loan Documents, or any
part thereof, to the transferee who shall thereupon become vested with all the
rights herein or under applicable law given to Lender with respect thereto, and
Lender shall thereafter forever be relieved and fully discharged from any
liability or responsibility in the matter; but Lender shall retain all rights
hereby given to it with respect to any liabilities and the collateral not so
transferred.

ARTICLE 8.

EXCULPATION

The provisions of Section 9.4 of the Loan
Agreement are hereby incorporated by reference into this Note to the same
extent and with the same force as if fully set forth herein.

ARTICLE 9.

GOVERNING LAW

The provisions of Section 10.3 of the Loan
Agreement are hereby incorporated by reference into this Note to the same
extent and with the same force as if fully set forth herein.

ARTICLE 10.

NOTICES

All notices or other written communications hereunder
shall be delivered in accordance with Section 10.6 of the Loan
Agreement.

ARTICLE 11.

JOINT AND SEVERAL LIABILITY

If Borrower consists of more than one Person, the
obligations and liabilities of each such Person shall be joint and several.

[NO FURTHER TEXT
ON THIS PAGE]

 

 3

IN WITNESS WHEREOF, Borrower has duly executed this
Note as of the day and year first above written.

	
   

  	
  PH FEE OWNER LLC, a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  OPBIZ, L.L.C., a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

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