Document:

Exhibit 10.31

LOAN AGREEMENT

Dated as of November 30, 2006

Between

PH FEE OWNER LLC,

and

OPBIZ, L.L.C.

collectively, as Borrower

and

COLUMN FINANCIAL, INC.,

as Lender

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I. 

  	
  DEFINITIONS; PRINCIPLES OF CONSTRUCTION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.1.

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2.

  	
   

  	
  Principles of Construction

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II. 

  	
  GENERAL TERMS

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.1.

  	
   

  	
  Loan Commitment; Disbursement to Borrower

  	
   

  	
  59

  
	
  Section 2.2.

  	
   

  	
  Interest Rate

  	
   

  	
  62

  
	
  Section 2.3.

  	
   

  	
  Loan Payment

  	
   

  	
  67

  
	
  Section 2.4.

  	
   

  	
  Prepayments

  	
   

  	
  68

  
	
  Section 2.5.

  	
   

  	
  Release of Property

  	
   

  	
  69

  
	
  Section 2.6.

  	
   

  	
  Cash Management

  	
   

  	
  70

  
	
  Section 2.7.

  	
   

  	
  Extension of the Initial Maturity Date

  	
   

  	
  75

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III. 

  	
  PROJECT FUNDING AND CONSTRUCTION MATTERS

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.1.

  	
   

  	
  Project Funding Advances

  	
   

  	
  76

  
	
  Section 3.2.

  	
   

  	
  Renovation Project Representations

  	
   

  	
  90

  
	
  Section 3.3.

  	
   

  	
  Renovation Project Construction Covenants

  	
   

  	
  92

  
	
  Section 3.4.

  	
   

  	
  Construction Consultant

  	
   

  	
  96

  
	
  Section 3.5.

  	
   

  	
  Subrogation Rights of Lender

  	
   

  	
  97

  
	
  Section 3.6.

  	
   

  	
  Retainage

  	
   

  	
  97

  
	
  Section 3.7.

  	
   

  	
  Direct Advances

  	
   

  	
  98

  
	
  Section 3.8.

  	
   

  	
  Partial Advances

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV. 

  	
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.1.

  	
   

  	
  Borrower Party and Property Representations

  	
   

  	
  99

  
	
  Section 4.2.

  	
   

  	
  Survival of Representations

  	
   

  	
  112

  
	
  Section 4.3.

  	
   

  	
  Status of Borrower

  	
   

  	
  112

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V. 

  	
  BORROWER COVENANTS

  	
   

  	
  112

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.1.

  	
   

  	
  Affirmative Covenants

  	
   

  	
  112

  
	
  Section 5.2.

  	
   

  	
  Negative Covenants

  	
   

  	
  132

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI. 

  	
  INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

  	
   

  	
  147

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.1.

  	
   

  	
  Insurance

  	
   

  	
  147

  
	
  Section 6.2.

  	
   

  	
  Casualty

  	
   

  	
  151

  
	
  Section 6.3.

  	
   

  	
  Condemnation

  	
   

  	
  151

  
						

 

 i
 

 

	
  Section 6.4.

  	
   

  	
  Restoration

  	
   

  	
  152

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII. 

  	
  RESERVE FUNDS

  	
   

  	
  156

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.1.

  	
   

  	
  Required Repair and Remediation Account

  	
   

  	
  156

  
	
  Section 7.2.

  	
   

  	
  Tax and Insurance Escrow Account

  	
   

  	
  157

  
	
  Section 7.3.

  	
   

  	
  FF&E Reserve Account

  	
   

  	
  157

  
	
  Section 7.4.

  	
   

  	
  Interest Reserve Account

  	
   

  	
  158

  
	
  Section 7.5.

  	
   

  	
  Renovation Project Reserve Account

  	
   

  	
  160

  
	
  Section 7.6.

  	
   

  	
  Timeshare Project Proceeds Account

  	
   

  	
  160

  
	
  Section 7.7.

  	
   

  	
  Excess Cash Reserve Account

  	
   

  	
  161

  
	
  Section 7.8.

  	
   

  	
  Future Project Reserve Account

  	
   

  	
  162

  
	
  Section 7.9.

  	
   

  	
  General Reserve Account

  	
   

  	
  162

  
	
  Section 7.10.

  	
   

  	
  Accrual Adjustment Reserve Account

  	
   

  	
  164

  
	
  Section 7.11.

  	
   

  	
  Letter of Credit

  	
   

  	
  165

  
	
  Section 7.12.

  	
   

  	
  Reserve Funds Generally

  	
   

  	
  166

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII. 

  	
  DEFAULTS

  	
   

  	
  166

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.1.

  	
   

  	
  Event of Default

  	
   

  	
  166

  
	
  Section 8.2.

  	
   

  	
  Remedies

  	
   

  	
  170

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX. 

  	
  SPECIAL PROVISIONS

  	
   

  	
  172

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.1.

  	
   

  	
  Sale of Note and Securitization; Mezzanine Loans

  	
   

  	
  172

  
	
  Section 9.2.

  	
   

  	
  Securitization Indemnification

  	
   

  	
  175

  
	
  Section 9.3.

  	
   

  	
  Real Property Indemnifications

  	
   

  	
  178

  
	
  Section 9.4.

  	
   

  	
  Exculpation

  	
   

  	
  180

  
	
  Section 9.5.

  	
   

  	
  Servicer

  	
   

  	
  183

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X. 

  	
  MISCELLANEOUS

  	
   

  	
  183

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.1.

  	
   

  	
  Survival

  	
   

  	
  183

  
	
  Section 10.2.

  	
   

  	
  Lender’s Discretion

  	
   

  	
  183

  
	
  Section 10.3.

  	
   

  	
  GOVERNING LAW

  	
   

  	
  183

  
	
  Section 10.4.

  	
   

  	
  Modification, Waiver in Writing

  	
   

  	
  185

  
	
  Section 10.5.

  	
   

  	
  Delay Not a Waiver

  	
   

  	
  185

  
	
  Section 10.6.

  	
   

  	
  Notices

  	
   

  	
  185

  
	
  Section 10.7.

  	
   

  	
  TRIAL BY JURY

  	
   

  	
  186

  
	
  Section 10.8.

  	
   

  	
  Headings

  	
   

  	
  186

  
	
  Section 10.9.

  	
   

  	
  Severability

  	
   

  	
  187

  
	
  Section 10.10.

  	
   

  	
  Preferences

  	
   

  	
  187

  
	
  Section 10.11.

  	
   

  	
  Waiver of Notice

  	
   

  	
  187

  
	
  Section 10.12.

  	
   

  	
  Remedies of Borrower

  	
   

  	
  187

  
	
  Section 10.13.

  	
   

  	
  Expenses and Indemnity

  	
   

  	
  187

  
	
  Section 10.14.

  	
   

  	
  Schedules Incorporated

  	
   

  	
  189

  
	
  Section 10.15.

  	
   

  	
  Offsets, Counterclaims and Defenses

  	
   

  	
  189

  
	
  Section 10.16.

  	
   

  	
  No Joint Venture or Partnership

  	
   

  	
  189

  
						

 

 ii
 

 

	
  Section 10.17.

  	
   

  	
  No Third Party Beneficiaries

  	
   

  	
  189

  
	
  Section 10.18.

  	
   

  	
  Publicity

  	
   

  	
  189

  
	
  Section 10.19.

  	
   

  	
  Waiver of Marshalling of Assets

  	
   

  	
  189

  
	
  Section 10.20.

  	
   

  	
  Waiver of Counterclaim

  	
   

  	
  190

  
	
  Section 10.21.

  	
   

  	
  Conflict; Construction of Documents; Reliance

  	
   

  	
  190

  
	
  Section 10.22.

  	
   

  	
  Brokers and Financial Advisors

  	
   

  	
  190

  
	
  Section 10.23.

  	
   

  	
  Prior Agreements

  	
   

  	
  191

  
	
  Section 10.24.

  	
   

  	
  Certain Additional Rights of Lender (VCOC)

  	
   

  	
  191

  
	
  Section 10.25.

  	
   

  	
  Future Funding and Assignment

  	
   

  	
  191

  
	
  Section 10.26.

  	
   

  	
  Counterparts

  	
   

  	
  192

  

 

 iii
 

 

	
  EXHIBITS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A

  	
   

  	
  —

  	
   

  	
  LOAN DOCUMENTS

  
	
  B

  	
   

  	
  —

  	
   

  	
  FORM OF ADVANCE REQUEST

  
	
  C

  	
   

  	
  —

  	
   

  	
  FORM OF BORROWER ADVANCE CERTIFICATION

  
	
  D

  	
   

  	
  —

  	
   

  	
  FORM OF ARCHITECT ADVANCE CERTIFICATION

  
	
  E

  	
   

  	
  —

  	
   

  	
  FORM OF TRADE CONTRACTOR LIEN WAIVER

  
	
  F

  	
   

  	
  —

  	
   

  	
  FORM OF TRADE CONTRACTOR PAYMENT RECEIPT

  
	
  G

  	
   

  	
  —

  	
   

  	
  FORM OF FINAL UNCONDITIONAL LIEN WAIVER

  
	
  H

  	
   

  	
  —

  	
   

  	
  FORM OF FINAL CONDITIONAL LIEN WAIVER

  
	
  I

  	
   

  	
  —

  	
   

  	
  FORM OF ARCHITECT FINAL COMPLETION CERTIFICATE

  
	
  J

  	
   

  	
  —

  	
   

  	
  FORM OF BORROWER FINAL COMPLETION CERTIFICATE

  
	
  K

  	
   

  	
  —

  	
   

  	
  FORM OF CONSTRUCTION CONSULTANT FINAL COMPLETION

  
	
   

  	
   

  	
   

  	
   

  	
  CERTIFICATE

  
	
  L

  	
   

  	
  —

  	
   

  	
  FORM OF ARCHITECT CONSENT

  
	
  M

  	
   

  	
  —

  	
   

  	
  FORM OF CONSTRUCTION MANAGER CONSENT

  
	
  N

  	
   

  	
  —

  	
   

  	
  FORM OF DEVELOPER CONSENT

  
	
  O

  	
   

  	
  —

  	
   

  	
  FORM OF ENGINEER CONSENT

  
	
  P

  	
   

  	
  —

  	
   

  	
  FORM OF GENERAL CONTRACTOR CONSENT

  
	
  Q

  	
   

  	
  —

  	
   

  	
  FORM OF MAJOR TRADE CONTRACTOR CONSENT

  
	
  R

  	
   

  	
  —

  	
   

  	
  FORM OF PATRIOT ACT CERTIFICATION

  
	
  S

  	
   

  	
  —

  	
   

  	
  FORM OF SECURITY AGREEMENT (COPYRIGHTS)

  
	
  T

  	
   

  	
  —

  	
   

  	
  FORM OF SECURITY AGREEMENT (TRADEMARKS)

  

 

	
  SCHEDULES:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I

  	
   

  	
  —

  	
   

  	
  ORGANIZATIONAL STRUCTURE CHART

  
	
  II-A

  	
   

  	
  —

  	
   

  	
  RESORT LAND

  
	
  II-B

  	
   

  	
  —

  	
   

  	
  HOTEL COMPONENT PREMISES

  
	
  II-C

  	
   

  	
  —

  	
   

  	
  CASINO COMPONENT PREMISES

  
	
  II-D

  	
   

  	
  —

  	
   

  	
  TPA COMPONENT PREMISES

  
	
  II-E

  	
   

  	
  —

  	
   

  	
  UTILITY COMPONENT PREMISES

  
	
  II-F

  	
   

  	
  —

  	
   

  	
  TIMESHARE PROJECT LAND

  
	
  III

  	
   

  	
  —

  	
   

  	
  LEASES AND OCCUPANCY AGREEMENTS

  
	
  IV

  	
   

  	
  —

  	
   

  	
  INTELLECTUAL PROPERTY COLLATERAL

  
	
  V

  	
   

  	
  —

  	
   

  	
  BORROWER ACCOUNTS

  
	
  VI

  	
   

  	
  —

  	
   

  	
  MATERIAL OPERATING AGREEMENTS

  
	
  VII

  	
   

  	
  —

  	
   

  	
  OPERATING PERMITS

  
	
  VIII

  	
   

  	
  —

  	
   

  	
  RENOVATION PROJECT PLANS AND SPECIFICATIONS

  
	
  IX

  	
   

  	
  —

  	
   

  	
  REQUIRED REPAIRS AND REMEDIATION

  
	
  X

  	
   

  	
  —

  	
   

  	
  POSSIBLE TIMESHARE PROJECT PARAMETERS

  
	
  XI

  	
   

  	
  —

  	
   

  	
  PENSION PLANS AND MULTIEMPLOYER PLANS

  
	
  XII

  	
   

  	
  —

  	
   

  	
  COLLECTIVE BARGAINING AGREEMENTS

  

 

 iv

LOAN AGREEMENT

LOAN AGREEMENT, dated as of November 30, 2006 (as
amended, restated, replaced, supplemented or otherwise modified from time to
time, this “Agreement”), between 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, individually or
collectively as the context indicates, “Borrower”), each having its
principal place of business at 3667 Las Vegas Boulevard South, Las Vegas,
Nevada 89109, and COLUMN FINANCIAL, INC., a Delaware corporation (together with
its successors and assigns, “Lender”), having an address at 11 Madison
Avenue, New York, New York 10010.

RECITALS:

WHEREAS, Borrower desires
to obtain the Loan (as hereinafter defined) from Lender; and

WHEREAS, Lender is willing to make the Loan to
Borrower, subject to and in accordance with the terms of this Agreement and the
other Loan Documents (as hereinafter defined).

NOW THEREFORE, in consideration of the making of the
Loan by Lender and the covenants, agreements, representations and warranties
set forth in this Agreement, the parties hereto hereby covenant, agree,
represent and warrant as follows:

ARTICLE I.

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

Section 1.1.            Definitions.  For all purposes of this Agreement, except as
otherwise expressly required or unless the context clearly indicates a contrary
intent:

“Acceptable Counterparty” shall mean any
counterparty to the Interest Rate Cap Agreement that has and shall maintain,
until the expiration of the applicable Interest Rate Cap Agreement a long-term
unsecured debt rating of at least “AA-” by S&P and “Aa3” from Moody’s,
which rating shall not include a “t” or otherwise reflect a termination risk,
and is otherwise reasonably acceptable to Lender.

“Accrual Adjustment Deposit Amount” shall have
the meaning set forth in Section 7.10.

“Accrual Adjustment Reserve Account” shall have
the meaning set forth in Section 7.10.

“Accrual Adjustment Reserve Funds” shall have
the meaning set forth in Section 7.10.

“Accrual Adjustment Withdrawal Funds” shall
have the meaning set forth in Section 7.10.

“Accrual Method” shall mean the accrual based
accounting method under GAAP.

“Additional Insolvency Opinion” shall have the
meaning set forth in Section 4.1.29(b).

“Adjusted Net Operating Income” shall mean, as
of the date of determination, the annualized amount of the amount obtained by
subtracting Operating Expenses for the previous 6-month period ending on such
date of determination from Gross Income from Operations for such period;
provided that, for the purposes of the foregoing, (i) Operating Expenses shall
not include amortization or federal, state and local income taxes properly
deducted in determining Net Operating Income in accordance with GAAP, (ii) Operating
Expenses shall include a deemed reserve for Capital Expenditures equal to three
percent (3%) of Gross Income from Operations for such period (but without
duplication of any amounts included in Operating Expenses), (iii) funds then on
deposit in the Interest Reserve Account shall be taken into account and
included in the determination of the applicable Net Operating Income, and (iv)
except in connection with the determination of the Debt Service Coverage Ratio
pursuant to Section 2.7, Gross Income from Operations shall not include
Timeshare Project Proceeds.

“Advance” shall mean, either individually or
collectively as the context indicates, the Base Loan Advance and/or any Future
Funding Advance made pursuant to this Agreement.

“Advance Date” shall mean (i) with respect to
the Base Loan Advance, the Closing Date, and (ii) with respect to any Future
Funding Advance, any Business Day on which Borrower shall request disbursement
of any Future Funding Advance in accordance with terms of this Agreement; provided
that, Borrower shall not be entitled to receive any Future Funding Advance more
than two (2) times in any calendar month.

“Advance Request” shall mean either (i) with
respect to a Project Advance, a Project Advance Request delivered in accordance
with the requirements of Section 3.1.6, or (ii) with respect to a Future
Funding Advance for any other purpose permitted hereunder, a written request by
Borrower to Lender with respect thereto delivered in accordance with the
requirements of Section 2.1.5.

“Affiliate” shall mean, with respect to any
Person, any other Person which, directly or indirectly, Controls, is Controlled
by or is under common Control with, the specified Person, including, without
limitation, any Person (a) which beneficially owns or holds, directly or
indirectly, ten percent (10%) or more of (i) any class of voting stock of the
specified Person, or (ii) the Equity Interests (with voting capacity) of a
Person, or (b) who (i) is a director or executive officer (or individual with
similar responsibilities) of the specified Person or (ii) if the Person does
not have directors or executive officers, has similar responsibilities to a
director or executive officer.

“Affiliated Manager” shall mean any Manager
that is an Affiliate of Borrower or Guarantor

“ALTA” shall mean American Land Title
Association, or any successor thereto.

“Alteration” shall mean any alteration,
improvement, demolition, construction or removal of all or any portion of the
Improvements at the Property.

 2
 

“Annual Budget” shall mean the operating
budget, including all planned Capital Expenditures (other than any Project)
relating to the Property prepared by, or on behalf of, Borrower for the
applicable Fiscal Year or other period; provided that the Annual Budget shall
not include any matters included in the any Project Budget.

“Anticipated Cost Report” shall mean, with
respect to any Project, a report prepared by (or on behalf of) Borrower, in
form and substance reasonably approved by Lender, which indicates the Project
Costs anticipated to complete such Project, after giving effect to Project
Costs incurred during the previous month and projected Project Costs for such
Project.

“Applicable Interest Rate” shall mean the rate
or rates at which the outstanding principal amount of the Loan bears interest
from time to time in accordance with the provisions of Section 2.2.3.

“Applicable Taxes” shall have the meaning set
forth in Section 2.2.3(e).

“Approved Annual Budget” shall have the meaning
set forth in Section 5.1.11(d).

“Approved
Bank” shall mean a bank or other financial institution
which has a minimum long term unsecured debt rating of at least “AA” by S&P
and Fitch and “Aa2” by Moody’s.

“Approved Capital Expenditures” shall mean,
individually or collectively as the context indicates, Capital Expenditures and
any other amounts expended from time to time with respect to Alterations,
repairs, replacements and/or improvements with respect to all or any portion of
the Property (excluding the Timeshare Project), in each case that (a) are not
paid or reimbursed to any Affiliate of Borrower, and (b) are either (i) set
forth in the Approved Annual Budget, (ii) set forth in an Officer’s Certificate
confirming the same and delivered to Lender in connection with any request for
disbursement of funds from the General Reserve Account pursuant to Section
7.9 or (iii) otherwise approved by Lender, such approval not to be
unreasonably withheld, conditioned or delayed.

“Approved Operating Expenses” shall mean,
individually or collectively as the context indicates, Operating Expenses
expended from time to time with respect to the Property (excluding the
Timeshare Project), in each case that (a) are not paid or reimbursed to any
Affiliate of Borrower, and (b) are either (i) set forth in the Approved Annual
Budget, (ii) set forth in an Officer’s Certificate confirming the same and
delivered to Lender in connection with any request for disbursement of funds
from the General Reserve Account pursuant to Section 7.9 or (iii)
otherwise approved by Lender, such approval not to be unreasonably withheld,
conditioned or delayed.

“Architect” shall mean, subject to any
applicable requirements of the Loan Documents, each of (i) Klai Juba
Architects, the architect engaged by (or on behalf of) Borrower with respect to
the Renovation Project on the date hereof, (ii) Casino Excitement, Inc. d/b/a
Casino Lighting and Sign, the architect engaged by (or on behalf of) Borrower
with respect to the facade and plaza design portions of the Renovation Project
on the date hereof, (iii) any other architect engaged by (or on behalf of)
Borrower with respect to any Project after the date hereof and approved by
Lender in its reasonable discretion, and (iv) any successor of any of the
foregoing, in each case as approved by Lender in its reasonable discretion.

 3
 

“Architect Agreement” shall mean, with respect
to each Architect, any agreement for architectural and related services entered
into by (or on behalf of) Borrower, or any Affiliate thereof, with such
Architect, in each case as approved by Lender in its reasonable discretion, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“Architect Consent” shall mean, with respect to
each Architect, an Architect Certification and Consent Agreement executed and
delivered by such Architect in favor of Lender and substantially in the form
attached as Exhibit L, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

“Architect Final Completion Certificate” shall
mean, with respect to any Project, a certificate substantially in the form of Exhibit
I hereto.

“Assignment of Contracts” shall mean that
certain first priority Assignment of Contracts, Operating Permits and
Construction Permits, dated as of the date hereof, from Borrower, as assignor,
to Lender, as assignee, assigning to Lender all of Borrower’s right, title and
interest in and to the Contracts, the Operating Permits and the Construction
Permits as security for the Loan, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time

“Assignment of Leases” shall mean that certain
first priority Assignment of Leases and Rents, dated as of the date hereof,
from Borrower, as assignor, to Lender, as assignee, assigning to Lender all of
Borrower’s right, title and interest in and to the Leases and Rents as security
for the Loan, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.

“Assignment of Management Agreement” shall mean
(a) on the date hereof, that certain Manager Subordination and Cooperation
Agreement, dated as of the date hereof, made by Sheraton Manager in favor of
Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time, (b) after the date hereof, any
replacement assignment, subordination and cooperation agreement entered into
pursuant to the terms hereof with any replacement Manager that is not an
Affiliate of Borrower, which agreement shall be in form and substance
substantially the same as the Manager Subordination and Cooperation Agreement,
dated as of the date hereof, made by Sheraton Manager in favor of Lender, or
otherwise reasonably satisfactory to Lender, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, and
(c) after the date hereof, any replacement assignment, subordination and
cooperation agreement entered into pursuant to the terms hereof with any
replacement Manager that is an Affiliate of Borrower, which agreement shall be
in Lender’s then usual and customary form and otherwise reasonably satisfactory
to Lender (except that the same shall specifically provide that (i) Manager shall
not be entitled to receive any management or other fees thereunder during the
existence of an Event of Default, and (ii) Lender shall have the right to
terminate the applicable replacement Management Agreement without cost or
penalty at any time upon and during the continuance of an Event of Default), as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time.

 4
 

“Assumed Note Rate” shall have the meaning set
forth in Section 2.4.4.

“Award” shall mean any compensation paid by any
Governmental Authority in connection with a Condemnation.

“Bankruptcy
Action” shall mean with respect to any Person
(a) such Person filing a voluntary petition under the Bankruptcy Code or
any other Federal or state bankruptcy or insolvency law; (b) the filing of an
involuntary petition against such Person under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law in which such Person colludes
with, or otherwise assists such Person, or soliciting or causing to be solicited
petitioning creditors for any involuntary petition against such Person;
(c) such Person filing an answer consenting to or otherwise acquiescing in
or joining in any involuntary petition filed against it, by any other Person
under the Bankruptcy Code or any other Federal or state bankruptcy or
insolvency law; (d) such Person consenting to or acquiescing in or joining in
an application for the appointment of a custodian, receiver, trustee, or
examiner for such Person or any portion of the Property; or (e) such Person
making an assignment for the benefit of creditors, or admitting, in writing or
in any legal proceeding, its insolvency or inability to pay its debts as they
become due.

“Bankruptcy Code” shall mean, 11 U.S.C. § 101 et. Seq., as the same may be amended from
time to time.

“Base Loan” shall mean that portion of the Loan
to be made by Lender to Borrower on the date hereof pursuant to this Agreement
in the principal amount equal to the Base Loan Allocation.

“Base Loan Advance” shall mean the advance of
the Base Loan Amount made on the date hereof pursuant to the provisions of this
Agreement.

“Base Loan Allocation” shall mean an amount
equal to $759,670,000.

“Base Loan Amount” shall mean the portion of
the principal amount of the Loan advanced pursuant to this Agreement on the
date hereof in an amount equal to the Base Loan Allocation and evidenced by the
Note.

“Basic Carrying Costs” shall mean, for any
period, the sum of Taxes and Insurance Premiums.

“BH Guarantor” shall mean, individually or collectively
as the context indicates, each of (i) Trophy Hunter Investments, Ltd., a
Florida limited partnership, (ii) Bay Harbour 90-1, Ltd., a Florida limited
partnership, and (iii) Bay Harbour Master, Ltd., a Cayman exempted company,
together with their respective successors and permitted assigns.

“BHCH” shall mean BH Casino and Hospitality
LLC, a Delaware limited liability company Controlled by DT Guarantor and the
holder of a 40.75% direct economic interest in BH/RE.

 5
 

“BHCH II” shall mean BH Casino and Hospitality
II LLC, a Delaware limited liability company Controlled by DT Guarantor and the
holder of a 18.5% direct economic interest in BH/RE.

“BH/RE” shall mean BH/RE, L.L.C., a Nevada
limited liability company and the holder of a direct eighty-five percent (85%)
interest in EquityCo.

“BH Recourse Guaranty” shall mean that certain
Recourse Guaranty, dated as of the date hereof, made by each BH Guarantor in
favor of Lender, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time in accordance with the terms hereof.

“BH/RE-Starwood Agreement” shall mean that
certain Agreement, dated as of August 9, 2004, by and between Starwood NH,
Sheraton, BH/RE, EquityCo, OpBiz, and, for certain purposes as described
therein, Starwood, as the same may be amended, replaced, supplemented or
modified from time to time in accordance with the terms hereof.

“Borrower” shall have the meaning set forth in
the introductory paragraph hereto.

“Borrower Accounts” shall mean, collectively,
any and all bank and other deposit accounts owned, established, held or
maintained by or on behalf of Borrower or any of its Affiliates and relating to
the operation or management of the Property or any portion thereof, including
(without limitation) the Collection Accounts, the Borrower Disbursement
Account, the Construction Disbursement Account and any bank and other deposit
accounts of any Manager or any other Person, held on behalf of or for the
benefit of Borrower, each of the foregoing existing on the date hereof being
identified on Schedule V, as such accounts may be transferred, replaced,
supplemented or modified from time to time in accordance with the terms hereof.

“Borrower Advance Certification” shall mean the
certification to be provided by Borrower in connection with any request for a
Project Advance, in the form attached hereto as Exhibit C.

“Borrower Disbursement Account” shall mean an
account maintained by Borrower for its own account at Property Bank and with
such account number as may be designated in writing by Borrower to Lender from
time to time, and into which Excess Cash Flow and other amounts are to be
disbursed from time to time in accordance with, and subject to, the terms
hereof.

“Borrower Final Completion Certificate” shall
mean, with respect to any Project, a certificate substantially in the form of Exhibit
J hereto.

“Borrower Party” shall mean, individually or
collectively as the context indicates, each Borrower, TSP Owner, Guarantor and
any other Affiliate of Borrower that is a party to any Loan Document.

“Business Day” shall mean any day other than a
Saturday, Sunday or any other day on which national banks in New York, New York
are not open for business.

 6
 

“Capital Expenditures” shall mean, for any
period, the amount expended at, or with respect to the Property, for items
capitalized under GAAP (including expenditures for building improvements or
major repairs, leasing commissions, tenant improvements, FF&E and
Fixtures).

“Cash Expenses” shall mean, for any period, the
Operating Expenses for the operation of the Property for such period or accrued
and payable in such period, as set forth in an Approved Annual Budget to the
extent that such expenses are actually incurred or accrued for such period by
Borrower, less any payments into the Tax and Insurance Escrow Fund.

“Cash Management Account” shall mean that
certain segregated Eligible Account established on or prior to the date hereof
with Cash Management Bank entitled “PH Fee Owner LLC and OpBiz, L.L.C. Cash
Management Account f/b/o Column Financial, Inc. and its successors and assigns,
as secured party” with account number 327825049676 or, subject to the terms
hereof, such replacement cash management account established by Borrower at any
successor Cash Management Bank designated from time to time in accordance with
the terms hereof.

“Cash Management Account Agreement” shall mean
that certain acknowledgment and agreement, dated the date hereof, among Lender,
Borrower and Cash Management Bank, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

“Cash Management Bank” shall mean (i) on the
date hereof, Key Bank N.A., so long as the same remains an Eligible
Institution, (ii) after the date hereof, any successor Eligible Institution
designated as Cash Management Bank from time to time in accordance with the
terms hereof, or (iii) any other financial institution otherwise reasonably
approved by Lender and, if a Securitization has occurred, with respect to which
a Rating Agency Confirmation has been obtained.

“Casino Accounts” shall mean, collectively, (i)
‘cage’ account #4100155373 maintained by OpBiz at Property Bank, (ii) account
#4100155381 maintained by OpBiz at Property Bank, and (iii) such other account
established and maintained from time to time by OpBiz and reasonably approved
by Lender; provided, however, that, in each case of the foregoing, any
such Casino Account shall be established and maintained pursuant to, and in
accordance with, all applicable Gaming Laws and shall be subject to a security
interest in favor of Lender pursuant to the Loan Documents.

“Casino Component” shall mean that portion of
the Property devoted to the operation of a casino gaming operation and leased
by Fee Owner to OpBiz pursuant to the Casino Component Lease, including
(without limitation) those areas devoted to the conduct of games of chance,
facilities associated directly with gaming operations including, without
limitation, casino support areas such as surveillance and security areas, cash
cages, counting and accounting areas and gaming back-of-the-house areas in each
case, to the extent the operation thereof requires a Gaming License under
applicable Gaming Laws, all of the foregoing comprising the Casino Component
Premises and more particularly described and set forth in the Casino Component
Lease.

 7
 

“Casino Component Lease” shall mean that
certain Lease Agreement, dated as of the date hereof, between Fee Owner, as
lessor, and OpBiz, as lessee, pursuant to which Fee Owner has leased the Casino
Component to OpBiz upon and subject to the terms set forth therein, as the same
may be amended, supplemented, replaced or otherwise modified from time to time
in accordance with the provisions hereof.

“Casino Component Premises” shall mean that
portion of the Property described on Schedule II-C attached hereto, as
the same may be adjusted from time to time after the date hereof solely to the
extent required in order comply with applicable Gaming Laws.

“Casino Expansion Leases” shall mean,
collectively, each lease of space comprising a portion of the Retail Mall
deemed to be entered into by Retail Mall Owner, as lessor, and any Borrower, as
lessee, pursuant to the terms of Section 8 of the REA Amendment Agreement, such
space being referred to therein as “space G-21”, ‘space G-1A” and “space F-27”,
including (without limitation) the specific terms of each such lease set forth
in the REA Amendment Agreement and the general terms and provisions of the “standard
lease form” referred to therein, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.

“Casualty” shall mean any damage or
destruction, in whole or in part, by fire or other casualty of all or any
portion of the Property.

“Casualty Consultant” shall have the meaning
set forth in Section 6.4(b)(iii).

“Casualty Retainage” shall have the meaning set
forth in Section 6.4(b)(iv).

“Certificate of Occupancy” shall mean, with
respect to any Project, a permanent or temporary certificate of occupancy, in
either case, for the portion of such Project specified in such certificate of
occupancy issued by the applicable Governmental Authority pursuant to
applicable Legal Requirements which permanent or temporary certificate of
occupancy shall permit such portion of the Project covered thereby to be
lawfully occupied and used for its intended purposes, shall be in full force
and effect and, in the case of a temporary certificate of occupancy, shall
permit full use and lawful occupancy of the portions of the Project covered
thereby, and if such temporary certificate of occupancy shall provide for an
expiration date, any Punchlist Items which must be completed in order for such
temporary certificate of occupancy to be renewed or extended shall be completed
no later than fifteen (15) days prior to the applicable expiration date
thereof.

“Change of Control” shall mean any of the
following:

(i)            with respect to either Borrower, such
Borrower is no longer Controlled by either (A) DT Guarantor, or (B) two or more
of (I) DT Guarantor, (II) RE Guarantor, or (II) Starwood Sponsor;

(ii)           Fee Owner shall cease to directly own
100% of all Equity Interests of, and Control, TSP Owner;

 8
 

(iii)          MezzCo shall cease to directly own 100%
of all Equity Interests of, and Control, OpBiz;

(iv)          MezzCo shall cease to directly own
100% of all Equity Interests of, and Control, Mezz II Borrower;

(v)           Mezz II Borrower shall cease to
directly own 100% of all Equity Interests of, and Control, Mezz I Borrower;

(vi)          Mezz I Borrower shall cease to directly
own 100% of all Equity Interests of, and Control, Fee Owner;

(vii)         EquityCo shall cease to own 100% of all
Equity Interests of, and Control, MezzCo;

(viii)        with respect to either Borrower, any
Transfer, in one or a series of transactions, of more then 49% of the direct or
indirect interests in such Borrower, including (without limitation) any
Transfers as a result of (A) the exercise of any rights to acquire direct or
indirect interests in MezzCo or EquityCo by any MezzCo Warrantholders pursuant
to the MezzCo Warrant Documents, (B) the exercise of any rights to acquire
direct or indirect interests in MezzCo or EquityCo by any EquityCo
Warrantholders pursuant to the EquityCo Warrant Documents, and (C) the exercise
of any rights to acquire direct or indirect interests in OpBiz by any Person
pursuant to the Executive Options; provided, however, that any Transfer
of direct or indirect interests in each of BHCH, BHCH II, each BH Guarantor or
Starwood NH shall not be included in the determination of the foregoing so long
as the same shall not otherwise constitute a Change of Control hereunder;

(ix)           with respect to either Borrower,
MezzCo Warrantholders, either individually or in the aggregate, shall hold more
than 37.5% of the direct or indirect interests in MezzCo or MezzCo Warrantholders,
either individually or in the aggregate, shall obtain Control of such Borrower
pursuant to the MezzCo Warrant Documents;

(x)            with respect to either Borrower, any
EquityCo Warrantholders shall obtain Control of such Borrower pursuant to the
EquityCo Warrantholders Documents; or

(xi)           with respect to each BH Guarantor,
such BH Guarantor shall cease to be (A) Controlled by DT Guarantor, or (B)
jointly Controlled by DT Guarantor and Steven Van Dyke.

“Change Order” shall mean, with respect to any
Project, any amendment, deviation, supplement, addition, deletion, revision or
other modification in any respect to the Project Plan, the Plans and
Specifications, the Project Budget, the Construction Schedule, the Architect
Agreement, any Trade Contract, any other Construction Contract or Project
Document or the Work provided for therein relating to such Project.

“Closing Date” shall mean the date hereof.

 9
 

“Code” shall mean the Internal Revenue Code of
1986, as amended, as it may be further amended from time to time, and any
successor statutes thereto, and applicable U.S. Department of Treasury
regulations issued pursuant thereto in temporary or final form.

“Collateral Assignment of Interest Rate Cap
Agreement” shall mean that certain Collateral Assignment of Interest Rate
Cap Agreement, dated as of the date hereof, executed by Borrower in connection
with the Loan for the benefit of Lender, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.

“Collateral Assignment of Timeshare Project
Proceeds” shall mean that certain Collateral Assignment of Timeshare
Project Proceeds, dated as of the date hereof, executed by Borrower and TSP
Owner in connection with the Loan for the benefit of Lender, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

“Collection Account” shall mean, individually
or collectively as the context indicates, (i) that certain segregated Eligible
Account established by OpBiz with Property Bank entitled “OpBiz, L.L.C.
Merchant Account f/b/o Column Financial, Inc. and its successors and assigns,
as secured party” with account number 4100155381 and into which Borrower shall
cause all credit card receipts to be deposited pursuant to the terms hereof,
(ii) that certain segregated Eligible Account established by OpBiz with
Property Bank entitled “OpBiz, L.L.C. Collection Account f/b/o Column
Financial, Inc. and its successors and assigns, as secured party” with account
number 4121452775 and into which Borrower shall cause all Revenue (other than
credit card receipts) to be deposited pursuant to the terms hereof, excluding
any amounts properly retained by Borrower as the Gaming Operating Reserve in
one or more Casino Accounts in accordance with the terms hereof, and (iii)
subject to the terms hereof, such replacement collection account or accounts
established by Borrower at any successor Property Bank designated from time to
time in accordance with the terms hereof.

“Collection Account Agreement” shall mean that
certain Restricted Account Agreement, dated the date hereof, among Lender,
Borrower and Property Bank, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

“Comparable Standards” means (a) with respect
to the Hotel Component, the standards of management, operation and maintenance
of a first-class hotel of a like quality to the Paris Las Vegas Hotel and
Casino located at 3655 Las Vegas Boulevard South, Las Vegas, Nevada or in the
event that Lender reasonably determines that the foregoing is closed or no
longer maintains substantially the same standards as it did on the date hereof,
a such other hotel located in a
major city of the United States that is a vacation destination center at a
prime location as reasonably determined by Lender which is comparable to the
Hotel Component in location, size, facilities, quality and nature, (b) with
respect to the Casino Component, the standards of management, operation and
maintenance of a first-class casino which is comparable to the Casino Component
in location, size, facilities, quality and nature, and (c) with respect to the
TPA Component, the standards of management, operation and maintenance of a
first-class theater which is comparable to the TPA Component in location, size,
facilities, quality and nature.

“Completion Guaranty” shall mean that certain
Completion Guaranty, dated as of the date hereof, made by Guarantor in favor of
Lender, relating to the Renovation Project, as the 

 10
 

same may be amended, replaced, supplemented or
modified from time to time in accordance with the terms hereof.

“Condemnation” shall mean a temporary or
permanent taking by any Governmental Authority as the result or in lieu or in
anticipation of the exercise of the right of condemnation or eminent domain, of
all or any part of the Property, or any interest therein or right accruing
thereto, including any right of access thereto or any change of grade affecting
the Property or any part thereof.

“Condemnation Proceeds” shall have the meaning
set forth in Section 6.4(b).

“Construction Consultant” shall mean Inspection
& Valuation International, Inc., or such other Person as may be designated
by Lender in its sole discretion from time to time as construction consultant
to advise, consult and render reports to Lender concerning any Project.

“Construction Consultant Certificate” shall
mean, with respect to any Project Advance Request delivered hereunder in
connection with any Project, a certificate or report of the Construction
Consultant relating to such proposed Project Advance based upon a site
observation of such Project made by the Construction Consultant not more than
thirty (30) days prior to the applicable Advance Date, in form and substance
reasonably acceptable to Lender and certifying that:

(a)           Construction Consultant has received
all known Plans and Specifications applicable to the Project Advance requested
pursuant to the Project Advance Request, and in Construction Consultant’s
reasonable professional opinion, the work performed as of the date thereof is
in general accordance with the Plans and Specifications, and the Project
Advance requested pursuant to the Project Advance Request is generally in
accordance with the Project Budget and the Construction Schedule for such
Project.

(b)           All advances requested under the
Project Advance Request that are for the payment of Hard Costs have been
incurred for Work and materials actually performed and delivered and consistent
with the Plans and Specifications for such Project to date, except as set forth
in Section 3.1.12.

(c)           No Shortfall then exists.

(d)           The Project Advance Request does not
include any amounts in respect of Stored Materials or, if the Project Advance
Request does include amounts in respect of Stored Materials, then certifying
that the requirements of Section 3.1.12 are satisfied with respect to
such Stored Materials.

(e)           To the knowledge of Construction
Consultant (for which purpose it has, to the extent reasonably appropriate in
its professional judgment, relied upon observations, certifications and
responses of the applicable Architect and Persons employed for the construction
of the Project), the construction of the Project to the date of the Advance
Request has been performed in a good and workmanlike manner, in conformity with
good construction and engineering practices and in compliance in all material
respects 

 11
 

with the Plans and
Specifications and the Construction Schedule with respect to such Project
delivered to and approved by Lender.

(f)            Construction Consultant has reviewed
all Project Advance Requests made prior to the date hereof with respect to such
Project and compared the invoices or other documentation supporting such
advances with the Line Item category presently in effect and confirms that the
total advances to date in such Line Item category do not exceed the budgeted
amount for such category in any material respect.

(g)           The Project Budget for such Project
fairly represents in all material respects the Project Costs that it
anticipates will be incurred through the date of Substantial Completion in the
aggregate and for each Line Item in accordance with the Plans and
Specifications for such Project. 
Construction Consultant is not aware of any material costs that will be
needed to be paid or incurred by Borrower in order to cause Substantial
Completion to occur on or prior to the date required under the Loan Agreement
other than the Project Costs identified in the Project Budget for such
Project.  With respect to the Renovation
Project, Construction Consultant reasonably believes that Substantial
Completion of the Renovation Project will occur on or prior to the applicable
Renovation Project Substantial Completion Deadline.

(h)           Construction Consultant is not aware
of any other material costs that will be needed to be paid or incurred in order
to cause Final Completion of such Project to occur other than the Project Costs
identified in the Project Budget with respect to such Project.

“Construction Consultant Final Completion
Certificate” shall mean, with respect to any Project, a certificate
substantially in the form of Exhibit K hereto.

“Construction Contract” shall mean, with
respect to the any Project, collectively, any contract or agreement entered
into by (or on behalf of) Borrower or any Affiliate thereof for the development,
construction and equipping of such Project or any part thereof, including
(without limitation) any contract or agreement entered into by any Construction
Manager or General Contractor with respect to such Project and including, as
the context shall require, any Architect Agreement, any Developer Agreement,
any Construction Manager Agreement, any General Contractor Agreement, any
Engineer Agreement, any agreement with other design professionals engaged or
otherwise acting in connection with such Project or any part thereof and each
Trade Contract relating to such Project or any part thereof.

“Construction Disbursement Account” shall mean
an account maintained by Borrower at Property Bank for the payment of Project
Costs relating to any Project and with such account number as may be designated
in writing by Borrower to Lender from time to time, and into which the proceeds
of any Project Advance are to be disbursed as referred to in Section 3.1.2.

“Construction Manager” shall mean, subject to
any applicable requirements of the Loan Documents, each of (i) any construction
manager engaged by (or on behalf of) Borrower with respect to any Project after
the date hereof and approved by Lender in its reasonable discretion,

 12
 

and (ii) any successor of any of the foregoing, in
each case as approved by Lender in its reasonable discretion.

“Construction Manager Agreement” shall mean,
with respect to each Construction Manager, any agreement for construction
management and related services entered into by (or on behalf of) Borrower or
any Affiliate thereof with such Construction Manager, in each case as approved
by Lender in its reasonable discretion, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“Construction Manager Consent” shall mean, with
respect to any Construction Manager, a Construction Manager Certification and
Consent Agreement executed and delivered by such Construction Manager in favor
of Lender and substantially in the form attached as Exhibit M, as the
same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“Construction Permits” shall mean, with respect
to any Project, collectively, all authorizations, consents and approvals,
licenses and permits given or issued by Governmental Authorities which are
required for the construction and completion of such Project in accordance with
all Legal Requirements, the Plans and Specifications and the other Project
Documents relating to such Project, and for the performance and observance of
all obligations and agreements of Borrower or any relevant Affiliate thereof
contained herein.

“Construction Schedule” shall mean, with
respect to any Project, a schedule for the construction and completion of such
Project as a whole, in form and substance acceptable to Lender in its
reasonable discretion and including (without limitation) (i) a construction
progress schedule reflecting the anticipated dates of completion and the timing
of disbursements of incremental amounts of specified subcategories of the
Project Budget for such Project, (ii) a trade by trade breakdown of the
estimated periods of commencement and completion of the specific Work to be
completed in connection with such Project, and (iii) such other information as
the Construction Consultant shall reasonably require.

“Control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of management, policies or activities of a Person, whether
through ownership of voting securities, by contract or otherwise. “Controlled” and “Controlling” shall
have correlative meanings.

“Copyrights” shall mean, collectively, all
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.

“Cost Saving” shall mean, with respect to any
Project:

(i)            the difference between the amount of
a Line Item in the Project Budget for such Project and the amount expended for
such Line Item in the event that the component of the construction of such
Project (other than interest on the Loan payable hereunder) which is the
subject of such Line Item shall have been completed without the expenditure

 13
 

of the entire
amount allocated in such Project Budget to such Line Item, and all Trade
Contractors and other Persons have been paid in full for work performed and
materials provided with respect to such component which is the subject of such
Line Item, in each case as confirmed by Construction Consultant and reasonably
verified by Lender; or

(ii)           prior to the completion of the
component of the construction of such Project which is the subject of a Line
Item (other than the Line Item for interest payable hereunder or any Line Item
designated as “Contingency”), the amount of any Cost Saving that will be
realized pursuant to clause (i) above upon completion of such component, in
each case as confirmed by Construction Consultant and reasonably approved by
Lender.

“Counterparty” shall mean, with respect to each
Interest Rate Cap Agreement each Acceptable Counterparty that is a party
thereto, and with respect to any Replacement Interest Rate Cap Agreement, any
substitute Acceptable Counterparty.

“Covered Disclosure Information” shall have the
meaning set forth in Section 9.2(b).

“Credit Suisse” shall mean Credit Suisse
Securities (USA) LLC and its successors in interest.

“Debt” shall mean the outstanding principal
amount set forth in, and evidenced by, this Agreement and the Note together
with all interest accrued and unpaid thereon and all other sums due to Lender
in respect of the Loan under the Note, this Agreement, either Security
Instrument and the other Loan Documents.

“Debt Service” shall mean, with respect to any
particular period of time, scheduled interest payments due under this Agreement
and the Note.

“Debt Service Coverage Ratio” shall mean, on
any date of determination, the ratio in which (a) the numerator is Adjusted Net
Operating Income for the period ending on such date of determination, and (b)
the denominator is the annual interest that would be payable on the outstanding
principal balance of the Loan as of such date of determination (excluding any
portion of the Future Funding that has not been funded by Lender either to
Borrower or into the Renovation Project Reserve Account) if the Applicable
Interest Rate were equal to the Spread plus the average 12-month forward 30-day
LIBOR curve as of such date of determination.

“Default” shall mean the occurrence of any
event hereunder or under any other Loan Document which, but for the giving of
notice or passage of time, or both, would be an Event of Default.

“Default Rate” shall mean a rate per annum
equal to the lesser of (a) the Maximum Legal Rate and (b) four
percent (4%) above the Applicable Interest Rate.

“Deficiency Cash Collateral” shall have the
meaning set forth in Section 3.1.11(b)(iii).

“Deficiency Letter of Credit” shall have the
meaning set forth in Section 3.1.11(b)(iii).

 

 14

 

“Determination Date” shall mean, with respect
to any Interest Period, the date that is two (2) London Business Days prior to
the fifteenth (15th) day of the calendar month in which such
Interest Period commences.

“Developer” shall mean, subject to any applicable
requirements of the Loan Documents, each of (i) any developer engaged by (or on
behalf of) Borrower or any Affiliate thereof with respect to any Project after
the date hereof and approved by Lender in its reasonable discretion, and (ii)
any successor of any of the foregoing, in each case as approved by Lender in
its reasonable discretion.

“Developer Agreement” shall mean, with respect
to each Developer, any agreement for development and related services entered
into by (or on behalf of) Borrower or any Affiliate thereof with such
Developer, in each case as approved by Lender in its reasonable discretion, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“Developer Consent” shall mean, with respect to
any Developer, a Developer Certification and Consent Agreement executed and
delivered by such Developer in favor of Lender and substantially in the form
attached as Exhibit N, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

“Disbursement Schedule” shall mean, with
respect to any Project, a schedule of the monthly projected Project Advances to
be requested by Borrower throughout the applicable construction and development
period pursuant to the terms hereof, in form and substance acceptable to Lender
in its reasonable discretion.

“Disclosure
Document” shall mean a prospectus, prospectus supplement,
private placement memorandum, or similar offering memorandum or offering
circular, or other offering documents or marketing materials, in each case in
preliminary or final form, used to offer Securities in connection with a
Securitization.

“Disqualified Transferee” shall mean any Person
that is Controlled by or is under common Control with, or any Person that
Controls, a Person that, (i) has (within the past ten (10) years) defaulted, or
is now in default, beyond any applicable cure period, of its material
obligations, under any written agreement with Lender or any Affiliate of
Lender, (ii) has been convicted in a criminal proceeding for a felony or a
crime involving moral turpitude or that is an organized crime figure or is
reputed (as determined by Lender in its reasonable discretion) to have
substantial business or other affiliations with an organized crime figure;
(iii) has at any time filed a voluntary petition under the Bankruptcy Code;
(iv) as to which an involuntary petition has at any time been filed under the
Bankruptcy Code; (v) has at any time filed an answer consenting to or
acquiescing in any involuntary petition filed against it by any other person
under the Bankruptcy Code; (vi) has at any time consented to or acquiesced in
or joined in an application for the appointment of a custodian, receiver,
trustee or examiner for itself or any of its property; (vii) has at any time
made an assignment for the benefit of creditors, or has at any time admitted
its insolvency or inability to pay its debts as they become due; (viii) has
been found by a court of competent jurisdiction or other governmental authority
in a comparable proceeding to have 

 15
 

violated any federal or state securities laws or
regulations promulgated thereunder, or (ix) is an Embargoed Person, or is
directly or indirectly owned or Controlled by an Embargoed Person or is a
Person who (x) Controls a Restricted Party and (y) with respect to which a
PATRIOT Act Certification has not been delivered to Lender; provided that,
notwithstanding the foregoing, neither PHI nor any Affiliate thereof shall be
deemed to constitute a Disqualified Transferee as a result of the occurrence of
any event or the taking of any action described in clauses (iii), (iv), (v) and
(vi) of this definition prior to the date hereof.

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

“DSCR Sweep Period” shall mean any period (i)
commencing on any day following the last day of any calendar quarter if the
Debt Service Coverage Ratio, as reasonably determined by Lender, on such last
day of such calendar quarter is less than or equal to 1.20, and (ii) ending on
the last day of any calendar quarter if the Debt Service Coverage Ratio, as
reasonably determined by Lender following such date, and on the last day of the
immediately preceding calendar quarter, exceeds 1.20.  The first determination date for the purposes
of determining if a DSCR Sweep Period exists shall be the date hereof.

“DT Guarantor” shall mean, Douglas Teitelbaum,
an individual and the holder as of the date hereof of a fifty percent (50%)
voting interest in BH/RE, in his capacity as a Guarantor hereunder, together
with his successors and permitted assigns in such capacity.

“DT Recourse Guaranty” shall mean that certain
Recourse Guaranty, dated as of the date hereof, made by DT Guarantor in favor
of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

“EBITDA” shall mean, with respect to any
period, without duplication, (a) the sum of (i) Net Operating Income, (ii) Debt
Service, (iii) federal, state and local income taxes deducted in determining
Net Operating Income, and (iv) depreciation and amortization and other non-cash
items properly deducted in determining Net Operating Income, in each case
calculated in accordance with GAAP, minus (b) non-cash items properly added in
determining Net Operating Income for such period calculated in accordance with
GAAP.

“Eligible Account” shall mean a separate and
identifiable account from all other funds held by the holding institution that
is either (a) an account or accounts maintained with a federal or state-chartered
depository institution or trust company which complies with the definition of
Eligible Institution or (b) a segregated trust account or accounts
maintained with a federal or state chartered depository institution or trust
company acting in its fiduciary capacity which, in the case of a state
chartered depository institution or trust company, is subject to regulations
substantially similar to 12 C.F.R. § 9.10(b), having in either case a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by federal and state authority. 
An Eligible Account will not be evidenced by a certificate of deposit,
passbook or other instrument.

 16
 

“Eligible Institution” shall mean a depository
institution or trust company, the short term unsecured debt obligations or
commercial paper of which are rated at least “A-1+” by S&P, “P-1” by Moody’s
and “F-1+” by Fitch in the case of accounts in which funds are held for thirty
(30) days or less (or, in the case of accounts in which funds are held for more
than thirty (30) days, the long term unsecured debt obligations of which are
rated at least “AA” by Fitch and S&P and “Aa2” by Moody’s).

“Embargoed Person” shall have the meaning set
forth in Section 4.1.34.

“Engineer” shall mean, subject to any
applicable requirements of the Loan Documents, each of (i) JBA Consulting
Engineers, the mechanical engineer engaged by (or on behalf of) Borrower with
respect to the Renovation Project on the date hereof, (ii) Lochsa Engineering,
the structural and civil engineer engaged by (or on behalf of) Borrower with
respect to the Renovation Project on the date hereof, (iii) any other engineer
engaged by (or on behalf of) Borrower or any Affiliate thereof with respect to
any Project after the date hereof and approved by Lender in its reasonable
discretion, and (iv) any successor of any of the foregoing, in each case as
approved by Lender in its reasonable discretion.

“Engineer Agreement” shall mean, with respect
to each Engineer, any agreement for structural, mechanical, electrical or other
engineering services and related services entered into by (or on behalf of)
Borrower or any Affiliate thereof with such Engineer, in each case as approved
by Lender in its reasonable discretion, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“Engineer Consent” shall mean, with respect to
each Engineer, an Engineer Certification and Consent Agreement executed and
delivered by such Engineer in favor of Lender and substantially in the form
attached as Exhibit O, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

“Environmental Indemnity” shall mean that
certain Environmental Indemnity Agreement, dated as of the date hereof,
executed by Borrower and Guarantor in connection with the Loan for the benefit
of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time.

“Environmental Law” means any present and future
laws, statutes, ordinances, rules, regulations and the like, as well as common
law, of any applicable jurisdiction relating to protection of human health and
safety or the environment, relating to Hazardous Substances, relating to
liability for or costs of other actual or threatened danger to human health and
safety, the environment or similar issues, including (without limitation) any
present and future laws, statutes ordinances, rules, regulations, permits or
authorizations and the like, as well as common law, that (a) condition transfer
of property upon a negative declaration or other approval of a Governmental
Authority of the environmental condition of the Property; (b) require
notification or disclosure of Releases of Hazardous Substances or other
environmental condition of the Property to any Governmental Authority or other
Person, whether or not in connection with transfer of title to or interest in
property; (c) impose conditions or requirements in connection with permits or
other authorization for lawful activity; (d) relate to nuisance, trespass or
other causes of action related to the Property, in each case to the extent
related to Hazardous 

 17
 

Substances; or (e) relate to wrongful death, personal
injury, or property or other damage in connection with any physical condition
or use of the Property, in each case to the extent related to Hazardous
Substances, and including (without limitation) the Resource Conservation and
Recovery Act, 42 U.S.C. § 6901 et seq., as amended; the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq., as amended;
the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., as amended; the Oil
Pollution Act, 33 U.S.C. § 2701 et seq., as amended; the Clean Air Act, 42
U.S.C. § 7401 et seq., as amended; the Hazardous Material Transportation Act,
49 U.S.C. § 1801 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. §
1251 et seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.;
the Nevada Hazardous Materials law (NRS Chapter 459); the Nevada Solid
Waste/Disposal of Garbage or Sewage law (NRS 444.440 to 444.650, inclusive);
the Nevada Water Controls/Pollution law (NRS Chapter 445A); the Nevada Air
Pollution law (NRS Chapter 445B); the Nevada Cleanup of Discharged Petroleum
law (NRS 590.700 to 590.920, inclusive); the Nevada Control of Asbestos law
(NRS 618.750 to 618.850, inclusive); the Nevada Appropriation of Public Waters
law (NRS 533.324 to 533.4385, inclusive); and the Nevada Artificial Water Body
Development Permit law (NRS 502.390).

“Equipment” shall mean, with respect to the
Property, any equipment now owned or hereafter acquired by Borrower, which is
used at or in connection with the Improvements or the Property or is located
thereon or therein, including (without limitation) all Gaming Equipment, all
machinery, equipment, furnishings, and electronic data-processing and other
office equipment now owned or hereafter acquired by Borrower 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.

“Equity Interests” shall mean shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any such equity interest.

“Equity Payments” shall mean payments by
Borrower with respect to Project Costs for the Renovation Project from sources
other than Advances hereunder or other Indebtedness.

“EquityCo” shall mean EquityCo, L.L.C., a
Nevada limited liability company and the sole member of MezzCo.

“EquityCo Warrant” shall mean that certain
Warrant to Purchase Membership Interests, dated as of August 31, 2004, made by
BH/RE with respect to up to 2.5% of the fully diluted Equity Interests in
EquityCo, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

“EquityCo Warrant Documents” shall mean,
individually or collectively as the context indicates, the EquityCo Warrant and
any other agreements, certificates, instruments and other documents evidencing,
securing or pertaining to the transactions contemplated by the foregoing, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

 18
 

“EquityCo Warrantholder” shall mean, individually
or collectively as the context indicates, each holder from time to time of a
EquityCo Warrant pursuant to the EquityCo Warrant Documents.

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended, and the rules and regulations
promulgated thereunder, as in effect from time to time.

“ERISA Affiliate” shall mean any trade or
business (whether or not incorporated) which together with the Borrower or any
of its Affiliates would be treated as a single employer under the provisions of
Title I or Title IV of ERISA.

“Event of Default” shall have the meaning set
forth in Section 8.1(a).

“Excess Cash Flow” shall have the meaning set
forth in Section 2.6.4(a).

“Excess Cash Flow Sweep Period” shall mean the
period commencing on the date hereof and ending on the date that the Property
shall have achieved a Debt Service Coverage Ratio (assuming for this purpose
that the full Loan Amount has been advanced hereunder) of at least 1.05:1.00
for a calendar quarter.

“Excess Cash Reserve Account” shall have the
meaning set forth in Section 7.7.

“Excess Cash Reserve Fund” shall have the
meaning set forth in Section 7.7.

“Exchange Act” shall have the meaning set forth
in Section 9.2(a).

“Exchange Act Filing” shall have the meaning
set forth in Section 5.1.11(f).

“Excusable Delay” shall mean either (a) with
respect to any Project, any event which causes a delay in the construction of
such Project or otherwise causes a delay to Substantial Completion of such
Project, or (b) with respect to any other relevant obligation or covenant of
Borrower hereunder, any event which causes a delay or failure to perform such
obligation or covenant; provided that, in the case of either of the foregoing
clauses (a) or (b):

(i)            such event is outside the reasonable
control of Borrower or its Affiliates; and

(ii)           such event does not arise out of (A)
the negligence or willful misconduct of Borrower or any of its Affiliates, or
(B) any cause or circumstance resulting from the insolvency, bankruptcy or any
lack of funds of Borrower, Guarantor, any Trade Contractor or any of their
respective Affiliates;

(iii)          to the extent such event arises out of
the acts, omissions, late performance and/or failure to perform by one or more
of the Trade Contractors, such delay shall not exceed thirty (30) days in the
aggregate and Borrower has promptly commenced and diligently and continuously
pursed all reasonable action to mitigate the impact of the delay; and

 19
 

(iv)          to the extent such event consists of
an act of God (such as tornado, flood, hurricane and other similar events or
occurrences), fires and other casualties, labor strikes, lockouts or other
labor disturbances (except to the extent arising due to any acts or omissions
of Borrower or its Affiliates), war, riots, insurrections or civil commotions;
embargos, shortages or unavailability of materials, supplies, labor, equipment
and systems that first arise after the date hereof, but only to the extent
caused by another act, event or condition covered by this clause (iii),
sabotage, vandalism, theft, changes in applicable laws enacted after the date
hereof, orders or judgments, or any similar types of events; provided,
however, that in each case (A) Borrower has promptly commenced and diligently
and continuously pursed all reasonable action to mitigate the impact of the
delay, (B) delays resulting from the foregoing shall not exceed one hundred and
seventy-five (175) days in the aggregate, and (C) the period during which an
Excusable Delay exists shall commence on the date that Borrower has given
Lender written notice describing in reasonable detail the event which
constitutes an Excusable Delay and shall end on the date that such Excusable
Delay no longer exists as reasonably determined by Lender.

“Executive
Options” shall mean, collectively, the rights of certain Borrower
executives to acquire Equity Interests in MezzCo in an aggregate amount with
respect to the foregoing, collectively, not to exceed ten percent (10%) of the
Equity Interests in MezzCo pursuant to certain employee stock option plans to
be granted by MezzCo upon terms set forth in the employment agreements of each
of the foregoing, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.

“Extended
Maturity Date” shall mean, upon each valid exercise of an Extension Option
pursuant to Section 2.7, the then applicable maturity date of the Loan
taking into account such exercise of such Extension Option.

“Extension
Option” shall have the meaning set forth in Section 2.7.

“Extension Term” shall have the meaning set
forth in Section 2.7.

“Extension Term Sweep Period” shall mean any
period during any Extension Term in which EBITDA with respect to the Property
on a trailing twelve (12) month basis, as reasonably determined by Lender,
shall be less than or equal to the following on the date of determination: (A)
$105,000,000, with respect to the Third Loan Year (if any), (B) $120,000,000,
with respect to the Fourth Loan Year (if any), and (C) $127,500,000, with
respect to the Fifth Loan Year (if any).

“Extraordinary Expense” shall have the meaning
set forth in Section 5.1.11(e).

“Fee Owner” shall have the meaning set forth in
the introductory paragraph hereto.

“FF&E” shall mean, with respect to the
Property, collectively, furnishings, Fixtures and Equipment located in the
guest rooms, hallways, lobbies, restaurants, lounges, meeting and banquet
rooms, parking facilities, public areas or otherwise in any portion of the
Property, including (without limitation) all beds, chairs, bookcases, tables, carpeting,
drapes, couches, 

 20
 

luggage carts, luggage racks, bars, bar fixtures,
radios, television sets, intercom and paging equipment, electric and electronic
equipment, heating, lighting and plumbing fixtures, fire prevention and
extinguishing apparatus, cooling and air-conditioning systems, elevators,
escalators, stoves, ranges, refrigerators, laundry machines, tools, machinery,
boilers, incinerators, switchboards, conduits, compressors, vacuum cleaning
systems, floor cleaning, waxing and polishing equipment, cabinets, lockers,
shelving, dishwashers, garbage disposals, washer and dryers, gaming equipment
and other casino equipment and all other customary hotel and casino resort
equipment and other tangible property owned by Borrower, or in which Borrower has
or shall have an interest, now or hereafter located at the Property and useable
in connection with the present or future operation and occupancy of the
Property; provided, however, that FF&E shall not include (i) fixed
asset supplies, including, but not limited to, linen, china, glassware,
tableware, uniforms, other hotel inventory and similar items, whether used in
connection with public space or guest rooms, (ii) items owned by tenants or by
third party operators, or (iii) items owned by any PH Entity and leased or
licensed to Borrower pursuant to the PH License.

“FF&E Reserve Account” shall have the
meaning set forth in Section 7.3.1.

“FF&E Reserve Fund” shall have the meaning
set forth in Section 7.3.1.

“Fifth Loan Year” shall mean, subject to the
valid exercise of the applicable Extension Option pursuant to Section 2.7,
the consecutive twelve (12) month period from December 9, 2010, to and
including December 9, 2011.

“Final Completion” shall mean, with respect to
any Project, that (i) Substantial Completion has occurred, (ii) final receipts
have been received from each Trade Contractor, (iii) the Property (or relevant
portion thereof relating to such Project) has received a temporary or permanent
Certificate of Occupancy from the applicable Governmental Authority, (iv) an
Architect Final Completion Certificate has been delivered to Lender, in form
and substance reasonably acceptable to Lender, (v) a Borrower Final Completion
Certificate has been delivered to Lender, in form and substance reasonably acceptable
to Lender, and (vi) a Construction Consultant Final Completion Certificate has
been delivered to Lender, in form and substance reasonably acceptable to
Lender.

“First Loan Year” shall mean the period from
the date hereof, to and including December 9, 2007.

“Fiscal Year” shall mean each twelve (12)
month period commencing on January 1 and ending on December 31 during
each year of the term of the Loan.

“Fitch” shall mean Fitch, Inc.

“Fixtures” shall mean, with respect to the
Property, all Equipment now owned, or the ownership of which is hereafter
acquired, by Borrower which is so related to the Land and the Improvements
forming part of the Property that it is deemed fixtures or real property under
applicable Legal Requirements, including, without limitation, all building or
construction materials intended for construction, reconstruction, alteration,
decoration 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 

 21
 

connection with (temporarily or permanently) any of
the Improvements or the Land, including, but not limited to, engines, devices
for the operation of 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
Borrower’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 or any of the foregoing and the proceeds thereof.

“Fourth Loan Year” shall mean, subject to the
valid exercise of the applicable Extension Option pursuant to Section 2.7,
the consecutive twelve (12) month period from December 9, 2009, to and
including December 9, 2010.

“Future Funding” shall mean that portion of the
Loan to be made by Lender to Borrower pursuant to this Agreement in an
aggregate principal amount not to exceed the Future Funding Allocation.

“Future Funding Advance” shall mean any advance
of any portion of the Future Funding Amount pursuant to this Agreement,
including (without limitation) any Renovation Project Advance and any Future
Project Advance.

“Future Funding Allocation” shall mean an
amount equal to $60,330,000, being the maximum aggregate amount of Future
Funding Advances to be made hereunder with respect to any Project or for any
other purpose permitted hereunder, subject to reduction pursuant to Section
2.1.5.

“Future Funding Amount” shall mean such portion
of the Future Funding as shall be advanced and outstanding from time to time
(including, without limitation, any portion of the Future Funding that is
advanced by Lender and deposited into any Reserve Account pursuant to the
provisions hereof), in a maximum principal amount not to exceed the Future
Funding Allocation and evidenced by the Note.

“Future Funding Reduction” shall have the
meaning set forth in Section 2.1.5.

“Future Project” shall mean the construction,
development and completion of any Future Project Improvements or other
Alterations to all or any portion of the Property (other than the Timeshare
Project Property), including (without limitation) the repair, renovation, replacement
and/or installation of FF&E and any other Capital Expenditures at the
Property (other than the Timeshare Project Property), in each case where the
reasonably estimated amount of total Project Costs to be incurred in connection
with such Future Project, together with the estimated amount of costs
reasonably expected to be incurred in connection with all other Alterations
with respect to all or any portion of the Property (other than the Timeshare
Project Property) that would reasonably be considered to constitute a single
project or group of related projects then being 

 22
 

conducted or contemplated, shall exceed $2,500,000 in
the aggregate, in each case as more particularly described in the applicable
Project Documents relating to such Future Project, and all activities in
furtherance thereof.

“Future Project Advance” shall mean an advance
of any portion of the Future Funding Amount pursuant to the provisions of this
Agreement with respect to Project Costs relating to any Future Project,
including (without limitation) any disbursement of Future Project Reserve Funds
from the Future Project Reserve Account.

“Future Project Improvements” shall mean,
collectively, with respect to any Future Project, such existing and/or
additional structures and other improvements to be renovated, repaired,
replaced and/or constructed on portions of the Property (other than the
Timeshare Project Property) comprising hotel, casino, recreation, retail and/or
other amenities that benefit the Property (other than the Timeshare Project
Property), as described in both the Project Plan and the Plans and
Specifications for such Future Project reasonably approved by Lender from time
to time in accordance with the terms hereof.

“Future Project Reserve Account” shall have the
meaning set forth in Section 7.8.

“Future Project Reserve Funds” shall have the
meaning set forth in Section 7.8.

“GAAP” shall mean generally accepted accounting
principles in the United States of America as of the date of the applicable
financial report or, when applied to computation of financial tests for
purposes of this Agreement, as in effect on the date hereof.

“Gaming Applications” shall mean all
applications, supporting documents and supplemental information required or
requested by Gaming Authorities or pursuant to any applicable Gaming Law
necessary to effectuate the OpBiz Pledge Agreement and the appointment of the
Independent Persons.

“Gaming Authority” shall mean 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 at the Property or any
successor to such authority.

“Gaming Equipment” shall mean any and all
gaming devices (as defined in NRS 463.0155), gaming device parts inventory and
other related gaming equipment and supplies used in connection with the
operation of a casino, including (without limitation), slot machines, gaming
tables, cards, dice, chips, tokens, player tracking systems, cashless wagering
systems (as defined in NRS 463.014) and associated equipment (as defined in NRS
463.0136), which are located at the Casino Component, owned or leased by OpBiz
and used or useable exclusively in the present or future operation of slot
machines and live games at the Casino Component, together with all improvements
and/or additions thereto and mobile gaming systems (as defined in Regulation
14.010(11) under NRS Chapter 463).

“Gaming Laws” shall mean the provisions of the
Nevada Gaming Control Act, as amended from time to time, all regulations of the
Nevada Gaming Commission promulgated 

 23
 

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.

“Gaming License” shall mean any license,
qualification, franchise, accreditation, approval, registration, permit,
finding of suitability or other authorization relating to gaming, the gaming
business or the operation of a casino under the Gaming Laws or required by the
Gaming Authorities or otherwise necessary for the operation of gaming, the gaming
business or a resort casino.

“Gaming Liquidity Requirement” shall mean the
minimum bankroll requirements for cash and cash equivalents required to be
maintained by OpBiz pursuant to Gaming Laws in an amount no greater than is
mandated by Nevada Gaming Commission Regulation 6.150.

“Gaming Operating Reserve” shall mean, with
respect to the Casino Component, such cash funds and reserves that are held and
maintained by OpBiz, in its capacity as the duly licensed operator of the
Casino Component under applicable Gaming Laws, either on-site at the Property
or in the Casino Accounts, including (without limitation) casino chips, tokens,
checks and markers; provided that all such Gaming Operating Reserves (i) are
established and maintained solely for use in the day to day operation and
management of the Casino Component in the ordinary course of business, and (ii)
are funded and maintained in accordance with the requirements of all applicable
Gaming Laws and in amounts that are reasonable and customary for casino operations
of a Comparable Standard (it being agreed that 110% of statutory or regulatory
minimums shall be deemed a reasonable and customary minimum amount for these
purposes).

“General Contractor” shall mean, subject to any
applicable requirements of the Loan Documents, each of (i) M.J. Dean
Construction, Inc., the general contractor engaged by (or on behalf of)
Borrower with respect to the Renovation Project on the date hereof, (ii) any
general contractor engaged by (or on behalf of) Borrower or any Affiliate
thereof with respect to any Project from time to time after the date hereof and
approved by Lender in its reasonable discretion, and (iii) any successor of any
of the foregoing, in each case as approved by Lender in its reasonable
discretion.

“General Contractor Agreement” shall mean, with
respect to any General Contractor, any guaranteed maximum price contract or
other general contractor or similar agreement entered into by (or on behalf of)
Borrower or any Affiliate thereof with such General Contractor, in each case as
approved by Lender in its reasonable discretion, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

“General Contractor Consent” shall mean, with
respect to any General Contractor, a General Contractor Certification and
Consent Agreement executed and delivered by such General Contractor in favor of
Lender and substantially in the form attached as Exhibit P, as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time in accordance with the terms hereof.

 24
 

“General Reserve Account” shall have the
meaning set forth in Section 7.9.

“General Reserve Funds” shall have the meaning
set forth in Section 7.9.

“Governmental Approvals” shall mean all
approvals, consents, waivers, orders, acknowledgments, authorizations,
certificates, registrations, permits, environmental permits, and licenses
required under applicable Legal Requirements to be obtained from any
Governmental Authority for the ownership, use, occupancy and operation of, or
otherwise relating to, the Property or any portion thereof.

“Governmental Authority” shall mean any
national, state or local government (whether domestic or foreign), any
political subdivision thereof or any other governmental or judicial, authority,
body, agency, bureau or entity (including the Gaming Authorities, any zoning
authority, the Federal Deposit Insurance Corporation, any central bank or any
comparable authority) or any arbitrator with authority to bind the party at
law.

“Gross
Income from Operations” shall mean all sustainable income
and proceeds (whether in cash or on credit, and computed on an accrual basis)
received by Borrower or Manager for the use, occupancy or enjoyment of the Property,
or any part thereof, or received by Borrower or Manager for the sale of any
goods, services or other items sold on or provided from the Property in the
ordinary course of the Property operation, including without limitation:
(a) all income and proceeds received from rental of rooms, Leases and
commercial space, meeting, conference and/or banquet space within the Property
including net parking revenue; (b) all income and proceeds received from
food and beverage operations and from catering services conducted from the
Property even though rendered outside of the Property; (c) all income and
proceeds from business interruption, rental interruption and use and occupancy
insurance with respect to the operation of the Property (after deducting therefrom
all necessary costs and expenses incurred in the adjustment or collection
thereof); (d) all Awards for temporary use (after deducting therefrom all
costs incurred in the adjustment or collection thereof and in Restoration of
the Property); (e) all income and proceeds from judgments, settlements and
other resolutions of disputes with respect to matters which would be includable
in this definition of “Gross Income from Operations” if received in the
ordinary course of the Property operation (after deducting therefrom all
necessary costs and expenses incurred in the adjustment or collection thereof);
and (f) interest on credit accounts, rent concessions or credits, and
other required pass-throughs and interest on Reserve Funds; but excluding,
(1) gross receipts received by lessees, licensees or concessionaires of
the Property; (2) consideration received at the Property for hotel
accommodations, goods and services to be provided at other hotels, although
arranged by, for or on behalf of Borrower or Manager; (3) income and
proceeds from the sale or other disposition of goods, capital assets and other
items not in the ordinary course of the Property operation; (4) federal,
state and municipal excise, sales and use taxes collected directly from patrons
or guests of the Property as a part of or based on the sales price of any
goods, services or other items, such as gross receipts, room, admission,
cabaret or equivalent taxes; (5) Awards (except to the extent provided in
clause (d) above); (6) refunds of amounts not included in
Operating Expenses at any time and uncollectible accounts; (7) gratuities
collected by the Property employees; (8) the proceeds of any financing;
(9) other income or proceeds resulting other than from the use or
occupancy of the Property, or any part thereof, or other than from the sale of
goods, services or other items sold on or provided from the Property in the 

 25
 

ordinary course of business; and (10) any credits
or refunds made to customers, guests or patrons in the form of allowances or
adjustments to previously recorded revenues.

“Guarantee Fee Agreement” shall mean that
certain Guarantee Fee Agreement, dated as of the date hereof, between Borrower
and each BH Guarantor, pursuant to which Borrower is obligated to pay an annual
credit enhancement fee to each BH Guarantor, such payment being subject to the
deferral provisions set forth therein and subordinate to the repayment of the
Debt in full pursuant to the Loan Documents, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

“Guarantor” shall mean, individually or
collectively as the context indicates, the following (i) with respect to the BH
Recourse Guaranty, each BH Guarantor, subject to the limitations on liability
with respect to each of the foregoing set forth therein, (ii) with respect to
the RE Recourse Guaranty, RE Guarantor, subject to the limitations on liability
set forth therein, (iii) with respect to the DT Recourse Guaranty, DT
Guarantor, subject to the limitations on liability set forth therein, and (iv)
with respect to the Completion Guaranty, each BH Guarantor and RE Guarantor,
subject to the limitations on liability with respect to each of the foregoing
set forth therein.

“Guaranty” shall mean, individually or
collectively as the context indicates, the BH Recourse Guaranty, the RE
Recourse Guaranty, the DT Recourse Guaranty and the Completion Guaranty.

“Hard Costs” shall mean, with respect to the
Renovation Project, collectively, the costs set forth in the Renovation Project
Budget which are for labor, materials, equipment, furniture and fixtures.

“Hazardous Substances” shall mean any and all
substances (whether solid, liquid or gas) defined, listed, or otherwise
classified as pollutants, hazardous wastes, hazardous substances, hazardous
materials, extremely hazardous wastes, or words of similar meaning or
regulatory effect under any present or future Environmental Laws or that is
reasonably likely to have a negative impact on human health or the environment,
including, but not limited to, petroleum and petroleum products, asbestos and
asbestos-containing materials, polychlorinated biphenyls, lead, radon, mold,
mycotoxins, microbial matter, airborne pathogens (naturally occurring or
otherwise), radioactive materials, flammables and explosives, but excluding
substances of kinds and in amounts ordinarily and customarily used or stored in
properties similar to the Property for the purposes of cleaning or other
maintenance or operations by Borrower and/or any tenants or licensees at the
Property and otherwise in compliance with all applicable Environmental Laws.

“Hotel Component” shall mean that portion of
the Property devoted to the operation of a hotel and related facilities and
leased by Fee Owner to OpBiz pursuant to the Hotel Component Lease, excluding
the Casino Component, but including (without limitation) (i) all guest rooms
and suites, hotel amenities, restaurants, conference centers, meeting, banquet
and other public rooms, spa, parking spaces and other facilities of the hotel
portion of the Property, (ii) the TPA Component, and (iii) the Utility
Component, all of the foregoing being located on the Hotel Component Premises
and more particularly described and set forth in the Hotel Component Lease.

 26
 

“Hotel Component Lease” shall mean that certain
Lease Agreement, dated as of the date hereof, between Fee Owner, as lessor, and
OpBiz, as lessee, pursuant to which Fee Owner has leased the Hotel Component to
OpBiz upon and subject to the terms set forth therein, as the same may be
amended, supplemented, replaced or otherwise modified from time to time in
accordance with the provisions hereof.

“Hotel Component Premises” shall mean that
portion of the Property described on Schedule II-B attached hereto, as the
same may be adjusted from time to time after the date hereof solely to the
extent required in order comply with applicable Gaming Laws.

“Improvements” shall have the meaning set forth
in the granting clause of the Security Instrument.

“Indebtedness” of a Person, at a particular
date, means the sum (without duplication) at such date of (a) all
indebtedness or liability of such Person (including, without limitation,
amounts for borrowed money and indebtedness in the form of mezzanine debt and
preferred equity); (b) obligations evidenced by bonds, debentures, notes,
or other similar instruments; (c) obligations for the deferred purchase
price of property or services (including trade obligations);
(d) obligations under letters of credit; (e) obligations under
acceptance facilities; (f) all guaranties, endorsements (other than for
collection or deposit in the ordinary course of business) and other contingent
obligations to purchase, to provide funds for payment, to supply funds, to
invest in any Person or entity, or otherwise to assure a creditor against loss;
and (g) obligations secured by any Liens, whether or not the obligations
have been assumed.

“Indemnified Liabilities” shall have the
meaning set forth in Section 10.13(b).

“Indemnified Persons” shall have the meaning
set forth in Section 9.2(b).

“Indemnifying Person” shall mean each of
Borrower and Guarantor.

“Independent Person” shall mean a Person who is
not at the time of initial appointment, or at any time while serving as a
director or manager, as applicable, and has not been at any time during the
preceding five (5) years:  (a) a
stockholder, director (with the exception of serving as the Independent
Person), officer, employee, partner, member, attorney or counsel of Borrower or
any of its Affiliates; (b) a customer, supplier or other person who derives any
of its purchases or revenues from its activities with Borrower or any of its
Affiliates; (c) a Person Controlling or under common Control with any such
stockholder, director, officer, partner, member, customer, supplier or other
Person; or (d) a member of the immediate family of any such stockholder,
director, officer, employee, partner, member, customer, supplier or other
person.  A Person who satisfies the foregoing
definition other than clause (b) of this definition shall not be disqualified
from serving as an Independent Person of Borrower if such individual is an
Independent Person provided by a nationally recognized company that provides
professional independent directors and other corporate services in the ordinary
course of its business.  A Person who
otherwise satisfies the foregoing definition other than clause (a) of this
definition by reason of being the independent director of a “Special Purpose
Entity” affiliated with Borrower shall not be disqualified from serving as an
Independent Person of Borrower if such Person is either (i) an Independent
Person provided by a nationally recognized company that provides professional 

 27
 

independent directors and other corporate services in
the ordinary course of its business, or (ii) the fees that such Person earns
from serving as independent director of Affiliates of Borrower constitute in
the aggregate less than five percent (5%) of such individual’s annual
income.  Notwithstanding the immediately
preceding sentence (except as permitted in clause (a) of this definition) an
Independent Person may not simultaneously serve as Independent Person of
Borrower and independent director of a Special Purpose Entity that owns a
direct or indirect equity interest in any Borrower.

“Initial Maturity Date” shall mean December 9,
2008.

“Initial Project Advance” shall mean, with
respect to each Project, the initial Project Advance to be made pursuant to
this Agreement.

“Insolvency Opinion” shall mean that certain
non-consolidation opinion letter dated the date hereof delivered by
Greenberg Traurig, LLP in connection with the Loan.

“Insurance Premiums” shall have the meaning set
forth in Section 6.1(b).

“Insurance Proceeds” shall have the meaning set
forth in Section 6.4(b).

“Interest Period” shall mean, with respect to
any Payment Date, the period commencing on the ninth (9th) day of the preceding calendar month and terminating
on the eighth (8th) day of the calendar month in which such
Payment Date occurs; provided, that no Interest Period shall end later
than the Maturity Date (other than for purposes of calculating interest at the
Default Rate), and the initial Interest Period shall begin on the Closing Date
and shall end on the immediately following eighth (8th)
day of the calendar month.

“Interest Rate Cap Agreement” shall mean, as
applicable, an Interest Rate Cap Agreement (together with the confirmation and
schedules relating thereto) in form and substance reasonably satisfactory to
Lender between Borrower and an Acceptable Counterparty or a Replacement
Interest Rate Cap Agreement.

“Interest Release Trigger Date” shall have the
meaning set forth in Section 7.4.4.

“Interest Reserve Account” shall have the
meaning set forth in Section 7.4.1.

“Interest Reserve Fund” shall have the meaning
set forth in Section 7.4.1.

“Lease” shall mean any lease, sublease or
subsublease, letting, license, concession or other agreement (whether written
or oral and whether now or hereafter in effect) pursuant to which any Person is
granted a possessory interest in, or right to use or occupy all or any portion
of any space in the Property (other than short term arrangements with transient
hotel guests entered into in the usual course of business), and (a) every
modification, amendment or other agreement relating to such lease, sublease,
subsublease, or other agreement entered into in connection with such lease,
sublease, subsublease, or other agreement and (b) every guarantee of the
performance and observance of the covenants, conditions and agreements to be
performed and observed by the other party thereto.

 

 28

“Legal Requirements” shall mean all federal,
state, county, municipal and other governmental statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental
Authorities affecting the Property or any part thereof, or the construction,
use, alteration or operation thereof, or any part thereof, whether now or
hereafter enacted and in force, and all permits, licenses and authorizations
and regulations relating thereto, and all covenants, agreements, restrictions
and encumbrances contained in any instruments, either of record or known to
Borrower, at any time in force affecting the Property or any part thereof,
including, without limitation, any which may (a) require repairs,
modifications or alterations in or to the Property or any part thereof, or
(b) in any way limit the use and enjoyment thereof.

“Lender” shall have the meaning set forth in
the introductory paragraph hereto, together with its successors and assigns.

“Letter
of Credit” shall mean an irrevocable, unconditional,
transferable, clean sight draft letter of credit, as the same may be replaced,
split, substituted, modified, amended, supplemented, assigned or otherwise
restated from time to time, (either an evergreen letter of credit or a letter
of credit which does not expire until at least two (2) Business Days after the
Maturity Date or such earlier date as such Letter of Credit is no longer
required pursuant to the terms of this Agreement) in favor of Lender and
entitling Lender to draw thereon based solely on a statement purportedly
executed by an officer of Lender stating that it has the right to draw thereon,
and issued by a domestic Approved Bank or the U.S. agency or branch of a
foreign Approved Bank, or if there are no domestic Approved Banks or U.S. agencies
or branches of a foreign Approved Bank then issuing letters of credit, then
such letter of credit may be issued by a domestic bank, the long term unsecured
debt rating of which is the highest such rating then given by the Rating Agency
or Rating Agencies, as applicable, to a domestic commercial bank.

“Liabilities” shall have the meaning set forth
in Section 9.2(b).

“LIBOR” shall mean, with respect to each
Interest Period, the rate (expressed as a percentage per annum and rounded
upward, if necessary, to the next nearest 1/1000 of 1%) for deposits in U.S.
dollars, for a 30 day period, that appears on Telerate Page 3750 (or the
successor thereto) as of 11:00 a.m., London time, on the related
Determination Date.  If such rate does
not appear on Telerate Page 3750 as of 11:00 a.m., London time, on
such Determination Date, LIBOR shall be the arithmetic mean of the offered
rates (expressed as a percentage per annum) for deposits in U.S. dollars for a
one-month period that appear on the Reuters Screen Libor Page as of
11:00 a.m., London time, on such Determination Date, if at least two such
offered rates so appear.  If fewer than
two such offered rates appear on the Reuters Screen Libor Page as of
11:00 a.m., London time, on such Determination Date, Lender shall request
the principal London office of any four major reference banks in the London
interbank market selected by Lender to provide such bank’s offered quotation
(expressed as a percentage per annum) to prime banks in the London interbank
market for deposits in U.S. dollars for a one-month period as of
11:00 a.m., London time, on such Determination Date for the amounts of not
less than U.S. $1,000,000.  If at least
two such offered quotations are so provided, LIBOR shall be the arithmetic mean
of such quotations.  If fewer than two
such quotations are so provided, Lender shall request any three major banks in
New York City selected by Lender to provide such bank’s rate (expressed as a
percentage per annum) for loans in U.S. dollars to leading European banks

 29
 

for a one-month period as of approximately
11:00 a.m., New York City time on the applicable Determination Date for
amounts of not less than U.S. $1,000,000. 
If at least two such rates are so provided, LIBOR shall be the
arithmetic mean of such rates.  LIBOR
shall be determined conclusively by Lender or its agent (absent manifest
error).

“LIBOR Loan” shall mean the Loan at such time
as interest thereon accrues at a rate of interest based upon LIBOR.

“License Subordination Agreement” shall mean
that certain Licensor Subordination and Cooperation Agreement, dated as of the
date hereof, by PHI, PHMemo and PHIV in favor of Lender and consented to by
Borrower, as the same may be amended, supplemented, replaced or otherwise
modified from time to time in accordance with the provisions hereof.

“Licensors” shall mean, collectively, PHI,
PHMemo and PHIV.

“Lien” shall mean any mortgage, deed of trust,
lien, pledge, hypothecation, assignment, security interest, or any other
encumbrance, charge or transfer of, on or affecting Borrower, the Property, any
portion thereof or any interest therein, including, without limitation, any
conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, the filing of
any financing statement, and mechanic’s, materialmen’s and other similar liens
and encumbrances.

“Line Item” shall mean, with respect to any
Project, a line item of cost or expense set forth in the Project Budget
relating to such Project, as the same may be adjusted in compliance with the
terms hereof.

“Loan” shall mean the loan made by Lender to
Borrower pursuant to this Agreement in a maximum principal amount not to exceed
the Loan Amount, which shall be comprised of the Base Loan and the Future
Funding and shall be evidenced by the Note.

“Loan Amount” shall mean the amount equal to
the sum of (i) the Base Loan Amount, and (ii) the Future Funding Amount.

“Loan Documents” shall mean, collectively, all
documents, agreements, certificates and instruments set forth on Exhibit A
attached hereto, including (without limitation) this Loan Agreement, the Note,
each Security Instrument, the Assignment of Leases, the Assignment of
Contracts, the Assignment of Management Agreement, the Environmental Indemnity,
each Guaranty, the Collection Account Agreement, the Cash Management Account
Agreement, the Collateral Assignment of Interest Rate Cap Agreement, the
Collateral Assignment of Timeshare Project Proceeds, the License Subordination
Agreement and the O&M Agreement, together with any other documents,
agreements, certificates and instruments executed and/or delivered by or on
behalf of any Borrower Party or its Affiliates which evidences, secures or
otherwise relates to the Loan, in each case as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

“Loan to
Value Ratio” shall mean the ratio, as of a particular
date, in which the numerator is equal to the outstanding principal balance of
the Loan and the denominator is equal

 30
 

to the appraised value of the Property as determined
by Lender in its reasonable discretion based on a third party appraisal.

“Lockout Release Date” shall mean December 9,
2007.

“London Business Day” shall mean any day other
than a Saturday, Sunday or any other day on which commercial banks in London,
England are not open for business.

“Losses” shall have the meaning set forth in Section
9.3(a).

“Major Lease” shall mean any of the following:
(i) any Lease of space at the Property for retail, restaurant or any other use
in excess of 25,000 square feet to a single tenant or by the aggregate of one
or more affiliated tenants, (ii) any Lease of space at the Property for retail,
restaurant or any other use providing for net rental payments (including,
without limitation, percentage rent) in excess of $750,000 per annum to a
single tenant or by the aggregate of one or more affiliated tenants, (iii) any
Lease of space at the Property with an Affiliate of Borrower, or (iv) any Lease
that is not the result of arm’s length negotiations; provided, however,
that the Casino Component Lease, the Hotel Component Lease, the TPA Component
Lease and the Utility Component Lease shall not constitute Major Leases for the
purposes hereof.

“Major Trade Contract” shall mean,
collectively, (i) with respect to the Renovation Project, any Trade Contract,
having a contract or purchase price, as the case may be, whether initially or
thereafter by virtue of any Change Order or Change Orders, equal to or in
excess of $2,000,000, provided that, for purposes of this definition, multiple
Trade Contracts with a single contractor or supplier, or an Affiliate thereof,
as the case may be, shall be deemed to be one Trade Contract, and (ii) with
respect to any other Project, the Trade Contracts with Trade Contractors
representing the five (5) highest price contracts for the contracting work with
respect to such Project.

“Major Trade Contractor” shall mean any
contractor or supplier, as the case may be, under a Major Trade Contract.

“Major Trade Contractor Consent” shall mean,
with respect to any Project, a Major Trade Contractor Consent and Agreement
executed and delivered by a Major Trade Contractor in favor of Lender,
substantially in the form attached as Exhibit Q, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time in accordance with the terms hereof.

“Management Agreement” shall mean (i) with
respect to the Hotel Component, that certain Management Contract for the Planet
Hollywood Hotel and Casino, a Sheraton Hotel, dated as of April 23, 2003,
between OpBiz and Sheraton, as amended by the BH/RE-Starwood Agreement and
further amended by that certain Tri-Party Agreement and Guaranty, dated as of
the date hereof, by and among Sheraton, OpBiz and Fee Owner, and as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time in accordance with the terms hereof, (ii) with respect to the
Property, any other management agreement in form and substance reasonably
acceptable to Lender and otherwise in compliance with the terms hereof, entered
into by and between Borrower (as applicable) and any Manager, pursuant to which
such Manager is to provide management and other services with respect to the

 31
 

Property or any portion thereof, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time in accordance with the terms hereof, and (iii) if the context requires,
any Replacement Management Agreement, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“Manager” shall mean (i) on the date hereof,
Sheraton Manager with respect to the Hotel Component, or (ii) after the date
hereof, any other Qualified Manager who is managing the Property (or any
portion thereof) in accordance with the terms and provisions of this Agreement.

“Material Adverse Effect” shall mean any event
or condition that has a material adverse effect on (i) the Property taken as a
whole, (ii) the business, profits, operations or financial condition of
Borrower, taken as a whole, (iii) the ability of Borrower to repay the
principal and interest of the Loan as it becomes due or to perform and satisfy when
due or required any of Borrower’s other material obligations under any of the
Loan Documents (taking into consideration any applicable grace, notice and cure
periods), (iv) the ability of any Guarantor to pay, perform and satisfy when
due or required any of such Guarantor’s material obligations under the Loan
Documents, (v) the enforceability or validity of any Loan Document or the
perfection or priority of any Lien created under any Loan Document, or (vi) the
rights, interests and remedies of Lender under the Loan Documents.

“Material Alteration” shall mean any Alteration
with respect to all or a portion of the Property that, when aggregated with all
other related Alterations at the Property and/or other Alterations at the
Property that would reasonably be considered to constitute a single project
then being conducted or contemplated involve an estimated total cost in excess
of $2,500,000; provided that, Alterations shall not include (A) merely
decorative work such as painting, wall papering, carpeting and replacement of
FF&E to the extent being of a routine and recurring nature, performed in
the ordinary course of business and are funded from the FF&E Reserve Fund
pursuant to Section 7.3.2; (B) tenant improvement work performed
pursuant to the terms of any Lease entered into in accordance with the terms
hereof, so long as such work does not adversely affect any structural component
of any Improvements, any utility or HVAC system contained in any Improvements
or the exterior of any building constituting a part of any Improvements, (C)
any Alterations which are performed in connection with the Restoration of any
portion of the Property after the occurrence of a Casualty in accordance with
the terms and provisions of this Agreement, or (D) any Work comprising a
portion of any Project conducted in accordance with the terms and provisions of
this Agreement.

“Material Operating Agreements” shall
mean,  individually or collectively as
the context indicates, the following (a) any Management Agreement, (b) the
Casino Component Lease, (c) the Hotel Component Lease, (d) the Utility
Component Lease and the Utility Services Agreement (f) each Timeshare Project
Document, (g) the Parking Agreement, (h) the REA, (i) the PH License, (j) each
Casino Expansion Lease, (k) the Settlement Agreement, (l) the MezzCo Warrant
Documents, (k) the EquityCo Warrant Documents, (l) any material agreement or
other documents evidencing or otherwise relating to the Executive Options, (m)
the Guarantee Fee Agreement, and (n) any other Operating Agreement entered into
after the Closing Date by, or on behalf of Borrower or any Manager or any other
Person on their behalf with respect to the Property or any portion thereof,
which (i) requires in excess of an aggregate of $5,000,000 in

 32
 

payments by or on behalf of Borrower or any Manager to
be paid in connection with any termination thereof, or (ii) requires in excess
of $5,000,000 in annual payments by or on behalf of Borrower or any Manager
regardless of the term of such Operating Agreement, in each case as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time in accordance with the terms hereof; provided, however,
that Material Operating Agreements shall not include aircraft hire and other
transportation arrangements entered into from time to time with an Affiliate of
Borrower in the ordinary course of business so long as such arrangements are on
terms that are fair and commercially reasonable in all material respects and
are no less favorable to Borrower than would be obtained in a comparable
arms-length transaction with an unrelated third party.

“Maturity Date” shall mean the Initial Maturity
Date or, if applicable, the Extended Maturity Date, or such other date on which
the final payment of principal of the Note becomes due and payable as therein
or herein provided, whether at such stated maturity date, by declaration of
acceleration, or otherwise; provided that in no event shall the Maturity Date
be later than December 9, 2011.

“Maximum Legal Rate” shall mean the maximum
nonusurious interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged or received on the indebtedness
evidenced by the Note and as provided for herein or the other Loan Documents,
under the laws of such state or states whose laws are held by any court of
competent jurisdiction to govern the interest rate provisions of the Loan.

“Mezz I Borrower” shall mean PH Mezz I, LLC, a
Delaware limited liability company and the sole member of Fee Owner, together
with its successors and permitted assigns.

“Mezz II Borrower” shall mean PH Mezz II, LLC,
a Delaware limited liability company and the sole member of Mezz I Borrower.

“MezzCo” shall mean MezzCo, L.L.C., a Nevada
limited liability company and the sole member of OpBiz and Mezz II Borrower.

“MezzCo Warrant” shall mean, individually or
collectively as the context indicates, each Amended and Restated Warrant to
Purchase Membership Interests of MezzCo, dated as of August 9, 2004, issued by
MezzCo to the MezzCo Warrantholders, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“MezzCo Warrant Documents” shall mean,
individually or collectively as the context indicates, the MezzCo Warrant and
any other agreements, certificates, instruments and other documents evidencing,
securing or pertaining to the transactions contemplated by the foregoing, as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“MezzCo Warrantholder” shall mean, individually
or collectively as the context indicates, each holder from time to time of a
MezzCo Warrant pursuant to the MezzCo Warrant Documents.

 33
 

“Moody’s” shall mean Moody’s Investors Service,
Inc.

“Multiemployer Plan” shall mean as to any
Person, a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA and to
which such Person is making, or is obligated to make (or made or was obligated
to make in the preceding five-year period) contributions.

“Net Cash Flow” shall mean, for any period, the
amount obtained by subtracting Operating Expenses and Capital Expenditures for
such period from Gross Income from Operations for such period.

“Net Cash Flow Schedule” shall have the meaning
set forth in Section 5.1.11(b).

“Net Operating Income” shall mean, for any
period, the amount obtained by subtracting Operating Expenses for such period
from Gross Income from Operations for such period.

“Net Proceeds” shall have the meaning set forth
in Section 6.4(b).

“Net Proceeds Deficiency” shall have the
meaning set forth in Section 6.4(b)(vi).

“New
Mezzanine Borrower” shall have the meaning set forth in Section
9.1.2(b).

“New
Mezzanine Loan” shall have the meaning set forth in Section
9.1.2(b).

“Note” shall mean that certain Promissory Note
of even date herewith in the principal amount of up to $820,000,000, made by
Borrower in favor of Lender, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

“O&M Agreement” shall mean that certain
Operations and Maintenance Agreement, dated as of the date hereof, between
Borrower and Lender given in connection with the Loan, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

“Officer’s Certificate” shall mean a
certificate delivered to Lender by Borrower which is signed by an authorized
senior officer of Borrower or by the general partner or managing member of
Borrower, as applicable.

“OpBiz” shall have the meaning set forth in the
introductory paragraph hereto.

“OpBiz Pledge Agreement” shall mean that
certain Pledge and Security Agreement, dated as of the date hereof, by MezzCo
in favor of Lender with respect to the interests in OpBiz, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to
time.

“Operating Agreement” shall mean, individually
or collectively as the context indicates, any agreement entered into by
Borrower, any Affiliate thereof or by any other Person on behalf of Borrower or
any Affiliate thereof or otherwise binding upon Borrower, relating to the
ownership, operation or maintenance of the Property or any portion thereof;
provided that the foregoing shall not include (i) usual and customary
contracts, agreements and arrangements with

 34
 

respect to guests staying at the Hotel Component
entered into with third parties that, when taken as a whole with all other such
agreements with respect to the Hotel Component, are on an arm’s-length basis in
the ordinary course of business, (ii) contracts or agreements entered into with
any performing artist in the ordinary course of business in respect of events
or performances held at the Property, and (iii) usual and customary
arrangements with respect to activities at the Casino Component entered into
with third party casino players on an arm’s-length basis in the ordinary course
of business.

“Operating
Expenses” shall mean, for any period, the total of all
expenditures, computed in accordance with GAAP, of whatever kind during such
period relating to the operation, maintenance and management of the Property
that are incurred on a regular monthly or other periodic basis, including
without limitation, utilities, ordinary repairs and maintenance (which ordinary
repairs and maintenance for the purposes of this definition shall be no less
than an assumed expense of $100,000 per month), insurance, license fees,
property taxes and assessments, advertising expenses, management fees, payments
required to be made to Utility Provider pursuant to the Utility Service
Agreement, payroll and related taxes, computer processing charges, tenant
improvements and leasing commissions, operational equipment or other lease
payments as reasonably approved by Lender (as and to the extent such approval
is required hereunder), and other similar costs, but excluding depreciation,
Debt Service, Capital Expenditures, and contributions to the Tax and Insurance
Escrow Fund, the FF&E Reserve Fund and any other reserves required under the
Loan Documents.

“Operating Permits” shall have the meaning set
forth in Section 4.1.21.

“Other Charges” shall mean all ground rents,
maintenance charges, impositions other than Taxes, and any other charges,
including, without limitation, vault charges and license fees for the use of
vaults, chutes and similar areas adjoining the Property, now or hereafter
levied or assessed or imposed against the Property or any part thereof.

“Parking Agreement” shall mean that certain
Common Parking Area Use Agreement, dated as of February 26, 1998, by and
between OpBiz (as assignee thereunder) and Retail Mall Owner (as assignee
thereunder), as amended and modified by the terms of the Order of the
Bankruptcy Court, entered October 7, 2002 and as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“Patents” shall mean, collectively, all 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.

“PATRIOT Act Certification” shall mean, with
respect to any Person, a certification in substantially the same form as the
form of certification attached hereto as Exhibit R and otherwise
reasonably acceptable to Lender.

“Payment Date” shall mean the ninth (9th) day of each calendar month during the term of the
Loan or, if such day is not a Business Day, the immediately preceding Business
Day.

 35
 

“PBGC” shall mean the Pension Benefit Guaranty
Corporation or any successor.

“Pension Plan” shall mean any Plan which is
subject to the provisions of Title IV of ERISA.

“Permitted Encumbrances” shall mean,
collectively, any of the following: (a) the Liens and security interests
created by the Loan Documents, (b) with respect to the Resort Land and the
Improvements thereon and the Timeshare Project Land and the Improvements
thereon, all Liens, encumbrances and other matters disclosed in the Title
Insurance Policy delivered to Lender on or prior to the date hereof, (c) Liens,
if any, for Taxes imposed by any Governmental Authority not yet due or
delinquent, (d) Liens in respect to property or assets imposed by law which are
incurred in the ordinary course of business and which are bonded or insured
over to Lender’s reasonable satisfaction and are being diligently contested by
Borrower (at its own cost and expense) in appropriate legal proceedings in
accordance with the terms of this Agreement, (e) any attachment or judgment
lien on the Property, provided that the judgment it secures shall have been
discharged or execution thereof stayed pending appeal within the earlier of
sixty (60) days after the entry thereof and the date that is ten (10) days
prior to the earlier to occur of the Maturity Date or the date on which the
Property is scheduled to be sold for non-payment, and, in the case of a stay
pending appeal, shall have been discharged within the earlier of sixty (60)
days after the expiration of any such stay and the date that is ten (10) days
prior to the earlier to occur of the Maturity Date or the date on which the
Property is scheduled to be sold for non-payment, (f) easements, rights-of-way,
restrictions (including zoning restrictions), defects or irregularities in
title affecting the Property to which like properties are commonly subject
which have not been granted or created by Borrower in violation of any term of
this Agreement prohibiting such grant or creation and which do not (i)
interfere with the benefits to be provided by the Security Instrument
encumbering the Property, (ii) adversely affect the operation, use, value,
enjoyment or marketability of the Property in any material respect, or (iii)
adversely affect Borrower’s ability to repay the Loan in full (g) Leases and
the rights of tenants thereunder (as tenants only) in existence on the date
hereof or otherwise permitted to be entered into in accordance with the terms
hereof, and (h) such other title and survey exceptions as Lender has approved
or may approve in writing in Lender’s sole discretion.

“Permitted Indebtedness” shall mean,
collectively, (a) the Debt, (b) unsecured trade and operational debt (including
equipment financing leases) relating to the ownership and operation of the
Property and the routine administration of Borrower incurred in the ordinary
course of business with trade creditors and in amounts as are normal and
reasonable under the circumstances, are not evidenced by a note, are required
to be paid within sixty (60) days after same are incurred and are paid when
due; provided, that the aggregate amount of Indebtedness described in
the foregoing clause (b) (including capital leases and any accrued and unpaid
amounts payable by Borrower to any BH Guarantor pursuant to, and in accordance
with, the terms of the Guarantee Fee Agreement, but excluding such indebtedness
that relates solely to any Project) shall not exceed three and a half percent
(3.5%) of the Loan Amount, (c) accrued and unpaid payroll, benefits and payroll
taxes with respect to employees of OpBiz or its Affiliates engaged with respect
to the Property incurred in the ordinary course of business and paid when due,
provided that the aggregate amount of Indebtedness described in the foregoing
clause (c) (other than to the extent such indebtedness relates solely to any
Project) shall not exceed three percent (3%) of the Loan Amount,
(d) agreements with providers of Gaming Equipment entered

 36
 

into in the ordinary course of business and paid when
due pursuant to which OpBiz is required to split profits derived from the
operation thereof, (e) usual and customary gaming deposits accepted in the
ordinary course of business with respect to the operation of the Casino
Component, including (without limitation) slot club point liability, customer
deposits, unpaid tickets and progressive reserves, (f) payments required
to be made by Borrower to Utility Provider pursuant to the Utility Service
Agreement (which payments are made by Borrower as an Operating Expense), and
(g) such other Indebtedness specifically permitted pursuant to this Agreement.

“Permitted Investments” shall mean any one or
more of the following obligations or securities with maturities of not more
than three hundred sixty-five (365) days acquired at a purchase price of not
greater than par, including those issued by Lender, the trustee under any Securitization
or any of their respective Affiliates, payable on demand or having a maturity
date not later than the Business Day immediately prior to the first Payment
Date following the date of acquiring such investment and meeting one of the
appropriate standards set forth below:

(i)            obligations of, or obligations fully
guaranteed as to payment of principal and interest by, the United States or any
agency or instrumentality thereof, provided such obligations are backed by the
full faith and credit of the United States of America including, without
limitation, obligations of:  the U.S.
Treasury (all direct or fully guaranteed obligations), the Farmers Home
Administration (certificates of beneficial ownership), the General Services
Administration (participation certificates), the U.S. Maritime Administration
(guaranteed Title XI financing), the Small Business Administration (guaranteed
participation certificates and guaranteed pool certificates), the U.S.
Department of Housing and Urban Development (local authority bonds) and the
Washington Metropolitan Area Transit Authority (guaranteed transit bonds); provided,
however, that the investments described in this clause (i) must (A) have a
predetermined fixed dollar of principal due at maturity that cannot vary or change,
(B) if rated by S&P, must not have an “r” highlighter affixed to their
rating, (C) if such investments have a variable rate of interest, such interest
rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must
not be subject to liquidation prior to their maturity;

(ii)           Federal Housing Administration
debentures;

(iii)          obligations of the following United
States government sponsored agencies: 
Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit
System (consolidated systemwide bonds and notes), the Federal Home Loan Banks
(consolidated debt obligations), the Federal National Mortgage Association
(debt obligations), the Financing Corp. (debt obligations), and the Resolution
Funding Corp. (debt obligations); provided, however, that the
investments described in this clause (iii) must (A) have a predetermined fixed
dollar of principal due at maturity that cannot vary or change, (B) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (C) if such
investments have a variable rate of interest, such interest rate must be tied
to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject
to liquidation prior to their maturity;

 37
 

(iv)          federal funds, unsecured certificates
of deposit, time deposits, bankers’ acceptances and repurchase agreements with
maturities of not more than 365 days of any bank, the short-term obligations of
which at all times are rated in the highest short-term rating category by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one
Rating Agency in the highest short-term rating category and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities); provided, however, that the investments described in this
clause (iv) must (A) have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not have an “r”
highlighter affixed to their rating, (C) if such investments have a variable
rate of interest, such interest rate must be tied to a single interest rate
index plus a fixed spread (if any) and must move proportionately with that
index, and (D) such investments must not be subject to liquidation prior to their
maturity;

(v)           fully Federal Deposit Insurance
Corporation-insured demand and time deposits in, or certificates of deposit of,
or bankers’ acceptances issued by, any bank or trust company, savings and loan
association or savings bank, the short-term obligations of which at all times
are rated in the highest short-term rating category by each Rating Agency (or,
if not rated by all Rating Agencies, rated by at least one Rating Agency in the
highest short-term rating category and otherwise acceptable to each other
Rating Agency, as confirmed in writing that such investment would not, in and
of itself, result in a downgrade, qualification or withdrawal of the initial,
or, if higher, then current ratings assigned to the Securities); provided,
however, that the investments described in this clause (v) must (A) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an “r” highlighter affixed to
their rating, (C) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (D) such
investments must not be subject to liquidation prior to their maturity;

(vi)          debt obligations with maturities of
not more than 365 days and at all times rated by each Rating Agency (or, if not
rated by all Rating Agencies, rated by at least one Rating Agency and otherwise
acceptable to each other Rating Agency, as confirmed in writing that such
investment would not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities) in its highest long-term unsecured rating category; provided,
however, that the investments described in this clause (vi) must (A) have a
predetermined fixed dollar of principal due at maturity that cannot vary or
change, (B) if rated by S&P, must not have an “r” highlighter affixed to
their rating, (C) if such investments have a variable rate of interest, such
interest rate must be tied to a single interest rate index plus a fixed spread
(if any) and must move proportionately with that index, and (D) such
investments must not be subject to liquidation prior to their maturity;

(vii)         commercial paper (including both
non-interest-bearing discount obligations and interest-bearing obligations
payable on demand or on a specified date not more than one year after the date
of issuance thereof) with maturities of not more than

 38
 

365 days and that at all
times is rated by each Rating Agency (or, if not rated by all Rating Agencies,
rated by at least one Rating Agency and otherwise acceptable to each other
Rating Agency, as confirmed in writing that such investment would not, in and
of itself, result in a downgrade, qualification or withdrawal of the initial,
or, if higher, then current ratings assigned to the Securities) in its highest
short-term unsecured debt rating; provided, however, that the
investments described in this clause (vii) must (A) have a predetermined fixed
dollar of principal due at maturity that cannot vary or change, (B) if rated by
S&P, must not have an “r” highlighter affixed to their rating, (C) if such
investments have a variable rate of interest, such interest rate must be tied
to a single interest rate index plus a fixed spread (if any) and must move
proportionately with that index, and (D) such investments must not be subject
to liquidation prior to their maturity;

(viii)        units of taxable money market funds,
which funds are regulated investment companies, seek to maintain a constant net
asset value per share and invest solely in obligations backed by the full faith
and credit of the United States, which funds have the highest rating available
from each Rating Agency (or, if not rated by all Rating Agencies, rated by at
least one Rating Agency and otherwise acceptable to each other Rating Agency,
as confirmed in writing that such investment would not, in and of itself,
result in a downgrade, qualification or withdrawal of the initial, or, if
higher, then current ratings assigned to the Securities) for money market
funds; and

(ix)           any other security, obligation or
investment which has been approved as a Permitted Investment in writing by (A)
Lender and (B) each Rating Agency, as evidenced by a written confirmation that
the designation of such security, obligation or investment as a Permitted
Investment will not, in and of itself, result in a downgrade, qualification or
withdrawal of the initial, or, if higher, then current ratings assigned to the
Securities by such Rating Agency;

provided, however, that in the judgment of the Lender, such
instrument continues to qualify as a “cash flow investment” pursuant to Section
860G(a)(6) of the Bankruptcy Code earning a passive return in the nature of
interest and that no obligation or security shall be a Permitted Investment if
(A) such obligation or security evidences a right to receive only interest
payments, or (B) the right to receive principal and interest payments on such
obligation or security are derived from an underlying investment that provides
a yield to maturity in excess of one hundred twenty percent (120%) of the yield
to maturity at par of such underlying investment.

“Permitted Transfer” shall have the meaning set
forth in Section 5.2.10.

“Person” shall mean any individual,
corporation, partnership, joint venture, limited liability company, estate,
trust, unincorporated association, any federal, state, county or municipal
government or any bureau, department or agency thereof and any fiduciary acting
in such capacity on behalf of any of the foregoing.

“Personal Property” shall have the meaning set
forth in the granting clause of each Security Instrument.

 39
 

“PH Entity” shall mean, individually or
collectively as the context indicates, each of PHI, PHIV and PHMemo.

“PHI” shall mean Planet Hollywood
International, Inc., a Delaware corporation, in its capacity as a party to the
PH License, together with its successors and assigns in such capacity.

“PHIV” shall mean Planet Hollywood (Region IV),
Inc., a Minnesota corporation, in its capacity as a party to the PH License,
together with its successors and assigns in such capacity.

“PH License” shall mean that certain Amended
and Restated Planet Hollywood Resort & Casino Licensing Agreement, dated as
of August 9, 2004, among Borrower, PHI, PHMemo and PHIV, as supplemented by
that certain letter agreement dated as of August 9, 2004 and executed by PHI,
PHMemo and PHIV, and as amended by that certain Amendment to Amended and
Restated Planet Hollywood Resort & Casino Licensing Agreement, dated as of
the date hereof, as the same may be amended, supplemented, replaced or
otherwise modified from time to time in accordance with the provisions hereof.

“PHMemo” shall mean Planet Hollywood Memorabilia,
Inc., a Florida corporation, in its capacity as a party to the PH License,
together with its successors and assigns in such capacity.

“PH Security Agreement” shall mean that certain
Security Agreement, dated as of the date hereof, by and among PHI, PHIV and
PHMemo in favor of Lender, as the same may be amended, supplemented, replaced
or otherwise modified from time to time in accordance with the provisions
hereof.

“Plan” shall mean any pension plan, as defined
in Section 3(2) of ERISA (other than a Multiemployer Plan), which is maintained
or contributed to by (or to which there is an obligation to contribute of)
Borrower or an ERISA Affiliate and each such plan for the five-year period
immediately following the latest date on which Borrower or an ERISA Affiliate
maintained, contributed to or had an obligation to contribute to such plan.

“Plans and Specifications” shall mean, with
respect to any Project, collectively, the plans and specifications for the
construction of such Project, including (without limitation) a description of
the materials, equipment and fixtures necessary for the construction of such
Project, any other architectural, structural, foundation and elevator plans and
specifications prepared by any Architect or Engineer and any mechanical,
electrical, plumbing and fire protection plans and specifications prepared by
any Person retained or to be retained by (or on behalf of) Borrower, any
Affiliate thereof or any Construction Manager, together with all Change Orders
applicable thereto, provided that such Change Orders have been approved to the
extent required hereunder.

“Policies” shall have the meaning specified in Section 6.1(b).

“Prescribed Laws” shall mean, collectively, (a)
the Uniting and Strengthening America by Providing Appropriate Tools Required
to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (The USA
PATRIOT Act), (b) Executive Order No. 13224 on Terrorist Financing, effective
September 24, 2001, and relating to Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism,
(c) the

 40
 

International Emergency Economic Power Act, 50 U.S.C.
§ 1701 et seq. and (d) all other Legal Requirements relating to money
laundering or terrorism.

“Prime Rate” shall mean the annual rate of
interest publicly announced by Citibank, N.A. in New York, New York, as its
base rate, as such rate shall change from time to time.  If Citibank, N.A. ceases to announce a base
rate, Prime Rate shall mean the rate of interest published in The Wall Street
Journal from time to time as the “Prime Rate.” 
If more than one “Prime Rate” is published in The Wall Street Journal
for a day, the average of such “Prime Rates” shall be used, and such average
shall be rounded up to the nearest one-eighth of one percent (0.125%).  If The Wall Street Journal ceases to publish
the “Prime Rate,” Lender shall select an equivalent publication that publishes
such “Prime Rate,” and if such “Prime Rates” are no longer generally published
or are limited, regulated or administered by a governmental or
quasi-governmental body, then Lender shall select a comparable interest rate
index.

“Prime Rate Loan” shall mean the Loan at such
time as interest thereon accrues at a rate of interest based upon the Prime
Rate.

“Prime Rate Spread” shall mean the positive
difference (if any), expressed as the number of basis points, obtained by
subtracting (i) the Prime Rate on the date that LIBOR was last applicable to
the Loan, from (ii) LIBOR plus the Spread on the date LIBOR was last applicable
to the Loan.

“Project” shall mean either individually or
collectively as the context indicates, the Renovation Project and any Future
Project.

“Project Advance” shall mean, either
individually or collectively as the context indicates, any Renovation Project
Advance and/or Future Project Advance.

“Project Advance Request” shall mean, with
respect to any Project Advance, a request for such Project Advance made by
Borrower pursuant to Section 3.1, substantially in the form attached as Exhibit
C, together with all documents, certificates and deliveries required by
this Agreement to be furnished to Lender and/or Construction Consultant in
connection with, or as a condition to, such Project Advance.

“Project Budget” shall mean, (i) with respect
to the Renovation Project, the budget for total Project Costs for the
Renovation Project delivered to Lender on or prior to the date hereof, and (ii)
with respect to any other Project, the detailed budget for total Project Costs
for such Project, setting forth and identifying all Hard Costs and Soft Costs,
prepared by (or on behalf of) Borrower or any Affiliate thereof and reasonably
approved by Lender, in each case as the same may be adjusted due to changes or
reallocations made in accordance with this Agreement or otherwise amended,
supplemented or modified from time to time in accordance with the terms hereof,
and which, in any event shall set forth estimates for budgeted construction
categories of all items of direct and indirect costs and expenses to be
incurred or payable with respect to such Project.

“Project Costs” shall mean, with respect to
each Project, collectively, all Hard Costs and Soft Costs incurred or to be
incurred in connection with the development, design, engineering, procurement,
installation and construction of such Project until Final Completion thereof,

 41
 

including (without limitation) working capital and
carrying costs, in each case as set forth in the Project Budget for such
Project and reasonably approved by Lender in accordance with the requirements
hereof.

“Project Documents” shall mean, with respect to
each Project, collectively, the following to the extent relating to such
Project, (i) the Project Plan, (ii) the Plans and Specifications, (iii) the
Project Budget, (iv) the Construction Schedule, (v) the Disbursement Schedule,
(vi) all Project Advance Requests, (vii) all Construction Contracts, (viii) the
Construction Permits, (ix) all Change Orders, and (x) all other agreements,
certificates or other documents to which Borrower or any Affiliate thereof is a
party, or otherwise subject to, or is a beneficiary, in each case relating to
such Project or any part thereof, in each case as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

“Project Improvements” shall mean, as the
context shall indicate, each of (i) the Renovation Project Improvements, and
(ii) any Future Project Improvements.

“Project Plan” shall mean, with respect to each
Project, a general description of such Project prepared by (or on behalf of)
Borrower or any Affiliate thereof and setting forth the scope of intended work
and other material characteristics of such Project and approved by Lender in
its reasonable discretion, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

“Property” shall mean, collectively, the Resort
Property and, until released pursuant to the terms hereof, the Timeshare
Project Property.

“Property Bank” shall mean (i) on the date
hereof, Wells Fargo Bank, N.A., so long as the same remains an Eligible
Institution, (ii) after the date hereof, any successor Eligible Institution
designated as Property Bank from time to time in accordance with the terms
hereof, or (iii) any other financial institution otherwise reasonably approved
by Lender and, if a Securitization has occurred, with respect to which a rating
Agency Confirmation has been obtained.

“Provided Information” shall mean any and all
financial and other information provided at any time by, or on behalf of, any
Indemnifying Person with respect to the Property, either Borrower, Guarantor
and/or any Affiliated Manager.

“Punchlist Items” shall mean, with respect to
any Project, any detail of construction or mechanical adjustment, the
non-completion of which, when all such items are taken together as a whole,
will not interfere in any material respect with the use or occupancy of any
portion of such Project for its intended purposes; provided, however,
that, in all events, Punchlist Items shall include (i) all items set forth in
the “punchlist” to be delivered by Borrower prior to any final payment or
release of any Retainage to any Trade Contractor with respect thereto, and (ii)
all items that are listed on the “punchlists” prepared by Borrower based upon
the inspection of such Project by Governmental Authorities in connection with
the issuance of Certificate of Occupancy.

 

 42

“Qualified Manager” means (a) with respect to
the Hotel Component, Sheraton Manager or any Affiliate thereof primarily
engaged in the management of hotels of at least a Comparable Standard, (b) with
respect to the Hotel Component and/or the Casino Component, OpBiz, so long as
the same is Controlled by Sponsor and maintains all required Gaming Licenses in
accordance with all applicable Gaming Laws, (c) with respect to the Casino
Component any reputable, experienced professional management company that is duly
licensed by the Gaming Authorities and which directly, or through one or more
Affiliates, shall have at least ten (10) years experience in the management of
casino and other gaming facilities of at least a Comparable Standard, (d) with
respect to any portion of the Property other than the Casino Component
(including, without limitation, the TPA Component), any reputable and
experienced professional management company which directly, or through one or
more Affiliates, shall have at least ten (10) years experience in the
management of facilities of at least a Comparable Standard, and (e) any other
Person approved by Lender in its reasonable discretion in advance of the
effective date of the applicable management, operating or other relevant
agreement(s); provided that, in the case of clauses (c), (d) and (e) above, (i)
Borrower shall have obtained a Rating Agency Confirmation with respect to
management of the Property by such Person, and (ii) if such Person is an
Affiliate of Borrower, Borrower shall have obtained an Additional Insolvency
Opinion.

“Rating Agencies” shall mean each of S&P,
Moody’s and Fitch, or any other nationally recognized statistical rating agency
which has been approved by Lender.

“Rating Agency Confirmation” means,
collectively, a written affirmation from each of the Rating Agencies that the
credit rating of the Securities given by such Rating Agency of such Securities
immediately prior to the occurrence of the event with respect to which such
Rating Agency Confirmation is sought will not be qualified, downgraded or
withdrawn as a result of the occurrence of such event, which affirmation may be
granted or withheld in such Rating Agency’s sole and absolute discretion.  In the event that, at any given time, no such
Securities shall have been issued and are then outstanding, then the term
Rating Agency Confirmation shall be deemed instead to require the written
approval of Lender based on its good faith determination of whether the Rating
Agencies would issue a Rating Agency Confirmation if any such Securities were
outstanding.

“REA” shall mean that certain Construction,
Operation and Reciprocal Easement Agreement, dated as of February 26, 1998,
among Fee Owner (as successor in interest and assignee thereunder) and Retail
Mall Owner (as successor in interest and assignee thereunder), as amended by
(i) that certain Amendment and Ratification of Construction, Operation and
Reciprocal Easement Agreement, dated as of November 20, 2000, (ii) that
certain Second Amendment of Construction, Operation and Reciprocal Easement
Agreement, dated as of February 2003. and (iii) the REA Amendment
Agreement, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

“REA Amendment Agreement” shall mean that
certain Agreement and Amendment to Construction, Operation and reciprocal
Easement Agreement, dated as of July 2005, between Fee Owner (as successor in
interest and assignee thereunder) and Retail Mall Owner (as successor in
interest and assignee thereunder), as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time.

 43
 

“Recourse Guaranty” shall mean, either
individually or collectively as the context indicates, each of (i) the BH
Recourse Guaranty, (ii) the DT Recourse Guaranty, and (iii) the RE Recourse
Guaranty.

“Re-Dating” shall have the meaning set forth in
Section 9.1.3.

“RE Recourse Guaranty” shall mean that certain
Recourse Guaranty, dated as of the date hereof, made by RE Guarantor in favor
of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with the terms hereof.

“RE Guarantor” shall mean, Robert Earl, an
individual and the holder as of the date hereof of a fifty percent (50%) voting
interest in BH/RE, in his capacity as a Guarantor hereunder, together with his
successors and permitted assigns in such capacity.

“Regulation
AB” shall mean Regulation AB under the Securities Act and
the Exchange Act, as such Regulation may be amended from time to time.

“Related
Loan” shall mean a loan to an Affiliate of Borrower or
secured by a Related Property, that is included in a Securitization with the
Loan.

“Related
Property” shall mean a parcel of real property, together
with improvements thereon and personal property related thereto, that is “related”
within the meaning of the definition of Significant Obligor, to the Property.

“Release” shall mean any release, deposit,
discharge, emission, leaking, leaching, spilling, seeping, migrating,
injecting, pumping, pouring, emptying, escaping, dumping, disposing, growing or
other movement of Hazardous Substances.

“REMIC Trust” shall mean a “real estate
mortgage investment conduit” within the meaning of Section 860D of the
Code that holds the Note.

“Renovation Project” shall mean, collectively,
the construction, development and completion of the Renovation Project
Improvements and other work in accordance with, and as more particularly
described in, the Renovation Project Documents and all activities in
furtherance thereof.

“Renovation Project Advance” shall mean an
advance of any portion of the Future Funding Amount pursuant to the provisions
of this Agreement with respect to Project Costs relating to the Renovation
Project, including (without limitation) any disbursement of Renovation Project
Reserve Funds from the Renovation Project Reserve Account.

“Renovation Project Budget” shall mean the
Project Budget with respect to the Renovation Project.

“Renovation Project Documents” shall mean the
Project Documents with respect to the Renovation Project.

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“Renovation Project Improvements” shall mean,
collectively, the structures and other improvements to be constructed on
portions of the Property, together with related facilities and amenities, as
described in the Renovation Project Plan approved by Lender on or prior to the
date hereof and more specifically set forth in the Plans and Specifications for
the Renovation Project.

“Renovation Project Plan” shall mean the
Project Plan with respect to the Renovation Project.

“Renovation Project Reserve Account” shall have
the meaning set forth in Section 7.5.1.

“Renovation Project Reserve Funds” shall have
the meaning set forth in Section 7.5.2.

“Renovation Project Substantial Completion Deadline”
shall mean, subject to any Excusable Delay, (i) with respect to that portion
and/or phase of the Renovation Project comprising the façade and plaza
renovation as more particularly described in the Project Plan for the
Renovation Project, December 31, 2007, and (ii) with respect to all other
portions and/or phases of the Renovation Project, August 31, 2007.

“Rents”
shall mean, all rents, rent equivalents, moneys payable as damages or in lieu
of rent or rent equivalents, royalties (including, without limitation, all oil
and gas or other mineral royalties and bonuses), income, receivables, receipts,
revenues, deposits (including, without limitation, security, utility and other
deposits), accounts, cash, issues, profits, charges for services rendered, and
other consideration of whatever form or nature received by or paid to or for
the account of or benefit of Borrower or its agents or employees from any and
all sources arising from or attributable to the Property, and proceeds, if any,
from business interruption or other loss of income or insurance, including,
without limitation, all hotel receipts, revenues and credit card receipts
collected from guest rooms, restaurants, bars, meeting rooms, banquet rooms and
recreational facilities, all receivables, customer obligations, installment
payment obligations and other obligations now existing or hereafter arising or
created out of the sale, lease, sublease, license, concession or other grant of
the right of the use and occupancy of property or rendering of services by Borrower
or any operator or manager of the hotel or the commercial space located in the
Improvements or acquired from others (including, without limitation, from the
rental of any office space, retail space, guest rooms or other space, halls,
stores, and offices, and deposits securing reservations of such space),
license, lease, sublease and concession fees and rentals, health club
membership fees, food and beverage wholesale and retail sales, service charges,
vending machine sales and proceeds, if any, from business interruption or other
loss of income insurance; provided that Rents shall not include amounts, such
as restaurant room charges and Nevada entertainment taxes, paid to
Borrower or its Affiliates and in respect of which Borrower or its Affiliates,
as applicable, act solely as a collection and payment agent on behalf of any
Person (excluding an Affiliate of Borrower, but including restaurant room
charges payable to a Tenant that is an Affiliate of Borrower under a Lease that
has been approved by Lender in accordance with the terms hereof), receiving
such amounts from the Person obligated to pay, and paying over such amounts to
the Person entitled to receive same, all in the ordinary course of business of
Borrower and its Affiliates, as applicable (collectively, “Pass-Through
Amounts”).

“Replacement Interest Rate Cap Agreement” means
an interest rate cap agreement from an Acceptable Counterparty with terms
identical to the Interest Rate Cap Agreement except that 

 45
 

the same shall (i) with respect to any replacement of
the Interest Rate Cap Agreement following a downgrade, withdrawal or
qualification of the long-term unsecured debt rating of the Counterparty prior
to the Initial Maturity Date, have a strike price equal to the Strike Price
(ii) with respect to any new Interest Rate Cap Agreement obtained with
respect to any Extension Term, have a strike price in excess of the sum of 1%
and LIBOR at the time that the Replacement Interest Rate Cap Agreement becomes
effective and (iii) in any event, be effective in connection with an extension
of the term or the replacement of the Interest Rate Cap Agreement following a
downgrade, withdrawal or qualification of the long-term unsecured debt rating
of the Counterparty; provided, that to the extent any such interest rate
cap agreement does not meet the foregoing requirements, a “Replacement Interest
Rate Cap Agreement” shall be such interest rate cap agreement approved in
writing by each of the Rating Agencies.

“Replacement Management Agreement” shall mean,
collectively, (a) either (i) a management agreement with a Qualified Manager
substantially in the same form and substance as the Management Agreement being
replaced, or (ii) a management agreement with a Qualified Manager, which
management agreement shall be reasonably acceptable to Lender in form and
substance, provided, with respect to this clause (ii), Lender, at its option,
may require that Borrower obtain a Rating Agency Confirmation; and (b) with
respect to the Property or any portion thereof, an assignment of management
agreement substantially in the form of the Assignment of Management Agreement
(or of such other form and substance reasonably acceptable to Lender), executed
and delivered to Lender by Borrower and such Qualified Manager at Borrower’s
expense.

“Reportable Event” shall mean a “Reportable
Event” as defined in Section 4043(b) of ERISA.

“Required Repair and Remediation Account” shall
have the meaning set forth in Section 7.1.1.

“Required Repair and Remediation Fund” shall
have the meaning set forth in Section 7.1.1.

“Required Repairs and Remediation” shall have
the meaning set forth in Section 7.1.1.

“Reserve Account” shall mean any one of the Tax
and Insurance Escrow Account, the FF&E Reserve Account, the Interest
Reserve Account, the Required Repair and Remediation Account, the Renovation
Project Reserve Account, the Future Project Reserve Account, the General
Reserve Account, the Timeshare Project Proceeds Account, the Excess Cash
Reserve Account, the Accrual Adjustment Reserve Account, any account in which
Deficiency Cash Collateral is being held under the terms of this Agreement and
any other escrow fund or reserve account established pursuant to the Loan
Documents.

“Reserve Funds” shall mean, collectively, the
Tax and Insurance Escrow Fund, the FF&E Reserve Fund, the Interest Reserve
Fund, the Required Repair and Remediation Fund, the Renovation Project Reserve
Fund, the Future Project Reserve Fund, the General Reserve Fund, the Timeshare
Project Proceeds Fund, the Excess Cash Reserve Fund, the Accrual Adjustment
Reserve Funds and any other funds held or maintained pursuant to the Loan
Documents.

 46
 

“Resort Land” shall mean the land and all
appurtenant rights thereto as described on Schedule II-A attached
hereto.

“Resort Property” shall mean, collectively and
as applicable to each Borrower, the Resort Land, the Improvements thereon and
all personal property owned or leased by either Borrower and encumbered by the
Security Instrument executed by Borrower, together with all rights pertaining
to such property and Improvements, comprising all right, title and interest of
each Borrower in and to the Hotel Component, the Casino Component, the Utility
Component and the TPA Component, as more particularly described in the granting
clause of the Security Instrument executed by Borrower and referred to therein
as the “Property”

“Restoration” shall mean the repair and
restoration of the Property after a Casualty or Condemnation as nearly as
possible to the condition the Property was in immediately prior to such Casualty
or Condemnation, with such alterations permitted in accordance with this
Agreement or as may be otherwise reasonably approved by Lender.

“Restricted Party” shall mean, collectively (i)
each Borrower, (ii) Mezz I Borrower, (iii) Mezz II Borrower, (iv) TSP Owner,
(v) MezzCo, (vi) each Guarantor (other than an individual), (vii) any
Affiliated Manager, and (viii) any other Borrower Party.

“Retail Mall” shall mean, collectively, the
land and improvements comprising the retail mall located adjacent to the Property
and more particularly described as the “Bazaar Site” in the REA.

“Retail Mall Owner” shall mean Boulevard
Invest, LLC, a Delaware limited liability company and the owner of the Retail
Mall, together with its successors and assigns in such capacity.

“Retainage” shall mean, for each Trade Contract
(other than certain de minimis
contracts under which no retainable is held in the ordinary course in
accordance with usual and customary industry practice), the greater of (i) ten
percent (10%) of all Hard Costs funded to the Trade Contractor (or any General
Contractor to the extent any General Contractor is performing the work) under
such Trade Contract until such time as the Work provided thereunder is fifty
percent (50%) complete as certified by the Construction Consultant, at which
time the Retainage shall be reduced to five percent (5%) of such Hard Costs
until the Work provided thereunder has been completed, and (ii) the actual
retainage required by applicable Legal Requirements or permitted under such Trade
Contract.

“Revenue” shall mean, collectively, (i) all
Rents arising with respect to the Property, (ii) all other Gross Income from
Operations arising with respect to the Property, (iii) any and all Timeshare
Project Proceeds received by, paid to, or for the benefit of Borrower or any of
its Affiliates, and (iv) any and all income, proceeds and revenue received by,
paid to, or for the benefit of Borrower or any of its Affiliates pursuant to
any Material Operating Agreements; provided that Revenue shall not include
Pass-Through Amounts.

“S&P” shall mean Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies.

 47
 

“Sale or
Pledge” shall mean a voluntary or involuntary sale,
conveyance, assignment, transfer, encumbrance, pledge, grant of option or other
disposal of a legal or beneficial interest, whether direct or indirect.

“Schedule X Project” shall have the meaning set
forth in Section 5.2.11(a).

“Second Loan Year” shall mean the consecutive
twelve (12) month period from December 9, 2007, to and including December 9,
2008.

“Securities” shall have the meaning set forth
in Section 9.1.

“Securities Act” shall have the meaning set
forth in Section 9.2(a).

“Securitization” shall have the meaning set
forth in Section 9.1.

“Security Agreement (Copyrights)” shall mean a
security agreement with respect to Copyrights in substantially the same form as
the form attached hereto as Exhibit S, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

“Security Agreement (Trademarks)” shall mean a
security agreement with respect to Trademarks in substantially the same form as
the form attached hereto as Exhibit T, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

“Security Instrument” shall mean, individually
or collectively as the context indicates, each of (i) that certain first
priority Deed of Trust, Security Agreement, Assignment of Leases and Rents,
Financing Statement and Fixture Filing, dated the date hereof, executed and
delivered by Borrower as security for the Loan and encumbering the Hotel
Component and the Casino Component, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time, and (ii) that
certain first priority Deed of Trust, Security Agreement, Assignment of Leases
and Rents, Financing Statement and Fixture Filing, dated the date hereof,
executed and delivered by TSP Owner as security for the Loan and encumbering
the Timeshare Project Property, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time

“Servicer” shall have the meaning set forth in Section 9.5.

“Servicing Agreement” shall have the meaning
set forth in Section 9.5.

“Settlement Agreement” shall mean individually
or collectively as the context indicates, each of (i) that certain Settlement
Agreement and Releases, dated as of November 6, 2002, by and among Aladdin
Gaming, LLC, Utility Provider, John Hancock Life Insurance Company, John
Hancock Variable Life Insurance Company, John Hancock Reinsurance Company
Limited, State Street Bank and Trust Company and Retail Mall Owner (as assignee
and successor-in-interest thereunder), as amended by that certain First
Amendment to Settlement Agreement and Releases, dated as of December 23, 2002,
and (ii) that certain Confidential Settlement Letter, dated as June 20, 2003,
by and between (i) OpBiz, (ii) Aladdin Bazaar, LLC, (iii) The Steering
Committee, consisting of Van Kampen Funds, the Bank of Nova Scotia, Highland Capital
and PPM America, for certain lenders pursuant to the Credit Agreement, dated
February 26, 1998, 

 48
 

between The Bank of Nova Scotia, Merrill Lynch Capital
Corporation, CIBC Oppenheimer Corp. and Aladdin Gaming, LLC, as borrower, (iv)
General Electric Capital Corporation, and (v) Gaming.

“Severed Loan Documents” shall have the meaning
set forth in Section 8.2(b).

“Sheraton Manager” shall mean Sheraton
Operating Corporation, a Delaware Corporation, in its capacity as the provider
of certain management services with respect to the Hotel Component pursuant to
the Management Agreement, together with its permitted successors and assigns in
such capacity thereunder.

“Shortfall” means, with respect to any Project,
at any given time, the amount by which the sum of (i) the balance of the Future
Funding (subject to the Interest Reserve Fund allocation requirements set forth
in Section 2.1.5) yet to be advanced by Lender pursuant to this
Agreement, (ii) any Renovation Project Reserve Funds or Future Project Reserve Funds
(as applicable) then on deposit in the Renovation Project Reserve Account or
Future Project Reserve Account (respectively), and (iii) any General Reserve
Funds then on deposit in the General Reserve Account and available with respect
to such Project (subject to the Interest Reserve Fund allocation requirements
set forth in Section 2.1.5), is less than the actual sum, as
reasonably estimated by Lender (based on advice of Construction Consultant),
which will be required to complete the construction of such Project in
accordance with the Plans and Specifications and other Project Documents for
any Project, this Agreement and the other Loan Documents and all Legal
Requirements, and to pay all unpaid Project Costs in connection therewith.

“Significant
Obligor” shall have the meaning set forth in
Item 1101(k) of Regulation AB under the Securities Act.

“Soft Costs” shall mean, with respect to each
Project, collectively, the costs set forth in the Project Budget for such
Project which are not Hard Costs, including, without limitation, fees and
expenses of any Architect, Developer, Construction Manager, Engineer or General
Contractor engaged in connection with such Project, fees and expenses of
Borrower’s counsel and Lender’s counsel, fees and expenses of the Construction
Consultant, debt service, taxes, insurance premiums and operating expenses
incurred during the construction and development phase of such Project,
pre-opening costs and expenses, operating supplies and equipment and such other
costs as are set forth in the Project Budget.

“SPE Entity” shall mean each of Fee Owner,
OpBiz, Mezz I Borrower, Mezz II Borrower, TSP Owner and MezzCo.

“Special
Purpose Entity” shall mean a corporation, limited
partnership or limited liability company that since the date of its formation
and at all times on and after the date thereof, has complied with and shall at
all times comply with the following requirements:

(a)           is formed or
organized solely for the purpose of (i) in the case of Borrower and TSP Owner,
acquiring, developing, owning, holding, selling, leasing, transferring,
exchanging, managing and operating the Property (including, without limitation,
the Timeshare Project), entering into the Loan Documents to which it is a
party, refinancing the Property in connection with a permitted repayment of the
Loan, and transacting 

 49
 

lawful
business that is incident, necessary and appropriate to accomplish the
foregoing, (ii) in the case of Mezz I Borrower, acquiring, owning, holding,
selling, pledging and transferring its interest in Fee Owner, entering into the
Loan Documents to which it is a party and transacting lawful business that is
incident, necessary and appropriate to accomplish the foregoing, (iii) in the
case of Mezz II Borrower, acquiring, owning, holding, selling, pledging and
transferring its interest in Mezz I Borrower, entering into the Loan Documents
to which it is a party and transacting lawful business that is incident,
necessary and appropriate to accomplish the foregoing, and (iv) in the case of
MezzCo, acquiring, developing, owning, holding, selling, leasing, pledging,
transferring, exchanging, managing and operating its direct interests in OpBiz
and Mezz II Borrower, entering into the Loan Documents to which it is a party,
and transacting lawful business that is incident, necessary and appropriate to
accomplish the foregoing;

(b)           is not engaged and
will not engage in any business unrelated to the acquisition, development,
ownership, management or operation of the Property or the direct or indirect
ownership interests in the entity that owns the Property (as applicable);

(c)           does not have and
will not have any assets other than those related to the Property or its direct
or indirect ownership interest in the entity that owns the Property, as
applicable;

(d)           to the fullest
extent permitted by law, has not engaged, sought or consented to and will not
engage in, seek or consent to any dissolution, winding up, liquidation,
consolidation, merger, sale of all or substantially all of its assets, transfer
of partnership or membership interests (if such entity is a general partner in
a limited partnership or a member in a limited liability company) or amendment
of its limited partnership agreement, articles of incorporation, articles of
organization, certificate of formation or operating agreement (as applicable)
with respect to the matters set forth in this definition;

(e)           if such entity is a
limited partnership, has, as its only general partners, Special Purpose
Entities that are corporations, limited partnerships or limited liability
companies;

(f)            if such entity is a
corporation, has at least two Independent Persons as directors, and has not
caused or allowed and will not cause or allow the board of directors of such
entity to take any action requiring the unanimous affirmative vote of one
hundred percent (100%) of the members of its board of directors unless two
Independent Persons as directors shall have participated in such vote;

(g)           if such entity is a
limited liability company with more than one member, has at least one member
that is a Special Purpose Entity that is a corporation or a limited liability
company that has at least two Independent Persons as managers or members and
that owns at least one percent (1.0%) of the equity of the limited liability
company;

(h)           if such entity is a
limited liability company with only one member, is a limited liability company
formed in the State of Delaware or Nevada (as applicable) that 

 50
 

has (i) at
least two Independent Persons and has not caused or allowed and will not cause
or allow the board of managers or other governing body of such entity to take
any action requiring the unanimous affirmative vote of one hundred percent
(100%) of the managers unless two Independent Persons shall have participated
in such vote, and (ii) at least one springing member that, subject to
compliance with any applicable Gaming Laws, will become the non-managing member
of such entity upon the dissolution of the existing member;

(i)            if such entity is
(i) a limited liability company, has articles of organization, a
certificate of formation and/or an operating agreement, as applicable,
(ii) a limited partnership, has a limited partnership agreement, or
(iii) a corporation, has a certificate of incorporation or articles that,
in each case, provide that such entity will not:  (A) to the fullest extent permitted by
law, dissolve, merge, liquidate, consolidate; (B) sell all or
substantially all of its assets or the assets of Borrower (as applicable); (C) engage
in any other business activity, or amend its organizational documents with
respect to the matters set forth in this definition without the consent of
Lender; provided, however, that MezzCo shall be permitted to enter into
that certain Fourth Amended and Restated Operating Agreement as described in
MezzCo’s Third Amended and Restated Operating Agreement upon the admission of
additional members in connection with the MezzCo Warrants; or (D) to the
fullest extent permitted by law, without the affirmative vote of two
Independent Persons and of all other directors, members or partners (as
applicable) of the company (that is such entity or the general partner or
managing or co-managing member of such entity), or in the case of a
limited liability company without the affirmative vote of two Independent
Persons as managers of such entity, file a bankruptcy or insolvency petition or
otherwise institute insolvency proceedings with respect to itself or to any
other entity in which it has a direct or indirect legal or beneficial ownership
interest;

(j)            is and intends to
remain solvent and pay its debts and liabilities (including, as applicable,
shared personnel and overhead expenses) from, and to the extent of, its assets
as the same shall become due, and is maintaining and, to the extent of its
assets, will maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its
contemplated business operations;

(k)           has not failed and
will not fail to correct any known misunderstanding regarding the separate
identity of such entity;

(l)            has maintained and
will maintain its accounts, books and records separate from any other Person
and will file its own tax returns, except to the extent that it is required to
file consolidated tax returns by law;

(m)          has maintained and
will maintain its own records, books, resolutions and agreements;

(n)           except as permitted
by the Loans Documents, has not commingled and will not commingle its funds or
assets with those of any other Person and has not 

 51
 

participated
and will not participate in any cash management system with any other Person;

(o)           has held and will
hold its assets in its own name;

(p)           has conducted and
will conduct its business in its name or in a name franchised or licensed to it
by an entity other than an Affiliate of Borrower, except for services rendered
under a business management services agreement with an Affiliate that complies
with the terms contained in clause (dd) below, so long as the
manager, or equivalent thereof, under such business management services
agreement holds itself out as an agent of Borrower;

(q)           has maintained and
will maintain its financial statements, accounting records and other entity
documents separate from any other Person and has not permitted and will not
permit its assets to be listed as assets on the financial statement of any
other entity except as required by GAAP; provided, that any such
consolidated financial statement shall contain a note indicating that its
separate assets and liabilities are neither available to pay the debts of the
consolidated entity nor constitute obligations of the consolidated entity;

(r)            has paid and will
pay its own liabilities and expenses, including the salaries of its own
employees, out of its own funds and assets, and has maintained and will maintain
a sufficient number of employees in light of its contemplated business
operations;

(s)           has observed and
will observe all partnership, corporate or limited liability company
formalities, as applicable;

(t)            has and will have
no Indebtedness other than Permitted Indebtedness;

(u)           has not and will not
assume or guarantee or become obligated for the debts of any other Person or
hold out its credit as being available to satisfy the obligations of any other
Person, except as permitted pursuant to the Loan Documents;

(v)           except, with respect
to Fee Owner, its limited liability company interests in TSP Owner, its sole
subsidiary and owner of the Timeshare Project Land, has not and will not
acquire obligations or securities of its partners, members or shareholders or
any other Affiliate;

(w)          has allocated and
will allocate fairly and reasonably any overhead expenses that are shared with
any Affiliate, including, but not limited to, paying for shared office space
and services performed by any employee of an Affiliate;

(x)            maintains and uses
and will maintain and use separate stationery, invoices and checks bearing its
name.  The stationery, invoices, and
checks utilized by the Special Purpose Entity or utilized to collect its funds
or pay its expenses shall bear its own name and shall not bear the name of any
other entity unless such entity is clearly designated as being the Special
Purpose Entity’s agent;

 52
 

(y)           has not pledged and
will not pledge its assets for the benefit of any other Person, except as
contemplated by the Loan Documents;

(z)            has held itself out
and identified itself and will hold itself out and identify itself as a
separate and distinct entity under its own name or in a name franchised or
licensed to it by an entity other than an Affiliate of Borrower and not as a
division or part of any other Person, except for services rendered under a
business management services agreement with an Affiliate that complies with the
terms contained in clause (dd) below, so long as the manager, or
equivalent thereof, under such business management services agreement holds
itself out as an agent of Borrower;

(aa)         has maintained and
will maintain its assets in such a manner that it will not be costly or
difficult to segregate, ascertain or identify its individual assets from those
of any other Person;

(bb)         has not made and will
not make loans to any Person or hold evidence of indebtedness issued by any
other Person or entity (other than cash and investment-grade securities
issued by an entity that is not an Affiliate of or subject to common ownership
with such entity);

(cc)         has not identified
and will not identify its partners, members or shareholders, or any Affiliate
of any of them, as a division or part of it, and has not identified itself and
shall not identify itself as a division of any other Person;

(dd)         has not entered into
or been a party to, and will not enter into or be a party to, any transaction
with its partners, members, shareholders or Affiliates except (A) in the
ordinary course of its business and on terms which are intrinsically fair,
commercially reasonable and are no less favorable to it than would be obtained
in a comparable arm’s-length transaction with an unrelated third party
and (B) in connection with this Agreement and the transactions
contemplated hereby;

(ee)         has not and will not
have any obligation to, and will not, indemnify its partners, officers,
directors or members, as the case may be, unless such an obligation is fully
subordinated to the Debt and will not constitute a claim against it in the
event that cash flow in excess of the amount required to pay the Debt is
insufficient to pay such obligation;

(ff)           if such entity is a
corporation, it shall consider the interests of its creditors in connection
with all corporate actions;

(gg)         does not and will not
have any of its obligations (other than obligations in respect of the Loan
guaranteed by any Affiliate; and

(hh)         has complied and will
comply with all of the terms and provisions contained in its organizational
documents.  The statement of facts
contained in its organizational documents are true and correct and will remain
true and correct.

 53
 

“Sponsor” shall mean, either individually or
collectively as the context indicates, each of DT Guarantor, RE Guarantor and
Starwood Sponsor.

“Spread” shall mean three and one quarter
percent (3.25%).

“Spread Maintenance” shall mean, with respect
to any repayment of any of the outstanding principal amount of the Loan prior
to and including the Spread Maintenance Outside Date (whether a voluntary or
mandatory prepayment), a payment to Lender in an amount equal to the sum of the
present values as of the date of prepayment of each future installment of the
Spread portion (i.e. the portion attributable to the Spread portion of the
Applicable Interest Rate and not to the LIBOR portion) of each payment of
interest that would have been payable under the Loan on the amount of the Loan
being prepaid from the date of such prepayment through, and including, the
Spread Maintenance Outside Date, such future installments of the Spread portion
of each payment of interest to be discounted to present value at a rate per
annum, compounded monthly, equal to 30-day LIBOR as it exists on the date of
such prepayment.

“Spread Maintenance Outside Date” shall mean
the Initial Maturity Date.

“Stabilization Date” shall mean the date on
which EBITDA with respect to the Property (other than the Timeshare Project
Property), on a trailing twelve (12) month basis, shall exceed $108,000,000.

“Starwood NH” shall mean Starwood Nevada
Holdings, LLC, a Delaware limited liability company and the holder of a fifteen
percent (15%) direct interest in EquityCo.

“Starwood Sponsor” shall mean Starwood Hotels
and Resorts Worldwide, a Maryland corporation and the direct or indirect holder
of one hundred percent (100%) of the interests in Starwood NH.

“Stored Materials” shall have the meaning set
forth in Section 3.1.12(b).

“Strike Price” shall mean six and one quarter
percent (6.25%).

“Substantial Completion” shall mean, with
respect to each Project, the completion of the construction of such Project
(except for any Punchlist Items) in accordance with the Plans and
Specifications, the other Project Documents, this Agreement and all Legal
Requirements, and that (a) all Operating Permits required for the normal use
and occupancy of the such Project, as set forth in the Plans and Specifications
and otherwise necessary for the such Project to function for its intended
purpose have been issued by the appropriate Governmental Authority and are in
full force and effect, including, without limitation, delivery to Lender of
valid temporary Certificates of Occupancy for such Project, (b) all required
utilities are supplied to such Project and are fully operating, as certified by
the applicable Architect and approved by the Construction Consultant, and (c)
such Project shall contain all furniture, fixtures and equipment required for
the use and operation of the such Project and which may be required by any
Governmental Authority.

 54
 

“Survey” shall mean a survey of the Property
(including, without limitation, the Timeshare Project Land) delivered to Lender
on the Closing Date (as revised thereafter to the extent required pursuant to
the terms of the Loan Documents).

“Tax and Insurance Escrow Account” shall have
the meaning set forth in Section 7.2.

“Tax and Insurance Escrow Fund” shall have the
meaning set forth in Section 7.2.

“Taxes” shall mean all real estate and personal
property taxes, assessments, water rates or sewer rents, now or hereafter
levied or assessed or imposed against the Property or part thereof.

“Third Loan Year” shall mean, subject to the
valid exercise of the applicable Extension Option pursuant to Section 2.7,
the consecutive twelve (12) month period from December 9, 2008, to and
including December 9, 2009.

“Threshold Amount” shall have the meaning set
forth in Section 5.1.21.

“Timeshare Proceeds Sweep Period” shall have
the meaning set forth in Section 7.6.1.

“Timeshare Project” shall mean, individually or
collectively as the context indicates, (i) any Transfer of all or any portion
of the Timeshare Project Land to any Person that is not an Affiliate of
Borrower, (ii) any construction or development of any Timeshare Project
Improvements by Borrower, its Affiliates or any other Person on all or any
portion of the Timeshare Project Land, (iii) any marketing, sale and/or leasing
of any condominium or timeshare residential or other units at the Timeshare
Project by Borrower, its Affiliates or any other Person, (iv) the operation,
maintenance and management of all or any portion of the Timeshare Project by
Borrower, its Affiliates or any other Person, (v) any other transaction with
respect to all or any portion of the Timeshare Project by Borrower, its
Affiliates or any other Person, and (vi) all activities in furtherance thereof
or otherwise contemplated by the Timeshare Project Documents.

“Timeshare Project Contract” shall mean that
certain Timeshare Purchase Agreement, dated as of December 10, 2004, between
Fee Owner (as assignee from MezzCo, in its capacity as assignee of OpBiz), as
seller, and Timeshare Project Developer, as buyer and developer, pursuant to
which Fee Owner shall transfer the Timeshare Project Land to Timeshare Project
Developer and Timeshare Project Developer shall cause the Timeshare Project to
be completed in accordance with the terms thereof, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in
accordance with the terms hereof.

“Timeshare Project Developer” shall mean
Westgate Resorts, Ltd, a Florida limited partnership, in its capacity as a
potential owner and developer of the Timeshare Project Land and the Timeshare
Project pursuant to the existing Timeshare Project Documents in effect on the
date hereof, together with its successors and permitted assigns in such
capacity.

“Timeshare Project Documents” shall mean,
individually or collectively as the context indicates, (i) the Timeshare
Project Plan to be submitted to Lender pursuant to the terms hereof, and (ii)
any material agreement, instrument or other document relating to any Timeshare
Project or any part thereof (A) to which Borrower, TSP Owner or any Affiliate
thereof is a party or 

 55
 

beneficiary or is otherwise directly or indirectly
bound, (B) delivered to or otherwise in the possession of Borrower, TSP Owner
or any Affiliate thereof, or (C) with respect to which Borrower, TSP Owner or
any Affiliate thereof has the right to review or otherwise approve, in each
case as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with the terms hereof.

“Timeshare Project Improvements” shall mean,
collectively, any structures and other improvements to be constructed on the
Timeshare Project Land, as described in any Timeshare Project Plan delivered to
Lender pursuant to the terms hereof.

“Timeshare Project Land” shall mean the land
and all appurtenant rights thereto as described on Schedule II-F
attached hereto.

“Timeshare Project Property” shall mean,
collectively, the Timeshare Project Land, any Improvements thereon and all
personal property owned or leased by TSP Owner and encumbered by the Security
Instrument executed by TSP Owner, together with all rights pertaining to such
property and Improvements, as more particularly described in the granting
clause of the Security Instrument executed by TSP Owner and referred to therein
as the “Property”

“Timeshare Project Plan” shall mean a general
description of the Timeshare Project prepared by (or on behalf of) Borrower and
setting forth the a general description of the proposed Timeshare Project, the
scope of any intended work and other material characteristics of the Timeshare
Project, as delivered to Lender for informational purposes and otherwise in
accordance with the requirements hereof, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance
with the terms hereof.

“Timeshare Project Proceeds” shall mean,
collectively, the following: (a) the “Purchase Price”, any “Timeshare Advances”
and any “Marketing Fees” (as each is defined in the Timeshare Project Contract)
received by, paid to, paid for the account of, or payable to Borrower or any of
its Affiliates or to which Borrower or any of its Affiliates are otherwise
entitled pursuant to the terms of any of the Timeshare Project Documents as in
effect on the date hereof, and (b) any other fees, payments, amounts, proceeds,
reimbursements, distributions, compensation, cash or other consideration
directly or indirectly relating to the Timeshare Project and/or the
transactions contemplated by the Timeshare Project Documents received by, paid
to, paid for the account of, or payable to Borrower or any of its Affiliates or
to which Borrower or any of its Affiliates are otherwise entitled pursuant to the
terms of any of the Timeshare Project Documents; provided, however, that
Timeshare Project Proceeds shall not include reasonable amounts payable to any
PH Entity, Starwood Sponsor and/or Sheraton Manager with respect to the
provision of any goods, services and/or intellectual property rights in
connection with the Timeshare Project so long as the same are the result of arm’s-length
negotiation and are on terms that are fair and commercially reasonable in all
material respects and are no less favorable to such Person, or more
disadvantageous to Borrower and/or TSP Owner than would be obtained in a
comparable transaction with a third party.

“Timeshare Project Proceeds Account” shall have
the meaning set forth in Section 7.6.1.

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“Timeshare Project Property” shall mean,
collectively, the Timeshare Project Land, the Timeshare Project Improvements to
be constructed thereon, any and all rents, leases, easements, rights and
property of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible, in each case comprising a part of, or otherwise
appurtenant to, the foregoing.

“Timeshare Project Sale” shall have the meaning
set forth in Section 5.2.11.

“Title Company” shall mean, collectively, each
title insurance company providing insurance or reinsurance under a direct
access agreement with respect to the Title Insurance Policy delivered to Lender
on the date hereof.

“Title Continuation” shall mean an endorsement
to the Title Insurance Policy indicating that, since the last preceding Advance,
there has been no adverse change in the state of title to the Property (except
as permitted under this Agreement) and no Liens (except for Permitted
Encumbrances) or survey exceptions not previously approved by Lender as
provided herein, which notice or endorsements shall contain no exception for
inchoate mechanic’s liens and shall have the effect of continuing the Title
Insurance Policy to the date of such Advance and increasing the coverage of the
Title Insurance Policy by an amount equal to the Advance then being made if the
Title Insurance Policy does not by its terms provide for such an increase.

“Title Insurance Policy” shall mean an ALTA
mortgagee title insurance policy issued by Title Company with respect to the
Property and insuring the lien of the Security Instrument, in form and
substance (including, without limitation, all endorsements thereto and all
coinsurance and reinsurance arrangements) reasonably acceptable to Lender.

“TPA Component” shall mean that portion of the
Property devoted to the operation of a theater for the performing arts and
related facilities and leased by Fee Owner to TPA Operator pursuant to the TPA
Component Lease, all of the foregoing being located on the TPA Component
Premises and more particularly described and set forth in the TPA Component
Lease.

“TPA Component Lease” shall mean that certain
Lease Agreement, dated as of April 27, 2006, between OpBiz, as lessor, and TPA
Operator, as lessee, pursuant to which OpBiz leases the TPA Component to TPA
Operator upon and subject to the terms set forth therein, as the same may be
amended, supplemented, replaced or otherwise modified from time to time in
accordance with the provisions hereof.

“TPA Component Premises” shall mean the land
and all appurtenant rights thereto as described on Schedule II-D
attached hereto.

“TPA Operator” shall mean (i) on the date
hereof, BZ Clarity Theatrical - LV, LLC, a Delaware limited liability company,
in its capacity as the lessee of the TPA Component pursuant to the TPA
Component Lease, together with its successors assigns in such capacity
thereunder or (ii) any replacement operator of the TPA Component that is a
Qualified Manager & otherwise reasonably approved by Lender.

 

 57

“Trade Contract”
shall mean, with respect to any Project, any agreement, contract or purchase
order (excluding any Architect Agreement, any Development Agreement, any
Engineer Agreement, any General Contractor Agreement, any Construction
Management Agreement and any other agreements pertaining solely to professional
services from other design professionals) directly related to such Project and
entered into by (or on behalf of) Borrower or any Affiliate thereof with any
Trade Contractor, including (without limitation) any such agreement, contract
or purchase order entered into by any Construction Manager or General
Contractor, pursuant to which such Trade Contractor agrees to provide labor,
materials, equipment and/or services in connection with the such Project.

“Trade Contractor”
shall mean, with respect to any Project, any Person that is a contractor,
sub-contractor, supplier or provider of labor, materials, equipment and/or
services, as the case may be, under a Trade Contract in connection with such
Project, including (without limitation) any General Contractor.

“Trademarks” shall
mean, collectively, all 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
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.

“Transfer” shall
have the meaning set forth in Section 5.2.10(b).

“TSP Owner” shall
mean TSP Owner LLC, a Delaware limited liability company, wholly and directly
owned by Fee Owner and the owner of the fee interest in the Timeshare Project
Land on the date hereof.

“U.S. Obligations” shall mean
non-redeemable securities evidencing an obligation to timely pay principal
and/or interest in a full and timely manner that are (a) direct obligations of
the United States of America for the payment of which its full faith and credit
is pledged, or (b) to the extent acceptable to the Rating Agencies, other “government
securities” within the meaning of Section 2(a)(16) of the Investment
Company Act of 1940, as amended.

“UCC” or “Uniform
Commercial Code” shall mean the Uniform Commercial Code as in effect in the
State of New York.

“Utility Component”
shall mean that portion of the Property on which the utility plant owned and
operated by Utility Provider is located and leased by Fee Owner to Utility
Provider pursuant to the Utility Component Lease, including (without
limitation) the adjoining optional improvement site, all of the foregoing being
located on the Utility Component Premises and more particularly described and
set forth in the Utility Component Lease.

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“Utility Component Premises” shall mean the
land and all appurtenant rights thereto as described on Schedule II-E
attached hereto.

“Utility Component Lease” shall mean that
certain Lease, dated as of December 3, 1997, by and between Fee Owner (as
assignee thereunder), as lessor, and Utility Provider, as lessee, pursuant to
which Fee Owner leases the Utility Component to Utility Provider upon and
subject to the terms set forth therein, as amended by the Settlement Agreement
and as further amended to date, and as the same may be amended, supplemented,
replaced or otherwise modified from time to time in accordance with the
provisions hereof.

“Utility Provider” shall mean Northwind
Aladdin, LLC, a Nevada limited liability company, in its capacity as the lessee
under the Utility Component Lease, together with its successors and assigns in
such capacity thereunder.

“Utility Service Agreement” means that certain
Energy Service Agreement, dated as of September 24, 1998, by and between Fee
Owner (as assignee thereunder) and Utility Provider, as amended by the
Settlement Agreement and as further amended to date, and as the same may be
amended, supplemented, replaced or otherwise modified from time to time in
accordance with the provisions hereof.

“Work” shall mean, with respect to any
Construction Contract, the construction, labor and materials to be provided by
the Trade Contractor thereunder.

Section 1.2.            Principles
of Construction.  All references to
sections and schedules are to sections and schedules in or to this Agreement
unless otherwise specified.  All uses of
the word “including” shall mean “including, without limitation” unless the
context shall indicate otherwise.  Unless
otherwise specified, the words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement.  Unless otherwise specified, all meanings
attributed to defined terms herein shall be equally applicable to both the
singular and plural forms of the terms so defined.

ARTICLE II.

GENERAL TERMS

Section 2.1.            Loan
Commitment; Disbursement to Borrower.

2.1.1.       Agreement
to Lend and Borrow.  Subject to and
upon the terms and conditions set forth herein, Lender hereby agrees to make
and Borrower hereby agrees to accept the Loan.

2.1.2.       Base
Loan.  Borrower hereby acknowledges
and agrees that, on the date hereof, Lender made the Base Loan Advance to
Borrower in the principal amount of $759,670,000, which Base Loan Advance
represents a full disbursement of all proceeds of the Base Loan in the maximum
principal amount of the Base Loan Allocation. 
The Base Loan shall be repaid with interest, costs and charges as more
particularly set forth in the Note, this Agreement, the Security Instrument and
the other Loan Documents.  Principal
amounts of the Base Loan which are repaid for any reason may not be
reborrowed.  The Base Loan is evidenced
by the Note and this Agreement and is secured by the Security Instrument and
the other Loan Documents.  Borrower 

 59
 

shall use the proceeds of the Base Loan to (a) repay and discharge any
existing loans relating to the Property, (b) pay all past due Basic Carrying
Costs, if any, with respect to the Property, (c) make deposits into the Reserve
Funds on the Closing Date in the amounts provided herein, (d) pay costs and
expenses incurred in connection with the closing of the Loan, as reasonably
approved by Lender, and (e) fund any working capital requirements of the
Property.

2.1.3.       Future
Funding.  Subject to the conditions
and upon the terms herein provided, Lender hereby agrees to lend to Borrower,
and Borrower hereby agrees to borrow from Lender, the Future Funding in a
maximum principal amount not to exceed the Future Funding Allocation or such
lesser amount as shall then be available pursuant to the terms of this
Agreement.  The Future Funding Amount
shall be repaid with interest, costs and charges as more particularly set forth
in the Note, this Agreement, the Security Instrument and the other Loan
Documents.  Principal amounts of the
Future Funding Amount which are repaid for any reason may not be
reborrowed.  The Future Funding is
evidenced by the Note and this Agreement and is secured by the Security
Instrument and the other Loan Documents. 
Borrower shall use the proceeds of any Future Funding to pay Project
Costs with respect to the Renovation Project or for any other purpose permitted
pursuant to Section 2.1.5.

2.1.4.       Maximum
Aggregate Loan Amount. 
Notwithstanding anything contained herein or in any other Loan Document
to the contrary, the aggregate principal amount of the Base Loan and any Future
Funding shall not under any circumstances exceed the Loan Amount as the same
may be reduced pursuant to the terms hereof. 
Other than the disbursement of the Base Loan Advance made on the date
hereof and any Future Funding Advances made on the Advance Dates pursuant to
this Agreement, Lender shall have no obligation to loan any additional funds in
respect of the Loan.  Any amount borrowed
and repaid hereunder in respect of the Loan may not be reborrowed.

2.1.5.       Future
Funding Advances and Future Funding Amount Adjustment.

(a)           Subject to the
provisions of this Section 2.1.5, Borrower shall have the right from
time to time to request a Future Funding Advance by delivery of an Advance
Request to Lender at least ten (10) Business Days prior to applicable Advance
Date, which Future Funding Advance shall be made by Lender solely for one or
more of the following purposes:

(i)            for deposit into the Renovation
Project Reserve Account in order to pay Project Costs with respect to the
Renovation Project, such Future Funding Advance (or applicable portion thereof)
to be held, disbursed and applied in accordance with the provisions of Section
7.5;

(ii)           for deposit into the Future Project
Reserve Account in order to pay Project Costs with respect to any Future
Project, such Future Funding Advance (or applicable portion thereof) to be
held, disbursed and applied in accordance with the provisions of Section 7.8;

(iii)          for deposit into the Interest Reserve
Account in order to satisfy the minimum interest reserve balance requirements
set forth in Section 7.4, such Future 

 60
 

Funding Advance (or applicable portion
thereof) to be held, disbursed and applied in accordance with the provisions of
Section 7.4;

(iv)          for deposit into the FF&E Reserve
Account in order to reimburse Borrower for its costs incurred, or to pay costs
to be incurred, in connection with the repair, replacement and/or upgrade of
FF&E, such Future Funding Advance (or applicable portion thereof) to be
held, disbursed and applied in accordance with the provisions of Section 7.3;
or

(v)           for deposit into the General Reserve
Account to be used for any of the purposes set forth in Section 7.9,
such Future Funding Advance (or applicable portion thereof) to be held,
disbursed and applied in accordance with the provisions of Section 7.9.

(b)           Notwithstanding
anything to the contrary contained herein, it is expressly acknowledged and
agreed that a portion of the Future Funding in the aggregate amount of
$25,000,000 may be requested by Borrower to be advanced pursuant to the terms
hereof solely for the following purposes (i) replenishing the Interest Reserve
Account in order to ensure that the Interest Reserve Funds on deposit therein
from time to time satisfy the minimum interest reserve balance requirements set
forth in Section 7.4, (ii) at any time, into the Interest Reserve
Account, or (iii) at any time after the Interest Release Trigger Date, into the
General Reserve Account.

(c)           Notwithstanding
anything contained herein or in any other Loan Document to the contrary, upon
the expiration of the First Loan Year, the obligation of Lender to lend any
remaining unadvanced portion of the Future Funding Amount shall automatically
terminate, and the maximum aggregate Loan Amount hereunder shall be
automatically reduced by such unadvanced amount; provided, however,
that, in the event that Borrower shall elect by irrevocable written notice
delivered to Lender not less than ten (10) Business Days prior to the
expiration of the First Loan Year, the following shall apply:

(i)            the then unadvanced portion of the
Future Funding Amount shall not be automatically terminated;

(ii)           upon the expiration of the First Loan
Year, Lender shall fund such unadvanced portion of the Future Funding Amount
into the General Reserve Account; and

(iii)          upon such deposit by Lender, the full
amount of such unadvanced portion of the Future Funding Amount deposited into
the General Reserve Account, shall be deemed to have been disbursed to
Borrower, shall bear interest at the Applicable Interest Rate in accordance
with this Agreement and shall be held and/or disbursed in accordance with Section
7.5.

(d)           Borrower shall pay
to Lender a fee (the “Ticking Fee”) equal to 25 basis points per annum
on the average daily amount by which the Future Funding Allocation (as it may
be reduced pursuant to this Section 2.1.5) exceeds the aggregate amount
of all Future Funding Advances during the period for which payment is made.  Such Ticking Fee shall be payable on 

 61
 

the basis of
the annual rate set forth above monthly in arrears on or before each Payment
Date with respect to each Interest Period hereunder commencing on the date
hereof and shall be computed on the basis of the actual number of days elapsed
in a year of three hundred sixty (360) days.

Section 2.2.            Interest
Rate.

2.2.1.       Interest
Generally.  Interest on the
outstanding principal balance of the Loan shall accrue from the Closing Date to
but excluding the Maturity Date at the Applicable Interest Rate.

2.2.2.       Interest
Calculation.  Interest on the
outstanding principal balance of the Loan shall be calculated by multiplying
(a) the actual number of days elapsed in the period for which the
calculation is being made by (b) a daily rate based on a three hundred
sixty (360) day year by (c) the outstanding principal balance.

2.2.3.       Determination
of Interest Rate.

(a)           The Applicable
Interest Rate with respect to the Loan shall be: (i) LIBOR plus the Spread
with respect to the applicable Interest Period for a LIBOR Loan or
(ii) the Prime Rate plus the Prime Rate Spread for a Prime Rate Loan if
the Loan is converted to a Prime Rate Loan pursuant to the provisions of Section 2.2.3(c)
or Section 2.2.3(f).

(b)           Subject to the terms
and conditions of this Section 2.2.3, the Loan shall be a LIBOR
Loan and Borrower shall pay interest on the outstanding principal amount of the
Loan at LIBOR plus the Spread for the applicable Interest Period.  Any change in the rate of interest hereunder
due to a change in the Applicable Interest Rate shall become effective as of
the opening of business on the first day on which such change in the Applicable
Interest Rate shall become effective. 
Each determination by Lender of the Applicable Interest Rate shall be
conclusive and binding for all purposes, absent manifest error.

(c)           In the event that
Lender shall have determined (which determination shall be conclusive and
binding upon Borrower absent manifest error) that by reason of circumstances
affecting the interbank eurodollar market generally, adequate and reasonable
means do not exist for ascertaining LIBOR, then Lender shall forthwith give
notice by telephone of such determination, confirmed in writing, to Borrower at
least one (1) day prior to the last day of the related Interest
Period.  If such notice is given, the
related outstanding LIBOR Loan shall be converted, on the last day of the then
current Interest Period, to a Prime Rate Loan.

(d)           If, pursuant to the
terms of this Agreement, any portion of the Loan has been converted to a Prime
Rate Loan and Lender shall determine (which determination shall be conclusive
and binding upon Borrower absent manifest error) that the event(s) or
circumstance(s) which resulted in such conversion shall no longer be
applicable, Lender shall give notice by telephone of such determination,
confirmed in writing, to Borrower at least one (1) day prior to the last day of
the related Interest Period.  If such
notice is given, the related outstanding Prime Rate Loan shall be converted to
a LIBOR Loan on the last day of the then current Interest Period.

(e)           All payments made by
Borrower hereunder shall be made free and clear of, and without reduction for
or on account of, income, stamp or other taxes, levies, imposts, duties, 

 62
 

charges, fees,
deductions, reserves or withholdings imposed, levied, collected, withheld or
assessed by any Governmental Authority which are first imposed, enacted or
become effective after the date hereof (such non-excluded taxes being referred
to collectively as “Applicable Taxes”), excluding income and franchise
taxes of (i) the United States of America or any political subdivision or
taxing authority thereof or therein (including Puerto Rico) or (ii) any foreign
state or any political subdivision or taxing authority thereof or therein, in
each case that are imposed on a net basis (other than taxes imposed by any
foreign jurisdiction by reason of any connection of Borrower with such
jurisdiction).  If any Applicable Taxes
are required to be withheld from any amounts payable to Lender hereunder, the
amounts so payable to Lender shall be increased to the extent necessary to
yield to Lender (after payment of all Applicable Taxes) interest or any such
other amounts payable hereunder at the rate or in the amounts specified
hereunder.  Whenever any Applicable Tax
is payable pursuant to applicable law by Borrower, as promptly as possible
thereafter, Borrower shall send to Lender an original official receipt, if
available, or certified copy thereof showing payment of such Applicable
Tax.  Borrower hereby indemnifies Lender
for any incremental taxes, interest or penalties that may become payable by
Lender which may result from (A) any failure by Borrower to pay any such Applicable
Tax when due to the appropriate taxing authority or (B) any failure by Borrower
to remit to Lender the required receipts or other required documentary
evidence; provided, that in the case of clause (B), Borrower shall have
no liability to Lender if it has in fact properly withheld and paid all such
Applicable Taxes and has provided to Lender suitable evidence to that effect
and has otherwise cooperated with Lender in all reasonable respects and, after
the exercise of commercially reasonable efforts, it is unable to obtain
official receipts of such payment from the applicable taxing authority.

(f)            If any requirement
of law hereafter enacted or any change therein or in the interpretation or
application thereof, shall hereafter make it unlawful for Lender to make or
maintain a LIBOR Loan as contemplated hereunder (i) the obligation of
Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a
LIBOR Loan shall be canceled forthwith and (ii) any outstanding LIBOR Loan
shall be converted automatically to a Prime Rate Loan on the next succeeding
Payment Date or within such earlier period as required by law.  Borrower hereby agrees promptly to pay
Lender, upon demand, any additional amounts necessary to compensate Lender for
any costs incurred by Lender in making any conversion in accordance with this
Agreement, including, without limitation, any interest or fees payable by
Lender to lenders of funds obtained by it in order to make or maintain the
LIBOR Loan hereunder.  Lender’s notice of
such costs, as certified to Borrower, shall be conclusive absent manifest
error.

(g)           In the event that
any change in any requirement of law or in the interpretation or application
thereof, or compliance by Lender with any request or directive (whether or not
having the force of law) hereafter issued from any central bank or other
Governmental Authority:

(i)            shall hereafter impose, modify or
hold applicable any reserve, special deposit, compulsory loan or similar
requirement against assets held by, or deposits or other liabilities in or for
the account of, advances or loans by, or other credit extended by, or any other
acquisition of funds by, any office of Lender which is not otherwise included
in the determination of LIBOR hereunder;

 63
 

(ii)           shall hereafter have the effect of
reducing the rate of return on Lender’s capital as a consequence of its
obligations hereunder to a level below that which Lender could have achieved
but for such adoption, change or compliance (taking into consideration Lender’s
policies with respect to capital adequacy) by any amount deemed by Lender to be
material; or

(iii)          shall hereafter impose on Lender any
other condition and the result of any of the foregoing is to increase the cost
to Lender of making, renewing or maintaining loans or extensions of credit or
to reduce any amount receivable hereunder;

then, in any such case,
Borrower shall promptly pay Lender, upon demand, any additional amounts
necessary to compensate Lender for such additional cost or reduced amount
receivable which Lender deems to be material as determined by Lender.  If Lender becomes entitled to claim any
additional amounts pursuant to this Section 2.2.3(g), Lender shall
provide Borrower with not less than ninety (90) days notice specifying in
reasonable detail the event by reason of which it has become so entitled and
the additional amount required to fully compensate Lender for such additional
cost or reduced amount.  A certificate as
to any additional costs or amounts payable pursuant to the foregoing sentence
submitted by Lender to Borrower shall be conclusive in the absence of manifest
error.  This provision shall survive
payment of the Note and the satisfaction of all other obligations of Borrower
under this Agreement and the Loan Documents for a period of ninety (90) days.

(h)           Borrower agrees to
indemnify Lender and to hold Lender harmless from any loss or expense which
Lender sustains or incurs as a consequence of (i) any default by Borrower
in payment of the principal of or interest on a LIBOR Loan, including, without
limitation, any such loss or expense arising from interest or fees payable by
Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan
hereunder, (ii) any prepayment (whether voluntary or mandatory) of the
LIBOR Loan on a day that (A) is not the Payment Date immediately following
the last day of an Interest Period with respect thereto or (B) is the
Payment Date immediately following the last day of an Interest Period with
respect thereto if Borrower did not give the prior notice of such prepayment
required pursuant to the terms of this Agreement, including, without
limitation, such loss or expense arising from interest or fees payable by
Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan
hereunder and (iii) the conversion (for any reason whatsoever, whether
voluntary or involuntary) of the Applicable Interest Rate from LIBOR plus the
Spread to the Prime Rate plus the Prime Rate Spread with respect to any portion
of the outstanding principal amount of the Loan then bearing interest at LIBOR
plus the Spread on a date other than the Payment Date immediately following the
last day of an Interest Period, including, without limitation, such loss or
expenses arising from interest or fees payable by Lender to lenders of funds
obtained by it in order to maintain a LIBOR Loan hereunder; provided,
that Borrower shall not indemnify Lender from any loss or expense arising from
Lender’s willful misconduct or gross negligence or for any consequential
damages.  This provision shall survive
payment of the Note in full and the satisfaction of all other obligations of
Borrower under this Agreement and the other Loan Documents.

(i)            Lender shall not be
entitled to claim compensation pursuant to this Section 2.2.3 for
any Applicable Taxes, increased cost or reduction in amounts received or
receivable hereunder, or any reduced rate of return, which was incurred or
which accrued more than 

 64
 

ninety (90)
days before the date Lender notified Borrower of the change in law or other
circumstance on which such claim of compensation is based and delivered to
Borrower a written statement setting forth in reasonable detail the basis for
calculating the additional amounts owed to Lender under this Section 2.2.3,
which statement shall be conclusive and binding upon all parties hereto absent
manifest error.

(j)            For purposes of
this Section 2.2.3, the term “Lender” shall be deemed to include Lender’s
present and future participants in the Loan to the extent of Applicable Taxes
imposed by reason of such participant’s interest in the Loan and each such
participant’s increased costs or reduction in amount received or receivable
hereunder or any reduced rate of return, in each case payable by Borrower under
this Section 2.2.3.

2.2.4.       Additional
Costs.  Lender will use reasonable
efforts (consistent with legal and regulatory restrictions) to maintain the
availability of the LIBOR Loan and to avoid or reduce any increased or
additional costs payable by Borrower under Section 2.2.3,
including, if requested by Borrower, a transfer or assignment of the Loan to a
branch, office or Affiliate of Lender in another jurisdiction, or a
redesignation of its lending office with respect to the Loan, in order to
maintain the availability of the LIBOR Loan or to avoid or reduce such
increased or additional costs, provided that the transfer or assignment or
redesignation (a) would not result in any additional costs, expenses or
risk to Lender that are not reimbursed by Borrower and (b) would not be
disadvantageous in any other respect to Lender as determined by Lender in its
sole discretion.

2.2.5.       Default
Rate.  In the event that, and for so
long as, any Event of Default shall have occurred and be continuing, the
outstanding principal balance of the Loan and, to the extent permitted by law,
all accrued and unpaid interest in respect of the Loan and any other amounts
due pursuant to the Loan Documents, shall accrue interest at the Default Rate,
calculated from the date such payment was due without regard to any grace or
cure periods contained herein.

2.2.6.       Usury
Savings.  This Agreement, the Note
and the other Loan Documents are subject to the express condition that at no
time shall Borrower be obligated or required to pay interest on the principal
balance of the Loan at a rate which could subject Lender to either civil or
criminal liability as a result of being in excess of the Maximum Legal
Rate.  If, by the terms of this Agreement
or the other Loan Documents, Borrower is at any time required or obligated to
pay interest on the principal balance due hereunder at a rate in excess of the
Maximum Legal Rate, the Applicable Interest Rate or the Default Rate, as the
case may be, shall be deemed to be immediately reduced to the Maximum Legal
Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed
to have been payments in reduction of principal and not on account of the
interest due hereunder.  All sums paid or
agreed to be paid to Lender for the use, forbearance, or detention of the sums
due under the Loan, shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full stated term of
the Loan until payment in full so that the rate or amount of interest on
account of the Loan does not exceed the Maximum Legal Rate of interest from
time to time in effect and applicable to the Loan for so long as the Loan is
outstanding.

2.2.7.       Interest
Rate Cap Agreement.

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(a)           Prior to or
contemporaneously with the Closing Date, Borrower shall enter into an Interest
Rate Cap Agreement with a LIBOR strike price equal to the Strike Price.  The Interest Rate Cap Agreement
(i) shall be in a form and substance reasonably acceptable to Lender,
(ii) shall be with an Acceptable Counterparty, (iii) shall direct
such Acceptable Counterparty to deposit directly into the Collection Account
any amounts due Borrower under such Interest Rate Cap Agreement so long as any
portion of the Debt exists, (iv) shall be for a period equal to the then
term of the Loan and (v) shall have an initial notional amount equal to the
then principal balance of the Loan. 
Borrower shall collaterally assign to Lender, pursuant to the Collateral
Assignment of Interest Rate Cap Agreement, all of its right, title and interest
to receive any and all payments under the Interest Rate Cap Agreement, and
shall deliver to Lender an executed counterpart of such Interest Rate Cap
Agreement (which shall, by its terms, authorize the assignment to Lender and
require that payments be deposited directly into the Collection Account).

(b)           Borrower shall
comply with all of its obligations under the terms and provisions of the
Interest Rate Cap Agreement.  All amounts
paid by the Counterparty under the Interest Rate Cap Agreement to Borrower or
Lender shall be deposited immediately into the Collection Account or if the
Collection Account is not then required to be in effect, into such account as
specified by Lender.  Borrower shall take
all actions reasonably requested by Lender to enforce Lender’s rights under the
Interest Rate Cap Agreement in the event of a default by the Counterparty and
shall not waive, amend or otherwise modify any of its rights thereunder.

(c)           In the event of any
downgrade, withdrawal or qualification of the rating of the Counterparty by
S&P or Moody’s, Borrower shall replace the Interest Rate Cap Agreement with
a Replacement Interest Rate Cap Agreement not later than ten (10) Business Days
following receipt of notice from Lender of such downgrade, withdrawal or
qualification.

(d)           In the event that
Borrower fails to purchase and deliver to Lender the Interest Rate Cap
Agreement or fails to maintain the Interest Rate Cap Agreement in accordance
with the terms and provisions of this Agreement, Lender may purchase the
Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such
Interest Rate Cap Agreement shall be paid by Borrower to Lender with interest
thereon at the Default Rate from the date such cost was incurred by Lender
until such cost is reimbursed by Borrower to Lender.

(e)           In connection with
the Interest Rate Cap Agreement, Borrower shall obtain and deliver to Lender an
opinion from counsel (which counsel may be in-house counsel for the
Counterparty) for the Counterparty (upon which Lender and its successors and
assigns may rely) which shall provide, in relevant part, that:

(i)            the Counterparty is duly organized,
validly existing, and in good standing under the laws of its jurisdiction of
incorporation and has the organizational power and authority to execute and
deliver, and to perform its obligations under, the Interest Rate Cap Agreement;

(ii)           the execution and delivery of the
Interest Rate Cap Agreement by the Counterparty, and any other agreement which
the Counterparty has executed and delivered pursuant thereto, and the
performance of its obligations thereunder have been 

 66
 

and remain duly authorized by all necessary
action and do not contravene any provision of its certificate of incorporation
or by-laws (or equivalent organizational documents) or any law,
regulation or contractual restriction binding on or affecting it or its property;

(iii)          all consents, authorizations and
approvals required for the execution and delivery by the Counterparty of the
Interest Rate Cap Agreement, and any other agreement which the Counterparty has
executed and delivered pursuant thereto, and the performance of its obligations
thereunder have been obtained and remain in full force and effect, all
conditions thereof have been duly complied with, and no other action by, and no
notice to or filing with any governmental authority or regulatory body is required
for such execution, delivery or performance; and

(iv)          the Interest Rate Cap Agreement, and
any other agreement which the Counterparty has executed and delivered pursuant
thereto, has been duly executed and delivered by the Counterparty and constitutes
the legal, valid and binding obligation of the Counterparty, enforceable
against the Counterparty in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally,
and subject, as to enforceability, to general principles of equity (regardless
of whether enforcement is sought in a proceeding in equity or at law).

Section 2.3.            Loan Payment.

2.3.1.       Payments
Generally.  Borrower shall pay to
Lender (a) on the Closing Date, an amount equal to interest only on the
outstanding principal balance of the Loan from the Closing Date up to (but not
including) the first Payment Date, and (b) on each Payment Date thereafter up
to and including the Maturity Date, Borrower shall make a payment to Lender of interest
accruing on the outstanding principal balance of the Loan for the related
Interest Period.  For purposes of making
payments hereunder, but not for purposes of calculating Interest Periods, if
the day on which such payment is due is not a Business Day, then amounts due on
such date shall be due on the immediately preceding Business Day and with
respect to payments of principal due on the Maturity Date, interest shall be
payable at the Applicable Interest Rate or the Default Rate, as the case may be,
through and including the day immediately preceding such Maturity Date.  All amounts due pursuant to this Agreement
and the other Loan Documents shall be payable without setoff, counterclaim,
defense or any other deduction whatsoever.

2.3.2.       Payment
on Maturity Date.  Borrower shall pay
to Lender on the Maturity Date the outstanding principal balance of the Loan,
all accrued and unpaid interest and all other amounts due hereunder and under
the Note, the Security Instrument and the other Loan Documents.

2.3.3.       Late
Payment Charge.  If any scheduled
payment of principal, interest or any other sums due under the Loan Documents
(other than the principal balance due at maturity) is not paid by Borrower by
the date on which it is due, Borrower shall pay to Lender upon demand an amount
equal to the lesser of five percent (5%) of such unpaid sum or the maximum
amount permitted by applicable law in order to defray the expense incurred by
Lender in handling and processing such delinquent payment and to compensate Lender
for the loss of the use of such 

 67
 

delinquent payment.  Any such
amount shall be secured by the Security Instrument and the other Loan Documents
to the extent permitted by applicable law.

2.3.4.       Method
and Place of Payment.  Except as
otherwise specifically provided herein, all payments and prepayments under this
Agreement and the Note shall be made to Lender not later than 2:00 P.M., New
York City time, on the date when due and shall be made in lawful money of the
United States of America in immediately available funds at Lender’s office or
as otherwise directed by Lender, and any funds received by Lender after such
time shall, for all purposes hereof, be deemed to have been paid on the next
succeeding Business Day.

Section 2.4.            Prepayments.

2.4.1.       Voluntary
Prepayments.  Prior to the Lockout
Release Date, the outstanding principal amount of the Loan may not be
voluntarily prepaid by Borrower in whole or in part.  Subject to the provisions of this Section
2.4.1, on or after the Lockout Release Date, Borrower may, at its option
and upon twenty (20) days prior notice to Lender (which notice may be revoked
or modified by Borrower upon at least five (5) Business Days prior notice to
Lender so long as Borrower shall pay all reasonable costs and expenses incurred
by Lender in connection with any such revocation or modification), prepay the
Debt in whole or in part, on any day; provided that (i) if such prepayment
occurs prior to or on the Spread Maintenance Outside Date, such prepayment is
accompanied by payment of the then applicable Spread Maintenance, and (ii) if
for any reason (including, without limitation, a partial prepayment made in
accordance with the final sentence of this Section 2.4.1), Borrower
prepays the Loan on a date other than a Payment Date, Borrower shall pay
Lender, in addition to the Debt and any applicable Spread Maintenance, all
interest which would have accrued on the amount of the Loan through and
including the last day of the Interest Period related to the Payment Date next
occurring following the date of such prepayment.  Lender shall not be obligated to accept any
prepayment unless it is accompanied by the Spread Maintenance due in connection
therewith (if any).  Notwithstanding the
foregoing, Borrower may at any time during the term, prepay a portion of the
outstanding principal of the Loan in an aggregate amount not to exceed Fifty
Million Dollars ($50,000,000) without the requirement to pay any Spread
Maintenance; provided that, if such prepayment occurs on a date other than a
Payment Date, Borrower shall pay Lender all interest which would have accrued
on the amount of the Loan through and including the last day of the Interest
Period related to the Payment Date next occurring following the date of such
prepayment.

2.4.2.       Mandatory
Prepayments.

(a)           On the next
occurring Payment Date following the date on which Lender actually receives any
Net Proceeds, if Lender is not obligated to make such Net Proceeds available to
Borrower for Restoration, Borrower shall prepay, or authorize Lender to apply
Net Proceeds as a prepayment of, the outstanding principal balance of the Note
in an amount equal to one hundred percent (100%) of such Net Proceeds.  Other than during the existence of an Event
of Default, no Spread Maintenance or prepayment premium shall be due in
connection with any prepayment made pursuant to this Section 2.4.2.

(b)           Upon Final
Completion of the Renovation Project, Lender shall, at Borrower’s option, apply
any amounts then held in the Renovation Project Reserve Account to prepay the 

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Loan, together
with the payment of any Spread Maintenance required hereunder, or deposit such
amounts into the General Reserve Account.

(c)           If any prepayment
pursuant to this Section 2.4.2 occurs on a date other than a Payment
Date, Borrower shall in connection with such payment, pay to Lender all
interest which would have accrued on the Loan through and including the last
day of the Interest Period related the Payment Date next occurring following
the date of prepayment.

2.4.3.       Prepayments
After Default.  If following an Event
of Default payment of all or any part of the Debt is tendered by Borrower or
otherwise recovered by Lender (including through application of any Reserve
Funds), such tender or recovery shall be (a) made on the next occurring
Payment Date, and (b) deemed a voluntary prepayment by Borrower and Borrower
shall pay, in addition to the Debt, an amount equal to any then applicable
Spread Maintenance pursuant to Section 2.4.1.

2.4.4.       Prepayments
Prior to Determination Date. 
Notwithstanding anything contained herein to the contrary, in the event
that Borrower makes a prepayment of all or any portion of the Loan in
accordance with the provisions of this Agreement, if such prepayment occurs
during the time period in any month from and including the date after the
Payment Date through and including the next Determination Date, it may be
impossible for Borrower and Lender to calculate with certainty the interest
that would have accrued at the Applicable Interest Rate on the amount then
prepaid through the Payment Date next occurring.  Accordingly, in the event that any portion of
the Loan is prepaid during the time period in any month from and including the
date after the Payment Date through and including the applicable Determination
Date, the interest that would have accrued on such prepaid amount of the Loan
at the Applicable Interest Rate through the Payment Date next occurring shall
be calculated based on an interest rate (the “Assumed Note Rate”) equal
to the sum of (i) LIBOR calculated in accordance with the definition of “LIBOR”
herein, but assuming that the Determination Date used in such definition is the
date on which such prepayment is made, plus the Spread.  Thereafter, on the Determination Date
applicable to the Interest Period following the Interest Period in which such
prepayment occurs, Lender shall determine the Applicable Interest Rate.  If it is determined by Lender that the
Applicable Interest Rate for the Interest Period in which such prepayment
occurs is less than the Assumed Note Rate, Lender shall promptly refund to
Borrower, without interest, an amount equal to the difference between the
interest paid by Borrower on the prepaid amount for such Interest Period
calculated at the Assumed Note Rate and the amount of interest on the prepaid
amount for such Interest Period calculated at the actual Applicable Interest
Rate for the Loan.  Alternatively, in the
event that it is determined that the actual Applicable Interest Rate for
applicable Interest Period is greater than the Assumed Note Rate, Borrower
shall promptly pay to Lender, without additional interest or other late charges
or penalties (and in no event later than the next Payment Date) an amount equal
to the difference between the interest paid by Borrower on the prepaid amount
for the Interest Period in which such prepayment occurs calculated at the
Assumed Note Rate and the amount of interest on the prepaid amount for such
Interest Period calculated at the actual Applicable Interest Rate.

Section 2.5.            Release
of Property.  Except as set forth in
this Section 2.5, no repayment or prepayment of all or any portion
of the Note shall cause, give rise to a right to require, or otherwise result
in, the release of the Lien of the Security Instrument.  Lender shall, upon the 

 69
 

written request and at the expense of Borrower, upon payment in full of
all principal and interest due on the Loan and all other amounts due and
payable under the Loan Documents in accordance with the terms and provisions of
the Note and this Agreement, release the Lien of the Security Instrument.

Section 2.6.            Cash
Management.

2.6.1.       Establishment
of Collection Account.

(a)           Borrower has
established and shall maintain the Collection Accounts with Property Bank
throughout the term of the Loan.  In
connection with a Securitization, Lender shall have the right to cause the
Collection Accounts to be entitled with such other designation as Lender may
select to reflect an assignment or transfer of Lender’s rights and/or interests
with respect to the Collection Account. 
Except with respect to Borrower’s right, from time to time, to direct
the amount of certain funds in connection with (i) the maintenance of the
Gaming Liquidity Requirement and (ii) the payment of Pass-Through Amounts, each
in accordance with Section 2.6.1(g), the Collection Account shall be
under the sole dominion and control of Lender (which may be exercised through
Servicer).  Lender (and its agents,
including Servicer) shall have the sole right to make withdrawals from the
Collection Accounts in accordance with the terms and conditions of this
Agreement and the other Loan Documents, except as otherwise expressly provided
in this Agreement or the other Loan Documents. 
All costs and expenses for establishing and maintaining the Collection
Accounts shall be at Borrower’s sole cost and expense.

(b)           Borrower hereby
represents and warrants to Lender that attached hereto as Schedule V is
a true, correct and complete list of any and all Borrower Accounts maintained
by, or on behalf of Borrower or its Affiliates in any jurisdiction that include
funds arising out of, or are otherwise attributable to, the Property or relate
to the operation and management of the Property on the date hereof, identifying
the bank, account name and account number, together with a chart showing the
usual and customary flow of funds with respect to such Borrower Accounts in the
usual course of business.  The accounts
identified on Schedule V are the only Borrower Accounts existing on the
date hereof.  Borrower shall at all times
cause all Borrower Accounts to be subject to the Lien of the Loan Documents as
security for Borrower’s obligations under this Agreement and the other Loan
Documents.

(c)           Borrower and its
Affiliates shall execute and deliver such documents, instruments, certificates,
assignments and other writings, and do such other acts necessary or desirable,
to evidence, preserve and/or protect, maintain and perfect Lender’s security
interest in the Borrower Accounts. 
Borrower may not, without the prior consent of Lender (not to be
unreasonably withheld, conditioned or delayed) open any new accounts or in any
way alter the flow of funds and payment into and/or out of such Borrower
Accounts in any material respect from that shown on Schedule V,
including without limitation, changing the source, type or currency of any
payments currently deposited and maintained in any such account.  Notwithstanding the foregoing, Borrower or
its Affiliates may, without Lender’s consent but on prior written notice to
Lender, open and maintain one or more Borrower Accounts in which to deposit and
maintain Excess Cash Flow or Cash Expenses disbursed to Borrower from time to
time in accordance with this Agreement; provided that, in each case, such
Borrower Accounts are identified to Lender 

 70
 

and shall be
subject to a first priority perfected security interest in favor of Lender
pursuant to the Loan Documents.  From and
after the date hereof, Borrower shall use all commercially reasonable efforts
to continuously and diligently pursue any and all Governmental Approvals
required with respect to the foregoing and shall execute and deliver such
documents, instruments, certificates, assignments and other writings, and do
such other acts necessary or desirable, to evidence, preserve and/or protect,
maintain and perfect Lender’s security interest in the Borrower Accounts.

(d)           Borrower shall, or
shall cause Manager to, deliver irrevocable written instructions to each tenant
under any Lease at the Property, in form and substance reasonably acceptable to
Lender, directing each such tenant to deliver all Rents payable thereunder
directly to the Collection Account. 
Borrower shall, or shall cause Manager to, deliver irrevocable written
instructions to each of the credit card companies or credit card clearing banks
delivering receipts to any of the Borrower Accounts, in form and substance
reasonably acceptable to Lender, directing each such credit card company or
credit card clearing bank to deliver all receipts payable with respect to the
Property directly to the Collection Accounts. 
Borrower shall, or shall cause TSP Owner to, deliver irrevocable written
instructions to Timeshare Project Developer, in form and substance reasonably
acceptable to Lender, directing Timeshare Project Developer to deliver all
Timeshare Project Proceeds received by, paid or payable to or for the account
of Borrower or any of its Affiliates directly to the Timeshare Project Proceeds
Account.

(e)           Borrower and its
Affiliates shall deposit all Revenue received by, paid or payable to or paid
for the benefit of Borrower into the Collection Accounts within one (1)
Business Day after receipt.  Borrower
shall diligently and continuously use all commercially reasonable efforts to
cause any other Person to deposit all Revenue received by, paid or payable to
or paid for the benefit of Borrower into the Collection Accounts within one (1)
Business Day after receipt.

(f)            Notwithstanding
the foregoing provisions of this Section 2.6.1, but subject to the terms
of the Collection Account Agreement, Borrower shall be entitled to retain the
Gaming Operating Reserve in accordance with applicable Gaming Laws, which shall
be maintained on deposit in the Casino Accounts.

(g)           Property Bank shall
transfer in immediately available funds by federal wire transfer all amounts on
deposit in the Collection Accounts once every Business Day to the Cash
Management Account; provided, however, that Borrower shall have the
right from time to time by delivery of written notice simultaneously to
Property Bank and Lender to require Property Bank to transfer all or any
portion of such available funds on deposit in any Collection Account to (i) any
Casino Account solely in an amount equal to any incremental increase in the
amount of the Gaming Liquidity Requirement that is required to be maintained by
OpBiz under applicable gaming Laws in the Borrower Accounts as a result of any
increase in gaming business at the Casino Component or due to any change in the
applicable requirements under Gaming Laws generally or to (ii) one of the
Borrower Accounts solely from credit card receipts in amounts equal to any
Pass-Through Amounts.  Notwithstanding
the foregoing, so long as no Event of Default shall have occurred and then be
continuing, from and after the Stabilization Date, Lender shall direct Property
Bank to transfer in immediately available funds by federal wire transfer all
amounts on deposit in the Collection Account once every Business Day to the
Borrower Disbursement Account.  Borrower
shall deliver irrevocable written instructions to Property 

 71
 

Bank, in form
and substance reasonably acceptable to Lender, directing Property Bank to
comply with all instructions originated by Lender (and/or its agents, including
Servicer) directing the disposition of funds in the Collection Accounts without
further consent by Borrower.

2.6.2.       Establishment
of Cash Management Account.

(a)           Borrower has
established and shall maintain the Cash Management Account with Cash Management
Bank throughout the term of the Loan. In connection with any Securitization,
Lender shall have the right to cause the Cash Management Account to be entitled
with such other designation as Lender may select to reflect an assignment or
transfer of Lender’s rights and/or interests with respect to the Cash
Management Account.  The Cash Management
Account shall be under the sole dominion and control of Lender (which may be
exercised through Servicer).  Lender (and
its agents, including Servicer) shall have the sole right to make withdrawals
from the Cash Management Account in accordance with the terms and conditions of
this Agreement and the other Loan Documents, except as otherwise expressly
provided in this Agreement or the other Loan Documents.  All costs and expenses for establishing and
maintaining the Cash Management Account (and any sub account thereof) shall be
at Borrower’s sole cost and expense.

(b)           Lender shall
establish the following sub accounts (which may be ledger entry sub accounts)
of the Cash Management Account, each in the name of Lender, into which funds on
deposit in, or other financial assets credited to, the Cash Management Account
shall be deposited, credited or otherwise allocated in accordance with the
provisions of Section 2.6.3:

(i)            the Tax and Insurance Escrow Account
into which Tax and Insurance Escrow Funds shall be deposited pursuant to Section
7.2;

(ii)           the FF&E Reserve Account into
which FF&E Reserve Funds shall be deposited pursuant to Section 7.3;

(iii)          the Interest Reserve Account into
which Interest Reserve Funds shall be deposited pursuant to Section 7.4;

(iv)          the Renovation Project Reserve Account
into which certain Renovation Project Reserve Funds shall be deposited pursuant
to Section 7.5;

(v)           the Timeshare Project Proceeds
Account into which Timeshare Project Proceeds shall be deposited under certain
circumstances pursuant to Section 7.6;

(vi)          the Required Repair and Remediation
Account into which Required Repair and Remediation Reserve Funds shall be
deposited pursuant to Section 7.1;

(vii)         the Excess Cash Reserve Account into
which Excess Cash Flow shall be deposited under certain circumstances pursuant
to Section 7.7;

(viii)        the Future Project Reserve Account into
which certain Future Project Reserve Funds shall be deposited pursuant to Section
7.8;

 

 72

(ix)           the General Reserve Account into
which certain General Reserve Funds shall be deposited pursuant to Section
7.9; and

(x)            the Accrual Adjustment Reserve
Account into which the Accrual Adjustment Funds shall be deposited pursuant to Section7.10.

2.6.3.       Accounts
Generally.

(a)           Borrower shall be
responsible for payment of any federal, state or local income or other tax
applicable to the interest or income earned on the Collection Accounts, the
Cash Management Account and any sub-account thereof.  The Cash Management Account and any sub-account
thereof shall be assigned the federal tax identification numbers of Borrower
which are 83-0467624 with respect to Fee Owner and 84-1622338 with respect to
OpBiz.  Borrower shall provide Lender, at
any time upon request of Lender, with a Form W-8 or W-9 to evidence that
Borrower is not subject to any back-up withholding under the Code.

(b)           Without limiting the provisions of the Security
Instrument, to further secure the full and timely payment and performance of
the Debt, Borrower hereby expressly grants to Lender a continuing, first
priority security interest in, and pledges and collaterally assigns to Lender
all of Borrower’s rights, title and interest in, to and under, all of the
following, whether now owned or existing or hereafter acquired, created or
arising, whether tangible or intangible, and regardless of where located: (i)
in the Collection Accounts, the Cash
Management Account, all sub-accounts thereof and all security entitlements,
investment property and other financial assets at any time and from time to
time deposited or contained therein or credited thereto (as each such term is
defined in Article 8 and Article 9 of the UCC); (ii) any and all monies,
checks, deposits, investment property or other financial assets now or
hereafter credited to the Collection Accounts or the Cash Management Account (including any sub-account thereof) or
held by or on behalf of Lender; and (iii) all
proceeds (as defined in the UCC) of all or any of the foregoing.  Borrower will at its sole
cost and expense take all actions necessary to maintain in favor of Lender a
first priority perfected security interest in the Collection Accounts
and the Cash Management Account, including,
without limitation, entering into the Account Control Agreement and filing (and
Borrower hereby irrevocably authorizes Lender to file) UCC-1 financing
statements and continuations thereof. 
Borrower will not in any way alter or modify the Collection
Accounts or the Cash Management Account.  Borrower shall not, without obtaining the
prior consent of Lender, further pledge, assign or grant any security interest
in the Collection Accounts, the Cash Management Account, any sub-account
thereof or any monies deposited therein or other financial assets credited thereto
or permit any Lien to attach thereto, or any levy to be made thereon, or any
UCC-1 financing statements, except those naming Lender as the secured party, to
be filed with respect thereto.

(c)           Lender may exercise
in respect of the Collection Accounts, the Cash Management Account or any or
all of the sub-accounts thereof all rights and remedies available to
Lender hereunder or under the other Loan Documents or otherwise available at
law or in equity.  Without limiting the
generality of the foregoing, upon the occurrence of an Event of Default,
Borrower shall have no further right to request or otherwise require Lender to
disburse any Reserve Funds or have any further rights whatsoever therein, and
Lender may, at Lender’s option (i) continue to hold any or all of the Reserve
Funds, (ii) continue from time to time to apply all or

 73
 

any portion of
the Reserve Funds to any payment(s) to which such Reserve Funds could have been
applied prior to such Event of Default, to the extent and in such order and
manner as Lender in its sole discretion may determine, and/or (iii) apply any
sums then present in any or all of the Reserve Funds to the payment of the Debt
in any order in its sole discretion.  The
remedies provided in this Agreement, the Security Instrument and the other Loan
Documents are cumulative and not exclusive of any remedies provided at law or
in equity.

2.6.4.       Application
of Funds in the Cash Management Account.

(a)           Provided no Event of
Default shall have occurred and be continuing and subject to the terms and
provisions of Section 7.10, on each Payment Date (or, if such Payment
Date is not a Business Day, on the immediately preceding Business Day) all
funds on deposit in the Cash Management Account shall be applied by Lender to
the payment of the following items in the order indicated:

(i)            First, payments to the Tax and
Insurance Escrow Fund in accordance with the terms and conditions of Section 7.2;

(ii)           Second, payment of the monthly Debt
Service, applied first to the payment of interest computed at the Applicable
Interest Rate;

(iii)          Third, payment to Lender of any other
amounts then due and payable under the Loan Documents;

(iv)          Fourth, payments to the Borrower
Disbursement Account for monthly Cash Expenses to be paid by Borrower in
accordance with the related Approved Annual Budget pursuant to a written
request for payment submitted by Borrower to Lender specifying the individual
Cash Expenses in a form reasonably acceptable to Lender;

(v)           Fifth, payments to the FF&E
Reserve Account in accordance with the terms and conditions of Section 7.3;

(vi)          Sixth, payments to the Borrower
Disbursement Account for any Extraordinary Expenses reasonably approved by
Lender, if any, to be paid by Borrower, pursuant to a written request for
payment submitted by Borrower to Lender specifying the individual Extraordinary
Expenses in a form reasonably acceptable to Lender;

(vii)         Seventh, during any Excess Cash Flow
Sweep Period, provided no Event of Default shall have occurred and then be
continuing, any excess amounts remaining in the Cash Management Account (“Excess
Cash Flow”) shall be deposited into the Excess Cash Reserve Account to be
held and/or applied in accordance with Section 7.7 until such time as
the aggregate amount of Excess Cash Flow that has been deposited into the
Excess Cash Reserve Account during such Excess Cash Flow Sweep Period shall
equal $3,000,000 and, thereafter, any remaining Excess Cash Flow shall be held
and disbursed as Excess Cash Flow in accordance with the remaining provisions
of this Section 2.6.4(a);

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(viii)        Eighth, during any Extension Term Sweep
Period, provided no Event of Default shall have occurred and then be
continuing, any Excess Cash Flow shall be deposited into the Excess Cash
Reserve Account to be held and/or applied in accordance with Section 7.7;
and

(ix)           Lastly, provided no Event of Default
shall have occurred and then be continuing, any Excess Cash Flow shall be
deposited into the Borrower Disbursement Account from which Borrower shall be
entitled to make distributions so long as no Event of Default shall then exist.

(b)           Notwithstanding the
foregoing, Borrower shall remain obligated to cause sufficient amounts to be
deposited in the Cash Management Account on or before each Payment Date to make
the payments set forth in clauses (i), (ii), (iii), (iv), (v) and (vi) of Section
2.6.4(a) above, or to otherwise timely pay such amounts on each Payment
Date.  The insufficiency of funds on
deposit in the Cash Management Account shall not relieve Borrower from the
obligation to make any payments, as and when due pursuant to this Agreement and
the other Loan Documents, and such obligations shall be separate and
independent, and not conditioned on any event or circumstance whatsoever.

(c)           All funds on deposit
in the Cash Management Account following the occurrence and during the
continuance of an Event of Default may be applied by Lender to the Debt and/or
the Reserve Funds in such order and priority as Lender shall determine.

2.6.5.       Payments
Received in the Cash Management Account. 
Notwithstanding anything to the contrary contained in this Agreement and
the other Loan Documents, and provided no Event of Default has occurred and is
continuing, Borrower’s obligations with respect to the monthly payment of Debt
Service and amounts due for the Tax and Insurance Escrow Fund, FF&E Reserve
Fund and any other payment reserves established pursuant to this Agreement or
any other Loan Document shall be deemed satisfied to the extent sufficient
amounts are deposited in the Cash Management Account to satisfy such
obligations on the dates each such payment is required, regardless of whether
any of such amounts are so applied by Lender.

Section 2.7.            Extension
of the Initial Maturity Date. 
Borrower shall have the option to extend the term of the Loan (each an “Extension
Option”) beyond the Initial Maturity Date for three (3) successive terms
(each, an “Extension Term”) of one (1) year each (each then applicable
Maturity Date, as extended following the exercise of each such option is
hereinafter the “Extended Maturity Date”) upon satisfaction of the
following terms and conditions:

(a)           no Default or Event of Default shall
have occurred and be continuing at the time the applicable Extension Option is
exercised and on the date that the applicable Extension Term is commenced;

(b)           Borrower shall notify Lender of its
irrevocable election to extend the Maturity Date as aforesaid not earlier than
six (6) months, and no later than forty-five (45) days, prior to (i) with
respect to the first Extension Option, the Initial Maturity Date and (ii) with
respect to each successive Extension Option, the then applicable Extended
Maturity Date;

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(c)           Borrower shall obtain and deliver to
Lender not later than ten (10) Business Days prior to the first day of each
Extension Option, one or more Replacement Interest Rate Cap Agreements from an
Acceptable Counterparty which Replacement Interest Rate Cap Agreement shall be
effective commencing on the first date of such Extension Option and shall have
a maturity date no earlier than the applicable Extended Maturity Date;

(d)           in connection with each Extension
Option, Borrower shall have delivered to Lender together with its notice
pursuant to Section 2.7(b) and as of the commencement of the applicable
Extension Option, an Officer’s Certificate in form acceptable to Lender
certifying that each of the representations and warranties of Borrower
contained in the Loan Documents is true, complete and correct in all material
respects as of the date of such Officer’s Certificate to the extent such representations
and warranties are not matters which by their nature can no longer be true and
correct as a result of the passage of time;

(e)           with respect to any exercise of the
second and/or third Extension Options, Borrower shall pay to Lender an
extension fee equal to 0.25% of the then outstanding balance of the Debt, such
payment to be made on or prior to the first day of the applicable Extension
Term;

(f)            Borrower shall provide evidence
reasonably satisfactory to Lender that there is sufficient capital available to
Borrower to pay any necessary Capital Expenditures with respect to the
Property;

(g)           Borrower shall deposit additional
funds into the Interest Reserve Account in an amount (if any) sufficient to
result in a Debt Service Coverage Ratio for the extension term of at least
1.10:1.00 with respect to the Property;

(h)           Lender shall have received such other
opinions, documents and information in connection with the foregoing, as may be
reasonably requested by Lender; and

(i)            Borrower shall have paid or reimbursed
Lender for all out-of-pocket costs and expenses actually incurred by Lender
(including, without limitation, reasonable fees and disbursements of outside
counsel) in connection with the foregoing.

ARTICLE III.

PROJECT FUNDING AND

CONSTRUCTION MATTERS

Section 3.1.            Project Funding Advances.

3.1.1.       Use of Advances.

(a)           Subject to the
provisions of this Section 3.1, Borrower shall use Renovation Project
Advances made by Lender pursuant to this Agreement only for the payment of
Project Costs with respect to the Project and, in the event that Borrower shall
determine to proceed with

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any Future
Project, Borrower shall use Future Project Advances made by Lender pursuant to
this Agreement only for the payment of Project Costs with respect to such
Future Project.

(b)           With respect to any
Project:

(i)            each Project Advance made to
Borrower shall be received, held and used by Borrower to pay for Hard Costs and
Soft Costs of the applicable Project, as the case may be, in each case in
accordance with the applicable Project Budget; and

(ii)           Borrower shall use the proceeds of
any Project Advances only to pay or reimburse itself for Project Costs actually
incurred in connection with the Project and which were specified on the Project
Advance Request for such Project Advance.

(c)           Notwithstanding
anything to the contrary contained herein, it is acknowledged and agreed that
it shall be a condition to any right of Borrower to receive any Future Project
Advances or to proceed with any portion of any Future Project, that Lender
shall have reasonably approved the Project Plan, the Project Budget, the Plans
and Specifications and all other material Project Documents relating to such
Future Project, together with such other reasonable and customary diligence
relating to such Future Project as Lender shall reasonably require.  In the event that Borrower shall determine to
proceed with any Future Project, Borrower shall not commence, and shall not
cause or permit any other Person to commence, any Work with respect to such
Future Project, unless the following conditions shall have been satisfied (or
waived by Lender in its sole discretion):

(i)            Lender shall have received and
approved, which approval shall not be unreasonably withheld, fully executed
original counterparts of the Project Plan, the Plans and Specifications, the
Project Budget, any Architect Agreement, any Developer Agreement, any
Construction Manager Agreement, any General Contractor Agreement, any Engineer
Agreement and any Major Trade Contract.

(ii)           Lender shall have received an
Anticipated Cost Report for such Future Project in the form required hereunder
which sets forth the anticipated costs to complete construction of such Future
Project after giving effect to costs incurred to date.

(iii)          Lender shall have received evidence
reasonably satisfactory to Lender that the Project Improvements to be
constructed as part of such Future Project are and shall be in compliance with
all Legal Requirements.

(iv)          Lender shall have received a copy of
all Construction Permits necessary for or relating to the construction of such
Future Project.

(v)           Lender shall have received evidence
reasonably satisfactory to Lender that Borrower has sufficient funds in
addition to any available proceeds of the Future Funding to complete such
Future Project.

(vi)          Borrower shall deliver a certificate
that contains substantially the same representations with respect to such
Future Project as are set forth in Section 3.2 hereof

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and confirms that each of such
representations are true, correct and complete on and as of the date delivered.

(vii)         In the event that such Project will
result in more than one hundred guest rooms being unavailable for use at any
one time, BH Guarantor and RE Guarantor shall have executed and delivered to
Lender a Completion Guaranty with respect to such Project, such Completion
Guaranty to be in substantially the same form as the Completion Guaranty
delivered to Lender on the date hereof and otherwise in form and substance
reasonably acceptable to Lender.

3.1.2.       General
Requirements Applicable to Construction Project Advances.

(a)           Subject to the other
provisions of this Agreement, any Project Advances shall be made in accordance
with Project Advance Requests submitted by Borrower and verified by
Construction Consultant in accordance with the provisions of this Section
3.1.  The proceeds of any Project
Advance shall be advanced by Lender from time to time on Advance Dates by
transfer of such funds to the Construction Disbursement Account or in such
other manner as Lender and Borrower may agree. 
Borrower shall not deposit any other funds into the Construction
Disbursement Account other than sums sufficient to pay the administrative costs
of such account.

(b)           Project Advances
shall be made, in the case of the Initial Project Advance, upon satisfaction of
the conditions precedent set forth in Section 3.1.7 and in the case of
any Project Advance made after such Initial Project Advance, upon satisfaction
of the conditions set forth in Section 3.1.8 and, for the Final Project
Advance only, Section 3.1.9, except to the extent that Lender may elect
to waive any such conditions precedent in its sole and absolute
discretion.  All conditions precedent to
the obligation of Lender to make Project Advances are imposed solely for the
benefit of Lender and no other party may require satisfaction of any such
condition precedent or be entitled to assume that Lender will refuse to make
either the Future Funding or any Project Advance in the absence of strict
compliance with such conditions precedent. 
Any or all requirements of this Agreement may be waived by Lender, in
whole or in part, at any time and any such waiver shall not be deemed a
modification of this Agreement.

3.1.3.       Amount
of Advances.

(a)           Subject to the terms
of this Section 3.1, so long as no Event of Default shall exist, Project
Advances shall be made with respect to any Project from time to time in
accordance with the Construction Schedule and the Disbursement Schedule as such
Project progresses, but no more frequently than twice in each calendar month.

(b)           Subject to the other
provisions of this Agreement, any Project Advance shall be made on the basis of
(i) the Line Items for Hard Costs and Soft Costs specified in the Project
Budget, and (ii) the documented cost of Work for the Project in place and
performed and services provided, and to the extent provided in Section
3.1.12, materials stored on or off the Property, in each case as such cost
is reasonably determined by Lender as provided in this Agreement; provided,
that Lender shall at no time be obligated to disburse any proceeds of the

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Future Funding
for work performed, materials furnished or services provided under Construction
Contracts that are not fully executed and delivered.

(c)           With respect to each
Project, (i) the Project Budget for such Project shall reflect, by category and
Line Item, the purposes and the amounts for which funds to be advanced by
Lender under this Agreement are to be used, and (ii) subject to the provisions
of Section 3.1.10 or as Lender may otherwise agree in its sole
discretion, Lender shall not be required to disburse for any Line Item more
than the amount specified for such Line Item in the Project Budget for such
Project.

(d)           The calculation of
any Project Advance shall account for Retainage as provided for in Section
3.6.  It is hereby acknowledged and
agreed that the Retainage is intended to provide a contingency fund protecting
Lender against the failure of Borrower or Guarantors to fulfill any obligations
under the Loan Documents and that Lender may charge amounts to pay for the
Project Costs against such Retainage in the event Lender is required or elects
to expend funds to cure any Event of Default.

3.1.4.       Advances
for Hard Costs.  With respect to each
Project, no Project Advance will be made for any Hard Costs unless the amount
of the Hard Costs thereof are set forth in the Project Budget as Line Items (or
portions thereof) to be funded from the Future Funding.  Project Advances may be made for advance
deposits for material to be included in the Project.  Project Advances for Hard Costs with respect
to the trade or any portion of construction covered by any of the Line Items
(or portions thereof) in the Project Budget to be funded from the Future
Funding shall not exceed:

(i)            the total Hard Costs as set forth as
a Line Item (or portion thereof) in the Project Budget to perform and complete
the trade or portion of construction covered by such Line Item, multiplied by
the stage of completion of such trade or portion of construction (expressed as
a percentage) as determined by the Construction Consultant; less

(ii)           any Retainage with respect to such
Line Item, if withheld pursuant to the terms hereof, and the amounts previously
advanced for such Hard Costs as set forth in such Line Item.

3.1.5.       Advances
for Soft Costs.  With respect to each
Project, to the extent that any Project Advance Request shall include Soft
Costs, Lender will, upon satisfaction of the applicable conditions set forth in
this Agreement, include the full amount of such Soft Costs in a Project Advance
if (i) such Soft Costs are set forth in the Project Budget as a portion of the
Project Costs to be funded from the Future Funding, and (ii) Lender has
received evidence reasonably satisfactory to Lender that such Soft Costs are
then due and payable or have been paid by Borrower.

3.1.6.       Project
Advance Requests.

(a)           Form of Project
Advance Request.  In the event that
Borrower shall wish to obtain a Project Advance, Borrower shall deliver to
Lender and the Construction Consultant a fully completed and executed Project
Advance Request that satisfies the requirements set forth in this

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Section 3.1
at least ten (10) Business Days prior to the Advance Date.  Each Project Advance Request delivered by
Borrower shall constitute Borrower’s representation and warranty to Lender
that:

(i)            any completed construction for which
the Project Advance is being requested is substantially in accordance with the
Plans and Specifications;

(ii)           all costs for the payment of which
the Lenders have previously advanced funds have in fact been paid;

(iii)          all the representations and warranties
of each Borrower Party contained in the Loan Documents were true, correct and
complete as of the date of execution of the Agreement, and in all material
respects as of the date of any previous Advance and continue to be true and
correct in all material respects as of the date of such Advance Request except
to the extent that the same can no longer be true as the result of the passage
of time; and

(iv)          no Default or Event of Default shall have
occurred and be continuing hereunder.

(b)           Project Advance
Request Required Documentation.  Each
Project Advance Request shall be subject to Lender’s reasonable approval and
shall be in accordance with the Disbursement Schedule, and shall be accompanied
by:

(i)            an executed Borrower Advance
Certification in the form attached hereto as Exhibit C;

(ii)           with respect to any Project Advance
Request that includes Hard Costs, a completed and itemized Application and
Certificate for Payment (AIA Document No. G702) or similar form approved by
Lender, together with invoices relating to all items of Project Costs in excess
of $50,000 covered thereby and accompanied by a cost breakdown showing the cost
of Work for the Project on, and the cost of materials incorporated into, the
Improvements of the Project to the date of the Advance Request; the cost
breakdown shall also show the percentage of completion of each Line Item on the
Project Budget, and the accuracy of the cost breakdown shall be certified by
the Borrower; all such applications for payment shall also show all Trade
Contractors and subcontractors being paid by such Project Advance, including
the Major Trade Contractors, by name and trade, the total amount of each such
Construction Contract or subcontract, the amount theretofore paid to each Trade
Contractor and subcontractor thereunder as of the date of such application, and
the amount to be paid from the proceeds of the Project Advance to each Trade
Contractor and subcontractor;

(iii)          with respect to any Project Advance
Request that includes Hard Costs, a Construction Consultant Certificate in form
and substance reasonably acceptable to Lender;

(iv)          a list of all Change Orders for the
Renovation Project that have not yet been submitted to Lender on the date of
such Project Advance Request, together with a

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statement by Borrower that copies of the same
have been submitted to Construction Consultant prior to the date of such
Project Advance Request, together with a list of all Change Orders then to date
and a list of all contemplated Change Orders;

(v)           a list of all Trade Contracts for the
Project executed since the date of the then last preceding Project Advance,
together with a statement by Borrower that copies of such Trade Contracts
involved with the Project executed by (or on behalf of) Borrower since the date
of the then last preceding Project Advance have been submitted to Construction
Consultant prior to the date of such project Advance Request;

(vi)          except with respect to any Initial
Project Advance thereunder, payment receipts substantially in the form attached
as Exhibit F from any Construction Manager, any General Contractor and
all Trade Contractors evidencing that they have been paid in full for all work
performed and/or materials supplied to the date of the preceding Advance,
except for Retainage provided for in this Agreement;

(vii)         with respect to any Project Advance
Request that includes Soft Costs, (i) evidence 
reasonably satisfactory to Lender that such Soft Costs have been
properly incurred and are due and payable and are within budgeted amounts, and
(ii) invoices, statements or such other information and documentation as Lender
shall reasonably request or require with respect to such Soft Costs covered by
such Advance Request to evidence the validity of such Soft Costs;

(viii)        evidence reasonably satisfactory to
Lender that the full amount of the last preceding Project Advance has been paid
out by Borrower, Construction Manager and/or General Contractor to the Persons
with respect to whom such Advance was disbursed and otherwise in accordance
with this Agreement; and

(ix)           such other information and documents
as may be reasonably requested or required by Lender or Construction Consultant
with respect to the Project Costs covered by such Project Advance Request.

(c)           Procedure of
Advances.  If Borrower shall have
complied with the provisions of this Section 3.1.6, Lender shall make
the requested Project Advance available to Borrower on the Advance Date set
forth in the applicable Project Advance Request in accordance with the terms of
this Section 3.1.6(c).

(i)            Each Project Advance shall be made
by Lender by wire transfer to the Construction Disbursement Account.  All proceeds of all Project Advances shall be
used by Borrower only for the purposes for which such Project Advances were
made and Borrower shall not commingle Project Advance proceeds with any other
funds of Borrower or its Affiliates.

(ii)           No Project Advance by Lender shall be
deemed to be an approval or acceptance by Lender or the Construction Consultant
of any Work performed thereon or the materials furnished with respect thereto.

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(iii)          No Project Advance by Lender shall
constitute a waiver of any of the conditions to make further Project Advances
set forth herein.

3.1.7.       Conditions
to the Initial Project Advance.  With
respect to any Project, the obligation of Lender to make any Initial Project
Advance shall be subject to the following conditions precedent, each of which
shall be completed to Lender’s reasonable satisfaction (or otherwise waived by
Lender in its sole and absolute discretion):

(a)           Project Advance
Request.  Borrower shall have
delivered Project Advance Request complying with the provisions of this
Agreement and attaching all deliveries, certificates and other documentation required
hereunder.

(b)           Loan Documents.  The Loan Documents, in form and substance
satisfactory to the Lender, shall have been duly executed, as necessary, and
delivered by the parties thereto and shall be in full force and effect, and
Lender shall have received the originals or fully executed counterparts
thereof.

(c)           Payment of Fees.  Borrower shall have paid, or caused to be
paid, all fees and expenses required by the Loan Documents, to the extent then
due and payable.

(d)           Project Documents.  Lender shall have received a true, correct
and complete copy of the Project Plan, the Plans and Specifications, the
Project Budget, the Construction Schedule and the Disbursement Schedule, in
each case in form and substance reasonably acceptable to Lender and Construction
Consultant.  Lender shall have received a
true, correct and complete copy of all other Project Documents then in place
for the Project, each in form and substance reasonably satisfactory to Lender.  For the purposes of the foregoing, Lender
hereby confirms its approval of the Project Plan, and other Project Documents,
relating to the Renovation Project, to the extent and in the form delivered to
Lender prior to the date hereof.

(e)           Architect
Agreement.  Lender shall have
received a true, correct and complete copy of each Architect Agreement for the
Project, in each case in form and substance reasonably acceptable to Lender and
Construction Consultant, and each Architect under such Architect Agreements
shall have delivered to Lender a duly executed and completed Architect Consent
with respect to its Architect Agreement, in the form required hereunder and
otherwise reasonably acceptable to Lender and Construction Consultant.

(f)            Developer
Agreement.  Lender shall have
received a true, correct and complete copy of any Developer Agreement for the
Project, in each case in form and substance reasonably acceptable to Lender and
Construction Consultant, and any Developer under such Developer Agreement shall
have delivered to Lender a duly executed and completed Developer Consent with
respect to its Developer Agreement or, if such Developer is an Affiliate of
Borrower, an Assignment of Development Agreement, in each case in the form
required hereunder and otherwise reasonably acceptable to Lender and
Construction Consultant.

(g)           Construction
Manager Agreement.  Lender shall have
received a true, correct and complete copy of any Construction Manager
Agreement for the Project, in each case in form and substance reasonably
acceptable to Lender and Construction Consultant, and any Construction Manager
under such Construction Manager Agreement shall have delivered to Lender a duly

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executed and
completed Construction Manager Consent with respect to its Construction Manager
Agreement, in the form required hereunder and otherwise reasonably acceptable
to Lender and Construction Consultant.

(h)           General
Contractor Agreement. Lender shall have received a true, correct and
complete copy of any General Contractor Agreement for the Project, in each case
in form and substance reasonably acceptable to Lender and Construction
Consultant, and any General Contractor under such General Contractor Agreement
shall have delivered to Lender a duly executed and completed General Contractor
Consent with respect to its General Contractor Agreement, in the form required
hereunder and otherwise reasonably acceptable to Lender and Construction
Consultant.

(i)            Engineer
Agreement. Lender shall have received a true, correct and complete copy of
each Engineer Agreement for the Project, in each case in form and substance
reasonably acceptable to Lender and Construction Consultant, and each Engineer
under any such Engineer Agreement shall have delivered to Lender a duly
executed and completed Engineer Consent with respect to its Engineer Agreement,
in the form required hereunder and otherwise reasonably acceptable to Lender
and Construction Consultant.

(j)            Trade
Contractors. Lender shall have received and approved in its reasonable
discretion a list of all Trade Contractors for the Project that are or, to the
extent then identifiable by Borrower, will be engaged in connection with such
Borrower Project and Lender shall have reasonably approved the standard form of
Trade Contract.

(k)           Major Trade
Contracts.  Lender shall have
received a true, correct and complete copy of each Major Trade Contract for the
Project, in each case in form and substance reasonably acceptable to Lender and
Construction Consultant, and each Major Trade Contractor under any such Major
Trade Contract shall have delivered to Lender a duly executed and completed
Major Trade Contractor Consent with respect to its Major Trade Contract, in the
form required hereunder and otherwise reasonably acceptable to Lender and
Construction Consultant.

(l)            Governmental
Approvals.  A true, correct and complete
copy of all Governmental Approvals necessary for the construction of the
Project Improvements as contemplated by the Plans and Specifications,
including, without limitation, a final non-appealable building permit for the
Project with no conditions thereto, and all relevant Construction Permits,
licenses and approvals, have been obtained and shall have been delivered to
Lender and approved by Lender and Construction Consultant.

(m)          Shortfall.  Lender shall have received evidence
reasonably satisfactory to Lender that no Shortfall shall exist.

(n)           Title Policy.  Lender shall have received the Title
Insurance Policy, together with evidence of coinsurance and reinsurance direct
access arrangements as Lender shall reasonably require.

(o)           Insurance.  Lender shall have received true, correct and
complete policies of all insurance required to be maintained pursuant to this
Agreement or any other Loan Document or other evidence of such insurance
acceptable to Lender in its reasonable discretion.

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(p)           Zoning and Building
Codes.  Lender shall have received
evidence reasonably acceptable to Lender (including, without limitation,
letters from applicable Governmental Authorities, opinions from zoning counsel
and certifications from the Architect) that the Project does and will comply
with all applicable zoning, subdivision, land use, parking, environmental and
building statutes, codes, ordinances, regulations, variances and special
regulations.

(q)           Material Adverse
Effect.  No event or circumstances
shall exist which is reasonably likely to have a Material Adverse Effect.

(r)            Taxes.  Lender shall have received evidence
reasonably satisfactory to Lender that Borrower has paid an amount of taxes
necessary to make the Security Instrument and other Loan Documents creating and/or
perfecting the Liens on the Property valid and enforceable up to the then
applicable Loan Amount and including the amount of such Project Advance.

3.1.8.       Conditions
to Subsequent Project Advances. 
Lender shall not be obligated to make any Advance subsequent to the
Initial Project Advance, unless the following conditions are satisfied (or
otherwise waived by Lender in its sole and absolute discretion):

(a)           Updates to
Conditions for Initial Advance.  To
the extent that since the date of the immediately prior Project Advance,
Borrower has entered into any new (or amended any existing) Project Documents,
Architect Agreements, Developer Agreements, Construction Manager Agreements,
General Contractor Agreements, Engineer Agreements or Major Trade Contracts with
respect to the Project, Lender shall have received true, correct and complete
copies of such documents, agreements and/or amendments, in each case in form
and substance reasonably acceptable to Lender and Construction Consultant if
and only if Lender has approval rights with respect thereto under the terms of
this Agreement, and any new Architect, Developer, Construction Manager, General
Contractor, Engineer or Major Trade Contractor shall have delivered to Lender a
duly executed and completed Architect Consent, Developer Consent, Construction
Manager Consent, General Contractor Consent, Engineer Consent and/or Major
Trade Contractor Consent, as applicable. 
Borrower shall have also updated the list of Trade Contracts set forth
in Section 3.1.7(j), if applicable.

(b)           Representations
and Warranties.  On the date of each
such subsequent Project Advance, the representations and warranties made by
each Borrower Party in any other Loan Documents shall be true and correct in
all material respects on and as of the date of such subsequent Advance with the
same effect as if made on such date (and each Borrower Party shall have
delivered to Lender a certification to such effect) except to the extent that
the same can no longer be true as the result of the passage of time.

(c)           No Event of
Default.  On the date of each such
subsequent Project Advance, no Default or Event of Default hereunder shall have
occurred and be continuing.

(d)           Project Advance
Request.  Lender shall have received
a complete executed Project Advance Request in accordance with the requirements
of Section 3.1.6, together with all required attachments and deliveries
relating thereto.

(e)           Additional
Construction Documents.  Lender shall
have received from Borrower an updated certified list of all Construction
Contracts for the Project that have been entered into.

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(f)            Updated Project
Budget.  Lender shall have received
an updated Project Budget, in form and substance reasonably approved by Lender,
which indicates the Project Costs anticipated to complete the construction of
the Project Improvements, after giving effect to Project Costs incurred during
the period since the date of the Initial Project Advance, or the last preceding
Project Advance Request, as applicable.

(g)           Miscellaneous.  Lender shall have received all documents,
reports, certificates, affidavits and other information, in form and substance
satisfactory to Lender or Construction Consultant, as each reasonably may
require to evidence compliance by Borrower with all of the provisions of this
Agreement.

(h)           Anticipated Cost
Report.  Lender shall have received
an Anticipated Cost Report in form and substance reasonably approved by Lender.

(i)            Budget
Reconciliation.  Lender shall have
received a reconciliation by Borrower of the progress and cost of the
construction of the Project through the date of the Project Advance with the
applicable Construction Schedule and the Project Budget together with a
projection of such progress and cost through to completion of the construction
of the Project.

(j)            Payment of Fees.  Borrower shall have paid, or caused to be
paid, all fees and expenses required by the Loan Documents, to the extent due
and payable.

(k)           Shortfall.  Lender shall have received evidence
reasonably satisfactory to Lender that no Shortfall shall exist.

(l)            Title
Continuation.  Lender shall have
received a Title Continuation for the Title Insurance Policy, dated as of the
date of such Project Advance, in form and substance reasonably acceptable to
Lender.

(m)          Material Adverse
Effect.  No event or circumstances
shall exist which is reasonably likely to have a Material Adverse Effect.

3.1.9.       Conditions
to Final Project Advance.  Lender
shall not be obligated to make the final Project Advance, including (without
limitation) any Retainage pursuant to this Agreement (the “Final Project
Advance”), unless in addition to the conditions set forth in Section
3.1.8, the following conditions are satisfied (or otherwise waived by
Lender in its sole and absolute discretion):

(a)           Completion
Certificates.  Lender shall have
received the Architect Final Completion Certificate and the Construction
Consultant Final Completion Certificate with respect to the Project.

(b)           Final Lien
Waivers and Receipts.  Lender shall
have received from any Construction Manager, any General Contractor and all
Trade Contractors either (i) final unconditional release/payment receipts
substantially in the form attached as Exhibit G evidencing that the same
have been paid in full for all work performed and/or materials supplied, or (ii)
final conditional release/payment receipts substantially in the form attached
as Exhibit H which shall be conditioned solely upon receipt of a portion
of such Final Project Advance.

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(c)           Certificates of
Occupancy.  Lender shall have
received a copy of the permanent (or temporary) Certificate of Occupancy and
all other material Operating Permits for the Project Improvements.

(d)           Final Survey.  Lender shall have received a final Survey of
the Property by a surveyor reasonably satisfactory to Lender and the Title
Company in the form of the Surveys of the Property delivered to Lender as of
the Closing Date (as revised thereafter to the extent required under the Loan
Documents) and otherwise reasonably satisfactory to Lender.

(e)           Title Insurance
Policy.  Endorsements to the Title
Insurance Policy referencing the final survey and indicating no Liens other
than Permitted Encumbrances and including an update to the Form 9 Comprehensive
Endorsement, in each case in form and substance reasonably acceptable to Lender.

(f)            Payment of Fees.  Lender shall have received payment for any
and all fees payable with respect to the Advance pursuant to the Loan
Documents, including (without limitation) all fees and expenses of Construction
Consultant to the extent then due and payable.

3.1.10.     Budget
Reallocations.

(a)           Contingency Line
Items.  Borrower may, without Lender’s
consent, revise the Project Budget for any Project from time to time to move
(i) amounts available under any Line Item for Hard Costs that are designated as
“Contingency” to other Line Items for Hard Costs in the Project Budget, and/or
(ii) amounts available under any Line Item for Soft Costs that are designated
as “Contingency” to other Line Items for Soft Costs in the Project Budget.

(b)           Cost Savings.  If there is a Cost Saving in a particular
Line Item of the Project Budget for any Project and such Cost Saving is
substantiated by evidence reasonably satisfactory to Lender, then Borrower
shall have the right to reallocate such Cost Saving to another Line Item of the
Project Budget with respect to which additional costs have been or may be
incurred; provided, however, that, subject to the provisions of Section
3.1.10(d) below, Borrower shall in no event or under any circumstances have
the right to do the following without in each instance obtaining the prior
approval of Lender, which approval may be withheld in its sole and absolute
discretion:

(i)            reallocate any portion of the Line
Items for interest, fees and other expenses payable hereunder prior to Final
Completion of the Project; or

(ii)           reallocate any Cost Savings in any
Line Item for Hard Costs to a Line Item other than another Line Item for Hard
Costs.

(c)           New Line Items.  Subject to the provisions of Section
3.1.10(d) below, without the prior written consent of Lender in each
instance, (i) Borrower shall not be permitted to create any new Line Item in
the Project Budget for the Project, and (ii) the Line Item designated “Contingency”
may not be reallocated to any such new Line Item.

 

 86

(d)           Permitted Budget
Modifications.  Notwithstanding the
foregoing, Borrower shall have the right, without the consent of Lender, to
modify the Renovation Project Budget to the extent the same shall not
constitute a Material Change Order pursuant to Section 3.1.13.

(e)           Use of Cost
Savings Upon Final Completion. So long as no Event of Default shall then
exist, upon Final Completion of the Renovation Project, Lender shall direct
Cash Management Bank to transfer all Renovation Project Reserve Funds remaining
on deposit in the Renovation Project Reserve Account to the General Reserve
Account, whereupon such funds  shall be
held and/or disbursed in accordance with the terms of Section 7.9. So
long as no Event of Default shall then exist, upon Final Completion of any
Future Project, Lender shall direct Cash Management Bank to transfer all Future
Project Reserve Funds previously advanced into the Future Project Reserve
Account with respect to such Future Project to the General Reserve Account,
whereupon such funds shall be held and/or disbursed in accordance with the
terms of Section 7.9.

3.1.11.     Loan
Balancing and Shortfalls.

(a)           Lender will not be
required to make Project Advances pursuant to the provisions of this Agreement
or any of the other Loan Documents for more than the amount of any Line Item in
the Project Budget for the any Project, unless Cost Savings from other Line
Items have previously been reallocated in accordance with the terms hereof or
all or a portion of the Line Item designated as “Contingency” has been
reallocated to such Line Item in accordance with the terms hereof or any of the
actions set forth in Section 3.1.11 below are taken.

(b)           In the event that
Lender shall reasonably determine (after reasonable consultation with
Borrowers) that there exists any Shortfall with respect to the Future Funding,
Lender shall deliver notice of such determination to Borrower and thereafter
until such Shortfall no longer exists, Lender will not be obligated to make any
Advances of the Future Funding under this Agreement or any of the other Loan
Documents and, within ten (10) days of receipt of such notice of determination,
Borrower shall take any of the following action:

(i)            establish to Lender’s reasonable
satisfaction that contrary to Lender’s prior determination, no Shortfall then
exists;

(ii)           reallocate Cost Savings and/or any
Line Item designated as “Contingency” pursuant to the terms hereof such that
the aggregate sum of the Shortfall is reduced to zero;

(iii)          deposit cash (“Deficiency Cash
Collateral”) with Lender as provided herein) or deliver to Lender, as
beneficiary, one or more Letters of Credit (a “Deficiency Letter of Credit”),
in either case in the aggregate amount of the Shortfall; or

(iv)          make one or more payments on account
of Hard Costs and/or Soft Costs until the Shortfall has been reduced to zero.

(c)           If Borrower deposits
Deficiency Cash Collateral with Lender, such deposit shall be held in an
account which shall be treated as a Reserve Account for all purposes of this
Agreement, including Section 7.9. 
Any Deficiency Letter of Credit shall have an expiration date

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not earlier
than thirty (30) days after the Maturity Date, provided that the expiration
date may be one (1) year from its issuance if the Deficiency Letter of Credit
provides for a drawing by Lender of the full amount thereof at any time on or
after the thirtieth (30th) day preceding its stated expiration
date if it has not been renewed or extended.

(d)           Until such time as
all Project Costs of the Project have been paid in full or any Shortfall for
the Future Funding has been eliminated, Borrower shall have no right to any
Deficiency Cash Collateral except for the purpose for which such funds were
deposited; provided that, so long as an Event of Default exists, Borrower shall
have no right to any such Deficiency Cash Collateral for any purpose and Lender
may use and apply such deposit in its sole discretion in accordance with the
terms hereof.  Until expended or applied
as provided herein, any Deficiency Cash Collateral and the proceeds of any
Deficiency Letter of Credit, together with any interest thereon, shall
constitute additional security for the obligations of Borrower hereunder.

(e)           Any Deficiency
Letter of Credit shall be held by Lender and may be drawn at any time within
thirty (30) days prior to the expiration thereof (unless replaced or renewed
prior to such drawing) or upon the occurrence and during the continuance of an
Event of Default, whereupon the proceeds of the Deficiency Letter of Credit
shall be treated as Deficiency Cash Collateral for all purposes.  Any remaining cash amounts held as Deficiency
Cash Collateral shall be advanced to pay Project Costs for the Renovation
Project in the same manner as if such amounts were proceeds of the Future
Funding.

(f)            In the event that
after the deposit of any Deficiency Cash Collateral but prior to disbursement
thereof or after the delivery of a Deficiency Letter of Credit but prior to the
draw of all proceeds thereof, Borrower shall establish to Lender’s satisfaction
that due to a change in circumstances, the amount of the Deficiency Cash
Collateral or the Deficiency Letter of Credit exceeds the Shortfall for the
Future Funding, then, promptly following the request of Borrower and provided
no Event of Default shall then exist, such Deficiency Cash Collateral, up to
the amount of such excess, shall be disbursed to Borrower or the amount of any
Deficiency Letter of Credit, up to the amount of such excess, may be reduced.

3.1.12.     Advances
for Stored Materials and Deposits.

(a)           Except to the extent
set forth in this Section 3.1.12, Lender shall in no event or under any
circumstances have any obligation to make any disbursement of the Future
Funding for or with respect to materials which are stored other than on the
Property unless Lender reasonably agrees to the contrary.

(b)           Lenders shall not be
required to disburse any funds for any materials, machinery or other Personal
Property not yet incorporated into the Improvements (the “Stored Materials”)
unless Lender and Construction Consultant receive reasonably satisfactory
evidence that:

(i)            the Stored Materials are components
in substantially final form ready for incorporation into the Project;

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(ii)           the Stored Materials are stored at
the Property, in a bonded warehouse in Nevada, or at such other site as Lender
shall reasonably approve, and are protected against theft and damage;

(iii)          the Stored Materials under materials
only contracts will be paid for in full with the funds to be disbursed and
Stored Materials under labor and materials contracts shall be subject to the
Retainage requirements set forth herein, and all rights or claims of the
supplier will be released upon full payment;

(iv)          Lender shall have received, or will
receive upon payment of such Advance, warehouseman’s receipts or other evidence
reasonably satisfactory to Lender of the Lender’s first priority Lien in such
materials;

(v)           Borrower shall provide proof
reasonably satisfactory to Lender that such materials are insured against loss
by casualty or theft for their full replacement cost;

(vi)          the aggregate cost of Stored Materials
stored at the Property has been reviewed and certified by the Construction
Consultant; and

(vii)         the cost of Stored Materials in the
aggregate at any time with respect to the Project is not more than $20,000,000.

(c)           In the event that
the Borrower shall at any time store materials at any one location other than
the Property, the cost of which exceeds the maximum amount permitted under this
Section 3.1.12(c), Borrower shall pay the excess cost of such materials
with its own funds and shall not be entitled to any Advance in respect of such
excess until such time as such excess is located at the Property and the other
conditions set forth in this Section 3.1.12 have been satisfied (or
waived by Lender in its sole discretion).

(d)           So long as all of
the conditions set forth herein have been satisfied, with respect to any
Project, Borrower may include in any Project Advance Request an amount in order
to pay advance deposits on items being manufactured and where payments are
required to be made prior to completion of such manufacture, provided that (i)
such items would otherwise constitute Project Costs and would be paid from the
Future Funding, (ii) all such amounts shall not exceed $15,000,000 in the
aggregate, and (iii) any Project Advance Request that includes such advance
deposit amounts shall include a schedule of such amounts, a copy of the
applicable contract and the invoice for such advance deposit amount, each as
reasonably verified and approved by Construction Consultant.

3.1.13.     Change
Orders.

(a)           Borrower shall
provide to Lender and Construction Consultant copies of all orders, documents
or revisions to Plans and Specifications reflecting Change Orders for the
Project, regardless of whether the prior approval by Lender and/or Construction
Consultant of any such order, document or revision is required pursuant to the
terms hereof.

(b)           Borrower shall not
request, initiate, agree to, accept, cause or suffer directly or indirectly any
Material Change Order (as defined below) without Lender’s prior written
consent,

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not to be
unreasonably withheld.  Any Change Order
other than a Material Change Order shall not require Lender’s consent.  No Change Order, whether or not approved by
Lender (i) shall obligate Lender to increase the amount of the Future Funding,
and (ii) nor obligate Lender to make any Advance to the extent the same would
not otherwise be obligated pursuant to this Agreement to make such
Advance.  Borrower shall submit to Lender
and Construction Consultant copies of each proposed Material Change Order prior
to entering into it, together with documentation reasonably satisfactory to
Lender and Construction Consultant, setting forth all additions and
subtractions theretofore made to or from the scope of the Project.  Lender shall promptly review all Material
Change Orders so submitted, and grant or deny its consent within ten (10)
Business Days of Borrower’s request therefor; provided that the request is
accompanied by a notice, which provides in upper case bold-faced type:  “THIS IS A REQUEST FOR AN APPROVAL WITH
RESPECT TO A MATERIAL CHANGE ORDER.  IF
LENDER FAILS TO RESPOND WITHIN 10 BUSINESS DAYS OF THE EFFECTIVENESS OF THIS
NOTICE, THE REQUESTED ACTION WITH RESPECT TO THE MATERIAL CHANGE ORDER WILL BE
DEEMED APPROVED”, if Lender does not respond during such ten (10) Business Day
period, it shall be deemed to have approved such Material Change Orders.  If any Material Change Order shall require
the consent or approval of any third party, Borrower shall provide Lender with
written evidence of such consent or approval. 
Borrower shall submit to Lender and Construction Consultant copies of
all Change Orders entered into with respect to the Project within fifteen (15)
days after the same are entered into (and in any event concurrently with any
Advance Request to which such Change Order relates), irrespective of whether
the same require the prior approval of Lender and Construction Consultant
pursuant to this Agreement.  Nothing
herein shall be deemed to restrict Borrower’s ability to fund Line Item
increases with Equity Payments, provided that Lender’s approval is not
otherwise required hereunder.  As used
herein, a “Material Change Order” shall mean any Change Order with
respect to the Renovation Project, that together with all other Change Orders
theretofore entered into with respect to the Renovation Project, increases (i)
any “Division” of Line Items in the Renovation Project Budget in excess of 10%
of the amount of such “Division” of Line Items on the date hereof, or (ii) the
aggregate Project Costs set forth in the Renovation Project Budget in an amount
greater than $11,000,000; provided
that, with respect to any Future Project, a “Material Change Order” shall be
defined by reference to limits reasonably proportionate to the foregoing, as
reasonably adjusted by Lender in light of the scope of such Future Project.

3.1.14.     Quality
of Work.  No Project Advance or any
portion thereof shall be made with respect to defective Work or materials or to
any Person that has performed Work or supplied materials that are defective and
that has not been cured, as specified in and confirmed by the report of the
Construction Consultant; provided, however, that Lender may disburse all
or any part of the Future Funding before any such cure if Lender believes it
advisable to do so, and all such amounts or portions thereof shall be deemed to
have been made pursuant to this Agreement.

Section 3.2.            Renovation
Project Representations.  Borrower
hereby represents and warrants, with respect to the Renovation Project, as of
the Closing Date that:

(a)           Borrower has all
necessary power and authority to enter into and perform its obligations under
the Renovation Project Documents to which Borrower is a party or is otherwise
bound, and all other agreements and instruments to be executed by Borrower in

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connection
with the construction of the Renovation Project Improvements and the
development of the Renovation Project.

(b)           The Renovation
Project Documents to which Borrower is a party have been, and the Renovation
Project Documents to which Borrower will be a party will be, duly executed and
delivered by Borrower.

(c)           The Renovation
Project Documents to which Borrower is a party constitute, and the Renovation
Project Documents to which Borrower will be a party, when executed and
delivered, each will constitute a legal, valid and binding obligation of
Borrower, enforceable against Borrower in accordance with their respective
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally.

(d)           The construction of
the Renovation Project Improvements and the execution, delivery and performance
by Borrower of its obligations under, and the consummation of the transactions
contemplated by, each of the Renovation Project Documents to which Borrower is,
or will be, a party, and all other agreements and instruments to be executed by
Borrower in connection therewith do not and will not (a) violate any Legal
Requirement applicable to Borrower, (b) result in a breach of any of the terms,
conditions or provisions of, or constitute a default under the organizational
documents of Borrower, or any mortgage, indenture, agreement, permit, franchise,
license, note or instrument to which Borrower is a party or by which it or any
of its properties is bound, or (c) result in the creation or imposition of any
mortgage, lien, charge or encumbrance of any nature whatsoever upon any of the
assets of Borrower (except as contemplated by this Agreement and by the other
Loan Documents).

(e)           There are no
actions, suits or proceedings at law or in equity or before or instituted by
any Governmental Authority pending or, to Borrower’s knowledge, threatened
against or affecting Borrower, any of its Affiliates or the Property, or any
part thereof which affect or might affect the validity or enforceability of any
of the Renovation Project Documents or which may have a material adverse effect
on the Borrower’s ability to complete the Renovation Project.

(f)            All Construction
Permits that are required in connection with the valid execution, delivery and
performance by Borrower of the Renovation Project Documents and all other
agreements and instruments to be executed by Borrower in connection therewith
have been obtained (or will be obtained when required) and are (or will be) in
full force and effect and Borrower agrees that all Construction Permits and
Operating Permits required for the construction and operation of the Renovation
Project Improvements and otherwise in connection with the carrying out or
performance of any of the transactions required or contemplated thereby (other
than routine construction and occupancy permits which are not appropriate or
necessary for the stages of construction in question) will be obtained when
required.

(g)           The Plans and
Specifications have been approved, to the extent required as of the date hereof
by applicable Legal Requirements, by all Governmental Authorities.  The anticipated use of the Renovation Project
Improvements complies with all restrictive covenants affecting the

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Property and
all Legal Requirements, including, without limitation, all applicable zoning
ordinances and regulations and environmental laws.

(h)           All utility services
and facilities necessary for the construction of the Renovation Project
Improvements and, upon completion of construction, the operation, use and
occupancy of the Renovation Project Improvements for their intended purposes
are available (or will be available when needed) at the boundaries of the
Property, including, without limitation, water supply, storm and sanitary sewer
facilities, gas and electric and telephone facilities and means of access
between the Property and public ways.

(i)            Except for the
existing Trade Contracts disclosed to Lender in writing on or before the date
hereof, Borrower has not made, assumed or been assigned any contract or
arrangement of any kind, the performance of which by the other party thereto
would give rise to a Lien against all or any portion of the Property.

(j)            The current zoning
law and declarations covering the Property (together with the applicable
Construction Permits and Operating Permits obtained by Borrower) permit ‘by-right’
the construction of the Renovation Project Improvements to be completed in
accordance with the Plans and Specifications and, upon completion of
construction in accordance with the Plans and Specifications, the current
zoning law and declarations covering the Property, together with the applicable
Construction Permits and Operating Permits obtained or to be obtained by
Borrower, permit the Renovation Project Improvements to be operated and used as
contemplated by this Agreement and the other Loan Documents.  The Property currently and, upon completion
of construction in accordance with the Plans and Specifications, the use
thereof will be in all respects in compliance with all Construction Permits
then required and Operating Permits then required, as applicable, and all other
Legal Requirements, and such compliance is not dependent on any land,
improvements or facilities not a part of the Property.  There are no pending, or to Borrower’s
knowledge, threatened actions, suits or proceedings to revoke, attach,
invalidate, rescind or modify the zoning applicable to the Property or any part
thereof, or any of the Construction Permits, as currently existing.

(k)           The Trade Contracts
and the other Project Documents heretofore executed by, or assigned to and
assumed by, Borrower are in full force and effect, not having been amended,
modified, terminated, assigned or otherwise changed, or the provisions thereof
waived, except as permitted hereunder or as has otherwise been disclosed to
Lender.

(l)            The Renovation
Project Budget relating to the Renovation Project contains all Hard Costs and
Soft Costs and any other costs and expenses reasonably anticipated to be
incurred in connection the construction and development of the Renovation
Project Improvements.

Section 3.3.            Renovation
Project Construction Covenants.  From
the date hereof and until payment and performance in full of all obligations of
Borrower under the Loan Documents or the earlier release of the Lien of the
Security Instrument (and all related obligations) in accordance with the terms
of this Agreement and the other Loan Documents, Borrower hereby covenants and
agrees with respect to each Project as follows:

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3.3.1.       General.  Borrower shall cause the Project Costs of the
construction of the Project Improvements to be in accordance with the Project
Budget (subject to Borrower’s rights and obligations with respect to
Shortfalls, and Borrower’s rights to change the Project Budget to the extent
permitted under this Agreement). 
Borrower shall cause construction of the Project in accordance with the
applicable Plans and Specifications (as they may be revised as permitted
hereunder) in all material respects, free and clear of Liens or claims for
materials supplied or for labor or services performed in connection with the
construction of the Project or otherwise.

3.3.2.       Construction
Schedule.  Each month during the
period from the commencement of the Project until Substantial Completion of the
Project, Borrower shall deliver to Lender and Construction Consultant a copy of
any updated Construction Schedule reflecting, among other things, the
anticipated dates of completion of and the timing of disbursements of
incremental amount of various subcategories of the Project Budget, all in such
form and containing such details as Lender may require in its reasonable
discretion.

3.3.3.       Budget
Adjustments.  No adjustments in any
Project Budget shall be deemed to be approved without the prior written consent
of Lender, not to be unreasonably withheld, except to the extent expressly
permitted under Section 3.1.13 or otherwise hereunder.

3.3.4.       Inspection
of Project and Books and Records.

(a)           Borrower agrees to
permit Lender and Construction Consultant, or designated representatives of any
of them, to enter upon the Property, at any reasonable times during business
hours on reasonable notice and without material interference with the
construction of the Project or the operation of the Property, with free access
to inspect or examine or, to the extent not located on the Property, to
otherwise make available to Lender and Construction Consultant the following:

(i)            all materials and shop drawings
pertaining to the construction of the Project;

(ii)           any contracts, bills of sale,
statements, receipts or vouchers pertaining to the construction of the Project;

(iii)          all work done, labor performed or
materials furnished in and about the Project, including, without limitation, in
connection with the construction of the Project;

(iv)          all books, contracts and records of
Borrower or its Affiliates pertaining to the construction of the Project; and

(v)           any other documents in the possession
or control of Borrower or its Affiliates which are related to the construction
of the Project.

(b)           Borrower promptly
will provide Lender or Construction Consultant with copies of any of the
foregoing as Lender or Construction Consultant, as the case may be, may from
time to time reasonably request. 
Borrower will make its representatives available to discuss Borrower’s
affairs, finances and accounts relating to the construction of the Renovation
Project, and Borrower will reasonably cooperate, and take all reasonable steps
to cause any Developer, any

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Construction
Manager, any Architect, any Engineer, any General Contractor, if any, and any
Major Trade Contractors to cooperate with Lender and Construction Consultant,
or any of their designated representatives, to enable such Person to perform
its functions under this Agreement.

3.3.5.       Correction
of Work.  Borrower will, promptly
after notice from Lender, correct any defect in the Project or any material departure
from the Plans and Specifications thereof. 
Borrower agrees that the making of any Advance shall not constitute a
waiver of Lender’s right to require compliance with this Section 3.3.5
with respect to any such defects or departures from the Plans and
Specifications.  Borrower agrees that
Lender’s failure to deliver such a notice shall not constitute a waiver by
Lender of any of the obligations of Borrower hereunder.

3.3.6.       Required
Notices.

(a)           Borrower shall give
notice to Lender promptly upon the occurrence of:

(i)            any cessation of construction of the
Project (after it has commenced) for a period in excess of fifteen (15)
consecutive calendar days, regardless of whether or not such cessation is due
to an Excusable Delay;

(ii)           Borrower obtaining knowledge of any
material actual or threatened litigation, investigation or legal proceeding
(including without limitation, a motion where injunctive or similar relief is
sought) affecting the Project;

(iii)          any actual or threatened litigation or
action of a Governmental Authority of which Borrower has knowledge concerning
the actual or alleged presence, release, threat of release, placement on or in,
or the generation, transportation, storage, treatment or disposal at, the
Property of any Hazardous Substance in violation of Environmental Law;

(iv)          any notice given pursuant to any
Project Document alleging that there has occurred a default or other failure by
Borrower in the fulfillment of Borrower’s obligations thereunder beyond any
applicable grace, cure or notice periods (if any); and

(v)           any condition which results in any
material delay, including, without limitation, any Excusable Delay, in the
Project which is reasonably expected to result in Substantial Completion for
the Project occurring after the date therefor set forth in the Construction
Schedule, or in any further material delay beyond any delays of which Lender
has been previously notified.

(b)           Each notice pursuant
to this Section 3.3.6 shall be accompanied by a statement of Borrower
setting forth details of the occurrence referred to therein and stating what
action Borrower proposes to take with respect thereto, in each case in such
detail as Lender may reasonably require.

3.3.7.       No
Encroachments.  Borrower shall cause
the Project to be constructed entirely within the perimeter of the Property and
so as not to encroach upon or overhang any easement or right-of-way or any land
of others, and when erected shall be wholly within any applicable building
restriction lines, however established.

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3.3.8.       Compliance
with Construction Documents. 
Borrower shall abide by, perform and comply with all of Borrower’s
obligations under each of the Project Documents for the Renovation Project and
Borrower, at its sole cost and expense, shall use all commercially reasonable
efforts to secure or enforce the performance of each and every material
obligation, covenant, condition and agreement to be performed by the other
parties under any such documents.

3.3.9.       Changes
in Agreements.  Except to the extent
otherwise permitted herein, Borrower will not surrender, terminate, cancel,
modify or amend (in any material respect) enter into any such agreement or any
agreement in substitution for, or consent to the assignment of any Architect
Agreement, any Engineer Agreement, any Construction Management Agreements, any
Developer Agreement or any General Contractor Agreement, without Lender’s prior
written consent, which consent shall not be unreasonably withheld.  Lender shall promptly review all documents so
submitted, and grant or deny its consent within ten (10) Business Days of
Borrower’s request therefor; provided that the request is accompanied by a
notice, which provides in upper case bold-faced type:  “THIS IS A REQUEST FOR AN APPROVAL WITH
RESPECT TO A MATERIAL AGREEMENT.  IF LENDER
FAILS TO RESPOND WITHIN 10 BUSINESS DAYS OF THE EFFECTIVENESS OF THIS NOTICE,
THE REQUESTED ACTION WITH RESPECT TO THE MATERIAL AGREEMENT WILL BE DEEMED
APPROVED”, if Lender does not respond during such ten (10) Business Day period,
it shall be deemed to have approved such request, action or agreement.  If and to the extent any amendment,
supplement, replacement or other modification is made to any of the foregoing,
upon reasonable request by Lender, Borrower shall promptly cause the Architect,
the Engineer, the Construction Manager, the Developer or the General
Contractor, as applicable, to deliver a certificate or other written statement
which confirms, on and as of the date thereof, that the Architect Consent, the
Engineer Consent, the Construction Manager Consent, the Developer Consent of
the General Contractor Consent, as applicable, previously delivered in
connection with the Loan remains valid, true, correct and complete as of the
date of the original delivery of such certificate.  Borrower promptly will give notice to Lender
of the surrender, termination, cancellation, modification, amendment,
substitution or assignment of the other Project Documents, whether or not
Lender consented thereto pursuant to the immediately preceding sentence.

3.3.10.     Major
Trade Contracts.  Borrower will not,
without Lender’s prior written consent, which consent shall not be unreasonably
withheld, enter into any Major Trade Contract except the Major Trade Contracts
existing on the date hereof or surrender, terminate, cancel, materially modify
or materially amend any Major Trade Contract. 
Lender shall promptly review all Major Trade Contracts so submitted, and
grant or deny its consent within ten (10) Business Days of Borrower’s request
therefor; provided that the request is accompanied by a notice, which provides
in upper case bold-faced type:  “THIS IS
A REQUEST FOR AN APPROVAL WITH RESPECT TO A MAJOR TRADE CONTRACT.  IF LENDER FAILS TO RESPOND WITHIN 10 BUSINESS
DAYS OF THE EFFECTIVENESS OF THIS NOTICE, THE REQUESTED ACTION WITH RESPECT TO
THE MAJOR TRADE CONTRACT WILL BE DEEMED APPROVED”, if Lender does not respond
during such ten (10) Business Day period, it shall be deemed to have approved
such Major Trade Contracts.  Borrower
certifies that, on or prior to the date hereof, Lender has been provided with a
true, correct and complete copy of each Major Trade Contract.  In connection with the foregoing consent,
Borrower may from time to time

 95
 

deliver to Lender and Construction Consultant a list of the names of
prospective Major Trade Contractors with whom Borrower may contract for the
construction of the Renovation Project Improvements.  Borrower will deliver to Lender an executed
copy of any Trade Contract which Borrower enters into and will promptly give
notice to Lender of the surrender, termination, cancellation, modification,
amendment, substitution or assignment of any Trade Contract, whether or not
Lender’s consent to such action is required pursuant to this Section 3.3.10.  Borrower shall deliver to Lender a copy of
each subcontract entered into by any Construction Manager or General Contractor
within ten (10) days after such subcontract is entered into (to the extent that
Borrower is aware of such subcontract and a copy thereof is made available to
Borrower).

3.3.11.     Final
Survey.  Borrower will deliver to
Lender within sixty (60) days after Substantial Completion of the Project has
occurred, an updated “as-built” survey for the Property, dated no earlier than
the date on which Substantial Completion occurs with a certification that there
are no material encroachments by the Project on land other than the Property.

3.3.12.     Construction
Permit. Promptly after obtaining any material Construction Permit for the
construction of the Project or any part thereof, Borrower shall deliver a copy
thereof to Lender.

3.3.13.     Certificate
of Occupancy.  Upon Substantial
Completion of the Project, Borrower shall obtain an unconditional permanent (or
temporary) Certificate of Occupancy with respect to the Property and shall keep
such certificate of occupancy in effect at all times thereafter.  To the extent Borrower obtains a temporary
Certificate of Occupancy, Borrower shall diligently pursue and use all
commercially reasonable efforts to obtain a permanent Certificate of Occupancy.

3.3.14.     Lender
Review.  Observation, inspection and
approvals by Lender of the Plans and Specifications for the Project, any other
Project Documents related to the Project, the construction of the Project and
the workmanship and materials used therein shall impose no responsibility or
liability of any nature whatsoever on Lender or Construction Consultant and no
Person shall, under any circumstances, be entitled to rely upon such
inspections and approvals by Lender or Construction Consultant for any reason.  Approvals granted by Lender for any matters
covered under this Agreement shall be narrowly construed to cover only the
parties and facts identified in any such approval.

3.3.15.     Trade
Contractors.  Except as provided by
law, no Trade Contractors or any other Person dealing with Borrower, including,
without limitation, the Architect, the Engineer, if any, and the Construction
Manager, shall be, nor shall any of them be deemed to be, third party
beneficiaries of this Agreement, but each shall be deemed to have agreed (i)
that the Trade Contractor(s) or other Person in question shall look to Borrower
as their sole source of recovery if not paid and (ii) except as otherwise
agreed to in writing between Lender and the Trade Contractor(s) or other Person
in question, that they may not claim against Lender under any circumstances.

Section 3.4.            Construction
Consultant.  Lender has retained
Construction Consultant, at the sole cost of the Borrower, to perform certain
services and advise Lender generally with

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respect to each Project. The reasonable fees of Construction Consultant
shall be paid by Borrower within thirty (30) days after billing therefor and
expenses incurred by Lender on account thereof shall be reimbursed to Lender
within ten (10) days after request therefor, but neither Lender nor
Construction Consultant shall have any liability to Borrower on account of: (i)
the services performed by Construction Consultant; (ii) any neglect or failure
on the part of Construction Consultant to properly perform its services; or
(iii) any approval given or withheld by Construction Consultant.  Neither Lender nor Construction Consultant
assumes any obligation of Borrower or any other Person concerning the quality
of construction of any Project or the absence therefrom of defects.  Borrower acknowledges that (i) Construction
Consultant has been retained by Lender to act as a consultant and only as a
consultant to Lender in connection with the construction of the Projects and
has no duty to Borrower, (ii) Construction Consultant shall in no event or
under any circumstance have any power or authority to make any decision or to
give any approval or consent or to do any other act or thing which is binding
upon Lender, and any such purported decision, approval, consent, act or thing
by Construction Consultant on behalf of Lender shall be void and of no force or
effect, (iii) Lender reserves the right to make any and all decisions required
to be made by Lender under this Agreement and to give or refrain from giving
any and all consents or approvals required to be given by Lender under this
Agreement and to accept or not accept any matter or thing required to be
accepted by Lender under this Agreement, and without being bound or limited in
any manner or under any circumstances whatsoever by any opinion expressed or
not expressed, or advice given or not given, or information, certificate or
report provided or not provided, by Construction Consultant to Lender or any
other person or party with respect thereto, (iv) Lender reserves the right in
its sole and absolute discretion to disregard or disagree, in whole or in part,
with any opinion expressed, advice given or information, certificate or report
furnished or provided by the Construction Consultant to Lender or any other
person or party, and (v) Lender reserves the right in its sole and absolute
discretion to replace Construction Consultant with another construction
consultant at any time and without approval by or prior (but with subsequent)
notice to Borrower.

Section 3.5.            Subrogation
Rights of Lender.  To the extent that
proceeds of the Loan are used to pay indebtedness secured by any outstanding
Lien, security interest, charge or prior encumbrance against any Project,
Lender shall be subrogated to any and all rights, security interests and Liens
owned by any owner or holder of such outstanding Liens, security interests,
charges or encumbrances, irrespective of whether said Liens, security
interests, charges or encumbrances are released.

Section 3.6.            Retainage.

(a)           With respect to each
Project, whether before or after Substantial Completion or Final Completion of
such Project, the portion of any Retainage that relates to Work or materials
supplied by any Trade Contractor in connection with the Project will, upon
request, be disbursed to Borrower as an Advance subject to satisfaction of the
following conditions:

(i)            no Default or Event of Default has
occurred and is continuing and all other conditions to an Advance under this
Agreement are then satisfied;

(ii)           the Construction Consultant certifies
to Lender that such Trade Contractor has completed 50% (in the case of an
Advance that reduces Retainage from 10% to 5%)

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or 100% (in
the case of the last 5% of Retainage) of its obligations under the applicable
Trade Contract, including any Punchlist Items, and has supplied 50% or 100%, as
applicable, of all materials for the applicable Project in compliance with such
Trade Contract and in conformity with the Plans and Specifications;

(iii)          such Trade Contractor will be paid in
full for its work upon the release of the last 5% portion of the Retainage;

(iv)          with respect to disbursement of the
last 5% of Retainage, such Trade Contractor executes and delivers such final
receipts for such Trade Contract that may be reasonably requested or required
by Lender;  and

(v)           the Architect shall have approved the
Work (other than Work consisting of the delivery of FF&E not ordinarily the
subject of Architect approval) completed by such Trade Contractor, as certified
in writing by such Architect to Lender.

(b)           Lenders shall not
withhold any Retainage with respect to (i) materials delivered under a
materials only contract; (ii) deposits for Personal Property; (iii) for the “general
conditions” line item in the Project Budget

Section 3.7.            Direct
Advances.

(a)           At Lender’s option,
during the existence of an Event of Default, Lender may make any or all
Advances directly to any of the Trade Contractors for Project Costs which shall
theretofore have been approved by Lender and for which Borrower shall have
failed to make payment and the execution of this Agreement by Borrower shall,
and hereby does, constitute an irrevocable authorization to so advance the
proceeds of the Future Funding directly to the Trade Contractors.  No further authorization from Borrower shall
be necessary and all such Advances shall satisfy the obligations of Lender
hereunder with respect to such Advance and shall be secured by the Security
Instrument as fully as if made directly to Borrower.

(b)           At Lender’s option,
during the existence of an Event of Default, Lender may make Advances of
portions of the proceeds of the Future Funding (i) to any Person to which
Lender in good faith determines payment is due and (ii) in payment of interest
hereunder (if no funds are maintained in the Interest Reserve Account and such
interest is not paid by Borrower when due), and such portion of the Future
Funding shall be deemed disbursed as of the date on which such disbursement is
made.  The execution of this Agreement by
Borrower shall, and hereby does, constitute an irrevocable authorization to so
advance the proceeds of the Future Funding. 
No further authorization from Borrower shall be necessary and all such
Advances shall satisfy the obligations of Lender hereunder with respect to such
Advance and shall be secured by the Security Instrument as fully as if made
directly to Borrower.

(c)           Borrower shall have
the right to contest the validity or application of any of the costs described
in Section 3.7(a) and Section 3.7(b) by appropriate legal
proceedings, so long as the following shall remain satisfied:

(i)            such legal proceedings shall be
prosecuted with diligence by Borrower and shall operate to prevent any taking
or closing or shutting down of the applicable Project,

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the Property
or any portion thereof, by any Governmental Authority or any other Person and
has the effect of staying any type of sale or forfeiture of the applicable
Project, the Property or any part thereof for failure to comply;

(ii)           Borrower will have deposited with
Lender cash collateral, a bond or such other security reasonably satisfactory
to Lender, in each case, on such terms as may be satisfactory to Lender, in its
reasonable discretion, in an amount as may be reasonably deemed necessary by
Lender, sufficient to pay any fines, penalties, charges and interest thereon
which may be awarded or assessed and which may become a Lien upon the Property
or any part thereof which may in any way take priority over the Lien of the
Security Instrument, and subject to increase at the request of Lender when it
determines a greater amount may be required to make such payments;

(iii)          such proceeding shall not subject
Lender or Borrower to any risk of any criminal liability;

(iv)          Borrower shall keep Lender informed on
a current basis as to the status and progress of any such proceeding; and

(v)           Borrower will, upon a final
determination of such contest, take all steps necessary to comply with any
requirements arising therefrom.

If Borrower shall fail at any time to comply with the
above conditions to contest or the applicable Project, the Property or any part
thereof is, in the reasonable judgment of Lender, in any imminent danger of
being forfeited or lost or the value of the Property being adversely impacted,
Lender may require Borrower to, and Borrower will, thereupon make the payment
which is the subject of the contest.

Section 3.8.            Partial
Advances.  If any or all conditions
precedent to making an Advance have not been satisfied (or waived by Lender in
its sole discretion) on or before the applicable Advance Date, without waiving
any of its rights or remedies hereunder, Lender in its sole discretion may
disburse that portion, if any, of the requested Advance for which all of the
conditions precedent have been satisfied.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

Section 4.1.            Borrower
Party and Property Representations. 
Borrower represents and warrants as of the Closing Date as follows:

4.1.1.       Organization.  Each Borrower Party has been duly organized
and is validly existing and in good standing with requisite power and authority
to own its properties and to transact the businesses in which it is now
engaged.  Each Borrower Party is duly
qualified to do business and is in good standing in each jurisdiction where it
is required to be so qualified in connection with its properties, businesses
and operations.  Each Borrower possesses
all rights, licenses, permits and authorizations, governmental or otherwise,
necessary to entitle it to own its properties and to transact the businesses in
which it is now engaged.  The sole
business of each Borrower is the direct or indirect ownership, management and
operation of the Property.

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Attached hereto as Schedule I is a true, correct and complete
chart showing the direct ownership interests in each Borrower Party and
identifying the respective direct or indirect interests held by each Sponsor.

4.1.2.       Proceedings.  Each Borrower Party has taken all necessary
action to authorize the execution, delivery and performance of this Agreement
and the other Loan Documents to which it is a party.  This Agreement and such other Loan Documents
have been duly executed and delivered by or on behalf of each Borrower Party
that is a party thereto and constitute legal, valid and binding obligations of
each Borrower Party enforceable against each Borrower Party in accordance with
their respective terms, subject only to applicable bankruptcy, insolvency and
similar laws affecting rights of creditors generally, and subject, as to
enforceability, to general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law).

4.1.3.       No
Conflicts.  The execution, delivery
and performance of this Agreement and the other Loan Documents by each Borrower
Party will not conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under, or result in the creation or
imposition of any lien, charge or encumbrance (other than pursuant to the Loan
Documents) upon any of the property or assets of each Borrower Party pursuant
to the terms of any indenture, mortgage, deed of trust, loan agreement,
partnership agreement, management agreement or other agreement or instrument to
which each Borrower Party is a party or by which any of each Borrower Party’s
property or assets is subject, nor will such action result in any violation of
the provisions of any statute or any order, rule or regulation of any
Governmental Authority having jurisdiction over each Borrower Party or any of
each Borrower Party’s properties or assets, and any consent, approval, authorization,
order, registration or qualification of or with any such Governmental Authority
required for the execution, delivery and performance by each Borrower Party of
this Agreement or any other Loan Documents has been obtained and is in full
force and effect.

4.1.4.       Litigation.  There are no actions, suits or proceedings at
law or in equity by or before any Governmental Authority or other agency now
pending or, to Borrower’s knowledge, threatened against or affecting any
Borrower Party, their respective Affiliates, or the Property, which actions,
suits or proceedings, if determined against such Borrower Party, are reasonably
likely to have a Material Adverse Effect.

4.1.5.       Agreements.  No Borrower Party is a party to any agreement
or instrument which is reasonably likely to have a Material Adverse
Effect.  No Borrower Party is in default
in any material respect in the performance, observance or fulfillment of any of
the obligations, covenants or conditions contained in any agreement or
instrument to which it is a party or by which any Borrower Party or any
Property is bound which is reasonably likely to have a Material Adverse
Effect.  Neither Borrower nor any
subsidiary thereof has a material financial obligation under any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which it is a party or by which it or any Property is otherwise bound, other
than Permitted Indebtedness.

4.1.6.       Title.  Borrower has good, marketable and insurable
fee simple or leasehold title to the real property comprising part of the
Property and good title to the balance of the Property, free and clear of all
Liens whatsoever except the Permitted Encumbrances.  The Permitted

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Encumbrances in the aggregate do not materially and adversely affect
the value, operation or use of the Property (as currently used) or Borrower’s
ability to repay the Loan.  The Security
Instrument, when properly recorded in the appropriate records, together with
any Uniform Commercial Code financing statements required to be filed in
connection therewith, will create (a) a valid, perfected first priority
lien on the Property, subject only to Permitted Encumbrances and the Liens
created by the Loan Documents and (b) perfected security interests in and
to, and perfected collateral assignments of, all personalty (including the
Leases), all in accordance with the terms 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 or may become a Lien prior to, or of equal priority
with, the Liens created by the Loan Documents.

4.1.7.       Solvency.  Borrower has (a) not entered into the
transaction or executed the Note, this Agreement or any other Loan Documents
with the actual intent to hinder, delay or defraud any creditor and
(b) received reasonably equivalent value in exchange for its obligations
under such Loan Documents.  The fair
saleable value of each Borrower’s assets exceeds and will, immediately
following the making of the Loan, exceed Borrower’s total liabilities,
including, without limitation, subordinated, unliquidated, disputed and
contingent liabilities.  The fair
saleable value of Borrower’s assets is and will, immediately following the
making of the Loan, be greater than Borrower’s probable liabilities, including
the maximum amount of its contingent liabilities on its debts as such debts
become absolute and matured.  Borrower’s
assets do not and, immediately following the making of the Loan will not,
constitute unreasonably small capital to carry out its business as conducted or
as proposed to be conducted.  Borrower
does not intend to, and does not believe that it will, incur debt and
liabilities (including contingent liabilities and other commitments) beyond its
ability to pay such debt and liabilities as they mature (taking into account
the timing and amounts of cash to be received by Borrower and the amounts to be
payable on or in respect of obligations of Borrower).  No petition in bankruptcy has been filed against
Borrower or any constituent Person, and neither Borrower nor any constituent
Person has ever made an assignment for the benefit of creditors or taken
advantage of any insolvency act for the benefit of debtors.  Neither Borrower nor any of its constituent
Persons are contemplating either the filing of a petition by it under any state
or federal bankruptcy or insolvency laws or the liquidation of all or a major
portion of Borrower’s assets or properties, and Borrower has no knowledge of
any Person contemplating the filing of any such petition against it or such
constituent Persons.

4.1.8.       Full
and Accurate Disclosure.  No
statement of fact made by any Borrower Party in this Agreement or in any of the
other Loan Documents contains any untrue statement of a material fact or omits
to state any material fact necessary to make statements contained herein or
therein not misleading.  There is no
material fact presently known to any Borrower Party which has not been disclosed
to Lender which adversely affects, nor as far as Borrower can foresee, is
reasonably likely to adversely affect, the Property or the business, operations
or condition (financial or otherwise) of any Borrower Party.

4.1.9.       ERISA
Matters.

(a)           No Reportable Event
or “accumulated funding deficiency” (within the meaning of Section 412 of the
Code or Section 302 of ERISA) has occurred or is continuing with respect to any
Pension Plan.

 

 101

(b)           No prohibited
transaction (within the meaning of Section 406 of ERISA or Section 4975 of the
Code) has occurred with respect to any Plan.

(c)           Except as set forth
on Schedule XI-A, neither Borrower nor any ERISA Affiliate is now, or has been
during the preceding five years, obligated to contribute to a Pension Plan or a
Multiemployer Plan.  Any contributions
required to have been made by Borrower or any ERISA Affiliate to any
Multiemployer Plan have been made on or before the due date thereof.  None of Borrower nor any ERISA Affiliate has
(a) ceased operations at a facility so as to become subject to the provisions
of Section 4062(e) of ERISA, (b) withdrawn as a substantial employer so as to
become subject to the provisions of Section 4063 of ERISA, (c) ceased making
contributions to any Pension Plan subject to the provisions of Section 4064(a)
of ERISA to which Borrower or any ERISA Affiliate made contributions, (d)
incurred or caused to occur a “complete withdrawal” (within the meaning of
Section 4203 of ERISA) or a “partial withdrawal” (within the meaning of Section
4205 of ERISA) from a Multiemployer Plan so as to incur withdrawal liability
under Section 4201 of ERISA (without regard to subsequent reduction or waiver
of such liability under Section 4207 or 4208 of ERISA), (e) contributed to or
been obligated to contribute to a Multiemployer Plan that is “insolvent” or in “reorganization”
(as these terms are defined in Title IV of ERISA), or (f) been a party to any
transaction or agreement during the preceding five years under which the
provisions of Section 4204 were applicable.

(d)           There are no
actions, suits or claims pending (other than routine claims for benefits) or
which could reasonably be expected to be asserted, against any Plan or the
assets of any such Plan.  No civil or
criminal action brought pursuant to the provisions of Title I,
Subtitle B, Part 5 of ERISA is pending or threatened against any Plan or
against any fiduciary of any Plan.  None
of the Plans or any fiduciary thereof (in its capacity as such), has been the
direct or indirect subject of any audit, investigation or examination by any
governmental or quasi-governmental agency.

(e)           Except as set forth
on Schedule XI, all of the Plans comply currently, and have complied in
the past, both as to form and operation, in all material respects with their
terms and with the provisions of ERISA and the Code, and all other applicable
laws, rules and regulations (including, without limitation, having made all
required contributions thereto by the due date thereof); all necessary
governmental approvals for the Plans have been obtained; and a favorable
determination as to the qualification under Section 401(a) of the Code of each
of the Plans has been made by the Internal Revenue Service and nothing has
occurred since the date of such determination or recognition letter that would
adversely affect such qualification.

(f)            Any group health
plan (as defined in Section 5000(b)(1) of the Code) maintained by Borrower is
and has been in substantial compliance with the continuation coverage
requirements of Section 4980B(f) of the Code and Part 6 of Subtitle B of
Title I of its Affiliates.  Neither
Borrower nor any of its Affiliates provides medical or life benefits or any
other welfare benefits to retirees or other former employees other than as
required by statute.

(g)           There is no material
unfunded liability under any Plan.

(h)           Borrower is not an “employee
benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of
ERISA, and none of the assets of Borrower constitutes or will constitute 

 102
 

“plan assets”
of one or more such plans within the meaning of 29 C.F.R. Section 2510.3
101.  In addition, (a) Borrower is not a “governmental
plan” within the meaning of Section 3(32) of ERISA and (b) to Borrower’s
knowledge, transactions by or with Borrower are not in violation of any state
statute regulating investments of, or fiduciary obligations with respect to,
governmental plans similar to the provisions of Section 406 of ERISA or Section
4975 of the Code currently in effect, which prohibit or otherwise restrict the
transactions contemplated by this Loan Agreement.

4.1.10.     Compliance.  Each Borrower Party and the Property
(including the use thereof) comply in all material respects with all applicable
Legal Requirements, including, without limitation, building and zoning
ordinances and codes and Prescribed Laws. 
No Borrower Party is in default or violation of any order, writ,
injunction, decree or demand of any Governmental Authority.  There has not been committed by any Borrower
Party or, to Borrower’s knowledge, any other Person in occupancy of or involved
with the operation or use of the Property any act or omission affording the
federal government or any other Governmental Authority the right of forfeiture
as against the Property or any part thereof or any monies paid in performance
of any Borrower Party’s obligations under any of the Loan Documents.

4.1.11.     Financial
Information.  All financial data,
including, without limitation, the statements of cash flow and income and
operating expense, that have been delivered to Lender in connection with the
Loan (i) are true, complete and correct in all material respects,
(ii) accurately represent the financial condition of the Property as of
the date of such reports in all material respects, and (iii) to the extent
prepared or audited by an independent certified public accounting firm, have
been prepared in accordance with GAAP throughout the periods covered, except as
disclosed therein.  Except for Permitted
Encumbrances, Borrower does not have any contingent liabilities, liabilities
for taxes, unusual forward or long-term commitments or unrealized or
anticipated losses from any unfavorable commitments that are known to Borrower
and reasonably likely to have a Materially Adverse Effect, except as referred
to or reflected in said financial statements. 
Since the date of such financial statements, there has been no material
adverse change in the financial condition, operation or business of any
Borrower Party from that set forth in said financial statements.

4.1.12.     Condemnation.  No Condemnation or other similar proceeding
has been commenced or, to Borrower’s best knowledge, is threatened or
contemplated with respect to all or any portion of the Property or for the relocation
of roadways providing access to the Property.

4.1.13.     Federal
Reserve Regulations.  No part of the
proceeds of the Loan will be used for the purpose of purchasing or acquiring
any “margin stock” within the meaning of Regulation U of the Board of Governors
of the Federal Reserve System or for any other purpose which would be
inconsistent with such Regulation U or any other Regulations of such Board of
Governors, or for any purposes prohibited by Legal Requirements or by the terms
and conditions of this Agreement or the other Loan Documents.

4.1.14.     Utilities
and Public Access.  The Property has
rights of access to public ways and is served by water, sewer, sanitary sewer
and storm drain facilities adequate to service the Property for its intended
uses.  All public utilities necessary or
convenient to the full use and enjoyment of the Property are located either in
the public right-of-way abutting the Property

 103
 

(which are connected so as to serve the Property without passing over
other property) or in recorded easements serving the Property and such
easements are set forth in and insured by the Title Insurance Policy.  All roads necessary for the use of the
Property for its current purpose have been completed and dedicated to public
use and accepted by all Governmental Authorities.

4.1.15.     Not
a Foreign Person.  Borrower is not a “foreign
person” within the meaning of §1445(f)(3) of the Code.

4.1.16.     Separate
Lots.  The Property is comprised of
one (1) or more parcels which constitute a separate tax lot or lots and
does not constitute a portion of any other tax lot not a part of the Property.

4.1.17.     Assessments.  There are no pending or proposed special or
other assessments for public improvements or otherwise affecting the Property,
nor are there any contemplated improvements to the Property that may result in
such special or other assessments.

4.1.18.     Enforceability.  The Loan Documents are not subject to any
right of rescission, set-off, counterclaim or defense by any Borrower
Party, including the defense of usury, nor would the operation of any of the
terms of the Loan Documents, or the exercise of any right thereunder, render
the Loan Documents unenforceable (subject to principles of equity and
bankruptcy, insolvency and other laws generally affecting creditors’ rights and
the enforcement of debtors’ obligations), and no Borrower Party has asserted
any right of rescission, set-off, counterclaim or defense with respect
thereto.

4.1.19.     Insurance.  Borrower has obtained and has delivered to
Lender certificates of insurance with respect to all Policies reflecting the
insurance coverages, amounts and other requirements set forth in this
Agreement.  No claims have been made
under any such Policies, and no Person, including Borrower, has done, by act or
omission, anything which would impair the coverage of any such Policies.

4.1.20.     Use
of Property.  The Property is used
exclusively as a hotel and casino resort and other appurtenant and related
uses.

4.1.21.     Gaming
Licenses and Operating Permits.

(a)           Schedule VII
contains a correct and complete list of all Gaming Licenses and other material
licenses, certification and permits for the Property (and the holder thereof).

(b)           Except as set forth
on Schedule VII, Borrower possesses all licenses, permits, franchises, authorizations,
certificates, approvals and consents, including, without limitation, all
certificates of occupancy, all environmental, liquor, Gaming Licenses, health
and safety licenses of all Governmental Authorities which are material to the
conduct of their business and the ownership, use, occupation and operation of
the Property (collectively, “Operating Permits”), each such Operating
Permit is and will be in full force and effect, Borrower and each of its
Affiliates are in compliance in all material respects with all such Operating
Permits, and no event (including, without limitation, any material violation of
any law, rule or regulation) has occurred which would be reasonably likely to
lead to the revocation or termination of any such Operating Permit or the
imposition of any restriction thereon.

 104
 

(c)           Borrower and each of
its Affiliates possesses all Gaming Licenses which are material to the conduct
of their business and the ownership, use, occupation and operation of the
Property.  Further, Borrower hereby
represents and warrants as follows:

(i)            each such Gaming License is in full
force and effect, Borrower and each of its Affiliates, respective directors,
members, managers, officers, key personnel and Persons holding a five percent
(5%) or greater equity or economic interest directly or indirectly in Borrower
is in compliance in all material respects with all such Gaming Licenses, and no
event (including, without limitation, any material violation of any law, rule
or regulation) has occurred which would be reasonably likely to lead to the
revocation or termination of any such Gaming Licenses or the imposition of any
restriction thereon;

(ii)           Borrower has no reason to believe it
will not be able to maintain in effect all Gaming Licenses necessary for the
lawful conduct of its business or operations wherever now conducted and as
planned to be conducted, including the ownership and operation of the Casino
Component, pursuant to all applicable laws and requirements of Governmental
Authorities having jurisdiction over Borrower or over any part of its
operations;

(iii)          all such Gaming Licenses are in full
force and effect and have not been amended or otherwise modified, rescinded,
revoked or assigned;

(iv)          Borrower is not in default in any
material respect under, or in violation in any material respect of, any such
Gaming License (and no event has occurred, and no condition exists, which, with
the giving of notice or passage of time or both, would constitute a default
thereunder or violation thereof that has caused or would reasonably be expected
to cause the loss of any such Gaming License;

(v)           Borrower has not received any notice
of any violation of applicable laws which has caused or would reasonably be
expected to cause any such Gaming License to be modified, rescinded or revoked;

(vi)          no condition exists or event has
occurred which would reasonably be expected to result in the suspension,
revocation, impairment, forfeiture or non-renewal of any such Gaming License;
and

(vii)         the continuation, validity and effectiveness
of all such Gaming Licenses will be not adversely affected by the transactions
contemplated by this Agreement.

(d)           There is no
proceeding, investigation, or disciplinary action (including, without
limitation before any Gaming Authority, under any Gaming Law or under any
Gaming License or other Operating Permit) pending or, to Borrower’s knowledge,
threatened against any of Borrowers or their respective directors, members,
managers, officers, key personnel or Persons holding a five percent (5%) or
greater direct or indirect equity or economic interest in Borrower.

(e)           There is no
proceeding (including, without limitation, before any gaming authority, under
any Gaming Law or under any Gaming License or other Operating Permit)

 105
 

pending or, to
Borrower’s knowledge, threatened either (a) in connection with, or that seeks
to restrain, enjoin, prevent the consummation of or otherwise challenge, any of
the loan documents or any of the transactions contemplated therein, or (b)
that, either singly or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

(f)            Neither the
execution, delivery or performance of any of the Loan Documents will allow or
result in the imposition of any material penalty under, or the revocation or
termination of, any Gaming License or any material impairment of the rights of
the holder of any Gaming License.

4.1.22.     Flood
Zone.  None of the Improvements on
the Property are located in an area as identified by the Federal Emergency
Management Agency as an area having special flood hazards or, if so located,
the flood insurance required pursuant to Section 6.1(a)(i) is in
full force and effect with respect to the Property.

4.1.23.     Physical
Condition.  The Property, including,
without limitation, all buildings, improvements, parking facilities, sidewalks,
storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection
systems, electrical systems, equipment, elevators, exterior sidings and doors,
landscaping, irrigation systems and all structural components, are in good
condition, order and repair in all material respects; there exists no
structural or other material defects or damages in the Property, whether latent
or otherwise, and Borrower has not received notice from any insurance company
or bonding company of any defects or inadequacies in the Property, or any part
thereof, which would adversely affect the insurability of the same or cause the
imposition of extraordinary premiums or charges thereon or of any termination
or threatened termination of any policy of insurance or bond.

4.1.24.     Boundaries.  All of the improvements which were included
in determining the appraised value of the Property lie wholly within the
boundaries and building restriction lines of the Property, and no improvements
on adjoining properties encroach upon the Property, and no easements or other
encumbrances upon the Property encroach upon any of the improvements, so as to
affect the value or marketability of the Property except those which are
insured against by the Title Insurance Policy or otherwise set forth as “permitted
exceptions” in the Title Insurance Policy.

4.1.25.     Leases.  The Property is not subject to any Leases
other than the Leases described in Schedule III attached hereto and
made a part hereof.  Borrower is the
owner and lessor of landlord’s interest in the Leases.  No Person has any possessory interest in the
Property or right to occupy the same except under and pursuant to the
provisions of the Leases.  The current
Leases are in full force and effect, there are no defaults by Borrower
thereunder and, to Borrower’s knowledge, there are no defaults thereunder by
any other party and there are no conditions that, with the passage of time or
the giving of notice, or both, would constitute defaults thereunder.  No Rent has been paid more than one (1) month
in advance of its due date.  Except as
set forth on Schedule III, all work to be performed by Borrower under
each Lease has been performed as required and has been accepted by the
applicable tenant, and any payments, free rent, partial rent, rebate of rent or
other payments, credits, allowances or abatements required to be given by
Borrower to any tenant has already been received by such tenant.  There has been no prior sale, transfer or
assignment, hypothecation or pledge of any Lease or of the

 106
 

Rents received therein which is still in effect.  To Borrower’s knowledge and except as set
forth on Schedule III, no tenant listed on Schedule III has
assigned its Lease or sublet all or any portion of the premises demised
thereby, no such tenant holds its leased premises under assignment or sublease,
nor does anyone except such tenant and its employees occupy such leased
premises.  No tenant under any Lease has
a right or option pursuant to such Lease or otherwise to purchase all or any
part of the leased premises or the building of which the leased premises are a
part.  Except as set forth on Schedule
III, no tenant under any Lease has any right or option for additional space
in the Improvements.

4.1.26.     Survey.  The Survey for the Property delivered to
Lender in connection with this Agreement has been prepared in accordance with
the provisions of Section 3.1.3(c) and, to Borrower’s knowledge,
does not fail to reflect any material matter affecting the Property or the
title thereto.

4.1.27.     Principal
Place of Business; State of Organization. 
Borrower’s principal place of business as of the date hereof is the
address set forth in the introductory paragraph of this Agreement.  OpBiz is organized under the laws of the
State of Nevada and Fee Owner is organized under the laws of the State of
Delaware.

4.1.28.     Filing
and Recording Taxes.  All transfer
taxes, deed stamps, intangible taxes or other amounts in the nature of transfer
taxes required to be paid by any Person under applicable Legal Requirements
currently in effect in connection with the transfer of the Property to Borrower
have been paid.  All mortgage, mortgage
recording, stamp, intangible or other similar tax required to be paid by any
Person under applicable Legal Requirements currently in effect in connection
with the execution, delivery, recordation, filing, registration, perfection or
enforcement of any of the Loan Documents, including, without limitation, the
Security Instrument, have been paid, and, under current Legal Requirements,
each Security Instrument is enforceable in accordance with its respective terms
by Lender (or any subsequent holder thereof), subject to principles of equity
and bankruptcy, insolvency and other laws generally applicable to creditors’ rights
and the enforcement of debtors’ obligations.

4.1.29.     Special
Purpose Entity/Separateness.

(a)           Until the Debt has
been paid in full, Borrower hereby represents, warrants and covenants that each
SPE Entity has been since its formation, is, shall be and shall continue to be
a Special Purpose Entity.

(b)           All of the facts
stated and the assumptions made in the Insolvency Opinion, including, but not
limited to, any exhibits attached thereto, are true and correct in all respects
and all facts stated and all assumptions made in any subsequent
non-consolidation opinion required to be delivered in connection with the Loan
Documents (an “Additional Insolvency
Opinion”), including, but not limited to, any exhibits
attached thereto, will have been and shall be true and correct in all
respects.  Each SPE Entity has complied
and will comply with all of the assumptions made with respect to such SPE
Entity in the Insolvency Opinion.  Each
SPE Entity will have complied and will comply with all of the assumptions made
with respect to such SPE Entity in any Additional Insolvency Opinion.  Each entity other than any SPE Entity with
respect to which an assumption shall be made in any Additional Insolvency
Opinion will have complied 

 107
 

and will
comply with all of the assumptions made with respect to it in any Additional
Insolvency Opinion.

(c)           Borrower hereby
represents with respect to each of OpBiz and MezzCo that such SPE Entity:

(i)            is and always has been duly formed,
validly existing, and in good standing in the state of its formation and in all
other jurisdictions where it is qualified to do business;

(ii)           has no judgments or liens of any
nature against it except for tax liens not yet due;

(iii)          is in compliance with all laws,
regulations, and orders applicable to it and, except as otherwise disclosed in
this Agreement, has received all permits necessary for it to operate;

(iv)          is not involved in any dispute with
any taxing authority;

(v)           has paid all taxes which it owes;

(vi)          has never owned any real property
other than, with respect to OpBiz, the Property and has never engaged in any
business other than the direct or indirect ownership and operation of the
Property;

(vii)         is not now, nor has ever been, party to
any lawsuit, arbitration, summons, or legal proceeding that resulted in a
judgment against it that has not been paid in full; and

(viii)        has no material contingent or actual
obligations not related to the Property.

4.1.30.     Management
Agreement.  The Management Agreement
is in full force and effect and there is no default thereunder by Borrower or,
to Borrower’s knowledge, any other party thereto and no event has occurred
that, with the passage of time and/or the giving of notice would constitute a
default by Borrower or, to Borrower’s knowledge, any other party thereunder.

4.1.31.     Illegal
Activity.  No portion of the Property
has been or will be purchased with proceeds of any illegal activity.

4.1.32.     No
Change in Facts or Circumstances; Disclosure.  All information submitted by, or on behalf
of, any Borrower Party to Lender and in all financial statements, rent rolls,
reports, certificates and other documents submitted by, or on behalf of, any
Borrower Party to Lender in connection with the Loan or in satisfaction of the
terms thereof and all statements of fact made by any Borrower Party in this
Agreement or in any other Loan Document, are accurate, complete and correct in
all material respects.  There has been no
material adverse change in any condition, fact, circumstance or event that
would make any such information inaccurate, incomplete or otherwise misleading
in any material respect or that otherwise could reasonably be expected to
result in a Material Adverse Effect. 
Borrower has disclosed to Lender all material facts and has

 108
 

not failed to disclose any material fact that could cause any Provided
Information or representation or warranty made herein to be materially
misleading.

4.1.33.     Investment
Company Act.  Borrower is not
(a) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended;
(b) a “holding company” or a “subsidiary company” of a “holding company”
or an “affiliate” of either a “holding company” or a “subsidiary company”
within the meaning of the Public Utility Holding Company Act of 1935, as
amended; or (c) subject to any other federal or state law or regulation
which purports to restrict or regulate its ability to borrow money.

4.1.34.     Embargoed
Person.  At all times throughout the
term of the Loan, including after giving effect to any Transfers permitted
pursuant to the Loan Documents, (a) none of the funds or other assets of
any Borrower Party constitute property of, or are beneficially owned, directly
or indirectly, by any person, entity or government subject to trade
restrictions under U.S. law, including, but not limited to, the International
Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with
the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or
regulations promulgated thereunder with the result that the investment in any
Borrower Party (whether directly or indirectly), is prohibited by law or the
Loan made by Lender is in violation of law (“Embargoed Person”);
(b) no Embargoed Person has any interest of any nature whatsoever in any
such Borrower Party, with the result that the investment in such Borrower Party
(whether directly or indirectly), is prohibited by law or the Loan is in
violation of law; and (c) none of the funds of any Borrower Party have
been derived from any unlawful activity with the result that the investment in
such Borrower Party (whether directly or indirectly), is prohibited by law or
the Loan is in violation of law.

4.1.35.     Cash
Management Account.

(a)           This Agreement,
together with the other Loan Documents, creates a valid and continuing security
interest (as defined in the Uniform Commercial Code of the State of New York)
in the Collection Account and Cash Management Account in favor of Lender, which
security interest is prior to all other Liens, other than Permitted
Encumbrances, and is enforceable as such against creditors of and purchasers
from Borrower.  Other than in connection
with the Loan Documents and except for Permitted Encumbrances, Borrower has not
sold or otherwise conveyed the Collection Account and Cash Management
Account.  Each of the Collection Account
and Cash Management Account constitute “deposit accounts” within the meaning of
the Uniform Commercial Code of the State of New York.

(b)           Pursuant and subject
to the terms hereof and the other applicable Loan Documents, the Property Bank
has agreed to comply with all instructions originated by Lender, without
further consent by Borrower, directing disposition of the Collection Account
and all sums at any time held, deposited or invested therein, together with any
interest or other earnings thereon, and all proceeds thereof (including
proceeds of sales and other dispositions), whether accounts, general
intangibles, chattel paper, deposit accounts, instruments, documents or
securities.

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(c)           The Collection
Account and Cash Management Account are not in the name of any Person other
than Borrower, as pledgor, or Lender, as pledgee.

4.1.36.     Mortgage
Taxes.  Borrower has paid all state,
county and municipal recording and all other taxes imposed upon the execution
and recordation of the Security Instrument.

4.1.37.     Taxes
including Gaming Taxes and Fees. 
Borrower and each of its Affiliates have filed or caused to be filed all
Federal, state, local and foreign tax returns (including, without limitation,
all reports relating to gaming taxes and fees to the Gaming Authorities) which
are required to be filed by them, on or prior to the date hereof, other than
tax returns in respect of taxes that (i) are not franchise, capital or income
taxes, (ii) in the aggregate are not material and (iii) would not, if unpaid,
result in the imposition of any material Lien on any property or assets of
Borrower or any of its Affiliates.  All
such filed tax returns were true, correct and complete when filed.  Borrower and its Affiliates have paid or
caused to be paid all taxes shown to be due and payable on such filed returns
or on any assessments received by them, other than any taxes or assessments the
validity of which Borrower or such Affiliate is contesting in good faith by appropriate
proceedings, and with respect to which Borrower or such Affiliates shall have
set aside adequate reserves.  Neither
Borrower nor any of its Affiliates has as of the date hereof requested or been
granted any extension of time to file any Federal, state, local or foreign tax
return.  Neither Borrower nor any of its
Affiliates is party to or has any obligation under any tax sharing agreement.

4.1.38.     Labor
Relations.

(a)           On or prior to the
date hereof, Borrower has delivered to Lender a true, correct and complete
schedule of all employees employed by Borrower with respect to the Property,
stating each such employees job title, hourly wage, whether such employee is
employed on a full-time or part-time basis and whether such employee is a union
employee. The hours worked by and payment made to employees of Borrower are not
in violation of the Fair Labor Standards Act or any other applicable Legal
Requirements in any material respect. 
Neither Borrower nor any of its employees, agents or representatives
have committed any material unfair labor practice as defined in the National
Labor Relations Act.

(b)           Borrower is and has
been in material compliance with all applicable Legal Requirements respecting
employment and employment practices, including without limitation, all laws
respecting terms and conditions of employment, health and safety, wages and
hours, child labor, immigration, employment discrimination, disability rights
or benefits, equal opportunity, plant closure and layoffs, affirmative action, workers’
compensation, labor relations, employee leave issues and unemployment
insurance.  Borrower is not delinquent,
in accordance with their respective payment policies, in payments to any
employees or former employees for any services or amounts legally or
contractually required to be reimbursed or otherwise paid.  Borrower is not a party to, or otherwise
bound by, any order solely binding against Borrower and/or its Affiliates
relating to employees or employment practices.

(c)           Schedule XII
sets forth all collective bargaining agreements to which Borrower or any of the
Affiliates as a party and the scheduled expiration dates thereof, and the
consummation 

 110
 

of the
terminations contemplated by this Agreement will not give rise to any right of
termination or renegotiation thereunder.

(d)           No organized work
stoppage, labor strike or slowdown is pending or, to Borrower’s knowledge,
threatened by employees and other laborers at the Property.  Neither Borrower nor any of its Affiliates
(i) is involved in, or to Borrower’s knowledge threatened with any labor
dispute, grievance or litigation at the Property relating to labor matters
involving any employees and other laborers at any property, including violation
of any Legal Requirements relating to labor, safety, wages and hours, tax
withholding, overtime, written classification or employment and/or charges of
unfair labor practices or discrimination complaints at the Property or (ii) has
engaged in any unfair labor practices prohibited, restricted or otherwise unlawful
under applicable Legal Requirements. 
Except as set forth on Schedule XII, to the knowledge of
Borrower, there is no organization activity regarding employees or other
laborers of the Property and no question of union representation of such
employees or other laborers currently exists.

(e)           The execution of
this Agreement and the consummation of the transactions contemplated by this
Agreement will not result in any breach or other violation of any collective
bargaining agreement, employment agreement, consulting agreement, or any other
labor-related agreement to which Borrower is a party and/or is bound by and/or
that pertains to any of the Borrower’s employees.

4.1.39.     Intellectual
Property Collateral.  Schedule IV
correctly set forth all registered Copyrights, Patents, Trademarks and Domain
Names owned by Borrower as of the date hereof. 
Borrower owns or possesses the valid right to use all such Copyrights,
Patents, Trademarks and Domain Names; all registrations therefor have been
validly issued under applicable law and are in full force and effect; all
applicable material maintenance fees, affidavits and other filings or payments
are current and shall remain current throughout the duration of this Agreement;
no claim has been made in writing or, to the knowledge of Borrower, orally,
that any of such Copyrights, Patents, Trademarks and Domain Names is invalid or
unenforceable or that the use or practice of such Copyrights, Patents,
Trademarks and Domain Names violates or infringes the rights of any other person,
and to the knowledge of Borrower there is no such violation or infringement in
existence, and no other person is presently infringing upon the rights of
Borrower with regard to any such Copyrights, Patents, Trademarks and Domain
Names.

4.1.40.     Material
Operating Agreements.

(a)           Attached hereto as Schedule
VI is a true, correct and complete list of all Material Operating
Agreements in effect on the date hereof, including any and all amendments,
supplements and other modifications thereto.

(b)           Prior to the date
hereof, Borrower has caused to be delivered to Lender a true, correct and
complete copy of each Material Operating Agreement.  As of the date hereof, no events or
circumstances exist which, with or without the giving of notice, the passage of
time or both, would be reasonably likely to constitute a default by Borrower
(or its Affiliates) or, to Borrower’s knowledge, any other party of any
material covenant or obligation on the part of any party under any Material
Operating Agreement.

 111
 

(c)           Each Material
Operating Agreement is in full force and effect and constitutes the legal,
valid, binding and enforceable obligation against the Borrower Party that is a
party thereto and, to Borrower’s actual knowledge, any counterparty thereto, in
all material respects, subject in each case to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws and
regulations of general applicability relating to or affecting creditors’ rights
and to equitable principles of general application.

(d)           Neither the
execution and delivery of the Loan Documents, the performance of any Borrower
Party thereunder, the recordation of the Security Instrument or other Loan
Documents, nor the exercise of any rights or remedies by Lender, will adversely
affect any Borrower Party’s respective rights or remedies under any Material
Operating Agreement.

4.1.41.     Current
Lenders.  No Guarantor or Affiliate
of Guarantor or Borrower has a direct or indirect interest in any existing
Indebtedness of Borrower, MezzCo, EquityCo or any Affiliate of the foregoing
which will be repaid (directly or indirectly) with any proceeds of the Loan and
no Guarantor or Affiliate of Guarantor or Borrower will receive (directly or
indirectly) any portion of such proceeds of the Loan in connection with the
repayment of any such Indebtedness of Borrower, MezzCo, EquityCo or any
Affiliate of the foregoing.

Section 4.2.            Survival
of Representations.  Borrower agrees
that all of the representations and warranties of Borrower set forth in Section 4.1
and elsewhere in this Agreement and in the other Loan Documents shall survive
for so long as any amount remains owing to Lender under this Agreement or any
of the other Loan Documents by Borrower. 
All representations, warranties, covenants and agreements made in this
Agreement or in the other Loan Documents by any Borrower Party shall be deemed
to have been relied upon by Lender notwithstanding any investigation heretofore
or hereafter made by Lender or on its behalf.

Section 4.3.            Status
of Borrower.  All representations and
warranties made by Borrower in this Agreement shall, (i) with respect to OpBiz,
be construed as a representation or warranty made by OpBiz solely with respect
to itself in its capacity as a Borrower hereunder and shall not be construed as
a representation or warranty made by OpBiz with respect to Fee Owner, and (ii)
with respect to Fee Owner, be construed as a representation or warranty made by
Fee Owner solely with respect to itself in its capacity as a Borrower hereunder
and shall not be construed as a representation or warranty by Fee Owner with
respect to OpBiz; provided, however, that nothing contained in the
foregoing provisions of this Section 4.3 shall be deemed or construed to
effect the joint and several nature of the obligations and covenants of each
Borrower hereunder and under any of the other Loan Agreements to which each
Borrower is a party.

ARTICLE V.

BORROWER COVENANTS

Section 5.1.            Affirmative
Covenants.  From the date hereof and
until payment and performance in full of all obligations of Borrower under the
Loan Documents or the earlier release of the Lien of the Security Instrument
(and all related obligations) in accordance with the terms of this Agreement
and the other Loan Documents, Borrower hereby covenants and agrees with Lender
that:

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5.1.1.       Existence;
Compliance with Legal Requirements.

(a)           Each Borrower Party
shall do or cause to be done all things necessary to preserve, renew and keep
in full force and effect its existence, rights, licenses, permits and franchises
and comply with all Legal Requirements applicable to it and the Property,
including, without limitation, Prescribed Laws. 
There shall never be committed by any Borrower Party and Borrower shall
not permit any other Person in occupancy of or involved with the operation or
use of the Property to commit any act or omission affording the federal
government or any state or local government the right of forfeiture against the
Property or any part thereof or any monies paid in performance of any Borrower
Party’s obligations under any of the Loan Documents.  Borrower hereby covenants and agrees not to
commit, permit or suffer to exist any act or omission affording such right of
forfeiture.  Borrower shall at all times
maintain, preserve and protect all franchises and trade names and preserve all
the remainder of its property used or useful in the conduct of its business and
shall keep the Property in good working order and repair, and from time to time
make, or cause to be made, all reasonably necessary repairs, renewals,
replacements, betterments and improvements thereto, all as more fully provided
in the Security Instrument.  Borrower
shall keep the Property insured at all times by financially sound and reputable
insurers, to such extent and against such risks, and maintain liability and
such other insurance, as is more fully provided in this Agreement.  Borrower shall operate the Property in
accordance with the terms and provisions of the O&M Agreement in all
material respects.

(b)           After prior notice
to Lender, Borrower, at its own expense, may contest by appropriate legal
proceeding promptly initiated and conducted in good faith and with due
diligence, the validity of any Legal Requirement, the applicability of any
Legal Requirement to Borrower or the Property or any alleged violation of any
Legal Requirement, provided that (i) no Default or Event of Default has
occurred and remains uncured; (ii) Borrower is permitted to do so under
the provisions of any mortgage or deed of trust superior in lien to the
Security Instrument; (iii) such proceeding shall be permitted under and be
conducted in accordance with the provisions of any instrument to which Borrower
is subject and shall not constitute a default thereunder and such proceeding
shall be conducted in accordance with all applicable statutes, laws and
ordinances; (iv) neither the Property nor any part thereof or interest
therein will be in danger of being sold, forfeited, terminated, cancelled or
lost; (v) Borrower shall promptly upon final determination thereof comply
with any such Legal Requirement determined to be valid or applicable or cure
any violation of any Legal Requirement; (vi) such proceeding shall suspend
the enforcement of the contested Legal Requirement against Borrower and the
Property; and (vii) Borrower shall furnish such security as may be
required in the proceeding, or as may be reasonably requested by Lender, to
insure compliance with such Legal Requirement, together with all interest and
penalties payable in connection therewith. 
Lender may apply any such security, as necessary to cause compliance
with such Legal Requirement at any time when, in the reasonable judgment of
Lender, the validity, applicability or violation of such Legal Requirement is
finally established or the Property (or any part thereof or interest therein)
shall be in danger of being sold, forfeited, terminated, cancelled or lost.

 113
 

5.1.2.       Taxes
and Other Charges.

(a)           Borrower shall pay
all Taxes and Other Charges now or hereafter levied or assessed or imposed
against the Property or any part thereof as the same become due and payable; provided,
that Borrower’s obligation to directly pay Taxes shall be suspended for so long
as Borrower complies with the terms and provisions of Section 7.2.  Borrower will deliver to Lender receipts for
payment or other evidence satisfactory to Lender that the Taxes and Other
Charges have been so paid or are not then delinquent no later than ten (10)
days prior to the date on which the Taxes and/or Other Charges would otherwise
be delinquent if not paid; provided, that Borrower is not required to
furnish such receipts for payment of Taxes in the event that such Taxes have
been paid by Lender pursuant to Section 7.2.  Borrower shall not suffer and shall promptly
cause to be paid and discharged (or shall bond contest in accordance with the
terms hereof) any Lien or charge whatsoever which may be or become a Lien or
charge against the Property, and shall promptly pay for all utility services
provided to the Property.

(b)           After prior notice
to Lender, Borrower, 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
Taxes or Other Charges, provided that (a) no Default or Event of Default
has occurred and remains uncured; (b) Borrower is permitted to do so under
the provisions of any mortgage or deed of trust superior in lien to the
Security Instrument; (c) such proceeding shall be permitted under and be conducted
in accordance with the provisions of any other instrument to which Borrower is
subject and shall not constitute a default thereunder and such proceeding shall
be conducted in accordance with all applicable statutes, laws and ordinances;
(d) neither the Property nor any part thereof or interest therein will be
in danger of being sold, forfeited, terminated, cancelled or lost;
(e) Borrower shall promptly upon final determination thereof pay the
amount of any such Taxes or Other Charges, together with all costs, interest
and penalties which may be payable in connection therewith; (f) such
proceeding shall suspend the collection of such contested Taxes or Other
Charges from the Property; and (g) Borrower shall furnish such security as
may be required in the proceeding, or as may be reasonably requested by Lender,
to insure the payment of any such Taxes or Other Charges, together with all
interest and penalties thereon.  Lender
may pay over any such cash deposit or part thereof held by Lender to the
claimant entitled thereto at any time when, in the judgment of Lender, the
entitlement of such claimant is established or the Property (or part thereof or
interest therein) shall be in danger of being sold, forfeited, terminated,
cancelled or lost or there shall be any danger of the Lien of the Security
Instrument being primed by any related Lien.

5.1.3.       Litigation.  Borrower shall give prompt notice to Lender
of any litigation or governmental proceedings pending or threatened in writing
against any Borrower Party or their respective Affiliates which might have a
Material Adverse Effect.

5.1.4.       Access
to Property.  Borrower shall permit
agents, representatives and employees of Lender to inspect the Property or any
part thereof at reasonable hours upon reasonable advance notice, subject to the
rights of tenants under leases.

5.1.5.       Notice
of Default.  Borrower shall promptly
advise Lender of any material adverse change in any Borrower Party’s condition,
financial or otherwise, or of the occurrence of any Default or Event of Default
of which Borrower has knowledge.

 114

5.1.6.                     Cooperate in Legal Proceedings.  Borrower shall cooperate fully with Lender
with respect to any proceedings before any court, board or other Governmental
Authority which may in any way affect the rights of Lender hereunder or any
rights obtained by Lender under any of the other Loan Documents and, in
connection therewith, permit Lender, at its election, to participate in any
such proceedings.

5.1.7.                     Perform Loan Documents.  Each Borrower Party shall observe, perform
and satisfy all the terms, provisions, covenants and conditions of, and shall
pay when due all costs, fees and expenses to the extent required under the Loan
Documents executed and delivered by, or applicable to, such Borrower Party.

5.1.8.                     Award and Insurance Benefits.  Borrower shall cooperate with Lender in
obtaining for Lender and Borrower the benefits of any Awards or Insurance
Proceeds lawfully or equitably payable in connection with the Property, and
Lender shall be reimbursed for any expenses incurred in connection therewith
(including attorneys’ fees and disbursements, and the payment by Borrower of
the expense of an appraisal on behalf of Lender in case of Casualty or
Condemnation affecting the Property or any part thereof) out of such Insurance
Proceeds.

5.1.9.                     Further Assurances.  Each Borrower Party shall, at Borrower’s sole
cost and expense:

(a)                                  furnish
to Lender all instruments, documents, boundary surveys, footing or foundation
surveys, certificates, plans and specifications, appraisals, title and other
insurance reports and agreements, and each and every other document,
certificate, agreement and instrument required to be furnished by any Borrower
Party pursuant to the terms of the Loan Documents to which such Borrower Party
is a party or which are reasonably requested by Lender in connection therewith;

(b)                                 execute
and deliver to Lender such documents, instruments, certificates, assignments
and other writings, and do such other acts necessary or desirable, to evidence,
preserve and/or protect the collateral at any time securing or intended to
secure the obligations of Borrower under the Loan Documents, as Lender may
reasonably require including, without limitation, the execution and delivery of
all such writings necessary to transfer any liquor licenses with respect to the
Property into the name of Lender or its designee after the occurrence of an
Event of Default; and

(c)                                  do
and execute all and such further lawful and reasonable acts, conveyances and
assurances for the better and more effective carrying out of the intents and purposes
of this Agreement and the other Loan Documents, as Lender shall reasonably
require from time to time.

5.1.10.               Special Purpose Entity.   Borrower hereby covenants and agrees that
until the Debt has been paid in full:

(a)                                  each
SPE Entity is and shall remain and continue to be a Special Purpose Entity;

 115
 

(b)                                 all
of the facts stated and the assumptions made in the Insolvency Opinion,
including, but not limited to, any exhibits attached thereto, are and shall
remain and continue to be true and correct in all material respects;

(c)                                  each
SPE Entity complies and shall continue to comply with all of the assumptions
made with respect to such SPE Entity in the Insolvency Opinion and any
Additional Insolvency Opinion;

(d)                                 each
Person other than any SPE Entity complies and shall continue to comply with all
assumptions made with respect to such Person in the Insolvency Opinion and any
Additional Insolvency Opinion; and

(e)                                  each
SPE Entity shall not create, incur, assume or suffer to exist or otherwise
become or be liable in respect of any Indebtedness other than Permitted
Indebtedness.

5.1.11.               Financial Reporting.

(a)                                  Borrower
will keep and maintain or will cause to be kept and maintained on a Fiscal Year
basis, in accordance with GAAP (or such other accounting basis acceptable to
Lender), proper and accurate books, records and accounts reflecting all of the
financial affairs of Borrower and all items of income and expense in connection
with the operation of the Property. 
Lender shall have the right from time to time at all times during normal
business hours upon reasonable notice to examine such books, records and
accounts at the office of Borrower or any other Person maintaining such books,
records and accounts and to make such copies or extracts thereof as Lender shall
desire.  After the occurrence of an Event
of Default, Borrower shall pay any costs and expenses incurred by Lender to
examine Borrower’s accounting records with respect to the Property, as Lender
shall determine to be necessary or appropriate in the protection of Lender’s
interest.

(b)                                 Borrower
will furnish to Lender annually, within ninety (90) days following the end of
each Fiscal Year of Borrower, a complete copy of Borrower’s annual financial
statements audited by a “Big Four” accounting firm or other independent
certified public accountant acceptable to Lender in accordance with GAAP (or
such other accounting basis acceptable to Lender) covering the Property for
such Fiscal Year and containing statements of profit and loss for Borrower and
the Property and a balance sheet for Borrower. 
Such statements shall set forth the financial condition and the results
of operations for the Property for such Fiscal Year, and shall include, but not
be limited to, amounts representing annual Net Cash Flow, Net Operating Income,
Gross Income from Operations and Operating Expenses.  Borrower’s annual financial statements shall
be accompanied by (i) a comparison of the budgeted income and expenses and
the actual income and expenses for the prior Fiscal Year, (ii) an unqualified
opinion of a “Big Four” accounting firm or other independent certified public
accountant reasonably acceptable to Lender, (iii) a list of tenants, if any,
occupying more than twenty percent (20%) of the total floor area of the
Improvements, (iv) a breakdown showing the year in which each Lease then in
effect expires and the percentage of total floor area of the Improvements and
the percentage of base rent with respect to which Leases shall expire in each
such year, each such percentage to be expressed on both a per year and
cumulative basis, (v) occupancy statistics for the Property, (vi) 

 116
 

if not
included in the audited financials referred to above, an Officer’s Certificate
attaching a schedule reconciling Net Operating Income to Net Cash Flow (the “Net
Cash Flow Schedule”), which shall itemize all adjustments made to Net
Operating Income to arrive at Net Cash Flow deemed material by such independent
certified public accountant, (vii) room rate reports and Rev PAR calculations,
and (viii)  an Officer’s Certificate certifying that each annual financial
statement presents fairly the financial condition and the results of operations
of Borrower and the Property being reported upon and that such financial
statements have been prepared in accordance with GAAP and as of the date
thereof whether there exists an event or circumstance which constitutes a
Default or Event of Default under the Loan Documents executed and delivered by,
or applicable to, Borrower, and if such Default or Event of Default exists, the
nature thereof, the period of time it has existed and the action then being
taken to remedy the same, except for those being contested by Borrower in good
faith in accordance with the requirements of the Loan Documents.

(c)                                  Borrower
will furnish, or cause to be furnished, to Lender on or before forty-five (45)
days after the end of each calendar month the following items, accompanied by
an Officer’s Certificate stating that such items are true, correct, accurate,
and complete and fairly present the financial condition and results of the
operations of Borrower and the Property (subject to normal year-end
adjustments): (i) a rent roll for the subject month; (ii) monthly and
year-to-date operating statements (including Capital Expenditures)
prepared for each calendar month, noting Net Operating Income, Gross Income
from Operations, and Operating Expenses, and, upon Lender’s request, other
information necessary and sufficient to fairly represent the financial position
and results of operation of the Property during such calendar month, and
containing a comparison of budgeted income and expenses and the actual income
and expenses together with a detailed explanation of any variances of 7.5% or
more between budgeted and actual amounts for such periods, all in form
satisfactory to Lender; (iii) a calculation reflecting the annual Debt
Service Coverage Ratio for the immediately preceding twelve (12) month
period as of the last day of such month; and (iv) a Net Cash Flow
Schedule.  In addition, such Officer’s
Certificate shall also state that the representations and warranties of
Borrower set forth in Section 4.1.30 are true and correct as of the
date of such certificate and that there are no trade payables outstanding for
more than sixty (60) days other than those being contested by Borrower in
good faith in accordance with the terms of this Agreement. Borrower will
furnish, or cause to be furnished, to Lender on or before ten (10) days after
the end of each calendar month, an Officer’s Certificate certifying as to the
amount of the Gaming Liquidity Requirement (including a calculation of the
determination thereof) and the Gaming Operating Reserve with respect to such
month, including any changes to the foregoing during such month, the foregoing
to be in form and, with respect to the Gaming Operating Reserve, in substance
reasonably acceptable to Lender.

(d)                                 For
the partial year period commencing on the date hereof, and for each Fiscal Year
thereafter, Borrower shall submit to Lender an Annual Budget not later than sixty (60)
days prior to the commencement of such period or Fiscal Year in form reasonably
satisfactory to Lender.  The Annual
Budget and any amendment or other modification thereto shall be subject to
Lender’s reasonable approval (each such Annual Budget, an “Approved Annual
Budget”) in each instance.  In the
event that Lender objects to a proposed Annual Budget or any amendment or other
modification thereto submitted by Borrower which requires the approval of
Lender hereunder, Lender shall advise Borrower of such objections within
fifteen (15) days after receipt thereof (and deliver to Borrower a
reasonably detailed description of such objections) and 

 117
 

Borrower shall
promptly revise such Annual Budget and resubmit the same to Lender.  Lender shall advise Borrower of any
objections to such revised Annual Budget within ten (10) days after
receipt thereof (and deliver to Borrower a reasonably detailed description of
such objections) and Borrower shall promptly revise the same in accordance with
the process described in this Section 5.1.11(d) until Lender
approves the Annual Budget.  Until such
time that Lender approves a proposed Annual Budget (including any amendment or
other modification thereto) which requires the approval of Lender hereunder,
the most recently Approved Annual Budget shall apply; provided, that
such Approved Annual Budget shall be adjusted to reflect actual increases in
Taxes, Insurance Premiums, utilities expenses, union wage adjusts and any other
non-discretionary cost or expense required to be paid to continue the operation
of the Property in the normal course.

(e)                                  In
the event that Borrower must incur an extraordinary Operating Expense or
Capital Expenditure not set forth in the Approved Annual Budget (each, an “Extraordinary
Expense”), then Borrower shall promptly deliver to Lender a reasonably
detailed explanation of such proposed Extraordinary Expense for Lender’s
approval.

(f)                                    If,
at the time a Disclosure Document is being prepared for a Securitization,
Lender expects that Borrower alone or Borrower and one or more Affiliates of
Borrower collectively, or the Property alone or the Property and Related
Properties collectively, will be a Significant Obligor, Borrower shall furnish
to Lender upon request (i) the selected financial data or, if applicable, Net
Operating Income, required under Item 1112(b)(1) of Regulation AB, if Lender
expects that the principal amount of the Loan together with any Related Loans
as of the cut-off date for such Securitization may, or if the principal amount
of the Loan together with any Related Loans as of the cut-off date for such
Securitization and at any time during which the Loan and any Related Loans are
included in a Securitization does, equal or exceed ten percent (10%) (but less
than twenty percent (20%)) of the aggregate principal amount of all mortgage
loans included or expected to be included, as applicable, in the
Securitization, or (ii) the financial statements required under Item 1112(b)(2)
of Regulation AB, if Lender expects that the principal amount of the Loan
together with any Related Loans as of the cut-off date for such Securitization
may, or if the principal amount of the Loan together with any Related Loans as
of the cut-off date for such Securitization and at any time during which the
Loan and any Related Loans are included in a Securitization does, equal or
exceed twenty percent (20%) of the aggregate principal amount of all mortgage
loans included or expected to be included, as applicable, in the
Securitization.  Such financial data or
financial statements shall be furnished to Lender (A) within ten (10) Business
Days after notice from Lender in connection with the preparation of Disclosure
Documents for the Securitization, (B) not later than thirty (30) days after the
end of each fiscal quarter of Borrower and (C) not later than seventy-five (75)
days after the end of each fiscal year of Borrower; provided, however,
that Borrower shall not be obligated to furnish financial data or financial
statements pursuant to clauses (B) or (C) of this sentence with respect to any
period for which a filing pursuant to the Exchange Act in connection with or
relating to the Securitization (an “Exchange Act Filing”) is not
required.  If requested by Lender,
Borrower shall furnish to Lender financial data and/or financial statements for
any tenant of the Property to the extent required to be delivered by such
tenant under its lease if, in connection with a Securitization, Lender expects
there to be, with respect to such tenant or group of affiliated tenants, a concentration
within all of the mortgage loans included or expected to be included, as 

 118
 

applicable, in
the Securitization such that such tenant or group of affiliated tenants would
constitute a Significant Obligor.

(g)                                 All
financial statements provided by Borrower hereunder pursuant to Section 5.1.11(f)
shall be prepared in accordance with GAAP, and shall meet the requirements of
Regulation AB and other applicable legal requirements.  All annual financial statements referred to
in Section 5.1.11(f) above shall be audited by independent
accountants of Borrower acceptable to Lender in accordance with Regulation AB
and all other applicable legal requirements, shall be accompanied by the
manually executed report of the independent accountants thereon, which report
shall meet the requirements of Regulation AB and all other applicable legal
requirements, and shall be further accompanied by a manually executed written
consent of the independent accountants, in form and substance acceptable to
Lender, to the inclusion of such financial statements in any Disclosure
Document and any Exchange Act Filing and to the use of the name of such
independent accountants and the reference to such independent accountants as “experts”
in any Disclosure Document and Exchange Act Filing, all of which shall be
provided at the same time as the related financial statements are required to
be provided.  All financial data and
financial statements (audited or unaudited) provided by Borrower under Section 5.1.11(f)
and this Section 5.1.11(g) shall be accompanied by an Officer’s
Certificate, which certification shall state that such financial statements
meet the requirements set forth in the first sentence of this Section 5.1.11(g).

(h)                                 If
requested by Lender, Borrower shall provide Lender, promptly upon request, with
any other or additional financial statements, or financial, statistical or
operating information, as Lender shall determine to be required pursuant to
Regulation AB or any amendment, modification or replacement thereto or other legal
requirements in connection with any Disclosure Document or any Exchange Act
Filing.

(i)                                     In
the event Lender determines, in connection with a Securitization, that the
financial data and financial statements required in order to comply with
Regulation AB or any amendment, modification or replacement thereto or other
legal requirements are other than as provided herein, then notwithstanding the
provisions of Section 5.1.11(g), Lender may request, and Borrower
shall promptly provide, such other financial data and financial statements as
Lender determines to be necessary or appropriate for such compliance.

(j)                                     Any
reports, statements or other information required to be delivered under this
Agreement shall be delivered (i) in paper form, (ii) on a diskette,
and (iii) if requested by Lender and within the capabilities of Borrower’s
data systems without change or modification thereto, in electronic form and
prepared using a Microsoft Word for Windows or WordPerfect for Windows files
(which files may be prepared using a spreadsheet program and saved as word
processing files).  Borrower agrees that
Lender may disclose information regarding the Property and Borrower that is
provided to Lender pursuant to this Section 5.1.11 in connection with
the Securitization to parties requesting such information as potential
investors or parties in connection with such Securitization.

5.1.12.               Business and Operations.  Borrower will continue to engage in the
businesses presently conducted by it as and to the extent the same are necessary
for the ownership, development, maintenance, management and operation of the
Property.  Borrower will qualify to 

 119
 

do business and will remain in good standing under the laws of each
jurisdiction as and to the extent the same are required for the ownership,
maintenance, management and operation of the Property.

5.1.13.               Title to the Property.  Borrower will warrant and defend (a) the
title to the Property and every part thereof, subject only to Liens permitted
hereunder (including Permitted Encumbrances) and (b) the validity and
priority of the Lien of the Security Instrument and the Assignment of Leases,
subject only to Liens permitted hereunder (including Permitted Encumbrances),
in each case against the claims of all Persons whomsoever.  Borrower shall reimburse Lender for any
losses, costs, damages or expenses (including reasonable attorneys’ fees and
court costs) incurred by Lender if an interest in the Property, other than as
permitted hereunder, is claimed by another Person.

5.1.14.               Costs of Enforcement.  In the event (a) that the Security
Instrument is foreclosed in whole or in part or that the Security Instrument is
put into the hands of an attorney for collection, suit, action or foreclosure,
(b) of the foreclosure of any mortgage prior to or subsequent to the
Security Instrument in which proceeding Lender is made a party, or (c) of
the bankruptcy, insolvency, rehabilitation or other similar proceeding in
respect of Borrower or any of its constituent Persons or an assignment by
Borrower or any of its constituent Persons for the benefit of its creditors,
Borrower, its successors or assigns, shall be chargeable with and agrees to pay
all costs of collection and defense, including attorneys’ fees and costs,
incurred by Lender or Borrower in connection therewith and in connection with
any appellate proceeding or post-judgment action involved therein,
together with all required service or use taxes.

5.1.15.               Estoppel Statement.

(a)                                  After
request by Lender, Borrower shall within ten (10) days furnish Lender with a
statement, duly acknowledged and certified, setting forth (i) the original
principal amount of the Loan, (ii) the unpaid principal amount of the
Loan, (iii) the Applicable Interest Rate of the Loan, (iv) the date
installments of interest and/or principal were last paid, (v) any offsets
or defenses to the payment of the Debt, if any, and (vi) that the Note,
this Agreement, the Security Instrument and the other Loan Documents are valid,
legal and binding obligations and have not been modified or if modified, giving
particulars of such modification.

(b)                                 Borrower
shall upon Lender’s request, request and use all reasonable efforts to obtain
tenant estoppel certificates from each commercial tenant leasing space at the
Property in form and substance reasonably satisfactory to Lender provided that
Borrower shall not be required to request such certificates more frequently
than two (2) times in any calendar year.

5.1.16.               Loan Proceeds.  Borrower shall use the proceeds of the Loan
received by it on the Closing Date only for the purposes set forth in Section 2.1.2
and Section 2.1.3 as applicable.

5.1.17.               Performance by Borrower Parties.  Each Borrower Party shall in a timely manner
observe, perform and fulfill each and every covenant, term and provision of
each Loan Document executed and delivered by, or applicable to, such Borrower
Party, and shall not enter into or otherwise suffer or permit any amendment,
waiver, supplement, termination or other 

 120
 

modification of any Loan Document executed and delivered by, or
applicable to, Borrower without the prior consent of Lender.

5.1.18.               Confirmation of Representations.  Borrower shall deliver, in connection with
any Securitization, (a) one or more Officer’s Certificates certifying as
to the accuracy of all representations made by Borrower in the Loan Documents
as of the date of the closing of such Securitization in all relevant
jurisdictions, and (b) certificates of the relevant Governmental
Authorities in all relevant jurisdictions indicating the good standing and qualification
of each Borrower Party as of the date of the Securitization.

5.1.19.               Employee Benefits.  Borrower shall, and shall use its reasonable
best efforts to cause each of its ERISA Affiliates to:

(a)                                  pay
and discharge promptly any liability imposed upon it pursuant to the provisions
of Title IV of ERISA; provided, however, that neither Borrower nor any
ERISA Affiliate shall be required to pay any such liability if (1) the amount,
applicability or validity thereof shall be diligently contested in good faith
by appropriate proceedings, and (2) such Person shall have set aside on its
books reserves which, in the opinion of the independent certified public
accountants of such Person, are adequate with respect thereto;

(b)                                 deliver
to Lender, promptly and in any event within five (5) Business Days after (or
within such other time period specified) (i) the occurrence of any Reportable
Event, a copy of the materials that are filed with the PBGC, or the materials
that would have been required to be filed if the 30-day notice requirement to
the PBGC was not waived, (ii) Borrower or any ERISA Affiliate or an
administrator of any Pension Plan files with participants, beneficiaries or the
PBGC a notice of intent to terminate any such Pension Plan, a copy of any such
notice, (iii) within five (5) Business Days, the receipt of notice by Borrower
or any ERISA Affiliate or an administrator of any Pension Plan from the PBGC of
the PBGC’s intention to terminate any Pension Plan or to appoint a trustee to
administer any such Pension Plan, a copy of such notice, (iv) within thirty
(30) days after, the filing thereof with the Internal Revenue Service, copies
of each annual report that is filed on Treasury Form 5500 with respect to any
Pension Plan, together with certified financial statements (if any) for the
Pension Plan and any actuarial statements on Schedule B to such Form 5500, (v)
five (5) Business Days after, Borrower or any ERISA Affiliate knows or has
reason to know of any event or condition which might constitute grounds under
the provisions of Section 4042 of ERISA for the termination of (or the
appointment of a trustee to administer) any Pension Plan, an explanation of
such event or condition, (vi) the receipt by Borrower or any ERISA Affiliate of
an assessment of withdrawal liability under Section 4201 of ERISA from a
Multiemployer Plan, a copy of such assessment, (vii) within five (5) Business
Days, Borrower or any ERISA Affiliate knows or has reason to know of any event
or condition which might cause any one of them to incur a liability under
Section 4062, 4063, 4064 or 4069 of ERISA or Section 412(n) or 4971 of the
Code, an explanation of such event or condition, (viii) Borrower or any ERISA
Affiliate knows or has reason to know that an application is to be, or has been,
made to the Secretary of the Treasury for a waiver of the minimum funding
standard under the provisions of Section 412 of the Code, a copy of such
application, and (ix) the establishment of, or the incurrence of the obligation
to contribute to, any Pension Plan or Multiemployer Plan by Borrower or any
ERISA Affiliate, and in each case described in clauses (i) through (iii) and
(v) through (ix) together with Officer’s Certificate of 

 121
 

Borrower
setting forth details as to such Reportable Event, notice, event or condition
and the action which Borrower or such ERISA Affiliate proposes to take with
respect thereto; and

(c)                                  deliver
to Lender, promptly and in any event within five (5) Business Days after the
assets of Borrower became “plan assets” under ERISA and any currently effective
regulations promulgated thereunder or under any other federal, state, local or
non-U.S. laws applicable to employee benefit plans, an Officer Certificate of
Borrower setting forth the details of such event and the action which Borrower
proposes to take with respect thereto.

5.1.20.               Leasing Matters.

(a)                                  All
Leases and all renewals of Leases executed after the date hereof shall (i) be
negotiated at arm’s length and shall be on commercially reasonable terms, and
(ii) provide that such Lease is subordinate to the Security Instrument and the
other Loan Documents and that the lessee agrees, subject to customary and
reasonable provisions for non-disturbance to the extent the lessee is not in
default thereunder, to attorn to Lender and any purchaser at a foreclosure
sale.  Any Major Lease and any renewal,
material waiver, material amendment, material modification or termination
thereof executed after the date hereof shall be subject to Lender’s prior
approval, which approval shall not be unreasonably withheld or delayed.  If an Event of Default shall exist, all
Leases and each renewal, waiver, amendment, modification or termination thereof
executed during the existence of such Event of Default shall be subject to
Lender’s prior approval in its sole discretion. 
Lender’s approval shall not be required for any Lease, or any renewal,
waiver, amendment, modification or termination except as expressly provided in
this Section 5.1.20.  Upon request
of Borrower and at Borrower’s sole cost and expense, so long as no Event of
Default shall exist, from time to time Lender shall promptly execute and
deliver a subordination, nondisturbance and attornment agreement in connection
with any Major Lease, such agreement to be in Lender’s then usual and customary
form and otherwise reasonably acceptable to Lender in all respects.

(b)                                 Any
request for the approval by Lender of any Lease or any renewal, waiver,
amendment, modification or termination thereof shall be delivered to Lender in
writing and shall include a copy of the proposed Lease or renewal, waiver,
amendment, modification or termination and Lender shall so advise whether such
approval is granted or denied within ten (10) Business Days after receipt of
such written request.  Provided that the
request is accompanied by a notice, which provides in upper case bold-faced
type:  “THIS IS A REQUEST FOR AN APPROVAL
WITH RESPECT TO A LEASE.  IF LENDER FAILS
TO RESPOND WITHIN 10 BUSINESS DAYS OF THE EFFECTIVENESS OF THIS NOTICE, THE
REQUESTED ACTION WITH RESPECT TO THE LEASE WILL BE DEEMED APPROVED”, if Lender
shall not so advise of its determination within such ten (10) Business Day
period (notice by facsimile on the same day being acceptable for this purpose),
such proposed Lease or renewal, waiver, amendment, modification or termination
thereof shall be deemed approved by Lender. 
If Lender shall deny any such request for approval, Lender shall specify
the reasons for its refusal to grant approval. 
For the purposes of this Section 5.1.20, subject to Lender’s receipt,
review and reasonable approval of definitive documentation with respect to the
same pursuant to this Agreement, Lender hereby acknowledges and approves the
proposed lease of space to Opium Group to be used as a nightclub upon
substantially the same terms as set forth in the term sheet delivered to Lender
on or prior to the date hereof.

 122
 

(c)                                  Borrower
(i) shall observe and perform the obligations imposed upon the lessor under the
Leases in a commercially reasonable manner; (ii) shall enforce the terms, covenants
and conditions contained in the Leases upon the part of the lessee thereunder
to be observed or performed in a commercially reasonable manner; provided,
however, Borrower shall not terminate or accept a surrender of a Major Lease
without Lender’s prior written approval, except in the event of a default by
the tenant thereunder and with prior written notice to Lender; (iii) shall not
collect any of the Rents more than one (1) month in advance (other than
security deposits); (iv) shall not execute any assignment of lessor’s interest
in the Leases or the Rents (except as contemplated by the Loan Documents); and
(v) shall hold all security deposits under all Leases in accordance with
applicable Legal Requirements.  Upon
request, Borrower shall furnish Lender with executed copies of all Leases.
Notwithstanding the foregoing provisions of this Section 5.1.20(c),
Borrower shall have the right to terminate any Lease by the exercise of any
specific right set forth in such Lease to terminate the same due to the
applicable tenant’s failure to achieve any required sales thresholds set forth
therein; provided that Borrower shall promptly deliver to lender written notice
of the exercise of any such right and the termination of any such Lease.

5.1.21.               Alterations.

(a)                                  Borrower
shall cause all Alterations with respect to any portion of the Property to be
conducted and performed with due diligence in a good and workmanlike manner,
and all materials used and work done shall be in accordance with all applicable
Legal Requirements.  Any Material
Alteration shall be subject to Lender’s prior written consent, which consent
shall not be unreasonably withheld. 
Lender’s consent shall not be required for any Alterations other than
Material Alterations.  If the total
unpaid amounts due and payable with respect to any Alterations at the Property
(other than such amounts to be paid or reimbursed by tenants under the Leases)
shall at any time exceed $3,000,000 (the “Threshold Amount”), Borrower
shall promptly deliver to Lender as security for the payment of such amounts
and as additional security for Borrower’s obligations under the Loan Documents
any of the following: (A) cash, (B) U.S. Obligations, (C) other securities
having a rating acceptable to Lender and a Rating Agency Confirmation with
respect to same, (D) a Letter of Credit, (E) a completion and performance bond
issued by an Approved Bank, or (F) a guaranty of completion of such Alterations
from Guarantor or another guarantor reasonably acceptable to Lender, and in a
form reasonably acceptable to Lender. 
Such security shall be in an amount equal to the excess of the total
unpaid amounts with respect to such Alterations (other than such amounts to be
paid or reimbursed by tenants under the Leases) over the Threshold Amount and,
during the existence of an Event of Default, Lender may apply such security
from time to time at the option of Lender to pay for such Alterations.  Notwithstanding the foregoing, Borrower shall
not be obligated to deliver any additional security for Alterations to the
extent that the Alterations that would otherwise have given rise to the
obligation to deliver additional security for Alterations may (pursuant to the
applicable provisions hereof) be paid for with funds from the FF&E Reserve
Account.

(b)                                 Any
request for the approval by Lender of any Material Alterations shall be
delivered to Lender in writing and shall include such documents, plans and
other information as Lender shall reasonably require. If Lender shall fail to
approve, disapprove or otherwise respond to such request for approval within
ten (10) days, then Borrower may send to Lender a notice 

 123
 

referencing
this Agreement and the applicable Section hereof and stating in upper case
bold-faced type “LENDER HAS FAILED TO APPROVE, DISAPPROVE OR OTHERWISE RESPOND
TO BORROWER’S REQUEST FOR CONSENT TO ALTERATIONS WITHIN THE TEN (10) DAY PERIOD
SET FORTH IN SECTION 5.1.20 OF THE LOAN AGREEMENT, AND IF LENDERS SHALL FAIL TO
APPROVE, DISAPPROVE OR OTHERWISE RESPOND TO THE SAME WITHIN TEN (10) DAYS AFTER
THE EFFECTIVENESS OF THIS NOTICE, LENDERS SHALL BE DEEMED TO HAVE APPROVED OF
THE SAME”, and if Lender shall fail to approve, disapprove or otherwise respond
to such notice of Borrower within ten (10) days after the effectiveness of such
notice, Lender shall be deemed to have approved of Borrower’s proposed
Alterations.

5.1.22.               Operation of Property.  Borrower shall conduct its business and
operations, and shall cause the Property to be operated and managed, in the
ordinary course consistent with past practice and as contemplated by the
Renovation Project in all material respects. Borrower shall cause the Property
to be operated, in all material respects, in accordance with any Management
Agreement (or Replacement Management Agreement) as applicable.  In the event that any Management Agreement
expires or is terminated (without limiting any obligation of Borrower to obtain
Lender’s consent to any termination or modification of the Management Agreement
in accordance with the terms and provisions of this Agreement), Borrower shall
promptly enter into a Replacement Management Agreement with Manager or another
Qualified Manager, as applicable. Except for Excusable Delays, Borrower shall
cause the Hotel Component to be at all times open for business as a hotel and
the Casino Component to be open for business as a casino, except to the extent
necessary to undertake the Renovation Project with due diligence in accordance
with the provisions hereof.  Borrower
shall cause the Property to be at all times operated, managed and maintained,
at all times and in the manner and accordance with the standards required
pursuant to any Management Agreement, any other Material Operating Agreement
(including all marketing, advertising, promotional and reservation programs)
and all applicable Legal Requirements, except where the failure to do so would
not reasonably be expected to have a Material Adverse Effect, or would not
result in a material default under such agreements (if any) but in no event
below the Comparable Standards.  Borrower
shall at all times manage, operate and maintain the Hotel Component, the Casino
Component and the TPA Component as a luxury themed hotel and casino resort in
accordance with standards at least equivalent to the Comparable Standards.  The theme of the Hotel Component, the Casino
Component and the TPA Component shall not be materially changed without the
prior written reasonable consent of Lender other than to the extent disclosed
to Lender in writing prior to the Closing Date, provided that Lender hereby
consents to the re-theming of the Property as a Planet Hollywood hotel and
casino consistent with the Renovation Project Documents.  The TPA Component shall be used to present
events which are consistent with the first class nature of the complex, and consistent
with the Comparable Standards.

5.1.23.               Management Agreements.

(a)                                  Borrower
shall, and shall cause its Affiliates to, at its sole cost and expense (i)
promptly and timely perform and/or observe, in all material respects, all of
the terms, covenants, conditions and agreements required to be performed and
observed by Borrower or such Affiliate under any Management Agreement and do
all things necessary to preserve and to keep unimpaired its material rights
thereunder; (ii) promptly notify Lender of any material default 

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under any
Management Agreement of which it is aware; (iii) promptly deliver to Lender a
copy of each notice received by it under a Management Agreement; (iv) enforce
the performance and observance of all of the covenants and agreements required
to be performed and/or observed by the counterparty under each Management
Agreement, in a commercially reasonable manner, (v) not amend, restate,
replace, supplement or otherwise modify any Management Agreement in any
material respect, or waive any of its material rights and remedies thereunder,
without the prior written consent of Lender (such consent not to be
unreasonably withheld, conditioned or delayed) in each instance.

(b)                                 If
Borrower or its Affiliate shall be in default under any Management Agreement,
then, subject to the terms of such Management Agreement, Borrower or such
Affiliate (as applicable) shall grant Lender the right (but not the
obligation), upon prior notice to Borrower, to cause the default or defaults
under such Management Agreement to be remedied and otherwise exercise any and
all rights of Borrower or such Affiliate (as applicable) under such Management
Agreement, as may be necessary to prevent or cure any default provided such
actions are necessary to protect Lender’s interest under the Loan Documents,
and Lender shall have the right to enter all or any portion of the Property at
such times and in such manner as Lender deems necessary, to prevent or to cure
any such default.

(c)                                  The
actions or payments of Lender to cure any default by Borrower or its Affiliates
under any Management Agreement shall not remove or waive, as between Borrower
and Lender, any default that occurred under this Agreement by virtue of such
default by Borrower or its Affiliate under such Management Agreement.  All sums expended by Lender to cure any such
default shall be paid by Borrower to Lender, upon demand, with interest on such
sum at the rate set forth in this Agreement from the date such sum is expended
to and including the date the reimbursement payment is made to Lender.  All such indebtedness shall be deemed to be
secured by the Security Instrument.

(d)                                 Borrower
shall notify Lender promptly in writing of (i) the occurrence, to Borrower’s
knowledge, of any material default by any party to any Management Agreement,
(ii) the occurrence, to Borrower’s knowledge, of any event that, with the
passage of time or service of notice, or both, would constitute a material
default by any party under any Management Agreement, and (iii) the receipt by
Borrower or its Affiliate of any notice (written or otherwise) from any party
under any Management Agreement noting or claiming the occurrence of any default
by Borrower or its Affiliate under any Management Agreement.

(e)                                  Borrower
and/or its Affiliates (as applicable) shall promptly execute, acknowledge and
deliver to Lender such instruments as may reasonably be required to permit
Lender to cure any default under any Management Agreement or permit Lender to
take such other action required to enable Lender to cure or remedy the matter
in default and preserve the security interest of Lender under the Loan
Documents with respect to the Property. 
Upon the occurrence and during the continuance of an Event of Default,
Borrower irrevocably appoints Lender as its true and lawful attorney-in-fact to
do, in its name or otherwise, any and all acts and to execute any and all
documents that are necessary to preserve any rights of Borrower or its
Affiliates under or with respect to any Management Agreement, including,
without limitation, the right to effectuate any extension or renewal of any
Management Agreement, or to preserve any rights of Borrower of its Affiliates
whatsoever in respect of any part of any Management 

 125
 

Agreement (and
the above powers granted to Lender are coupled with an interest and shall be
irrevocable).

(f)                                    With
respect to any Management Agreement, Borrower shall, from time to time (but not
more often than four (4) times in any twelve (12) month period unless an Event
of Default then exists in which case such limit shall not apply), upon ten (10)
Business Days’ prior written request from Lender, execute, acknowledge and
deliver to Lender, a statement containing the following:  (A) a statement that such Management
Agreement is unmodified and in full force and effect or, if there have been
modifications, that the Management Agreement is in full force and effect as
modified and setting forth such modifications, (B) a statement that either such
Borrower or its Affiliate (as applicable) is not in default thereunder beyond
any applicable grace, cure or notice period or, if any such default shall exist
thereunder, a description of such default and the steps being taken to cure
such default, (C) a statement that, to Borrower’s knowledge, either the other
party thereto is not in default thereunder beyond any applicable grace, cure or
notice period or, if any such default shall exist thereunder, a description of
such default and the steps being taken to cure such default and (D) such other
information with respect to the Management Agreements as Lender shall
reasonably request.

(g)                                 With
respect to any Management Agreement, Borrower shall use commercially reasonable
efforts to deliver to Lender from time to time (provided that Borrower shall
not be required to deliver such certificates more frequently than four times in
any calendar year) within twenty (20) Business Days of Lender’s request, a
certificate from each party to such Management Agreement other than Borrower or
its Affiliates containing the following: 
(A) a statement that such Management Agreement is unmodified and in full
force and effect or, if there have been modifications, that the Management
Agreement is in full force and effect as modified and setting forth such
modifications, (B) a statement that either such other party is not in default
thereunder beyond any applicable grace, cure or notice period or, if any such
default shall exist thereunder, a description of such default and the steps
being taken to cure such default, (C) a statement that, to such party’s
knowledge, either the Borrower or its Affiliate (as applicable) is not in
default thereunder beyond any applicable grace, cure or notice period or, if
any such default shall exist thereunder, a description of such default and the
steps being taken to cure such default and (D) such other information with
respect to such other party and/or Management Agreements as Lender shall
reasonably request.

5.1.24.               Intellectual Property Collateral.

(a)                                  Borrower
has executed and delivered on the date hereof, a fully completed Security
Agreement (Copyrights) and Security Agreement (Trademarks), as applicable, with
regard to any Copyrights or Trademarks, as the case may be, of Borrower,
described in Schedule IV.  In the
event that, after the date hereof Borrower shall acquire any registered
Copyright, Domain Name or Trademark or file any application for registration
thereof, whether within the United States or any other country or jurisdiction,
Borrower shall promptly furnish written notice thereof to Lender together with
information sufficient to permit Lender, upon its receipt of such notice, to
(and Borrower hereby authorizes Lender to) modify in accordance with this
Agreement, as appropriate, by amending Schedule IV hereto or to add
additional exhibits hereto to include any Copyright, Domain Name or Trademark
that becomes part of the collateral under the Security Instrument, and Borrower
shall additionally, at its own expense, execute and deliver, 

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as promptly as
possible (but in any event within twenty (20) days) after the date of such
notice, with regard to United States Copyrights and Trademarks, a fully
completed Security Agreement (Copyrights) and Security Agreement (Trademarks)
in substantially the same form as delivered on the date hereof, as applicable,
together in all instances with any other agreements, instruments and documents
that Lender may reasonably request from time to time to further effect and
confirm the security interest created by this Agreement in such Copyrights and
Trademarks, and Borrower hereby appoints Lender its attorney-in-fact, upon the
occurrence and during the continuance of an Event of Default, to execute,
deliver and record any and all such agreements, instruments and documents for
the foregoing purposes, all acts of such attorney being hereby ratified and
confirmed and such power, being coupled with an interest, being irrevocable for
so long as this Agreement shall be in effect with respect to Borrower.

(b)                                 Borrower
(either itself or through its licensees or sublicensees) will, for each material
Trademark used in the conduct of its business, use its commercially reasonable
efforts to (i) maintain such Trademark in full force and effect, free from any
claim of abandonment or invalidity for non-use, (ii) maintain the quality of
products and services offered under such Trademark, (iii) display such
Trademark with notice of federal registration to the extent required by
applicable law, (iv) take appropriate and commercially reasonable steps to
police and defend such Trademark and prevent or arrest infringement, dilution
or other harm to such Trademark and (v) not knowingly use or knowingly permit
the use of such Trademark in violation of any third-party rights, unless
Borrower determines in its reasonable good-faith discretion that such Trademark
is no longer useful in its business.

(c)                                  Borrower
(either itself or through its licensees or sublicensees) will refrain from
committing any act, or omitting any act, whereby any Patent used in the conduct
of such Borrower’s business may become invalidated or dedicated to the public,
and shall continue to mark any products covered by Patent with the relevant
patent number as required by applicable patent laws, unless Borrower determines
in its reasonable good-faith discretion that such Patent is no longer useful in
its business.

(d)                                 Borrower
(either itself or through its licensees or sublicensees) will, for each work
covered by a material Copyright, continue to publish, reproduce, display, adopt
and distribute the work with appropriate notice as required under applicable
copyright laws, unless Borrower determines in its reasonable good-faith
discretion that such Copyright is no longer useful in its business.

(e)                                  Borrower
shall notify Lender immediately if it knows or has reason to know that any
material Patent, Trademark or Copyright used in the conduct of its business may
become abandoned or dedicated to the public, or of any adverse determination or
development (including the institution of, or any such determination or
development in, any proceeding in the U.S. Patent and Trademark Office, U.S.
Copyright Office or any court) regarding, such Borrower’s ownership of any
Trademark or Copyright, its right to register the same, or to keep and maintain
the same.

(f)                                    Borrower
will take all necessary steps that are consistent with the practice in any
proceeding before the U.S. Patent and Trademark Office, U.S. Copyright Office
or any office or agency in any political subdivision of the United States or in
any other country or any political 

 127
 

subdivision
thereof, to maintain and pursue each application relating to any Patents,
Trademarks or Copyrights (and to obtain the relevant grant or registration)
used in the conduct of such Borrower’s business and to maintain each
registration of any Patents, Trademarks and Copyright used in the conduct of
such Borrower’s business (excluding those listed in the License Agreement),
including the filing of applications for renewal, affidavits of use, affidavits
of incontestability and maintenance fees, and, if consistent with sound business
judgment, to initiate opposition, interference and cancellation proceedings
against third parties.

(g)                                 In
the event that any collateral consisting of a Patent, Trademark or Copyright
used in the conduct of any Borrower’s business is believed infringed,
misappropriated or diluted by a third party, such Borrower shall notify Lender
promptly after it learns thereof and shall, if consistent with sound business
judgment, promptly sue for infringement, misappropriation or dilution, and take
such other actions as are appropriate under the circumstances to protect such
Collateral.

(h)                                 Upon
the occurrence and during the continuance of any Event of Default, each
Borrower shall use its commercially reasonable efforts to obtain all requisite
consents or approvals from the Licensors included within the Copyright
Collateral, Patent Collateral or Trademarks Collateral (each as defined in the
Security Instrument) to effect the assignment of all of such Borrower’s right,
title and interest thereunder to Lender or its designee.

5.1.25.               Material Operating Agreements.

(a)                                  Borrower
and its Affiliates shall, at its sole cost and expense (i) promptly and timely
perform and/or observe, in all material respects, all of the terms, covenants,
conditions and agreements required to be performed and observed by Borrower or
such Affiliate under each Material Operating Agreement and do all things
necessary to preserve and to keep unimpaired its material rights thereunder;
(ii) promptly notify Lender of any material default under any Material
Operating Agreement of which it is aware; (iii) promptly deliver to Lender a
copy of each notice of default or other material notice received by it under
any Material Operating Agreement; (iv) enforce the performance and observance
of all of the covenants and agreements required to be performed and/or observed
by the counterparty under each Material Operating Agreement, in a commercially
reasonable manner, (v) not amend, restate, replace, supplement or otherwise
modify any Material Operating Agreement in any material respect, or waive any
of its material rights and remedies thereunder, without the prior written
consent of Lender (such consent not to be unreasonably withheld, conditioned or
delayed) in each instance.  For the
purposes of this Section 5.1.25, subject to Lender’s receipt, review and
reasonable approval of definitive documentation with respect to the same
pursuant to this Agreement, Lender hereby acknowledges and approves the
proposed modification of the TPA Component Lease to expand the space demised
thereunder to include additional seating capacity for up to 500 persons upon
substantially the same terms as set forth therein with respect to the current
seating capacity covered thereby on the date hereof.

(b)                                 Any
request for the approval by Lender of any Material Operating Agreement or any
renewal, waiver, amendment, modification or termination thereof shall be
delivered to Lender in writing and shall include a copy of the proposed
Material Operating Agreement or renewal, waiver, amendment, modification or
termination and Lender shall so advise whether 

 128
 

such approval
is granted or denied within ten (10) Business Days after receipt of such
written request.  Provided that the
request is accompanied by a notice, which provides in upper case bold-faced
type:  “THIS IS A REQUEST FOR AN APPROVAL
WITH RESPECT TO A MATERIAL OPERATING AGREEMENT. 
IF LENDER FAILS TO RESPOND WITHIN TEN (10) BUSINESS DAYS OF THE
EFFECTIVENESS OF THIS NOTICE, BORROWER SHALL HAVE THE RIGHT TO DELIVER A DEEMED
APPROVAL NOTICE”, if Lender shall not so advise of its determination within
such ten (10) Business Day period (notice by facsimile on the same day being
acceptable for this purpose), then Borrower shall have the right to deliver a
second written request for such approval and, provided that such second request
is accompanied by a notice, which provides in upper case bold-faced type:  “THIS IS A SECOND REQUEST FOR AN APPROVAL
WITH RESPECT TO A MATERIAL OPERATING AGREEMENT. 
IF LENDER FAILS TO RESPOND WITHIN FIVE (5) BUSINESS DAYS OF THE
EFFECTIVENESS OF THIS NOTICE THE REQUESTED ACTION WITH RESPECT TO THE MATERIAL
OPERATING AGREEMENT WILL BE DEEMED APPROVED”, if Lender shall not so advise of
its determination within such five (5) Business Day period (notice by facsimile
on the same day being acceptable for this purpose), such proposed Material
Operating Agreement or renewal, waiver, amendment, modification or termination
thereof shall be deemed approved by Lender. 
If Lender shall deny any such request for approval, Lender shall specify
the reasons for its refusal to grant approval.

(c)                                  If
Borrower or its Affiliate shall be in default under any Material Operating
Agreement, then, subject to the terms of such Material Operating Agreement,
Borrower or such Affiliate (as applicable) shall (subject to any applicable
Legal Requirements) grant Lender the right (but not the obligation), to cause
the default or defaults under such Material Operating Agreement to be remedied
and otherwise exercise any and all rights of Borrower or such Affiliate (as
applicable) under such Material Operating Agreement, as may be necessary to
prevent or cure any default provided such actions are necessary to protect
Lender’s interest under the Loan Documents, and Lender shall have the right to
enter all or any portion of the Property at such times and in such manner as
Lender deems necessary, to prevent or to cure any such default.

(d)                                 The
actions or payments of Lender to cure any default by Borrower or its Affiliates
under any Material Operating Agreement shall not remove or waive, as between
Borrower and Lender, any default that occurred under this Agreement by virtue
of such default by Borrower or its Affiliate under such Material Operating
Agreement.  All sums expended by Lender
to cure any such default shall be paid by Borrower to Lender, upon demand, with
interest on such sum at the rate set forth in this Agreement from the date such
sum is expended to and including the date the reimbursement payment is made to
Lender.  All such indebtedness shall be
deemed to be secured by the Security Instrument.

(e)                                  Borrower
shall notify Lender promptly in writing of (i) the occurrence, to Borrower’s
knowledge, of any material default by any party to any Material Operating
Agreement, (ii) the occurrence, to Borrower’s knowledge, of any event that,
with the passage of time or service of notice, or both, would constitute a
material default by any party under any Material Operating Agreement, and (iii)
the receipt by Borrower or its Affiliate of any notice (written or otherwise)
from any party under any Material Operating Agreement noting or 

 129
 

claiming the
occurrence of any default by Borrower or its Affiliate under such Material
Operating Agreement.

(f)                                    Borrower
and/or its Affiliates (as applicable) shall (subject to any applicable Legal
Requirements) promptly execute, acknowledge and deliver to Lender such
instruments as may reasonably be required to permit Lender to cure any default
under any Material Operating Agreement or permit Lender to take such other
action required to enable Lender to cure or remedy the matter in default and
preserve the security interest of Lender under the Loan Documents with respect
to the Property.  Upon the occurrence and
during the continuance of an Event of Default, Borrower irrevocably appoints
Lender as its true and lawful attorney-in-fact to do, in its name or otherwise,
any and all acts and to execute any and all documents that are necessary to
preserve any rights of Borrower or its Affiliates under or with respect to any
Material Operating Agreement, including, without limitation, the right to
effectuate any extension or renewal of any Material Operating Agreement, or to
preserve any rights of Borrower of its Affiliates whatsoever in respect of any
part of any Material Operating Agreement (and the above powers granted to
Lender are coupled with an interest and shall be irrevocable).

(g)                                 With
respect to any Material Operating Agreement, Borrower shall, from time to time
(but not more often than four (4) times in any twelve (12) month period unless
an Event of Default then exists in which case such limit shall not apply), upon
ten (10) Business Days’ prior written request from Lender, execute, acknowledge
and deliver to Lender, a statement containing the following:  (A) a statement that such Material Operating
Agreement is unmodified and in full force and effect or, if there have been
modifications, that the Material Operating Agreement is in full force and
effect as modified and setting forth such modifications, (B) a statement that
either such Borrower or its Affiliate (as applicable) is not in default
thereunder beyond any applicable grace, cure or notice period or, if any such
default shall exist thereunder, a description of such default and the steps
being taken to cure such default, (C) a statement that, to Borrower’s
knowledge, either the other party thereto is not in default thereunder beyond
any applicable grace, cure or notice period or, if any such default shall exist
thereunder, a description of such default and the steps being taken to cure
such default and (D) such other information with respect to the Material
Operating Agreement as Lender shall reasonably request.

(h)                                 With
respect to any Material Operating Agreement, Borrower shall use commercially
reasonable efforts to deliver to Lender from time to time (provided that
Borrower shall not be required to deliver such certificates more frequently
than four times in any calendar year) within twenty (20) Business Days of
Lender’s request, a certificate from each party to such Material Operating
Agreement other than Borrower or its Affiliates containing the following:  (A) a statement that such Material Operating
Agreement is unmodified and in full force and effect or, if there have been
modifications, that the Material Operating Agreement is in full force and
effect as modified and setting forth such modifications, (B) a statement that
either such other party is not in default thereunder beyond any applicable
grace, cure or notice period or, if any such default shall exist thereunder, a
description of such default and the steps being taken to cure such default, (C)
a statement that, to such party’s knowledge, either the Borrower or its
Affiliate (as applicable) is not in default thereunder beyond any applicable
grace, cure or notice period or, if any such default shall exist thereunder, a
description of such default and the steps being taken to cure such default and
(D) such other information with respect to such other party and/or Material
Operating Agreement as Lender shall reasonably request.

 

 130

 

5.1.26.     Operation of Casino Component.

(a)           Subject
to Excusable Delay, Borrower shall at all times operate the Casino Component in
accordance with applicable Legal Requirements and shall continue to possess and
maintain all licenses, permits and Governmental Approvals necessary to the
lawful operation of the Casino Component as a casino. Borrower shall not take
or permit any action that would adversely affect the status or good standing of
Borrower under such licenses, permits or Governmental Approvals.

(b)           Borrower
shall obtain, as promptly as practicable following the date hereof, the
applicable approvals of the Gaming Authorities required to authorize or
continue the pledge of, and grant of security interest in, the interests in
OpBiz under the OpBiz Pledge Agreement, and shall promptly execute any and all
such instruments and documents, deliver any certificates and do all such other
acts or things deemed necessary, appropriate or desirable by the Gaming
Authorities to obtain such approvals.

(c)           Promptly
after and, in any event, within 30 days after, the Closing Date, Borrower will
submit or cause to be submitted complete Gaming Applications, filings and other
submissions required by the Gaming Authorities or pursuant to any Gaming Laws
(i) to obtain all approvals necessary to cause the effectiveness of any
Security Instrument, the OpBiz Pledge Agreement and to confer the full
benefits, rights, and powers granted therein to Lender and (ii) to obtain all
necessary Gaming Licenses related to the appointment of any Independent
Person.  Borrower will timely pay all
Gaming Application fees, investigative fees and costs required by the Gaming
Authorities with respect to these approvals and licenses.  Borrower will diligently and comprehensively
respond to any inquiries and requests from the Gaming Authorities and promptly
file or cause to be filed any additional information required in connection
with such Gaming Applications or filings as soon as practicable after receipt
of requests therefore.

(d)           OpBiz
hereby acknowledges and agrees that the Casino Component Lease and any and all
rights and interests (whether choate or inchoate and including, without
limitation, all mechanic’s and materialmen’s liens under applicable law) owed,
claimed or held, by OpBiz thereunder or otherwise in and to the Casino
Component, are and shall be in all respects subordinate and inferior to the
liens and security interests created, or to be created, for the benefit of
Lender, and securing the repayment of the Note and the performance of the
obligations under this Agreement and the other Loan Documents, and all
renewals, extensions, increases, supplements, amendments, modifications or
replacements thereof.

(e)           OpBiz
agrees that upon the occurrence of an Event of Default under the Loan Documents,
OpBiz shall, at the request of Lender, continue to perform all of OpBiz’s
obligations under the terms of the Casino Component Lease with respect to the
Casino Component.  Further, OpBiz agrees
that upon and after foreclosure, deed in lieu of foreclosure or other similar
transfer of the Casino Component to Lender, its designee or nominee, OpBiz
shall not exercise any right to terminate the Casino Component Lease other than
due to any default or breach by Lender, its designee or nominee first occurring
thereafter pursuant to the terms of the Casino Component Lease and, at the
request of Lender, shall continue to operate and manage the Casino Component
and maintain all applicable Gaming Licenses and comply with all applicable
Gaming Laws with respect to the Property for a period not to exceed twelve (12)
months after the effective date of 

 131
 

such transfer, either in accordance with the terms of the Casino
Component Lease or pursuant to a Management Agreement in form and substance
reasonably acceptable to Lender provided that (i) to the extent such continued
operation is conducted pursuant to the Casino Component Lease, OpBiz shall be
obligated to pay a then market rate rent thereunder which is reasonable and
customary for similar properties in similar locations as the Casino Component,
(ii) to the extent such continued operation is conducted pursuant to a
Management Agreement, Lender, its designee or nominee shall pay to OpBiz a then
market rate management fee which is reasonable and customary for similar properties
in similar locations as the Casino Component, and (iii) all other terms and
arrangements shall be usual and customary for similar properties in similar
locations as the Casino Component and, to the extent required under applicable
gaming Laws, subject to the prior review and/or approval of the Gaming
Authorities.  It is hereby expressly
acknowledged that OpBiz shall not be in breach or default of its obligations
hereunder if and to the extent that insufficient funds are made available to it
from the operation of the Property or other sources (other than any Affiliate
of Borrower) to continue to operate the Casino Component in the manner
contemplated hereunder.

(f)            Notwithstanding
the foregoing, at any time after foreclosure, deed in lieu of foreclosure or
other similar transfer of the Casino Component to Lender, its designee or
nominee,  at the option of Lender
exercised by written notice to OpBiz, Lender, its designee or nominee shall
have the right to terminate the Casino Component Lease or any Management
Agreement with OpBiz without penalty or termination fee (except that OpBiz
shall be entitled to receive any unpaid amounts that relate to the period prior
to such termination) and, in connection with the foregoing, OpBiz shall
transfer its responsibility for the management of the Casino Component to a
replacement operator selected by Lender.

(g)          
Following an Event of Default and acceleration of the Loan, Lender may elect,
upon written notice delivered to the applicable Person, to require Borrower,
MezzCo, or both to relinquish one or more or all of the Gaming Licenses held by
such 

Person(s).  If either such Person fails
or refuses to so relinquish such Gaming Licenses within five (5) Business Days
after receipt of such written notice, then Lender is hereby appointed (which
appointment is coupled with an interest) as Borrower’s and MezzCo’s attorney in
fact with full authority to relinquish each such Gaming License on each such
Person’s behalf.

(h)           OpBiz
agrees to (a) execute such affidavits and certificates as Lender shall require
to further evidence the agreements herein contained, (b) on request from
Lender, furnish Lender with copies of such information as Borrower is entitled
to receive under the Casino Component Lease and (c) cooperate with Lender’s
representative in any inspection of all or any portion of the Casino Component.

Section 5.2.            Negative Covenants.  From the date hereof until payment and
performance in full of all obligations of Borrower under the Loan Documents or
the earlier release of the Lien of the Security Instrument in accordance with
the terms of this Agreement and the other Loan Documents, Borrower covenants
and agrees with Lender that it will not do, directly or indirectly, any of the
following:

 

 132
 

5.2.1.       Operation
of Property.

(a)           Borrower
shall not, without Lender’s prior consent (which consent shall not be
unreasonably withheld): (i) surrender, terminate or cancel any Management
Agreement; provided, that Borrower may, without Lender’s
consent, replace any Manager so long as (A) the replacement manager is a
Qualified Manager pursuant to a Replacement Management Agreement, and (B)
Borrower and such replacement Manager shall execute and deliver an Assignment
of Management Agreement with respect to such Replacement Management Agreement
that satisfies the requirements set forth herein; (ii) reduce or consent to the
reduction of the term of any Management Agreement; (iii) increase or
consent to the increase of the amount of any charges under any Management
Agreement; or (iv) otherwise modify, change, supplement, alter or amend,
or waive or release any of its rights and remedies under, any Management
Agreement in any material respect.

(b)           Following
the occurrence and during the continuance of an Event of Default, Borrower
shall not exercise any rights, make any decisions, grant any approvals or
otherwise take any action under any Management Agreement without the prior
consent of Lender, which consent may be withheld in Lender’s sole discretion.

(c)           Borrower
may, without Lender’s consent, replace the existing operator of the TPA
Component so long as (i) the replacement manager is a Qualified Manager
pursuant to a Replacement Management Agreement or a Lease (such Lease being
deemed to constitute a Material Operating Agreement for the purpose of this
Agreement) approved by Lender in accordance with the terms hereof, (ii) if such
replacement operator is engaged pursuant to a Replacement Management Agreement,
Borrower and such replacement Manager shall execute and deliver an Assignment
of Management Agreement with respect to such Replacement Management Agreement
that satisfies the requirements set forth herein, and (iii) if such replacement
operator is engaged pursuant to a Lease, Borrower and such replacement Manager
shall execute and deliver a subordination, nondisturbance and attornment
agreement in connection with such Lease, such agreement to be in Lender’s then
usual and customary form and otherwise reasonably acceptable to Lender in all
respects.

(d)           OpBiz
agrees that upon the occurrence of an Event of Default under the Loan
Documents, OpBiz shall, at the request of Lender, continue to perform all of
OpBiz’s obligations under the terms of the Hotel Component Lease with respect
to the Hotel Component.  Further, OpBiz
agrees that upon and after foreclosure, deed in lieu of foreclosure or other
similar transfer of the Hotel Component to Lender, its designee or nominee,
OpBiz shall not exercise any right to terminate the Hotel Component Lease other
than due to any default or breach by Lender, its designee or nominee first
occurring thereafter pursuant to the terms of the Hotel Component Lease and, at
the request of Lender, shall continue to operate and manage the Hotel Component
and maintain all applicable liquor licenses and comply with all applicable laws
with respect to the Property for a period not to exceed twelve (12) months
after the effective date of such transfer, either in accordance with the terms
of the Hotel Component Lease or pursuant to a Management Agreement in form and
substance reasonably acceptable to Lender provided that (i) to the extent such
continued operation is conducted pursuant to the Hotel Component Lease, OpBiz
shall be obligated to pay a then market rate rent thereunder which is
reasonable and customary for similar properties in similar locations as the
Hotel Component, (ii) to the extent such continued operation is conducted
pursuant to a Management Agreement, Lender, its designee or nominee shall pay
to OpBiz a then market rate management fee which is reasonable 

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and customary for similar properties in similar locations as the Hotel
Component, and (iii) all other terms and arrangements shall be usual and
customary for similar properties in similar locations as the Hotel
Component.  It is hereby expressly
acknowledged that OpBiz shall not be in breach or default of its obligations
hereunder if and to the extent that insufficient funds are made available to it
from the operation of the Property or other sources (other than any Affiliate
of Borrower) to continue to operate the Hotel Component in the manner
contemplated hereunder.

(e)           Notwithstanding
the foregoing, at any time after foreclosure, deed in lieu of foreclosure or
other similar transfer of the Hotel Component to Lender, its designee or
nominee,  at the option of Lender
exercised by written notice to OpBiz, Lender, its designee or nominee shall
have the right to terminate the Hotel Component Lease or any Management
Agreement with OpBiz without penalty or termination fee (except that OpBiz
shall be entitled to receive any unpaid amounts that relate to the period prior
to such termination) and, in connection with the foregoing, OpBiz shall
transfer its responsibility for the management of the Hotel Component to a
replacement operator selected by Lender.

(f)            Following
an Event of Default and acceleration of the Loan, Lender may elect, upon
written notice delivered to the applicable Person, to require Borrower, MezzCo,
or both to relinquish one or more or all of the liquor licenses held by such
Person(s).  If either such Person fails
or refuses to so relinquish such liquor licenses within five (5) Business Days
after receipt of such written notice, then Lender is hereby appointed (which
appointment is coupled with an interest) as Borrower’s and MezzCo’s attorney in
fact with full authority to relinquish each such liquor licenses on each such
Person’s behalf.

(g)           OpBiz
agrees to (a) execute such affidavits and certificates as Lender shall require
to further evidence the agreements herein contained, (b) on request from Lender,
furnish Lender with copies of such information as Borrower is entitled to
receive under the Hotel Component Lease and (c) cooperate with Lender’s
representative in any inspection of all or any portion of the Hotel Component.

5.2.2.       Liens.  Borrower shall
not create, incur, assume or suffer to exist any Lien on any portion of the
Property or permit any such action to be taken, except Permitted Encumbrances.

5.2.3.       Dissolution. 
Borrower shall not (a) to the fullest extent permitted by
applicable law, engage in any dissolution, liquidation or consolidation or
merger with or into any other business entity, (b) engage in any business
activity not related to the ownership and operation of the Property,
(c) transfer, lease or sell, in one transaction or any combination of
transactions, the assets or all or substantially all of the properties or
assets of Borrower except to the extent permitted by the Loan Documents, or
(d) unless required by applicable law, modify, amend, waive or terminate
its organizational documents or its qualification and good standing in any
jurisdiction.  No Borrower Party shall
(i) dissolve, wind up or liquidate or take any action, or omit to take an
action, as a result of which such Borrower Party would be dissolved, wound up
or liquidated in whole or in part, or (ii) amend, modify, waive or
terminate the certificate of incorporation or bylaws of such Borrower Party, in
each case, without obtaining the prior consent of Lender.

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5.2.4.       Change in Business. 
Borrower shall not enter into any line of business other than the
ownership and operation of the Property, or make any material change in the
scope or nature of its business objectives, purposes or operations, or
undertake or participate in activities other than the continuance of its
present business other than the operations contemplated by the Renovation
Project Plan and any Timeshare Project Plan.

5.2.5.       Debt Cancellation. 
Borrower shall not cancel or otherwise forgive or release any claim or
debt (other than termination of Leases in accordance herewith) owed to Borrower
by any Person, except for adequate consideration and in the ordinary course of
Borrower’s business.

5.2.6.       Zoning.  Except
with respect to the Renovation Project or the Timeshare Project, Borrower shall
not initiate or consent to any zoning reclassification of any portion of the
Property or seek any variance under any existing zoning ordinance or use or
permit the use of any portion of the Property in any manner that could result
in such use becoming a non-conforming use under any zoning ordinance or
any other applicable land use law, rule or regulation, without the prior
consent of Lender.

5.2.7.       No Joint Assessment. 
Borrower shall not suffer, permit or initiate the joint assessment of
the Property (a) with any other real property constituting a tax lot separate
from the Property, and (b) which constitutes real property with any portion of
the Property which may be deemed to constitute personal property, or any other
procedure whereby the lien of any taxes which may be levied against such
personal property shall be assessed or levied or charged to such real property
portion of the Property.

5.2.8.       Principal Place of Business and Organization.  Borrower shall not change its principal place
of business set forth in the introductory paragraph of this Agreement without
first giving Lender thirty (30) days prior notice.  Borrower shall not change the place of its
organization as set forth in Section 4.1.27 without the consent of
Lender, which consent shall not be unreasonably withheld.  Upon Lender’s request, Borrower shall execute
and deliver additional financing statements, security agreements and other
instruments which may be necessary to effectively evidence or perfect Lender’s
security interest in the Property as a result of such change of principal place
of business or place of organization. 
Borrower’s principal place of business and chief executive office, and
the place where Borrower keeps its books and records, including recorded data
of any kind or nature, regardless of the medium or recording, including
software, writings, plans, specifications and schematics, has been for the
preceding four months (or, if less, the entire period of the existence of
Borrower) and will continue to be the address of Borrower set forth at the
introductory paragraph of this Agreement (unless Borrower notifies Lender in
writing at least thirty (30) days prior to the date of such change).

5.2.9.       Distributions to Affiliates.  Borrower shall not make any distributions to,
or otherwise pay any dividends or make any payments to, any Restricted Party or
Guarantor, either (a) during any month while any obligations under the Loan
Documents remain outstanding unless and until the payments specified in clauses
(i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) of Section 2.6.4(a)
with respect to such month (whether or not due or payable in the ordinary
course of business during such month) have been made with sufficient funds on
deposit in the Cash Management Account, or (b) during any Excess Cash Flow
Sweep Period (except to the extent permitted under Section 2.6.4(a)(ix)).
Notwithstanding the foregoing restrictions of this Section 

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5.2.9, Borrower
shall be entitled to distribute Timeshare Project Proceeds subject to, and in
accordance with, the conditions and requirements set forth in Section 7.6.

5.2.10.     Transfers.

(a)           Borrower
acknowledges that Lender has examined and relied on the experience of Borrower
and its stockholders, general partners, members, principals and (if Borrower 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 Borrower’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 obligations
contained in the Loan Documents. 
Borrower acknowledges that Lender has a valid interest in maintaining
the value of the Property so as to ensure that, should Borrower default in the
repayment of the Debt or the performance of the obligations contained in the
Loan Documents, Lender can recover the Debt by a sale of the Property.

(b)           Without
the prior consent of Lender and except to the extent otherwise set forth in
this Section 5.2.10 and Section 5.2.11, Borrower shall not,
and shall not permit any Restricted Party to, (i) sell, convey, mortgage,
grant, bargain, encumber, pledge, assign, grant options with respect to, or
otherwise transfer or dispose of (directly or indirectly, voluntarily or
involuntarily, by operation of law or otherwise, and whether or not for
consideration or of record) the Property or any part thereof or any legal or
beneficial interest therein or (ii) permit a Sale or Pledge of an interest
in any Restricted Party (collectively, a “Transfer”), other than
pursuant to Leases of space in the Improvements to tenants in accordance with
the provisions of Section 5.1.20. 
For the purposes of this Section 5.2.10, any removal from the
Property of memorabilia or other personal property provided to Borrower for use
or display at the Property pursuant to the terms of the PH License Agreement
(other than any replacement of the same in accordance with the terms hereof)
shall be deemed to constitute a Transfer of a part of the Property and shall
require the prior written consent of Lender in its reasonable discretion in
each instance.

(c)           A
Transfer shall include, but not be limited to, (i) an installment sales
agreement wherein Borrower agrees to sell the Property or any part thereof for
a price to be paid in installments; (ii) an agreement by Borrower leasing
all or a substantial part of the Property for other than actual occupancy by a
space tenant thereunder or a sale, assignment or other transfer of, or the
grant of a security interest in, Borrower’s right, title and interest in and to
any Leases or any Rents; (iii) if a Restricted Party is a corporation, any
merger, consolidation or Sale or Pledge of such corporation’s stock or the
creation or issuance of new stock; (iv) if a Restricted Party is a limited
or general partnership or joint venture, any merger or consolidation or the
change, removal, resignation or addition of a general partner or the Sale or
Pledge of the partnership interest of any general partner or any profits or
proceeds relating to such partnership interest, or the Sale or Pledge of
limited partnership interests or any profits or proceeds relating to such
limited partnership interest or the creation or issuance of new limited
partnership interests; (v) if a Restricted Party is a limited liability
company, any merger or consolidation or the change, removal, resignation or
addition of a managing member or non-member manager (or if no managing
member, any member) or the Sale or Pledge of the membership interest of a
managing member (or if no managing member, any member) or any profits or
proceeds relating to such membership interest, or the Sale or Pledge of non-managing
membership interests or the creation or issuance of new non-managing
membership interests; (vi) if a Restricted Party is a trust or 

 136
 

nominee trust, any merger, consolidation or the Sale or Pledge of the
legal or beneficial interest in a Restricted Party or the creation or issuance
of new legal or beneficial interests; or (vii) the removal or the
resignation of the managing agent (including, without limitation, an Affiliated
Manager) other than in accordance with Section 5.1.23.

(d)           Notwithstanding
the foregoing provisions of this Section 5.2.10, but subject to the
satisfaction of all conditions set forth or referenced in this Section
5.2.10(d), Lender’s consent shall not be required in connection with any of
the following Transfers (each a “Permitted Transfer”):

(i)            the Transfer, in
one or a series of transactions, of not more than 49% in the aggregate of the
indirect interests in either Borrower in the aggregate; provided that after
giving effect to such Transfer and any other Transfers, no Change of Control
shall occur;

(ii)           the Transfer, in
one or a series of transactions, of any direct or indirect interests in any
Restricted Party to any other Restricted Party, any Affiliate of a Restricted
Party or to any direct or indirect member or partner of any Restricted Party
provided that after giving effect to such Transfer and any other Transfers, no
Change of Control shall occur;

(iii)          any Transfer by
maintenance, devise or bequest or by operation of law upon the death of a
natural person that was the holder of any direct or indirect interest in any
Restricted Party to a member of the immediate family of such person or a trust
established for the benefit of such immediate family member, provided that
after giving effect to such Transfer and any other Transfers, no Change of
Control shall occur;

(iv)          the granting of the
MezzCo Warrants to the MezzCo Warrantholders pursuant to the MezzCo Warrant
Documents, and any Transfer of up to 37.5% in the aggregate of the direct
interests in MezzCo as a result of any exercise of the MezzCo Warrants,
provided that after giving effect to such Transfer and any other Transfers, no
Change of Control shall occur;

(v)           the granting of the
EquityCo Warrants to the EquityCo Warrantholders pursuant to the EquityCo
Warrant Documents, and any Transfer of up to 2.5% in the aggregate of the
direct interests in EquityCo as a result of any exercise of the MezzCo Warrants,
provided that after giving effect to such Transfer and any other Transfers, no
Change of Control shall occur;

(vi)          the granting of the
Executive Options to executive employees of OpBiz, and any Transfer of up to
10% in the aggregate of the direct interests in EquityCo as a result of any
exercise of the Executive Options, provided that after giving effect to such
Transfer and any other Transfers, no Change of Control shall occur;

(vii)         the Transfer, in one
or a series of transactions, of any direct or indirect interests in any BH
Guarantor provided that after giving effect to such Transfer and any other
Transfers, no Change of Control shall occur; and

 137
 

(viii)        any arm’s-length
sale of Personal Property by Borrower to a third party in the ordinary course
of business and any disposition of Equipment and FF&E which is being
replaced in the ordinary course of business or is otherwise no longer necessary
or is immaterial.

Notwithstanding the
foregoing, each of the Permitted Transfers set forth in this Section 5.2.10(d)
shall be subject to, and Lender’s agreement to permit the same without specific
consent, shall be conditioned upon the satisfaction of the following
conditions:

(A)          if such Transfer
(either individually or in the aggregate with any prior Transfers) would result
in a Change in Control of any Restricted Party, Lender shall receive not less
than ten (10) Business Days prior written notice from Borrower of such
Transfer;

(B)           if such Transfer is
of a direct interest in any Restricted Party (other than any Guarantor), Lender
shall receive not less than ten (10) Business Days prior written notice from
Borrower of such Transfer;

(C)           if such Transfer
(either individually or in the aggregate with any prior Transfers) would result
in any Sponsor no longer holding any direct or indirect interest in any
Restricted Party, Lender shall receive not less than ten (10) Business Days
prior written notice from Borrower of such Transfer;

(D)          if neither of the
circumstances set forth in clauses (A), (B) or (C) shall apply with respect to
such Transfer, Lender shall receive written notice of such Transfer from
Borrower within ten (10) Business Days following the effective date of such
Transfer; provided that, no such notice shall be required with respect to any
Transfer of a direct or indirect interest in any Guarantor or Starwood NH
unless the same shall result, either individually or in the aggregate with any
prior Transfers, in a change in Control with respect to such Guarantor or
Starwood NH;

(E)           if after giving
effect to any Permitted Transfer, more than forty-nine percent (49%) in the
aggregate of the direct or indirect interests in a Restricted Party are owned
by a Person and its Affiliates that owned less than forty-nine percent (49%) of
the direct or indirect interests in such Restricted Party as of the Closing
Date, a Rating Agency Confirmation shall have been obtained and, no less than
thirty (30) days prior to the effective date of any such Transfer, Borrower
shall deliver to Lender an Additional Insolvency Opinion acceptable to Lender
and the Rating Agencies;

(F)           no Permitted
Transfer (either individually or in the aggregate with any prior Transfers)
shall cause or otherwise result in the termination, revocation and/or
suspension of any Gaming License or otherwise have any material and adverse
effect on the ability of OpBiz to operate the Casino Component in accordance
with all applicable Gaming Laws;

 138
 

(G)           no such Permitted
Transfer of a direct interest in any Restricted Party or of an indirect
interest in a Restricted Party that results in a Change of Control of such
Restricted Party shall be to any Disqualified Transferee; and

(H)          no such Permitted
Transfer shall result, directly or indirectly, either individually or in the
aggregate, in any Disqualified Transferee being in Control of any Restricted
Party or having a direct interest in a Restricted Party.

5.2.11.     Timeshare Project.

(a)           It
is hereby acknowledged and agreed that, subject to the provisions set forth in
this Section 5.2.11, each of Borrower, TSP Owner and any Affiliate of
the foregoing (as applicable) shall have the right in its sole discretion to
(i) sell the Timeshare Project Property to any Person that is not an Affiliate
of Borrower (a “Timeshare Project Sale”) upon terms that do not
contemplate any continuing involvement or obligations of Borrower or TSP Owner
after the closing thereof (other than usual and customary indemnification
obligations with respect to seller representations and prorations), (ii) enter
into any Timeshare Project upon terms that are contemplated within the
parameters described on Schedule X or such other terms that are more
favorable to Borrower and TSP Owner with any Person that is not an Affiliate of
Borrower (a “Schedule X Project”), or (iii) with the prior written
consent of Lender (such consent not to be unreasonably withheld, conditioned or
delayed), enter into any other Timeshare Project.

(b)           Notwithstanding
anything to the contrary set forth herein, neither Borrower, TSP Owner nor any
Affiliate of the foregoing (as applicable) shall commence, or cause or permit
any other Person to commence, any aspect or component of any Timeshare Project
or to execute, deliver, enter into or otherwise agree to be bound by any
Timeshare Project Document, unless the following conditions are and remain
satisfied (or waived by Lender in its sole discretion):

(i)            except with respect
to a Timeshare Project Sale or a Schedule X Project, Lender shall have received
a Timeshare Project Plan, together with a true, correct and complete copy of
all Timeshare Project Documents as and when the same shall be available,
together with any other information or documentation reasonably requested by
Lender;

(ii)           the execution and
delivery of each Timeshare Project Document and the consummation of the
transactions contemplated thereby will not have a Material Adverse Effect or
adversely effect the status of any SPE Entity as a Special Purpose Entity;

(iii)          (except with
respect to a Timeshare project Sale or a Schedule X Project) all Timeshare
Project Documents shall have been negotiated on an arms’-length basis and that
the terms thereof are commercially reasonable;

(iv)          except with respect
to a Timeshare Project Sale, the applicable Timeshare Project Documents shall
provide that such Timeshare Project be constructed, operated, maintained and
managed in accordance with standards of at least qualitatively equal to the
Property in all material respects;

 

 139

 

 

(v)           except with respect to a Timeshare
Project Sale, the Timeshare Project shall not include any hotel, casino,
entertainment or other component that would directly or indirectly compete with
any material portion of the Property, or otherwise reasonably be expected to
result in any decrease in expected revenues arising therefrom in any material
respect, unless such competing component is operated by and for the benefit of
Borrower and the proceeds and all revenues arising therefrom are payable to
Borrower for its own account and are subject to a security interest in favor of
Lender pursuant to the Loan Documents;

(vi)          except with respect to a Timeshare
Project Sale, with respect to any material Timeshare Project Document to which
Borrower, TSP Owner or any Affiliate thereof is a party or beneficiary or is
otherwise directly or indirectly bound, Lender shall have received a written
acknowledgment in form and substance reasonably acceptable to Lender or other
evidence reasonably satisfactory to Lender from each counterparty to each such
Timeshare Project Document (other than Borrower, TSP Owner or any Affiliate)
confirming that: (I) such counterparty is aware of the existence of the Loan
and the security interests and other rights of Lender under the Loan Documents,
(II) any foreclosure or other similar action by Lender under any of the Loan
Documents will not result in a breach of the terms of the Timeshare Project
Document(s) applicable to such counterparty or otherwise entitle such
counterparty to terminate the same or exercise any other remedies thereunder,
and (III) in the event that Lender shall foreclose on all or any portion of the
Collateral, such party shall recognize Lender as successor in interest to
Borrower thereunder and shall accept performance by Lender thereunder;

(vii)         no Event of Default shall have occurred
and then be continuing;

(viii)        Lender shall have the benefit of a fully
enforceable first priority security interest in any Timeshare Project Document
to which Borrower or TSP Owner is a party any and all Timeshare Project
Proceeds;

(ix)           except with respect to a Timeshare
Project Sale or Schedule X Project, Lender shall have received such other
approvals, opinions, documents and information in connection with the
applicable Timeshare Project and Timeshare Project Documents as may be
requested by the Rating Agencies if the Loan is part off Securitization, or if
any portion of the Loan is not part of a Securitization, as reasonably
requested by the holder of such portion applying the requirements of Lender;
and

(x)            Borrower shall have paid or
reimbursed Lender for all out-of-pocket costs and expenses actually incurred by
Lender (including, without limitation, reasonable fees and disbursements of
outside counsel) in connection with the foregoing and Borrower shall have paid
all recording charges, filing fees, taxes or other expenses (including, without
limitation, mortgage and intangibles taxes and documentary stamp taxes) payable
in connection therewith; and

(c)           Except with respect
to a Timeshare Project Sale, Lender’s prior approval shall be required in
connection with the execution and delivery by Borrower, TSP Owner or any
Affiliate thereof of any material Timeshare Project Document (or any renewal,
waiver, amendment,

 140
 

modification
or termination thereof) other than usual and customary contracts, agreements
and arrangements entered into with third parties that, when taken as a whole
with all other agreements relating to the Timeshare Project, are entered into
on an arm’s-length basis in the ordinary course of business; provided however,
that in all instances, Lender’s prior approval shall be required in connection
with the following:

(i)            any Timeshare Project Document
between Borrower, TSP Owner or any Affiliate thereof and one or more Affiliates
of Borrower, TSP Owner or an Affiliate thereof;

(ii)           other than to the effect expressly
contemplated by Schedule X, the terms and provisions of any Timeshare
Project Document between any Person and any Affiliate of Borrower, other than
an agreement on terms that are fair and commercially reasonable in all material
respects and are no less favorable to such Person than would be obtained in a
comparable arm’s-length transaction with an unrelated third party;

(iii)          any Timeshare Project Document that,
by its terms or as a result of the consummation of any of the transactions
contemplated thereby would reasonably estimation be expected to have a Material
Adverse Effect;

(iv)          any Timeshare Project Document that
imposes a material obligation or liability on Borrower or TSP Owner, including,
without limitation, any Timeshare Project Document that (I) creates an easement
that burdens the Property or any portion thereof, (II) provides any Person with
access to, through, on, over, across, under or above the Property or any
portion thereof, (III) creates a restrictive covenant with respect to the
Property or a portion thereof or (IV) establishes any arrangement pursuant to
which Borrower or TSP Owner is intended to provide material management or
operational services (Lender hereby acknowledging that the specific terms set
forth on Schedule X are acceptable to Lender); and

(v)           any Timeshare Project Document that
by its terms or as a result of the consummation of any of the transactions
contemplated thereby would reasonably be expected to have a material adverse
effect on (i) the business, profits, operations or financial condition of
either the Casino Component or the Hotel Component, (iv) the enforceability or
validity of any security interest or the perfection or priority of any Lien
created under any Loan Document with respect to any Timeshare Project Proceeds
or other rights and interests of Borrower or any of its Affiliates relating to
the Timeshare Project, or (v) the rights, interests and remedies of Lender
under the Loan Documents with respect to any Timeshare Project Proceeds or
other rights and interests of Lender relating to the Timeshare Project taken as
a whole.

Any request for an approval by Lender required pursuant to the terms of
this Section 5.2.11(c) shall be delivered to Lender in writing and shall
include a copy of the proposed Timeshare Project Document or renewal, waiver,
amendment, modification or termination and Lender shall so advise whether such
approval is granted or denied within ten (10) Business Days after receipt of
such written request.  Provided that the
request is accompanied by a notice, which provides in upper case bold-faced
type:  “THIS IS A REQUEST FOR AN APPROVAL
WITH 

 141
 

RESPECT TO A
TIMESHARE PROJECT DOCUMENT.  IF LENDER
FAILS TO RESPOND WITHIN 10 BUSINESS DAYS OF THE EFFECTIVENESS OF THIS NOTICE,
THE REQUESTED ACTION WITH RESPECT TO THE TIMESHARE PROJECT DOCUMENT WILL BE
DEEMED APPROVED”, if Lender shall not so advise of its determination within
such ten (10) Business Day period (notice by facsimile on the same day being
acceptable for this purpose), the proposed Timeshare Project Document or
renewal, waiver, amendment, modification or termination thereof shall be deemed
approved by Lender.  If Lender shall deny
any such request for approval, Lender shall specify the reasons for its refusal
to grant approval.  By its execution of
this Agreement, Lender hereby acknowledges and agrees that it has approved all
Timeshare Project Documents in effect as of the Closing Date in the form
delivered to Lender on or prior to the Closing Date.

(d)           Borrower hereby
represents and warrants to Lender that, on or prior to the date hereof,
Borrower has caused to be delivered to Lender a true, correct and complete copy
of all Timeshare Project Documents in effect on the date hereof.  As of the date hereof, no events or
circumstances exist which, with or without the giving of notice, the passage of
time or both, would be reasonably likely to constitute a default of any covenant
or obligation on the part of any party under any Timeshare Project Documents
which could reasonably be expected to have a Material Adverse Effect.

(e)           From the date hereof
and until payment and performance in full of all obligations of Borrower under
the Loan Documents or the earlier release of the Lien of the Security
Instrument (and all related obligations) in accordance with the terms of this
Agreement and the other Loan Documents, Borrower hereby covenants and agrees
with Lender that:

(i)            In the event that Borrower, TSP
Owner and/or any Affiliate of the foregoing (as applicable) shall determine to
proceed with any Timeshare Project, Borrower shall consult with Lender and,
from time to time at Lender’s request, shall keep Lender informed as to the
progress and status of all negotiations with any other Persons as to the terms
of the Timeshare Project and any other material matters relating thereto;

(ii)           Borrower shall and shall cause TSP
Owner and any Affiliates of Borrower or TSP Owner to, in a commercially
reasonable manner, observe and perform its obligations under the Timeshare
Project Documents;

(iii)          Borrower shall and shall cause TSP
Owner and any Affiliates of Borrower or TSP Owner to permit agents,
representatives and employees of Lender to inspect the Timeshare Project Land
or any part thereof at reasonable hours upon reasonable advance notice;
provided that such inspections do not materially interfere with any Timeshare
Project;

(iv)          Promptly after learning of same,
Borrower shall and shall cause TSP Owner and any Affiliates of Borrower or TSP
Owner to notify Lender of the occurrence of any and all the following: (I) any
material default under a Timeshare Project Document, (II) any litigation or
proceeding affecting a Timeshare Project that is not fully covered by
insurance, or any proceeding in which injunctive or similar material relief is
sought, (III) any material change in a Timeshare Project, (IV) any major event
or 

 142
 

occurrence
affecting a Timeshare Project including, but not limited to any Casualty, Loss
or actual or threatened Condemnation;

(v)           Borrower shall and shall cause TSP
Owner and any Affiliates of Borrower or TSP Owner to cooperate fully with
Lender with respect to any proceedings before any court, board or other
Governmental Authority which may in any way materially and adversely affect the
rights of Lender hereunder or any rights obtained by Lender under any of the
Loan Documents and, in connection therewith, permit Lender, at its election, to
participate in any such proceedings;

(vi)          If Borrower, TSP Owner or an Affiliate
of Borrower or TSP Owner shall be in default under any Timeshare Project
Document which if uncured could reasonably be expected to result in a Material
Adverse Effect or otherwise contravene the provisions of this Section 5.2.11,
then, subject to the terms of such Timeshare Project Document, Borrower or such
Affiliate (as applicable) shall (subject to any applicable Legal Requirements)
grant Lender the right (but not the obligation), to cause the default or
defaults under such Timeshare Project Document to be remedied and otherwise
exercise any and all rights of Borrower or such Affiliate (as applicable) under
such Timeshare Project Document, as may be necessary to prevent or cure any
default provided such actions are necessary to protect Lender’s interest under
the Loan Documents, and Lender shall have the right to enter all or any portion
of the Property at such times and in such manner as Lender deems necessary, to
prevent or to cure any such default.  The
actions or payments of Lender to cure any default by Borrower or its Affiliates
under any Timeshare Project Document shall not remove or waive, as between
Borrower and Lender, any default that occurred under this Agreement by virtue
of such default by Borrower or its Affiliate under such Timeshare Project
Document.  All sums expended by Lender to
cure any such default shall be paid by Borrower to Lender, upon demand, with
interest on such sum at the rate set forth in this Agreement from the date such
sum is expended to and including the date the reimbursement payment is made to
Lender.  All such indebtedness shall be
deemed to be secured by the Security Instrument;

(vii)         Borrower shall and shall cause TSP
Owner and any Affiliates of Borrower or TSP Owner to (subject to any applicable
Legal Requirements) promptly execute, acknowledge and deliver to Lender such
instruments as may reasonably be required to permit Lender to cure any default
under any Timeshare Project Document or permit Lender to take such other action
required to enable Lender to cure or remedy the matter in default and preserve
any security interest of Lender under the Loan Documents.  Upon the occurrence and during the
continuance of an Event of Default, Borrower irrevocably appoints Lender as its
true and lawful attorney-in-fact to do, in its name or otherwise, any and all
acts and to execute any and all documents that are necessary to preserve any
rights of Borrower or its Affiliates under or with respect to any Timeshare
Project Document, including, without limitation, the right to effectuate any
extension or renewal of any Timeshare Project Document, or to preserve any
rights of Borrower of its Affiliates whatsoever in respect of any part of any
Timeshare Project Document (and the above powers granted to Lender are coupled
with an interest and shall be irrevocable); and

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(viii)        With respect to any Timeshare Project
Document, Borrower and shall cause TSP Owner and any Affiliates of Borrower or
TSP Owner to, from time to time (but not more often than four (4) times in any
twelve (12) month period unless an Event of Default then exists in which case
such limit shall not apply), upon ten (10) Business Days’ prior written request
from Lender, execute, acknowledge and deliver to Lender, a statement containing
the following:  (A) a statement that such
Timeshare Project Document is unmodified and in full force and effect or, if
there have been modifications, that the Timeshare Project Document is in full
force and effect as modified and setting forth such modifications, (B) a
statement that it is not in default thereunder beyond any applicable grace,
cure or notice period or, if any such default shall exist thereunder, a
description of such default and the steps being taken to cure such default, (C)
a statement that, to its knowledge, each party thereto is not in default
thereunder beyond any applicable grace, cure or notice period or, if any such
default shall exist thereunder, a description of such default and the steps
being taken to cure such default and (D) such other information with respect to
the Timeshare Project Document as Lender shall reasonably request.

(f)            Subject to the
terms of this Section 5.2.11(f), in connection with the consummation of
a Timeshare Project permitted hereunder, Borrower shall have the right, without
the prior consent of Lender and without violating the Loan Documents, to
Transfer the Timeshare Project Property (excluding Timeshare Project Proceeds)
to any Person (other than an Affiliate of Borrower) in accordance with the
terms and provisions of one or more Timeshare Project Documents permitted
hereunder and, in connection therewith, Borrower shall be entitled to obtain a
release of the Timeshare Project Land from the Lien of the Loan Documents,
provided that the following conditions shall be satisfied (or waived by Lender
in its sole discretion) with respect thereto:

(i)            Borrower shall submit to Lender a
written notice requesting the release of the Timeshare Project Property at
least thirty (30) days prior to the anticipated closing date of such Transfer; provided,
however, that Borrower shall have the right to revoke any such request or
extend the anticipated closing date of such Transfer as stated therein, in each
case upon giving at least five (5) Business Days’ prior written notice to
Lender of such revocation or extension;

(ii)           Borrower shall provide to Lender a
release of Lien with respect to the Timeshare Project Land for execution by
Lender, in form and substance appropriate in the relevant jurisdiction,
together with such other documentation, certificates and instruments reasonably
required by Lender in connection therewith, in each case in form and substance
acceptable to Lender in its reasonable discretion;

(iii)          Lender shall receive evidence
reasonably satisfactory to Lender that all material documentation to be
executed and delivered in connection with such Transfer of the Timeshare
Project Land, including (without limitation) all such release and other
documentation required to be executed and delivered by Lender (A) is in
compliance with all Legal Requirements in all material respects, (B) will
effect such release in accordance with the terms of this Agreement, and (C)
will not impair or otherwise 

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adversely affect the Liens, security
interests and other rights of Lender under the Loan Documents not being
released in any material respect;

(iv)          Lender shall receive a title policy
endorsement or other evidence reasonably satisfactory to Lender that there are
no new or additional subordinate Liens on the remaining Property other than
Permitted Encumbrances, dating down the effective date of the Title Insurance
Policy to the date on which the Timeshare Project Land is released and
confirming that the remaining Property is a separate tax lot;

(v)           Borrower shall deliver to Lender any
other information, approvals and documents relating to the release of the
Timeshare Project Land that would be reasonably required by a prudent lender
originating commercial loans for Securitization;

(vi)          Each applicable Governmental Authority
exercising jurisdiction over the Timeshare Project Land shall, to the extent
required by applicable Legal Requirements, have approved a lot-split ordinance
or other applicable action under local law subdividing the Timeshare Project
Land from the remainder of the Property and, following the conveyance of the
Timeshare Project Land, the Timeshare Project Land shall be a separate tax
identification number from that of the balance of the Property;

(vii)         Borrower shall deliver to Lender any
necessary cross-easements or reciprocal easement agreements that may be
necessary after the release to provide to the Property and the Timeshare
Project Land all necessary utility and other services for the use, occupancy
and operation of the Property and the Timeshare Project Land and adequate
parking and adequate, free, unimpeded and unencumbered access for pedestrian
and vehicular ingress and egress onto adjacent public roads, and as may be
necessary to ensure that the release does not violate Borrower’s obligations
under any agreement relating to the occupancy of any portion of the Property,
including (without limitation) any and all amendments or other modifications to
the REA and other Material Operating Agreements, all of the foregoing to be in
form and substance reasonably acceptable to Lender;

(viii)        All requirements under all laws,
statutes, rules and regulations (including, without limitation, all zoning and
subdivision laws, setback requirements, sideline requirements, parking ratio
requirements, use requirements, building and fire code requirements and environmental
requirements) applicable to the Property necessary to accomplish the Transfer
of the Timeshare Project Land shall have been fulfilled, and all necessary
variances, if any, shall have been obtained, and evidence thereof has been
delivered to Lender which in form and substance is appropriate for the
jurisdiction in which the Property is located and shall be approved by Lender
in its reasonable discretion;

(ix)           As a result of such Transfer of the
Timeshare Project Land, the remaining Property with all easements appurtenant
and other Permitted Encumbrances thereto will not be in violation of any
applicable Legal Requirements (including, without limitation, all zoning and
subdivision laws, setback requirements, sideline requirements, parking ratio requirements,
use requirements, building and fire code requirements and

 145
 

environmental requirements) and all necessary
variances, if any, shall have been obtained and evidence thereof has been
delivered to Lender which in form and substance is appropriate for the
jurisdiction in which the Property is located and shall be approved by Lender
in its reasonable discretion;

(x)            Borrower shall deliver an Officer’s
Certificate to the effect that the conditions set forth herein have been
satisfied and that no Event of Default shall have occurred and then be
continuing on the effective date of such release; and

(xi)           Borrower shall pay all out-of-pocket
costs and expenses (including, without limitation, reasonable attorneys’ fees
and disbursements, title insurance premiums and recording fees and charges)
actually incurred by Lender in connection with the Transfer of the Timeshare
Project Land.

(g)           With respect to any
proposed Transfer of the Timeshare Project Property, on or prior to the
scheduled closing of such Transfer, if all of the conditions set forth in Section
5.2.11(f) with respect to such Transfer have been satisfied, Lender, at the
sole cost and expense of Borrower, shall execute and deliver to Borrower the
releases, satisfactions, discharges and/or assignments, as applicable and as
reasonably requested by Borrower, of the applicable Loan Documents relating to
the Timeshare Project Property.  Upon the
closing of the Transfer to Timeshare Project Developer or any other Person of
the Timeshare Project Property as contemplated herein, all references in this
Agreement and any of the other Loan Documents to the “Property” shall be deemed
to exclude the Timeshare Project Property.

5.2.12.     Status
of Borrower.  All covenants made by
Borrower in this Agreement shall, (i) with respect to OpBiz be construed as a
covenant made by OpBiz solely with respect to itself in its capacity as a
Borrower hereunder and shall not be construed as a covenant made by OpBiz with
respect to Fee Owner, and (ii) with respect to Fee Owner, be construed as a
covenant made by Fee Owner solely with respect to itself in its capacity as a
Borrower hereunder and shall not be construed as a covenant made by Fee Owner
with respect to OpBiz; provided, however, that nothing contained in the
foregoing provisions of this Section 5.2.12 shall be deemed or construed
to effect the joint and several nature of the obligations and covenants of each
Borrower hereunder and under any of the other Loan Agreements to which each
Borrower is a party.

5.2.13.     ERISA.

(a)           Borrower shall not,
and shall cause its ERISA Affiliates to not, directly or indirectly:

(i)            engage in any transaction in
connection with which Borrower or any ERISA Affiliate could be subject to
either a material civil penalty assessed pursuant to the provisions of Section
502 of ERISA or a material tax imposed under the provisions of Section 4975 of
the Code;

(ii)           terminate any Pension Plan in a “distress
termination: under Section 4041 of ERISA, or take any other action which could
result in a material liability of Borrower or any ERISA Affiliate to the PBGC
or (y) withdraw from a Multiemployer Plan where 

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the amount of withdrawal liability incurred
in connection therewith could reasonably be expected to be material;

(iii)          fail to make payment when due of all
amounts which, under the provisions of any Plan or Multiemployer Plan, the
Borrower or any ERISA Affiliate is required to pay as contributions thereto,
or, with respect to any Pension Plan, permit to exist any “accumulated funding
deficiency” (within the meaning of Section 302 of ERISA and Section 412 of the
Code), whether or not waived, with respect thereto; or

(iv)          adopt an amendment to any Pension Plan
requiring the provision of security under Section 307 of ERISA or Section
401(a)(29) of the Code.

(b)           Borrower shall not
engage in any transaction which would cause any obligation, or action taken or
to be taken, hereunder (or the exercise by Lender of any of its rights under
the Notes, this Agreement or the other Loan Documents) to be a non exempt (under
a statutory or administrative class exemption) prohibited transaction under
ERISA.  Borrower further covenants and
agrees to deliver to Lender such certifications or other evidence from time to
time throughout the term of the Loan, as requested by Lender in its reasonable
discretion, that (i) Borrower is not an “employee benefit plan” as defined in
Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental
plan” within the meaning of Section 3(32) of ERISA; (ii) to Borrower’s knowledge,
Borrower is not in violation of any state statute regulating investments of, or
fiduciary obligations with respect to, governmental plans; and (iii) one or
more of the following circumstances is true:

(A)          Equity interests in Borrower are
publicly offered securities, within the meaning of 29 C.F.R. §2510.3 101(b)(2);

(B)           Less than twenty five percent (25%)
of each outstanding class of equity interests in Borrower is held by “benefit
plan investors” within the meaning of 29 C.F.R. §2510.3 101(f)(2); or

(C)           Borrower qualifies as an “operating
company” or a “real estate operating company” within the meaning of 29 C.F.R.
§2510.3 101(c) or (e).

ARTICLE VI.

INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

Section 6.1.            Insurance.

(a)           Borrower shall
obtain and maintain, or cause to be maintained, insurance for Borrower and the
Property providing at least the following coverages:

(i)            comprehensive all risk insurance on
the Improvements and the Personal Property, including contingent liability from
Operation of Building Laws, Demolition Costs and Increased Cost of Construction
Endorsements, in each case (A) in an amount equal to one hundred percent
(100%) of the “Full Replacement Cost,” which for purposes of this Agreement
shall mean actual replacement value (exclusive of costs of excavations,
foundations, underground utilities and footings) with a waiver of depreciation,

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(B) containing
an agreed amount endorsement with respect to the Improvements and Personal
Property waiving all co-insurance provisions; (C) providing for no
deductible in excess of $250,000 for all such insurance coverage; and
(D) containing an “Ordinance or Law Coverage” or “Enforcement” endorsement
if any of the Improvements or the use of the Property shall at any time
constitute legal non-conforming structures or uses.  In addition, Borrower shall obtain:  (x) if any portion of the Improvements
is currently or at any time in the future located in a federally designated “special
flood hazard area”, flood hazard insurance in an amount equal to the lesser of
(1) the outstanding principal balance of the Note or (2) the maximum
amount of such insurance available under the National Flood Insurance Act of
1968, the Flood Disaster Protection Act of 1973 or the National Flood Insurance
Reform Act of 1994, as each may be amended or such greater amount as Lender
shall require; (y) earthquake insurance in amounts and in form and
substance satisfactory to Lender in the event the Property is located in an
area with a high degree of seismic activity and (z) windstorm insurance in
amounts and in form and substance satisfactory to Lender in the event that the
same is excluded from the all risk insurance policy, provided that the
insurance pursuant to clauses (x), (y) and (z) shall be on terms
consistent with the comprehensive all risk insurance policy required under this
Section 6.1(a)(i);

(ii)           commercial general liability
insurance against claims for personal injury, bodily injury, death or property
damage occurring upon, in or about the Property, such insurance (A) to be
on the so-called “occurrence” form with a combined limit of not less than
$2,000,000 in the aggregate and $1,000,000 per occurrence (and, if on a blanket
policy, containing an “Aggregate Per Location” endorsement); (B) to
continue at not less than the aforesaid limit until required to be changed by
Lender in writing by reason of changed economic conditions making such
protection inadequate; and (C) to cover at least the following hazards:
(1) premises and operations; (2) products and completed operations on an “if
any” basis; (3) independent contractors; (4) blanket contractual
liability for all legal contracts; (5) contractual liability covering the
indemnities contained in Section 9.3 of this Agreement to the extent the
same is available and (b) owner’s and contractor’s protective liability;

(iii)          business income insurance (A) with
loss payable to Lender; (B) covering all risks required to be covered by
the insurance provided for in Section 6.1(a)(i);
(C) containing an extended period of indemnity endorsement which provides
that after the physical loss to the Improvements and Personal Property has been
repaired, the continued loss of income will be insured until such income either
returns to the same level it was at prior to the loss, or the expiration of six
(6) months from the date that the Property is repaired or replaced and
operations are resumed, whichever first occurs, and notwithstanding that the
policy may expire prior to the end of such period; and (D) in an amount
equal to one hundred percent (100%) of the projected gross income from the
Property for a period of eighteen (18) months from the date of such Casualty
(assuming such Casualty had not occurred) and notwithstanding that the policy
may expire at the end of such period. 
The amount of such business income insurance shall be determined prior
to the date hereof and at least once each year thereafter based on Borrower’s
reasonable estimate of debt service, continuing expenses, necessary payroll and
a fifty percent (50%) contingency factor for the succeeding eighteen (18) month
period. 

 148
 

Notwithstanding anything to the contrary in Section 2.6,
all proceeds payable to Lender pursuant to this Section 6.1(a)(iii)
shall be held by Lender and shall be applied at Lender’s sole discretion to (I)
the obligations secured by the Loan Documents from time to time due and payable
hereunder and under this Agreement or (II) Operating Expenses approved by
Lender in its sole discretion; provided, that nothing herein contained
shall be deemed to relieve Borrower of its obligations to pay the obligations
secured by the Loan Documents on the respective dates of payment provided for
in the Note and the other Loan Documents except to the extent such amounts are
actually paid out of the proceeds of such business income insurance;

(iv)          at all times during which structural
construction, repairs or alterations are being made with respect to the
Improvements, and only if the Property coverage form does not otherwise apply,
(A) owner’s contingent or protective liability insurance covering claims
not covered by or under the terms or provisions of the above mentioned
commercial general liability insurance policy; and (B) the insurance
provided for in Section 6.1(a)(i) written in a so-called
builder’s risk completed value form (1) on a non-reporting basis,
(2) against all risks insured against pursuant to Section 6.1(a)(i),
(3) including permission to occupy the Property, and (4) with an
agreed amount endorsement waiving co-insurance provisions;

(v)           worker’s compensation insurance with
respect to any employees of Borrower, as required by any Governmental Authority
or Legal Requirement, employment practices liability insurance in an amount not
less than $30,000,000 with a deductible not to exceed $250,000 per claim;

(vi)          comprehensive boiler and machinery
insurance, if applicable, in amounts as shall be reasonably required by Lender
on terms consistent with the commercial property insurance policy required
under Section 6.1(a)(i);

(vii)         umbrella liability insurance in an
amount not less than $176,000,000 per occurrence on terms consistent with the
commercial general liability insurance policy required under Section 6.1(a)(ii);

(viii)        motor vehicle liability coverage for all
owned and non-owned vehicles, including rented and leased vehicles
containing minimum limits per occurrence, including umbrella coverage, of
$177,000,000;

(ix)           if the Property is or becomes a legal
“non-conforming” use, ordinance or law coverage and insurance coverage to
compensate for the cost of demolition and rebuilding of the undamaged portion
of the Property along with any reduced value and the increased cost of
construction in amounts as requested by Lender;

(x)            the commercial property, business
income, general liability and umbrella, insurance required under Sections
6.1(a)(i), (ii), (iii) and (iv) above shall cover
perils of terrorism and acts of terrorism and Borrower shall maintain
commercial property, business income, general liability and umbrella insurance
for loss resulting from perils 

 149
 

and acts of terrorism on terms (including
amounts) consistent with those required under Sections 6.1(a)(i), (ii),
(iii) and (iv) above at all times during the term of the Loan;
and

(xi)           crime coverage in an amount not less
than $30,000,000 to protect against employee dishonesty and related incidents;
and

(xii)          upon sixty (60) days’ notice,
such other reasonable insurance and in such reasonable amounts as Lender from
time to time may reasonably request against such other insurable hazards which
at the time are commonly insured against for property similar to the Property
located in or around the region in which the Property is located.

(b)           All insurance
provided for in Section 6.1(a) shall be obtained under valid and
enforceable policies (collectively, the “Policies” or in the singular,
the “Policy”), and shall be subject to the approval of Lender as to
insurance companies, amounts, deductibles, loss payees and insureds.  The Policies shall be issued by financially
sound and responsible insurance companies authorized by applicable Governmental
Authorities to do business and having a claims paying ability rating of “A” or
better (and the equivalent thereof) by at least two (2) of the Rating Agencies
rating the Securities (one of which shall be S&P if they are rating the
Securities and one of which will be Moody’s if they are rating the Securities),
or if only one Rating Agency is rating the Securities, then only by such Rating
Agency; provided, however, that if the insurance required to be provided
pursuant to this Section 6.1 shall be obtained from a syndicate of five
(5) or more insurers, then the foregoing requirement shall not be violated if
(A) the primary layer of such insurance is provided by insurers rated “A” or
better (and the equivalent thereof), and (B) at least sixty percent (60%) of
the total insured amounts are provided by insurers rated “A” or better by
S&P, but in no event shall the rating or any insurer in such syndicate be
less than “BBB” by S&P, and a rating of “A X” or better in the current AM
Best’s Key Rating Guide.  Notwithstanding
the foregoing, Borrower may secure the final $30,000,000 coverage layer, which
represents less than 2.5% of the total insured value, through Insurance Company
of the West an insurer admitted in the state of Nevada, so long as the same
remains backed by the Nevada insurance guaranty association.  The Policies described in Section 6.1(a)
(other than those strictly limited to liability protection) shall designate
Lender as loss payee.  Not less than
ten (10) days prior to the expiration dates of the Policies theretofore
furnished to Lender, certificates of insurance evidencing the Policies
accompanied by evidence satisfactory to Lender of payment of the premiums due
thereunder (the “Insurance Premiums”), shall be delivered by Borrower to
Lender.

(c)           Any blanket
insurance Policy shall specifically allocate to the Property the amount of
coverage from time to time required hereunder and shall otherwise provide the
same protection as would a separate Policy insuring only the Property in compliance
with the provisions of Section 6.1(a).

(d)           All Policies
provided for or contemplated by Section 6.1(a), except for the
Policy referenced in Section 6.1(a)(v), shall name Borrower as the
insured and Lender as the additional insured, as its interests may appear, and
in the case of property damage, boiler and machinery, flood and earthquake
insurance, shall contain a standard non-contributing mortgagee clause in favor
of Lender providing that the loss thereunder shall be payable to Lender.

 150
 

 

(e)           All Policies
provided for in Section 6.1 shall contain clauses or endorsements
to the effect that:

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

(ii)           the Policies shall not be materially
changed (other than to increase the coverage provided thereby) or canceled
without at least thirty (30) days’ notice to Lender and any other party
named therein as an additional insured;

(iii)          the issuers thereof shall give notice
to Lender if the Policies have not been renewed fifteen (15) days prior to
its expiration; and

(iv)          Lender shall not be liable for any
Insurance Premiums thereon or subject to any assessments thereunder.

(f)            If at any time
Lender is not in receipt of written evidence that all Policies are in full
force and effect, Lender shall have the right, without notice to Borrower, to
take such action as Lender deems necessary to protect its interest in the
Property, including, without limitation, the obtaining of such insurance
coverage as Lender in its sole discretion deems appropriate.  All premiums incurred by Lender in connection
with such action or in obtaining such insurance and keeping it in effect shall
be paid by Borrower to Lender upon demand and, until paid, shall be secured by
the Security Instrument and shall bear interest at the Default Rate.

Section 6.2.            Casualty.  If the Property shall be damaged or
destroyed, in whole or in part, by fire or other casualty (a “Casualty”),
Borrower shall give prompt notice of such damage to Lender and shall promptly
commence and diligently prosecute the completion of the Restoration of the
Property as nearly as possible to the condition the Property was in immediately
prior to such Casualty, with such alterations as may be reasonably approved by
Lender and otherwise in accordance with Section 6.4.  Borrower shall pay all costs of such
Restoration whether or not such costs are covered by insurance.  Lender may, but shall not be obligated to
make proof of loss if not made promptly by Borrower.  In addition, Lender may participate in any
settlement discussions with any insurance companies (and shall approve any
final settlement) with respect to any Casualty in which the Net Proceeds or the
costs of completing the Restoration are equal to or greater than $2,500,000 and
Borrower shall deliver to Lender all instruments required by Lender to permit
such participation.

Section 6.3.            Condemnation.  Borrower shall promptly give Lender notice of
the actual or threatened commencement of any proceeding for the Condemnation of
the Property and shall deliver to Lender copies of any and all papers served in
connection with such proceedings.  Lender
may participate in any such proceedings, and Borrower shall from time to time
deliver to Lender all instruments requested by it to permit such participation.  Borrower shall, at its expense, diligently
prosecute any such proceedings, and shall consult with Lender, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such
proceedings.  

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Notwithstanding any taking by any public or quasi-public
authority through Condemnation or otherwise (including, but not limited to, any
transfer made in lieu of or in anticipation of the exercise of such taking),
Borrower shall continue to pay the Debt at the time and in the manner provided
for its payment in the Note and in this Agreement and the Debt shall not be
reduced until any Award shall have been actually received and applied by
Lender, after the deduction of expenses of collection, to the reduction or
discharge of the Debt.  Lender shall not
be limited to the interest paid on the Award by the condemning authority but
shall be entitled to receive out of the Award interest at the rate or rates
provided herein or in the Note.  If the
Property or any portion thereof is taken by a condemning authority, Borrower
shall promptly commence and diligently prosecute the Restoration of the
Property and otherwise comply with the provisions of Section 6.4.  If the Property is sold, through foreclosure
or otherwise, prior to the receipt by Lender of the Award, Lender shall have
the right, whether or not a deficiency judgment on the Note shall have been
sought, recovered or denied, to receive the Award, or a portion thereof
sufficient to pay the Debt.

Section 6.4.            Restoration.  The following provisions shall apply in
connection with the Restoration:

(a)           If the Net Proceeds
shall be less than $2,500,000 and the costs of completing the Restoration shall
be less than $2,500,000, the Net Proceeds will be disbursed by Lender to
Borrower upon receipt, provided that all of the conditions set forth in Section 6.4(b)(i)
are met and Borrower delivers to Lender a written undertaking to expeditiously
commence and to satisfactorily complete with due diligence the Restoration in
accordance with the terms of this Agreement.

(b)           If the Net Proceeds
are equal to or greater than $2,500,000 or the cost of completing the
Restoration is equal to or greater than $2,500,000, the Net Proceeds will be
held by Lender and Lender shall make the Net Proceeds available for the Restoration
in accordance with the provisions of this Section 6.4.  The term “Net Proceeds” for purposes
of this Section 6.4 shall mean: (i) the net amount of all insurance
proceeds received by Lender pursuant to Section 6.1 (a)(i), (iv),
(vi), (ix) and (x) as a result of such damage or
destruction, after deduction of its reasonable costs and expenses (including,
but not limited to, reasonable counsel fees), if any, in collecting same (“Insurance
Proceeds”), or (ii) the net amount of the Award, after deduction of its
reasonable costs and expenses (including, but not limited to, reasonable
counsel fees), if any, in collecting same (“Condemnation Proceeds”),
whichever the case may be.

(i)            The Net Proceeds shall be made
available to Borrower for Restoration provided that the following conditions
are met:

(A)          no
Event of Default shall have occurred and be continuing;

(B)           (1)
in the event the Net Proceeds are Insurance Proceeds, less than twenty-five
percent (25%) of the total floor area of the Improvements on the Property has
been damaged, destroyed or rendered unusable as a result of such Casualty or
(2) in the event the Net Proceeds are Condemnation Proceeds, less than ten
percent (10%) of the land constituting the Property is taken, and such 

 152
 

land is located along the perimeter or periphery of
the Property, and no portion of the Improvements is located on such land;

(C)          
Borrower shall commence the Restoration as soon as reasonably practicable (but
in no event later than sixty (60) days after such Casualty or Condemnation,
whichever the case may be, occurs) and shall diligently pursue the same to
satisfactory completion;

(D)          Lender
shall be satisfied that any operating deficits, including all scheduled
payments of principal and interest under the Note, which will be incurred with
respect to the Property as a result of the occurrence of any such Casualty or
Condemnation, whichever the case may be, will be covered out of (1) the Net
Proceeds, (2) the insurance coverage referred to in Section 6.1(a)(iii),
if applicable, or (3) by other funds of Borrower;

(E)           Lender
shall be satisfied that the Restoration will be completed on or before the
earliest to occur of (1) six (6) months prior to the Maturity Date,
(2) the earliest date required for such completion under the terms of any
Material Operating Agreement (unless it is reasonably determined that such
Operating Agreement can be replaced with another on equivalent or better
terms), (3) such time as may be required under applicable Legal
Requirements or (4) the expiration of the insurance coverage referred to
in Section 6.1(a)(iii);

(F)           the
Property and the use thereof after the Restoration will be in compliance with
and permitted under all applicable Legal Requirements;

(G)           the
Restoration shall be done and completed by Borrower in an expeditious and
diligent fashion and in compliance with all applicable Legal Requirements;

(H)          such
Casualty or Condemnation, as applicable, does not result in the material loss
of access to the Property or the related Improvements;

(I)            the
Debt Service Coverage Ratio for the affected Property, after giving effect to
the Restoration, is reasonably expected to be equal to or greater than 1.1 to
1.0;

(J)            the
Loan to Value Ratio, after giving effect to the Restoration, is reasonably
expected to be equal to or less than eighty percent (80%);

(K)          Borrower
shall deliver, or cause to be delivered, to Lender a signed detailed budget
approved in writing by Borrower’s architect or engineer stating the entire cost
of completing the Restoration, which budget shall be reasonably acceptable to
Lender; and

(L)           the
Net Proceeds together with any cash or cash equivalent deposited by Borrower
with Lender are sufficient in Lender’s reasonable discretion to cover the cost
of the Restoration.

 

 153

(ii)           The Net Proceeds shall be held by
Lender in an interest-bearing account and, until disbursed in accordance
with the provisions of this Section 6.4(b), shall constitute
additional security for the Debt and other obligations under the Loan
Documents.  The Net Proceeds shall be
disbursed by Lender to, or as directed by, Borrower from time to time during
the course of the Restoration, upon receipt of evidence reasonably satisfactory
to Lender that (A) all materials installed and work and labor performed (except
to the extent that they are to be paid for out of the requested disbursement)
in connection with the Restoration have been paid for in full, and
(B) there exist no notices of pendency, stop orders, mechanic’s or
materialman’s liens or notices of intention to file same, or any other liens or
encumbrances of any nature whatsoever on the Property which have not either
been fully bonded and discharged of record or in the alternative fully insured
by the title company issuing the Title Insurance Policy.

(iii)          All plans and specifications required
in connection with the Restoration shall be subject to prior review and
acceptance in all respects by Lender in its reasonable discretion and by an
independent consulting engineer selected by Lender (the “Casualty Consultant”).  Lender shall have the use of the plans and
specifications and all permits, licenses and approvals required or obtained in
connection with the Restoration.  The
identity of the contractors, subcontractors and materialmen engaged in the
Restoration, as well as the contracts under which they have been engaged, shall
be subject to prior review and acceptance by Lender in  its reasonable discretion and the Casualty
Consultant.  All costs and expenses
incurred by Lender in connection with making the Net Proceeds available for the
Restoration including, without limitation, reasonable counsel fees and
disbursements and the Casualty Consultant’s fees, shall be paid by Borrower.

(iv)          In no event shall Lender be obligated
to make disbursements of the Net Proceeds in excess of an amount equal to the
costs actually incurred from time to time for work in place as part of the
Restoration, as certified by the Casualty Consultant, minus the Casualty
Retainage.  The term “Casualty
Retainage” shall mean an amount equal to ten percent (10%) of the costs
actually incurred for work in place as part of the Restoration, as certified by
the Casualty Consultant, until 50% of the applicable trade with respect to the
Restoration has been completed and 5% thereafter.  The Casualty Retainage shall in no event, and
notwithstanding anything to the contrary set forth above in this Section 6.4(b),
be less than the amount actually held back by Borrower from contractors,
subcontractors and materialmen engaged in the Restoration.  The Casualty Retainage shall not be released
until the Casualty Consultant certifies to Lender that the Restoration has been
completed or 50% completed, as applicable, in accordance with the provisions of
this Section 6.4(b) and, with respect to the last 5% retainage,
that all approvals necessary for the re-occupancy and use of the Property
have been obtained from all appropriate governmental and quasi-governmental
authorities, and Lender receives evidence satisfactory to Lender that the costs
of the Restoration have been paid in full or will be paid in full out of the
Casualty Retainage; provided, that Lender will release the portion of
the Casualty Retainage being held with respect to any contractor, subcontractor
or materialman engaged in the Restoration as of the date upon which the
Casualty Consultant certifies to Lender that the contractor, subcontractor or
materialman has satisfactorily completed all work and has supplied all
materials in accordance with 

 154
 

the provisions of the contractor’s,
subcontractor’s or materialman’s contract, the contractor, subcontractor or
materialman delivers the lien waivers and evidence of payment in full of all
sums due to the contractor, subcontractor or materialman as may be reasonably
requested by Lender or by the title company issuing the Title Insurance Policy,
and Lender receives an endorsement to the Title Insurance Policy insuring the
continued priority of the lien of the Security Instrument and evidence of
payment of any premium payable for such endorsement.  If required by Lender, the release of any
such portion of the Casualty Retainage shall be approved by the surety company,
if any, which has issued a payment or performance bond with respect to the
contractor, subcontractor or materialman.

(v)           Lender shall not be obligated to make
disbursements of the Net Proceeds more frequently than once every calendar
month.

(vi)          If at any time the Net Proceeds or the
undisbursed balance thereof shall not, in the reasonable opinion of Lender in
consultation with Borrower and the Casualty Consultant, be sufficient to pay in
full the balance of the costs which are estimated by the Casualty Consultant to
be incurred in connection with the completion of the Restoration, Borrower
shall deposit the deficiency (the “Net Proceeds Deficiency”) with Lender
before any further disbursement of the Net Proceeds shall be made.  The Net Proceeds Deficiency deposited with
Lender shall be held by Lender and shall be disbursed for costs actually
incurred in connection with the Restoration on the same conditions applicable
to the disbursement of the Net Proceeds, and until so disbursed pursuant to
this Section 6.4(b) shall constitute additional security for the
Debt and other obligations under the Loan Documents.

(vii)         The excess, if any, of the Net Proceeds
and the remaining balance, if any, of the Net Proceeds Deficiency deposited
with Lender after the Casualty Consultant certifies to Lender that the
Restoration has been completed in accordance with the provisions of this Section 6.4(b),
and the receipt by Lender of evidence satisfactory to Lender that all costs
incurred in connection with the Restoration have been paid in full, shall be
remitted by Lender to Borrower, provided no Event of Default shall have
occurred and shall be continuing.

(c)           All Net Proceeds not
required (i) to be made available for the Restoration or (ii) to be
returned to Borrower as excess Net Proceeds pursuant to Section 6.4(b)(vii)
may be retained and applied by Lender in accordance with Section 2.4.2
toward the payment of the Debt whether or not then due and payable in such
order, priority and proportions as Lender in its sole discretion shall deem
proper, or, at the discretion of Lender, the same may be paid, either in whole
or in part, to Borrower for such purposes as Lender shall approve, in its
discretion.

(d)           In the event of
foreclosure of the Security Instrument, or other transfer of title to the
Property in extinguishment in whole or in part of the Debt all right, title and
interest of Borrower in and to the Policies that are not blanket Policies then
in force concerning the Property and all proceeds payable thereunder shall
thereupon vest in the purchaser at such foreclosure or Lender or other
transferee in the event of such other transfer of title.

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ARTICLE VII.

RESERVE FUNDS

Section 7.1.            Required
Repair and Remediation Account.

7.1.1.       Deposits.
Borrower shall perform the repair and remediation work at the Property as more
particularly set forth on Schedule IX hereto (such work, collectively,
the “Required Repairs and Remediation”). 
Borrower shall complete the Required Repairs and Remediation on or
before the required deadline for each item as set forth on Schedule IX.  It shall be an Event of Default under this
Agreement if (a) Borrower does not complete the Required Repairs and
Remediation by the required deadline for each item as set forth on Schedule
IX, or (b) Borrower does not satisfy each condition contained in Section
7.1.2.  Upon the occurrence of such
an Event of Default, Lender, at its option, may withdraw all Required Repair
and Remediation Funds from the Required Repair and Remediation Account and
Lender may apply such funds either to completion of the Required Repairs and
Remediation or toward payment of the Debt in such order, proportion and
priority as Lender may determine in its sole discretion.  Lender’s right to withdraw and apply Required
Repair and Remediation Funds shall be in addition to all other rights and
remedies provided to Lender under this Agreement and the other Loan
Documents.  On the Closing Date, Borrower
shall deposit with Lender the amount set forth on such Schedule IX
hereto to perform the Required Repairs and Remediation multiplied by one
hundred and five percent (105%).  Amounts
so deposited with Lender shall be held by Lender in accordance with Section
7.5.  Amounts so deposited shall
hereinafter be referred to as the “Required Repair and Remediation Fund”
and the account in which such amounts are held shall hereinafter be referred to
as the “Required Repair and Remediation Account”.

7.1.2.       Release
of Required Repair and Remediation Funds. 
Lender shall disburse to Borrower the Required Repair and Remediation
Funds from the Required Repair and Remediation Account from time to time, but
not more frequently than once in any thirty (30) day period, upon satisfaction
by Borrower of each of the following conditions:  (a) Borrower shall submit a written request
for payment to Lender at least thirty (30) days prior to the date on which
Borrower requests such payment be made and specifies the Required Repairs and
Remediation to be paid, (b) on the date such request is received by Lender and
on the date such payment is to be made, no Default or Event of Default shall
exist and remain uncured, (c) Lender shall have received an Officer’s
Certificate (i) stating that all Required Repairs and Remediation to be funded
by the requested disbursement have been completed in good and workmanlike
manner and in accordance with all applicable federal, state and local laws,
rules and regulations, such Officer’s Certificate to be accompanied by a copy
of any license, permit or other approval by any Governmental Authority required
to commence and/or complete the Required Repairs and Remediation, (ii)
identifying each Person that supplied materials or labor in connection with the
Required Repairs and Remediation to be funded by the requested disbursement,
and (iii) stating that each such Person has been paid in full or will be paid
in full upon such disbursement, such Officer’s Certificate to be accompanied by
lien waivers or other evidence of payment satisfactory to Lender, (d) at Lender’s
option, a title search indicating that the Property is free from all liens,
claims and other encumbrances not previously approved by Lender, and (e) Lender
shall have received such other evidence as Lender shall reasonably request that
the Required Repairs and Remediation to be funded by the requested disbursement
have been completed and are paid for or will be paid upon such disbursement to
Borrower.  So long as no 

 156
 

Event of Default shall then exist, upon final completion of all
Required Repairs and Remediation in accordance with the terms hereof, Lender
shall direct Cash Management Bank to release all remaining funds on deposit in
the Required Repair and Remediation Account to Borrower for its own account.

Section 7.2.            Tax
and Insurance Escrow Account.  On the
Closing Date, a portion of the proceeds of the Base Loan in the amount of
$2,368,500 Dollars shall be deposited with Lender and on each Payment Date
thereafter beginning on the first (1st) Payment Date (a) one twelfth of the
Taxes that Lender estimates will be payable during the next ensuing twelve (12)
months in order to accumulate with Lender sufficient funds to pay all such
Taxes at least thirty (30) days prior to their respective due dates, and (b)
one twelfth of the Insurance Premiums that Lender estimates will be payable for
the renewal of the coverage afforded by the Policies upon the expiration
thereof in order to accumulate with Lender sufficient funds to pay all such Insurance
Premiums at least thirty (30) days prior to the expiration of the
Policies.  All such amounts so deposited
shall hereinafter be referred to as the “Tax and Insurance Escrow Fund”
and the account to which such amounts are held shall hereinafter be referred to
as the “Tax and Insurance Escrow Account.”  The Tax and Insurance Escrow Fund and the
payment of the monthly Debt Service, shall be added together and shall be paid
as an aggregate sum by Borrower to Lender. 
Lender will apply the Tax and Insurance Escrow Fund to payments of Taxes
and Insurance Premiums required to be made by Borrower pursuant to Section
5.1.2 and under the Security Instrument. 
In making any payment relating to the Tax and Insurance Escrow Fund,
Lender may do so according to any bill, statement or estimate procured from the
appropriate public office (with respect to Taxes) or insurer or agent (with
respect to Insurance Premiums), without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax, assessment, sale,
forfeiture, tax lien or title or claim thereof. 
If the amount of the Tax and Insurance Escrow Fund shall exceed the
amounts due for Taxes and Insurance Premiums pursuant to Section 5.1.2,
Lender shall, in its sole discretion, return any excess to Borrower or credit
such excess against future payments to be made to the Tax and Insurance Escrow
Fund.  Any amount remaining in the Tax
and Insurance Escrow Fund after the Debt has been paid in full shall be
returned to Borrower.  In allocating such
excess, Lender may deal with the Person shown on the records of Lender to be
the owner of the Property.  If at any
time Lender reasonably determines that the Tax and Insurance Escrow Fund is not
or will not be sufficient to pay Taxes and Insurance Premiums by the dates set
forth in (a) and (b) above, Lender shall notify Borrower of such determination
and Borrower shall increase its monthly payments to Lender by the amount that
Lender reasonably estimates is sufficient to make up the deficiency at least
thirty (30) days prior to the due date of the Taxes and/or thirty (30) days
prior to expiration of the Policies, as the case may be.

Section 7.3.            FF&E
Reserve Account.

7.3.1.       FF&E
Reserve Fund.  Borrower shall pay to
Lender on each Payment Date an amount equal three percent (3%) of the amount of
Gross Income from Operations for the Property from the second previous calendar
month.  Amounts so deposited shall
hereinafter be referred to as the “FF&E Reserve Fund” and the
account in which such amounts are held shall hereinafter be referred to as the “FF&E
Reserve Account”.

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7.3.2.       Disbursements
from FF&E Reserve Account. All disbursements from the FF&E Reserve
Account shall be made solely for the purpose of reimbursing Borrower for its
costs and expenses incurred, or for paying costs to be incurred, in connection
with the repair, replacement and/or upgrade of FF&E at the Property.  Lender shall, within ten (10) days following
request by Borrower, make disbursements from the FF&E Reserve Fund, no more
frequently than once in any thirty (30) day period of no less than $10,000 per
disbursement (or a lesser amount if the total amount in the FF&E Reserve
Account is less than $10,000, in which case only one disbursement of the amount
remaining in the account shall be made) upon delivery by Borrower of Lender’s
standard form of draw request accompanied by copies of invoices for the amounts
requested and, if required by Lender for requests in excess of $50,000 for a
single item, receipts and releases from all parties furnishing materials and/or
services in connection with the requested payment.  Notwithstanding the foregoing, Borrower shall
apply an amount  equal to 75% of each
monthly deposit into the FF&E Reserve Account to renovate 1,000 rooms (the “Additional
Rooms”) in addition to the 608 rooms to be renovated as part of the
Renovation Project, provided that:

(a)           such Additional Rooms shall be
renovated to a standard substantially equivalent to that of the room
renovations contemplated by the Renovation Project;

(b)           Borrower shall not be required to
undertake the renovation of more than sixty Additional Rooms for each calendar
month during the term of the Loan; and

(c)           in the event that, in any month,  Borrower applies funds (“Other Funds”)
other than funds from that month’s FF&E Reserve Fund deposit to pay the
cost of renovating Additional Rooms, the amount of such month’s FF&E
Reserve Fund deposit required to be applied to the renovation of Additional
Rooms shall be reduced by the amount of Other Funds so applied.

7.3.3.       Balance
in the FF&E Reserve Account.  The
insufficiency of any balance in the FF&E Reserve Account shall not relieve
Borrower from its obligation to fulfill all preservation and maintenance
covenants in the Loan Documents.

Section 7.4.            Interest
Reserve Account.

7.4.1.       Deposits
of Interest Reserve Funds. On the Closing Date, a portion of the proceeds
of the Base Loan in the amount of $11,000,000 shall be deposited with Lender
for the purpose of establishing a reserve fund to pay Debt Service.  Amounts so deposited shall hereinafter be
referred to as the “Interest Reserve Fund” and the account in which sums
are held shall hereinafter be referred to as the “Interest Reserve Account”.
Interest Reserve Funds shall be disbursed and applied by Lender from time to
time in accordance with Section 7.4.3. 
Borrower shall be entitled to deliver to Lender a Letter of Credit in
lieu of cash for all or any portion of the Interest Reserve Fund.

7.4.2.       Minimum
Interest Reserve Balance Requirement. Subject to the provisions of this Section
7.4.2, during the period commencing on the date hereof and ending on the
Interest Release Trigger Date, Borrower shall be obligated to cause the amount
of the Interest Reserve Fund maintained in the Interest Reserve Account to be at
least $11,000,000 (the “Interest 

 158
 

Reserve Requirement”).  Notwithstanding the foregoing, in the event
that, as a result of the application of any portion of the Interest Reserve
Funds pursuant to Section 7.4.3, the amount of Interest Reserve Funds
then on deposit at any time in the Interest Reserve Account shall be less than
the Interest Reserve Requirement, it shall not be a default hereunder if,
within fifteen (15) days thereof, Borrower shall cause additional funds to be
deposited into the Interest Reserve Account (either from the proceeds of any
Future Funding, a transfer of funds from the General Reserve Account pursuant
to Section 7.9 or any other sources) in order to cause the balance of
the Interest Reserve Fund to at least equal the Interest Reserve
Requirement.  In the event that Borrower
shall fail, within such fifteen (15) day period to cause additional funds to be
deposited into the Interest Reserve Account in order to cause the balance of
the Interest Reserve Fund to at least equal the Interest Reserve Requirement,
Lender shall have the right (but not the obligation), in its sole and absolute
discretion, to transfer funds from the General Reserve Account in order to
satisfy such requirement.  The unavailability
of any Future Funding or the insufficiency of funds on deposit in the General
Reserve Account shall not relieve Borrower from the obligation to replenish the
Interest Reserve Account pursuant to this Section 7.4.2.

7.4.3.       Application
of Interest Reserve Funds.  So long
as no Event of Default other than an Event of Default under Section
8.1(a)(i) shall have occurred and be continuing, and subject to Borrower’s
obligations under Section 2.6.4(b) and Section 5.2.9, to the
extent that the Cash Management Account and any Excess Cash Reserve Account do
not contain sufficient funds to pay the monthly Debt Service payment in full on
any Payment Date pursuant to Section 2.6.4(a)(ii) and the amount of Cash
Expenses and other amounts to be paid for such month pursuant to Section
2.6.4(a)(iv), Lender will, upon receipt of written request from Borrower,
disburse to Lender from the Interest Reserve Fund on such Payment Date the
amount necessary to pay in full any monthly Debt Service payment due and
payable on such Payment Date and the same shall be applied pursuant to the
terms of this Agreement; provided, however, that (i) Borrower shall only
be permitted to direct Lender to disburse such funds from the Interest Reserve
Account to the extent that there are insufficient funds to pay the same, in the
Excess Cash Reserve Account, (ii) upon any application of amounts in the
Interest Reserve Account to the payment of monthly Debt Service, any remaining
funds deposited into the Cash Management Account thereafter until the next
Payment Date shall be made available to pay Cash Expenses and other amounts
pursuant to Section 2.6.4(a)(iv). 
Borrower agrees and acknowledges that, subject to the provisions of Section
2.6.5, neither the sufficiency or the insufficiency, nor the availability
or unavailability, of the Interest Reserve Funds shall constitute a limitation
on the obligation of Borrower to pay the monthly Debt Service under this
Agreement.  Following the application of
Lender of any portion of the Interest Reserve Funds to pay any monthly Debt
Service payment, to the extent there were sufficient funds to make such payment
in full, Borrower shall not be deemed to be in Default as a result of any such
non-payment of Debt Service.  It is
acknowledged and agreed that Borrower may have an obligation to replenish or
make further deposits to the Interest Reserve Fund in connection with the
exercise of any Extension Option as provided in Section 2.7.

7.4.4.       Release
of Interest Reserve Funds. Notwithstanding Borrower’s obligation to deposit
the Interest Reserve Fund with Lender pursuant to Section 7.4.1, any
amounts in the Interest Reserve Account (and any Letter of Credit held by
Lender in lieu thereof) shall be transferred to the General Reserve Account and
held and applied in accordance with the terms of Section 7.9 on the date
(the “Interest Release Trigger Date”) at such time that the Property has

 159
 

achieved a Debt Service Coverage Ratio (assuming for this determination
that the full Loan Amount has been advanced hereunder, as the same may be
reduced by any actual permitted prepayment or reduction of any unadvanced
portion of the Future Funding pursuant to Section 2.1.5(c) or (d))
of at least 1.2:1.0 for two consecutive calendar quarters.

Section 7.5.            Renovation
Project Reserve Account.

7.5.1.       Deposit
of Renovation Project Reserve Funds. 
On the Closing Date, a portion of the proceeds of the Base Loan in the
amount of $117,045,200 (plus an additional $36,000 with respect to certain
expected fees of Construction Consultant) with shall be deposited with Lender
into an Eligible Account (which may be a sub-account of the Cash Management
Account) established and maintained by and for the benefit of Lender in
accordance with Section 2.6 (the “Renovation Project Reserve Account”)
for the purpose of establishing a reserve fund to pay Project Costs with
respect to the Renovation Project. Further, it is acknowledged that, subject to
the requirements set forth in Section 2.1.5, unadvanced portions of the Future
Funding Amount may be deposited into the Renovation Project Reserve Account
from time to time after the date hereof.

7.5.2.       Release
of Renovation Project Reserve Fund. 
Amounts on deposit from time to time in the Renovation Project Reserve
Account (such amounts, collectively, “Renovation Project Reserve Funds”)
shall be invested in Permitted Investments, shall constitute a Reserve Fund for
all purposes under this Agreement and shall be subject to the provisions of
this Agreement regarding Reserve Funds. Borrower shall not be permitted to
deliver a Letter of Credit in lieu of the Renovation Project Reserve Funds. Any
Renovation Project Reserve Funds shall be disbursed by Lender to Borrower to
pay Project Costs of the Renovation Project and shall be funded as Project
Advances only upon compliance by Borrower with the provisions for disbursement
of Project Advances under this Agreement. So long as no Event of Default shall
then exist, upon Final Completion of the Renovation Project, Lender shall
direct Cash Management Bank to transfer all Renovation Project Reserve Funds
remaining on deposit in the Renovation Project Reserve Account to the General
Reserve Account, whereupon such funds 
shall be held and/or disbursed in accordance with the terms of Section
7.9. 

Section 7.6.            Timeshare
Project Proceeds Account.

7.6.1.       Deposit
of Timeshare Project Proceeds. 
Notwithstanding anything contained herein or in any other Loan Document
to the contrary, during any Timeshare Project Proceeds Sweep Period, all
Timeshare Project Proceeds received by, paid or payable to or for the account
of Borrower or any of its Affiliates shall be deposited with Lender and held in
an Eligible Account (which may be a sub-account of the Cash Management Account)
established and maintained by and for the benefit of Lender in accordance with
the terms hereof (the “Timeshare Project Proceeds Account”).  Timeshare Project Proceeds deposited into the
Timeshare Project Proceeds Account shall be disbursed and applied by Lender
from time to time in accordance with this Section 7.6. For the purposes hereof,
a “Timeshare Proceeds Sweep Period” shall be deemed to exist if and for
so long as any of the following shall apply:

(i)            an Event of Default shall have
occurred and be continuing;

 160
 

(ii)           any DSCR Sweep Period shall exist; or

(iii)          the Loan to Value Ratio on the date of
determination, as reasonably determined by Lender, shall be equal to or greater
than the following: (A) 80%, with respect to the First Loan Year, (B) 75%, with
respect to the Second Loan Year, (C) 67.5%, with respect to the Third Loan Year
(if any), (D) 65%, with respect to the Fourth Loan Year (if any), and (E)
62.5%, with respect to the Fifth Loan Year (if any).

7.6.2.       Release
of Timeshare Project Proceeds. During any Timeshare Proceeds Sweep Period,
(i) Borrower shall cause Timeshare Project Developer to deliver all Timeshare
Project Proceeds received by, paid or payable to or for the account of Borrower
or any of its Affiliates directly to the Timeshare Project Proceeds Account,
(ii) Borrower shall deposit, and shall cause its Affiliates to deposit, any Timeshare
Project Proceeds received by, paid or payable to or paid for the benefit of
Borrower into the Timeshare Project Proceeds Account within one (1) Business
Day after receipt, and (iii) Borrower shall diligently and continuously use all
commercially reasonable efforts to cause any other Person to deposit all
Timeshare Project Proceeds received by, paid or payable to or paid for the
benefit of Borrower into the Timeshare Proceeds Account within one (1) Business
Days after receipt.  At such time as no
Timeshare Proceeds Sweep Period shall exist, any Timeshare Project Proceeds
held in the Timeshare Project Proceeds Account shall be released to Borrower
for its own account and may be distributed to Borrower’s owners.

Section 7.7.            Excess
Cash Reserve Account.

7.7.1.       Deposit
of Excess Cash Reserve Funds.  During
the continuance of an Event of Default, any Excess Cash Flow Sweep Period or
any Extension Term Sweep Period, any Excess Cash Flow shall be deposited with
Lender and held in an Eligible Account.  
Amounts so deposited shall hereinafter be referred to as the “Excess
Cash Reserve Fund” and the account in which such sums are held shall
hereinafter be referred to as the “Excess Cash Reserve Account”. The
Excess Cash Reserve Funds shall be disbursed and applied by Lender from time to
time in accordance with Section 7.7.2.

7.7.2.       Release of Excess Cash Reserve Funds.  Provided that no Event of Default is
continuing, Lender shall retain any Excess Cash Reserve Funds as additional
security for the Loan or, at Borrower’s election, shall apply all or any
portion of such Excess Cash Reserve Funds to (i) make a deposit into the
Interest Reserve Account in order to satisfy the Interest Reserve Requirement
pursuant to Section 7.4.2, (ii) prepay the Loan, together with any Spread
Maintenance payable hereunder in connection with such prepayment; provided
that, if such prepayment occurs on a date other than a Payment Date, Borrower
shall pay Lender all interest which would have accrued on the amount of the
Loan through and including the Payment Date next occurring following the date
of such prepayment, or (iii) so long as no Event of Default shall exist, if no
Interest Reserve Fund is required to be maintained hereunder, make a deposit
into the General Reserve Account.  At
such time as no Event of Default and no Extension Term Sweep Period or Excess
Cash Flow Sweep Period (as applicable) exists, all Excess Cash Reserve Funds
shall be released to Borrower and, so long as no Event of Default shall then
exist, may be distributed by Borrower to its members.

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Section 7.8.            Future
Project Reserve Account.

7.8.1.       Deposit
of Future Project Reserve Funds. 
From time to time pursuant to the provisions of Section 2.1.5 or Section
7.9, a portion of the Future Funding may be deposited with Lender into an
Eligible Account (which may be a sub-account of the Cash Management Account)
established and maintained by and for the benefit of Lender in accordance with Section
2.6 (the “Future Project Reserve Account”) for the purpose of
establishing a reserve fund to pay Project Costs with respect to any Future
Project. Further, it is acknowledged that, subject to the requirements set
forth in Section 2.1.5, unadvanced portions of the Future Funding Amount
may be deposited into the Future Project Reserve Account from time to time
after the date hereof.

7.8.2.       Release
of Future Project Reserve Fund. 
Amounts on deposit from time to time in the Future Project Reserve
Account (such amounts, collectively, “Future Project Reserve Funds”)
shall be invested in Permitted Investments, shall constitute a Reserve Fund for
all purposes under this Agreement and shall be subject to the provisions of
this Agreement regarding Reserve Funds. Borrower shall not be permitted to
deliver a Letter of Credit in lieu of the Future Project Reserve Funds. Any
Future Project Reserve Funds shall be disbursed by Lender to Borrower to pay
Project Costs of the relevant Future Project and shall be funded as Project
Advances only upon compliance by Borrower with the provisions for disbursement
of Project Advances under this Agreement. So long as no Event of Default shall
then exist, upon Final Completion of any Future Project, Lender shall direct
Cash Management Bank to transfer all Future Project Reserve Funds previously
advanced into the Future Project Reserve Account with respect to such Future
Project to the General Reserve Account, whereupon such funds shall be held
and/or disbursed in accordance with the terms of Section 7.9.

Section 7.9.            General
Reserve Account.

7.9.1.       Deposit
of General Reserve Funds. From time to time pursuant to the provisions of
this Agreement portions of the Future Funding and other amounts from time to
time may be deposited with Lender into an Eligible Account (which may be a
sub-account of the Cash Management Account) established and maintained by and
for the benefit of Lender in accordance with Section 2.6 (the “General
Reserve Account”) for the purpose of establishing a general reserve fund
for the purposes described in this Section 7.9.  Amounts on deposit from time to time in the
General Reserve Account (such amounts, collectively, “General Reserve Funds”)
shall be invested in Permitted Investments, shall constitute a Reserve Fund for
all purposes under this Agreement and shall be subject to the provisions of this
Agreement regarding Reserve Funds. Borrower shall not be permitted to deliver a
Letter of Credit in lieu of the General Reserve Funds.

7.9.2.       Application
of General Reserve Funds.  Subject to
the provisions of this Section 7.9.2, so long as no Event of Default
shall then exist, Borrower shall have the right from time to time to request a
disbursement of funds from the General Reserve Account for any of the following
purposes:

(a)           for deposit into the Renovation
Project Reserve Account in order to pay Project Costs with respect to the
Renovation Project, such transferred funds to be held, disbursed and applied in
accordance with the provisions of Section 7.5;

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(b)           for deposit into the Future Project
Reserve Account in order to pay Project Costs with respect to any Future
Project, such transferred funds to be held, disbursed and applied in accordance
with the provisions of Section 7.8;

(c)           for deposit into the Interest Reserve
Account in order to satisfy the minimum reserve balance requirements set forth
in Section 7.4, such transferred funds to be held, disbursed and applied
in accordance with the provisions of Section 7.4;

(d)           for deposit into the FF&E Reserve
Account in order to reimburse Borrower for its costs incurred, or to pay costs
to be incurred, in connection with the repair, replacement and/or upgrade of
FF&E, such transferred funds to be held, disbursed and applied in
accordance with the provisions of Section 7.3;

(e)           for deposit into the Borrower
Disbursement Account in order to pay Approved Capital Expenditures to be paid
by Borrower with respect to the Property (other than the Timeshare Project);

(f)            for deposit into the Borrower
Disbursement Account in order to pay Approved Operating Expenses to be paid by
Borrower with respect to the Property (other than the Timeshare Project);

(g)           for deposit into the Borrower
Disbursement Account in order to pay Extraordinary Expenses reasonably approved
by Lender and to be paid by Borrower with respect to the Property (other than
the Timeshare Project);

(h)           for disbursement to Lender in order
to pay monthly Debt Service and any other amounts then due and payable under
the Loan Documents; or

(i)            from and after the Lockout Release
Date, for disbursement to Lender in order to prepay the Loan, together with any
Spread Maintenance payable hereunder in connection with such prepayment;
provided that, if such prepayment occurs on a date other than a Payment Date,
Borrower shall pay Lender all interest which would have accrued on the amount
of the Loan through and excluding the Payment Date next occurring following the
date of such prepayment.

7.9.3.       General
Reserve Fund Requests.  All Requests
for disbursement or transfer of General Reserve Funds pursuant to this Section
7.9 shall be made no more frequently than twice in any thirty (30) day
period by delivery of at least ten (10) Business Days (or at least fifteen (15)
Business Days with respect to any request relating to Capital Expenditures)
prior written notice to Lender and Cash Management Bank specifying the amount and
purpose of the required disbursement or transfer and, with respect to any
request for disbursement of funds to pay Approved Operating Expenses, Approved
Capital Expenditures or Extraordinary Expenses, specifying the individual
Operating Expenses, Approved Capital Expenditures or Extraordinary Expenses
requested and attaching appropriate supporting information reasonably
acceptable to Lender.

7.9.4.       Approved
Capital Expenditure Requests.

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(a)           With respect to any
request for disbursement of funds hereunder to pay Approved Capital
Expenditures, Lender shall disburse to Borrower the relevant General Reserve
Funds  upon satisfaction by Borrower of
each of the following conditions:

(i)            Lender shall have received an
Officers’ Certificate (A) stating that all Approved Capital Expenditures at the
Property to be funded by the requested disbursement have been completed in good
and workmanlike manner and in accordance with all Legal Requirements and
Environmental Laws in all material respects, such certificate to be accompanied
by a copy of any license, permit or other approval by any Governmental
Authority required to commence and/or complete the Approved Capital
Expenditures, (B) identifying each Person that supplied materials or labor in
connection with the Approved Capital Expenditures performed at the Property
with respect to the reimbursement to be funded by the requested disbursement,
(C) stating that each such Person has been paid or will be paid in full upon
such disbursement, such Officers’ Certificate to be accompanied by lien waivers
or other evidence of payment satisfactory to Lender, and (D) certifying that
all funds previously disbursed from the General Reserve Account with respect to
Approved Capital Expenditures have been applied by Borrower toward the expenses
for which they were disbursed and the funds being requested will be applied to
pay or reimburse for materials or work permitted hereunder and done in
accordance herewith;

upon Lender’s reasonable request, a title
search for the Property indicating that the Property is free from all Liens,
claims and other encumbrances not previously approved by Lender; and

(ii)           Lender has received evidence
reasonably satisfactory to Lender that the materials for which the request is
made are on-site at the Property and are properly secured or have been
installed in the Property.

(b)           Lender may, in its
reasonable discretion, inspect the Property at Borrower’s expense prior to
making a disbursement of General Reserve Funds with respect to Approved Capital
Expenditures in order to verify completion of the Approved Capital Expenditures
for which reimbursement is sought. 
Lender may require that such inspection be conducted by an appropriate
independent qualified professional reasonably selected by Lender and/or may
require a copy of a certificate of completion by an independent qualified
professional reasonably acceptable to Lender prior to the disbursement of the
request General Reserve Funds.  Borrower
shall pay the actual out-of-pocket reasonable expense of the inspection as
required hereunder, whether such inspection is conducted by Lender or by an
independent qualified professional. 
Lender’s disbursement of any General Reserve Funds or other
acknowledgment of completion of any Approved Capital Expenditures in a manner
satisfactory to Lender shall not be deemed a certification or warranty by
Lender to any Person that the Approved Capital Expenditures have been completed
in accordance with Legal Requirements. 
The insufficiency of any balance in the General Reserve Account shall
not relieve Borrower from its obligation to fulfill all preservation and
maintenance covenants in the Loan Documents.

Section 7.10.          Accrual
Adjustment Reserve Account.

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On each Payment Date, Borrower shall deliver to Lender an Officer’s
Certificate indicating (i) the dollar amount (the “Accrual Adjustment
Deposit Amount”) of any funds received in the Collection Account since the
prior Payment Date that, in accordance with the Accrual Method, were not
recorded as revenue for such period and (ii) the dollar amount of funds then on
deposit in the Accrual Accounting Adjustment Account that are to be recorded as
revenue for such period under the Accrual Method (the “Accrual Adjustment
Withdrawal Funds”).  On each Payment
Date, (i) prior to making any payments under Section 2.6.4(a), Lender
shall deposit funds equal to the Accrual Accounting Deposit Amount into an
Eligible Account (which may be a sub-account of the Cash Management Account)
established and maintained by and for the benefit of Lender in accordance with Section
2.6 (the “Accrual Adjustment Reserve Account”) and (ii) shall apply
any Accrual Accounting Withdrawal Funds in accordance with Section 2.6.4(a).  Amounts on deposit from time to time in the
Accrual Adjustment Reserve Account are referred to herein as the “Accrual
Adjustment Reserve Funds.”

Section 7.11.          Letter
of Credit.

(a)           If Borrower elects
to deliver a Letter of Credit pursuant to the terms and provisions of Section
7.4.1, Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket
costs and expenses in connection therewith, including, without limitation, any
costs or expenses incurred in drawing down on such Letter of Credit.  Borrower shall not be entitled to draw from
any such Letter of Credit.  Upon five (5)
days notice to Lender, Borrower may replace a Letter of Credit with a cash
deposit to the Interest Reserve Fund and/or a replacement Letter of Credit in
such amounts such that the balance on deposit in the Interest Reserve Fund and
the amount of any such replacement Letter of Credit is not less than the amount
then required to be deposited therein in accordance with the terms and
provisions of Section 7.4.1.

(b)           Prior to the return
of a Letter of Credit, Borrower shall deposit an amount equal to the amount
that would have accumulated and not been disbursed in accordance with this
Agreement if such Letter of Credit had not been delivered.

(c)           Each Letter of
Credit delivered under this Agreement shall be additional security for the
payment of the Debt.  Upon the occurrence
and during the continuance of an Event of Default, Lender shall have the right,
at its option, to draw on any Letter of Credit and to apply all or any part
thereof to the payment of the items for which such Letter of Credit was
established or to apply each such Letter of Credit to payment of the Debt in
such order, proportion or priority as Lender may determine.

(d)           In addition to any
other right Lender may have to draw upon a Letter of Credit pursuant to the
terms and conditions of this Agreement, Lender shall have the additional rights
to draw in full any Letter of Credit: 
(a) with respect to any evergreen Letter of Credit, if Lender has
received a notice from the issuing bank that the Letter of Credit will not be
renewed and a substitute Letter of Credit is not provided at least thirty (30)
days prior to the date on which the outstanding Letter of Credit is scheduled
to expire; (b) with respect to any Letter of Credit with a stated expiration
date, if Lender has not received a notice from the issuing bank that it has
renewed the Letter of Credit at least thirty (30) days prior to the date on
which such Letter of Credit is scheduled to expire and a substitute Letter of
Credit is not provided at least thirty (30) days prior to the date on which the
outstanding Letter of Credit is scheduled to expire; (c) upon 

 165
 

receipt of
notice from the issuing bank that the Letter of Credit will be terminated
(except if the termination of such Letter of Credit is permitted pursuant to
the terms and conditions of this Agreement or a substitute Letter of Credit is
provided); or (d) if Lender has received notice that the bank issuing the
Letter of Credit shall cease to be an Eligible Institution and within ten (10)
Business Days after Lender notifies Borrower in writing of such circumstance,
Borrower shall fail to deliver to Lender a substitute Letter of Credit issued
by an Eligible Institution. 
Notwithstanding anything to the contrary contained in the above, Lender
is not obligated to draw any Letter of Credit upon the happening of an event
specified in (a), (b), (c) or (d) above and shall not be liable for any losses
sustained by Borrower due to the insolvency of the bank issuing the Letter of
Credit if Lender has not drawn the Letter of Credit.

Section 7.12.          Reserve
Funds Generally.

(a)           The Reserve Funds
shall be held in one or more sub-accounts of the Cash Management Account and
shall bear interest at a money market rate selected by Lender.  All interest or other earnings on a Reserve
Fund (other than the Tax and Insurance Escrow Fund) shall be added to and
become a part of such Reserve Fund and shall be disbursed in the same manner as
other monies deposited in such Reserve Fund. Borrower shall have the right to
direct Lender to invest sums on deposit in the Eligible Account in Permitted
Investments provided (a) such investments are then regularly offered by
Lender for accounts of this size, category and type, (b) such investments
are permitted by applicable federal, state and local rules, regulations and
laws, (c) the maturity date of the Permitted Investment is not later than
the date on which the applicable Reserve Funds are required for payment of an
obligation for which such Reserve Fund was created, and (d) no Event of
Default shall have occurred and be continuing. 
Borrower shall be responsible for payment of any federal, state or local
income or other tax applicable to the interest or income earned on the Reserve
Funds (other than the Tax and Insurance Escrow Fund).  No other investments of the sums on deposit
in the Reserve Funds shall be permitted except as set forth in this Section 7.12.  Borrower shall bear all reasonable costs
associated with the investment of the sums in the account in Permitted
Investments.  Such costs shall be
deducted from the income or earnings on such investment, if any, and to the
extent such income or earnings shall not be sufficient to pay such costs, such
costs shall be paid by Borrower promptly on demand by Lender.  Lender shall have no liability for the rate
of return earned or losses incurred on the investment of the sums in Permitted
Investments.

(b)           Borrower shall
indemnify Lender and hold Lender harmless from and against any and all actions,
suits, claims, demands, liabilities, losses, damages, obligations and costs and
expenses (including litigation costs and reasonable attorneys fees and
expenses) arising from or in any way connected with the Reserve Funds or the
performance of the obligations for which the Reserve Funds were
established.  Borrower shall assign to
Lender all rights and claims Borrower may have against all Persons supplying
labor, materials or other services which are to be paid from or secured by the
Reserve Funds; provided, that Lender may not pursue any such right or
claim unless an Event of Default has occurred and remains uncured.

ARTICLE VIII.

DEFAULTS

Section 8.1.            Event
of Default.

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(a)           Each of the
following events shall constitute an event of default hereunder (an “Event
of Default”):

(i)            if any portion of the Debt is not
paid when due;

(ii)           if any of the Taxes or Other Charges
are not paid when the same are due and payable;

(iii)          if the Policies are not kept in full
force and effect, or if certified copies of the Policies are not delivered to
Lender promptly upon request;

(iv)          any Transfer occurs in violation of
the provisions of this Agreement or the other Loan Documents;

(v)           any representation or warranty made
by Borrower herein or in any other Loan Document, or in any report,
certificate, financial statement or other instrument, agreement or document
furnished by or on behalf of any Borrower Party to Lender shall have been false
in any material respect as of the date the representation or warranty was made;
provided that if (A) such misrepresentation was not intentional, and (B) the
condition causing the representation or warranty to be false is susceptible of
being cured, the same shall be an Event of Default hereunder only if the same
is not cured within thirty (30) days after written notice of such
misrepresentation from Lender to Borrower; and provided further that if the
condition causing the representation or warranty to be false is susceptible of
cure but cannot reasonably be cured within such thirty (30) day period and
Borrower shall have commenced to cure such condition within such thirty (30)
day period and thereafter diligently proceeds to cure the same, then such
thirty (30) day period shall be extended for an additional period of time as is
reasonably necessary for Borrower in the exercise of due diligence to cure such
condition, such additional period not to exceed one hundred and twenty (120)
days;

(vi)          Borrower or any other Borrower Party
shall make an assignment for the benefit of creditors;

(vii)         a receiver, liquidator or trustee shall
be appointed for Borrower or any other Borrower Party, or if Borrower or any
other Borrower Party shall be adjudicated a bankrupt or insolvent, or if any
petition for bankruptcy, reorganization or arrangement pursuant to federal
bankruptcy law, or any similar federal or state law, shall be filed by or
against, consented to, or acquiesced in by, Borrower or any other Borrower
Party, or if any proceeding for the dissolution or liquidation of Borrower or
any other Borrower Party shall be instituted; provided, that if such
appointment, adjudication, petition or proceeding was involuntary and not
consented to by Borrower or any other Borrower Party, upon the same not being
discharged, stayed or dismissed within sixty (60) days;

(viii)        Borrower or any other Borrower Party
attempts to assign its rights under this Agreement or any of the other Loan
Documents or any interest herein or therein in contravention of the Loan
Documents;

 167
 

(ix)           Borrower or any other Borrower Party
breaches any of its respective negative covenants contained in Section 5.2
or any covenant contained in Section 4.1.29 or Section 5.1.11;
provided that a breach of any such covenant shall not constitute an Event of
Default if (A) such breach is inadvertent and non-recurring, (B) Borrower shall
cure such breach within fifteen (15) Business Days after written notice of such
breach from Lender to Borrower, or (C) with respect to a breach of any covenant
contained in Section 4.1.29, within fifteen (15) Business Days after the
request of Lender, Borrower delivers to Lender an Additional Insolvency
Opinion, or a modification of the Insolvency Opinion, to the effect that such
breach shall not in any way impair, negate or amend the opinions rendered in
the Insolvency Opinion, which opinion or modification shall be in form and
substance acceptable to Lender in its reasonable discretion;

(x)            with respect to any term, covenant
or provision set forth herein which specifically contains a notice requirement
or grace period, Borrower or any other Borrower Party shall be in default under
such term, covenant or condition after the giving of such notice or the
expiration of such grace period;

(xi)           any of the assumptions contained in
the Insolvency Opinion delivered to Lender in connection with the Loan, or in
any Additional Insolvency Opinion delivered subsequent to the closing of the
Loan, is or shall become untrue in any material respect;

(xii)          a material default has occurred and
continues beyond any applicable cure period under any Material Operating
Agreement if such default permits any other party thereunder to terminate or
cancel such Material Operating Agreement or otherwise could reasonably be
expected to have a Material Adverse Effect;

(xiii)         Borrower ceases to operate and conduct
its hotel and casino business at the Property or terminates such business for
any reason whatsoever (other than as a result of Excusable Delay or a temporary
cessation in connection with any continuous and diligent renovation or
restoration of the Property following a Casualty or Condemnation);

(xiv)        Substantial Completion of the Renovation
Project has not occurred by the Renovation Project Substantial Completion
Deadline, subject to Excusable Delays;

(xv)         any Gaming License shall be modified,
refused, suspended, revoked or canceled or allowed to lapse or if a notice of a
material violation is issued under any Gaming License by the issuing agency or
other Governmental Authority having jurisdiction, or any proceeding is
commenced by any Governmental Authority for the purpose of modifying in any
materially adverse respect, suspending, revoking or canceling any Gaming
License in any materially adverse respect, or any Governmental Authority shall
have appointed a conservator, supervisor or trustee to the Casino Component
and, in each case of the foregoing, such action could reasonably be expected to
(A) have a Material Adverse Effect, (B) materially and adversely effect the
continued operation of the Casino Component in the usual course of business and
in substantially the same manner and to at least the same standard as was
maintained prior to such action, or (C) result in any material decrease in the
then expected cash flow and revenues to be derived from the Casino Component;

 

 168

(xvi)        Borrower or any other Borrower Party
shall continue to be in Default under any of the other terms, covenants or
conditions of this Agreement or any of the other Loan Documents not specified
in clauses (i) through (xiii) above, for ten (10) days after notice to Borrower
or such other Borrower Party from Lender, in the case of any Default which can
be cured by the payment of a sum of money, or for thirty (30) days after notice
from Lender in the case of any other Default; provided that if such non monetary
Default is susceptible of cure but cannot reasonably be cured within such
thirty (30) day period and provided further that Borrower shall have commenced
to cure such Default within such thirty (30) day period and thereafter
diligently and expeditiously proceeds to cure the same, such thirty (30) day
period shall be extended for such time as is reasonably necessary for Borrower
in the exercise of due diligence to cure such Default, such additional period
not to exceed one hundred and twenty (120) days;

(xvii)       (A) a Reportable Event shall have
occurred with respect to a Pension Plan, (B) the filing by the Borrower, any
ERISA Affiliate, or an administrator of any Plan of a notice of intent to
terminate such a Plan in a “distress termination” under the provisions of
Section 4041 of ERISA, (C) the receipt of notice by the Borrower, any ERISA
Affiliate, or an administrator of a Plan that the PBGC has instituted
proceedings to terminate (or appoint a trustee to administer) such a Pension
Plan, (D) any other event or condition exists which might, in the opinion of
the Agent, constitute grounds under the provisions of Section 4042 of ERISA for
the termination of (or the appointment of a trustee to administer) any Pension
Plan by the PBGC, (E) a Pension Plan shall fail to maintain the minimum funding
standard required by Section 412 of the Code or any plan year or a waiver of
such standard is sought or granted under the provisions of Section 4129d) of
the Code, (F) the Borrower or any ERISA Affiliate has incurred, or is likely to
incur, a liability under the provisions of Section 4062, 4063, 4064 or 4201 of
ERISA, (G) the Borrower or any ERISA Affiliate fails to pay the full amount of
an installment required under Section 412(m) of the Code, (H) the occurrence of
any other event or condition with respect to any Plan which would constitute an
event of default under any other agreement entered into by the Borrower or any
ERISA Affiliate, and in each case in clauses (A) through (I), such event or
condition, together with all other such events or conditions, if any, could
subject the Borrower or any ERISA Affiliate to any taxes, penalties or other
liabilities which would reasonably be expected to have a Material Adverse
Effect;

(xviii)      Borrower or any ERISA Affiliate (A) shall
have been notified by the sponsor of a Multiemployer Plan that it has incurred
any material withdrawal liability to such Multiemployer Plan, and (B) does not
have reasonable grounds for contesting such withdrawal liability and is not in
fact contesting such withdrawal liability in a timely and appropriate manner
which would reasonably be expected to have a Material Adverse Effect; or

(xix)         there shall be default under any of the
other Loan Documents beyond any applicable cure periods contained in such documents,
whether as to Borrower, any other Borrower Party or the Property, or if any
other event shall occur or condition shall exist, if the effect of such event
or condition is to accelerate the maturity of any portion of the Debt or to
permit Lender to accelerate the maturity of all or any portion of the Debt.

 169
 

(b)           Upon the occurrence
of an Event of Default (other than an Event of Default described in
clauses (vi), (vii) or (viii) above) and at any time thereafter,
in addition to any other rights or remedies available to it pursuant to this
Agreement and the other Loan Documents or at law or in equity, Lender may take
such action, without notice or demand, that Lender deems advisable to protect
and enforce its rights against Borrower and in and to the Property, including,
without limitation, declaring the Debt to be immediately due and payable, and
Lender may enforce or avail itself of any or all rights or remedies provided in
the Loan Documents against Borrower and the Property, including, without limitation,
all rights or remedies available at law or in equity; and upon any Event of
Default described in clauses (vi), (vii) or (viii) above, the
Debt and all other obligations of Borrower hereunder and under the other Loan
Documents shall immediately and automatically become due and payable, without
notice or demand, and Borrower hereby expressly waives any such notice or
demand, anything contained herein or in any other Loan Document to the contrary
notwithstanding.

Section 8.2.            Remedies.

(a)           Upon the occurrence
of an Event of Default, all or any one or more of the rights, powers,
privileges and other remedies available to Lender against Borrower under this
Agreement or any of the other Loan Documents executed and delivered by, or
applicable to, Borrower or at law or in equity may be exercised by Lender at
any time and from time to time, whether or not all or any of the Debt shall be
declared due and payable, and whether or not Lender shall have commenced any
foreclosure proceeding or other action for the enforcement of its rights and
remedies under any of the Loan Documents. 
Any such actions taken by Lender shall be cumulative and concurrent and
may be pursued independently, singularly, successively, together or otherwise,
at such time and in such order as Lender may determine in its sole discretion,
to the fullest extent permitted by law, without impairing or otherwise
affecting the other rights and remedies of Lender permitted by law, equity or
contract or as set forth herein or in the other Loan Documents.  Without limiting the generality of the
foregoing, Borrower agrees that if an Event of Default is continuing
(i) Lender is not subject to any “one action” or “election of remedies”
law or rule, and (ii) all liens and other rights, remedies or privileges provided
to Lender shall remain in full force and effect until Lender has exhausted all
of its remedies against the Property and the Security Instrument has been
foreclosed, sold and/or otherwise realized upon in satisfaction of the Debt or
the Debt has been paid in full.

(b)           Lender shall have
the right from time to time to sever the Note and the other Loan Documents into
one or more separate notes, mortgages and other security documents (the “Severed
Loan Documents”) in such denominations as Lender shall determine in its
sole discretion for purposes of evidencing and enforcing its rights and
remedies provided hereunder.  Borrower
shall execute and deliver to Lender from time to time, promptly after the
request of Lender, a severance agreement and such other documents as Lender
shall request in order to effect the severance described in the preceding
sentence, all in form and substance reasonably satisfactory to Lender.  Borrower hereby absolutely and irrevocably
appoints Lender as its true and lawful attorney, coupled with an interest, in
its name and stead to make and execute all documents necessary or desirable to
effect the aforesaid severance, Borrower ratifying all that its said attorney
shall do by virtue thereof; provided, that Lender shall not make or execute
any such documents under such power until three (3) days after notice has been
given to Borrower by Lender of Lender’s intent to exercise its rights under
such power.  Borrower shall be obligated
to

 170
 

pay all costs
or expenses incurred in connection with the preparation, execution, recording
or filing of the Severed Loan Documents. 
The Severed Loan Documents shall not contain any representations,
warranties or covenants not contained in the Loan Documents and any such
representations and warranties contained in the Severed Loan Documents will be
given by Borrower only as of the Closing Date. 
Unless an Event of Default shall exist, all reasonable third party costs
and expenses incurred by Borrower in connection with the foregoing shall be
paid by Lender.

(c)           The rights, powers
and remedies of Lender under this Agreement shall be cumulative and not
exclusive of any other right, power or remedy which Lender may have against
Borrower pursuant to this Agreement or the other Loan Documents, or existing at
law or in equity or otherwise.  Lender’s
rights, powers and remedies may be pursued singularly, concurrently or
otherwise, at such time and in such order as Lender may determine in Lender’s
sole discretion.  No delay or omission to
exercise any remedy, right or power accruing upon an Event of Default shall
impair any such remedy, right or power or shall be construed as a waiver
thereof, but any such remedy, right or power may be exercised from time to time
and as often as may be deemed expedient. 
A waiver of one Default or Event of Default with respect to Borrower
shall not be construed to be a waiver of any subsequent Default or Event of
Default by Borrower or to impair any remedy, right or power consequent thereon.

(d)           In
addition to any other rights and remedies which Lender may have pursuant to
this Agreement and the other Loan Documents or pursuant to law or equity, and
without limitation thereof, (i) so long as an Event of Default shall exist,
Lender may decline to make all or any portion of such further Advances as
Lender may elect and/or (ii) so long as an Event of Default shall exist, any or
all obligations of Lender under this Agreement, at the option of Lender, shall
cease and terminate; provided, however, Lender may make all or any
portion of any Advance so long as any such Event of Default shall exist without
thereby becoming obligated to make all or a portion of any other or further
Advance or waiving Lender’s right to exercise any of Lender’s rights and
remedies pursuant to any one or more of the Loan Documents or as may be
available at law or equity.

(e)           In
addition to any other rights and remedies which Lender may have under this
Agreement and the other Loan Documents or pursuant to law or equity, and
without limitation thereof, after the occurrence of any Event of Default and
upon acceleration of the Loan, Lender may enter upon the Property and into
possession of the Property and any other Property (and exclude Borrower and any
other persons therefrom) and cause completion of the construction of the
Project Improvements substantially in accordance with the Plans and
Specifications, with such changes therein as Lender may from time to time deem
appropriate, all at the sole risk, cost and expense of Borrower.  Lender shall have the right, at any and all
times, in its sole discretion to discontinue any work commenced by Lender with
respect to the construction of the Project Improvements or to change any course
of action undertaken by it and shall not be bound by any limitations or
requirements of time whether set forth herein or otherwise.  Upon acceleration of the Loan, Lender shall
have the right and power (but shall not be obligated) to assume all or any
portion of the obligations of Borrower under any or all Project Documents as
Lender may elect and to take over and use all or any part or parts of the
labor, materials, supplies and equipment contracted for by or on behalf of
Borrower, whether or not previously incorporated into the Property.  In connection with any portion of the
construction of the Project Improvements

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undertaken by Lender pursuant to the provisions of this Section 8.2,
Lender may do any or all of the following as Lender, in its sole discretion,
may elect:

(i)            engage builders,
general contractors, general and trade contractors, suppliers, architects,
engineers, inspectors and others for the purpose of furnishing labor,
materials, equipment and fixtures in connection with the construction of the
Project Improvements;

(ii)           amend, modify or
terminate any then existing contracts between Borrower and any of the persons
described in the preceding clause (i);

(iii)          pay, settle or
compromise all bills or claims which may become Liens against the Property, or
which have been or may be incurred in any manner in connection with the
construction of the Project Improvements or for the discharge of liens,
encumbrances or defects in the title of the Property; and

(iv)          take such other
action (including the employment of watchmen and the taking of other measures
to protect the Property) or refrain from acting under this Agreement as Lender
may in its sole and absolute discretion from time to time determine without any
limitation whatsoever.

(f)            Borrower
shall be liable to Lender for all sums paid or incurred for the construction of
the Project Improvements whether the same shall be paid or incurred pursuant to
the provisions of this Section 8.2 or otherwise, and all other payments
made or liabilities incurred by Lender under this Agreement of any kind
whatsoever (except to the extent it is determined by a court of competent
jurisdiction, beyond right of appeal, that such liabilities arose solely and
directly out of the gross negligence or willful misconduct of Lender), all of
which shall be paid by Borrower to Lender upon demand with interest at the Default
Rate to the date of payment to Lender, and all of the foregoing sums, including
such interest at the Default Rate, shall be deemed and shall constitute
advances under this Agreement and be evidenced by the Note and secured by the
Loan Documents.

ARTICLE IX.

SPECIAL PROVISIONS

Section 9.1.            Sale
of Note and Securitization; Mezzanine Loans.

9.1.1.       Sale
of Note and Securitization.  Borrower
acknowledges and agrees that Lender may sell all or any portion of the Loan and
the Loan Documents, or issue one or more participations therein, or consummate
one or more private or public securitizations of rated single- or multi-class
securities (the “Securities”) secured by or evidencing ownership
interests in all or any portion of the Loan and the Loan Documents or a pool of
assets that include the Loan and the Loan Documents (such sales, participations
and/or securitizations, collectively, a “Securitization”).  At the request of Lender, and to the extent
not already required to be provided by Borrower under this Agreement, Borrower
shall use reasonable efforts to provide information not in the possession of Lender
or which may be reasonably required by Lender in order to satisfy the market
standards to which Lender customarily adheres or which may be reasonably 

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required by prospective investors and/or the Rating Agencies in
connection with any such Securitization including, without limitation, to:

(a)           provide additional and/or updated
Provided Information, together with appropriate verification and/or consents
related to the Provided Information through letters of auditors or opinions of
counsel of independent attorneys reasonably acceptable to Lender and the Rating
Agencies;

(b)           assist in preparing descriptive
materials for presentations to any or all of the Rating Agencies, and work
with, and if requested, supervise, third-party service providers engaged by
Borrower and its Affiliates to obtain, collect, and deliver information
requested or required by Lender or the Rating Agencies;

(c)           deliver (i) updated opinions of
counsel as to non-consolidation, due execution and enforceability with respect
to the Property, Borrower and its Affiliates and the Loan Documents, including,
without limitation, a so-called “10b-5” opinion and (ii) revised
organizational documents for Borrower, which counsel opinions and
organizational documents shall be reasonably satisfactory to Lender and the
Rating Agencies;

(d)           if required by any Rating Agency, use
commercially reasonable efforts to deliver such additional tenant estoppel
letters, subordination agreements or other agreements from parties to
agreements that affect the Property, which estoppel letters, subordination
agreements or other agreements shall be reasonably satisfactory to Lender and
the Rating Agencies;

(e)           make such representations and
warranties as of the closing date of the Securitization with respect to the
Property, Borrower and its Affiliates and the Loan Documents as may be
reasonably requested by Lender or the Rating Agencies and consistent with the
facts covered by such representations and warranties as they exist on the date
thereof, including the representations and warranties made in the Loan
Documents;

(f)            execute such amendments to the Loan
Documents as may be reasonably requested by Lender or the Rating Agencies to
effect the Securitization and/or deliver one or more new component notes to
replace the original note or modify the original note to reflect multiple
components of the Loan (and such new notes or modified note shall have the same
initial weighted average coupon of the original note, but such new notes or
modified note may change the interest rate and amortization of the Loan), and
modify the cash management provisions contained in Section 2.6 of this
Agreement with respect to the newly created components such that the pricing
and marketability of the Securities and the size of each class of Securities
and the rating assigned to each such class by the Rating Agencies shall provide
the most favorable rating levels and achieve the optimum rating levels for the
Loan; provided that nothing contained in this Section 9.1(f) shall
result in any economic or other material adverse change in the transaction
contemplated by this Agreement or the other Loan Documents (unless Borrower is
made whole by the holder of the Notes) or result in any operational changes
that are unduly burdensome to

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the Collateral or any Borrower Party.  Notwithstanding anything to the contrary
contained herein, Borrower shall not be required to modify any Loan Document or
organizational document of any Borrower Party in a manner that would materially
increase such Borrower Party’s obligations or have any materially adverse
effect whatsoever on Borrower.

(g)           if requested by Lender, review any
information regarding the Property, Borrower, Principal, Manager and the Loan
which is contained in a preliminary or final private placement memorandum,
prospectus, prospectus supplement (including any amendment or supplement to
either thereof), or other disclosure document to be used by Lender or any affiliate
thereof; and

(h)           supply to Lender such documentation,
financial statements and reports in form and substance required in order to
comply with any applicable securities laws.

All reasonable third party costs and expenses incurred
by Borrower, Guarantor or any Affiliate thereof in connection with complying
with requests made under this Section 9.1.1 (including, without
limitation, the fees and expenses of the Rating Agencies) shall be paid by
Lender.

9.1.2.       Mezzanine
Loans.

(a)           Notwithstanding
anything contained in Section 9.1.1 to the contrary, Borrower covenants
and agrees that after the Closing Date and prior to a Securitization, Lender
shall have the right to establish different interest rates and to reallocate
the principal balances of each of the Loan and any New Mezzanine Loan between
each other and to require the payment of the Loan and each New Mezzanine Loan
in such order of priority as may be designated by Lender; provided, that
(i) in no event shall the weighted average interest rate of the Loan and any
New Mezzanine Loan(s) following any such reallocation or modification change
from the weighted average interest rate for all in effect immediately preceding
such reallocation, modification or creation of any New Mezzanine Loan(s), and
(ii) such New Mezzanine Loan(s) will not materially increase Borrower’s
obligations and liabilities under the Loan Documents or materially decrease the
rights of Borrower under the Loan Documents (other than, in each case,
administratively or in a de minimis
respect).

(b)           Notwithstanding
anything contained in Section 9.1.1 to the contrary, Borrower covenants
and agrees that after the Closing Date and prior to a Securitization, Lender
shall have the right to create one or more additional mezzanine loans (each, a “New Mezzanine Loan”),
to establish different interest rates and to reallocate principal balances of
each of the Loan, the Mezzanine Loan and any New Mezzanine Loan(s) amongst each
other and to reallocate the interest rate among the Loan, the Mezzanine Loan
and any new Mezzanine Loan(s) and to require the payment of the Loan, the
Mezzanine Loan and any New Mezzanine Loan(s) in such order of priority as may
be designated by Lender; provided, that (i) in no event shall the
weighted average interest rate of the Loan and any New Mezzanine Loan(s)
following any such reallocation or modification change from the weighted
average interest rate for all in effect immediately preceding such
reallocation, modification or creation of any New Mezzanine Loan(s), and (ii)
such New Mezzanine Loan(s) will not materially increase Borrower’s

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obligations
and liabilities under the Loan Documents or materially decrease the rights of
Borrower under the Loan Documents (other than, in each case, administratively
or in a de minimis respect).  Borrower
shall execute and deliver such documents as shall reasonably be required by
Lender as promptly as possible under the circumstances in connection with this Section
9.3, all in form and substance reasonably satisfactory to Borrower, Lender
and the Rating Agencies, including, without limitation, in connection with the
creation of any New Mezzanine Loan, a promissory note and loan documents
necessary to evidence such New Mezzanine Loan, and Borrower shall execute such
amendments to the Loan Documents and the documents relating to any other New
Mezzanine Loans as are necessary in connection with the creation of such New
Mezzanine Loan all of which shall be on substantially the same terms and
conditions as the Loan Documents.  In
addition, Borrower shall cause the formation of one or more special purpose,
bankruptcy remote entities as required by Lender in order to serve as the
borrower under any New Mezzanine Loan (each, a “New Mezzanine Borrower”) and
the applicable organizational documents of Borrower and the borrower under any
other New Mezzanine Loan shall be amended and modified as necessary or required
in the formation of any New Mezzanine Borrower. 
Further, in connection with any New Mezzanine Loan, Borrower shall
deliver to Lender opinions of legal counsel, in substantially the same form as
were delivered in connection with the Loan, with respect to due execution,
authority and enforceability of the New Mezzanine Loan and the Loan Documents
and the documents relating to any other New Mezzanine Loan, as amended and an
Additional Insolvency Opinion for the Loan and each New Mezzanine Loan and a
substantive non-consolidation opinion with respect to any New Mezzanine Loan,
each as reasonably acceptable to Lender, prospective investors and/or the Rating
Agencies.  All reasonable third party
costs actually incurred by Borrower, any Borrower Party, or any New Mezzanine
Borrower in connection with complying with requests made under this Section
9.1.2 shall be paid by Lender. Notwithstanding the foregoing, Borrower
shall not be required to take any action under this Section 9.1.2 that
would result in any breach of its representations, warranties or covenants
contained in Section 5.1.10.

9.1.3.       Re-Dating.  In connection with a Securitization or other
sale of all or a portion of the Loan, Lender shall have the right to modify all
operative dates (excluding the Maturity Date but including payment dates,
interest period start dates and end dates, etc.) under the Loan Documents, by
up to ten (10) days (such action and all related action is a “Re-Dating”).  Borrower shall cooperate with Lender, at
Lender’s expense, to implement any Re-Dating. 
If Borrower fails to cooperate with Lender within ten (10) Business Days
of written request by Lender, Lender is hereby appointed as Borrower’s attorney
in fact to execute any and all documents necessary to accomplish the Re-Dating.

Section 9.2.            Securitization
Indemnification.

(a)           Borrower understands
that certain of the Provided Information may be included in Disclosure Documents
in connection with the Securitization and may also be included in filings with
the Securities and Exchange Commission pursuant to the Securities Act of 1933,
as amended (the “Securities Act”), or the Securities and Exchange Act of
1934, as amended (the “Exchange Act”), or provided or made available to
investors or prospective investors in the Securities, the Rating Agencies, and
service providers relating to the Securitization.  In the event that the Disclosure Document is
required to be revised prior to the sale of all Securities, Borrower will
cooperate with the holder of the Note (at such holder’s expense) in updating
the

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Disclosure
Document by providing all current information necessary to keep the Provided
Information contained therein accurate and complete in all material respects.

(b)           Borrower agrees to
provide, in connection with the Securitization, an indemnification agreement
(i) certifying that (A) the Indemnifying Persons have carefully examined the
Disclosure Documents, including, without limitation, the sections entitled “Risk
Factors,” “Special Considerations,” “Description of the Mortgages,” “Description
of the Mortgage Loans and Mortgaged Property,” “The Manager,” “The Borrower”
and “Certain Legal Aspects of the Mortgage Loan,” and (B) such sections and
such other information in the Disclosure Documents (in each case only to the
extent such information relates to or includes any Provided Information)
(collectively with the Provided Information, the “Covered Disclosure
Information”) do not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements made,
in the light of the circumstances under which they were made, not misleading,
(ii) jointly and severally indemnifying Lender, Credit Suisse (whether or
not it is Lender), any Affiliate of Credit Suisse that has filed any
registration statement relating to the Securitization or has acted as the
sponsor or depositor in connection with the Securitization, any Affiliate of
Credit Suisse that acts as an underwriter, placement agent or initial purchaser
of Securities issued in the Securitization, any other co-underwriters,
co-placement agents or co-initial purchasers of Securities issued in the
Securitization, and each of their respective officers, directors, partners,
employees, representatives, agents and Affiliates and each Person or entity who
controls any such Person within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (collectively, the “Indemnified
Persons”), for any losses, claims, damages, liabilities, costs or expenses
(including, without limitation, legal fees and expenses for enforcement of
these obligations (collectively, the “Liabilities”)) to which any such
Indemnified Person may become subject insofar as the Liabilities arise out of
or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the Covered Disclosure Information or arise out of
or are based upon the omission or alleged omission to state in the Covered
Disclosure Information a material fact required to be stated therein or
necessary in order to make the statements in the Covered Disclosure
Information, in light of the circumstances under which they were made, not
misleading and (iii) agreeing to reimburse each Indemnified Person for any
legal or other expenses incurred by such Indemnified Person, as they are
incurred, in connection with investigating or defending the Liabilities.  This indemnity agreement will be in addition
to any liability which Borrower may otherwise have.  Moreover, the indemnification provided for in
clauses (ii) and (iii) above shall be effective whether or not an
indemnification agreement described in clause (i) above is provided.

(c)           In connection with
Exchange Act Filings, Borrower agrees to indemnify (i) the Indemnified
Persons for Liabilities to which any such Indemnified Person may become subject
insofar as the Liabilities arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact in the Covered Disclosure
Information, or the omission or alleged omission to state in the Covered
Disclosure Information a material fact required to be stated therein or
necessary in order to make the statements in the Covered Disclosure Information,
in light of the circumstances under which they were made, not misleading and
(ii) reimburse each Indemnified Person for any legal or other expenses
incurred by such Indemnified Persons, as they are incurred, in connection with
defending or investigating the Liabilities.

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(d)           Promptly after
receipt by an Indemnified Person of notice of any claim or the commencement of
any action, the Indemnified Person shall, if a claim in respect thereof is to
be made against any Indemnifying Person, notify such Indemnifying Person in
writing of the claim or the commencement of that action; provided, that
the failure to notify such Indemnifying Person shall not relieve it from any
liability which it may have under the indemnification provisions of this Section 9.2
except to the extent that it has been materially prejudiced by such failure
and, provided  further that the failure to notify such
Indemnifying Person shall not relieve it from any liability which it may have
to an Indemnified Person otherwise than under the provisions of this Section 9.2.  If any such claim or action shall be brought
against an Indemnified Person, and it shall notify any Indemnifying Person
thereof, such Indemnifying Person shall be entitled to participate therein and,
to the extent that it wishes, assume the defense thereof with counsel
reasonably satisfactory to the Indemnified Person.  After notice from any Indemnifying Person to
the Indemnified Person of its election to assume the defense of such claim or
action, such Indemnifying Person shall not be liable to the Indemnified Person
for any legal or other expenses subsequently incurred by the Indemnified Person
in connection with the defense thereof except as provided in the following
sentence; provided, that if the defendants in any such action include
both an Indemnifying Person, on the one hand, and one or more Indemnified
Persons on the other hand, and an Indemnified Person shall have reasonably
concluded that there are any legal defenses available to it and/or other
Indemnified Persons that are different or in addition to those available to the
Indemnifying Person, the Indemnified Person or Persons 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 Person
or Persons.  The Indemnified Person shall
instruct its counsel to maintain reasonably detailed billing records for fees
and disbursements for which such Indemnified Person is seeking reimbursement
hereunder and shall submit copies of such detailed billing records to
substantiate that such counsel’s fees and disbursements are solely related to
the defense of a claim for which the Indemnifying Person is required hereunder
to indemnify such Indemnified Person.  No
Indemnifying Person shall be liable for the expenses of more than one (1) such
separate counsel unless such Indemnified Person shall have reasonably concluded
that there may be legal defenses available to it that are different from or
additional to those available to another Indemnified Person.

(e)           Without the prior
consent of Credit Suisse (which consent shall not be unreasonably withheld),
Borrower shall not settle or compromise or consent to the entry of any judgment
in any pending or threatened claim, action, suit or proceeding in respect of
which indemnification may be sought hereunder (whether or not any Indemnified
Person is an actual or potential party to such claim, action, suit or
proceeding) unless the Indemnifying Person shall have given Credit Suisse reasonable
prior notice thereof and shall have obtained an unconditional release of each
Indemnified Person hereunder from all liability arising out of such claim,
action, suit or proceedings.  As long as
Borrower has complied with its obligations to defend and indemnify hereunder,
Borrower shall not be liable for any settlement made by any Indemnified Person
without the consent of Borrower (which consent shall not be unreasonably
withheld).

(f)            Borrower agrees
that if any indemnification or reimbursement sought pursuant to this Section 9.2
is finally judicially determined to be unavailable for any reason or is
insufficient to hold any Indemnified Person harmless (with respect only to the
Liabilities that are the subject

 177
 

of this Section 9.2),
then Borrower, on the one hand, and such Indemnified Person, on the other hand,
shall contribute to the Liabilities for which such indemnification or
reimbursement is held unavailable or is insufficient:  (x) in such proportion as is appropriate
to reflect the relative benefits to Borrower, on the one hand, and such
Indemnified Person, on the other hand, from the transactions to which such
indemnification or reimbursement relates; or (y) if the allocation
provided by clause (x) above is not permitted by applicable law, in such proportion
as is appropriate to reflect not only the relative benefits referred to in
clause (x) but also the relative faults of Borrower, on the one hand, and
all Indemnified Persons, on the other hand, as well as any other equitable
considerations.  Notwithstanding the
provisions of this Section 9.2, (A) no party found liable for
a fraudulent misrepresentation shall be entitled to contribution from any other
party who is not also found liable for such fraudulent misrepresentation, and
(B) the Indemnifying Persons agree that in no event shall the amount to be
contributed by the Indemnified Persons collectively pursuant to this paragraph
exceed the amount of the fees (by underwriting discount or otherwise) actually
received by the Indemnified Persons in connection with the closing of the Loan
or the Securitization.

(g)           Borrower agrees that
the indemnification, contribution and reimbursement obligations set forth in
this Section 9.2 shall apply whether or not any Indemnified Person
is a formal party to any lawsuits, claims or other proceedings.  Borrower further agrees that the Indemnified
Persons are intended third party beneficiaries under this Section 9.2.

(h)           The liabilities and
obligations of the Indemnified Persons and Borrower under this Section 9.2
shall survive the termination of this Agreement and the satisfaction and
discharge of the Debt.

(i)            Notwithstanding
anything to the contrary contained herein, Borrower shall have no obligation to
act as depositor with respect to the Loan or an issuer or registrant with
respect to the Securities issued in any Securitization.

Section 9.3.            Real
Property Indemnifications.

(a)           Borrower 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 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 arising out
of or in any way relating to any one or more of the following (except in each
case to the extent such Losses were caused as a result of the gross negligence
or willful misconduct or breach of any Loan Document by of any Indemnified
Party):

(i)            ownership of the Security
Instrument, the Property or any interest therein or receipt of any Rents;

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(ii)           any amendment to, or restructuring
of, the Debt, the Note, the Loan Agreement, the Security Instrument, or any
other Loan Documents;

(iii)          any and all lawful action that may be
taken by Lender in connection with the enforcement of the provisions of the
Security Instrument, the Loan Agreement, the Note or any of the other Loan
Documents, whether or not suit is filed in connection with same, or in
connection with Borrower, 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;

(iv)          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;

(v)           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;

(vi)          any failure on the part of Borrower to
perform or be in compliance with any of the terms of the Security Instrument,
the Note, the Loan Agreement or any of the other Loan Documents;

(vii)         performance of any labor or services or
the furnishing of any materials or other property in respect of the Property or
any part thereof;

(viii)        any failure of the Property to be in
compliance with any Legal Requirements;

(ix)           the enforcement by any Indemnified
Party of the provisions of this Section 9.3;

(x)            any and all claims and demands
whatsoever which may be asserted against Lender 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;

(xi)           the payment of any commission, charge
or brokerage fee to anyone claiming through Borrower which may be payable in
connection with the funding of the Loan; or

(xii)          any misrepresentation made by Borrower
in the Security Instrument or any other Loan Document.

(b)           Any amounts payable
to Lender by reason of the application of this Section 9.3 shall become
immediately due and payable and shall bear interest at the Default Rate from
the date loss or damage is sustained by Lender until paid.  For purposes of this Section 9.3, the
term “Indemnified Parties” means Lender, any Person who is or will have
been involved in the servicing of the Loan, any Person in whose name the
encumbrance created by the Security Instrument is or will have been recorded,
Persons who may hold or acquire or will have held a

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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 Lender’s assets
and business).

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

(d)           Borrower 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 Lender’s sole discretion) that Lender may incur, directly or
indirectly, as a result of a default under any of the provisions of Section
5.1.19.

(e)           Upon written request
by any Indemnified Party, Borrower 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 Borrower and any
Indemnified Party and Borrower 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
Borrower, 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 Borrower’s consent, which
consent shall not be unreasonably withheld. 
Upon demand, Borrower 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.

Section 9.4.            Exculpation.

(a)           Subject to the
further qualifications of this Section 9.4, Lender shall not enforce the
liability and obligation of Borrower to perform and observe the obligations
contained in the Note, this Agreement, the Security Instrument or the other
Loan Documents by any action or proceeding wherein a money judgment shall be
sought against Borrower, except that Lender may bring a foreclosure action, an
action for specific performance or any other appropriate action or

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proceeding to
enable Lender to enforce and realize upon its interest under the Note, this
Agreement, the Security Instrument and the other Loan Documents, or in the
Property, the Rents, or any other collateral given to Lender pursuant to the
Loan Documents; provided, that, except as specifically provided herein,
any judgment in any such action or proceeding shall be enforceable against
Borrower only to the extent of Borrower’s interest in the Property, in the
Rents and in any other collateral given to Lender, and Lender, by accepting the
Note, this Agreement, the Security Instrument and the other Loan Documents,
agrees that it shall not sue for, seek or demand any deficiency judgment against
Borrower in any such action or proceeding under, or by reason of, or in
connection with, the Note, this Agreement, the Security Instrument or the other
Loan Documents.  The provisions of this Section
9.4(a) shall not, however, (i) constitute a waiver, release or impairment
of any obligation evidenced or secured by any of the Loan Documents; (ii)
impair the right of Lender to name Borrower as a party defendant in any action
or suit for foreclosure and sale under the Security Instrument; (iii) affect the
validity or enforceability of or any Guaranty made in connection with the Loan
or any of the rights and remedies of Lender thereunder; (iv) impair the right
of Lender to obtain the appointment of a receiver; (v) impair the enforcement
of the Assignment of Leases; or (vi) constitute a prohibition against Lender to
seek a deficiency judgment against Borrower in order to fully realize the
security granted by the Security Instrument or to commence any other
appropriate action or proceeding in order for Lender to exercise its remedies
against the Property.

(b)           The provisions of Section
9.4(a) shall not constitute a waiver of the right of Lender to enforce the
liability and obligation of Borrower, by money judgment or otherwise, to the
extent of any loss, damage, cost, expense, liability, claim or other obligation
incurred by Lender (including attorneys’ fees and costs reasonably incurred)
arising out of or in connection with the following:

(i)            fraud or material misrepresentation
by Borrower, Guarantor or any of their respective Affiliates;

(ii)           any willful act of material waste of
the Property or any damage to the Property arising from the intentional
misconduct or gross negligence of Borrower, Guarantor or any of their
respective principals or any removal of the Property in violation of the Loan
Documents;

(iii)          the breach of any representation,
warranty, covenant or indemnification provision in the Environmental Indemnity
Agreement or in the Security Instrument concerning environmental laws,
hazardous substances and asbestos and any indemnification of Lender with
respect thereto in either document;

(iv)          the removal or disposal of any portion
of the Property after an Event of Default;

(v)           the misappropriation, intentional
misapplication or conversion by Borrower or any of its Affiliates of
(A) any Insurance Proceeds paid by reason of any Casualty, (B) any
Awards received in connection with a Condemnation, (C) any Rents following
an Event of Default and not applied to Debt Service, Operating Expenses or
otherwise paid to Lender, or (D) any Rents paid more than one (1) month in
advance;

 181
 

(vi)          failure to pay charges for labor or
materials or other charges that can create Liens on any portion of the Property
to the extent funds are available for such purpose (it being understood that
there shall be no recourse if Lender is obligated to apply such funds held in
any applicable Reserve Account to pay the foregoing and fails to do so);

(vii)         failure by OpBiz to continue to operate
the Casino Component and maintain the Gaming Licenses at any time in accordance
with the requirements of Section 5.1.26(e);

(viii)        any security deposits, advance deposits
or any other deposits collected with respect to the Property which are not
delivered to Lender upon a foreclosure of the Property or action in lieu
thereof, except to the extent any such security deposits were applied in
accordance with the terms and conditions of any of the Leases prior to the
occurrence of the Event of Default that gave rise to such foreclosure or action
in lieu thereof;

(ix)           any distribution, dividend or other
payment made in contravention of the provisions of Section 5.2.9.

(c)           Notwithstanding
anything to the contrary in this Agreement, the Note or any of the Loan
Documents, (i) Lender shall not be deemed to have waived any right which Lender
may have under Section 506(a), 506(b), 1111(b) or any other provisions of
the U.S. Bankruptcy Code to file a claim for the full amount of the Debt
secured by the Security Instrument or to require that all collateral shall continue
to secure all of the Debt owing to Lender in accordance with the Loan
Documents, and (ii) the Debt shall be fully recourse to Borrower (A) in the
event of: (I) Borrower filing a voluntary petition under the Bankruptcy Code or
any other Federal or state bankruptcy or insolvency law; (II) the filing of an
involuntary petition against Borrower under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law by any other Person in which
Borrower, Principal or Guarantor or any of their respective Affiliates, agents
or employees colludes with or otherwise assists such other Person, or Borrower,
Principal or Guarantor or any of their respective Affiliates, agents or
employees soliciting, or causing to be solicited, petitioning creditors for an
involuntary petition against Borrower under the Bankruptcy Code or any other
Federal or state bankruptcy or insolvency law; (III) Borrower filing an answer
consenting to or otherwise acquiescing in or joining in any involuntary
petition filed against it, by any other Person under the Bankruptcy Code or any
other Federal or state bankruptcy or insolvency law; (IV) Borrower
consenting to or acquiescing in or joining in an application for the
appointment of a custodian, receiver, trustee, or examiner for Borrower or any
portion of the Property; (V) Borrower making an assignment for the benefit
of creditors, or admitting, in writing or in any legal proceeding, its
insolvency or inability to pay its debts as they become due; (B) if any SPE
Entity fails to maintain its status as a Special Purpose Entity as required by,
and in accordance with, the terms and provisions of this Agreement or the
Security Instrument and by reason thereof any of the assets of such SPE Entity
are consolidated into the bankruptcy estate of any other Person; (C) if
Borrower fails to obtain Lender’s prior consent to any Indebtedness or
voluntary Lien encumbering the Property as required by this Agreement or the
Security Instrument; or (D) if Borrower fails to obtain Lender’s prior
consent to any Transfer as required by this Agreement or the Security
Instrument.

 

 182

 

Section 9.5.            Servicer.  At the option of Lender, the Loan may be
serviced by a servicer/trustee (the “Servicer”) selected by Lender and
Lender may delegate all or any portion of its responsibilities under this
Agreement and the other Loan Documents to the Servicer pursuant to a servicing
agreement (the “Servicing Agreement”) between Lender and Servicer.  Borrower shall be responsible for any
reasonable set-up fees or any other initial costs relating to or arising
under the Servicing Agreement; provided, that Borrower shall not be
responsible for payment of the monthly servicing fee due to the Servicer under
the Servicing Agreement. At no time shall Borrower be required to deal with
more than three Servicers or agents with respect to the Loan.

ARTICLE X.

MISCELLANEOUS

Section 10.1.          Survival.  This Agreement and all covenants, agreements,
representations and warranties made herein and in the certificates delivered
pursuant hereto shall survive the making by Lender of the Loan and the
execution and delivery to Lender of the Note, and shall continue in full force
and effect so long as all or any of the Debt is outstanding and unpaid unless a
longer period is expressly set forth herein or in the other Loan
Documents.  Whenever in this Agreement
any of the parties hereto is referred to, such reference shall be deemed to
include the legal representatives, successors and assigns of such party.  All covenants, promises and agreements in
this Agreement, by or on behalf of Borrower, shall inure to the benefit of the
legal representatives, successors and assigns of Lender.

Section 10.2.          Lender’s
Discretion.  Whenever pursuant to
this Agreement, Lender exercises any right given to it to approve or
disapprove, or any arrangement or term is to be satisfactory to Lender, the decision
of Lender to approve or disapprove or to decide whether arrangements or terms
are satisfactory or not satisfactory shall (except as is otherwise specifically
herein provided) be in the sole discretion of Lender and shall be final and
conclusive.  Whenever this Agreement
expressly provides that Lender may not withhold its consent or its approval of
an arrangement or term, such provisions shall also be deemed to prohibit Lender
from delaying or conditioning such consent or approval.  Prior to a Securitization, whenever pursuant
to this Agreement the Rating Agencies are given any right to approve or
disapprove, or any arrangement or term is to be satisfactory to the Rating
Agencies, the decision of Lender to approve or disapprove or to decide whether arrangements
or terms are satisfactory or not satisfactory, based upon Lender’s
determination of Rating Agency criteria, shall be substituted therefor.

Section 10.3.          GOVERNING
LAW.

(A)          THIS AGREEMENT WAS
NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED
BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED
PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE
PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING
TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, THIS AGREEMENT, 

 183
 

THE NOTE AND
THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED
STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION,
PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED
PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY
AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS
LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW
OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION,
VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS
ARISING HEREUNDER OR THEREUNDER.  TO THE
FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS
AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

(B)           ANY LEGAL SUIT, ACTION OR PROCEEDING
AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
OTHER LOAN DOCUMENTS MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR
STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO
SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND
BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON
VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND
BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN
ANY SUIT, ACTION OR PROCEEDING.  BORROWER
DOES HEREBY DESIGNATE AND APPOINT:

NATIONAL
REGISTERED AGENTS, INC.

875 AVENUE OF THE AMERICAS

SUITE 501

NEW YORK, NEW YORK 10001

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE
OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR
PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT
SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE
MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT,
ACTION OR PROCEEDING IN THE STATE OF NEW YORK. 
BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED
ADDRESS OF ITS AUTHORIZED 

 184
 

AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK
(WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND
ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A
SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW
YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

Section 10.4.          Modification,
Waiver in Writing.  No modification,
amendment, extension, discharge, termination or waiver of any provision of this
Agreement, or of the Note, or of any other Loan Document, nor consent to any
departure by Borrower therefrom, shall in any event be effective unless the
same shall be in a writing signed by the party against whom enforcement is
sought, and then such waiver or consent shall be effective only in the specific
instance, and for the purpose, for which given. 
Except as otherwise expressly provided herein, no notice to, or demand
on Borrower, shall entitle Borrower to any other or future notice or demand in
the same, similar or other circumstances.

Section 10.5.          Delay
Not a Waiver.  Neither any failure
nor any delay on the part of Lender in insisting upon strict performance of any
term, condition, covenant or agreement, or exercising any right, power, remedy
or privilege hereunder, or under the Note or under any other Loan Document, or
any other instrument given as security therefor, shall operate as or constitute
a waiver thereof, nor shall a single or partial exercise thereof preclude any
other future exercise, or the exercise of any other right, power, remedy or
privilege.  In particular, and not by way
of limitation, by accepting payment after the due date of any amount payable
under this Agreement, the Note or any other Loan Document, Lender shall not be
deemed to have waived any right either to require prompt payment when due of
all other amounts due under this Agreement, the Note or the other Loan
Documents, or to declare a default for failure to effect prompt payment of any
such other amount.

Section 10.6.          Notices.  All notices, consents, approvals and requests
required or permitted hereunder or under any other Loan Document 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 Section 10.6):

	
  If to Lender:

  	
   

  	
  Column Financial, Inc.

  
	
   

  	
   

  	
  11 Madison
  Avenue

  
	
   

  	
   

  	
  New York, New
  York 10010

  
	
   

  	
   

  	
  Attention:
  Michael May - Director

  
	
   

  	
   

  	
  Facsimile No.:
  (212) 352-8106

  
	
   

  	
   

  	
   

  

 

 185
 

 

	
  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) 801-6400

  

 

A notice shall be deemed to have been given:  in the case of hand delivery, at the time of
delivery; in the case of registered or certified mail, when delivered or the
first attempted delivery on a Business Day; or in the case of expedited prepaid
delivery and telecopy, upon the first attempted delivery on a Business Day; or
in the case of telecopy, upon sender’s receipt of a machine-generated
confirmation of successful transmission after advice by telephone to recipient
that a telecopy notice is forthcoming.

Section 10.7.          TRIAL
BY JURY.  BORROWER HEREBY AGREES NOT
TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY
RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM
OR OTHER ACTION ARISING IN CONNECTION THEREWITH.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY
JURY WOULD OTHERWISE ACCRUE.  LENDER IS
HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS
CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER.

Section 10.8.          Headings.  The Article and/or Section headings and the
Table of Contents in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other
purpose.

 186
 

Section 10.9.          Severability.  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Agreement.

Section 10.10.        Preferences. 
Lender shall have the continuing and exclusive right to apply or reverse
and reapply any and all payments by Borrower to any portion of the obligations
of Borrower hereunder.  To the extent
Borrower makes a payment or payments to Lender, which payment or proceeds or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or
equitable cause, then, to the extent of such payment or proceeds received, the
obligations hereunder or part thereof intended to be satisfied shall be revived
and continue in full force and effect, as if such payment or proceeds had not been
received by Lender.

Section 10.11.        Waiver of Notice. 
Borrower hereby expressly waives, and shall not be entitled to, any
notices of any nature whatsoever from Lender except with respect to matters for
which this Agreement or the other Loan Documents specifically and expressly
provide for the giving of notice by Lender to Borrower and except with respect
to matters for which Borrower is not, pursuant to applicable Legal
Requirements, permitted to waive the giving of notice.

Section 10.12.        Remedies of Borrower. 
In the event that a claim or adjudication is made that Lender or its
agents have acted unreasonably or unreasonably delayed acting in any case where
by law or under this Agreement or the other Loan Documents, Lender or such
agent, as the case may be, has an obligation to act reasonably or promptly,
Borrower agrees that neither Lender nor its agents shall be liable for any
monetary damages, and Borrower’s sole remedies shall be limited to commencing
an action seeking injunctive relief or declaratory judgment.  The parties hereto agree that any action or
proceeding to determine whether Lender has acted reasonably shall be determined
by an action seeking declaratory judgment and injunctive relief as appropriate.

Section 10.13.        Expenses and Indemnity.

(a)           Borrower covenants
and agrees to pay or, if Borrower fails to pay, to reimburse, Lender upon
receipt of notice from Lender for all reasonable costs and expenses (including
reasonable attorneys’ fees and disbursements) incurred by Lender in connection
with (i) the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents and the consummation of the transactions
contemplated hereby and thereby and all the costs of furnishing all opinions by
counsel for Borrower (including without limitation any opinions requested by
Lender and required to be provided by Borrower pursuant to the Loan Documents
as to any legal matters arising under this Agreement or the other Loan
Documents with respect to the Property); (ii) Borrower’s ongoing
performance of and compliance with Borrower’s respective agreements and
covenants contained in this Agreement and the other Loan Documents on its part
to be performed or complied with after the Closing Date, including, without
limitation, confirming compliance with environmental and insurance
requirements; (iii) Lender’s ongoing performance and compliance with all
agreements and conditions 

 187
 

contained in
this Agreement and the other Loan Documents on its part to be performed or
complied with after the Closing Date; (iv) the negotiation, preparation,
execution, delivery and administration of any consents, amendments, waivers or
other modifications to this Agreement and the other Loan Documents and any
other documents or matters requested by Lender; (v) securing Borrower’s
compliance with any requests made pursuant to the provisions of this Agreement
and the other Loan Documents; (vi) the filing and recording fees and
expenses, title insurance and reasonable fees and expenses of counsel for
providing to Lender all required legal opinions, and other similar expenses
incurred in creating and perfecting the Liens in favor of Lender pursuant to
this Agreement and the other Loan Documents; (vii) enforcing or preserving
any rights, either in response to third party claims or in prosecuting or
defending any action or proceeding or other litigation, in each case against,
under or affecting Borrower, this Agreement, the other Loan Documents, the
Property, or any other security given for the Loan; and (viii) enforcing
any obligations of or collecting any payments due from Borrower under this
Agreement, the other Loan Documents or with respect to the Property or in
connection with any refinancing or restructuring of the credit arrangements
provided under this Agreement in the nature of a “work-out” or of any
insolvency or bankruptcy proceedings; provided, that Borrower shall not
be liable for the payment of any such costs and expenses to the extent the same
arise by reason of the gross negligence, illegal acts, fraud or willful
misconduct of Lender or the breach by Lender of this Agreement or any other
Loan Documents.

(b)           Borrower shall
indemnify, defend and hold harmless Lender, Lender’s Affiliates and their
respective officers, directors, agents, employees (and the successors and
assigns of the foregoing) from and against any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, claims,
costs, expenses and disbursements of any kind or nature whatsoever (including,
without limitation, the reasonable fees and disbursements of counsel for Lender
in connection with any investigative, administrative or judicial proceeding
commenced or threatened, whether or not Lender shall be designated a party
thereto), that may be imposed on, incurred by, or asserted against Lender in
any manner relating to or arising out of the making or holding or enforcement
of the Loan, including, but not limited to (i) any breach by Borrower of its
obligations under, or any misrepresentation by Borrower contained in, this
Agreement or the other Loan Documents, or (ii) the use or intended use of the
proceeds of the Loan (collectively, the “Indemnified Liabilities”); provided,
that Borrower shall not have any obligation to Lender hereunder to the extent
such Indemnified Liabilities arise by reason of the gross negligence, illegal
acts, fraud or willful misconduct of Lender. 
To the extent that the undertaking to indemnify, defend and hold
harmless set forth in the preceding sentence may be unenforceable because it violates
any law or public policy, Borrower shall pay the maximum portion that it is
permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Lender.

(c)           Borrower covenants
and agrees to pay for or, if Borrower fails to pay, to reimburse Lender for,
any fees and expenses incurred by any Rating Agency in connection with any
Rating Agency review of the Loan, the Loan Documents or any transaction
contemplated thereby or any consent, approval, waiver or confirmation obtained
from such Rating Agency pursuant to the terms and conditions of this Agreement
or any other Loan Document by reason of a Borrower request and Lender shall be
entitled to require payment of such fees and expenses as a condition precedent
to the obtaining of any such consent, approval, waiver or confirmation.

 188
 

Section 10.14.        Schedules Incorporated.  The Schedules annexed hereto are hereby
incorporated herein as a part of this Agreement with the same effect as if set
forth in the body hereof.

Section 10.15.        Offsets, Counterclaims and Defenses.  Any assignee of Lender’s interest in and to
this Agreement, the Note and the other Loan Documents shall take the same free
and clear of all offsets, counterclaims or defenses which are unrelated to such
documents which Borrower may otherwise have against any assignor of such
documents, and no such unrelated counterclaim or defense shall be interposed or
asserted by Borrower in any action or proceeding brought by any such assignee
upon such documents and any such right to interpose or assert any such
unrelated offset, counterclaim or defense in any such action or proceeding is
hereby expressly waived by Borrower.

Section 10.16.        No Joint Venture or Partnership.  Borrower and Lender intend that the
relationships created hereunder and under the other Loan Documents be solely
that of borrower and lender.  Nothing
herein or therein is intended to create a joint venture, partnership, tenancy-in-common,
or joint tenancy relationship between Borrower and Lender nor to grant Lender
any interest in the Property other than that of mortgagee, beneficiary or
lender.

Section 10.17.        No Third Party Beneficiaries.  This Agreement and the other Loan Documents
are solely for the benefit of Lender and Borrower and nothing contained in this
Agreement or the other Loan Documents shall be deemed to confer upon anyone
other than Lender and Borrower any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein.  All conditions to the obligations of Lender
to make the Loan hereunder are imposed solely and exclusively for the benefit
of Lender and no other Person shall have standing to require satisfaction of
such conditions in accordance with their terms or be entitled to assume that
Lender will refuse to make the Loan in the absence of strict compliance with
any or all thereof and no other Person shall under any circumstances be deemed
to be a beneficiary of such conditions, any or all of which may be freely waived
in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it
advisable or desirable to do so.

Section 10.18.        Publicity.  All
news releases, publicity or advertising by Borrower or their Affiliates through
any media intended to reach the general public which refers to the Loan
Documents or the financing evidenced by the Loan Documents, to Lender, Credit
Suisse, or any of their Affiliates shall be subject to the prior approval of
Lender (excluding any such disclosure which Borrower or any of its Affiliates
is required to make by applicable law to the extent so required thereunder).

Section 10.19.        Waiver of Marshalling of Assets.  To the fullest extent permitted by law,
Borrower, for itself and its successors and assigns, waives all rights to a
marshalling of the assets of Borrower, Borrower’s partners and others with
interests in Borrower, and of the Property, or to a sale in inverse order of
alienation in the event of foreclosure of the Security Instrument, and agrees
not to assert any right under any laws pertaining to the marshalling of assets,
the sale in inverse order of alienation, homestead exemption, the
administration of estates of decedents, or any other matters whatsoever to
defeat, reduce or affect the right of Lender under the Loan Documents to a sale
of the Property for the collection of the Debt without any prior or different 

 189
 

resort for collection or of the right of Lender to the payment of the
Debt out of the net proceeds of the Property in preference to every other
claimant whatsoever.

Section 10.20.        Waiver of Counterclaim.  Borrower hereby waives the right to assert a
counterclaim, other than a compulsory counterclaim, in any action or proceeding
brought against it by Lender or its agents.

Section 10.21.        Conflict; Construction of Documents; Reliance.  In the event of any conflict between the
provisions of this Loan Agreement and any of the other Loan Documents, the
provisions of this Loan Agreement shall control.  The parties hereto acknowledge that they were
represented by competent counsel in connection with the negotiation, drafting
and execution of the Loan Documents and that such Loan Documents shall not be
subject to the principle of construing their meaning against the party which
drafted same.  Borrower acknowledges that,
with respect to the Loan, Borrower shall rely solely on its own judgment and
advisors in entering into the Loan without relying in any manner on any
statements, representations or recommendations of Lender or any parent,
subsidiary or Affiliate of Lender. 
Lender shall not be subject to any limitation whatsoever in the exercise
of any rights or remedies available to it under any of the Loan Documents or
any other agreements or instruments which govern the Loan by virtue of the
ownership by it or any parent, subsidiary or Affiliate of Lender of any equity
interest any of them may acquire in Borrower, and Borrower hereby irrevocably
waives the right to raise any defense or take any action on the basis of the
foregoing with respect to Lender’s exercise of any such rights or
remedies.  Borrower acknowledges that
Lender engages in the business of real estate financings and other real estate
transactions and investments which may be viewed as adverse to or competitive
with the business of Borrower or its Affiliates.

Section 10.22.        Brokers and Financial Advisors.

(a)           Borrower hereby
represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions
contemplated by this Agreement.  Borrower
hereby agrees to indemnify, defend and hold Lender harmless from and against
any and all claims, liabilities, costs and expenses of any kind (including
reasonable attorneys’ fees and expenses) in any way relating to or arising from
a claim by any Person that such Person acted on behalf of Borrower or its
Affiliates in connection with the transactions contemplated herein.  The provisions of this Section 10.22
shall survive the expiration and termination of this Agreement and the payment
of the Debt.

(b)           Lender hereby
represents that it has dealt with no financial advisors, brokers, underwriters,
placement agents, agents or finders in connection with the transactions
contemplated by this Agreement.  Lender
hereby agrees to indemnify, defend and hold Lender harmless from and against
any and all claims, liabilities, costs and expenses of any kind (including
reasonable attorneys’ fees and expenses) in any way relating to or arising from
a claim by any Person that such Person acted on behalf of Lender in connection
with the transactions contemplated herein. 
The provisions of this Section 10.22 shall survive the
expiration and termination of this Agreement and the payment of the Debt.

 190
 

Section 10.23.        Prior Agreements. 
This Agreement and the other Loan Documents contain the entire agreement
of the parties hereto and thereto in respect of the transactions contemplated
hereby and thereby, and all prior agreements among or between such parties,
whether oral or written, are superseded by the terms of this Agreement and the
other Loan Documents.

Section 10.24.        Certain Additional Rights of Lender (VCOC).  Notwithstanding anything to the contrary
contained in this Agreement, Lender shall have: (a) the right to routinely
consult with and advise Borrower’s management regarding the significant
business activities and business and financial developments of Borrower
(provided that such consultations shall not include discussions of
environmental compliance programs or disposal of hazardous substances), which
consultation meetings should occur on a regular basis (no less frequently than
quarterly) with Lender having the right to call special meetings at any
reasonable times and upon reasonable advance notice; (b) the right, in
accordance with the terms of this Agreement, to examine the books and records
of Borrower at any reasonable times upon reasonable notice; (c) the right,
in accordance with the terms of this Agreement, including, without limitation, Section 5.1.11,
to receive monthly, quarterly and year end financial reports, including balance
sheets, statements of income, shareholder’s equity and cash flow, a management
report and schedules of outstanding indebtedness; and (d) the right, without
restricting any other rights of Lender under this Agreement (including any
similar right), to approve any acquisition by Borrower of any other significant
property (other than personal property required for the day to day operation of
the Property).  The rights described
above in this Section 10.24 may be exercised by any entity which owns
and Controls, directly or indirectly, substantially all of the interests in
Lender.

Section 10.25.        Future Funding and Assignment.  Borrower hereby acknowledges that Lender
intends to transfer the Note and the other Loan Documents to one or more
special purpose entities in one or more transactions (collectively, with their
respective successors, assigns and beneficiaries, the “Trust”) in
connection with the issuance of securities. 
In connection with such transfer, it is intended that a participation
agreement will be executed and delivered pursuant to which (i) senior
participation interests will be created representing a portion of the principal
amount of the Note previously advanced, and (ii) junior participation interests
(the “Junior Participations”) representing both funded portions of the
Note and all future funding obligations under the Note.  The Junior Participations will transferred to
third parties (in such capacity, the “Junior Holders”). The
documentation associated with the Note obligates Lender to make future advances
of funds to Borrower with respect to the Property (such obligation, the “Future
Funding Obligations”).  Lender will
not transfer the Future Funding Obligations to the Trust, but instead to the
Junior Holders.  By its execution and
delivery of this Agreement and its acceptance of the Loan on the date hereof in
accordance with the terms hereof, Borrower hereby acknowledges, confirms and
agrees that; (i) the Note will be transferred to the Trust; (ii) Junior
Participations will be transferred to the Junior Holders; (iii) from and after
the date of transfer to the Junior Holders, the Future Funding Obligations will
be solely the obligation of the applicable Junior Holders, on the same terms
and conditions specified in the Note and the related Loan Documents; and (iv)
Borrower will not have any right of offset or other claim against any Trust (or
its assigns or beneficiaries) as holder of the Note or any interest therein in
connection with the Future Funding Obligations or against any Junior Holder,
other than with respect to the Future Funding Obligations associated with its
Junior Participation.

 191
 

Section 10.26.        Counterparts.  This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original and all of
which counterparts together shall constitute one agreement with the same effect
as if the parties had signed the same signature page.

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

 192

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed by their duly authorized representatives,
all as of the day and year first above written.

	
  

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OPBIZ:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FEE OWNER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PH FEE OWNER LLC, a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
  

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COLUMN FINANCIAL, INC.,

  
	
   

  	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit
10.32

Assessor’s Parcel No.:
162-21-210-003;

162-21-210-004;

162-21-210-005

PREPARED BY AND UPON

RECORDATION RETURN TO:

Fried, Frank, Harris, Shriver & Jacobson LLP

One New York Plaza

New York, New York 10004

MAIL TAX STATEMENTS TO:

PH Fee 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

PH FEE OWNER LLC

and

OPBIZ,
L.L.C.

collectively, 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.

  	
   

  	
  Payment of Debt

  	
   

  	
   

  
	
  Section 3.2.

  	
   

  	
  Incorporation by Reference

  	
   

  	
   

  
	
  Section 3.3.

  	
   

  	
  Insurance

  	
   

  	
   

  
	
  Section 3.4.

  	
   

  	
  Maintenance of Property

  	
   

  	
   

  
	
  Section 3.5.

  	
   

  	
  Waste

  	
   

  	
   

  
	
  Section 3.6.

  	
   

  	
  Payment for Labor and Materials

  	
   

  	
   

  
	
  Section 3.7.

  	
   

  	
  Performance of Other Agreements

  	
   

  	
   

  
	
  Section 3.8.

  	
   

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

  	
   

  	
   

  
	
  Section 3.9.

  	
   

  	
  Title

  	
   

  	
   

  
	
  Section 3.10.

  	
   

  	
  No Consents or Other Filings

  	
   

  	
   

  
	
  Section 3.11.

  	
   

  	
  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.

  	
   

  	
  Reliance

  	
   

  	
   

  
	
  Section 4.5.

  	
   

  	
  Liens Absolute

  	
   

  	
   

  
	
  Section 4.6.

  	
   

  	
  Continuing Liability of Trustor

  	
   

  	
   

  

 

ARTICLE V.                     FURTHER ASSURANCES

 

	
  Section 5.1.

  	
   

  	
  Recording of Security Instrument, etc

  	
   

  	
   

  

 

 i
 

 

	
  Section 5.2.

  	
   

  	
  Further Acts, etc

  	
   

  	
   

  
	
  Section 5.3.

  	
   

  	
  Changes in Tax, Debt, Credit and Documentary Stamp
  Laws

  	
   

  	
   

  
	
  Section 5.4.

  	
   

  	
  Severing of Mortgage

  	
   

  	
   

  
	
  Section 5.5.

  	
   

  	
  Replacement Documents

  	
   

  	
   

  

 

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.

  	
   

  	
  Recovery of Sums Required To Be Paid

  	
   

  	
   

  
	
  Section 7.7.

  	
   

  	
  Other Rights, Etc

  	
   

  	
   

  
	
  Section 7.8.

  	
   

  	
  Right to Release Any Portion of the Property

  	
   

  	
   

  
	
  Section 7.9.

  	
   

  	
  Violation of Laws

  	
   

  	
   

  
	
  Section 7.10.

  	
   

  	
  Recourse and Choice of Remedies

  	
   

  	
   

  
	
  Section 7.11.

  	
   

  	
  Right of Entry

  	
   

  	
   

  
	
  Section 7.12.

  	
   

  	
  General Authority

  	
   

  	
   

  
	
  Section 7.13.

  	
   

  	
  Nevada Foreclosure

  	
   

  	
   

  
	
  Section 7.14.

  	
   

  	
  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

 ii
 

 

	
  Section 12.1.

  	
   

  	
  Governing Law

  	
   

  	
   

  
	
  Section 12.2.

  	
   

  	
  Usury Laws

  	
   

  	
   

  
	
  Section 12.3.

  	
   

  	
  Provisions Subject to Applicable Law

  	
   

  	
   

  

 

ARTICLE XIII.                 DEFINITIONS

 

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 PH FEE OWNER LLC, a
Delaware limited liability company, and OPBIZ, L.L.C., a Nevada limited
liability company, each having its principal place of business c/o OPBIZ,
L.L.C., 3667 Las Vegas Blvd. South, Las Vegas, Nevada 89109, collectively as
trustor (collectively, “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 Trustor, as
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 Trustor in favor of Beneficiary (as the same may
be amended, restated, replaced, supplemented or otherwise modified from time to
time, the “Note”);

WHEREAS, Trustor desires to secure the payment of the
Debt and the performance of all of its 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 Trustor of its
obligations thereunder and under the other Loan Documents are secured hereby,
and each and every term and provision of the Loan Agreement, the Note, and that
certain Assignment of Leases and Rents of even date herewith made by Trustor in
favor of Beneficiary delivered in connection with this Security Instrument (as
the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time, the “Assignment of Leases”), including the rights,
remedies, obligations, covenants, conditions, agreements, indemnities,
representations and warranties of the parties therein, are hereby incorporated
by reference herein as though set forth in full and shall be considered a part
of this Security Instrument (the Loan Agreement, the Note, this Security
Instrument, the Assignment of Leases and Rents and all other documents evidencing
or securing the Debt or executed or delivered in connection therewith, are
referred to collectively as the “Loan Documents”).

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, Trustor’s

 1
 

performance of Trustor’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

 2
 

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
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, Gaming Equipment, 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), including, without limitation, (i) that
certain Lease Agreement dated as of the date hereof, between Fee Owner, as
lessor, and OpBiz, as lessee for the Hotel Component (as defined in the Loan
Agreement) and (ii) that certain Lease Agreement, dated as of the date hereof,
between Fee Owner, as lessor, and OpBiz, as lessee for the Casino Component (as
defined in the Loan Agreement) (collectively, the “Leases”), whether

 3
 

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;

(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, 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;

(p)           Accounts.  All reserves, escrows, deposit accounts and
securities accounts established or maintained with respect to the Property,
including, without limitation, the Lockbox Account, the Cash Management Account
(and all sub-accounts thereof) and the Reserve Funds and all other accounts
established or maintained pursuant to the Loan Agreement

 4
 

(collectively, “Accounts”); together with all
deposits or wire transfers made or credited to such accounts and all cash,
checks, drafts, certificates, securities, securities entitlements, investment
property, financial assets, instruments and other property held therein or
credited thereto from time to time and all proceeds, products, distributions or
dividends or substitutions thereon and thereof;

(q)           Interest
Rate Cap Agreement.  The Interest
Rate Cap Agreement, including, but not limited to, all “accounts”, “chattel
paper”, “general intangibles” and “investment property” (as such terms are
defined in the Uniform Commercial Code) constituting or relating to the
foregoing; and all products and proceeds of any of the foregoing; and

(r)            Other
Rights.  Any and all other rights of
Trustor in and to the items set forth in paragraphs (a) through (q) 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 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, the Accounts
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, the
Accounts 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

 5
 

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 that 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 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, whether or not allowed or
allowable as a claim under any bankruptcy or insolvency proceeding).

 6
 

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 Trustor contained in the Loan Agreement and
any other Loan Document; and

(c)           the
performance of each obligation of Trustor 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.  Trustor’s obligations for the payment of the
Debt and 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, 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:

Section 3.1.            Payment of Debt.  Trustor will pay the Debt at the time and in
the manner provided in the Loan Agreement, the Note and this Security
Instrument.

Section 3.2.            Incorporation by Reference.  All the covenants, conditions and agreements
contained in (a) the Loan Agreement, (b) the Note and (c) all and any of the
other Loan Documents, are hereby made a part of this Security Instrument to the
same extent and with the same force as if fully set forth herein.

Section 3.3.            Insurance.  Trustor shall obtain and maintain, or cause
to be maintained, in full force and effect at all times insurance with respect
to Trustor and the Property as required pursuant to the Loan Agreement.

Section 3.4.            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,

 7
 

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 3.5.            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 3.6.            Payment for Labor and Materials.  (a) 
Subject to the provisions of Section 5.2.2 of the Loan Agreement and Section
3.6(b) below, Trustor will promptly pay when due all bills and costs for
labor, materials, and specifically fabricated materials (“Labor and Material
Costs”) incurred 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 no-responsibility and take (and cause to be taken)
such further measures as are required under NRS§§ 108.234, 2403 and 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.

Section 3.7.            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 the Loan Agreement, any other Loan Document and any other agreement
or recorded instrument affecting or pertaining to the Property and any
amendments, modifications or changes thereto.

 8
 

Section 3.8.            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 3.9.            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 or Trustor’s ability to repay the Loan.  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, together with any Uniform Commercial Code financing statements
required to be filed in connection therewith and the Account Control Agreement,
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 the Loan Documents 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 3.10.          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, 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

 9
 

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 (c) filing of a UCC-1 Financing Statement
with the office of the Secretary of State of the State of Delaware and (d) the
filing of a UCC-1 Financing Statement with the office of the Secretary of State
of Nevada.  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 3.11.          Examination of Books and Records.  At reasonable times and upon reasonable
notice, Beneficiary, its agents, accountants and attorneys shall have the right
to examine the records, books, management and other papers of Trustor which
reflect upon Trustor’s financial condition, at the Property or at any office
regularly maintained by Trustor where the books and records are located.  Beneficiary and its agents shall have the
right to make copies and extracts from the foregoing records and other
papers.  In addition, at reasonable times
and upon reasonable notice, Beneficiary, its agents, accountants and attorneys
shall have the right to examine and audit the books and records of Trustor
pertaining to the income, expenses and operation of the Property during
reasonable business hours at any office of Trustor where the books and records
are located.  This Section 3.11
shall apply throughout the term of the Note and without regard to whether an
Event of Default has occurred or is continuing.

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, the Loan
Agreement,

 10
 

the Note or the other Loan Documents,
including, without limitation, any Officer’s Certificate, balance sheet,
statement of profit and loss or other financial statement, survey, appraisal,
or Policy, 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.            Reliance.  Trustor recognizes and acknowledges that in
accepting the Loan Agreement, the Note, this Security Instrument and the other
Loan Documents, Beneficiary is expressly and primarily relying on the truth and
accuracy of the warranties and representations set forth in Section 4.1 of the
Loan Agreement without any obligation to investigate the Property and
notwithstanding any investigation of the Property by Beneficiary; that such
reliance existed on the part of Beneficiary prior to the date hereof, that the
warranties and representations are a material inducement to Beneficiary in
making the Loan; and that Beneficiary would not be willing to make the Loan and
accept this Security Instrument in the absence of the warranties and
representations as set forth in Section 4.1 of the Loan Agreement.

Section 4.5.            Liens Absolute.  All rights of Beneficiary, all Liens and
security interests hereunder and all obligations of Trustor hereunder are
unconditional and absolute 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, 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, 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;

 11

(f)            any
invalidity or unenforceability relating to or against Trustor, 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, any
Guarantor or any other Person, of any Obligation;

(g)           any
failure by Beneficiary: (i) to file or enforce a claim against Trustor, 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 of any new or additional indebtedness or obligation under or with
respect to the Obligations; (iii) to commence any action against Trustor, any
Guarantor or any other Person; (iv) to disclose to Trustor, 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;

(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, 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 4.6.            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 

 12
 

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 the Note, this Security Instrument, the other Loan Documents, any
note, 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, 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 

 13
 

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 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.

Section 5.5.            Replacement Documents.  Upon receipt of an affidavit of an officer of
Beneficiary as to the loss, theft, destruction or mutilation of the Note or any
other Loan Document which is not of public record, and, in the case of any such
mutilation, upon surrender and cancellation of such Note or other Loan
Document, Trustor will issue, in lieu thereof, a replacement Note or other Loan
Document, dated the date of such lost, stolen, destroyed or mutilated Note or
other Loan Document in the same principal amount thereof and otherwise of like
tenor.

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 

 14
 

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)           declare
the entire unpaid Debt to be immediately due and payable;

(b)           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 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;

(c)           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;

(d)           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;

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

 15
 

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

(g)           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, any guarantor,
indemnitor with respect to the Loan or of any Person liable for the payment of
the Debt;

(h)           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 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;

(i)            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;

(j)            apply any sums then
deposited or held in the Accounts, escrow or otherwise by or on behalf of
Beneficiary in accordance with the terms of the Loan Agreement, this Security
Instrument or any other Loan Document to the payment of the following items in
any order in its sole discretion: (i) Taxes and Other Charges; (ii) Insurance
Premiums; (iii) Interest on the unpaid principal balance of the Note; (iv)
amortization of the unpaid principal 

 16
 

balance of the Note; or (v) all other sums payable
pursuant to the Note, the Loan Agreement, this Security Instrument and the
other Loan Documents, including, without limitation, advances made by
Beneficiary pursuant to the terms of this Security Instrument;

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

(l)            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

(m)          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 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 

 17
 

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.

(n)           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 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.

 18
 

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 the
Note, this Security Instrument or the other Loan Documents, 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.            Recovery of Sums Required To Be
Paid.  To the extent permitted by
applicable law, upon the occurrence of an Event of Default, Beneficiary shall
have the right from time to time to take action to recover any sum or sums
which constitute a part of the Debt as the same become due, without regard to
whether or not the balance of the Debt shall be due, and without prejudice to
the right of Beneficiary thereafter to bring an action of foreclosure, or any
other action, for a default or defaults by Trustor existing at the time such
earlier action was commenced.

Section 7.7.            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 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 extending the time of payment or otherwise modifying
or supplementing the terms of the Note, this Security Instrument or the other
Loan Documents.

 19
 

(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 7.8.            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 7.9.            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 7.10.          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 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, 

 20
 

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 7.11.          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 7.12.          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

(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.

 

 21

Section 7.13.          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 7.14.          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.  Trustor hereby covenants
that it will cooperate with Beneficiary and Trustee in their efforts to obtain
any license, approval or finding that is required under any Gaming Laws or by any
Gaming Authority in connection with the exercise by Beneficiary or Trustee of
any remedy set forth herein or in any of the Loan Documents.

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 more of the following: (a) ownership of this Security
Instrument, the Property or any interest

 22
 

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, the Loan Agreement, the Note or any of the other Loan
Documents, 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, the Note, the
Loan Agreement or any of the other Loan Documents; (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 or any other Loan
Document.  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

 23
 

Parties and directly or indirectly arising out of or in any way
relating to any tax on the making 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.

 24
 

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 or other written communications under this
Security Instrument shall be delivered in accordance with Section 10.6
of the Loan Agreement.

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

 25
 

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 Trustor 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
Trustor to Beneficiary, or if there is no such indebtedness, shall immediately
be returned to Trustor.

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.

 26
 

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 the Loan Agreement, the Note or this Security Instrument is held
to be invalid, illegal or unenforceable in any respect, the Loan Agreement, the
Note and this Security Instrument shall be construed without such provision.

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 limitng, bin any
way, the scope or intent of the provisions hereof.

Section 14.5.          Number
and Gnder .  _henever the context may
require, any pronouns used herein shall include the corresponding masc}line,
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 bif 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.  The Note, the Loan
Agreement, this Security Instrument and the other Loan Documents 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.”

 27
 

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 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 Trustor 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

 28
 

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 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

 29
 

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 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.

 30
 

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.  Beneficiary and Trustee acknowledge,
understand and agree that, to the extent the prior approval of the Nevada
Gaming Authorities is required pursuant to applicable law for the exercise,
operation and effectiveness of any remedy hereunder, or the taking of any
action that may be taken by Beneficiary or Trustee hereunder, including without
limitation the taking of possession and disposition of collateral consisting of
gaming devices, cashless wagering systems and mobile gaming systems (as those
terms are defined in Nevada Revised Statutes Chapter 463), such remedy or
action shall be subject to such prior approval of the Nevada Gaming Authorities
and the Beneficiary or Trustee may be subject to being called forward for
licensing or a finding of suitability.

Section 15.5.          Security
Agreement.  THIS SECURITY INSTRUMENT
CONSTITUTES A SECURITY AGREEMENT AS THAT TERM IS DEFINED IN THE NEVADA UNIFORM
COMMERCIAL CODE, PORTIONS 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 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 Trustor 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.

 31
 

[REMAINDER OF PAGE
INTENTIONALLY BLANK]

 32

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

 

	
  TRUSTOR:

  	
  PH FEE OWNER LLC, a Delaware limited liability
  company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE:

  	
  FIRST AMERICAN TITLE INSURANCE

  COMPANY, a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BENEFICIARY:

  	
  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:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

	
  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

Real property in the City of Las Vegas, County of Clark,
State of Nevada,
described as follows:

 

PARCEL ONE (1):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NE AS SHOWN IN FILE 111, PAGE 85 OF SURVEYS ON FILE AT THE CLARK COUNTY,
NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NE

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION:
AS RECORDED IN BOOK 96, PAGE 33 OF PLATS ON FILE AT THE CLARK COUNTY, NEVADA
RECORDER’S OFFICE AND LYING WITHIN THE NORTHWEST QUARTER (NW 1⁄4) 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, THENCE
NORTH 01°28’29” WEST, ALONG THE WEST LINE OF THE NORTHWEST QUARTER (NW 1⁄4) OF
SAID SECTION 21, A DISTANCE OF 1175.72 FEET TO A POINT ON THE WESTERLY
PROLONGATION OF THE NORTH LINE OF SAID LOT 1, THENCE ALONG SAID WESTERLY
PROLONGATION, NORTH 89°23’20” EAST, 107.55 FEET TO A POINT ON THE EASTERLY
RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE CONTINUING ALONG THE NORTH
LINE OF SAID LOT 1, NORTH 89°23’20” EAST, 1203.33 FEET TO THE POINT OF
BEGINNING; THENCE CONTINUING NORTH 89°23’20” EAST, 252.84 FEET TO THE WESTERLY
RIGHT-OF-WAY OF AUDRIE LANE; THENCE ALONG SAID WESTERLY RIGHT-OF-WAY, SOUTH
00°36’40” EAST, 141.47 FEET; THENCE DEPARTING SAID WESTERLY RIGHT-OF-WAY, SOUTH
89°23’20” WEST, 252.84 FEET; THENCE NORTH 00°36’40” WEST, 141.47 FEET TO THE
POINT OF BEGINNING.

PARCEL TWO (2):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL ND AS SHOWN IN FILE 111, PAGE 86 OF SURVEYS ON FILE AT THE CLARK COUNTY,
NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL ND

 A-2
 

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS RECORDED IN BOOK 96 PAGE 33 OF PLATS ON FILE AT THE CLARK COUNTY, NEVADA
RECORDER’S OFFICE AND LYING WITHIN THE NORTHWEST QUARTER (NW 1⁄4) 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, THENCE
NORTH 01°28’29” WEST, ALONG THE WEST LINE OF THE NORTHWEST QUARTER (NW 1⁄4) OF
SAID SECTION 21, A DISTANCE OF 1175.72 FEET TO A POINT ON THE WESTERLY
PROLONGATION OF THE NORTH LINE OF SAID LOT 1; THENCE ALONG SAID WESTERLY
PROLONGATION, NORTH 89°23’20” EAST, 107.55 FEET TO A POINT ON THE EASTERLY
RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH, THENCE CONTINUING ALONG THE NORTH
LINE OF SAID LOT 1, NORTH 89°23’20” EAST, 995.09 FEET TO THE POINT OF
BEGINNING; THENCE CONTINUING NORTH 89°23’20” EAST, 208.25. FEET; THENCE SOUTH
00°36’40” EAST 130.25 FEET; THENCE SOUTH 89°27’06” WEST, 206.64 FEET; THENCE
NORTH 00°24’51” WEST, 74.89 FEET; THENCE SOUTH 89°26’04” WEST 1.87 FEET; THENCE
NORTH 00°36’40” WEST, 55.14 FEET TO THE POINT OF BEGINNING.

PARCEL THREE (3):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NA18 AS SHOWN IN FILE 111, PAGE 96 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION:

PARCEL NA18:

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS RECORDED IN BOOK 96, PAGE 33 OF PLATS ON FILE AT THE CLARK COUNTY, NEVADA
RECORDER’S OFFICE AND LYING WITHIN THE NORTHWEST QUARTER (NW 1/4) 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 A
POINT ON THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST, 315.36
FEET ALONG THE SOUTH LINE OF SAID NORTHWEST QUARTER (NW 1/4) AND THE CENTERLINE
OF SAID HARMON AVENUE; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE,
NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON
AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27”
WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 392.23 FEET; THENCE NORTH 00°28’50”
WEST, 177.37 FEET TO THE POINT OF BEGINNING; THENCE NORTH 00°58’05” WEST, 13.50
FEET; THENCE NORTH 89°26’34” EAST, 13.10 FEET; THENCE SOUTH 00°19’14” WEST,
2.01 FEET; THENCE NORTH 88°58’21” EAST, 2.57 FEET; THENCE SOUTH 00°44’18” EAST,
10.88 FEET; THENCE SOUTH 87°09’13” WEST, 15.58 FEET TO THE POINT OF BEGINNING.

 A-3
 

PARCEL NA18 HAS A LOWER
PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL FOUR (4):

EXPLANATION

THIS LEGAL DESCRIBES
PARCEL NA17 AS SHOWN IN FILE 111, PAGE 97 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION:

PARCEL NA17

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS RECORDED IN BOOK 96, PAGE 33 OF PLATS ON FILE AT THE CLARK COUNTY, NEVADA
RECORDER’S OFFICE AND LYING WITHIN THE NORTHWEST QUARTER (NW 1/4) 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 A POINT ON
THE CENTERLINE OF HARMON AVENUE; THENCE ALONG THE SOUTH LINE OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE,
NORTH 89°31’10” EAST, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET
CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF
SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET;
THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00
FEET TO THE EAST RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID
EAST RIGHT-OF-WAY, NORTH 00°36’27” WEST, 190.49 FEET; THENCE DEPARTING SAID
EAST RIGHT-OF-WAY, NORTH 89°23’33” EAST, 125.51 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 89°26’17” EAST, 28.49 FEET; THENCE SOUTH 00°22’17” EAST, 17.42
FEET; THENCE SOUTH 88°42’49” WEST, 7.89 FEET; THENCE NORTH 00°41’59” WEST,
10.28 FEET; THENCE SOUTH 88°57’02” WEST, 20.52 FEET; THENCE NORTH 00°33’51”
WEST, 7.41 FEET TO THE POINT OF BEGINNING.

PARCEL NA17 HAS A LOWER
PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL FIVE (5):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NA7 AS SHOWN IN FILE 111, PAGE 98 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION:

PARCEL NA7

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE 

 A-4
 

ALADDIN COMMERCIAL
SUBDIVISION” AS 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 (NW 1/4) 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 A
POINT ON THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE
SOUTH LINE OF THE NORTHWEST CORNER OF SAID SECTION 21 AND THE CENTERLINE OF
SAID HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET
CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF
SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET;
THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00
FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH;
THENCE ALONG SAID EASTERLY RIGHT-OF-WAY, NORTH 00°36’27” WEST, 416.51 FEET;
THENCE DEPARTING SAID EASTERLY RIGHT-OF-WAY, NORTH 89°23’33” EAST, 436.67 FEET
TO THE POINT OF BEGINNING; THENCE NORTH 45°12’47” EAST, 2.26 FEET; THENCE NORTH
24°20’07” EAST, 42.08 FEET; THENCE NORTH 65°15’05” EAST, 17.37 FEET; THENCE
NORTH 89°21’48” EAST, 43.37 FEET; THENCE NORTH 59°33’09” EAST, 33.81 FEET;
THENCE NORTH 72°29’03” EAST, 59.84 FEET; THENCE SOUTH 64°39’13” EAST, 13.45
FEET; THENCE SOUTH 55°25’35” WEST, 9.45 FEET; THENCE SOUTH 25°15’30” EAST, 8.73
FEET; THENCE SOUTH 24°28’49” WEST, 13.76 FEET; THENCE NORTH 65°40’35” WEST,
7.37 FEET; THENCE SOUTH 23°19’04” WEST, 29.88 FEET; THENCE NORTH 64°56’42”
WEST, 25.44 FEET; THENCE SOUTH 60°12’34” WEST, 4.24 FEET; THENCE SOUTH 24°17’28”
WEST, 15.74 FEET; THENCE SOUTH 64°37’10” EAST, 18.23 FEET; THENCE SOUTH 24°13’36”
WEST, 16.26 FEET; THENCE NORTH 65°46’24” WEST, 34.86 FEET; THENCE SOUTH 89°24’55”
WEST, 56.22 FEET; THENCE SOUTH 64°19’48” WEST, 36.37 FEET; THENCE NORTH 45°48’06”
WEST, 5.16 FEET TO THE POINT OF BEGINNING.

PARCEL NA7 HAS A LOWER
PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL SIX (6):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NA5 AS SHOWN IN FILE 111, PAGE 99 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION:

PARCEL NA5

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS 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 (NW 1/4)
OF SECTION 21, TOWNSHIP 21 SOUTH, RANGE 61 EAST, M.D.M., CLARK COUNTY, NEVADA,
MORE PARTICULARLY DESCRIBED AS FOLLOWS:

 A-5
 

COMMENCING AT THE
SOUTHWEST CORNER OF THE NORTHWEST QUARTER (NW 1/4) OF SAID SECTION 21 BEING A
POINT ON THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE
SOUTH LINE OF THE NORTHWEST CORNER OF SAID SECTION 21 AND THE CENTERLINE OF
SAID HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET
CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF
SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET;
THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 433.44
FEET; THENCE NORTH 00°45’37” WEST, 132.98 FEET; THENCE NORTH 89°23’33” EAST,
79.88 FEET TO THE POINT OF BEGINNING; THENCE NORTH 62°47’57” EAST, 6.33 FEET;
THENCE SOUTH 25°54’06” EAST, 7.11 FEET; THENCE SOUTH 62°47’57” WEST, 2.09 FEET;
THENCE SOUTH 00°03’19” EAST, 2.47 FEET TO A POINT HEREINAFTER REFERRED TO AS
POINT NO 1; THENCE CONTINUING SOUTH 00°03’19” EAST, 23.04 FEET; THENCE SOUTH
89°37’20” WEST, 6.88 FEET; THENCE NORTH 00°03’19” WEST, 22.98 FEET TO A POINT
HEREINAFTER REFERRED TO AS POINT NO. 2; THENCE CONTINUING NORTH 00°03’19” WEST,
7.03 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF
2144.29 FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA: BEGINNING AT THE AFOREMENTIONED POINT NO. 2; THENCE
NORTH 89°08’33’ EAST, 6.88 FEET TO THE AFOREMENTIONED POINT NO. 1; THENCE SOUTH
00°03’19” EAST, A SLOPE DISTANCE OF 18.59 FEET AT A VERTICAL ANGLE ABOVE THE
HORIZON OF 32°32’40” TO A POINT HEREINAFTER REFERRED TO AS POINT NO. 3; THENCE
SOUTH 89°08’33” WEST 6.88 FEET; THENCE NORTH 00°03’19” WEST, A SLOPE DISTANCE
OF 18.59 FEET AT A VERTICAL ANGLE BELOW THE HORIZON OF 32°32’40” TO THE POINT
OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF
2144.29 FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA:

BEGINNING AT THE
AFOREMENTIONED POINT NO. 3; THENCE SOUTH 00°03’19” EAST, 7.37 FEET; THENCE
SOUTH 89°37’20” WEST, 6.88 FEET; THENCE NORTH 00°03’19” WEST, 7.31 FEET; THENCE
NORTH 89°08’33” EAST, 6.88 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF
2144.29 FEET.

PARCEL SEVEN (7):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NA16 AS SHOWN IN FILE 111, PAGE 100 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA16

 A-6
 

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS 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 (NW 1/4)
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 A
POINT ON THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE
SOUTH LINE OF THE NORTHWEST QUARTER (NW 1/4) OF SAID SECTION 21 AND THE CENTERLINE
OF SAID HARMON AVENUE, 315.36 FEET; THENCE NORTH 00°36’27” WEST, 64.70 FEET TO
THE NORTHERLY RIGHT-OF-WAY OF HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY
RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH
89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE
SOUTH 89°31’10” WEST, 590.00 FEET TO THE EAST RIGHT-OF-WAY OF LAS VEGAS
BOULEVARD SOUTH; THENCE ALONG SAID EAST RIGHT-OF-WAY, NORTH 00°36’27” WEST,
691.42 FEET; THENCE NORTH 00°54’27” WEST, ALONG SAID EAST RIGHT-OF-WAY 114.38
FEET; THENCE DEPARTING SAID EAST RIGHT-OF-WAY, NORTH 89°23’20” EAST, 372.54
FEET; THENCE SOUTH 00°36’40” EAST, 55.06 FEET TO THE POINT OF BEGINNING; THENCE
SOUTH 00°46’32” EAST, 8.53 FEET; THENCE SOUTH 89°25’26” WEST, 25.25 FEET;
THENCE SOUTH 00°38’15” EAST, 26.32 FEET TO A POINT HEREINAFTER REFERRED TO AS
POINT NO. 1; THENCE SOUTH 00°36’55” EAST, 15.65 FEET; THENCE SOUTH 89°21’31”
WEST, 11.73 FEET; THENCE NORTH 00°38’29” WEST, 2.45 FEET; THENCE SOUTH 89°23’05”
WEST, 91.95 FEET; THENCE SOUTH 00°38’29” EAST, 2.51 FEET; THENCE SOUTH 89°21’31”
WEST, 10.51 FEET; THENCE NORTH 00°36’55” WEST, 15.67 FEET TO A POINT
HEREINAFTER REFERRED TO AS POINT NO. 2; THENCE NORTH 00°36’55” WEST, 48.54
FEET; THENCE NORTH 89°16’02” EAST, 13.84 FEET; THENCE SOUTH 00°46’36” EAST,
13.48 FEET; THENCE SOUTH 89°28’45” WEST, 2.88 FEET; THENCE SOUTH 00°38’29”
EAST, 25.56 FEET; THENCE NORTH 89°21’31” EAST, 91.45 FEET; THENCE NORTH 00°38’29”
WEST, 25.37 FEET; THENCE NORTH 89°28’45” EAST, 36.96 FEET TO THE POINT OF
BEGINNING.

PARCEL NA16 HAS A LOWER
PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA:

BEGINNING AT THE
AFOREMENTIONED POINT NO. 1; THENCE SOUTH 00°36’55” EAST, A SLOPE DISTANCE OF
18.57 FEET AT A VERTICAL ANGLE ABOVE THE HORIZON OF 32°32’40”; THENCE SOUTH
89°21’31” WEST, 11.73 FEET; THENCE NORTH 00°38’29” WEST, A SLOPE DISTANCE OF
18.57 FEET AT A VERTICAL ANGLE BELOW THE HORIZON OF 32°32’40”; THENCE NORTH
89°23’05” EAST, 11.73 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF
2144.29 FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA:

BEGINNING AT THE
AFOREMENTIONED POINT NO. 2; THENCE NORTH 89°21’31” EAST, 10.51 FEET; THENCE
SOUTH 00°38’29” EAST, A SLOPE DISTANCE OF 18.57 FEET 

 A-7
 

AT A VERTICAL ANGLE ABOVE
THE HORIZON OF 32°32’40”; THENCE SOUTH 89°21’31” WEST, 10.51 FEET; THENCE NORTH
00°36’55” WEST, A SLOPE DISTANCE OF 18.57 FEET AT A VERTICAL ANGLE BELOW THE
HORIZON OF 32°32’40” TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF
2144.29 FEET.

PARCEL EIGHT (8):

EXPLANATION:

THIS LEGAL DESCRIBES
PARCEL NA6 AS SHOWN IN FILE 112, PAGE 01 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA6

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS 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 (NW 1/4)
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 A POINT ON
THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH
LINE OF THE NORTHWEST CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID
HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET
CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF
SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET;
THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 136.35
FEET; THENCE NORTH 00°36’12” WEST, 60.97 FEET; THENCE NORTH 64°18’14” EAST,
7.27 FEET; THENCE NORTH 00°28’50” WEST, 156.32 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 25°41’08” WEST, 60.80 FEET; THENCE NORTH 64°40’35” EAST, 16.80
FEET; THENCE NORTH 00°36’39” WEST, 48.88 FEET; THENCE SOUTH 64°25’33” EAST,
5.15 FEET; THENCE SOUTH 80°16’36” EAST, 91.67 FEET; THENCE SOUTH 64°54’45”
EAST, 3.97 FEET; THENCE SOUTH 02°40’26” WEST, 23.31 FEET; THENCE SOUTH 03°36’30”
EAST, 27.47 FEET; THENCE SOUTH 10°37’10” EAST, 27.53 FEET; THENCE SOUTH 13°40’17”
EAST, 8.67 FEET; THENCE SOUTH 84°56’14” WEST, 26.94 FEET; THENCE NORTH 00°52’53”
WEST, 61.11 FEET; THENCE SOUTH 89°14’29” WEST, 42.05 FEET; THENCE SOUTH 00°32’12”
EAST, 51.30 FEET; THENCE SOUTH 64°21’04” WEST, 28.09 FEET TO THE POINT OF
BEGINNING.

PARCEL NA6 HAS A LOWER
PLANE ELEVATION OF 2134.29 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL NINE (9):

EXPLANATION:

 A-8
 

THIS LEGAL DESCRIBES
PARCEL NA15 AS SHOWN IN FILE 112, PAGE 02 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA15

A PORTION OF LOT 1 AS
SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION”
AS 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 (NW 1/4)
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 A
POINT ON THE CENTERLINE OF HARMON AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE
SOUTH LINE OF THE NORTHWEST CORNER (NW1/4) OF SAID SECTION 21 AND THE
CENTERLINE OF SAID HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE
AND SAID STREET CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY
RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY
AND CONTINUING NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST,
365.00 FEET; THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10”
WEST, 590.00 FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS
BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY RIGHT-OF-WAY, NORTH 00°36’27” WEST,
691.42 FEET; THENCE NORTH 00°54’27” WEST, 114.38 FEET; THENCE DEPARTING SAID
EASTERLY RIGHT-OF-WAY, NORTH 89°23’20” EAST, 447.36 FEET; THENCE SOUTH 00°36’40”
EAST, 55.03 FEET TO THE POINT OF BEGINNING; THENCE NORTH 89°26’12” EAST, 38.01
FEET; THENCE SOUTH 00°46’32” EAST, 8.60 FEET; THENCE SOUTH 89°05’01” WEST,
27.96 FEET; THENCE SOUTH 00°14’52” EAST, 39.33 FEET; THENCE SOUTH 87°01’19”
WEST, 3.51 FEET; THENCE SOUTH 24°23’31” WEST, 35.22 FEET; THENCE SOUTH 65°26’29”
EAST, 9.23 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT NO. 1; THENCE
CONTINUING SOUTH 65°26’29” EAST, 16.30 FEET; THENCE SOUTH 24°23’35” WEST, 9.37
FEET; THENCE NORTH 65°36’25” WEST, 21.81 FEET; THENCE NORTH 24°23’35” EAST,
3.89 FEET; THENCE NORTH 65°25’32” WEST, 9.78 FEET; THENCE NORTH 24°22’24” EAST,
38.73 FEET; THENCE NORTH 00°33’30” WEST, 47.51 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.06 FEET AND AN UPPER ELEVATION OF 2144.29
FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA:

BEGINNING AT THE
AFOREMENTIONED POINT NO. 1; THENCE SOUTH 65°26’29” EAST, A SLOPE DISTANCE OF
13.26 FEET AT A VERTICAL ANGLE ABOVE THE HORIZON OF 33°57’56” TO A POINT
HEREINAFTER REFERRED TO AS POINT NO. 2; THENCE SOUTH 24°23’35” WEST, 5.53 FEET;
THENCE NORTH 65°29’41” WEST, A SLOPE DISTANCE OF 13.26 FEET AT A VERTICAL ANGLE
BELOW THE HORIZON OF 33°57’56”; THENCE NORTH 24°23’35” EAST, 5.54 FEET TO THE
POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE OF ELEVATION OF 2134.06 FEET AND AN UPPER PLANE ELEVATION OF
2141.47 FEET.

EXCEPTING THEREFROM THE
FOLLOWING DESCRIBED AREA:

BEGINNING AT THE
AFOREMENTIONED POINT NO. 2; THENCE SOUTH 65°26’29” EAST, 5.30 FEET; THENCE
SOUTH 24°23’35” WEST, 9.37 FEET; THENCE NORTH 65°36’25” WEST, 5.30 FEET TO A
POINT HEREINAFTER REFERRED TO AS POINT NO. 3; THENCE NORTH 24°23’35” EAST, 9.37
FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA
HAS A LOWER PLANE ELEVATION OF 2134.06 FEET AND AN UPPER PLANE ELEVATION OF 2141.47
FEET.

 A-9

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 3; THENCE
NORTH 65°36’25” WEST, A SLOPE DISTANCE OF 4.69 FEET AT A VERTICAL ANGLE ABOVE
THE HORIZON OF 36°32’38” TO A POINT HEREINAFTER REFERRED TO AS POINT NO. 4; THENCE
NORTH 24°23’35” EAST, 3.86 FEET; THENCE SOUTH 65°29’41” EAST, A SLOPE DISTANCE
OF 4.69 FEET AT A VERTICAL ANGLE BELOW THE HORIZON OF 36°32’38”; THENCE SOUTH
24°23’35” WEST, 3.86 FEET TO THE POINT OF BEGINNING

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2134.06 FEET AND AN UPPER ELEVATION OF 2144.29 FEET.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 4; THENCE
NORTH 65°36’25” WEST, 12.76 FEET; THENCE NORTH 24°23’35” EAST, 3.89 FEET;
THENCE SOUTH 65°29’41” EAST, 12.76 FEET; THENCE SOUTH 24°23’35” WEST, 3.86 FEET
TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2134.06 FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL TEN (10):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL PAT AS SHOWN IN FILE 112,
PAGE 04 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL PAT

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS RECORDED IN BOOK 96, PAGE 33
OF PLATS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE AND LYING WITHIN
THE NORTHWEST QUARTER (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE

 A-10
 

NORTHWEST CORNER (NW 1⁄4) SAID SECTION 21 AND THE
CENTERLINE OF SAID HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE
AND STREET CENTERLINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY
RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY
RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH
89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE
NORTH 80°44’46” EAST, 187.61 FEET TO THE POINT OF BEGINNING; THENCE NORTH 02°04’49”
WEST, 38.87 FEET; THENCE SOUTH 89°36’50” WEST, 16.34 FEET; THENCE NORTH 83°50’21”
WEST, 35.70 FEET; THENCE NORTH 75°34’09” WEST, 27.60 FEET; THENCE NORTH 69°25’08”
WEST, 18.35 FEET; THENCE NORTH 62°34’11” WEST, 33.98 FEET; THENCE NORTH 54°17’49”
WEST, 29.97 FEET; THENCE NORTH 46°59’34” WEST, 22.74 FEET; THENCE NORTH 40°08’28”
WEST, 32.00 FEET; THENCE NORTH 33°03’43” WEST, 3.07 FEET; THENCE SOUTH 61°18’57”
WEST, 0.73 FEET; THENCE NORTH 28°46’21” WEST, 38.64 FEET; THENCE NORTH 61°19’02”
EAST, 0.28 FEET; THENCE NORTH 24°57’05” WEST, 12.99 FEET; THENCE NORTH 12°44’50”
WEST, 18.14 FEET; THENCE SOUTH 84°42’26” WEST, 3.21 FEET; THENCE NORTH 13°40’17”
WEST, 8.67 FEET; THENCE NORTH 10°37’10” WEST, 27.53 FEET; THENCE NORTH 03°36’30”
WEST, 27.47 FEET; THENCE NORTH 02°40’26” EAST, 23.31 FEET; THENCE NORTH 64°54’45”
WEST, 3.97 FEET; THENCE NORTH 24°28’49” EAST, 33.82 FEET; THENCE NORTH 65°31’11”
WEST, 4.25 FEET; THENCE NORTH 00°39’39” WEST, 60.07 FEET; THENCE NORTH 89°01’26”
EAST, 19.25 FEET; THENCE SOUTH 65°34’40” EAST, 12.39 FEET; THENCE NORTH 24°25’20”
EAST, 43.25 FEET; THENCE NORTH 66°35’56” WEST, 4.97 FEET; THENCE NORTH 24°06’10”
EAST, 21.38 FEET; THENCE SOUTH 65°48’52” EAST, 7.53 FEET; THENCE NORTH 24°00’35”
EAST, 11.67 FEET; THENCE NORTH 65°10’06” WEST, 7.52 FEET; THENCE NORTH 25°15’30”
WEST, 17.50 FEET; THENCE NORTH 55°25’35” EAST, 30.03 FEET; THENCE NORTH 61°17’00”
EAST, 32.67 FEET; THENCE NORTH 68°21’59” EAST, 31.51 FEET; THENCE NORTH 75°44’49”
EAST, 32.54 FEET; THENCE NORTH 83°01’01” EAST, 33.90 FEET; THENCE SOUTH 86°40’14”
EAST, 59.11 FEET; THENCE SOUTH 75°46’00” EAST, 35.94 FEET; THENCE SOUTH 68°09’42”
EAST, 33.08 FEET; THENCE SOUTH 61°04’29” EAST, 30.30 FEET; THENCE SOUTH 32°30’36”
WEST, 36.71 FEET; THENCE NORTH 54°27’18” WEST, 5.39 FEET; THENCE SOUTH 36°38’59”
WEST, 17.12 FEET; THENCE SOUTH 53°35’09” EAST, 33.83 FEET; THENCE SOUTH 46°47’07”
EAST, 26.51 FEET; THENCE SOUTH 39°34’43” EAST, 26.17 FEET; THENCE NORTH 54°07’26”
EAST, 53.90 FEET; THENCE SOUTH 32°21’53” EAST, 30.56 FEET; THENCE SOUTH 26°23’44”
EAST, 20.09 FEET; THENCE SOUTH 19°10’09” EAST, 42.76 FEET; THENCE SOUTH 75°35’22”
WEST, 38.87 FEET; THENCE SOUTH 10°13’49” EAST, 33.15 FEET; THENCE SOUTH 02°48’12”
EAST, 23.39 FEET; THENCE SOUTH 03°34’14” WEST, 29.14 FEET; THENCE SOUTH 82°45’54”
EAST, 38.91 FEET; THENCE SOUTH 10°51’38” WEST, 30.72 FEET; THENCE SOUTH 18°09’27”
WEST, 32.09 FEET; THENCE SOUTH 25°25’38” WEST, 22.92 FEET; THENCE NORTH 62°57’05”
WEST, 53.76 FEET; THENCE SOUTH 27°25’45” WEST, 9.17 FEET; THENCE SOUTH 32°58’15”
WEST, 24.74 FEET; THENCE SOUTH 39°40’27” WEST, 24.73 FEET; THENCE SOUTH 46°56’53”
WEST, 27.39 FEET; THENCE SOUTH 39°34’42” EAST, 52.83 FEET; THENCE SOUTH 51°59’10”
WEST, 30.54 FEET; THENCE SOUTH 61°07’08” WEST, 33.91 FEET; THENCE SOUTH 69°09’29”
WEST, 30.78 FEET; THENCE SOUTH 75°32’27” WEST, 32.50 FEET; THENCE SOUTH 83°29’29”
WEST, 35.64 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM PARCEL NB14 AS SHOWN IN FILE 111,
PAGE 94 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE
DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21, BEING A POINT ON THE CENTERLINE OF HARMON

 A-11
 

AVENUE; THENCE NORTH 89 °31’10” EAST ALONG THE SOUTH
LINE OF THE NORTHWEST CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID
HARMON AVENUE 315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET
CENTERLINE, NORTH 00 °36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF
SAID HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00 °36’27” WEST, 155.30 FEET; THENCE NORTH 89 °31’10” EAST, 365.00 FEET;
THENCE NORTH 00 °36’27” WEST, 150.00 FEET; THENCE SOUTH 89 °31’10” WEST, 590
FEET TO THE EAST RIGHT OF WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID
EASTERLY RIGHT OF WAY, NORTH 00 °36’27” WEST, 434.07 FEET; THENCE DEPARTING
SAID EASTERLY RIGHT-OF-WAY, NORTH 89 °23’33” EAST, 618.50 FEET TO THE POINT OF
BEGINNING; THENCE NORTH 23 °51’47” EAST, 36.68 FEET; THENCE SOUTH 68 °09’41”
EAST, 46.13 FEET; THENCE SOUTH 21 °50’19” WEST, 19.46 FEET; THENCE SOUTH 54 °36’20”
WEST, 22.48 FEET; THENCE NORTH 65 °22’54” WEST, 35.30 FEET TO THE POINT OF BEGINNING.

PARCEL NB14 HAS AN UPPER PLANE ELEVATION OF 2117.29
FEET.

PARCEL PAT HAS AN UPPER ELEVATION OF INFINITY.

PARCEL ELEVEN (11):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA4 AS SHOWN IN FILE 112,
PAGE 05 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA4

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE, 315.36
FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH 00°36’27”
WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE
DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST,
155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00 FEET TO A POINT ON THE
EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY
RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42 FEET; THENCE NORTH 00°54’27” WEST,
114.38 FEET; THENCE DEPARTING SAID EASTERLY RIGHT-OF-WAY, NORTH 89°23’20” EAST,
665.61 FEET; THENCE SOUTH 00°35’55” EAST, 39.49 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 89°24’05” EAST, 9.64 FEET; THENCE SOUTH 00°35’39” EAST, 32.12
FEET; THENCE SOUTH 88°57’10” WEST, 9.35

 A-12
 

FEET; THENCE NORTH 01°06’33” WEST, 32.19 FEET TO THE
POINT OF BEGINNING.

PARCEL NA4 HAS A LOWER PLANE ELEVATION OF 2117.29 FEET
AND AN UPPER PLANE ELEVATION OF 2125.80 FEET.

PARCEL TWELVE (12):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA12 AS SHOWN IN FILE 112,
PAGE 06 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA12

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE, 315.36
FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH 00°36’27”
WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE
DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST,
155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00 FEET TO A POINT ON THE
EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY
RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42 FEET; THENCE NORTH 00°54’27” WEST,
114.38 FEET; THENCE DEPARTING SAID EASTERLY RIGHT-OF-WAY, NORTH 89°23’20” EAST,
655.01 FEET; THENCE SOUTH 00°35’55” EAST, 38.24 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 89°24’05” EAST, 4.10 FEET; THENCE SOUTH 00°42’53” EAST, 3.25 FEET;
THENCE NORTH 89°24’05” EAST, 5.33 FEET; THENCE SOUTH 00°35’55” EAST, 20.93
FEET; THENCE SOUTH 89°28’24” WEST, 9.39 FEET; THENCE NORTH 00°42’53” WEST,
24.17 FEET TO THE POINT OF BEGINNING.

PARCEL NA12 HAS A LOWER PLANE ELEVATION OF 2117.29
FEET AND AN UPPER PLANE ELEVATION OF 2134.29 FEET.

PARCEL THIRTEEN (13):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA13 AS SHOWN IN FILE 112,
PAGE 07 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

 A-13
 

PARCEL NA13

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER (NW 1/4) OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE,
315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH
00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE;
THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27”
WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00 FEET TO A POINT ON THE
EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY
RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42 FEET; THENCE NORTH 00°54’27” WEST,
114.38 FEET; THENCE DEPARTING SAID EASTERLY RIGHT-OF-WAY, NORTH 89°23’20” EAST,
558.63 FEET; THENCE SOUTH 00°38’05” EAST, 39.64 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 89°30’29” EAST, 18.63 FEET; THENCE SOUTH 01°07’37” EAST, 4.21
FEET; THENCE SOUTH 89°29’40” WEST, 2.50 FEET; THENCE SOUTH 00°29’31” EAST,
16.19 FEET; THENCE SOUTH 89°30’29” WEST, 16.17 FEET; THENCE NORTH 00°29’31”
WEST, 20.40 FEET TO THE POINT OF BEGINNING.

PARCEL NA13 HAS A LOWER PLANE ELEVATION OF 2117.29
FEET AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL FOURTEEN (14):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA AS SHOWN IN FILE 112,
PAGE 08 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE

 A-14
 

NORTHWEST CORNER (NW 1⁄4) OF SAID SECTION 21 AND THE
CENTERLINE OF SAID HARMON AVENUE, 315.36 FEET; THENCE DEPARTING SAID SOUTH
LINE, NORTH 00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID
HARMON AVENUE; THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING
NORTH 00°36’27” WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET;
THENCE NORTH 00°36’27” WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 136.35
FEET TO THE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89°31’10” WEST, 453.65
FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH;
THENCE ALONG SAID EASTERLY RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42 FEET;
THENCE NORTH 00°54’27” WEST, 114.38 FEET; THENCE DEPARTING SAID EASTERLY
RIGHT-OF-WAY NORTH 89°23’20” EAST, 995.09 FEET; THENCE SOUTH 00°36’40” EAST,
55.14 FEET; THENCE NORTH 89°26’04” EAST, 1.87 FEET; THENCE SOUTH 00°24’51”
EAST, 77.63 FEET; THENCE SOUTH 89°21’10” WEST, 122.55 FEET; THENCE NORTH 00°33’56”
WEST, 77.83 FEET; THENCE SOUTH 89°26’04” WEST, 60.22 FEET; THENCE SOUTH 00°38’26”
EAST, 78.74 FEET; THENCE NORTH 89°42’33” EAST, 0.11 FEET; THENCE SOUTH 00°40’41”
EAST, 135.10 FEET; THENCE NORTH 75°46’00” WEST, 0.21 FEET; THENCE NORTH 86°40’14”
WEST, 59.11 FEET; THENCE SOUTH 83°01’01” WEST, 33.90 FEET; THENCE SOUTH 75°44’49”
WEST, 32.54 FEET; THENCE SOUTH 68°21’59” WEST, 31.51 FEET; THENCE SOUTH 61°17’00”
WEST, 32.67 FEET; THENCE SOUTH 55°25’35” WEST, 30.03 FEET; THENCE SOUTH 25°15’30”
EAST, 17.50 FEET; THENCE SOUTH 65°10’06” EAST, 7.52 FEET; THENCE SOUTH 24°00’35”
WEST, 11.67 FEET; THENCE NORTH 65°48’52” WEST, 7.53 FEET; THENCE SOUTH 24°06’10”
WEST, 21.38 FEET; THENCE SOUTH 66°35’56” EAST, 4.97 FEET; THENCE SOUTH 24°25’20”
WEST, 43.25 FEET; THENCE NORTH 65°34’40” WEST, 12.39 FEET; THENCE SOUTH 89°01’26”
WEST, 19.25 FEET; THENCE SOUTH 00°39’39” EAST, 60.07 FEET; THENCE SOUTH 65°31’11”
EAST, 4.25 FEET; THENCE SOUTH 24°28’49” WEST, 33.82 FEET; THENCE SOUTH 64°54’45”
EAST, 3.97 FEET; THENCE SOUTH 02°40’26” WEST, 23.31 FEET; THENCE SOUTH 03°36’30”
EAST, 27.47 FEET; THENCE SOUTH 10°37’10” EAST, 27.53 FEET; THENCE SOUTH 13°40’17”
EAST, 8.67 FEET; THENCE NORTH 84°42’26” EAST, 3.21 FEET; THENCE SOUTH 12°44’50”
EAST, 18.14 FEET; THENCE SOUTH 24°57’05” EAST, 12.99 FEET; THENCE SOUTH 61°19’02”
WEST, 0.28 FEET; THENCE SOUTH 64°45’39” WEST, 97.70 FEET; THENCE SOUTH 25°14’21”
EAST, 74.12 FEET; THENCE SOUTH 64°18’14” WEST, 61.67 FEET; THENCE SOUTH 00°36’12”
EAST, 60.97 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM PARCEL NB8 AS SHOWN IN FILE 111,
PAGE 87 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE
DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21, THENCE NORTH 01°28’29” WEST, ALONG THE
WEST LINE OF THE NORTHWEST QUARTER (NW 1/4) OF SAID SECTION 21, A DISTANCE OF
1175.72 FEET TO A POINTON THE WESTERLY PROLONGATION OF THE NORTH LINE OF SAID
LOT 1; THENCE ALONG SAID WESTERLY PROLONGATION, NORTH 89°23’20” EAST, 107.55
FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH;
THENCE CONTINUING ALONG THE NORTH LINE OF SAID LOT 1, NORTH 89°23’20” EAST,
214.60 FEET; THENCE DEPARTING SAID NORTH LINE, SOUTH 00°36’40” EAST, 29.96 FEET
TO THE POINT OF BEGINNING; THENCE NORTH 89°16’02” EAST, 40.64 FEET; THENCE
SOUTH 00°43’58” EAST, 1.15 FEET; THENCE SOUTH 89°13’24” WEST, 8.31 FEET; THENCE
SOUTH 00°46’36” EAST, 14.85 FEET; THENCE SOUTH 89°16’02” WEST, 15.66 FEET;
THENCE SOUTH 00°43’58” EAST, 34.30 FEET; THENCE SOUTH 01°01’23” EAST, 39.73
FEET; THENCE SOUTH 88°58’37” WEST, 20.42 FEET; THENCE NORTH 00°28’57” WEST,
58.65 FEET; THENCE NORTH 88°43’35” EAST, 3.58 FEET; THENCE NORTH 01°16’25” WEST,
31.46 FEET TO THE 

 A-15
 

POINT OF BEGINNING.

PARCEL NB8 HAS AN UPPER PLANE ELEVATION OF 2117.29
FEET.

FURTHER EXCEPTING THEREFROM PARCEL NB10 AS SHOWN IN
FILE 111, PAGE 92 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S
OFFICE DESCRIBED AS FOLLOWS:

PARCEL “1”

COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21; THENCE NORTH 01°28’29” WEST, ALONG THE
WEST LINE OF THE NORTHWEST QUARTER (NW 1/4) OF SAID SECTION 21, A DISTANCE OF
1175.72 FEET TO A POINT ON THE WESTERLY PROLONGATION OF THE NORTH LINE OF SAID
LOT 1; THENCE ALONG SAID WESTERLY PROLONGATION, NORTH 89°23’20” EAST, 107.55
FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH;
THENCE CONTINUING ALONG THE NORTH LINE OF SAID LOT 1, NORTH 89°23’20” EAST,
937.26 FEET; THENCE DEPARTING SAID NORTH LOT LINE, SOUTH 00°36’40” EAST, 63.05
FEET TO THE POINT OF BEGINNING; THENCE NORTH 89°34’34” EAST, 8.11 FEET TO A
POINT HEREINAFTER REFERRED TO AS POINT “A”; THENCE SOUTH 00°07’36” WEST, 16.90
FEET; THENCE SOUTH 89°34’34” WEST, 8.11 FEET; THENCE NORTH 00°07’36” EAST,
16.90 FEET TO THE

POINT OF BEGINNING.

PARCEL “1” OF PARCEL NB10 HAS AN UPPER PLANE ELEVATION
OF 2117.29 FEET.

TOGETHER WITH THE FOLLOWING DESCRIBED AREA;

PARCEL “2”

BEGINNING AT THE AFOREMENTIONED POINT “A”; THENCE
NORTH 89°34’34” EAST, 8.11 FEET; THENCE SOUTH 00°07’36” WEST, 16.90 FEET;
THENCE SOUTH 89°34’34” WEST, 8.11 FEET; THENCE NORTH 00°07’36” EAST, 16.90 FEET
TO THE POINT OF BEGINNING.

PARCEL “2” OF PARCEL NB10 HAS A LOWER PLANE ELEVATION
OF 2111.29 FEET AND AN UPPER PLANE ELEVATION OF 2117.29 FEET.

PARCEL NA HAS AN UPPER PLANE ELEVATION OF 2117.29
FEET.

PARCEL FIFTEEN (15):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA2 AS SHOWN IN FILE 112,
PAGE 09 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA2

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) OF SECTION 21,

 A-16
 

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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER (NW 1/4) OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE,
315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH
00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE;
THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27”
WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 136.35 FEET TO THE POINT OF
BEGINNING; THENCE CONTINUING SOUTH 89°31’10” WEST, 271.50 FEET TO A POINT
HEREINAFTER REFERRED TO AS POINT “A”; THENCE CONTINUING SOUTH 89°31’10” WEST,
182.15 FEET TO A POINT ON THE EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD
SOUTH; THENCE ALONG SAID EASTERLY RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42
FEET; THENCE NORTH 00°54’27” WEST, 114.38 FEET; THENCE DEPARTING SAID EASTERLY
RIGHT-OF-WAY, NORTH 89°23’20” EAST, 995.09 FEET; THENCE SOUTH 00°36’40” EAST,
55.14 FEET; THENCE SOUTH 89°26’04” WEST, 148.98 FEET; THENCE SOUTH 00°36’01”
EAST, 47.55 FEET; THENCE SOUTH 89°26’44” WEST, 32.00 FEET; THENCE SOUTH 00°40’41”
EAST, 166.27 FEET; THENCE NORTH 75°46’00” WEST, 0.21 FEET; THENCE NORTH 86°40’14”
WEST, 59.11 FEET; THENCE SOUTH 83°01’01” WEST, 33.90 FEET; THENCE SOUTH 75°44’49”
WEST, 32.54 FEET; THENCE SOUTH 68°21’59” WEST, 31.51 FEET; THENCE SOUTH 61°17’00”
WEST, 32.67 FEET; THENCE SOUTH 55°25’35” WEST, 30.03 FEET; THENCE SOUTH 25°15’30”
EAST, 17.50 FEET; THENCE SOUTH 65°10’06” EAST, 7.52 FEET; THENCE SOUTH 24°00’35”
WEST, 11.67 FEET; THENCE NORTH 65°48’52” WEST, 7.53 FEET; THENCE SOUTH 24°06’10”
WEST, 21.38 FEET; THENCE SOUTH 66°35’56” EAST, 4.97 FEET; THENCE SOUTH 24°25’20”
WEST, 43.25 FEET; THENCE NORTH 65°34’40” WEST, 12.39 FEET; THENCE SOUTH 89°01’26”
WEST, 19.25 FEET; THENCE SOUTH 00°39’39” EAST, 60.07 FEET; THENCE SOUTH 65°31’11”
EAST, 4.25 FEET; THENCE SOUTH 24°28’49” WEST, 33.82 FEET; THENCE NORTH 64°54’45”
EAST, 3.97 FEET; THENCE SOUTH 02°40’26” WEST, 23.31 FEET; THENCE SOUTH 03°36’30”
EAST, 27.47 FEET; THENCE SOUTH 10°37’10” EAST, 27.53 FEET; THENCE SOUTH 13°40’17”
EAST, 8.67 FEET; THENCE NORTH 84°42’26” EAST, 3.21 FEET; THENCE SOUTH 12°44’50”
EAST, 18.14 FEET; THENCE SOUTH 24°57’05” EAST, 12.99 FEET; THENCE SOUTH 61°19’02”
WEST, 0.28 FEET; THENCE SOUTH 64°45’39” WEST, 97.70 FEET; THENCE SOUTH 25°14’21”
EAST, 74.12 FEET; THENCE SOUTH 64°18’14” WEST, 61.67 FEET; THENCE SOUTH 00°36’12”
EAST, 60.97 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED PARCEL:

COMMENCING AT THE AFOREMENTIONED POINT “A”; THENCE
NORTH 00°39’34” WEST, 1.97 FEET TO THE POINT OF BEGINNING; THENCE CONTINUING
NORTH 00°39’34” WEST, 10.80 FEET; THENCE NORTH 89°20’28” EAST, 1.61 FEET;
THENCE SOUTH 00°39’34” EAST, 10.80 FEET; THENCE SOUTH 89°20’26” WEST, 1.61 FEET
TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED PARCEL HAS A LOWER PLANE ELEVATION
OF 2144.29 FEET AND AN UPPER PLANE ELEVATION OF 2145.29.

FURTHER EXCEPTING THEREFROM THE FOLLOWING PARCELS:

 A-17
 

PARCEL NB4 AS SHOWN IN FILE 111, PAGE 91 OF SURVEYS ON
FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE DESCRIBED AS FOLLOWS:

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER (NW 1/4) OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE,
315.36 FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH
00°36’27” WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE;
THENCE DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27”
WEST, 155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 433.44 FEET TO THE POINT OF
BEGINNING; THENCE CONTINUING SOUTH 89°31’10” WEST, 77.92 FEET; THENCE NORTH
00°28’50” WEST, 0.67 FEET; THENCE SOUTH 88°18’38” WEST, 0.59 FEET; THENCE NORTH
00°37’21” WEST, 7.89 FEET; THENCE NORTH 88°16’52” WEST, 1.62 FEET; THENCE NORTH
46°39’43” WEST, 16.82 FEET; THENCE NORTH 00°48’13” WEST, 17.49 FEET; THENCE
NORTH 44°55’10” EAST, 17.07 FEET; THENCE SOUTH 79°38’00” EAST, 1.58 FEET;
THENCE NORTH 00°21’54” WEST, 14.09 FEET; THENCE SOUTH 89°38’05” WEST, 4.75
FEET; THENCE NORTH 00°33’20” WEST, 47.23 FEET; THENCE NORTH 81°49’18” WEST,
7.02 FEET; THENCE NORTH 00°45’04” WEST, 44.10 FEET; THENCE NORTH 89°45’05”
EAST, 11.13 FEET; THENCE NORTH 00°24’46” WEST 6.76 FEET; THENCE NORTH 89°25’28”
EAST, 78.69 FEET; THENCE SOUTH 00°45’37” EAST, 162.76 FEET TO THE POINT OF
BEGINNING.

PARCEL NB4 HAS A LOWER PLANE ELEVATION OF 2144.29 FEET AND AN UPPER ELEVATION
OF INFINITY.

PARCEL NB5 AS SHOWN IN FILE 111, PAGE 88 OF SURVEYS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST QUARTER (NW 1/4) OF SAID
SECTION 21; THENCE NORTH 01°28’29” WEST, ALONG THE WEST LINE OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21, A DISTANCE OF 1175.72 FEET TO A POINT ON
THE WESTERLY PROLONGATION OF THE NORTH LINE OF SAID LOT 1; THENCE ALONG SAID
WESTERLY PROLONGATION, NORTH 89°23’20” EAST, 107.55 FEET TO A POINT ON THE
EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE CONTINUING ALONG THE
NORTH LINE OF SAID LOT 1, NORTH 89°23’20” EAST, 246.93 FEET; THENCE DEPARTING
SAID NORTH LOT LINE, SOUTH 00°36’40” EAST, 29.89 FEET TO THE POINT OF BEGINNING;
THENCE SOUTH 00°46’36” EAST, 24.98 FEET; THENCE SOUTH 89°26’21” WEST, 20.14
FEET; THENCE NORTH 00°33’37” WEST, 8.60 FEET; THENCE SOUTH 89°26’23” WEST,
11.35 FEET; THENCE SOUTH 00°33’37” EAST, 8.60 FEET; THENCE SOUTH 89°31’31”
WEST, 32.59 FEET; THENCE SOUTH 01°00’06” EAST, 135.40 FEET; THENCE SOUTH 88°56’33”
WEST, 6.03 FEET; THENCE NORTH 00°50’48” WEST, 40.45 FEET; THENCE SOUTH 89°09’12”

 A-18
 

WEST, 37.37 FEET; THENCE SOUTH 47°07’07” WEST, 60.66
FEET; THENCE SOUTH 89°08’03” WEST, 1.67 FEET; THENCE SOUTH 00°51’57” EAST, 2.48
FEET; THENCE SOUTH 89°08’03” WEST, 15.40 FEET; THENCE NORTH 45°06’44” WEST,
11.67 FEET; THENCE NORTH 00°41’40” WEST, 15.49 FEET; THENCE NORTH 44°39’23”
EAST, 14.74 FEET; THENCE NORTH 89°22’28” EAST, 5.69 FEET; THENCE NORTH 05°16’55”
EAST, 54.19 FEET; THENCE SOUTH 89°10’56” WEST, 4.06 FEET; THENCE NORTH 45°11’33”
WEST, 4.59 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE NORTHEASTERLY
AND HAVING A RADIUS OF 13.91 FEET, FROM WHICH THE RADIUS BEARS NORTH 39°50’17”
WEST, THENCE NORTHWESTERLY ALONG SAID CURVE TO THE RIGHT THROUGH A CENTRAL
ANGLE OF 167°59’03”, AN ARC LENGTH OF 40.78 FEET TO A POINT OF NON-TANGENCY TO
WHICH A RADIAL LINE BEARS NORTH 51°51’14” WEST; THENCE ALONG A NON-TANGENT LINE
NORTH 44°52’42” WEST, 4.64 FEET; THENCE NORTH 00°35’26” WEST, 34.07 FEET;
THENCE NORTH 43°59’53” EAST, 7.54 FEET; THENCE NORTH 88°49’23” EAST, 26.50
FEET; THENCE NORTH 01°10’37” WEST, 9.22 FEET; THENCE NORTH 89°16’16” EAST,
153.53 FEET TO THE POINT OF BEGINNING.

PARCEL NB5 HAS A LOWER PLANE ELEVATION OF 2144.29 FEET
AND AN UPPER ELEVATION OF INFINITY.

PARCEL NB13 AS SHOWN IN FILE 111, PAGE 95 OF SURVEYS
ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE, DESCRIBED AS FOLLOWS:

A CYLINDER HAVING A 32.09 FOOT RADIUS BEING A PORTION
OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP ENTITLED “THE ALADDIN COMMERCIAL
SUBDIVISION” AS RECORDED IN BOOK 96, PAGE 0033 OF PLATS ON FILE AT THE CLARK
COUNTY, NEVADA RECORDER’S OFFICE AND LYING WITHIN A PORTION OF THE NORTHWEST
QUARTER (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE, 315.36
FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH 00°36’27”
WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE
DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST,
155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 590.00 FEET TO THE EAST
RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY
RIGHT-OF-WAY, NORTH 00°36’27” WEST, 373.97 FEET; THENCE DEPARTING SAID EASTERLY
RIGHT-OF-WAY, NORTH 89°23’33” EAST, 507.55 FEET TO THE RADIUS POINT OF SAID
CYLINDER AND BEING THE POINT OF BEGINNING.

PARCEL NB13 HAS A LOWER PLANE ELEVATION OF 2144.29
FEET AND AN UPPER PLANE ELEVATION OF 2171.85 FEET.

PARCEL NA2 HAS A LOWER PLANE ELEVATION OF 2144.29 FEET
AND AN UPPER ELEVATION OF INFINITY.

PARCEL SIXTEEN (16):

 A-19
 

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA14 AS SHOWN IN FILE 112,
PAGE 11 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA14

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) 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 A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE, 315.36
FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH 00°36’27”
WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE
DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST,
155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 459.06 FEET; THENCE NORTH 00°28’50”
WEST, 1.81 FEET TO A POINT HEREINAFTER REFERRED AS POINT NO. 1, SAME POINT
BEING THE POINT OF BEGINNING; THENCE NORTH 00°39’34” WEST, 10.80 FEET; THENCE
NORTH 89°20’26” EAST, 52.83 FEET; THENCE SOUTH 00°39’34” EAST, 10.80 FEET;
THENCE SOUTH 89°20’26” WEST, 52.83 FEET TO POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2117.29 FEET AND AN UPPER PLANE ELEVATION OF 2145.29 FEET.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 1; THENCE
NORTH 00°39’34” WEST, 10.80 FEET; THENCE NORTH 89°20’26” EAST, A SLOPE DISTANCE
OF 16.41 FEET AT A VERTICAL ANGLE ABOVE THE HORIZON OF 33°15’50” TO A POINT
HEREINAFTER REFERRED TO AS POINT NO. 2; THENCE SOUTH 00°39’34” EAST, 10.80
FEET; THENCE SOUTH 89°20’26” WEST, A SLOPE DISTANCE OF 16.41 FEET AT A VERTICAL
ANGLE BELOW THE HORIZON OF 33°15’50” TO THE POINT OF BEGINNING.

 A-20
 

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2117.29 FEET AND AN UPPER PLANE ELEVATION OF 2126.29 FEET.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 2; THENCE
NORTH 89°20’26” EAST, 7.11 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT NO.
3; THENCE SOUTH 00°39’34” EAST, 10.80 FEET; THENCE SOUTH 89°20’26” WEST, 7.11
FEET; THENCE NORTH 00°39’34” WEST, 10.80 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2117.29 FEET AND AN UPPER PLANE ELEVATION OF 2126.29 FEET.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 3; THENCE
NORTH 89°20’26” EAST, A SLOPE DISTANCE OF 17.09 FEET AT A VERTICAL ANGLE ABOVE
THE HORIZON OF 31°46’28” TO A POINT HEREINAFTER REFERRED TO AS POINT NO. 4;
THENCE SOUTH 00°39’34” EAST, 10.80 FEET; THENCE SOUTH 89°20’26” WEST, A SLOPE
DISTANCE OF 17.09 FEET AT A VERTICAL ANGLE BELOW THE HORIZON OF 31°46’28”;
THENCE NORTH 00°39’34” WEST, 10.80 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2126.29 FEET AND AN UPPER PLANE ELEVATION OF 2136.29 FEET.

EXCEPTING THEREFROM THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 4; THENCE
NORTH 89°20’26” EAST, 2.94 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT NO.
5; THENCE SOUTH 00°39’34” EAST, 10.80 FEET; THENCE SOUTH 89°20’26” WEST, 2.94
FEET; THENCE NORTH 00°39’34” WEST, 10.80 FEET TO THE POINT OF BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2117.29 FEET AND AN UPPER PLANE ELEVATION OF 2136.29.

TOGETHER WITH THE FOLLOWING DESCRIBED AREA:

BEGINNING AT THE AFOREMENTIONED POINT NO. 5; THENCE
NORTH 89°20’26” EAST, A SLOPE DISTANCE OF 17.09 FEET AT A VERTICAL ANGLE ABOVE
THE HORIZON OF 31°46’28”; THENCE SOUTH 00°39’34” EAST, 10.80 FEET; THENCE SOUTH
89°20’26” WEST, A SLOPE DISTANCE OF 17.09 FEET AT A VERTICAL ANGLE BELOW THE
HORIZON OF 31°46’28”; THENCE NORTH 00°39’34” WEST, 10.80 FEET TO THE POINT OF
BEGINNING.

THE ABOVE DESCRIBED AREA HAS A LOWER PLANE ELEVATION
OF 2136.29 FEET AND AN UPPER PLANE ELEVATION OF 2145.29 FEET.

PARCEL SEVENTEEN (17):

EXPLANATION:

THIS LEGAL DESCRIBES PARCEL NA1 AS SHOWN IN FILE 112,
PAGE 10 OF SURVEYS ON FILE AT THE CLARK COUNTY, NEVADA RECORDER’S OFFICE.

LEGAL DESCRIPTION

PARCEL NA1

A PORTION OF LOT 1 AS SHOWN IN THAT CERTAIN FINAL MAP
ENTITLED “THE ALADDIN COMMERCIAL SUBDIVISION” AS 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 (NW 1/4) OF SECTION 21, TOWNSHIP 21 SOUTH,
RANGE 61 EAST, M.D.M., CLARK COUNTY, NEVADA, MORE

 A-21
 

PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE SOUTHWEST CORNER OF THE NORTHWEST
QUARTER (NW 1/4) OF SAID SECTION 21 BEING A POINT ON THE CENTERLINE OF HARMON
AVENUE; THENCE NORTH 89°31’10” EAST ALONG THE SOUTH LINE OF THE NORTHWEST
CORNER OF SAID SECTION 21 AND THE CENTERLINE OF SAID HARMON AVENUE, 315.36
FEET; THENCE DEPARTING SAID SOUTH LINE AND STREET CENTERLINE, NORTH 00°36’27”
WEST, 64.70 FEET TO THE NORTHERLY RIGHT-OF-WAY OF SAID HARMON AVENUE; THENCE
DEPARTING SAID NORTHERLY RIGHT-OF-WAY AND CONTINUING NORTH 00°36’27” WEST,
155.30 FEET; THENCE NORTH 89°31’10” EAST, 365.00 FEET; THENCE NORTH 00°36’27”
WEST, 150.00 FEET; THENCE SOUTH 89°31’10” WEST, 511.36 FEET TO THE POINT OF
BEGINNING; THENCE CONTINUING SOUTH 89°31’10” WEST, 78.64 FEET TO A POINT ON THE
EASTERLY RIGHT-OF-WAY OF LAS VEGAS BOULEVARD SOUTH; THENCE ALONG SAID EASTERLY
RIGHT-OF-WAY, NORTH 00°36’27” WEST, 691.42 FEET; THENCE NORTH 00°54’27” WEST,
114.38 FEET; THENCE DEPARTING SAID EASTERLY RIGHT-OF-WAY, NORTH 89°23’20” EAST,
995.09 FEET; THENCE SOUTH 00°36’40” EAST, 55.14 FEET; THENCE SOUTH 89°26’04”
WEST, 238.13 FEET; THENCE NORTH 00°36’12” WEST, 24.94 FEET; THENCE SOUTH 89°24’05”
WEST, 171.48 FEET; THENCE NORTH 01°02’20” WEST, 6.54 FEET; THENCE SOUTH 89°21’55”
WEST, 41.81 FEET; THENCE SOUTH 00°23’47” EAST, 6.50 FEET; THENCE SOUTH 89°21’10”
WEST, 30.06 FEET; THENCE SOUTH 00°27’18” WEST, 25.12 FEET; THENCE SOUTH 89°26’12”
WEST, 266.06 FEET; THENCE NORTH 00°46’36” WEST, 24.98 FEET; THENCE SOUTH 89°16’16”
WEST, 153.53 FEET; THENCE SOUTH 01°10’37” EAST, 9.22 FEET; THENCE SOUTH 88°49’23”
WEST, 26.50 FEET; THENCE SOUTH 43°59’53 WEST, 7.54 FEET; THENCE SOUTH 00°35’26”
EAST, 34.07 FEET; THENCE SOUTH 44°52’42” EAST, 4.64 FEET TO THE BEGINNING OF A
NON-TANGENT CURVE, CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 13.91 FEET,
FROM WHICH A RADIAL LINE BEARS SOUTH 51°51’14” EAST; THENCE SOUTHEASTERLY ALONG
SAID CURVE TO THE LEFT THROUGH A CENTRAL ANGLE OF 167°59’03”, AN ARC LENGTH OF
40.78 FEET TO A POINT OF NON-TANGENCY, A RADIAL LINE TO SAID POINT BEARS SOUTH
39°50’17” EAST; THENCE ALONG A NON-TANGENT LINE SOUTH 45°11’33” EAST, 4.59
FEET; THENCE NORTH 89°10’56” EAST, 4.06 FEET; THENCE SOUTH 05°16’55” WEST,
54.19 FEET; THENCE SOUTH 89°22’28” WEST, 5.69 FEET; THENCE SOUTH 44°39’23”
WEST, 14.74 FEET; THENCE SOUTH 00°41’40” EAST, 15.49 FEET; THENCE SOUTH 45°06’44”
EAST, 11.67 FEET; THENCE NORTH 89°08’03” EAST, 15.40 FEET; THENCE SOUTH 00°51’57”
EAST, 3.09 FEET; THENCE SOUTH 45°34’44” EAST, 20.69 FEET; THENCE NORTH 89°51’51”
EAST, 7.08 FEET; THENCE NORTH 00°36’08” WEST, 10.54 FEET; THENCE NORTH 89°22’51”
EAST, 8.64 FEET; THENCE SOUTH 00°51’36” EAST, 6.32 FEET; THENCE NORTH 89°23’00”
EAST, 70.00 FEET; THENCE NORTH 00°37’00” WEST, 2.46 FEET; THENCE NORTH 89°21’39”
EAST, 42.47 FEET; THENCE SOUTH 00°34’21” EAST, 2.48 FEET; THENCE NORTH 89°23’00”
EAST, 9.86 FEET; THENCE NORTH 00°43’19” WEST, 22.52 FEET; THENCE NORTH 89°15’40”
EAST, 8.51 FEET; THENCE SOUTH 00°42’30” EAST, 2.77 FEET; THENCE NORTH 89°17’30”
EAST, 109.10 FEET; THENCE NORTH 01°05’27” WEST, 2.82 FEET; THENCE NORTH 89°48’50”
EAST, 8.27 FEET; THENCE SOUTH 65°42’02” EAST, 42.12 FEET; THENCE SOUTH 25°03’42”
WEST, 5.05 FEET; THENCE SOUTH 65°27’22” EAST, 25.40 FEET; THENCE NORTH 11°28’05”
EAST, 0.61 FEET; THENCE SOUTH 65°22’40” EAST, 39.03 FEET; THENCE SOUTH 24°17’06”
WEST, 24.04 FEET; THENCE SOUTH 63°36’49” EAST, 9.33 FEET; THENCE SOUTH 01°01’35”
WEST, 10.31 FEET; THENCE SOUTH 25°00’58” WEST, 43.66 FEET; SOUTH 65°55’32”
EAST, 27.15 FEET; THENCE SOUTH 24°20’07” WEST, 74.69 FEET; THENCE SOUTH 45°12’47”
WEST, 2.26 FEET; THENCE SOUTH 45°48’06” EAST, 19.04 FEET; THENCE NORTH 89°40’45”
EAST, 3.70 FEET; THENCE NORTH 04°12’09” EAST, 1.49 FEET; THENCE NORTH 88°19’56”
EAST, 4.28 FEET; THENCE SOUTH 00°41’26” EAST,

 A-22
 

62.53 FEET; THENCE SOUTH 89°37’37” WEST, 8.30 FEET;
THENCE SOUTH 00°36’39” EAST, 60.49 FEET; THENCE SOUTH 64°40’35” WEST, 16.80
FEET; THENCE SOUTH 25°41’08” EAST, 60.80 FEET; THENCE SOUTH 64°22’54” WEST,
87.94 FEET; THENCE NORTH 24°50’35” WEST, 3.46 FEET; THENCE SOUTH 65°09’25”
WEST, 6.45 FEET; THENCE SOUTH 24°50’35” EAST, 3.51 FEET; THENCE SOUTH 64°23’08”
WEST, 139.31 FEET; THENCE NORTH 25°54’06” WEST, 37.43 FEET; THENCE SOUTH 89°01’31”
WEST, 19.00 FEET; THENCE NORTH 00°44’18” WEST, 34.11 FEET; THENCE SOUTH 88°58’21”
WEST, 2.57 FEET; THENCE NORTH 00°19’14” EAST, 2.01 FEET; THENCE SOUTH 89°26’21”
WEST, 133.64 FEET; THENCE SOUTH 00°24’46” EAST, 34.83 FEET; THENCE SOUTH 89°45’05”
WEST, 11.13 FEET; THENCE SOUTH 00°45’04” EAST, 44.10 FEET; THENCE SOUTH 81°49’18”
EAST, 7.02 FEET; THENCE SOUTH 00°33’20” EAST, 47.23 FEET; THENCE NORTH 89°38’05”
EAST, 4.75 FEET; THENCE SOUTH 00°21’54” EAST, 14.09 FEET; THENCE NORTH 79°38’00”
WEST, 1.58 FEET; THENCE SOUTH 44°55’10” WEST, 17.07 FEET; THENCE SOUTH 00°48’13”
EAST, 17.49 FEET; THENCE SOUTH 46°39’43” EAST, 16.82 FEET; THENCE SOUTH 88°16’52”
EAST, 1.62 FEET; THENCE SOUTH 00°37’21” EAST, 7.89 FEET; THENCE NORTH 88°18’38”
EAST, 0.59 FEET; THENCE SOUTH 00°28’50” EAST, 0.67 FEET TO THE POINT OF
BEGINNING.

PARCEL NA1 HAS A LOWER PLANE ELEVATION OF 2117.29 FEET
AND AN UPPER PLANE ELEVATION OF 2144.29 FEET.

PARCEL EIGHTEEN (18):

A NON-EXCLUSIVE EASEMENT FOR PEDESTRIAN AND VEHICULAR
INGRESS, EGRESS, PARKING, UTILITIES, MAINTENANCE AND OTHER USES AS PROVIDED FOR
IN THAT CERTAIN “CONSTRUCTION, OPERATION AND RECIPROCAL EASEMENT AGREEMENT” BY
AND BETWEEN ALADDIN GAMING, LLC, ALADDIN BAZAAR, LLC AND ALADDIN MUSIC
HOLDINGS, LLC, 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 AS AMENDED BY
MEMORANDUM OF AMENDMENT AND RATIFICATION OF REA RECORDED NOVEMBER 20, 2000 IN
BOOK 20001120 AS INSTRUMENT NO. 00858, AS AMENDED BY SECOND AMENDMENT OF
CONSTRUCTION, OPERATION RECIPROCAL EASEMENT AGREEMENT RECORDED MARCH 31, 2003
IN BOOK 20030331 AS INSTRUMENT NO. 04875, AS ASSIGNED BY “ASSIGNMENT AND
ASSUMPTION OF RECIPROCAL EASEMENT AGREEMENT” RECORDED SEPTEMBER 1, 2004 IN BOOK
20040901 AS INSTRUMENT NO. 00285 OF OFFICIAL RECORDS, AS MODIFIED BY A DOCUMENT
DECLARING MODIFICATIONS THEREOF RECORDED NOVEMBER 17, 2005 IN BOOK 20051117 AS
INSTRUMENT NO. 05802 OF OFFICIAL RECORDS OF CLARKS COUNTY, NEVADA.

PARCEL NINETEEN (19):

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 COMMON PARKING AREA USE
AGREEMENT” BY AND BETWEEN ALADDIN GAMING, LLC AND ALADDIN BAZAAR, LLC 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 RECORDS.

NOTE: THE ABOVE METES AND
BOUNDS LEGAL DESCRIPTION APPEARED PREVIOUSLY IN THAT

 A-23
 

CERTAIN DOCUMENT RECORDED
SEPTEMBER 1, 2004 IN BOOK 20040901 AS INSTRUMENT NO. 00286 OF OFFICIAL RECORDS,
CLARK COUNTY, NEVADA.

 A-24

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 Borrower under the License Agreement and Licenses, together with
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
(including, without limitation, any License) 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

 B-1
 

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.

“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 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-4

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