Document:

Exhibit 10.6

EXECUTION VERSION

 

INTERCREDITOR AND LIEN SUBORDINATION AGREEMENT

 

 

among

 

 

WELLS
FARGO FOOTHILL, INC.,

as
Agent,

 

WELLS
FARGO BANK, NATIONAL ASSOCIATION,

as
Collateral Agent,

 

POSTER
FINANCIAL GROUP, INC.

and
certain of its SUBSIDIARIES,

as
Borrowers and Guarantors

 

Dated
as of January 23, 2004

 

 

 

INTERCREDITOR
AND LIEN SUBORDINATION AGREEMENT

 

THIS INTERCREDITOR AND LIEN
SUBORDINATION AGREEMENT dated as of January 23, 2004 (this “Agreement”)
is made by and among WELLS FARGO FOOTHILL, INC., in its capacity as the
arranger, administrative agent, and documentation agent (in such capacity,
together with it successors and assigns (if any) in such capacity, the “Original
Agent”) under and pursuant to the Loan Agreement (as hereinafter defined),
WELLS FARGO BANK, NATIONAL ASSOCIATION, solely in its capacity as collateral
agent (in such capacity, together with its successors and assigns (if any) in
such capacity, the “Original Collateral Agent”) under the Noteholder
Documents (as hereinafter defined), POSTER FINANCIAL GROUP, INC., a Nevada
corporation (the “Parent”), and those certain subsidiaries of the Parent
party hereto (the “Subsidiaries” and, together with the Parent, each,
individually, a “Credit Party”, and collectively, the “Credit Parties”).

 

RECITALS

 

A.            The Parent, the Subsidiaries, and HSBC BANK USA, in its
capacity as Trustee (in such capacity, together with its successors and assigns
(if any) in such capacity, the “Trustee”), have entered into an
Indenture, dated as of December 3, 2003 (as amended, restated, supplemented or
otherwise modified from time to time in conformance with the provisions of this
Agreement and such Indenture, the “Indenture”), pursuant to which the
Parent incurred indebtedness for certain notes (such notes, together with all
other notes issued after the date hereof and exchange notes issued in exchange
therefor, the “Notes”) in an aggregate principal amount at maturity of
$155,000,000.  The Credit Parties  and the Original Collateral Agent have
entered into those certain security agreements, pledge agreements, cash
management agreements, collateral access agreements, control agreements,
trademark security agreements, copyright security agreements, and mortgages (as
amended, restated, supplemented or otherwise modified from time to time in
conformance with the provisions of this Agreement and such documents, the “Indenture
Security Documents”, and together with the Indenture, the “Noteholder
Documents”).  The repayment in full
of the Obligations (as that term is defined in the Indenture) relating to the
Notes and the Guarantees (as that term is defined in the Indenture) is secured
by second priority security interests in and liens on the Collateral (as
defined below) pursuant to the Indenture Security Documents.

 

B.            The
Parent, GNL, CORP., and GNLV, CORP., as borrowers, the Original Agent, and the
lenders from time to time party thereto (the “Original Lenders”) have
entered into a Loan and Security Agreement dated as of January 23, 2004 (the “Original
Loan Agreement”); and the Credit Parties and the Original Agent have
entered into those certain guarantees, guarantor security agreements, guarantor
pledge agreements, borrower pledge agreements, cash management agreements,
control agreements, trademark security agreements, collateral access
agreements, copyright security agreements, intercompany subordination
agreements, and mortgages (as amended,

 

 

restated, supplemented or
otherwise modified from time to time in conformance with the provisions of this
Agreement and such Original Loan Agreement, the “Security Documents”,
and together with the Original Loan Agreement, the “Original Loan Documents”)
pursuant to which the Original Agent and the Original Lenders agreed, upon the
terms and conditions stated therein, to make loans and advances to and to issue
letters of credit for the account of the Credit Parties up to the principal
amount of $35,000,000, together with the fees, interest, expenses and other
obligations due under the Original Loan Agreement.  The repayment of the Obligations (as that term is defined in the
Original Loan Agreement) is secured by first priority security interests in and
liens on the Collateral (as defined below) pursuant to the Security Documents.

 

C.            One of the conditions of the Original Loan Agreement is
that the priority of the security interests in and liens on the Collateral to
secure the Loan Agreement Secured Obligations (as defined below) be senior to
the security interests in and liens on the Collateral (as defined below) to
secure the Indenture Secured Obligations (as defined below), in the manner and
to the extent provided in this Agreement.

 

D.            The Original Agent, for and on behalf of itself and the
Original Lenders, and the Original Collateral Agent, for and on behalf of
itself, the Trustee and the Noteholders (as defined below) desire to enter into
this Agreement concerning the respective rights of the Agent (as defined below)
and the Collateral Agent (as defined below) with respect to the priority of
their respective security interests in and liens on the Collateral.

 

E.             The terms of the (i) Indenture permit the Parent and the
other Credit Parties to enter into the Original Loan Documents and (ii)
Original Loan Agreement permit the Parent and the other Credit Parties to enter
into the Noteholder Documents, subject to compliance with certain conditions,
and in connection therewith authorize and direct the Collateral Agent and the
Agent to enter into a subordination agreement substantially in the form of this
Agreement.

 

F.             In order to induce the Original Agent and the Original
Lenders to extend credit to the Credit Parties and the Noteholders to purchase
the Notes and for purposes of certain conditions precedent and covenants of the
Original Loan Agreement and the Noteholder Documents, the Agent and the
Collateral Agent hereby agree as follows:

 

2

 

ARTICLE
I.

 

DEFINITIONS

 

Section 1.01           Terms Defined Above and in the
Recitals.  As used in this
Agreement, the following terms shall have the respective meanings indicated in
the opening paragraph hereof and in the above Recitals:

 

“Agreement”

“Credit Parties”

“Indenture”

“Indenture Security
Documents”

“Noteholder Documents”

“Notes”

“Original Agent”

“Original Collateral Agent”

“Original Lenders”

“Original Loan Agreement”

“Original Loan Documents”

“Parent”

“Security Documents”

“Subsidiaries”

“Trustee”

 

Section 1.02           [Intentionally Omitted.]

 

Section 1.03           Definitions.  As used in this Agreement, the following
terms shall have the meanings set forth below:

 

“Advances” means the
principal amount outstanding from time to time of all revolving loans made
under any Loan Agreement.

 

“Affiliate” means, as
applied to any Person, any other Person who, directly or indirectly through one
or more intermediaries, controls, is controlled by, or is under common control
with, such Person.  For purposes of this
definition, “control” means the possession, directly or indirectly through one
or more intermediaries, of the power to direct the management and policies of a
Person, whether through the ownership of Equity Interests, by contract, or
otherwise; provided, however, that (a) any Person which owns
directly or indirectly 10% or more of the Equity Interests having ordinary
voting power for the election of directors or other members of the governing
body of a Person or 10% or more of the partnership or other ownership interests
of a Person (other than as a limited partner of such Person) shall be deemed an
Affiliate of such Person, (b) each director (or comparable manager) of a Person
shall be deemed to be an Affiliate of such Person, and (c) each partnership or
joint venture in which a Person is a partner or joint venturer shall be deemed
an Affiliate of such Person.

 

3

 

“Agent” means the
Original Agent, together with its successors, assigns, transferees, and any
Person that has a similar title (such as “Agent” or “Administrative Agent”)
under any Loan Agreement; provided, that for purposes of this Agreement,
the Collateral Agent shall be entitled to deal only with the Original Agent
until such time as the Original Agent shall have assigned to another Agent all
of its rights and obligations hereunder to such other Agent pursuant to an
assignment, notice of which has been provided by the Original Agent to the
Collateral Agent and until receipt thereof, the Collateral Agent shall not be
liable for any such dealings (including the turning over of any Collateral or
proceeds thereof to the Original Agent at a time when any other Agent and not
the Original Agent was entitled thereto).

 

“Bankruptcy Code”
means title 11 of the United States Code, as in effect from time to time.

 

“Capital
Lease” means a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP.

 

“Capital Stock” means
(a) in the case of a corporation, corporate stock, (b) in the case of an
association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock, (c) in the
case of a partnership or limited liability company, partnership or membership
interests (whether general or limited), and (d) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of property of, the issuing Person.

 

“Cash Collateral”
means any Collateral consisting of cash or cash equivalents, any security
entitlement (as defined in the New York Commercial Code) and any financial
assets (as defined in the New York Commercial Code).

 

“Collateral” means
all of each Credit Party’s right, title and interest in, to, and under all real
and personal property and assets of the Credit Parties, including without
limitation, all “Collateral” as defined in the Loan Documents or the Indenture
Collateral Documents.

 

“Collateral Agent”
means the Original Collateral Agent, together with its successors, assigns,
transferees, and any Person that has a similar title (such as “Agent” or
“Collateral Agent”) under any Noteholder Document; provided, that for
purposes of this Agreement, the Agent shall be entitled to deal only with the
Original Collateral Agent until such time as the Original Collateral Agent
shall have assigned to another Collateral Agent all of its rights and
obligations hereunder pursuant to an assignment, notice of which has been
provided by the Original Collateral Agent to the Agent and until receipt
thereof, the Agent shall not be liable for any such dealings (including the
turning over of any Collateral or proceeds thereof to the Original Collateral
Agent at a time when any other Collateral Agent and not the Original Collateral
Agent was entitled thereto).

 

4

 

“Collateral Agent
Standstill Notice” means a written notice from or on behalf of the Agent to
the Collateral Agent stating that an Event of Default has occurred and is
continuing and stating that such written notice is a “Collateral Agent
Standstill Notice”.

 

“Collateral Agent
Standstill Period” has the meaning set forth in Section 2.03.

 

“Control Collateral”
means any Collateral consisting of a certificated security (as defined in the
New York Commercial Code), investment property (as defined in the New York
Commercial Code), a deposit account (as defined in the New York Commercial
Code) and any other Collateral as to which a Lien may be perfected through  possession or control by the secured party
or any agent therefor.

 

“DIP Financing” has
the meaning set forth in Section 6.01.

 

“Discharge of the Loan
Agreement Secured Obligations” means payment in full in cash of the Loan
Agreement Secured Obligations (other than Loan Agreement Secured Obligations
consisting of contingent indemnification obligations under the Lender Loan
Documents)  up to (but not in excess of)
the Maximum Lender Priority Debt Amount including, with respect to amounts
available to be drawn under outstanding letters of credit issued thereunder (or
indemnities issued pursuant thereto in respect of outstanding letters of
credit), delivery of cash collateral or backstop letters of credit in respect
thereof in compliance with the terms of the Loan Agreement, in each case, after
or concurrently with termination of all commitments to extend credit
thereunder.

 

“Equity Interests”
means (i) all shares, units, options, rights, warrants, interests,
participations, or other equivalents (regardless of how designated) of or in a
corporation, partnership, limited liability company, or equivalent entity,
whether voting or nonvoting, including general partner partnership interests,
limited partner partnership interests, common stock, preferred stock, or any
other “equity security” (as such term is defined in Rule 3a11-1 of the General
Rules and Regulations promulgated by the SEC under the Exchange Act),
including, without limitation all Capital Stock and (ii) all proceeds,
including, without limitation, all proceeds received or receivable by a Credit
Party, in cash, Capital Stock or otherwise, from any recapitalization,
reclassification, merger, dissolution, liquidation or other termination of the
existence of a Credit Party.

 

“Event of Default”
has the meaning set forth in Section 8 of the Loan Agreement.

 

“FSELLC” means The
Fremont Street Experience Limited Liability Company, a Nevada limited liability
company.

 

“GNELLC” means Golden
Nugget Experience, LLC, a Nevada limited liability company.

 

5

 

“Governmental Authority”
means any nation, sovereign or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government,
including any central bank.

 

“Guarantors” means “Guarantors”
as defined in the Indenture and the Loan Agreement.

 

“Hedge Agreement” means
any and all agreements or documents now existing or hereafter entered into by
any Credit Party that provide for an interest rate, credit, commodity or equity
swap, cap, floor, collar, forward foreign exchange transaction, currency swap,
cross currency rate swap, currency option, or any combination of, or option
with respect to, these or similar transactions, for the purpose of hedging any
Credit Party’s exposure to fluctuations in interest or exchange rates, loan,
credit exchange, security or currency valuations or commodity prices.

 

“Indebtedness” means,
without duplication, (a) all obligations for borrowed money, (b) all
obligations evidenced by bonds, debentures, notes, or other similar instruments
and all reimbursement or other obligations in respect of letters of credit,
bankers acceptances, interest rate swaps, or other financial products, (c) all
obligations as a lessee under Capital Leases, (d) all obligations or
liabilities of others secured by a Lien on any asset of a Person or its
subsidiaries, irrespective of whether such obligation or liability is assumed,
(e) all obligations to pay the deferred purchase price of assets (other than
trade payables incurred in the ordinary course of business and repayable in
accordance with customary trade practices), (f) all obligations owing under
Hedge Agreements, and (g) any obligation guaranteeing or intended to guarantee
(whether directly or indirectly guaranteed, endorsed, co-made, discounted, or
sold with recourse) any obligation of any other Person that constitutes
Indebtedness under any of clauses (a) through (f) above.

 

“Indenture Collateral
Documents” means the Indenture Security Documents and any document or
instrument executed and delivered pursuant to any Noteholder Document at any
time or otherwise pursuant to which a Lien is granted by a Credit Party to
secure the Indenture Secured Obligations or under which rights or remedies with
respect to any such Lien are governed, as the same may be amended, renewed,
extended, supplemented or modified from time to time.

 

“Indenture Event of
Default” means an event of default under the Noteholder Documents.

 

“Indenture Secured
Obligations” means all Obligations and other liabilities (contingent or
otherwise) arising under or with respect to the Noteholder Documents or any of
them, including any and all amounts payable under or in respect of the
Noteholder Documents, as amended, restated, modified, renewed, refunded,
replaced, or refinanced in whole or in part from time to time, in accordance
with this Agreement

 

6

 

including principal,
premium, interest accrued or accruing (or which would absent the commencement
of an Insolvency or Liquidation Proceeding accrue), fees, attorneys’ fees,
costs, charges, expenses, reimbursement obligations, any obligation to post
cash collateral in respect of letters of credit or indemnities in respect
thereof, indemnities, guarantees, and all other amounts payable thereunder or
in respect thereof (including, in each case, all amounts accruing on or after
the commencement of any Insolvency or Liquidation Proceeding relating to any
Credit Party or any other Person irrespective of whether a claim for all or any
portion of such amounts is allowable or allowed in any Insolvency or Liquidation
Proceeding).

 

“Insolvency or
Liquidation Proceeding” means (a) any voluntary or involuntary case or
proceeding under the Bankruptcy Code with respect to any Credit Party, (b) any
other voluntary or involuntary insolvency, reorganization or bankruptcy case or
proceeding, or any receivership, liquidation, reorganization or other similar
case or proceeding with respect to any Credit Party or with respect to any of
their respective assets, (c) any liquidation, dissolution, reorganization or
winding up of any Credit Party whether voluntary or involuntary and whether or
not involving insolvency or bankruptcy or (d) any assignment for the benefit of
creditors or any other marshalling of assets and liabilities of any Credit
Party.

 

“Issuing Lender”
means Original Agent, Agent or any other Lender that, at the request of any of
the Credit Parties and with the consent of Agent (which consent will not be
unreasonably withheld or delayed), agrees, in such Lender’s sole discretion, to
become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings.

 

“L/C” means the
agreement by Issuing Lender, subject to the terms and conditions of the Loan
Agreement, to issue letters of credit for the account of Credit Parties.

 

“L/C Disbursement”
means a payment made by the Issuing Lender pursuant to a Letter of Credit.

 

“L/C Undertaking”
means the agreement of the Issuing Lender, subject to the terms and conditions
of the Loan Agreement, to purchase participations or execute indemnities or
reimbursement obligations, with respect to letters of credit issued by an
Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is
to be Original Agent) for the account of any of the Credit Parties.

 

“Letter of Credit”
means an L/C or an L/C Undertaking, as the context requires.

 

“Lender Loan Documents”
means the Loan Agreement, the Security Documents, the “Loan Documents” as
defined in the Original Loan Agreement, the collateral documents and
instruments executed and delivered in connection therewith or

 

7

 

in connection with any other
Loan Agreement hereunder, and such other agreements, instruments and
certificates as defined in a Loan Agreement.

 

“Lenders” means the
Original Lenders, together with all successors, assigns, transferees,
participants, or replacement or refinancing lenders of the Original Lenders,
including any Person designated as an Original Lender under any Loan Agreement.

 

“Lien” means any
interest in an asset securing an obligation owed to, or a claim by, any Person
other than the owner of the asset, irrespective of whether (a) such interest is
based on the common law, statute, or contract, (b) such interest is recorded or
perfected, and (c) such interest is contingent upon the occurrence of some future
event or events or the existence of some future circumstance or
circumstances.  Without limiting the
generality of the foregoing, the term “Lien” includes the lien or security
interest arising from a mortgage, deed of trust, encumbrance, pledge, hypothecation,
assignment, deposit arrangement, security agreement or other preferential
arrangement whatsoever, including, without limitation, any right of setoff, any
conditional sale or trust receipt, or from a lease or any financing lease
having substantially the same economic effect as any of the foregoing,
consignment, or bailment for security purposes and also includes reservations,
exceptions, encroachments, easements, rights-of-way, covenants, conditions,
restrictions, leases, and other title exceptions and encumbrances affecting
Real Property.

 

“Lien Priority” means
with respect to any Lien of the Agent (or any Lender) or the Collateral Agent
in the Collateral, the order of priority of such Lien as specified in Section
2.01.

 

“Loan Agreement”
means the Original Loan Agreement as amended, restated, modified, renewed,
refunded, replaced, or refinanced in whole or in part from time to time,
including any agreement extending the maturity of, consolidating, otherwise
restructuring (including adding Subsidiaries or affiliates of the Parent or any
other Persons as parties thereto) or refinancing all or any portion of the
Obligations or Commitments as those terms are defined in the Original Loan
Agreement (or in any other agreement that itself is a Loan Agreement hereunder)
and whether by the same or any other agent, lender, or group of lenders and
whether or not increasing the amount of indebtedness that may be incurred
thereunder.

 

“Loan Agreement Secured
Obligations” means all Obligations and all liabilities (contingent or
otherwise) under the terms of a Loan Agreement and the other Lender Loan
Documents, including any and all amounts payable under or in respect of the
Lender Loan Documents, as amended, restated, modified, renewed, refunded,
replaced, or refinanced in whole or in part from time to time in accordance
with this Agreement, including principal, premium, interest accrued or accruing
(or which would absent the commencement of an Insolvency or Liquidation
Proceeding accrue), fees, attorneys’ fees, costs, charges, expenses,
reimbursement obligations, any obligation to

 

8

 

post cash collateral in
respect of letters of credit or indemnities in respect thereof, indemnities,
guarantees, and all other amounts payable thereunder or in respect thereof
(including, in each case, all amounts accruing on or after the commencement of
any Insolvency or Liquidation Proceeding relating to any Credit Party or any
other Person irrespective of whether a claim for all or any portion of such
amounts is allowable or allowed in any Insolvency or Liquidation Proceeding).

 

“Loan Documents”
means the Lender Loan Documents and the Noteholder Documents.

 

 “Maximum Lender Priority Debt Amount” means, as of any date
of determination, (a) (i) the undrawn amount of all credit plus unreimbursed
drawings in respect thereof that are Loan Agreement Secured Obligations as of
such date up to, but not in excess of, plus (ii) the principal amount of
Advances or revolving loans under any Loan Agreement, plus (iii) the
principal amount of the Term Loan or term loans under any Loan Agreement as of
such date up to, provided that all amounts described in clauses (i),
(ii) and (iii) shall not at any time exceed $50,000,000, plus (b)
any premium, interest, fees, attorneys’ fees, costs, charges, expenses,
indemnities, and all other amounts payable under a Loan Agreement or other
Lender Loan Documents or in respect of the Loan Agreement Secured Obligations
(including, without duplication, all guaranties in respect thereof); and
including, for each amount specified in clauses (a), and (b) all amounts
accruing on or after the commencement of any Insolvency or Liquidation
Proceeding relating to any Credit Party or any other Person irrespective of
whether a claim for all or any portion of such amount is allowable or allowed
in any Insolvency or Liquidation Proceeding.

 

“New York Commercial Code”
means the Uniform Commercial Code, as in effect in the State of New York from
time to time.

 

“Noteholders” means
each of the holders of the Notes, together with all successors, assigns and
transferees.

 

“Noteholder Documents”
means the Indenture, the Notes, the other Indenture Collateral Documents, and
such other agreements, instruments and certificates executed and delivered
pursuant to any Indenture Collateral Document at any time or otherwise
evidencing any Indenture Secured Obligations, as the same may be amended,
renewed, extended, supplemented or modified from time to time.

 

“Obligations” means
any principal, interest, penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any
Indebtedness.

 

“Party” means the
Agent and Collateral Agent.

 

9

 

“Person” means any
natural person, corporation, limited liability company, limited partnership,
general partnership, limited liability partnership, joint venture, trust, land
trust, business trust, or other organization, irrespective of whether such
organization is a legal entity, and shall include a government and any agency
or political subdivision thereof.

 

“Proceeds” means (i)
all “proceeds” as defined in Article 9 of the New York Commercial Code with
respect to the Collateral, and (ii) whatever is recoverable or recovered when
Collateral is sold, exchanged, collected, or disposed of, whether voluntarily
or involuntarily.

 

“Real Property” means
any estates or interests in real property and the improvements thereto.

 

“Recovery” has the
meaning set forth in Section 5.03.

 

“Remedies Proceeds”
means Proceeds that arise from or in connection with any remedial action taken
by the Agent or the Collateral Agent with respect to enforcing their rights on
Collateral.

 

“Requirement of Law”
means, with respect to any Person, the common law and all federal, state, local
and foreign laws, rules and regulations, orders, judgments, decrees and other
determinations of any Governmental Authority or arbitrator, applicable to or
binding upon such Person or any of its property or to which such Person or any
of its property is subject.

 

“Term Loans” means
the principal amount outstanding from time to time of all term loans made under
any Loan Agreement.

 

“Underlying Issuer”
means a third Person which is the beneficiary of an L/C Undertaking and which
has issued a letter of credit at the request of the Issuing Lender for the
benefit of the Credit Parties.

 

Rules of Construction. 
Unless the context of this Agreement clearly requires otherwise,
references to the plural include the singular, references to the singular
include the plural, the term “including” is not limiting, and the term “or”
has, except where otherwise indicated, the inclusive meaning represented by the
phrase “and/or.”  The words “hereof,” “herein,”
“hereby,” “hereunder,” and similar terms in this Agreement refer to this
Agreement as a whole and not to any particular provision of this
Agreement.  Article, section,
subsection, clause, schedule, and exhibit references herein are to this Agreement
unless otherwise specified.  Any reference
in this Agreement to any agreement, instrument, or document shall include all
alterations, amendments, changes, extensions, modifications, renewals,
replacements,

 

10

 

substitutions, joinders, and
supplements thereto and thereof, as applicable (subject to any restrictions on
such alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements set forth herein).  Any reference herein to any Person shall be
construed to include such Person’s successors and assigns.

 

ARTICLE
II.

 

LIEN
PRIORITY

 

Section 2.01           Agreement to Subordinate.  Notwithstanding the date, time, method,
manner or order of grant, attachment, or perfection of any Liens granted to the
Collateral Agent, the Trustee, or the Noteholders in respect of all or any
portion of the Collateral or of any Liens granted to the Agent (or any Lender)
in respect of all or any portion of the Collateral, or the order or time of
filing or recordation of any document or instrument for perfecting the Liens in
favor of the Agent (or any Lender) or the Collateral Agent (or the Trustee or
any Noteholder) in any Collateral or any provision of the Uniform Commercial
Code, any other applicable law, the Lender Loan Documents, the Noteholder
Documents or any other circumstance whatsoever, each of the Agent, on behalf of
itself and the Lenders, and the Collateral Agent, on behalf of itself, the
Trustee and the Noteholders, hereby agrees that

 

(a)           any Lien in respect of all or any portion of the
Collateral now or hereafter held by or on behalf of the Collateral Agent, the
Trustee, or any Noteholder that secures all or any portion of the Indenture
Secured Obligations, shall in all respects be junior and subordinate  to all Liens granted to the Agent (or any
Lender) in the Collateral to secure all or any portion of the Loan Agreement
Secured Obligations up to (but not in excess of) the Maximum Lender Priority
Debt Amount; and

 

(b)           any Lien in respect of all or any portion of the
Collateral now or hereafter held by or on behalf of the Agent (or any Lender)
that secures all or any portion of the Loan Agreement Secured Obligations up to
(but not in excess of) the Maximum Lender Priority Debt Amount, shall in all
respects be senior and prior to all Liens granted to the Collateral Agent (or
the Trustee or any Noteholder) in the Collateral to secure all or any portion
of the Indenture Secured Obligations.

 

The Collateral Agent, for
and on behalf of itself, the Trustee and the Noteholders, acknowledges and
agrees that, concurrently herewith, the Agent, for and on behalf of itself and
the Lenders, has been granted Liens upon all of the Collateral in which the
Collateral Agent has been granted Liens and the Collateral Agent hereby
consents thereto.  The Agent, for and on
behalf of itself and the Lenders, acknowledges and agrees that the Collateral
Agent, for the benefit of itself, the Trustee, and the Noteholders, has been
granted Liens upon all of the Collateral in which the Agent has been granted
Liens (other than with respect to the Equity Interests of FSELLC owned by
GNELLC) and the Agent hereby consents thereto. 
The subordination of Liens in the Collateral (up to and not to exceed
the Maximum Lender Priority Debt Amount) by the Collateral Agent, on behalf of
itself, the Trustee, and the Noteholders, in favor of the

 

11

 

Agent herein shall not be
deemed to subordinate the Collateral Agent’s Liens to the Liens of any other
Person.

 

Section 2.02           Waiver of Right to Contest Liens.  Prior to the Discharge of the Loan Agreement
Secured Obligations, the Collateral Agent agrees, on behalf of itself, the
Trustee and the Noteholders, that it and they shall not (and hereby waives, on
behalf of itself, the Trustee and the Noteholders, any right to) take any
action to contest or challenge (or assist or support any other Person in
contesting or challenging), directly or indirectly, whether or not in any
proceeding (including in any Insolvency or Liquidation Proceeding), the
validity, priority, enforceability, or perfection of the Liens of the Agent in
respect of the Collateral.  The
Collateral Agent, for itself, the Trustee, and on behalf of the Noteholders,
agrees that none of the Collateral Agent, the Trustee, or the Noteholders will
take any action that would hinder any exercise of remedies undertaken by the
Agent or any Lender under the Lender Loan Documents in respect of the
Collateral, including any public or private sale, lease, exchange, transfer, or
other disposition of the Collateral, whether by foreclosure or otherwise (other
than as expressly permitted under Section 2.03 and Section 2.04(d)).  The Collateral Agent, for itself, the
Trustee, and on behalf of the Noteholders, hereby waives any and all rights it,
the Trustee, or the Noteholders may have as a junior lien creditor or otherwise
to contest, protest, object to, or interfere with the manner in which the Agent
or any Lender seeks to enforce the Liens in any portion of the Collateral
(other than as expressly permitted under Section 2.03 and Section
2.04(d)), and the parties hereto agree that the terms of this Agreement
shall govern with respect to the Collateral, even if any portion of the Liens
securing the Loan Agreement Secured Obligations are avoided, disallowed, set
aside, or otherwise invalidated in any judicial proceeding or otherwise.  The Agent, for and on behalf of itself and
the Lenders, agrees that it and they shall not (and hereby waives, on behalf of
itself and the Lenders, any right to) take any action to contest or challenge
(or assist or support any other Person in contesting or challenging), directly
or indirectly, whether or not in any proceeding (including in any Insolvency or
Liquidation Proceeding), the validity, priority, enforceability, or perfection
of the Liens of the Collateral Agent in respect of the Collateral.

 

Section 2.03           Collateral Agent Remedies
Standstill.  At any time after the
occurrence and during the continuation of an Event of Default under any of the
Lender Loan Documents, the Agent may send a Collateral Agent Standstill Notice
to the Collateral Agent.  The Agent will
endeavor to forward a copy of the Collateral Agent Standstill to Parent, but
the failure to do so shall not be a breach of this Agreement or cause such
Collateral Agent Standstill Notice to be ineffective.  The Collateral Agent, on behalf of itself, the Trustee, and the
Noteholders, agrees that from and after the date of its receipt of any Collateral
Agent Standstill Notice, none of the Collateral Agent, the Trustee, or any
Noteholder will exercise any of its rights or remedies in respect of the
collection on, set off against, marshalling of, or foreclosure on, the
Collateral or any other right relating to any Collateral (including the exercise
of any voting rights relating to any Capital Stock constituting Collateral)
under the Noteholder Documents, applicable law or

 

12

 

otherwise as a secured
creditor other than as expressly permitted under this Section 2.03 or Section
2.04(d) and will not take or receive any Collateral in connection with the
exercise of any such right or remedy (including recoupment or set-off), whether
under the Noteholder Documents, applicable law, in an Insolvency or Liquidation
Proceeding or otherwise unless and until (a) the Agent, for and on behalf of
itself and the Lenders, has expressly waived or acknowledged the cure of the
applicable Event of Default in writing or the Discharge of the Loan Agreement
Secured Obligations shall have occurred, or (b) 120 days shall have elapsed
from the date of the Collateral Agent’s receipt of such Collateral Agent
Standstill Notice, except with respect to any Collateral as to which the Agent
is diligently exercising its rights or remedies as a secured creditor to effect
the collection, foreclosure, sale, or other realization upon or disposition of
such Collateral.  From and after the
earliest to occur of (i) the Collateral Agent’s receipt of such waiver or cure
notice, (ii) the date on which the Discharge of the Loan Agreement Secured
Obligations shall have occurred, or (iii) the elapsing of such 120th day
period, any of the Collateral Agent, the Trustee, or any Noteholder may
commence to exercise any of its rights and remedies as a secured creditor with
respect to the Collateral under the Noteholder Documents, applicable law or
otherwise (subject to the provisions of this Agreement, including Section
4.02 hereof and except with respect to any such Collateral as to which the
Agent is effecting the collection, foreclosure, sale or other realization upon
or disposition of or is otherwise exercising its secured creditor remedies
diligently and in good faith).  The
Agent may only send one Collateral Agent Standstill Notice in any consecutive
365-day period.  The time period during
which the Collateral Agent is not permitted to exercise rights or remedies
under this section is referred to herein as the “Collateral Agent Standstill
Period”.

 

Section 2.04           Exercise of Rights.

 

(a)           No Other Restrictions.  Except as expressly set forth in this Agreement, each of the
Collateral Agent, the Trustee, the Noteholders, the Agent, and the Lenders
shall have any and all rights and remedies it may have as a creditor under applicable
law, including the rights to exercise all rights and remedies in foreclosure or
otherwise with respect to any of the Collateral; provided, however,
that any such exercise by the Collateral Agent, the Trustee or the Noteholders
and any collection or sale of all or any portion of the Collateral by the
Collateral Agent, the Trustee or the Noteholders, shall be subject to the Liens
of the Agent on the Collateral to the extent provided in Section 2.01
and to the provisions of this Agreement including Section 4.02
hereof.  In exercising rights and
remedies with respect to the Collateral, the Agent and the Lenders may enforce
the provisions of the Lender Loan Documents and exercise remedies thereunder,
all in such order and in such manner as it may determine in the exercise of its
sole discretion.  Such exercise and
enforcement shall include the sale, lease, license, or other disposition of all
or any portion of the Collateral by private or public sale or any other means
permissible under applicable law (it being understood that any such action
shall in all respects comply with the terms of this Agreement and applicable
Requirements of Law); provided that the Agent agrees to provide copies
of

 

13

 

any notices that it is
required to deliver under applicable law to be delivered to the Credit Parties
and to the Collateral Agent; provided, further that the failure
to provide any such copies to the Credit Parties and the Collateral Agent shall
not impair any of the Agent’s rights hereunder.

 

(b)           Collateral Agent’s Release of Liens.  In the event of any such private or public
sale of the Collateral, the Collateral Agent agrees, on behalf of itself, the
Trustee, and the Noteholders, that such sale will be free and clear of the
Liens securing the Indenture Secured Obligations and, if the sale or other
disposition includes the Equity Interests in any Credit Party, agrees to
release the entities whose Equity Interests are sold from the Indenture Secured
Obligations so long as the Agent also releases the entities whose Equity
Interests are sold from all Loan Agreement Secured Obligations.  In furtherance thereof, the Collateral Agent
agrees that it will execute any and all Lien releases or other documents
reasonably requested by the Agent with respect to the Collateral in connection
therewith, so long as the Proceeds from such sale or other disposition of the
Collateral are applied in accordance with the terms of this Agreement.  Following the Discharge of the Loan Agreement
Secured Obligations, (i) the Agent agrees that it will execute Lien releases or
other documents reasonably requested by the Collateral Agent to reflect the
termination of the Agent’s Lien in the Collateral, (ii) the Agent agrees to
cancel or revoke the power of attorney executed by Collateral Agent in favor of
Agent in connection with the deposit account control agreement among the
Parties, Credit Parties and Bank of America, N.A., and (iii) in the event that,
upon foreclosure or otherwise, the Agent becomes owner of or possesses any of the
Collateral, it shall assign to the Collateral Agent the rights of the Agent in
such Collateral and execute any and all releases or other documents that the
Collateral Agent may reasonably request, at the Parent’s expense to effectuate
and evidence such assignment.

 

(c)           No Waiver of Collateral Agent’s Rights.  Subject to Section 3.01, the
Collateral Agent, the Trustee and the Noteholders may exercise, and nothing
herein shall constitute a waiver of, any right they may have at law or equity
to receive notice of, or to commence or join with any creditor in commencing
any Insolvency or Liquidation Proceeding or to join or participate in, any
action or proceeding or other activity described in Section 3.01; provided,
however, that exercise of any such right by the Collateral Agent shall
be subject to all of the terms and conditions of this Agreement, including the
obligation to turn over Collateral and the Remedies Proceeds to the Agent for
application to the Loan Agreement Secured Obligations as provided in Section
4.02.

 

(d)           Collateral Agent’s Rights as an Unsecured Creditor.
The Collateral Agent (i) may make such demands or file such claims in respect
of the Indenture Secured Obligations as may be necessary to prevent the waiver
or bar of such claims under applicable statutes of limitations or other
statutes, court orders or rules of procedure, (ii) may in any Insolvency or
Liquidation Proceeding file a proof of claim or statement of interest with
respect to the Indenture Secured Obligations, (iii) may accelerate the
Indenture Secured Obligations pursuant to the terms and conditions of the
Noteholder

 

14

 

Documents and this
Agreement, and (iv) shall have all rights and remedies it may have as an
unsecured creditor at law or in equity against any Credit Party; provided,
however, that (1) the Collateral Agent shall not take any actions
restricted by this Agreement in respect of the Collateral until the Discharge
of the Loan Agreement Secured Obligations shall have occurred, and (2) any
exercise by the Collateral Agent, the Trustee or the Noteholders of their
rights and remedies and any Remedies Proceeds as result of such actions shall
be subject to the Liens of the Agent and to the provisions of this Agreement,
including Section 4.02. 
Notwithstanding anything to the contrary in this Agreement or any
control agreement or any bailee agreement, so long as the Discharge of the Loan
Agreement Secured Obligations has not occurred Collateral Agent agrees on
behalf of itself, the Trustee and the Noteholders, that it will not issue any
instructions to any bank or securities intermediary regarding the disposition
of funds in any deposit account (as defined in the New York Commercial Code) or
the disposition of financial assets in any securities account (as defined in
the New York Commercial Code) or the disposition of any Capital Stock held by
any bailee without the prior written consent of the Agent.

 

(e)           Rights of Collateral Agent Following the Discharge of
the Loan Agreement Secured Obligations. 
Following the Discharge of the Loan Agreement Secured Obligations, the
other provisions of this Section 2.04 shall apply to the Collateral
Agent, for the benefit of itself, the Trustee and the Noteholders as if it was
the Agent and the Agent, for the benefit of itself and the Lenders, as if it
was the Collateral Agent, mutatis  mutandis.

 

ARTICLE
III.

 

ACTIONS
OF THE PARTIES

 

Section 3.01           Limitation on Certain Actions by
the Collateral Agent. 
Notwithstanding any other provision hereof, during any Collateral Agent
Standstill Period prior to the date that the Discharge of the Loan Agreement
Secured Obligations occurs, the Collateral Agent will not:

 

(a)           commence receivership or foreclosure proceedings against
any Credit Party in respect of any Collateral;

 

(b)           sell, collect, transfer or dispose of any Collateral or
Proceeds; or

 

(c)           notify third party account debtors to make payment in
respect of Collateral directly to it or any of its agents or other Persons
acting on its behalf.

 

Section 3.02           Agent for Perfection.  Each of the Agent, for and on behalf of
itself and the Lenders, and the Collateral Agent, for and on behalf of itself,
the Trustee, and each Noteholder, as applicable, agree to hold all Control
Collateral and Cash Collateral that is part of the Collateral in its respective
possession, custody, or control (or in the possession, custody, or control of
agents or bailees for either, as applicable) as agent for

 

15

 

the other solely for the
purpose of perfecting the security interest granted to each in such Control
Collateral or Cash Collateral subject to the terms and conditions of this Section
3.02.  None of the Agent, the
Lenders, the Collateral Agent, the Trustee, or the Noteholders, as applicable,
shall have any obligation whatsoever to the others to assure that the Control
Collateral is genuine or owned by any Credit Party or any other Person or to
preserve rights or benefits of any Person. 
The duties or responsibilities of the Agent and the Collateral Agent
under this Section 3.02 are and shall be limited solely to holding or
maintaining control of the Control Collateral and the Cash Collateral as agent
for the other for purposes of perfecting the Lien held by the Collateral Agent
or the Agent, as applicable.  The Agent
is not and shall not be deemed to be a fiduciary of any kind for the Collateral
Agent, the Trustee, the Noteholders or any other Person.  The Collateral Agent is not and shall not be
deemed to be a fiduciary of any kind for the Agent, the Lenders or any other
Person.  In the event that any of the
Collateral Agent, the Trustee, or any Noteholder receives any Proceeds or
Collateral in contravention of the Lien Priority or this Agreement, it shall
promptly pay over such Proceeds or Collateral, as applicable, to the Agent in
the same form as received with any necessary endorsements, for application in
accordance with the provisions of Section 4.02 of this Agreement.

 

ARTICLE
IV.

 

NOTICES
AND APPLICATION OF PROCEEDS

 

Section 4.01           Notices of Exercise.  Concurrently with any exercise by the
Collateral Agent of any of its rights and remedies under the Noteholder
Documents following the occurrence of any Indenture Event of Default, the
Collateral Agent shall give notice of such exercise to the Agent and shall
exercise all rights or remedies under the Noteholder Documents consistent with
the terms of this Agreement. 
Concurrently with any exercise by the Agent of any of its rights and remedies
under the Lender Loan Documents following the occurrence of any Event of
Default, the Agent shall give notice of such exercise to the Collateral Agent
and shall only exercise such rights or remedies in a manner consistent with the
terms of this Agreement.

 

Section 4.02           Application of Proceeds.

 

(a)           Revolving Nature of Loan Agreement Secured Obligations.  As long as the Agent is not exercising any
of its remedies as a secured creditor under the Lender Loan Documents and
including during any Collateral Agent Standstill Period, the Agent may apply
any and all of the Proceeds in accordance with the provisions of the Lender
Loan Documents, subject to the provisions of this Agreement, including Sections
3.02 and 4.02 hereof.  The
Collateral Agent, for and on behalf of itself, the Trustee, and the Noteholders,
expressly acknowledges and agrees that (a) any such application of the Proceeds
shall not be considered to be the exercise of remedies under this Agreement;
and (b) all Proceeds received by the Agent in connection therewith may be
applied, reversed, reapplied, credited or reborrowed, in whole or in part, as
Loan

 

16

 

Agreement Secured
Obligations without reducing the Maximum Lender Priority Debt Amount.

 

(b)           Turnover of Cash Collateral After Payment.  All Control Collateral shall be delivered to
the Agent or its designee and all Cash Collateral shall be under the control of
the Agent. Upon the Discharge of the Loan Agreement Secured Obligations, the
Agent shall deliver to the Collateral Agent or execute such documents as
Collateral Agent may reasonably request to cause the Collateral Agent to have
control over any Cash Collateral or Control Collateral still in Agent’s
possession, custody or control in the same form as received, with any necessary
endorsements or as a court of competent jurisdiction may otherwise direct, to
be applied by the Collateral Agent to the Indenture Secured Obligations.  The Remedies Proceeds from any exercise by
the Agent or the Collateral Agent, as applicable, of any of their respective
secured creditor rights or remedies under any of the Loan Documents, under
applicable law, or otherwise with respect to any Collateral or Proceeds, shall
be (a) until the Discharge of the Loan Agreement Secured Obligations, retained
by the Agent or promptly turned over by the Collateral Agent, the Trustee, or
any Noteholder, as the case may be, to the Agent in the same form as received,
with any necessary endorsements, (b) after the Discharge of the Loan Agreement
Secured Obligations and until all Indenture Secured Obligations have been paid
in full in cash, retained by the Collateral Agent or promptly turned over by
the Agent or any Lender, as the case may be, to the Collateral Agent in the
same form as received, with any necessary endorsements, and (c) if there are
any amounts still due or any obligations outstanding to the Agent under the
Lender Loan Documents in excess of the Maximum Lender Priority Debt Amount
after the payment in full in cash of all the obligations under the Indenture and
the termination of the Indenture Secured Obligations, shall be retained by the
Agent or promptly turned over by the Collateral Agent to the Agent in the same
form as received, with any necessary endorsements.

 

(c)           Termination of Security Interest.  Upon the Discharge of the Loan Agreement
Secured Obligations and payment in full of all Indenture Secured Obligations
and the cancellation or termination of the commitments and any other contingent
obligation included in the Loan Agreement Secured Obligations and the Indenture
Secured Obligations, as applicable, the security interest granted under the
Loan Documents shall terminate.  Upon
any such termination, the Agent, or the Collateral Agent, as the case may be,
shall, at Parent’s request and Parent’s sole expense, execute and deliver such
documents reasonably requested to release such Liens or necessary to evidence
such termination in form and substance satisfactory to Agent and Collateral
Agent, without recourse against, or representation or warranty of any kind made
by, Agent or Collateral Agent.

 

(d)           Application of Proceeds.  The Agent and the Collateral Agent hereby agree that  all Collateral and all Remedies Proceeds
received by either of them upon the exercise of any of their secured creditor
rights or remedies under any of the Loan Documents, applicable law, or
otherwise shall be applied,

 

17

 

first, ratably to the payment in full in cash of
costs and expenses of the Agent, the Lenders, or of the Collateral Agent, the
Trustee, and the Noteholders, as applicable, in connection with such exercise,

 

second, to the payment of the Loan Agreement
Secured Obligations in full in cash up to (but not in excess of) the Maximum
Lender Priority Debt Amount,

 

third, to the payment in full in cash of all the
Indenture Secured Obligations,

 

fourth, solely in the event that all Obligations
under the Indenture have been paid in full in cash, to the payment of any Loan
Agreement Secured Obligations in full in cash in excess of the Maximum Lender
Priority Debt Amount, and

 

fifth, solely in the event that all Obligations
under the Indenture have been paid in full in cash, any remaining Remedies
Proceeds shall be payable to the Credit Parties.

 

In exercising remedies,
whether as a secured creditor or otherwise, the Agent shall have no obligation
or liability to the Collateral Agent, the Trustee, or to any Noteholder and the
Collateral Agent shall have no obligation or liability to the Agent or any
Lender regarding the adequacy of any Remedies Proceeds or for any action or
omission save and except solely an action or omission that breaches the express
obligations undertaken by each Party under the terms of this Agreement.

 

Section 4.03           Specific Performance.  Each of the Agent and the Collateral Agent
is hereby authorized to demand specific performance of this Agreement, whether
or not any Subsidiary or any Credit Party shall have complied with any of the
provisions of any of the Loan Documents, at any time when the other shall have
failed to comply with any of the provisions of this Agreement applicable to it;
provided, however, the remedy of specific performance shall not
be available, and the asserting party shall be free to assert any and all legal
defenses it may possess, if such remedy would result in, or otherwise
constitute, a violation of the Employee Retirement Income Security Act of 1974,
as amended.  Each of the Agent and the
Collateral Agent hereby irrevocably waives any defense based on the adequacy of
a remedy at law, which might be asserted as a bar to such remedy of specific
performance.

 

ARTICLE
V.

 

INTERCREDITOR
ACKNOWLEDGEMENTS AND WAIVERS

 

Section 5.01           Notice of Acceptance and Other
Waivers.  (a) All Loan Agreement
Secured Obligations at any time made or incurred by any Credit Party shall be
deemed to have been made or incurred in reliance upon this Agreement, and the
Collateral Agent, on behalf of itself, the Trustee, and the Noteholders, hereby
waives (i) notice of acceptance,

 

18

 

or proof of reliance, by the
Agent or any Lender of this Agreement, and (ii) notice of the existence,
renewal, extension, accrual, creation, or non-payment of all or any part of the
Loan Agreement Secured Obligations. 
None of the Agent, any Lender or any of their respective affiliates,
directors, officers, employees, or agents shall be liable for failure to
demand, collect, or realize upon any of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral or to take any other action whatsoever with regard to the Collateral
or any part thereof, except as specifically provided in this Agreement.  If the Agent or any Lender honors (or fails
to honor) a request by any Credit Party for an extension of credit pursuant to
the Loan Agreement or any of the Lender Loan Documents, whether the Agent or
any Lender has knowledge that the honoring of (or failure to honor) any such
request would constitute a default under the terms of the Indenture or any
Noteholder Document or an act, condition, or event that, with the giving of
notice or the passage of time, or both, would constitute such a default, or if
the Agent (or any Lender) otherwise should exercise any of its contractual
rights or remedies under the Lender Loan Documents (subject to the express
terms and conditions hereof), neither the Agent nor any Lender shall have any
liability whatsoever to the Collateral Agent, the Trustee or any Noteholder as
a result of such action, omission, or exercise (so long as any such exercise
does not breach the express terms and provisions of this Agreement).  The Collateral Agent on behalf of itself and
the Noteholders, acknowledges and agrees that the Agent and the Lenders have
made no express or implied representations or warranty, including without
limitation, with respect to the execution, validity, legality, completeness,
collectability or enforceability of any Lender Loan Documents.  The Agent and the Lenders will be entitled
to manage and supervise their loans and extensions of credit under the Loan
Agreement and other Lender Loan Documents as the Agent and the Lenders may, in
their sole discretion, deem appropriate, and the Agent and the Lenders may
manage their loans and extensions of credit without regard to any rights or
interests that the Collateral Agent, the Trustee, or any of the Noteholders
have in the Collateral or otherwise except as otherwise expressly set forth in
this Agreement.  The Collateral Agent, on
behalf of itself, the Trustee, and the Noteholders, agrees that the Agent and
the Lenders shall not incur any liability as a result of a sale, lease,
license, or other disposition of the Collateral, or any part thereof, pursuant
to the Lender Loan Documents conducted in accordance with mandatory provisions
of applicable law.  Neither the Agent
nor any Lender shall have any duty to the Collateral Agent, the Trustee or any
Noteholder to act or refrain from acting in any manner which allows or results
in the occurrence or continuance of an event of default or default under any
agreement with any Credit Party regardless of any knowledge thereof which Agent
or any Lender may have or be charged with.

 

(b)           All Indenture Secured Obligations at any time made or
incurred by any Credit Party shall be deemed to have been made or incurred in
reliance upon this Agreement, and the Agent, on behalf of itself and the
Lenders, hereby waives (i) notice of acceptance, or proof of reliance, by the
Collateral Agent, the Trustee or any Noteholder of this Agreement, and (ii)
notice of the existence, renewal, extension, accrual, creation, or non-payment
of all or any part of the Indenture Secured Obligations.  None of the

 

19

 

Collateral Agent, the
Trustee, any Noteholder or any of their respective affiliates, directors,
officers, employees, or agents shall be liable for failure to demand, collect,
or realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral or to take
any other action whatsoever with regard to the Collateral or any part thereof,
except as specifically provided in this Agreement.  If the Collateral Agent, the Trustee or any Noteholder honors (or
fails to honor) a request by any Credit Party for an extension of credit
pursuant to the Indenture or any of the Indenture Collateral Documents, whether
the Collateral Agent, the Trustee or any Noteholder has knowledge that the
honoring of (or failure to honor) any such request would constitute a default
under the terms of the Loan Agreement or any Lender Loan Document or an act,
condition, or event that, with the giving of notice or the passage of time, or
both, would constitute such a default, or if the Collateral Agent, the Trustee or
any Noteholder otherwise should exercise any of their contractual rights or
remedies under the Indenture Collateral Documents (subject to the express terms
and conditions hereof), none of the Collateral Agent, the Trustee or any
Noteholder shall have any liability whatsoever to the Agent or any Lender as a
result of such action, omission, or exercise (so long as any such exercise does
not breach the express terms and provisions of this Agreement). The Agent, on
behalf of itself and the Lenders, acknowledges and agrees that the Collateral
Agent, the Trustee and the Noteholders have made no express or implied
representations or warranty, including, without limitation, with respect to the
execution, validity, legality, completeness, collectibility or enforceability
of any of the Noteholder Documents.  The
Noteholders will be entitled to manage and supervise their respective
extensions of credit to any Credit Party under the Indenture and the other
Noteholder Documents as the Noteholders may, in their sole discretion, deem
appropriate, and the Noteholders may manage their extensions of credit without
regard to any rights or interests that the Agent or any of the Lenders have in
the Collateral or otherwise, except as otherwise expressly set forth in this
Agreement.  The Agent, on behalf of
itself, and the Lenders, agrees that the Collateral Agent, the Trustee and the
Noteholders shall not incur any liability as a result of a sale, lease,
license, or other disposition of the Collateral, or any part thereof, pursuant
to the Noteholder Documents conducted in accordance with mandatory provisions
of applicable law.  None of the
Collateral Agent, the Trustee or any Noteholder shall have any duty to the
Agent or any of the Lenders to act or refrain from acting in any manner which
allows or results in the occurrence or continuance of an event of default or
default under any agreement with any Credit Party regardless of any knowledge
thereof which  Collateral Agent or any
Noteholder may have or be charged with.

 

Section 5.02           Modifications to Lender Loan
Documents and Noteholder Documents.

 

(a)           The Collateral Agent, on behalf of itself, the Trustee,
and the Noteholders, hereby agrees that, without affecting the obligations of
the Collateral Agent, the Trustee and the Noteholders hereunder, the Agent, on
behalf of itself and the Lenders, may, at any time and from time to time, in
its sole discretion without the consent of or

 

20

 

notice to the Collateral
Agent, the Trustee or any Noteholder (except to the extent such notice or
consent is required pursuant to the express provisions of this Agreement), and
without incurring any liability to the Collateral Agent, the Trustee or any
Noteholder or impairing or releasing the subordination provided for herein,
amend, restate, supplement, replace, refinance, extend, consolidate,
restructure, or otherwise modify any of the Lender Loan Documents in any manner
whatsoever, including, to

 

(i)            change the manner, place, time, or
terms of payment of, or renew or alter, all or any of the Loan Agreement
Secured Obligations or otherwise amend, restate, supplement, or otherwise
modify in any manner, or grant any waiver or release with respect to, all or
any part of the Loan Agreement Secured Obligations or any of the Lender Loan
Documents,

 

(ii)           retain or obtain a Lien on any
property of any Person to secure any of the Loan Agreement Secured Obligations,
and in that connection to enter into any additional Lender Loan Documents;
provided, however, that the Collateral Agent for its benefit, the Trustee and
the Noteholders retain or obtain a Lien on such Property of such Person (other
than the Equity Interests of FSELLC owned by GNELLC) to secure any of the
Indenture Secured Obligations,

 

(iii)          amend, or grant any waiver, compromise
or release with respect to, or consent to any departure from, any guaranty or
other obligations of any Person obligated in any manner under or in respect of
the Loan Agreement Secured Obligations,

 

(iv)          release its Lien on any Collateral or
other property,

 

(v)           exercise or refrain from exercising
any rights against any Credit Party or any other Person in accordance with the
terms of this Agreement and any mandatory applicable Requirements of Law,

 

(vi)          retain or obtain the primary or
secondary obligation of any other Person with respect to any of the Loan
Agreement Secured Obligations, and

 

(vii)         otherwise manage and supervise the Loan
Agreement Secured Obligations as the Agent shall deem appropriate;

 

provided, however, that no amendment, waiver
or consent shall release the Lien of the Collateral Agent securing the
Indenture Secured Obligations except to the extent permitted by the Indenture
or this Agreement.

 

(b)           The Agent, on behalf of itself and the Lenders, hereby
agrees that, the Collateral Agent, on behalf of itself, the Trustee, and the
Noteholders may, at any

 

21

 

time and from time to time,
in its sole discretion without the consent of or notice to the Agent or any
Lender) (except to the extent such notice or consent is required pursuant to
the express provisions of this Agreement), and without incurring any liability
to the Agent or any Lender amend, restate, supplement, replace, refinance,
extend, consolidate, restructure, or otherwise modify the Noteholder Documents
in any manner whatsoever; provided, however, that in no event
shall the Collateral Agent, the Trustee, or any Noteholder obtain a Lien on any
assets of any Credit Party not subject to a Lien in favor of the Agent (or any
Lender) unless (i) the Agent, for the benefit of itself and the Lenders, also
obtains a Lien on such assets or (ii) the Agent declines in a writing to the
Collateral Agent to obtain a Lien on such assets.

 

(c)           The Agent, on behalf of itself and the Lenders, also
agrees that Collateral Agent and the Noteholders shall have no liability (other
than pursuant to the terms hereof and mandatory applicable Requirements of Law)
to the Agent or any Lender, and, subject to the terms hereof and mandatory applicable
Requirements of Law, the Agent, on behalf of itself and the Lenders, hereby
waives any claim against the Collateral Agent, the Trustee or any Noteholder,
arising out of any and all actions which the Collateral Agent, the Trustee or
Noteholders may take or permit or omit to take with respect to:  (i) the Noteholders Documents, (ii) the
collection of the Indenture Secured Obligations, (iii) the foreclosure upon, or
sale, liquidation or other disposition of, the Collateral pursuant to Section
2.03, or (iv) the release of any Lien in respect of any Collateral except
for (x) claims for gross negligence or willful misconduct or (y) claims for
breach of this Agreement.  The Agent, on
behalf of itself and the Lenders, agrees that the Collateral Agent, the Noteholders,
and the Trustee have no duty to them in respect of the maintenance or
preservation of the Collateral, the Indenture Secured Obligations or otherwise
other than as expressly set forth herein.

 

(d)           The Collateral Agent, on behalf of itself, the Trustee and
the Noteholders, also agrees that the Agent and the Lenders shall have no
liability (other than pursuant to the terms hereof and mandatory applicable
Requirements of Law) to the Collateral Agent, the Trustee or any Noteholder,
and, subject to the terms hereof and mandatory applicable Requirements of Law,
the Collateral Agent, on behalf of itself, the Trustee and the Noteholders,
hereby waives any claim against the Agent or any Lender, arising out of any and
all actions which the Agent or any Lender may take or permit or omit to take
with respect to:  (i) the Lender Loan
Documents, (ii) the collection of the Loan Agreement Secured Obligations, (iii)
the foreclosure upon, or sale, liquidation or other disposition of, the
Collateral pursuant to Section 2.03, or (iv) the release of any Lien in respect
of any Collateral except for (x) claims for gross negligence or willful
misconduct or (ii) claims for breach of this Agreement.  The Collateral Agent, on behalf of itself,
the Trustee and the Noteholders, agrees that the Agent, and the Lenders have no
duty to them in respect of the maintenance or preservation of the Collateral,
the Loan Agreement Secured Obligations or otherwise other than as expressly set
forth herein.

 

22

 

Section 5.03           Reinstatement and Continuation of
Agreement.  If the Agent or any
Lender is required in any Insolvency or Liquidation Proceeding or otherwise to
turn over or otherwise pay to the estate of any Credit Party or any other
Person any amount (a “Recovery”), then the Loan Agreement Secured
Obligations shall be reinstated to the extent of such Recovery.  If this Agreement shall have been terminated
prior to such Recovery, this Agreement shall be reinstated in full force and
effect, and such prior termination shall not diminish, release, discharge,
impair, or otherwise affect the obligations of the parties hereto from such
date of reinstatement.  All rights,
interests, agreements, and obligations of the Agent, the Lenders, the
Collateral Agent, the Trustee, and the Noteholders under this Agreement shall
remain in full force and effect and shall continue irrespective of the
commencement of, or any discharge, confirmation, conversion, or dismissal of,
any Insolvency or Liquidation Proceeding by or against any Credit Party or any
other circumstance which otherwise might constitute a defense available to, or
a discharge of, any Credit Party in respect of the Loan Documents.  No priority or right of the Agent, any
Lender, the Collateral Agent, the Trustee or any Noteholder shall at any time
be prejudiced or impaired in any way by any act or failure to act on the part
of any Credit Party or by the noncompliance by any Person with the terms,
provisions, or covenants of any Loan Document, regardless of any knowledge
thereof which the Agent, any Lender, the Collateral Agent, the Trustee or any
Noteholder may have.

 

Section 5.04           Receipt of Payments.  The Collateral Agent, the Trustee, or any
Noteholder shall be permitted to receive scheduled payments of principal and
interest so long as (a) such payment by any Credit Party is made in accordance
with the terms of the Noteholder Documents existing as of the date of this
Agreement and (b) such receipt of scheduled payments by the Collateral Agent,
the Trustee or the Noteholders does not otherwise contravene this Agreement.

 

ARTICLE
VI.

 

INSOLVENCY
PROCEEDINGS

 

Section 6.01           DIP Financing.  If any Credit Party shall be subject to any
Insolvency or Liquidation Proceeding and the Agent, for and on behalf of itself
and the Lenders, shall desire, prior to the Discharge of the Loan Agreement
Secured Obligations, to permit the use of cash collateral or to permit any
Credit Party to obtain financing under Section 363 or Section 364 of the
Bankruptcy Code or any similar provision under the law applicable to any
Insolvency or Liquidation Proceeding (“DIP Financing”) to be secured by
all or any portion of the Collateral, then the Collateral Agent, on behalf of
itself, the Trustee, and the Noteholders, agrees that it will raise no
objection to such use of cash collateral or DIP Financing and will not request
adequate protection or any other relief in connection with its or their
interest in any such Collateral except to the extent specified in Section
6.02.  To the extent the Liens
securing the Loan Agreement Secured Obligations are subordinated or pari passu with such DIP Financing, the
Collateral

 

23

 

Agent, for and on behalf of
itself, the Trustee, and the Noteholders, hereby agrees that its Liens on the
Collateral shall be subordinated to such DIP Financing (and all obligations
relating thereto) upon the terms and conditions specified in this Agreement in
each case under this Section 6.01 to the extent such DIP Financing and
Obligations constitute Loan Agreement Secured Obligations.  Until the Discharge of the Loan Agreement
Secured Obligations has occurred, the Collateral Agent, on behalf of itself,
the Trustee, and the Noteholders, agrees that none of them shall seek relief
from the automatic stay or any other stay in any Insolvency or Liquidation
Proceeding in respect of the Collateral and will not provide or offer to
provide any DIP Financing secured by a Lien senior to or pari passu with the Liens securing the
Loan Agreement Secured Obligations, in each case unless the Agent otherwise has
provided its express written consent.

 

Section 6.02           No Contest.  The Collateral Agent, on behalf of itself,
the Trustee, and the Noteholders, agrees that, prior to the Discharge of the
Loan Agreement Secured Obligations, none of them shall contest (or support any
other Person contesting) (a) any request by the Agent, for and on behalf of
itself and the Lenders, for adequate protection, or (b) any objection by the
Agent, for and on behalf of itself and the Lenders, to any motion, relief,
action, or proceeding based on the Agent claiming that their interests in the
Collateral are not adequately protected or any other similar request under any
law applicable to an Insolvency or Liquidation Proceeding.  Notwithstanding the foregoing, in any
Insolvency or Liquidation Proceeding, if the Agent, for and on behalf of itself
and the Lenders, is granted adequate protection in the form of additional
collateral in connection with any DIP Financing or use of cash collateral under
Section 363 or Section 364 of the Bankruptcy Code or any similar law applicable
to any Insolvency or Liquidation Proceeding, then the Collateral Agent, on
behalf of itself, the Trustee, and any of the Noteholders, may seek or request
adequate protection in the form of a Lien on such additional collateral, which
Lien hereby is and shall be deemed to be subordinated to the Liens securing the
Loan Agreement Secured Obligations up to (but not in excess of) the Maximum
Lender Priority Debt Amount and such DIP Financing (and all obligations
relating thereto) on the same basis as the Lien Priority.  In the event the Collateral Agent, on behalf
of itself, the Trustee, and the Noteholders, seeks or requests adequate
protection and such adequate protection is granted in the form of Liens in
respect of additional collateral, then the Collateral Agent, on behalf of
itself, the Trustee, and each of the Noteholders, agrees that the Agent also
shall be granted a senior Lien on such additional collateral as security for
the Loan Agreement Secured Obligations (and for any such DIP Financing), that
any Lien on such additional collateral securing the Indenture Secured
Obligations shall be subordinated to the Liens in respect of such additional
collateral securing the Loan Agreement Secured Obligations, and any such DIP
Financing and any other Liens granted to the Agent as adequate protection on
the same basis as the other Liens securing the Indenture Secured Obligations
are subordinated to the Loan Agreement Secured Obligations under this Agreement
up to the Maximum Lender Priority Debt Amount. 
All such Liens granted to the Agent or to the Collateral Agent in
respect of such additional collateral shall be subject to the Lien
Priority.  Nothing contained herein
shall prohibit or in any way limit the Agent, prior to

 

24

 

the Discharge of the Loan
Agreement Secured Obligations, from objecting in any Insolvency or Liquidation
Proceeding or otherwise to any action taken by the Collateral Agent, the
Trustee or any of the Noteholders, including the seeking by the Collateral
Agent, the Trustee or any Noteholder of adequate protection or the asserting by
the Collateral Agent, the Trustee or any Noteholder of any of its rights and
remedies under the Noteholder Documents or otherwise.

 

Section 6.03           [Intentionally Omitted.]

 

Section 6.04           Enforceability.  The provisions of this Agreement are
intended to be and shall be enforceable under Section 510 of the Bankruptcy Code.  The Agent, on behalf of itself and the
Lenders, and the Collateral Agent, on behalf of itself, the Trustee, and the
Noteholders, each agrees that all distributions that the Agent, the Lenders,
the Collateral Agent, the Trustee, or any Noteholder receives in any Insolvency
or Liquidation Proceeding on account of the Collateral shall be held in trust
by such Person and turned over to the Agent for application in accordance with Section
4.02 of this Agreement.  To the
extent that any amounts received by the Agent, the Lenders, the Collateral
Agent, the Trustee, or any Noteholder are paid over in connection with this
provision, the obligations owed by the Credit Parties to such Person will be
deemed to be reinstated to the extent of the amounts so paid over.

 

Section 6.05           Certain Noteholder Rights.  Each of the Collateral Agent, the Trustee
and each Noteholder shall retain the right to vote and otherwise act in any
Insolvency or Liquidation Proceeding (including, without limitation, the right
to vote to accept or reject any plan of reorganization); provided that
no such Person shall (x) vote with respect to any such plan of reorganization
or take any other action in any way to contest (i) the priority, enforceability
or validity of any Liens granted to or for the benefit of the Agent, (ii) the
relative rights and duties of the holders of the Loan Agreement Secured
Obligations established in the Lender Loan Documents and this Agreement with
respect to such Liens, (iii) the enforceability of the Loan Agreement or this
Agreement or (y) otherwise fail to comply with the requirement of Sections 2.02
and 3.01 of this Agreement.

 

ARTICLE
VII.

 

MISCELLANEOUS

 

Section 7.01           Rights of Subrogation.  The Collateral Agent agrees that no payment
or distribution to the Agent pursuant to the provisions of this Agreement shall
entitle the Collateral Agent, the Trustee, or any Noteholder to exercise any
rights of subrogation in respect thereof until the Discharge of the Loan
Agreement Secured Obligations shall have occurred.  Following the Discharge of the Loan Agreement Secured
Obligations, the Agent agrees to execute such documents, agreements, and
instruments as the Collateral Agent, the Trustee or any Noteholder may
reasonably request to evidence the transfer by subrogation to any such Person
of an interest in the

 

25

 

Loan Agreement Secured
Obligations resulting from payments or distributions to the Agent by such
Person, so long as all costs and expenses (including all reasonable legal fees
and disbursements) incurred in connection therewith by the Agent are paid by
such Person upon request for payment thereof.

 

Section 7.02           Further Assurances.  The Parties will, at the sole expense of the
Credit Parties and at any time and from time to time, promptly execute and
deliver all further instruments and documents, and take all further action,
that may be necessary or desirable, or that either Party may reasonably
request, in order to protect any right or interest granted or purported to be
granted hereby or to enable the Agent or the Collateral Agent to exercise and
enforce its rights and remedies hereunder; provided, however,
that no Party shall be required to pay over any payment or distribution,
execute any instruments or documents, or take any other action referred to in
this Section 7.02 to the extent that such action would contravene any
law, order or other legal requirement, and in the event of a controversy or
dispute, such Party may interplead any payment or distribution in any court of
competent jurisdiction, without further responsibility in respect of such
payment or distribution under this Section 7.02.

 

Section 7.03           Representations.  The Agent represents and warrants to the
Collateral Agent that it has the requisite power and authority under the
Original Loan Agreement to enter into, execute, deliver, and carry out the
terms of this Agreement on behalf of itself and the Lenders.  The Collateral Agent represents and warrants
to the Agent that it has the requisite power and authority under the Indenture
to enter into, execute, deliver, and carry out the terms of this Agreement on
behalf of itself, the Trustee, and the Noteholders.

 

Section 7.04           Amendments.  No amendment or waiver of any provision of
this Agreement nor consent to any departure by any Party hereto shall be
effective unless it is in a written agreement executed by the Collateral Agent
and the Agent, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

 

Section 7.05           Addresses for Notices.  All demands, notices and other
communications provided for hereunder shall be in writing and, if to the
Collateral Agent, mailed or sent by telecopy or delivered to it, addressed to
it as follows:

 

Wells Fargo Bank, National
Association

Corporate Trust

Sixth Street and Marquette Avenue

MAC N9303-120

Minneapolis, Minnesota 55479

Attention:  Jane Y. Schweiger

 

Facsimile:  (612) 667-9825

 

26

 

With a copy to:

 

Greenberg Traurig, LLP

200 Campus Drive

P.O. Box 677

Florham Park, New Jersey 07932

Attention:  Jeffrey M. Rosenthal

Facsimile:  (973) 301-8410

 

and if to the Agent, mailed,
sent by telecopy or delivered to it, addressed to it as follows:

 

Wells Fargo Foothill, Inc.

2450 Colorado Avenue, Suite 3000 West

Santa Monica, California  90404

Attention:  Specialty Finance Division
Manager

Facsimile:  (310) 453-7442

 

With a copy to:

 

Paul, Hastings, Janofsky
& Walker LLP

515 South Flower Street, 25th Floor

Los Angeles, California  90071

Attention:  John Francis Hilson, Esq.

Facsimile:  (213) 627-0705

 

and if to Parent, sent by
telecopy or delivered to it, addressed to it as follows:

 

Poster  Financial Group, Inc.

2960 W. Sahara Ave.

Las Vegas, Nevada 89102

Attn:  Thomas C. Breitling

Fax No.  (702) 367-6143

 

with a copy to:

 

Skadden, Arps, Slate,
Meagher & Flom LLP

Four Times Square

New York, New York 10036

Attn:  Peter Neckles, Esq.

Fax No.  (212) 735-2000

 

or as to any Party at such
other address as shall be designated by such Party in a written notice to the
other Parties complying as to delivery with the terms of this Section 7.05.  All such demands, notices and other
communications shall be effective, when mailed,

 

27

 

two business days after
deposit in the mails, postage prepaid, when sent by telecopy, when receipt is
acknowledged by the receiving telecopy equipment (or at the opening of the next
business day if receipt is after normal business hours), or when delivered, as
the case may be, addressed as aforesaid.

 

Section 7.06           No Waiver, Remedies.  No failure on the part of any Party to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

Section 7.07           Continuing Agreement, Transfer of
Secured Obligations.  This Agreement
is a continuing agreement and shall (i) remain in full force and effect until
the Discharge of the Loan Agreement Secured Obligations shall have occurred and
the Indenture Secured Obligations shall have been paid in full, (ii) be binding
upon the Parties and their successors and assigns, and (iii) inure to the
benefit of and be enforceable by the Parties and their respective successors,
transferees and assigns.  Without
limiting the generality of the foregoing clause (iii), the Agent, any Lender,
the Collateral Agent, the Trustee, or any Noteholder may assign or otherwise
transfer all or any portion of the Loan Agreement Secured Obligations or the
Indenture Secured Obligations, as applicable, to any other Person (other than
any Credit Party or any Affiliate of, and any Subsidiary of, any Credit Party)
in the manner contemplated in the Lender Loan Documents and the Noteholder
Documents, and such other Person shall thereupon become vested with all the
rights and obligations in respect thereof granted to the Agent, any Lender, the
Collateral Agent, the Trustee, or any Noteholder, as the case may be, herein or
otherwise.

 

Section 7.08           Governing Law: Entire Agreement.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York except as
otherwise preempted by applicable federal law. 
This Agreement constitutes the entire agreement and understanding among
the Parties with respect to the subject matter hereof and supersedes any prior
agreements, written or oral, with respect thereto.

 

Section 7.09           Counterparts.  This Agreement maybe executed in any number
of counterparts, and it is not necessary that the signatures of all Parties be
contained on any one counterpart hereof, each counterpart will be deemed to be
an original, and all together shall constitute one and the same document.

 

Section 7.10           No Third Party Beneficiary.  This Agreement is solely for the benefit of
the Parties (and their permitted assignees). 
No other Person (including any Credit Party or any Subsidiary or
Affiliate of any Credit Party) shall be deemed to be a third party beneficiary
of this Agreement.  Nothing in this
Agreement shall be deemed to permit the Credit Parties to take any action
otherwise prohibited by the Loan Documents or shall be deemed to operate as a
waiver by the Agent or the Collateral Agent with respect to any action
otherwise prohibited by the Loan Documents.

 

28

 

Section 7.11           Headings.  The headings of the articles and sections of
this Agreement are inserted for purposes of convenience only and shall not be
construed to affect the meaning or construction of any of the provisions
hereof.

 

Section 7.12           Severability.  If any of the provisions in this Agreement
shall, for any reason, be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision of this Agreement and shall not invalidate the Lien Priority or
any other priority set forth in this Agreement.

 

Section 7.13           Collateral Agent Status.  Nothing in this Agreement shall be construed
to operate as a waiver by the Collateral Agent, with respect to any Credit
Party or any of its Subsidiaries, the Trustee, or any Noteholder, of the benefit
of any exculpatory rights, privileges, immunities, indemnities, or reliance
rights contained in any Noteholder Document, all of which rights, privileges,
immunities and indemnities, the Parties hereto agree are incorporated by
reference herein.  For all purposes of
this Agreement, the Collateral Agent may (a) rely in good faith, as to matters
of fact, on any representation of fact believed by the Collateral Agent to be
true (without any duty of investigation) and that is contained in a written
certificate of any authorized representative of any Credit Party or of the
Agent, and (b) assume in good faith (without any duty of investigation), and
rely upon, the genuineness, due authority, validity, and accuracy of any
certificate, instrument, notice, or other document believed by it in good faith
to be genuine and presented by the proper person.  The Credit Parties and Agent expressly acknowledge that the
subordination and related agreements set forth herein by the Collateral Agent
are made solely in its capacity as the Collateral Agent under the Indenture and
the other Noteholder Documents and are not made by the Collateral Agent in its
individual commercial capacity.

 

Section 7.14           Agent Status.  Nothing in this Agreement shall be construed
to operate as a waiver by the Agent, with respect to any Credit Party or any
subsidiary of any Credit Party, the Agent, or any Lender, of the benefit of any
exculpatory rights, privileges, immunities, indemnities, or reliance rights
contained in any Lender Loan Document, all of which rights, privileges,
immunities and indemnities, the Parties hereto agree are incorporated by
reference herein.  For all purposes of
this Agreement, the Agent may (a) rely in good faith, as to matters of fact, on
any representation of fact believed by the Agent to be true (without any duty
of investigation) and that is contained in a written certificate of any
authorized representative of any Credit Party or of the Collateral Agent, and
(b) assume in good faith (without any duty of investigation), and rely upon,
the genuineness, due authority, validity, and accuracy of any certificate,
instrument, notice, or other document believed by it in good faith to be
genuine and presented by the proper Person. 
The Credit Parties and the Collateral Agent expressly acknowledge that
the subordination and related agreements set forth herein by the Agent are made
solely in its capacity as Agent under the Loan Agreement and the other Lender
Loan Documents and are not made by the Agent in its individual commercial capacity.

 

29

 

Section 7.15           Acknowledgment.  Each Credit Party hereby acknowledges that
it has received a copy of this Agreement and consents thereto, and agrees to
recognize all rights granted thereby to the Agent and the Collateral Agent and
will not do any act or perform any obligation which is not in accordance with
the agreements set forth in this Agreement. 
Each Credit Party further acknowledges and agrees that it is not an
intended beneficiary or third party beneficiary under this Agreement.

 

Section 7.16           VENUE; JURY TRIAL WAIVER.

 

(a)           THE PARTIES HERETO AGREE THAT ALL ACTIONS OR PROCEEDINGS
ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN
THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW
YORK; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE AGENT’S OPTION,
IN THE COURTS OF ANY JURISDICTION WHERE THE AGENT ELECTS TO BRING SUCH ACTION
OR WHERE SUCH  COLLATERAL OR OTHER
PROPERTY MAY BE FOUND.  EACH PARTY
HERETO WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY
HAVE TO ASSERT THE DOCTRINE OF FORUM  NON  CONVENIENS OR TO
OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS
SECTION 7.16.

 

(b)           EACH PARTY HERETO HEREBY WAIVES ITS RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR
STATUTORY CLAIMS.  EACH PARTY HERETO
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND IT KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

Section 7.17           Conflicts. The Agent and
Collateral Agent agree that as between themselves in the event of any actual,
irreconcilable conflict between the terms and provisions of the Lender Loan
Documents and the Noteholder Documents, the terms and provisions of this
Agreement shall control.

 

Section 7.18           Intercreditor Agreement.  This Agreement is the Intercreditor
Agreement referred to in the Indenture and the Original Loan Agreement.  If this Agreement or all or any portion of
either Party’s rights or obligations hereunder are assigned or otherwise
transferred to any other Person or if the Loan Agreement is otherwise
refinanced or replaced with another Person, such other Person shall execute

 

30

 

and deliver an agreement
containing terms substantially identical to those contained in this Agreement.

 

[Signature
page to follow.]

 

31

 

IN WITNESS WHEREOF, the
Agent, the Collateral Agent and each Credit Party has caused this Agreement to
be duly executed and delivered as of the date first above written.

 

	
  AGENT:

  	
  WELLS
  FARGO FOOTHILL, INC.,

  a California
  corporation 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rhonda Noell

  	
   

  
	
   

  	
   

  	
  Name: Rhonda Noell

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

 

 

	
  COLLATERAL
  AGENT:

  	
  WELLS
  FARGO BANK, NATIONAL

  ASSOCIATION, solely
  in its capacity as

  Collateral Agent (and not individually)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Jane Schweiger

  	
   

  
	
   

  	
   

  	
  Name: Jane Y. Schweiger

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

	
  CREDIT
  PARTIES:

  	
  POSTER FINANCIAL GROUP, INC.,

  a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas Breitling

  	
   

  
	
   

  	
   

  	
  Name:
  Thomas Breitling

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
  GNL, CORP., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas Breitling

  	
   

  
	
   

  	
   

  	
  Name:
  Thomas Breitling

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
  GNLV, CORP., a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Thomas Breitling

  	
   

  
	
   

  	
   

  	
  Name:
  Thomas Breitling

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  
	
   

  	
  GOLDEN NUGGET EXPERIENCE, LLC,  

  a Nevada limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GNLV,
  CORP.,

  	
   

  
	
   

  	
   

  	
  as
  sole member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joanne Beckett

  	
   

  
	
   

  	
   

  	
  Name:
  Joanne Beckett

  
	
   

  	
   

  	
  Title:
  VP & General CounselExhibit 10.7

 

DEED OF TRUST,
ASSIGNMENT OF

RENTS AND LEASES, FIXTURE FILING AND SECURITY AGREEMENT

(Arizona)

 

THIS DEED OF
TRUST, ASSIGNMENT OF RENTS AND LEASES, FIXTURE FILING AND SECURITY AGREEMENT
(as amended, supplemented or otherwise modified from time to time, this “Deed of Trust”) is dated as of January 23,
2004 and is made by and from GNL, CORP.,
a Nevada corporation (“Grantor”),
whose address is 2300 South Casino Drive, Laughlin, NV 89028 to TRANSNATION TITLE INSURANCE COMPANY, a
Nevada corporation (“Trustee”),
with an address at 1316 Stockton Hill Road, Kingman, Arizona 86401 for the
benefit of WELLS FARGO BANK, N.A.,
a national banking association organized under the laws of the United States of
America, in its capacity as Collateral Agent for the Holders and the Indenture
Trustee (the “Agent”) pursuant to
the Indenture (as defined below), having an address at Corporate Trust
Services, Sixth Street and Marquette Avenue, MAC N9303-120, Minneapolis, MN
55479, Attn: Jane Y. Schweiger (Agent, together with its successors and
assigns, is referred to herein as  “Beneficiary”).

 

RECITALS:

 

WHEREAS, Grantor
is the owner of a fee estate in the real property described in Exhibit A
attached hereto.

 

WHEREAS, Poster
Financial Group, Inc. (referred to herein as the context requires as “Parent”), the Guarantors under the
Indenture, (including Parent’s subsidiary, Grantor) and HSBC Bank USA, as
trustee (the “Indenture Trustee”), have entered into that certain Indenture
dated as of December 3, 2003 (as amended, supplemented or otherwise
modified heretofore or hereinafter from time to time, the “Indenture”), which Indenture
provides for the issuance of certain 8 3/4% Senior Secured Notes due 2011 (the
Initial Notes together with all Additional Notes and Exchange Notes, the “Notes”).  The Indenture requires Grantor to grant this
Deed of Trust to Trustee for the benefit of the Agent to secure the due and
punctual payment of all principal and interest under the Notes and the
Guarantees and the performance of all other obligations of Parent and the
Guarantors to the Holders or the Indenture Trustee.

 

WHEREAS, Grantor
is receiving a good and valuable benefit, the sufficiency and receipt of which
is hereby acknowledged, from the issuance of the Notes secured hereby.

 

 

ARTICLE 1

DEFINITIONS

 

Section 1.1                                   Definitions.  All capitalized terms used herein without
definition shall have the respective meanings ascribed to them in the
Indenture.  As used herein, the
following terms shall have the following meanings:

 

(a)                                  “Event of Default”:
shall have the meaning ascribed to such term in Article 4 hereof.

 

(b)                                 “Indebtedness”:
All obligations of Grantor, Parent and any of the other Guarantors to (i)
Beneficiary, (ii) Indenture Trustee, (iii) the Holders or (iv) HSBC Bank USA,
as agent and as securities intermediary (“Pledge Agent”) under the Pledge Agreement
dated as of the date hereof by and between Parent, Indenture Trustee and Pledge
Agent (“Pledge
Agreement”), including, without limitation: the due and punctual
payment of principal of and interest and Additional Interest, if any, on the
Notes when and as the same shall be due and payable, whether on an Interest
Payment Date, at maturity, by acceleration, repurchase, redemption or
otherwise, and interest on the overdue principal of and interest on the Notes
and the performance of all other obligations (including without limitation
fees, costs, expenses, charges and indemnification obligations) of the Parent
and the Guarantors, including Grantor, to the Holders or the Indenture Trustee
or Beneficiary or Pledge Agent under the Indenture, the Notes, the Guarantees,
the Pledge Agreement and any other Indebtedness Documents, according to the
terms hereunder or thereunder.

 

(c)                                  “Obligations”:
All of the agreements, covenants, conditions, warranties, representations and
other obligations of Grantor, Parent and the other Guarantors under the
Indenture, the Notes, the Guarantees, and any other Indebtedness Documents, and
any other “Obligations,” as defined under the Indenture.

 

(d)                                 “Trust Property”:  All of Grantor’s interest in (1) the
fee estate in the real property described in Exhibit A attached hereto,
together with all existing and future appurtenances, privileges, easements,
franchises, herediments and tenements of the real property (including all
minerals, oil, gas and other hydrocarbons and associated substances) which may
be in, under or produced from any part of the real property, all air, water or
other interests or development rights and credits and any greater estate
therein as hereafter may be acquired by Grantor (the “Land”), (2) all improvements
now leased, owned or hereafter acquired by Grantor, now or at any time
situated, placed or constructed upon the Land (the ”Improvements”; the Land and
Improvements are collectively referred to herein as the “Premises”), (3) the Operating
Assets and all materials, supplies, equipment, apparatus and other items of
personal property now owned or hereafter acquired by Grantor and now or
hereafter located on the Premises (excluding, however, the Excluded Assets)
(the “Operational
Property”), (4)

 

2

 

all materials, supplies, equipment, apparatus and
other items of personal property now owned or hereafter acquired by Grantor and
now or hereafter attached to or installed in any of the Improvements or the
Land so as to constitute fixtures (excluding, however, the Excluded Assets) and
water, gas, electrical, telephone, storm and sanitary sewer facilities and all
other utilities whether or not situated in easements (the “Fixtures”), (5) all
reserves, escrows or impounds and deposit accounts maintained by Grantor with
respect to the Trust Property (excluding, however, the Excluded Assets) (the “Deposit
Accounts”), (6) all existing and future leases, subleases, licenses,
concessions, occupancy agreements or other agreements (written or oral, now or
at any time in effect), granted by Grantor or a direct or indirect lessee or
sublessee of Grantor, which grant to any Person a possessory interest in, or
the right to use or occupy, all or any part of the Trust Property, whether made
before or after the filing by or against Grantor of any petition for relief
under the Bankruptcy Code, together with any extension, renewal or replacement
of the same and together with all related security and other deposits (the “Leases”),
(7) all of the rents, additional rents, revenues, royalties, income,
proceeds, profits, early termination fees or payments, security and other types
of deposits, and other benefits paid or payable by parties to the Leases for
using, leasing, licensing, possessing, operating from, residing in, selling or
otherwise enjoying the Trust Property or any part thereof, whether paid or
accruing before or after the filing by or against Grantor of any petition for
relief under the Bankruptcy Code (the “Rents”), (8) all other agreements,
such as construction contracts, architects’ agreements, engineers’ contracts,
utility contracts, maintenance agreements, management agreements, service
contracts, listing agreements, guaranties, warranties, permits (including the
Permits), licenses, certificates and entitlements in any way relating to the
construction, use, occupancy, operation, maintenance, enjoyment or ownership of
the Trust Property (the “Property Agreements”), (9) all rights,
privileges, tenements, hereditaments, rights-of-way, easements, appendages and
appurtenances appertaining to the foregoing, (10) all property tax
refunds, utility refunds and rebates, earned or received at any time (the “Tax Refunds”),
(11) all accessions, replacements and substitutions for any of the foregoing
and all proceeds thereof and all rents, fees, charges, accounts, issues,
profits, revenues and payments for or from the use or occupancy of the guest
rooms, banquet facilities, ballrooms, spas, salons, pools, restaurants, meeting
rooms and other guest facilities at or in the Hotel (excluding, however, the
Excluded Assets) (the “Proceeds”), (12) all insurance policies,
unearned premiums therefor and proceeds from such policies covering any of the
above property now or hereafter acquired by Grantor (the “Insurance”), (13) all of
Grantor’s right, title and interest in and to any awards, damages,
remunerations, reimbursements, settlements or compensation heretofore made or
hereafter to be made by any governmental authority pertaining to the Land,
Improvements or Fixtures (the “Condemnation Awards”), (14) all of
Grantor’s rights to appear and defend any action or proceeding brought with
respect to the Trust Property and to commence any action or proceeding to
protect the interest of Beneficiary in the Trust Property, and (15) all rights,
powers, privileges, options and other benefits of Grantor under the Leases,
including, without limitation, the immediate and continuing right to claim for,
receive, collect and

 

3

 

receive all Rents payable or receivable under the
Leases or pursuant thereto (and to apply the same to the payment of the
Indebtedness and the Obligations), and to do all other things which Grantor or
any lessor is or may become entitled to do under the Leases.  As used in this Deed of Trust, the term
“Trust Property” shall mean all or, where the context permits or requires, any
portion of the above or any interest therein. 
THE TERM “TRUST PROPERTY” IS INTENDED TO EXCLUDE ALL ITEMS OF PERSONAL
PROPERTY IN WHICH BENEFICIARY HAS OBTAINED AND/OR PERFECTED A SECURITY INTEREST
UNDER SEPARATE INSTRUMENTS.

 

(e)                                  “Permitted Liens”: shall have the meaning
ascribed to such term in the Indenture, to the extent the same do not
materially impair the normal operation of the Hotel in accordance with all
Legal Requirements and all Permits.

 

(f)                                    “UCC”:  The Uniform Commercial Code of the state in
which the Land is located or, if the creation, perfection and enforcement of
any security interest herein granted is governed by the laws of a state other
than the state in which the Land is located, then, as to the matter in
question, the Uniform Commercial Code in effect in that state.

 

(g)                                 “CFC”:  a controlled foreign corporation (as that
term is defined in the Internal Revenue Code of 1986, as in effect from time to
time and any successor statute).

 

(h)                                 “Excluded
Assets”:  (a)  any
Investment Property of Parent, Grantor or any other Guarantor constituting Stock
of such Person’s Subsidiaries that are CFCs, solely to the extent that such
Investment Property is in excess of 65% of the Stock of such CFC, (b) any
agreements, permits, or licenses (including the Permits) solely in the event
and to the extent that a grant of a Lien on such license, contract, or
agreement is prohibited by law or results in a breach or termination of the
terms of, or constitutes a default under, or termination of any such license,
contract, or agreement (other than to the extent that any such term would be
rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of
the Uniform Commercial Code (or any successor provision or provisions) of any
relevant jurisdiction) and, in any event, immediately upon the ineffectiveness,
lapse or termination of any such terms or default under such license, contract
or agreement, the Excluded Assets shall not include, and Grantor shall be
deemed to have granted a security interest in, all such licenses, contracts, or
agreements as if such terms or defaults had never been in effect; provided,
however, that Excluded Assets shall not include (and, accordingly, Trust
Property shall include) any and all proceeds of any of such assets; provided,
further, that any agreement, permit, license, or the like qualifying as an
Excluded Asset under clause (b) above no longer shall constitute an
Excluded Asset (and instead shall constitute Trust Property) from and after
such time as the lessor, licensor, or other party to such agreement, permit,
license, or the like consents to the grant of a Lien in favor of Beneficiary in
such agreement, permit, license,

 

4

 

or the like or the prohibition against granting a Lien
therein in favor of Beneficiary shall cease to be effective, (c) the Government
Treasury Strips, and (d) the Stock of Parent’s Subsidiaries that are licensed
or registered under the Gaming Laws and are “Pledged Collateral” pursuant to
the Stock Pledge Agreement entered into as of the date hereof by and between
Parent and the other Pledgors pursuant thereto and Beneficiary.

 

(i)                                     “FF&E
Financing Arrangements”: 
Only to the extent the same constitutes Permitted Debt under the
Indenture, an agreement which creates a Lien upon any after-acquired tangible
personal property and/or other items constituting operating assets, which are
financed, purchased or leased for the purposes of the operation of the Hotel.

 

(j)                                     “Government
Treasury Strips”:  those
certain United States Treasury securities in an amount not to exceed $3,089,752
currently maintained by Mirage Resorts, Incorporated in a restricted account
for the benefit of GNLV, Corp. as a reserve in accordance with Nevada Gaming
Commission Regulation 5.115, pursuant to the order of the Nevada Gaming
Commission dated August 27, 1993, and to be maintained after the Closing
Date in a restricted account of GNLV, Corp. as a reserve pursuant to Gaming
Laws, securing periodic payments due to a progressive slot machine jackpot
winner at GNLV, Corp., which jackpot totaled $3,089,752 payable in 20 equal
annual installments of $154,488, without interest, commencing
September 24, 1988 and ending September 24, 2007.

 

(k)                                  “Hotel”:  That portion of the Improvements being a
hotel.

 

(l)                                     “Indebtedness
Documents”:  The Indenture,
the Notes, the Guarantees, the Collateral Documents, including this Deed of
Trust, the Pledge Agreement and any other documents executed and delivered in
connection with the issuance of the Notes and the Guarantees.

 

(m)                               “Investment
Property”:  investment
property (as that term is defined in the UCC), and any and all supporting
obligations in respect thereof.

 

(n)                                 “Legal
Requirements”:  All laws,
statutes, codes, acts, ordinances, orders, judgments, decrees, injunctions,
rules, regulations, permits (including the Permits), licenses, authorizations,
directions and requirements of all governments, departments, commissions,
boards, courts, authorities, agencies (including Liquor Authorities) and all
officials and officers thereof, applicable to the Trust Property and the use
thereof, including Liquor Laws.

 

(o)                                 “Liquor
Authorities”:  the Department
of the Treasury Bureau of Alcohol, Tobacco and Firearms, and any agency,
authority, board, bureau, commission, department, office or instrumentality of
any nature whatsoever of the United States, the State of Arizona, or any
foreign government, any other state, or any province

 

5

 

or any city or other political subdivision, whether
now or hereafter existing, or any officer or official thereof, including any
other agency with authority to regulate the sale or distribution of alcoholic
beverages.

 

(p)                                 “Liquor Laws”:  the statutes and ordinances regarding the
sale and distribution of alcoholic beverages enforced by the Liquor Authorities
and the rules and regulations of the Liquor Authorities.

 

(q)                                 “Liquor
License”:  any license,
permit, registration, qualification or other approval required to sell,
dispense or distribute alcoholic beverages under the Liquor Laws.

 

(r)                                    “Operating Assets”:  (a) bookings for the use of guest rooms,
banquet facilities, ballrooms, spas, salons, pools, restaurants, meeting rooms
and other guest facilities at the Hotel or at any other Improvements now or
hereafter located on any of the Land; (b) contract rights, trademarks, trade
names, service marks, logos, copyrights, warranties and other types of
intangible personal property, and any and all goodwill associated with the same
relating to the ownership or operation of the Hotel or of any other Improvements
now or hereafter located on any of the Land, including, without limitation, (1)
telephone and other communication numbers, (2) all software licensing
agreements as are required to operate computer software systems at the Hotel or
at any other Improvements now or hereafter located on any of the Land and books
and records relating to the software programs and (3) lessee’s interest under
leases of Tangible Personal Property; (c) Tangible Personal Property; (d)
drawings, designs, plans and specifications prepared by architects, engineers,
interior designers, landscape designers and any other professionals or
consultants for the design, development, construction and/or improvement of the
Hotel, or for any other development of the Land, as amended from time to time;
(e) customer lists utilized in the operation of the Hotel including lists of
transient guests and restaurant and bar patrons; and (f) all of the goodwill in
connection with the foregoing Operating Assets and in connection with the
operation of the Hotel.

 

(s)                                  “Permits”:  the Liquor Licenses and any other license,
franchise, authorization, statement of compliance, certificate of operation,
certificate of occupancy and permit required for the lawful ownership,
operation, occupancy and use of all or any material portion of the
Improvements, in accordance with applicable Legal Requirements.

 

(t)                                    “Stock”:  all shares, options, warrants, limited
liability, membership or other interests, participations, or other equivalents
(regardless of how designated) of or in a Person, whether voting or nonvoting,
including common stock, preferred stock, or any other “equity security” (as
such term is defined in Rule 3a11-1 of the General Rules and Regulations
promulgated by the United States Securities and

 

6

 

Exchange Commission and any successor thereto under
the Securities Exchange Act of 1934, as in effect from time to time).

 

(u)                                 “Superior
Deed of Trust”:  that certain
Deed of Trust, Assignment of Rents and Leases, Fixture Filing and Security
Agreement by and from Grantor to Trustee for the benefit of Wells Fargo
Foothill, Inc. as arranger, administrative agent and documentation agent of the
same date as this Deed of Trust securing the Trust Property.

 

(v)                                 “Tangible
Personal Property”:  the
following items of personal property now or hereafter acquired by Grantor
(directly or by way of lease) which are located on, or to be located on, or
which are in use or held in reserve storage for future use in connection with
the operations of the Hotel or any other Improvements, which are on hand or on
order whether stored on-site or off-site:

 

(i)                           furniture,
furnishings, machinery, appliances, fixtures and fittings and other articles of
tangible personal property;

 

(ii)                        china,
glassware, linens, kitchen utensils, silverware and uniforms; and

 

(iii)                     consumables
and operating supplies of every kind and nature, including accounting supplies,
guest supplies, forms, printing, stationery, food and beverage stock, bar
supplies and laundry supplies;

 

ARTICLE 2

GRANT

 

Section 2.1                                   Grant.  For and in consideration of good and
valuable consideration, the receipt and sufficiency whereof are hereby
acknowledged, and in order to secure the indebtedness and other obligations of
Grantor herein set forth, to secure the full and timely payment of the
Indebtedness and the full and timely performance of the Obligations, Grantor
GRANTS, BARGAINS, ASSIGNS, SELLS, WARRANTS and CONVEYS, to Trustee the Trust
Property, subject, however, to the Permitted Liens, TO HAVE AND TO HOLD
the Trust Property and all parts, rights and appurtenances thereof to Trustee,
IN TRUST, WITH POWER OF SALE, and Grantor does hereby bind itself, its
successors and assigns to WARRANT AND FOREVER DEFEND the title to the Trust
Property unto Trustee.

 

TO HAVE AND TO HOLD the Trust Property, together with all and singular
the parts, rights, privileges, hereditaments, and appurtenances thereto in any
ways belonging or appertaining, to the use, benefit, and behoof of Trustee, its
successors

 

7

 

and assigns, in trust for the benefit of Beneficiary,
forever.  Notwithstanding anything to
the contrary contained in the immediately preceding sentence, Grantor hereby
agrees and acknowledges that this Deed of Trust is intended to secure future
advances; accordingly, this Deed of Trust shall not be canceled except pursuant
to the terms and conditions set forth in the Indenture.

 

ARTICLE 3

WARRANTIES, REPRESENTATIONS AND
COVENANTS

 

Grantor warrants,
represents and covenants to Beneficiary as follows:

 

Section 3.1                                   Title
to Trust Property and Lien of this Instrument.  Grantor (i) has good and indefeasible title
to the real property described in Exhibit A attached hereto, in fee
simple, free and clear of any liens, claims or interests, except the Permitted
Liens (ii) has good and indefeasible title or holds valid leasehold interests
in the remainder of the Trust Property, in each case free and clear of any
liens, claims or interests, except the Permitted Liens and (iii) has full power
and lawful authority to encumber the Trust Property in the manner and form set
forth in this Deed of Trust.  This Deed
of Trust creates valid, enforceable liens and security interests against the
Trust Property, second in priority to the lien of the Superior Deed of Trust
only.

 

Section 3.2                                   Priority.  Grantor shall preserve and protect the
second lien and security interest status of this Deed of Trust (and, following
satisfaction and discharge of the Superior Deed of Trust, the first lien and
security interest status of this Deed of Trust).  If Grantor has knowledge of any lien or security interest, other
than the Permitted Liens, that is asserted against the Trust Property, Grantor
shall promptly, and at its expense, (a) give Beneficiary a detailed written
notice of such lien or security interest (including origin, amount and other
terms), and (b) pay the underlying claim in full or take such other action so
as to cause it to be released or contest the same and provide a bond or other security
satisfactory to Beneficiary, and act in compliance with any other requirements
of the Indenture.

 

Section 3.3                                   Payment
and Performance.  Grantor shall
pay or cause Parent or the other Guarantors to pay the Indebtedness when due
under the Notes and the other Indebtedness Documents and shall perform or cause
Parent or the other Guarantors to perform the Obligations in full when they are
required to be performed.

 

Section 3.4                                   Replacement
of Fixtures.  Grantor shall not,
without the prior written consent of Beneficiary, permit any of the Fixtures to
be removed at any time from the Land or Improvements, unless the removed item
is removed temporarily for maintenance and repair or, if removed permanently,
is obsolete and is replaced by an article of equal or better suitability
and value, owned by Grantor subject to the liens and security interests of this
Deed of Trust and the other Indebtedness Documents, and free

 

8

 

and clear of any other lien or security interest
except such as may be permitted under the Indenture or first approved in
writing by Beneficiary.

 

Section 3.5                                   Inspection.  Grantor shall permit Beneficiary and its
agents, representatives and employees to inspect the Trust Property and all
books and records of Grantor located thereon, and to conduct such environmental
and engineering studies as Beneficiary may require.  Provided that no Event of Default exists, all such testing and
investigation shall be conducted at reasonable times and upon reasonable prior
notice to Grantor.  Beneficiary shall
restore the Trust Property to at least as good condition as it was in
immediately prior to such testing and investigation.

 

Section 3.6                                   Other
Covenants.  All of the covenants
in the Indenture are incorporated herein by reference and, together with
covenants in this Article 3, shall, to the extent applicable, be
covenants running with the land.

 

Section 3.7                                   Condemnation Awards and Insurance Proceeds.

 

(a)                                  Condemnation
Awards.  Grantor, immediately upon
obtaining knowledge of the institution of any proceedings for the condemnation
of the Trust Property or any portion thereof, will notify Beneficiary of the
pendency of such proceedings.  Except as
set forth in the Indenture, Beneficiary may participate in any such proceedings
and Grantor from time to time will deliver to Beneficiary all instruments
requested by it to permit such participation. 
Grantor assigns all awards and compensation to which it is entitled for
any condemnation or other taking, or any purchase in lieu thereof, to
Beneficiary and authorizes Beneficiary to collect and receive such awards and
compensation and to give proper receipts and acquittances therefor, subject to
the terms of the Indenture. Grantor hereby waives all rights to such awards and
compensation described in the foregoing sentence.  Grantor, upon request by Beneficiary, shall make, execute and
deliver any and all instruments requested for the purpose of confirming the
assignment of the aforesaid awards and compensation to Beneficiary free and
clear of any liens, charges or encumbrances of any kind or nature whatsoever.

 

(b)                                 Insurance
Proceeds.  Without limitation to the
requirements of Section 4.23 of the Indenture, Grantor shall maintain such
insurance coverage as is customarily carried by owners and operators of
comparable hotels in Mohave County, Arizona and in no event less than that
required under the Superior Deed of Trust. 
Grantor assigns to Beneficiary all proceeds of any insurance policies
insuring against loss or damage to the Trust Property.  Except as set forth in the Indenture,
Grantor authorizes Beneficiary to collect and receive such proceeds and
authorizes and directs the issuer of each of such insurance policies to make
payment for all such losses directly to Beneficiary, instead of to Grantor and
Beneficiary jointly.  In the event that
the issuer of such insurance policy fails to disburse directly or solely to
Beneficiary but disburses instead either solely to Grantor or to Grantor and
Beneficiary, jointly, Grantor shall

 

9

 

immediately endorse and transfer such proceeds to
Beneficiary.  Upon Grantor’s failure to
do so, Beneficiary may execute such endorsements or transfers from and in the
name of Grantor, and Grantor hereby irrevocably appoints Beneficiary as
Grantor’s agent and attorney-in-fact so to do.

 

(c)                                  Beneficiary
acknowledges that, notwithstanding the foregoing provisions of this
Section 3.7, Grantor has granted certain rights in and to condemnation
awards and insurance proceeds pursuant to the Superior Deed of Trust and,
subject to the terms of the Intercreditor Agreement, the provisions of this
Section 3.7 are entered into subject to such rights.

 

Section 3.8                                   Costs
of Defending and Upholding the Lien. 
If any action or proceeding is commenced to which action or proceeding
Trustee or Beneficiary is made a party or in which it becomes necessary for
Trustee or Beneficiary to defend or uphold the lien of this Deed of Trust,
including any extensions, renewals, amendments or modifications thereof,
Grantor shall, on demand, reimburse Trustee and Beneficiary for all expenses
(including, without limitation, reasonable attorneys’ fees and reasonable
appellate attorneys’ fees) incurred by Trustee or Beneficiary in any such action
or proceeding and all such expenses shall be secured by this Deed of
Trust.  In any action or proceeding to
foreclose this Deed of Trust or to recover or collect the Indebtedness, the
provisions of law relating to the recovering of costs, disbursements and
allowances shall prevail unaffected by this covenant.

 

Section 3.9                                   TRANSFER OF THE SECURED PROPERTY.  EXCEPT AS EXPRESSLY PERMITTED PURSUANT TO
THE TERMS OF THE INDENTURE, GRANTOR SHALL NOT SELL, ASSIGN, TRANSFER, PLEDGE,
ENCUMBER, CREATE A SECURITY INTEREST IN, LEASE, OR OTHERWISE HYPOTHECATE,
ALL OR ANY PORTION OF THE TRUST PROPERTY WITHOUT THE PRIOR WRITTEN CONSENT OF
BENEFICIARY.  THE CONSENT BY BENEFICIARY
TO ANY SALE, ASSIGNMENT, TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY
INTEREST IN, LEASE, OR OTHER HYPOTHECATION OF, ANY PORTION OF THE TRUST
PROPERTY SHALL NOT BE DEEMED TO CONSTITUTE A NOVATION OR A CONSENT TO ANY
FURTHER SALE, ASSIGNMENT, TRANSFER, PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY
INTEREST IN, LEASE, OR OTHER HYPOTHECATION, OR TO WAIVE THE RIGHT OF
BENEFICIARY, INDENTURE TRUSTEE AND/OR HOLDERS, AT THEIR OPTION, TO DECLARE THE
INDEBTEDNESS SECURED HEREBY IMMEDIATELY DUE AND PAYABLE, WITHOUT NOTICE TO
GRANTOR OR ANY OTHER PERSON OR ENTITY, UPON ANY SUCH SALE, ASSIGNMENT, TRANSFER,
PLEDGE, ENCUMBRANCE, CREATION OF A SECURITY INTEREST, LEASE, OR OTHER
HYPOTHECATION TO WHICH BENEFICIARY SHALL NOT HAVE CONSENTED.

 

10

 

Section 3.10                            Security Deposits.  To the extent required by law, or after an
Event of Default has occurred and during its continuance, if required by
Beneficiary, all security deposits of tenants of the Trust Property shall be
treated as trust funds not to be commingled with any other funds of Grantor.  Within twenty (20) days after request by
Beneficiary, Grantor shall furnish satisfactory evidence of compliance with
this Section 3.10, as necessary, together with a statement of all
security deposits deposited by the tenants and copies of all Leases not
theretofore delivered to Beneficiary, as requested thereby, certified by
Grantor.

 

Section 3.11                            Lease Representations, Warranties and
Covenants.  Grantor
hereby represents, warrants and covenants as follows:

 

(a)                                  as
of the date of this Deed of Trust, no Leases are in effect and no Leases have
been entered into that are due to come into effect at a later date;

 

(b)                                 Grantor
shall, upon request, furnish Beneficiary with executed copies of all Leases
hereafter entered into and all amendments, modifications and supplements thereto;

 

(c)                                  Grantor
shall (i)  observe and perform in all material respects all the
obligations imposed upon the lessor under the Leases and shall not do or permit
to be done anything to materially impair the value of the Leases as security
for the Indebtedness and the Obligations; (ii) promptly send copies to
Beneficiary of all notices of default which Grantor shall send or receive
thereunder; (iii) enforce all the material terms, covenants and conditions
contained in the Leases upon the part of the lessee thereunder to be observed
or performed, (iv) not collect any of the Rents more than one (1) month in
advance, except as may be specifically required in the applicable Lease;
(v) not execute any other assignment of the lessor’s interest in the Leases
or the Rents; and (vi) use reasonable efforts to obtain and deliver to
Beneficiary, upon request, tenant estoppel certificates from each tenant at the
Premises in the form required under the applicable Lease, or if no such form is
provided, in form and substance reasonably satisfactory to Beneficiary; and

 

(d)                                 Grantor
shall not, except to the extent Grantor has received the prior written consent
of Beneficiary, (A) alter, modify or change the terms of any Lease in any
material respect; (B) consent to any assignment of or subletting under any
Lease not in accordance with its terms; and (C) cancel or terminate any
Lease or accept a surrender thereof, unless such tenant is in default
thereunder and a new Lease has been entered into on substantially the same terms
or more favorable terms as the canceled Lease.

 

11

 

Section 3.12                            Additional
Lease Covenants.

 

(a)                                  Grantor
shall give Beneficiary and Trustee not less than thirty (30) days prior written
notice of the date on which Grantor shall apply to any court or other
governmental authority for authority and permission to reject any of the Leases
in the event that there shall be filed by or against Grantor any petition,
action or proceeding under the Bankruptcy Code or under any other similar
federal or state law now or hereafter in effect and if Grantor determines to
reject any of the Leases.  Beneficiary
and Trustee shall have the right, but not the obligation, to serve upon Grantor
within such thirty (30) day period a notice stating that (i) Beneficiary
or Trustee demands that Grantor assume and assign any of the Leases to
Beneficiary or Trustee subject to and in accordance with the Bankruptcy Code
and (ii) Beneficiary covenants to cure or provide reasonably adequate
assurance thereof with respect to all defaults reasonably susceptible of being
cured by Beneficiary or Trustee and of future performance under the applicable
Leases.  If Beneficiary or Trustee
serves upon Grantor the notice described above, Grantor shall not seek to
reject any of the Leases and shall comply with the demand provided for in
clause (i) above within fifteen (15) days after the notice shall have been
given by Beneficiary and Trustee.

 

(b)                                 During
the continuance of an Event of Default, Beneficiary and Trustee shall have the
right, but not the obligation, (i) to perform and comply with all obligations
of Grantor under the Leases without relying on any grace period provided
therein, (ii) to do and take, without any obligation to do so, such action as
Beneficiary or Trustee deems necessary or desirable to prevent or cure any
default by Grantor under any of the Leases, including, without limitation, any
act, deed, matter or thing whatsoever that Grantor may do in order to cure a
default under the applicable Leases and (iii) to enter in and upon the Land or
any part thereof to such extent and as often as Beneficiary or Trustee  deems
necessary or desirable in order to prevent or cure any default of Grantor under
the Leases.  Grantor shall on demand,
reimburse Beneficiary for all advances made and expenses incurred by
Beneficiary in exercising the foregoing rights (including, without limitation,
reasonable attorneys’ fees and disbursements), together with interest thereon
at three percentage points above the “prime rate” announced by Wells Fargo
Bank, N.A. at its principal office in San Francisco from time to time (the “Applicable
Rate”) from the date that an advance is made or expense is incurred,
to and including the date the same is paid and such monies so expended by
Beneficiary with interest thereon shall be secured by this Deed of Trust.  Grantor shall, within five (5) days after
written request is made therefor by Beneficiary or Trustee, execute and deliver
to Beneficiary or to any party designated by Beneficiary or Trustee, such
further instruments, agreements, powers, assignments, conveyances or the like
as may be reasonably necessary to complete or perfect the interest, rights or
powers of Beneficiary pursuant to this paragraph or as may otherwise be required
by Beneficiary  or Trustee.

 

(c)                                  During
the continuance of an Event of Default, in the event of any arbitration under
or pursuant to the Leases in which Beneficiary elects to participate, Grantor
hereby irrevocably appoints Beneficiary and Trustee as its true and 

 

12

 

lawful attorneys-in-fact (which appointment shall be
deemed coupled with an interest) to exercise, during the continuance of an
Event of Default, all right, title and interest of Grantor in connection with
such arbitration, including, without limitation, the right to appoint
arbitrators and to conduct arbitration proceedings on behalf of Grantor and
Beneficiary.  All costs and expenses
incurred by Beneficiary and Trustee in connection with such arbitration and the
settlement thereof shall be borne solely by Grantor, including, without
limitation, attorneys’ fees and disbursements. 
Nothing contained in this paragraph shall obligate Beneficiary or
Trustee to participate in any such arbitration.

 

Section 3.13                            Estoppel Certificates.  Grantor shall use commercially reasonable
efforts to obtain and deliver to Beneficiary within twenty (20) days after
written demand by Beneficiary, an estoppel certificate from the applicable
lessee under the Leases setting forth (i) the name of the lessee and the
lessor thereunder, (ii) that the applicable Lease is in full force and
effect and has not been modified or, if it has been modified, the date of each
modification (together with copies of each such modification), (iii) the
basic rent payable under the applicable Lease, (iv) the date to which all
rental charges have been paid by the lessee under the applicable Lease,
(v) whether a notice of default has been received by the fee owner or
lessor which has not been cured, and if such notice has been received, the date
it was received and the nature of the default, (vi) whether there are any
alleged defaults of the lessee under the applicable Lease and, if there are,
setting forth the nature thereof in reasonable detail, and (vii) if the
lessee under the applicable Lease shall be in default, the default.

 

Section 3.14                            FF&E
Financing Arrangements.  Grantor
shall comply with the terms of all FF&E Financing Arrangements.  If Grantor has acquired or hereafter
acquires Operational Property or Fixtures subject to any FF&E Financing
Arrangement, or becomes lessee under a lease for any of the same, the Lien of
this Deed of Trust on such acquired or leased assets shall be subordinate to
the Lien of such FF&E Financing Arrangement and Beneficiary, at Grantor’s
cost, shall execute and deliver to Grantor such documents as Grantor may
reasonably request evidencing such subordination.

 

Section 3.15                            Maintenance
of Premises.  Grantor shall
maintain and keep the Premises in such good repair, working order and condition
and shall make or cause to be made all such needful and proper repairs,
renewals and replacements thereto consistent with the standards of comparable
hotels in Mohave County, Arizona. 
Grantor shall occupy and continuously operate the Hotel and keep the
Hotel supplied with Tangible Personal Property, all in a manner consistent with
the standards of comparable hotels in Mohave County, Arizona.

 

Section 3.16                            Alterations.  All alterations to the Premises (a) shall be
carried out in conformity with the Indebtedness Documents, Legal Requirements
and insurance requirements in a good and workmanlike manner and prosecuted with
reasonable dispatch subject to force majeure; (b) shall be undertaken only with

 

13

 

appropriate workers compensation insurance covering
workers engaged in such alterations and appropriate commercial general
liability insurance covering all hazards resulting from such alterations; and
(c) affecting the structure of any of the Improvements, the building systems or
any material portion of the Improvements, (i) shall be carried out under the
supervision of a reputable architect with no less than ten (10) years’
experience in the design and construction of comparable hotels in Mohave
County, Arizona, (ii) shall be notified to Beneficiary prior to the
commencement thereof and, upon Beneficiary’s request, Grantor shall deliver to
Beneficiary copies of all drawings, plans, specifications and cost estimates
therefor prepared and approved in writing by said architect and accompanied by
a certificate of such architect stating that such drawings, plans and
specifications are in compliance with all Legal Requirements and insurance
requirements, and (iii) shall not be commenced until Grantor has furnished to
Beneficiary, at Grantor’s sole cost and expense, a surety bond or bonds,
covering performance, labor and material payments with respect to the work,
naming Beneficiary as obligee (or as co-obligee with the beneficiary under the
Superior Deed of Trust and Grantor), issued by a responsible surety company,
authorized to do business in the State of Arizona, in a form generally and
customarily used by such surety in an amount equal to the estimated cost of
construction of the work, guaranteeing the performance and completion of such
construction, substantially in conformity with the plans and specifications and
within a reasonable time subject to force majeure free and clear of all Liens,
claims and liabilities for the cost of such alterations (if such surety bond is
unobtainable, Grantor shall provide equivalent security in the form of cash,
letter of credit or other guarantee). 
No alterations of any kind shall be made which shall change the primary
use of the Hotel from its use as a hotel facility.

 

ARTICLE 4

DEFAULT

 

Section 4.1                                   Events
of Default.  The occurrence of
any of the following events shall constitute an event of default under this
Deed of Trust (each an “Event of Default”):

 

(a)                                  an
“Event of Default” (as such term is defined in the Indenture) shall have
occurred;

 

(b)                                 the
revocation, termination, suspension or other cessation of effectiveness of (i)
any Liquor License which results in the cessation or suspension of the serving
of alcohol at the Hotel or a material portion thereof for more than 90
consecutive days or (ii) any other Permit which results in the cessation or
suspension of all or a substantial portion of the operations of the Hotel for
more than 90 consecutive days, in either case, other than as a result of an Asset
Sale permitted under the Indenture or any voluntary relinquishment that is, in
the judgment of the Board of Directors of Parent, both desirable in the conduct
of the business of Parent and its Restricted

 

14

 

Subsidiaries, taken as a whole, and not
disadvantageous in any material respect to the Holders;

 

(c)                                  Grantor’s
breach of any of the covenants set forth in this Deed of Trust; or

 

(d)                                 if
any misstatement or misrepresentation exists now or hereafter in any warranty
or representation set forth in Article 3 hereof.

 

ARTICLE 5

REMEDIES AND FORECLOSURE

 

Section 5.1                                   Remedies.  If an Event of Default exists, Beneficiary
may, at Beneficiary’s election and by or through Trustee or otherwise, exercise
any or all of the following rights, remedies and recourses:

 

(a)                                  To
the extent permitted under the Indenture and in accordance with the provisions
thereof, declare the Indebtedness to be immediately due and payable, without
further notice, presentment, protest, notice of intent to accelerate, notice of
acceleration, demand or action of any nature whatsoever (each of which hereby
is expressly waived by Grantor), whereupon the same shall become immediately
due and payable.

 

(b)                                 Notify
all tenants of the Premises and all others obligated on leases of any part of
the Premises that all rents and other sums owing on leases have been assigned
to Beneficiary and are to be paid directly to Beneficiary, and to enforce
payment of all obligations owing on leases, by suit, ejectment, cancellation,
releasing, reletting or otherwise, whether or not Beneficiary has taken
possession of the Premises, and to exercise whatever rights and remedies
Beneficiary may have under any assignment of rents and leases.

 

(c)                                  As
and to the extent permitted by law, enter the Trust Property, either personally
or by its agents, nominees or attorneys, and take exclusive possession thereof
and thereupon, Beneficiary may (i) use, operate, manage, control, insure,
maintain, repair, restore and otherwise deal with all and every part of the
Premises and conduct business thereat; (ii) complete any construction on the
Premises in such manner and form as Beneficiary deems advisable in the
reasonable exercise of its judgment; (iii) exercise all rights and power of Grantor
with respect to the Premises, whether in the name of Grantor, 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
earnings, revenues, rents, issues, profits and other income of the Premises and
every part thereof, which rights shall not be in limitation of Beneficiary’s
rights under any assignment of rents and leases securing the Indebtedness; and
(iv)  apply the receipts from the Premises to the payment of the
Indebtedness, after deducting

 

15

 

therefrom all expenses (including attorneys’ fees)
incurred in connection with the aforesaid operations and all amounts necessary
to pay the taxes, assessments, insurance and other charges in connection with
the Trust Property, as well as just and reasonable compensation for the
services of Beneficiary, its counsel, agents and employees.

 

(d)                                 Hold,
lease, develop, manage, operate or otherwise use the Trust Property upon such
terms and conditions as Beneficiary may deem reasonable under the circumstances
(making such repairs, alterations, additions and improvements and taking other
actions, from time to time, as Beneficiary deems necessary or desirable), and
apply all Rents and other amounts collected by Trustee in connection therewith
in accordance with the provisions of Section 5.7 hereof.

 

(e)                                  Require
Grantor to assemble any collateral under the UCC and make it available to
Beneficiary, at Grantor’s sole risk and expense, at a place or places to be
designated by Beneficiary, in its sole discretion.

 

(f)                                    Institute
proceedings for the complete foreclosure of this Deed of Trust, either by
judicial action or by power of sale, in which case the Trust Property may be
sold for cash or credit in accordance with applicable law in one or more
parcels as Beneficiary may determine. 
Except as otherwise required by applicable law, with respect to any
notices required or permitted under the UCC, Grantor agrees that ten (10) days’
prior written notice shall be deemed commercially reasonable.  At any such sale by virtue of any judicial
proceedings, power of sale, or any other legal right, remedy or recourse, the
title to and right of possession of any such property shall pass to the
purchaser thereof, and to the fullest extent permitted by law, Grantor shall be
completely and irrevocably divested of all of its right, title, interest,
claim, equity, equity of redemption, and demand whatsoever, either at law or in
equity, in and to the property sold and such sale shall be a perpetual bar both
at law and in equity against Grantor, and against all other Persons claiming or
to claim the property sold or any part thereof, by, through or under Grantor.  Beneficiary, the Indenture Trustee or any of
the Holders may be a purchaser at such sale. 
If Beneficiary is the highest bidder, Beneficiary may credit the portion
of the purchase price that would be distributed to Beneficiary against the
Indebtedness in lieu of paying cash.  In
the event this Deed of Trust is foreclosed by judicial action, appraisement and
valuation of the Trust Property is waived. In the event of any sale made under
or by virtue of this Article 5 (whether made by virtue of judicial
proceedings or of a judgment or decree of foreclosure and sale) the entire
Indebtedness, if not previously due and payable, immediately thereupon shall
become due and payable. The failure to make any such tenants of the Premises
party to any such foreclosure proceedings and to foreclose their rights will
not be, nor be asserted to be by Grantor, a defense to any proceedings
instituted by Beneficiary to collect the sums secured hereby.

 

(g)                                 With
or without entry, to the extent permitted and pursuant to the procedures
provided by applicable law, institute proceedings for the partial

 

16

 

foreclosure of this Deed of Trust for the portion of
the Indebtedness then due and payable (if Beneficiary shall have elected not to
declare the entire Indebtedness to be immediately due and owing), subject to
the continuing lien of this Deed of Trust for the balance of the Indebtedness
not then due; or (1) as and to the extent permitted by law, sell for cash or
upon credit the Trust Property or any part thereof and all estate, claim,
demand, right, title and interest of Grantor therein, pursuant to power of sale
or otherwise, at one or more sales, as an entity or in parcels, at such time
and place, upon such terms and after such notice thereof as may be required or
permitted by law, and in the event of a sale, by foreclosure or otherwise, of
less than all of the Trust Property, this Deed of Trust shall continue as a
lien on the remaining portion of the Trust Property; or (2) institute an
action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein or in any Indebtedness
Document; or (3) to the extent permitted by applicable law, recover judgment on
the Indenture either before, during or after any proceedings for the
enforcement of this Deed of Trust.

 

(h)                                 Make
application to a court of competent jurisdiction for, and obtain from such
court as a matter of strict right and without notice to Grantor or regard to
the adequacy of the Trust Property for the repayment of the Indebtedness, the
appointment of a receiver of the Trust Property, and Grantor irrevocably
consents to such appointment.  Any such
receiver shall have all the usual powers and duties of receivers in similar
cases, including the full power to rent, maintain and otherwise operate the
Trust Property upon such terms as may be approved by the court, and shall apply
such Rents in accordance with the provisions of Section 5.7 hereof.

 

(i)                                     Exercise
all other rights, remedies and recourses granted under the Indebtedness
Documents or otherwise available at law or in equity and including, without
limitation, that Beneficiary shall have all of the rights and remedies
available under Arizona Revised Statutes Section 33-702.

 

Section 5.2                                   Separate
Sales.  The Trust Property may
be sold in one or more parcels and in such manner and order as Trustee in its
sole discretion may elect; the right of sale arising out of any Event of
Default shall not be exhausted by any one or more sales.

 

Section 5.3                                   Remedies
Cumulative, Concurrent and Nonexclusive.  Beneficiary and Trustee shall have all rights, remedies and
recourses granted in the Indebtedness Documents and available at law or equity
(including the UCC), which rights (a) shall be cumulated and concurrent, (b) may
be pursued separately, successively or concurrently against Grantor or others
obligated under the Indebtedness Documents, or against the Trust Property, or
against any one or more of them, at the sole discretion of Beneficiary or
Trustee, as the case may be, (c) may be exercised as often as occasion
therefor shall arise, and the exercise or failure to exercise any of them shall
not be construed as a waiver or release thereof or of any other right, remedy
or recourse, and (d)

 

17

 

are intended to be, and shall be, nonexclusive.  No action by Beneficiary or Trustee in the
enforcement of any rights, remedies or recourses under the Indebtedness
Documents or otherwise at law or equity shall be deemed to cure any Event of
Default.

 

Section 5.4                                   Release
of and Resort to Collateral. 
Beneficiary may release, regardless of consideration and without the
necessity for any notice to or consent by the holder of any subordinate lien on
the Trust Property, any part of the Trust Property without, as to the
remainder, in any way impairing, affecting, subordinating or releasing the lien
or security interest created in or evidenced by the Indebtedness Documents or
their status as a lien and security interest in and to the Trust Property
second in priority to the Superior Deed of Trust only.  For payment of the Indebtedness, Beneficiary
may resort to any other security in such order and manner as Beneficiary may
elect.

 

Section 5.5                                   Waiver
of Redemption, Notice and Marshalling of Assets.  To the fullest extent permitted by law,
Grantor hereby irrevocably and unconditionally waives and releases (a) all
benefit that might accrue to Grantor by virtue of any present or future statute
of limitations or law or judicial decision exempting the Trust Property from
attachment, levy or sale on execution or providing for any stay of execution,
exemption from civil process, redemption or extension of time for payment,
(b) all notices of any Event of Default or of any election by Trustee or
Beneficiary to exercise or the actual exercise of any right, remedy or recourse
provided for under the Indebtedness Documents, and (c) any right to a
marshalling of assets or a sale in inverse order of alienation.

 

Section 5.6                                   Discontinuance
of Proceedings.  If Beneficiary
or Trustee shall have proceeded to invoke any right, remedy or recourse
permitted under the Indebtedness Documents and shall thereafter elect to
discontinue or abandon it for any reason, Beneficiary or Trustee, as the case
may be, shall have the unqualified right to do so and, in such an event,
Grantor, Beneficiary and Trustee shall be restored to their former positions
with respect to the Indebtedness, the Obligations, the Indebtedness Documents,
the Trust Property and otherwise, and the rights, remedies, recourses and
powers of Beneficiary and Trustee shall continue as if the right, remedy or
recourse had never been invoked, but no such discontinuance or abandonment
shall waive any Event of Default which may then exist or the right of Beneficiary
or Trustee thereafter to exercise any right, remedy or recourse under the
Indebtedness Documents for such Event of Default.

 

Section 5.7                                   Application
of Proceeds.  The proceeds of
any sale made under or by virtue of this Article 5, together with
any Rents and other amounts generated by the holding, leasing, management,
operation or other use of the Trust Property, shall be applied by Beneficiary
or Trustee (or the receiver, if one is appointed) in the following order unless
otherwise required by applicable law:

 

18

 

(a)                                  to
the payment of the costs and expenses of taking possession of the Trust
Property and of holding, using, leasing, repairing, improving and selling the
same, including, without limitation (1) trustee’s and receiver’s fees and
expenses, including the repayment of the amounts evidenced by any receiver’s
certificates, (2) court costs, (3) attorneys’ and accountants’ fees and
expenses, and (4) costs of advertisement;

 

(b)                                 to
the payment of the Indebtedness and performance of the Obligations in such
manner and order of preference as set forth in the Indenture; and

 

(c)                                  the
balance, if any, to the payment of the Persons legally entitled thereto.

 

Section 5.8                                   Occupancy
After Foreclosure.  Except as
otherwise required by applicable law, any sale of the Trust Property or any
part thereof in accordance with Section 5.1(e) or Section 5.1(f)
hereof will divest all right, title and interest of Grantor in and to the
property sold.  Subject to applicable law,
any purchaser at a foreclosure sale will receive immediate possession of the
property purchased.  If Grantor
retains possession of such property or any part thereof subsequent to such
sale, Grantor will be considered a tenant at sufferance of the purchaser, and
will, if Grantor remains in possession after demand to remove, be subject to
eviction and removal, forcible or otherwise, with or without process of law.

 

Section 5.9                                   Additional Advances and Disbursements; Costs
of Enforcement.

 

(a)                                  If
any Event of Default exists, Beneficiary shall have the right, but not the
obligation, to cure such Event of Default in the name and on behalf of
Grantor.  All sums advanced and expenses
incurred at any time by Beneficiary under this Section 5.9, or
otherwise under this Deed of Trust or any of the other Indebtedness Documents
or applicable law, shall bear interest from the date that such sum is advanced
or expense incurred, to and including the date of reimbursement, computed at
the Applicable Rate, and all such sums, together with interest thereon, shall
be secured by this Deed of Trust.

 

(b)                                 Grantor
shall pay all expenses (including reasonable attorneys’ fees and expenses and
all costs and expenses related to legal work, research and litigation) of or
incidental to the perfection and enforcement of this Deed of Trust and the
other Indebtedness Documents, or the enforcement, compromise or settlement of
the Indebtedness or any claim under this Deed of Trust and the other
Indebtedness Documents, and for the curing thereof, or for defending or
asserting the rights and claims of Beneficiary in respect thereof, by
litigation or otherwise.

 

19

 

Section 5.10                            No
Mortgagee in Possession. 
Neither the enforcement of any of the remedies under this Article 5,
the assignment of the rents and leases under Article 6, the security
interests under Article 7, nor any other remedies afforded to
Beneficiary under the Indebtedness Documents, at law or in equity shall cause
Beneficiary or Trustee to be deemed or construed to be a mortgagee in
possession of the Trust Property, to obligate Beneficiary or Trustee to lease
the Trust Property or attempt to do so, or to take any action, incur any
expense, or perform or discharge any obligation, duty or liability whatsoever
under any of the Leases or otherwise.

 

Section 5.11                            WAIVER OF GRANTOR’S RIGHTS.  BY EXECUTION
OF THIS DEED OF TRUST, GRANTOR EXPRESSLY: 
(A) ACKNOWLEDGES THE RIGHT OF BENEFICIARY, INDENTURE TRUSTEE AND/OR
HOLDERS TO ACCELERATE THE INDEBTEDNESS EVIDENCED BY THE INDENTURE OR OTHER
INDEBTEDNESS DOCUMENTS UPON THE OCCURRENCE OF AN EVENT OF DEFAULT;  (B) TO THE EXTENT ALLOWED BY APPLICABLE LAW,
WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION OF THE
UNITED STATES, THE VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE SEVERAL
STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, TO NOTICE AND TO JUDICIAL
HEARING PRIOR TO THE EXERCISE BY BENEFICIARY OF ANY RIGHT OR REMEDY HEREIN
PROVIDED TO BENEFICIARY; 
(C) ACKNOWLEDGES THAT GRANTOR HAS READ THIS DEED OF TRUST AND ITS
PROVISIONS HAVE BEEN EXPLAINED FULLY TO GRANTOR AND GRANTOR HAS CONSULTED WITH
LEGAL COUNSEL OF GRANTOR’S CHOICE PRIOR TO EXECUTING THIS DEED OF TRUST;  AND (D) ACKNOWLEDGES THAT ALL WAIVERS
OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND
WILLINGLY BY GRANTOR AS PART OF A BARGAINED FOR LOAN TRANSACTION.

 

ARTICLE 6

ASSIGNMENT OF RENTS AND LEASES

 

Section 6.1                                   Assignment.  In furtherance of and in addition to the
assignment made by Grantor in Section 2.1 of this Deed of Trust,
Grantor hereby absolutely and unconditionally assigns, sells, transfers and
conveys to Trustee (for the benefit of Beneficiary) and to Beneficiary all of
its right, title and interest in and to all Leases, whether now existing or
hereafter entered into, and all of its right, title and interest in and to all
Rents.  This assignment is an absolute
assignment and not an assignment for additional security only.  So long as no Event of Default shall have
occurred and be continuing and to the extent not prohibited by the Indenture,
Grantor shall have a revocable license from Trustee and Beneficiary to exercise
all rights extended to the landlord under the Leases, including the right to
receive and collect all

 

20

 

Rents and to hold the Rents in trust for use in the
payment and performance of the Obligations and to otherwise use the same.  The foregoing license is granted subject to
the conditional limitation that no Event of Default shall have occurred and be
continuing.  Upon the occurrence and
during the continuance of an Event of Default, whether or not legal proceedings
have commenced, and without regard to waste, adequacy of security for the
Obligations or solvency of Grantor, the license herein granted shall
automatically expire and terminate, without notice by Trustee or Beneficiary
(any such notice being hereby expressly waived by Grantor).

 

Section 6.2                                   Perfection
Upon Recordation.  Grantor
acknowledges that Beneficiary and Trustee have taken all actions necessary to
obtain, and that upon recordation of this Deed of Trust Beneficiary and Trustee
shall have, to the extent permitted under applicable law, a valid and fully
perfected, present assignment of the Rents arising out of the Leases and all
security for such Leases, subject only to the assignment of such Rents pursuant
to the Superior Deed of Trust and/or any separate assignment of Rents executed
in conjunction therewith.  Grantor
acknowledges and agrees that upon recordation of this Deed of Trust, Trustee’s
and Beneficiary’s interest in the Rents shall be deemed to be fully perfected,
“choate” and enforced as to Grantor and all third parties, including, without
limitation, any subsequently appointed trustee in any case under Title 11 of
the United States Code (the ”Bankruptcy Code”), without the necessity of
commencing a foreclosure action with respect to this Deed of Trust, making
formal demand for the Rents, obtaining the appointment of a receiver or taking
any other affirmative action.

 

Section 6.3                                   Bankruptcy
Provisions.  Without limitation
of the absolute nature of the assignment of the Rents hereunder, Grantor,
Trustee and Beneficiary agree that (a) this Deed of Trust shall constitute a
“security agreement” for purposes of Section 552(b) of the Bankruptcy
Code, (b) the security interest created by this Deed of Trust extends to
property of Grantor acquired before the commencement of a case in bankruptcy
and to all amounts paid as Rents and (c) such security interest shall extend to
all Rents acquired by the estate after the commencement of any case in
bankruptcy.

 

Section 6.4                                   No
Merger of Estates.  So long as
part of the Indebtedness and the Obligations secured hereby remain unpaid and
undischarged, the fee and leasehold estates to the Trust Property shall not
merge, but shall remain separate and distinct, notwithstanding the union of
such estates either in Grantor, Beneficiary, any tenant or any third party by
purchase or otherwise.

 

21

 

ARTICLE 7

SECURITY AGREEMENT

 

Section 7.1                                   Security
Interest.  This Deed of Trust
constitutes a “security agreement” on personal property within the meaning of
the UCC and other applicable law and with respect to the Operational Property,
Fixtures, Leases, Rents, Deposit Accounts, Property Agreements, Tax Refunds,
Proceeds, Insurance and Condemnation Awards. 
To this end, Grantor grants to Beneficiary a security interest in
the Operational Property, Fixtures, Leases, Rents, Deposit Accounts, Property
Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards and all
other Trust Property which is personal property, second in priority to the
security interest created by the Superior Deed of Trust only, to secure the
payment of the Indebtedness and performance of the Obligations and agrees that
Beneficiary shall have all the rights and remedies of a secured party under the
UCC with respect to such property.  Any
notice of sale, disposition or other intended action by Beneficiary with
respect to the Operational Property, Fixtures, Leases, Rents, Deposit Accounts,
Property Agreements, Tax Refunds, Proceeds, Insurance and Condemnation Awards
sent to Grantor at least five (5) days prior to any action under the UCC shall
constitute reasonable notice to Grantor. 
THE TERM “TRUST PROPERTY” IS INTENDED TO EXCLUDE ALL ITEMS OF PERSONAL
PROPERTY IN WHICH BENEFICIARY HAS OBTAINED AND/OR PERFECTED A SECURITY INTEREST
UNDER SEPARATE INSTRUMENTS.

 

Section 7.2                                   Financing
Statements.  Grantor shall provide
authorization for Beneficiary to prepare and record, in form and substance
satisfactory to Beneficiary, financing statements (and shall make, execute
and/or otherwise deliver to Beneficiary, in form and substance satisfactory to
Beneficiary, such further documentation and assurances) as Beneficiary may,
from time to time, reasonably consider necessary to create, perfect and
preserve Beneficiary’s security interest hereunder and Beneficiary may cause
such statements and assurances to be recorded and filed, at such times and
places as may be required or permitted by law to so create, perfect and
preserve such security interest. 
Grantor’s state of organization is the State of Nevada.

 

Section 7.3                                   Fixture
Filing.  This Deed of Trust
shall also constitute a “fixture filing” for the purposes of the UCC against
all of the Trust Property which is or is to become fixtures.  Information concerning the security interest
herein granted may be obtained at the address of Debtor (Grantor) and Secured
Party (Beneficiary) as set forth in the first paragraph of this Deed of Trust.

 

Section 7.4                                   Applicable Provisions of Liquor Laws.  The parties acknowledge and agree that all
rights, remedies, and powers provided in this Deed of Trust relative to the
Trust Property may be exercised only to the extent that the exercise thereof
does not violate any applicable mandatory provision of the applicable Liquor

 

22

 

Laws and all provisions of this Deed of Trust relative
to the Trust Property are intended to be subject to all applicable mandatory
provisions of the applicable Liquor Laws and to be limited solely to the extent
necessary to not render the provisions of this Deed of Trust invalid or
unenforceable, in whole or in part.  Beneficiary
will timely apply for and receive all required approvals of the applicable
Liquor Authorities for the sale of liquor and other alcoholic beverages
regulated by applicable Liquor Laws.

 

ARTICLE 8

CONCERNING THE TRUSTEE

 

Section 8.1                                   Certain
Rights.  With the approval of
Beneficiary, Trustee shall have the right to select, employ and consult with
counsel.  Trustee shall have the right
to rely on any instrument, document or signature authorizing or supporting any
action taken or proposed to be taken by it hereunder, believed by it in good
faith to be genuine.  Trustee shall be
entitled to reimbursement for actual, reasonable expenses incurred by it in the
performance of its duties and to reasonable compensation for Trustee’s services
hereunder as shall be rendered.  Grantor
shall, from time to time, pay the compensation due to Trustee hereunder and
reimburse Trustee for, and indemnify, defend and save Trustee harmless against,
all liability and reasonable expenses which may be incurred by it in the performance
of its duties, including those arising from joint, concurrent, or comparative
negligence of Trustee; however, Grantor shall not be liable under such
indemnification to the extent such liability or expenses result solely from
Trustee’s or Beneficiary’s gross negligence or willful misconduct.  Grantor’s obligations under this Section 8.1
shall not be reduced or impaired by principles of comparative or contributory
negligence.

 

Section 8.2                                   Retention
of Money.  All moneys received
by Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated in
any manner from any other moneys (except to the extent required by law), and
Trustee shall be under no liability for interest on any moneys received by him
hereunder.

 

Section 8.3                                   Successor
Trustees.  If Trustee or any
successor Trustee shall die, resign or become disqualified from acting in the
execution of this trust, or Beneficiary shall, in Beneficiary’s sole and
absolute discretion, desire to appoint a substitute Trustee, Beneficiary shall
have full power to appoint one or more substitute Trustees and, if preferred,
several substitute Trustees in succession who shall succeed to all the estates,
rights, powers and duties of Trustee. 
Such appointment may be executed by any authorized agent of Beneficiary
and as so executed, such appointment shall be conclusively presumed to be
executed with authority, valid and sufficient, without further proof of any
action.

 

23

 

Section 8.4                                   Perfection
of Appointment.  Should any
deed, conveyance or instrument of any nature be required from Grantor by any
successor Trustee to more fully and certainly vest in and confirm to such
successor Trustee such estates, rights, powers and duties, then, upon request
by such Trustee, all such deeds, conveyances and instruments shall be made,
executed, acknowledged and delivered and shall be caused to be recorded and/or
filed by Grantor.

 

Section 8.5                                   Trustee
Liability.  In no event or
circumstance shall Trustee or any substitute Trustee hereunder be personally
liable under or as a result of this Deed of Trust, either as a result of any
action by Trustee (or any substitute Trustee) in the exercise of the powers hereby
granted or otherwise.

 

ARTICLE 9

MISCELLANEOUS

 

Section 9.1                                   Notices.  Any notice required or permitted to be given
under this Deed of Trust shall be given in accordance with Section 13.02
of the Indenture to the addresses of the parties hereto set forth in the
Preamble hereof.

 

Section 9.2                                   Covenants
Running with the Land.  All
Obligations contained in this Deed of Trust are intended by Grantor,
Beneficiary and Trustee to be, and shall be construed as, covenants running
with the Trust Property.  As used
herein, “Grantor” shall refer to the party named in the first paragraph of this
Deed of Trust and to any subsequent owner of all or any portion of the Trust
Property.  All Persons who may have or
acquire an interest in the Trust Property shall be deemed to have notice of,
and be bound by, the terms of the Indenture and the other Indebtedness
Documents; however, no such party shall be entitled to any rights thereunder
without the prior written consent of Beneficiary.

 

Section 9.3                                   Attorney-in-Fact.  Grantor hereby irrevocably appoints
Beneficiary and its successors and assigns, as its attorney-in-fact, which
agency is coupled with an interest and with full power of substitution, (a) to
execute and/or record any notices of completion, cessation of labor or any
other notices that Beneficiary deems appropriate to protect Beneficiary’s
interest, if Grantor shall fail to do so within ten (10) days after
written request by Beneficiary, (b) upon the issuance of a deed pursuant to the
foreclosure of this Deed of Trust or the delivery of a deed in lieu of
foreclosure, to execute all instruments of assignment, conveyance or further
assurance with respect to the Operational Assets, Fixtures, Leases, Rents,
Deposit Accounts, Property Agreements, Tax Refunds, Proceeds, Insurance and
Condemnation Awards in favor of the grantee of any such deed and as may be
necessary or desirable for such purpose, (c) to prepare, execute and file or
record financing statements, continuation statements, applications for
registration and like papers necessary to create, perfect or preserve
Beneficiary’s security interests and rights in or to any of the Trust Property,
and (d) while any Event of Default

 

24

 

exists, to perform any obligation of Grantor
hereunder, however:  (1) Beneficiary
shall not under any circumstances be obligated to perform any obligation of
Grantor; (2) any sums advanced by Beneficiary in such performance shall be
added to and included in the Indebtedness and shall bear interest at the
Applicable Rate; (3) Beneficiary as such attorney-in-fact shall only be
accountable for such funds as are actually received by Beneficiary; and (4)
Beneficiary shall not be liable to Grantor or any other person or entity for
any failure to take any action which it is empowered to take under this Section 9.3.  Notwithstanding the foregoing, Beneficiary
shall be liable for its gross negligence, willful misconduct, and bad faith in
connection with exercising its rights hereunder.

 

Section 9.4                                   Successors
and Assigns.  This Deed of Trust
shall be binding upon and inure to the benefit of Beneficiary, the Lenders,
Trustee and Grantor and their respective successors and assigns.  Grantor shall not, without the prior written
consent of Beneficiary, assign any rights, duties or obligations hereunder.

 

Section 9.5                                   No
Waiver.  Any failure by
Beneficiary, the Lenders or Trustee to insist upon strict performance of any of
the terms, provisions or conditions of the Indebtedness Documents shall not be
deemed to be a waiver of the same, and Beneficiary, the Indenture Trustee, the
Holders or Trustee shall have the right at any time to insist upon strict
performance of all such terms, provisions and conditions.

 

Section 9.6                                   Indenture.  If any conflict or inconsistency exists
between this Deed of Trust and the Indenture, the Indenture shall govern.

 

Section 9.7                                   Release
or Reconveyance.  Upon payment
in full of the Indebtedness and performance in full of the Obligations,
Beneficiary, at Grantor’s expense, shall release the liens and security
interests created by this Deed of Trust or reconvey the Trust Property to
Grantor.  Beneficiary shall also release
Beneficiary’s lien and security interest created by this Deed of Trust or reconvey
the Trust Property to Grantor upon the satisfaction of the release conditions
contained in Section 3.5 or elsewhere in the Indenture.

 

Section 9.8                                   Waiver
of Stay, Moratorium and Similar Rights.  Grantor agrees, to the full extent that it may lawfully do so,
that it will not at any time insist upon or plead or in any way take advantage
of any stay, marshalling of assets, extension, redemption or moratorium law now
or hereafter in force and effect so as to prevent or hinder the enforcement of
the provisions of this Deed of Trust or the Indebtedness secured hereby, or any
agreement between Grantor and Beneficiary or any rights or remedies of
Beneficiary or Trustee.

 

Section 9.9                                   Applicable
Law.  The provisions of this
Deed of Trust regarding the creation, perfection and enforcement of the liens and
security interests herein granted shall be governed by and construed under the
laws of the state in which 

 

25

 

the Trust Property is located.  All other provisions of this Deed of Trust
shall be governed by the laws of the State of New York, without regard to
conflicts of law principles; provided, however, that whenever in this Deed of
Trust a right is given to Beneficiary, which right is affected by applicable
Liquor Laws or the enforcement of which is subject to applicable Liquor Laws,
the enforcement of any such right shall be subject to applicable Liquor Laws
and approval, if so required, of the applicable Liquor Authorities.

 

Section 9.10                            Headings.  The Article, Section and
Subsection titles hereof are inserted for convenience of reference only
and shall in no way alter, modify or define, or be used in construing, the text
of such Articles, Sections or Subsections.

 

Section 9.11                            Entire
Agreement.  This Deed of Trust
and the other Indebtedness Documents embody the entire agreement and
understanding between Grantor and Beneficiary and supersede all prior
agreements and understandings between such parties relating to the subject
matter hereof and thereof.  Accordingly,
the Indebtedness Documents may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements
between the parties.

 

Section 9.12                            Beneficiary as Agent; Successor Agents.

 

(a)                                  Agent
has been appointed to act as Agent hereunder by the Indenture Trustee.  Agent shall have the right hereunder to make
demands, to give notices, to exercise or refrain from exercising any rights,
and to take or refrain from taking any action (including, without limitation,
the release or substitution of the Trust Property) in accordance with the terms
of the Indenture, any related agency agreement between Agent and the Indenture
Trustee (collectively, as amended, supplemented or otherwise modified or
replaced from time to time, the “Agency Documents”) and this Deed of
Trust.  Grantor and all other persons
shall be entitled to rely on releases, waivers, consents, approvals,
notifications and other acts of Agent, without inquiry into the existence of
required consents or approvals of the Indenture Trustee therefor.

 

(b)                                 Beneficiary
shall at all times be the same Person that is Agent under the Agency
Documents.  Written notice of
resignation by Agent pursuant to the Agency Documents shall also constitute
notice of resignation as Agent under this Deed of Trust.  Removal of Agent pursuant to any provision
of the Agency Documents shall also constitute removal as Agent under this Deed
of Trust.  Appointment of a successor
Agent pursuant to the Agency Documents shall also constitute appointment of a successor
Agent under this Deed of Trust.  Upon
the acceptance of any appointment as Agent by a successor Agent under the
Agency Documents, that successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring or
removed Agent as the Beneficiary under this Deed of Trust, and the retiring or
removed Agent shall promptly (i) assign and transfer to such successor Agent

 

26

 

all of its right, title and interest in and to this
Deed of Trust and the Trust Property, and (ii) execute and deliver to such
successor Agent such assignments and amendments and take such other actions, as
may be necessary or appropriate in connection with the assignment to such successor
Agent of the liens and security interests created hereunder, whereupon such
retiring or removed Agent shall be discharged from its duties and obligations
under this Deed of Trust.  After any
retiring or removed Agent’s resignation or removal hereunder as Agent, the
provisions of this Deed of Trust and the Agency Documents shall inure to its
benefit as to any actions taken or omitted to be taken by it under this Deed of
Trust while it was the Agent hereunder.

 

(c)                                  Each
reference herein to any right granted to, benefit conferred upon or power
exercisable, exercised or action taken by the “Beneficiary” shall be deemed to
be a reference to or be deemed to have been so taken, as the case may be, by
Beneficiary, together with its successors and assigns, in its capacity as
Collateral Agent pursuant to the Indenture for the benefit of the Holders, all
as more fully set forth in the Indenture

 

Section 9.13                            No Amendments. 
This Deed of Trust shall not be in any way amended or modified unless
such amendment or modification is in writing and signed by Beneficiary.

 

ARTICLE 10

LOCAL LAW PROVISIONS

 

Section 10.1                            Without
obtaining the prior written consent of Beneficiary, Grantor shall not consent
to, or vote in favor of, the inclusion of all or any part of the Trust Property
in any Community Facilities District formed pursuant to the Community
Facilities District Act, A.R.S. Section 48-701, et seq., as amended from
time to time.  Grantor shall immediately
give notice to Beneficiary of any notification or advice that Grantor may
receive from any municipality or other third party of any intent or proposal to
include all or any part of the Trust Property in a Community Facilities
District. Beneficiary shall have the right to file a written objection to the
inclusion of all or any part of the Trust Property in a Community Facilities
District, either in its own name or in the name of Grantor, and to appear at,
and participate in, any hearing with respect to the formation of any such
district.

 

Section 10.2                            Grantor,
upon the advice of legal counsel, and being fully informed of the consequences
thereof, hereby expressly waives and relinquishes any right or remedy which it
may have, or be otherwise entitled to assert, by reason of the provisions of
Arizona Revised Statutes, Sections 12-1641 and 12-1642, Arizona Revised
Statutes, Section 44-142, and 16 Arizona Rules of Civil Procedure, Rule
17(f), or by

 

27

 

reason of any other provision of Arizona law (whether
pursuant to statute, case authority or otherwise) pertaining to or granting
rights of or to sureties or guarantors.

 

Section 10.3                            Throughout
this Deed of Trust, the term “Grantor” shall have the same meaning as and
include the term “Trustor” as such word is defined in ARS § 33-801(9).

 

Section 10.4                            Throughout
this Deed of Trust, the term “Agent” shall have the same meaning as and include
the term “Beneficiary” as such word is defined in ARS § 33-801(1).

 

Section 10.5                            Terms
and other provisions referenced in this Deed of Trust but not expressly set
forth herein may be obtained by contacting the Beneficiary at its address set
forth in the preamble to this Deed of Trust.

 

ARTICLE 11

INTERCREDITOR AGREEMENT

 

The lien of this Deed of Trust is subordinate to the lien of the
Superior Deed of Trust to the extent set forth in the Intercreditor Agreement
and this Deed of Trust is subject to the terms of the Intercreditor Agreement.

 

[The remainder of this page has been intentionally left
blank]

 

28

 

IN WITNESS WHEREOF,
Grantor has on the date set forth in the acknowledgement hereto, effective as
of the date first above written, caused this instrument to be duly EXECUTED AND
DELIVERED by authority duly given.

 

	
   

  	
  GRANTOR:

  	
  GNL,
  CORP., a Nevada corporation  

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas C. Breitling

  	
   

  
	
   

  	
  Name:

  	
  Thomas C. Breitling

  	
   

  
	
   

  	
  Its:

  	
  President

  	
   

  

 

 

	
  STATE OF NEVADA

  	
  )

  
	
   

  	
  )ss.

  
	
  COUNTY OF CLARK

  	
  )

  

 

This instrument was
acknowledged before me on  January 21,
2004, by Thomas Breitling as
President of GNL, CORP., a Nevada corporation.

 

 

	
   

  	
  /s/ Lenore J. DiVicino

  	
   

  
	
   

  	
  Signature of Notarial Officer

  

 

 

Exhibit A

 

Legal Description

 

A parcel of land lying
within the North half of the South half of the Northeast quarter of the
Southeast quarter (N 1⁄2 of S 1⁄2 of NE 1⁄4 of SE 1⁄4) of
Section 1, Township 20 North, Range 22 West of the Gila and Salt River
Base and Meridian, Mohave County, Arizona, and a portion of that unnumbered Lot
in Block 10-A, Bullhead City, Arizona, Unit No. 2, as shown on the plat
thereof, recorded August 5, 1942 at Fee No. 22210 in the office of the
County Recorder, Mohave County, Arizona, commonly referred to as a portion of
Lot 3, Block 10-A, Bullhead City, Unit 2, described as follows:

 

COMMENCING at a 1 inch
iron pipe described as the Southwest corner of Royal Rio Park, a subdivision
recorded April 26, 1961, at Reception No. 102858 and accepted as the
Northwest corner of said North half of the South half of the Northeast quarter
of the Southeast quarter of said Section 1;

Thence South 00 degrees
02 minutes 00 seconds West, a distance of 126.28 feet to a point at which set a
1⁄2 inch rebar tagged PE 12284, said point being the TRUE POINT OF BEGINNING;

Thence continuing South
00 degrees 02 minutes 00 seconds West, a distance of 102.40 feet;

Thence South 07 degrees
42 minutes 00 seconds West, a distance of 106.75 feet;

Thence South 88 degrees
00 minutes 00 seconds East, a distance of 14.25 feet;

Thence North 00 degrees
02 minutes 00 seconds East, a distance of 2.00 feet;

Thence South 89 degrees
58 minutes 53 seconds East, a distance of 485.00 feet;

Thence North 00 degrees
02 minutes 00 seconds East, a distance of 206.00 feet;

Thence North 89 degrees
54 minutes 00 seconds West, a distance of 485.00 feet returning to the True
Point of Beginning.

 

Being the same land as
the following:

 

A parcel of land lying
within the North half of the South half of the Northeast quarter of the
Southeast quarter (N1/2 of S1/2 of NE1/4 of SE1/4 Section 1, Township 20
North, Range 22 West of the Gila and Salt River Meridian, Mohave County,
Arizona, and a portion of that unnumbered Lot in Block 10-A, Bullhead City,
Arizona, Unit No. 2, as shown on the plat thereof, recorded August 5, 1942
at Fee No. 22210 on the Office of the County Recorder, Mohave County, Arizona,
commonly referred to as a portion of Lot 3, Block 10-A, Bullhead City, Unit 2,
described as follows:

 

Commencing at a 1 inch
iron pipe described as the Southwest corner of Royal Rio Park, a subdivision
recorded April 26, 1961 at Reception No. 102858 and accepted as the Northwest
corner of said North half of the South half of the Northeast quarter of the 

 

 

Southeast quarter of said
Section 1 and running thence, South 00 ̊02’00” West, a distance of
126.28 feet to a point at which found a 1/2 inch rebar with yellow plastic cap
(YPC), RLS 16617 and said point being the true POINT OF BEGINNING;

 

Thence, South
00 ̊02’00” West, a distance of 102.40 feet to a point (fd. 1/2 inch
rebar/YPC, RLS 16617);

 

Thence, South
07 ̊51’04” West, a distance of 105.70 feet (record =South 07 ̊42’00”
West, 106.75 feet) to a point (fd. 5/8 inch rebar/RPC, RLS 19319);

 

Thence, South
87 ̊20’14” East, a distance of 13.81 feet (record =South 88 ̊00’00”
East, 14.25 feet) to a point (fd. 1/2 inch rebar/YPC RLS 16617);

 

Thence, North
14 ̊39’59” East, 2.00 feet (record = North 00 ̊02’00” East, 2.00 feet)
to a point (fd. 1/2 inch rebar/RLS 16617);

 

Thence, South
89 ̊41’46” East, 485.00 feet (record = South 89 ̊58’53” East, 485.00
feet) to a point (fd. 1/2 inch rebar/YPC, RLS 16617;

 

Thence, North
00 ̊19’17” East, 205.98 feet (record = North 00 ̊02’00” East, 206.00
feet) to a point (fd. 1/2” rebar/YPC, RLS 16617;

 

Thence, North
89 ̊42’57” West, 485.95 feet (record = North 89 ̊54’00” West, 485.00
feet) to the POINT OF BEGINNING.

 

The parcel of land herein
described containing 2.31 acres, more or less.

 

2

 

PREPARED BY, RECORDING 

REQUESTED BY, AND WHEN 

RECORDED MAIL TO:

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  David A. Berlyne, Esq.

 

DEED OF TRUST, ASSIGNMENT

OF RENTS AND LEASES, FIXTURE FILING AND SECURITY AGREEMENT

 

by and from

 

GNL, CORP., “Grantor”

 

to

 

TRANSNATION TITLE INSURANCE COMPANY, “Trustee”

 

for the benefit of

 

WELLS FARGO BANK,
N.A.,

in its capacity as Collateral Agent, “Beneficiary”

 

Dated as of January 23, 2004

 

	
   

  	
  Municipality:

  	
  Bullhead
  City

  
	
   

  	
  County:

  	
  Mohave

  
	
   

  	
  State:

  	
  Arizona

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