Document:

ex10_23.htm

    
      

    

    EXHIBIT 10.23

    Narrative Summary of
American Consumers, Inc.

    Executive Officer Base
Salaries for Fiscal 2009

    

    The
following table sets forth the base salaries established for the fiscal year
ending in May 2009 for those executive officers of American Consumers, Inc. (the
“Company”) who qualify as “named executive officers” pursuant to Item 402(m)(2)
of Securities and Exchange Commission Regulation S-K.  The Board of
Directors of the Company, acting upon the recommendation of the Board’s
Compensation Committee, has elected to leave these base salaries unchanged from
the base salaries for these officers for the Company’s 2008 fiscal
year.

    

    

    
      	
              Name:

            	 
      	
              Title:

            	 
      	
              Annual Base
      Salary:

            
	
              Michael
      A. Richardson

            	 
      	
              Chairman
      of the Board, President and
      Chief Executive Officer

            	 
      	
              $88,400ex10_24.htm

    
      

    

    EXHIBIT 10.24

     

    Narrative Summary of
American Consumers, Inc.

    Executive Officer Cash Bonus
Plan for Fiscal 2009

    

    The
following is a description of the Cash Bonus Plan applicable to the fiscal year
ending in May 2009 for those executive officers of American Consumers, Inc. (the
“Company”) who qualify as “named executive officers” pursuant to Item 402(m)(2)
of Securities and Exchange Commission Regulation S-K.  The Board of
Directors of the Company, acting upon the recommendation of the Board’s
Compensation Committee, has elected to leave these potential bonus percentages
unchanged from the potential bonus percentages established for these officers
for the Company’s 2008 fiscal year.

    

    During
fiscal 2009, the following named executive officer of the Company will be
eligible to receive a discretionary cash bonus equal to the fixed percentage of
the Company’s net income before taxes for such year set forth below for each
such officer:

    

    

    
      	
              Name:

            	 	
              Title:

            	 	
              Potential
      Bonus as a

              Percentage of Pre-Tax
    Income:

            
	
              Michael
      A. Richardson

            	 	
              Chairman of the
      Board, President and
      Chief Executive Officer

            	 	
              6%

            

    

    

    The
amount of any bonus ultimately paid will be determined in the discretion of the
Compensation Committee.  In the usual case, if the Company is
profitable bonuses will be paid at the targeted levels.  As reported
in the Company’s proxy statement for its 2008 Annual Meeting of Shareholders,
such officer was paid a bonus in the amount of $9,882 with respect to the
Company’s performance in fiscal 2008.ex10_25.htm

    
      

    

    EXHIBIT
10.25

     

     

    Narrative Summary of
American Consumers, Inc.

    Director Compensation
Arrangements

    

    The
following is a description of the current director compensation arrangements for
American Consumers, Inc. (the “Company”).  The Board of Directors of
the Company, acting upon the recommendation of the Board’s Compensation
Committee, has elected to leave these arrangements unchanged for the Company’s
fiscal year ending in May 2009 as compared to the Company’s fiscal 2008 and
prior years.

    

    During
fiscal 2009, all Company directors (including both employee and non-employee
directors) will receive cash payments of $300.00 per month for service as
directors, plus reimbursement for reasonable expenses incurred in attending
meetings of the Board of Directors and any Board committee on which a director
serves.  Directors who are members of the Audit Committee and the
Compensation Committee of the Board of Directors do not receive any additional
compensation for such committee service.LOAN
      AGREEMENT

     

    Between

     

    GAMETECH
      INTERNATIONAL, INC.,

    a
      Delaware corporation,

    as
      Borrower,

     

    U.S.
      BANK NATIONAL ASSOCIATION,

    a
      national banking association,

    as
      Agent, Lead Arranger and Book Manager,

     

    and

     

    U.S.
      BANK NATIONAL ASSOCIATION,

    a
      national banking association,

     

    and

     

    BANK
      OF THE WEST

    as
      Lenders

     

    and

    

    The
      Lenders Party Hereto From Time to Time

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    LOAN
      AGREEMENT

    

    THIS
      LOAN
      AGREEMENT is made and entered into this 22 day of August, 2008, by and between
      (i) GAMETECH INTERNATIONAL, INC., a Delaware corporation ("Borrower"), (ii)
      U.S.
      BANK NATIONAL ASSOCIATION, a
      national banking association,
      as
      agent ("Agent"), and (iii) U.S. BANK NATIONAL ASSOCIATION, a national banking
      association, and BANK OF THE WEST, a national banking association, each as
      a
      Lender, and any bank that becomes a party hereto in the future (collectively,
      the "Lenders").

    

    WITNESSETH
      THAT, in consideration of the mutual covenants and agreements hereinafter set
      forth, the parties hereto agree as follows:

    

    DEFINITIONS

    

    For
      the
      purposes of this Agreement, the following terms shall have the following
      respective meanings, unless the context hereof clearly requires
      otherwise:

    

    “Advance
      Date”: As defined in Section 3.6(d).

    

    “Affiliate”:
      As to Lender, means (x) with respect to a corporation, (i) any officer or
      director thereof and any Person which is, directly or indirectly, the beneficial
      owner of more than 10% of any class of shares or other equity security or (ii)
      any Person which, directly or indirectly, controls or is controlled by or is
      under common control with such corporation and (y) with respect to a
      partnership, venture or limited liability company, any (i) general partner
      or
      member, (ii) general partner or member of a general partner or member, (iii)
      partnership or limited liability company with a common general partner or
      member, or (iv) coventurer thereof, and if any general partner, member or
      coventurer is a corporation, any Person which is an Affiliate of such
      corporation. Controls (which includes the correlative meanings of "controlled
      by" and "under common control with") means effective power, directly or
      indirectly, to direct or cause the direction of the management and policies
      of
      such Person.

    

    “Affiliate”:
      As to Borrower, means (x) with respect to a corporation, (i) any officer or
      director thereof or (ii) any subsidiary which, directly or indirectly, controls
      or is controlled by or is under common control with such corporation and (y)
      with respect to a partnership or limited liability company, any (i) general
      partner or member, (ii) general partner or member of a general partner or
      member, (iii) partnership or limited liability company with a common general
      partner or member, and if any general partner member is a corporation, any
      Person which is an Affiliate of such corporation. Controls (which includes
      the
      correlative meanings of "controlled by" and "under common control with") means
      effective power, directly or indirectly, to direct or cause the direction of
      the
      management and policies of such Person.

    

    “Agent”:
      U. S. Bank National Association, as agent for itself and for the other Lenders
      which are now or may in the future become parties to this
      Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    “Agreement”:
      This Loan Agreement, including any amendments hereof and supplements
      hereto.

    

    “Assignee
      Lender”: As defined in Section 8.9.

    

    “Assignment
      and Assumption Agreement”: An instrument in the form of Exhibit A, duly
      completed and executed and delivered.

    

    “Assignment
      of Architectural Agreements”: That certain Assignment of Architectural
      Agreements and Plans and Specifications, and the Architect's Consent attached
      thereto, to be executed by Borrower, and the architect indicated therein, in
      favor of Agent.

    

    “Assignment
      of Construction Agreements”: That certain Assignment of Construction Agreements,
      and the Contractor's Consent attached thereto, to be executed by Borrower and
      the Contractor indicated therein in favor of Agent.

    

    “Assignments”:
      Collectively, the Assignment of Architectural Agreements, and the Assignment
      of
      Construction Agreements.

    

    “Availability
      Period”: Shall have the meaning given such term in Section 1.2

    

    “Balance”:
      Shall have the meaning given such term in Section 3.3.

    

    “Benefit
      Plan”: Means any “employee benefit plan” (as such term is defined in Section
      3(3) of ERISA), other than a Foreign Plan, established, maintained or
      contributed to by Borrower or any Subsidiary or, with respect to any such plan
      that is subject to Section 412 of the Code or Title IV of ERISA, any of their
      respective ERISA Affiliates.

    

    “Book
      Manager”: Means U.S. Bank National Association as book manager of the
      Loans.

    

    “Borrower”:
      Gametech International, Inc., a Delaware corporation.

    

    “Business
      Day”: Any day other than (i) a Saturday, (ii) a Sunday, or (iii) a legal holiday
      on which Agent is not open for business.

    

    “Closing
      Date”: The date upon which all of the conditions set forth in Section 2 are
      satisfied and the Deed of Trust is recorded in the Official Records of the
      Recorder of Washoe County, Nevada.

    

    “Code”:
      The Internal Revenue Code of 1986, as amended.

    

    “Commitment
      Percentage”: With respect to each Lender's share of all right, title and
      interest in the Loans and the Loan Documents, as set forth on Exhibit H attached
      hereto, as amended and modified by unilateral action of Agent from time to
      time
      to reflect the sale or assignment of a portion of a Loan (which, unless
      otherwise specified, shall be the amount of such Lender's commitment divided
      by
      the aggregate amount of the commitments of all Lenders), consisting of such
      Lender’s Line of Credit Commitment Percentage and Term Loan Commitment
      Percentage.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    “Committed
      Amount”: Forty Million Dollars ($40,000,000) consisting of $38,000,000 under the
      Term Loan and $2,000,000 under the Line of Credit Loan.

    

    “Completion”
      All Improvements are substantially completed substantially in accordance with
      the Plans, subject only to minor punchlist items and paid for in full except
      for
      any such punchlist items, free of all mechanics', labor, materialmen's and
      other
      similar lien claims; said completion has been approved and certified by the
      Project Architect and by the Inspecting Architect; a certificate of substantial
      completion in form reasonably acceptable to Agent for the Improvements has
      been
      signed by Borrower, the Project Architect and the General Contractor and
      delivered to Agent; Agent has received reasonably acceptable evidence that
      all
      Governmental Requirements and all private restrictions and covenants relating
      to
      the Property have been complied with or satisfied and that unconditional
      certificates of occupancy for all of the Improvements have been issued by all
      appropriate governmental authorities; Borrower has obtained and delivered to
      Agent copies of all licenses and permits needed to operate the Property; Agent
      has received photographs of the completed Improvements, evidence that all
      insurance required hereby is in full force and effect and no Event of Default
      exists hereunder.

    

    “Completion
      Date”: March 31, 2009.

    

    “Compliance
      Certificate”: The certificate in the form attached hereto as Exhibit
      I.

    

    “Construction
      Draw Request”: A properly completed and executed written application by Borrower
      to Agent in the form approved by Agent, which approval shall not be unreasonably
      withheld, conditioned or delayed, setting forth the amount of Construction
      Proceeds desired, together with such schedules, affidavits, releases, waivers,
      statements, invoices, bills and other documents, certificates and information
      as
      Agent requires.

    

    “Construction
      Proceeds”: Means proceeds of the Term Loan in excess of the Term Closing
      Disbursement to be held in an interest-bearing account and disbursed in payment
      of the cost of construction of the Improvements in accordance with the terms
      of
      this Agreement. 

    

    “Consultants”:
      Third party experts retained by Agent to assist it in connection with closing,
      advancing, disbursing or administering the Construction Proceeds.

    

    “Contractor”:
      Any person, party or entity which has a contract or subcontract under which
      payment may be required for any work done, material supplied or services
      furnished in connection with acquiring, constructing, equipping and/or
      developing the Property.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    “Control
      Account”: Means that deposit account with Bank of the West and which is the
      subject of the Control Agreement.

    

    “Control
      Agreement”: That certain Control Agreement of even date between Borrower and
      Bank of the West, as depositary.

    

    “Deed
      of
      Trust”: That certain Deed of Trust (with Assignment of Leases and Rents,
      Security Agreement and Fixture Filing) of even date herewith executed by
      Borrower as trustor in favor of Agent as beneficiary to be recorded in the
      Official Record of Washoe County, Nevada, creating a first lien on the Land,
      the
      Improvements, and all buildings, fixtures and improvements now or hereafter
      owned or acquired by Borrower and situated on the Land, and all rights and
      easements appurtenant thereto, and a first lien on and a security interest
      in
      the fixtures thereon and a security interest in the Equipment associated with
      and appurtenant to the Land, which Deed of Trust shall secure the Notes and
      the
      other obligations specified therein, including any amendments to such Deed
      of
      Trust and supplements thereto executed by Borrower and Agent.

    

    “Default
      Rate”: As defined in the Term Note.

    

    “Defaulting
      Lender”: Any Lender who for any reason shall fail or refuse to abide by its
      obligations under the Loan Documents or this Agreement within the time periods
      specified for performance of such obligation or, if no time frame is specified,
      if such failure or refusal continues for a period of five (5) Business
      Days.

    

    “EBITDA”:
      Is defined in Section 5.12(a).

    

    “Environment”:
      means ambient air, indoor air, surface water, drinking water, groundwater,
      land
      surfaces, subsurface strata and natural resources such as wetlands, flora and
      fauna.

    

    “Environmental
      Claim”: means any and all administrative, regulatory or judicial actions, suits,
      demands, demand letters, claims, liens, written notices of noncompliance or
      violation, investigations (other than internal reports prepared by Borrower
      or
      any of its Subsidiaries or environmental reports prepared by outside
      environmental consultants(a) in the ordinary course of such Person’s business or
      (b) as required in connection with a financing transaction or an acquisition
      or
      disposition of real estate or pursuant to Section 5.7) or proceedings with
      respect to any Environmental Liability (hereinafter “Claims”), including (i) any
      and all Claims by a Governmental Authority for enforcement, response or other
      actions or damages pursuant to any Environmental Law and (ii) any and all Claims
      by any Person seeking damages, contribution, indemnification, cost recovery,
      compensation or injunctive relief pursuant to any Environmental
      Law.

    

    “Environmental
      Indemnity”: That certain Unsecured Environmental Indemnity of even date
      herewith, executed by Borrower and Guarantor in favor of Agent, setting forth
      certain indemnification obligations relating to "Hazardous Substances" (as
      defined therein).

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    “Environmental
      Laws”: means any and all Laws relating to the pollution or protection of the
      Environment including those relating to the generation, handling, storage,
      treatment transport or Release or threat of Release of Hazardous Materials
      or,
      to the extent relating to exposure or threat of exposure to Hazardous Materials,
      human health.

    

    “Environmental
      Liability”: means any liability, contingent or otherwise (including any
      liability for damages, costs of environmental remediation, fines, penalties
      or
      indemnities) of Borrower or any of its Subsidiaries directly or indirectly
      resulting from or based upon (a) violation of any Environmental Law, (b) the
      generation, use, handling, transportation, storage or treatment of any Hazardous
      Materials, (c) exposure to any Hazardous Materials, (d) the presence, or Release
      or threatened Release of any Hazardous Materials into the Environment or (e)
      any
      contract, agreement or other consensual arrangement pursuant to which liability
      is assumed or imposed with respect to any of the foregoing.

    

    “Environmental
      Permit”: means any permit, approval, identification number, license or other
      authorization required under any Environmental Law.

    

    “Equipment”:
      All fixtures, equipment and tangible personal property owned by Borrower and
      located or to be located in or on, and used in connection with the construction,
      management, maintenance or operation of the Land and the Improvements or other
      locations owned or leased by Borrower from time to time or used in the operation
      of Borrower’s business from time to time.

    

    “ERISA”:
      Means the Employee Retirement Income Security Act of 1974, as amended from
      time
      to time.

    

    “ERISA
      Affiliate”: Means any trade or business (whether or not incorporated) that is
      under common control with Borrower and is treated as a single employer pursuant
      to Section 414 of the Code or Section 4001 of ERISA

    

    “ERISA
      Event”: Means (a) a Reportable Event with respect to a Benefit Plan for which
      notice to the PBGC is not waived by regulation; (b) a withdrawal by Borrower,
      any Subsidiary or any of their respective ERISA Affiliates from a Benefit Plan
      subject to Section 4063 of ERISA during a plan year in which it was a
      substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
      of operations that is treated as a termination under Section 4062(e) of ERISA;
      (c) a complete or partial withdrawal by Borrower, any Subsidiary or any of
      their
      respective ERISA Affiliates from a multiemployer plan, notification of Borrower,
      any Subsidiary or any of their respective ERISA Affiliates concerning the
      imposition of withdrawal liability or notification that a multiemployer plan
      is
      insolvent or is in reorganization within the meaning of Title IV of ERISA;
      (d)
      the filing by Borrower, any Subsidiary or any of their respective ERISA
      Affiliates of a notice of intent to terminate a Benefit Plan; (e) with respect
      to a Benefit Plan, the failure to satisfy the minimum funding standard of
      Section 412 of the Code and Section 302 of ERISA, whether or not waived; (f)
      the
      failure to make by its due date a required contribution under Section 412(m)
      of
      the Code (or Section 430(j) of the Code, as amended by the Pension Protection
      Act of 2006) with respect to any Benefit Plan or the failure to make any
      required contribution to a multiemployer plan; (g) the filing pursuant to
      Section 412(d) of the Code and Section 303(d) of ERISA (or, after the effective
      date of the Pension Protection Act of 2006, Section 412(c) of the Code and
      Section 302(c) of ERISA) of an application for a waiver of the minimum funding
      standard with respect to any Pension Plan; (h) the filing by the PBGC of a
      petition under Section 4042 of ERISA to terminate any Benefit Plan or to appoint
      a trustee to administer any Benefit Plan; or (i) the occurrence of a nonexempt
      prohibited transaction (within the meaning of Section 4975 of the Code or
      Section 406 of ERISA) which could result in liability to
      Borrower.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    “Event
      of
      Default”: Any event set forth in Section 6.1.

    

    “Excusable
      Delay” means a delay, not to exceed a total of thirty (30) days, caused by
      unusually adverse weather conditions which have not been taken into account
      in
      the construction schedule, fire, earthquake or other acts of God, strikes,
      lockouts, acts of public enemy, riots or insurrections or any other unforeseen
      circumstances or events beyond the control of Borrower (except financial
      circumstances or events or matters which may be resolved by the payment of
      money), and as to which Borrower notifies Agent in writing within five (5)
      days
      after such occurrence; provided, however, no Excusable Delay shall extend the
      Completion Date without the prior written consent of Agent, in its reasonable
      discretion, or suspend or abate any obligation of Borrower or any Guarantor
      or
      any other person to pay any money.

    

    “Federal
      Funds Rate”: As of any date of determination, the rate set forth in the weekly
      statistical release designated as H.15(519), or any successor publication,
      published by the Federal Reserve Board (including any such successor,
      "H.15(519)") for such date opposite the caption "Federal Funds (Effective)".
      If
      for any relevant date such rate is not yet published in H.15(519), the rate
      for
      such date will be the rate set forth in the daily statistical release designated
      as the Composite 3:30 p.m. Quotations for U.S. Government Securities, or any
      successor publication, published by the Federal Reserve Bank of New York
      (including any such successor, the "Composite 3:30 p.m. Quotation") for such
      date under the caption "Federal Funds Effective Rate". If on any relevant date
      the appropriate rate for such date is not yet published in either H.15(519)
      or
      the Composite 3:30 p.m. Quotation, the rate for such date will be the arithmetic
      mean of the rates for the last transaction in overnight Federal funds arranged
      prior to 9:00 a.m. (New York City time) on that date by each of three leading
      brokers of Federal funds transactions in New York City selected by
      Agent.

    

    “Fee
      Letter”: That certain Fee Letter between Borrower and U.S. Bank dated as of
      August 21, 2008.

    

    “GAAP”:
      Generally accepted accounting principles set forth in the opinions and
      pronouncements of the Accounting Principles Board of the American Institute
      of
      Certified Public Accountants and statements and pronouncements of the Financial
      Accounting Standards Board or in such other statements by such other entity
      as
      may be approved by a significant segment of the accounting profession, which
      are
      applicable to the circumstances as of any date of
      determination.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    “General
      Contractor”: The general contractor approved by Agent for construction of the
      Improvements, which approval shall not be unreasonably withheld, conditioned
      or
      delayed. 

    

    “Governmental
      Authority”: Means any governmental or quasi-governmental entity, including any
      court, department, commissions, board, bureau, agency, administration, service,
      district or other instrumentality of any governmental entity.

    

    “Governmental
      Requirements”: All laws, statutes, codes, ordinances, and governmental rules,
      regulations and requirements applicable to Borrower, Agent and the
      Property.

    

    “Guarantor”:
      GameTech Mexico S. de. R.L. de C.V, GameTech Canada Corporation and GameTech
      Arizona Corporation, collectively and jointly and severally, together with
      any
      Subsidiary which becomes a Guarantor after the date hereof pursuant to the
      provisions of Section 5.26.

    

    “Guaranty”:
      That certain Guaranty of even date herewith executed by Guarantor in favor
      of
      Agent, as supplemented from time to time as provided therein.

    

    “Hazardous
      Materials”: Means materials, chemicals, substances, compounds, wastes,
      pollutants and contaminants, in any form, including all explosive or radioactive
      substances or wastes, mold, petroleum or petroleum distillates, asbestos or
      asbestos-containing materials, polychlorinated biphenyls, radon gas and
      infectious or medical wastes, in each case to the extent regulated pursuant
      to
      any Environmental Law.

    

    “Improvements”:
      The buildings and improvements which are to be placed or constructed upon the
      Land in accordance with the Plans approved by Agent in accordance with Section
      3.2(c).

    

    “In
      Balance”: Shall have the meaning given such term in Section 3.3.

    

    “Inspecting
      Architect”: Any independent architect, engineer or consultant selected by
      Agent.

    

    “IP
      Security Agreement”: That certain Intellectual Property Security Agreement of
      even date executed by Borrower in favor of Agent. 

    

    “Land”:
      The land legally described on Exhibit C attached hereto and hereby made a part
      hereof.

    

    “Lead
      Arranger”: Means U.S. Bank National Association, as the lead arranger of the
      Loans. 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    “Lenders”:
      Each Lender that is a party to this Agreement and which hereafter becomes party
      to this Agreement, collectively, and each of their respective permitted
      successors and assigns.

    

    “L/C
      Advance”: An advance of proceeds pursuant to the Line of Credit Loan.

    

    “L/C
      Draw
      Request”: A written request by Borrower for an advance of Line of Credit Loan
      proceeds under this Agreement in substantially the form of Exhibit B attached
      hereto.

    

    “L/C
      Expiration Date” Shall having the meaning given in Section 1.2.

    

    “L/C
      Lender”: Means a Lender with an outstanding Line of Credit
      Commitment.

    

    “L/C
      Note”: The Revolving Promissory Note of even date herewith, executed and
      delivered by Borrower to the order of Agent for the benefit of the L/C Lenders,
      in the aggregate maximum principal amount of up to Two Million Dollars
      ($2,000,000), to evidence the Line of Credit Loan, as the same may be amended,
      modified, replaced or substituted from time to time.

    

    “Line
      of
      Credit Commitment”: Shall have the meaning given in Section 1.1(a).

    

    “Line
      of
      Credit Commitment Percentage”: Means a Lender’s share of all right, title and
      interest in the Line of Credit Loan.

    

    “Line
      of
      Credit Loan”: Shall have the meaning given in Section 1.1(a)

    

    “Loan
      or
      Loans”: Means a extension of credit by a Lender under this Agreement in the form
      of a Line of Credit Loan and/or the Term Loan, as the context
      requires.

    

    “Loan
      Documents”: The documents described in this Agreement, which evidence and secure
      the Loan, including, but not limited to, the Note, the Deed of Trust, this
      Agreement, the Assignments, the Control Agreement, the IP Security Agreement,
      the Security Agreement, the Environmental Indemnity, the Guaranty, any Swap
      Contracts and including any amendments thereof and supplements thereto executed
      by Borrower, Guarantor and/or and Agent.

    

    “Majority
      Lenders”: Lenders holding, in the aggregate, not less than fifty one percent
      (51%) of the Committed Amount or, if no such principal amount is then
      outstanding, not less than fifty one percent (51%) of the Commitment
      Percentages; provided, however, that unless there is only one Lender with
      respect to a particular Loan, Majority Lenders shall not be less than two
      Lenders.

    

    “Maturity
      Date”: Means the respective maturity dates of the Notes as provided therein.

    

    “Note
      and
      Notes”: Means the L/C Note and/or the Term Note, as the context
      requires.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    “Obligations”:
      The obligations of Borrower to Agent and the Lenders described in the Loan
      Documents and any other obligations of the Borrower to the Lenders of any nature
      whatsoever.

    

    “PBGC”:
      Means the Pension Benefit Guaranty Corporation.

    

    “Permitted
      Encumbrances”: The liens, charges and encumbrances on title to the Property
      listed on Exhibit D hereto, if any.

    

    “Person”:
      Any natural person, corporation, limited liability company, partnership (general
      or limited), limited liability partnership, joint venture, firm, association,
      trust, unincorporated organization, government or governmental agency or
      political subdivision or any other entity, whether acting in an individual,
      fiduciary or other capacity.

    

    “Plans”:
      The final working plans for the Improvements, including drawings,
      specifications, details and manuals, as approved by Agent, which approval shall
      not be unreasonably withheld, conditioned or delayed.

    

    “Project
      Architect”: Means the architect approved by Agent with respect to preparation of
      the Plans.

    

    “Property”:
      The Land, the Improvements and the Equipment.

    

    “Protective
      Advances”: Any amount advanced or expended by the Agent and/or the Lenders as
      reasonably necessary to preserve or protect the Lenders' rights with respect
      to
      the Loans.

    

    “Regulation
      D”: Regulation D (or any substitute regulations) of the Board of Governors of
      the Federal Reserve System (or any successor thereto), together with all
      amendments from time to time thereto.

    

    “Reportable
      Event”: Means, with respect to any Benefit Plan any of the events set forth in
      Section 4043(c) of ERISA or the regulations issued thereunder, other than events
      for which the thirty (30) day notice period has been waived.

    

    “Restricted
      Subsidiary”: Means any Subsidiary of Borrower that is not an Unrestricted
      Subsidiary.

    

    “Security
      Agreement”: That certain Security Agreement of even date executed by Borrower
      and Guarantor in favor of Agent. 

    

    “Subsidiary”:
      Means a corporation, partnership, joint venture, limited liability company
      or
      other business entity, in each case, of which Borrower is the beneficial owner
      of a majority of the shares or securities or other interests having ordinary
      voting power for the election of directors or other governing body.

    
      
        
        

      

      
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    “Swap
      Contract”: Means any agreement, whether or not in writing, relating to any Swap
      Transaction, including, unless the context otherwise clearly requires, any
      form
      of master agreement (the "Master Agreement") published by the International
      Swaps and Derivatives Association, Inc., or any other master agreement, entered
      into between Swap Counterparty and Borrower (or its Affiliate) in connection
      with the Loans, together with any related schedule and confirmation, as amended,
      supplemented, superseded or replaced from time to time, relating to or governing
      any Swap Transaction.

    

    “Swap
      Counterparty”: Means any of the Lenders or an Affiliate of any of the Lenders,
      in its capacity as counterparty under any Swap Contract.

    

    “Swap
      Transaction”: Means (a) any and all rate swap transactions, basis swaps, forward
      rate transactions, commodity swaps, commodity options, forward commodity
      contracts, equity or equity index swaps or options, bond or bond price or bond
      index swaps or options or forward bond or forward bond price or forward bond
      index transactions, interest rate options, forward foreign exchange
      transactions, cap transactions, floor transactions, collar transactions,
      currency swap transactions, cross-currency rate swap transactions, currency
      options, or any other similar transactions or any combination of any of the
      foregoing (including any options to enter into any of the foregoing), whether
      or
      not any such transaction is governed by or subject to any Master Agreement,
      or
      (b) any and all transactions of any kind, and the related confirmations, which
      are subject to the terms and conditions of, or governed by, any form of Master
      Agreement (as such agreement may be amended, restated, extended, supplemented
      or
      otherwise modified in writing from time to time), including any such obligations
      or liabilities under any Master Agreement, entered into between Swap
      Counterparty and Borrower (or its Affiliate) in connection with the
      Loans.

    

    “Sworn
      Construction Cost Statement”: An itemized, certified budget for construction of
      the Improvements, signed and sworn to by Borrower, approved by Agent pursuant
      to
      the provisions of Section 3.2 (d) as the same may be amended or supplemented
      with the approval of Agent from time to time, which approval shall not be
      unreasonably withheld, conditioned or delayed.

    

    “Term
      Closing Disbursement”: That portion of the Term Loan disbursed on the Closing
      Date, in accordance with a settlement statement approved by Borrower and Agent,
      for (i) refinancing of existing debt of Borrower, (ii) acquisition of the
      Property, (iii) deposit into the Control Account of the sum of $2,250,000 and
      (iv) closing costs, expenses and fees payable under this Agreement.

    

    “Term
      Loan”: Shall have the meaning given in Section 1.5.

    

    “Term
      Loan Commitment”: Means the principal amount of Thirty Eight Million Dollars
      ($38,000,000).

    
      
        
        

      

      
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    “Term
      Loan Commitment Percentage”: Means a Lender’s share of all right, title and
      interest in the Term Loan.

    

    “Term
      Lender”: Means a Lender with an outstanding Term Loan Commitment

    

    “Term
      Note”: The Promissory Note of even date herewith, each executed and delivered by
      Borrower to the order of Agent for the benefit of the Term Lenders, in the
      aggregate maximum principal amount of Thirty Eight Million Dollars
      ($38,000,000), to evidence the Term Loan, as the same may be amended, modified,
      replaced or substituted from time to time.

    

    “Tests”:
      Such soil tests, chemical tests, materials tests and other tests and analyses
      as
      are reasonably required to confirm, with relative certainty, the absence of
      toxic or hazardous substances from the Property.

    

    “Title
      Company”: Stewart Title Guaranty Company.

    

    “Title
      Policy”: A loan policy of title insurance in favor of Agent issued by the Title
      Company and complying with the requirements of Exhibit E attached hereto and
      hereby made a part hereof.

    

    “Unrestricted
      Subsidiary”: Means a Subsidiary of Borrower which (a) has no indebtedness other
      than non-recourse debt, (b) is not a party to any agreement, contract,
      arrangement or understanding with Borrower or any of its other Subsidiaries
      unless the terms there are no less favorable to the Borrower or its other
      Subsidiaries than those that might be obtained from Persons who are not
      Affiliated with Borrower or its Subsidiaries, (c) is a Person with respect
      to
      which neither Borrower nor any of its Restricted Subsidiaries has any direct
      or
      indirect obligation (i) to subscribe for additional ownership interest or (ii)
      to maintain or preserve such Person’s financial condition or to cause such
      Person to achieve any specified levels of operating results; and (d) has not
      guaranteed or otherwise directly or indirectly provided credit support for
      any
      indebtedness of Borrower or any Restricted Subsidiary.

    

    “U.S.
      Bank”: U.S. Bank National Association, a national banking association, in its
      capacity as a Lender, and not as Agent.

    

    “USA
      PATRIOT Act”: Means The Uniting and Strengthening America by Providing
      Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001
      (Title III of Pub. L. No. 107-56 (signed into law October 26, 2001)), as amended
      or modified from time to time.

     

    
      
        
        

      

      
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    I.
      LOAN FACILITIES

    

    1.1 Line
      of Credit Commitment.
      

    

    (a) During
      the Availability Period described below, each L/C Lender severally, but not
      jointly, agrees to provide a line of credit (the “Line of Credit Loan”) to the
      Borrower, pro rata in accordance with its Line of Credit Commitment Percentage.
      The amount of the line of credit (the "Line of Credit Commitment") is Two
      Million Dollars ($2,000,000).

    

    (b) This
      is a
      revolving line of credit. During the Availability Period, the Borrower may
      repay
      principal amounts and reborrow them.

    

    (c) The
      Borrower agrees not to permit the principal balance outstanding under the Line
      of Credit Loan to exceed the Line of Credit Commitment. If the Borrower exceeds
      this limit, the Borrower will immediately pay the excess to the L/C Lenders
      upon
      the Agent's demand.

    

    (d) The
      Line
      of Credit Loan will be evidenced by the L/C Note.

    

    1.2. Availability
      Period.

    

    The
      Line
      of Credit Loan is available (the “Availability Period”) between the date of this
      Agreement and August 31, 2010, or such earlier date as the availability may
      terminate as provided in this Agreement (the "L/C Expiration Date"). Upon the
      occurrence of an Event of Default the L/C Lenders may, upon prior written notice
      to Borrower, suspend or terminate their commitments to make L/C Advances without
      consent of Borrower. 

    

    The
      Availability Period for the Line of Credit Loan will be considered for extension
      provided Borrower has made a request in writing to Agent for extension of the
      Availability Period within ninety (90) days prior to the first anniversary
      of
      the Closing Date and Agent, in its sole discretion, has sent to the Borrower
      a
      written notice of extension effective as of the L/C Expiration Date (the
“Renewal Notice”) and Borrower has accepted such extension by written notice to
      Agent, including Borrower’s agreement to pay the renewal fee, within ten (10)
      days after Borrower’s receipt of the Renewal Notice. If the Line of Credit Loan
      is renewed, it will continue to be subject to all the terms and conditions
      set
      forth in this Agreement except as modified by the Renewal Notice. If this line
      of credit is renewed, the term “L/C Expiration Date” shall mean the date set
      forth in the Renewal Notice as the L/C Expiration Date and the same process
      for
      renewal will apply to any subsequent renewal of this line of credit. A renewal
      fee may be charged at the Agent’s option. The amount of the renewal fee will be
      specified in the Renewal Notice.

    

    1.3 Advances
      under L/C Loan.

    

    Borrower
      shall give Agent notice pursuant to an L/C Draw Request of each requested
      borrowing of an L/C Advance. Each L/C Draw Request shall be delivered to Agent
      before 9:00 a.m. on the date three (3) Business Days, in the case of a LIBOR
      Rate Loan (as defined in the L/C Note) or two (2) Business Days, in the case
      of
      a Base Rate Loan (as defined in the L/C Note) prior to the proposed date of
      such
      borrowing. Each L/C Draw Request shall be irrevocable once given and shall
      be
      binding on Borrower. Each L/C Draw Request shall be executed by a representative
      of Borrower duly designated and authorized by Borrower to sign L/C Draw Requests
      (an “Authorized Signer”) in a writing addressed to Agent. As of the date hereof,
      either of Jay Meilstrup, President or Marcia Martin, CFO, acting alone, is
      an
      Authorized Signer. The L/C Lenders shall use best efforts to fund all L/C Draw
      Requests on the next Business Day following receipt of a completed L/C Draw
      Request. In lieu of submitting an L/C Draw Request, and provided no Event of
      Default has occurred and remains continuing, and until thirty-five (35) days
      prior to the L/C Expiration Date, Advances may be funded and payments made
      in
      connection with Treasury Management Services provided by U.S. Bank, in its
      capacity as L/C Lender and advances made to Borrower under such Treasury
      Management Services shall be deemed to be L/C Advances hereunder. In this
      regard, U.S. Bank reserves the right to terminate use of the commercial loan
      sweep service in connection with the L/C Loan upon one (1) Business Day written
      notice thereof to Borrower. Subject to the satisfaction of all applicable
      conditions, the L/C Lenders, in their respective pro rata shares, will make
      the
      proceeds of such borrowings available to Borrower no later than 11:00 a.m.
      on
      the date and at the account specified by Borrower in such L/C Draw
      Request

    
      
        
        

      

      
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    1.4 Letters
      of Credit.
      

    

    (a) During
      the Availability Period, at the request of the Borrower, the L/C Lenders, pro
      rata according to their Line of Credit Commitment Percentages, will
      issue:

    

    (i) commercial
      letters of credit with a maximum maturity not to extend beyond the L/C
      Expiration Date. Each commercial letter of credit will require drafts payable
      at
      sight.

    

    (ii) standby
      letters of credit with a maximum maturity not to extend beyond the L/C
      Expiration Date. 

    

    (b) The
      amount of the letter[s] of credit outstanding at any one time (including the
      drawn and unreimbursed amounts of the letter[s] of credit) may not exceed Two
      Million Dollars ($2,000,000).

    

    (c) In
      calculating the principal amount outstanding under the Line of Credit Loan,
      the
      calculation shall include the amount of any letters of credit outstanding,
      including amounts drawn on any letters of credit and not yet
      reimbursed.

    

    (d) The
      Borrower agrees:

    

    (i) Any
      sum
      drawn under a letter of credit shall be added to the principal amount
      outstanding under the L/C Note and will bear interest and be due as described
      in
      the L/C Note.

    
      
        
        

      

      
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    (ii) If
      there
      is a default under this Agreement, upon written demand from Agent to immediately
      prepay and make the L/C Lenders whole for any outstanding letters of
      credit.

    

    (iii) The
      issuance of any letter of credit and any amendment to a letter of credit is
      subject to the Agent's written approval, which approval shall not be
      unreasonably withheld, conditioned or delayed and must be in form and content
      reasonably satisfactory to the Agent and in favor of a beneficiary acceptable
      to
      the Agent, in its reasonable discretion.

    

    (iv) To
      sign
      the Agent's then current form Application and Agreement for Commercial Letter
      of
      Credit. Borrower acknowledges that Agent has previously delivered to Borrower
      the form of such agreements in effect on the date hereof. 

    

    (v) To
      pay:
      (x) a fronting fee to Agent for issuance of a letter of credit equal to 0.125%
      of the face amount of each letter of credit issued, payable upon issuance of
      each letter of credit, plus Agent’s other customary fees that the Agent notifies
      the Borrower will be charged for issuing and processing letters of credit for
      the Borrower, payable within ten Business Days after demand by Agent and (y)
      a
      fee equal to 2.00% per annum on the aggregate amount of all outstanding letters
      of credit, payable quarterly, in arrears on the tenth Business Day after the
      end
      of each March, June, September and December, commencing with the first such
      date
      to occur after the issuance of a letter of credit hereunder.

    

    1.5 The
      Term Loan.
      Subject
      to the terms, provisions and conditions of this Agreement, each Term Lender
      severally, but not jointly, agrees to lend to Borrower, pro rata in accordance
      with its Term Loan Commitment Percentage, and Borrower agrees to borrow from
      the
      Term Lenders, a term loan in the principal amount of Thirty Eight Million
      Dollars ($38,000,000) (the “Term Loan”) in accordance with the terms hereof on
      the Closing Date, for the purpose of (i) refinancing existing debt of Borrower,
      (ii) the acquisition of the Property, (iii) funding the sum of $2,250,000 into
      the Control Account and (iv) constructing the Improvements and otherwise
      developing the Property. The Term Loan shall be evidenced by the Term Note.
      

    

    1.6 Construction
      Proceeds.
      Borrower acknowledges that a portion of the Term Loan shall be used to pay
      for
      costs of construction of the Improvements. Borrower authorizes Agent to deposit
      the Construction Proceeds into a deposit account with Agent on the Closing
      Date
      to be disbursed from time to time in accordance with the terms of this
      Agreement. Borrower further acknowledges that the Term Loan shall be deemed
      fully advanced to Borrower notwithstanding the deposit of the Construction
      Proceeds with Agent and Borrower shall be obligated to pay interest on the
      full
      amount of the Term Loan from the Closing Date. Agent shall hold the Construction
      Proceeds in an interest-bearing account of Agent’s reasonable selection with
      interest earned thereon to be part of the Construction Proceeds. The
      Construction Proceeds are hereby pledged to Agent as agent for the benefit
      of
      the Term Lenders as additional security for the Loans, and Borrower hereby
      grants and conveys to Agent, as agent for the Term Lenders a security interest
      in all funds so deposited with Agent, as additional security for the Term Loan.
      

    
      
        
        

      

      
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    1.7 Fees.
      On the
      date hereof and on or before the dates set forth therein, Borrower shall pay
      U.S. Bank all fees, costs and expenses referenced in the Fee Letter.

    

    II.
      CONDITIONS
      OF BORROWING

    

    Neither
      Agent nor the Lenders shall be required to make any advances hereunder until
      the
      requirements and conditions set forth below and in Article III have been
      completed and fulfilled to the reasonable satisfaction of Agent, at Borrower's
      sole cost and expense. It is agreed, however, that Agent and the Lenders may,
      in
      their discretion, make advances prior to completion and fulfillment of any
      or
      all of such requirements and conditions, without waiving its right to require
      such completion and fulfillment before any additional advances are made.

    

    2.1 Loan
      Documents.
      On or
      before the date of closing of the Loans, Borrower shall execute and deliver
      (or
      cause to be executed and delivered) to Agent the following documents in form
      and
      substance acceptable to Agent and to its counsel, to evidence and secure the
      Loans:

    

    (a) The
      Notes
      payable to Agent as agent for the Lenders.

    

    (b) The
      Deed
      of Trust.

    

    (c) The
      Guaranty.

    

    (d) The
      Security Agreement.

    

    (f) The
      IP
      Security Agreement.

    

    (g) The
      Control Agreement.

    

    (h) All
      other
      Loan Documents.

    

    (i) Insurance
      policies (conforming to the requirements of Exhibit F) written by insurers
      reasonably satisfactory to Agent and in amounts reasonably satisfactory to
      Agent.

    

    (j) A
      flood
      zone certification from a qualified Consultant indicating that the improvements
      to be constructed on the Property are not located in a flood plain or any other
      flood prone area, as designated by any governmental agency; provided however
      that if the Property is so located, Borrower shall obtain and deliver to Agent
      evidence of flood insurance reasonably acceptable to Agent.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    (k) A
      copy of
      Borrower's Certificate of Incorporation and Bylaws certified by the Secretary
      of
      Borrower as being true, correct, complete, unamended and in full force and
      effect), and evidence, satisfactory to Agent, that Borrower and each Guarantor
      has complied with the above mentioned documents in executing the Loan Documents;
      together with all formation documents for each Guarantor.

    

    (l) Such
      other documents as Agent may reasonably require to evidence and secure the
      Loan.

    

    To
      the
      extent permitted by law, Agent may designate which of the Loan Documents are
      to
      be placed of record, the order of recording thereof, and the offices in which
      the same are to be recorded. Borrower shall pay all documentary, recording
      and/or registration taxes and/or fees, if any, due upon the Loan
      Documents.

    

    2.2 Recordation
      of Deed of Trust; Title Insurance.
      The
      Deed of Trust shall have recorded, and Agent shall have received the Title
      Company’s commitment to issue the Title Policy. 

    

    2.3 Opinion
      of Borrower's Attorneys.
      Agent
      shall have received from counsel for Borrower and Guarantor a current written
      opinion or opinions, in scope, form and substance reasonably acceptable to
      Agent.

    

    2.4 Fees.
      Borrower shall have paid to U.S. Bank each of the fees required pursuant to
      the
      terms of the Fee Letter.

    

    III.
      DISBURSEMENT OF CONSTRUCTION PROCEEDS

    

    3.1 General.
      Subject
      to the terms and conditions set forth in this Agreement, and provided no Event
      of Default has occurred and is continuing, Agent shall make disbursements from
      the Construction Proceeds in such amounts as Borrower may request in accordance
      with the terms of this Agreement. All monies disbursed by Agent and the Lenders
      from the Construction Proceeds (including amounts payable to Agent and the
      Lenders and disbursed by Agent and the Lenders to themselves pursuant to the
      terms hereof) shall constitute loans made to Borrower under this Agreement,
      evidenced by the Term Note and this Agreement and secured by the other Loan
      Documents, and interest shall be computed thereon, as prescribed by this
      Agreement and the Term Note, from the Closing Date.

    

    Agent
      reserves the right to disburse amounts which are allocated to any of the
      designated items in the Sworn Construction Cost Statement for such other
      purposes or in such different proportions as Agent may, in its reasonable
      discretion, deem necessary or advisable. Borrower may not reallocate items
      in
      the Sworn Construction Cost Statement without the prior written consent of
      Agent, which consent shall not be unreasonably withheld, conditioned or
      delayed.

    
      
        
        

      

      
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    No
      disbursement shall constitute a waiver of any condition precedent to the
      obligation of Agent to make any further disbursement or preclude Agent from
      thereafter declaring the failure of Borrower to satisfy any such condition
      precedent to be an Event of Default. All conditions precedent to the obligation
      of Agent to make any disbursement are imposed hereby solely for the benefit
      of
      Agent and the Lenders, and no other party may require satisfaction of any such
      condition precedent or shall be entitled to assume that Agent and the Lenders
      will make or refuse to make any disbursement in the absence of strict compliance
      with such condition precedent.

    

    In
      the
      event that the total amount of the Construction Proceeds exceeds the amount
      needed to fully pay all cost allocations set forth on the Sworn Construction
      Cost Statement approved by Agent, Agent shall disburse such excess sums to
      Borrower following Completion. 

    

    In
      no
      event shall Agent have any obligation to make any disbursement if the requested
      disbursement, plus the sum of all the previous disbursements, would exceed
      the
      Construction Proceeds.

    

    Disbursement
      of Construction Proceeds, at Agent’s option, may be made by direct or joint
      check payment to any or all persons entitled to payment for work or services
      performed or material furnished in connection with the construction of the
      Improvements. Agent shall not be required to, and has no responsibility to,
      supervise the proper application or distribution of funds to third
      parties.

    

    3.2 Conditions
      to First Disbursement of Construction Proceeds.

    

    Agent
      shall not be obligated to make any disbursement of the Construction Proceeds
      until Borrower has delivered to Agent the following documents, agreements and
      instruments and Agent has notified Borrower of its approval thereof in writing,
      such approval not to be unreasonably withheld, delayed or conditioned. It shall
      be an Event of Default hereunder if Borrower shall fail to deliver all of the
      following documents, agreements and instruments to Agent within fifteen (15)
      days after the Closing Date:

    

    (a) The
      General Contractor's construction contract, and the fully executed Assignment
      of
      Construction Agreements and the General Contractor’s Consent attached
      thereto.

    

    (b) The
      fully
      executed Assignment of Architectural Agreements and the Architect’s Consent
      attached thereto.

    

    (c) The
      Plans. 

    

    (d) The
      Sworn
      Construction Cost Statement.

    

    (e) Borrower's
      estimated schedules for construction of the Improvements and for disbursement
      of
      the Construction Proceeds.

    
      
        
        

      

      
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    (f) Copies
      of
      all building permits required to complete construction of the Improvements
      together with a schedule of all necessary licenses and permits which must be
      obtained in order to occupy and operate the Property.

    

    3.3 Loan
      In Balance.
      Agent
      shall not be obligated to make any disbursement of Construction Proceeds unless
      and until Borrower has provided Agent with evidence, acceptable to Agent, that
      the Loan is "in Balance." The Loan is in Balance if all remaining unpaid costs
      for Completion of the Improvements, as reasonably determined by Agent, do not
      exceed the amount of the Construction Proceeds not yet disbursed by the Agent
      plus the amount of the Line of Credit Commitment which has not been advanced
      by
      L/C Lender. 

    

    Notwithstanding
      any provision of this Agreement to the contrary, in the event that Agent or
      Borrower reasonably determines that the undisbursed balance of Construction
      Proceeds plus any remaining unadvanced portion of the Line of Credit Commitment
      is insufficient to cover any cost allocation set forth on the Sworn Construction
      Cost Statement, and/or to complete the Improvements, and to pay all costs and
      expenses of completion, it shall notify the other parties hereto of such
      determination, and Borrower shall, within three (3) Business Days, deposit
      with
      Agent funds equal to said insufficiency in order to bring the Loan back into
      Balance.

    

    3.4 Inspections.
      Agent,
      the Title Company, the Inspecting Architect, Consultants and their
      representatives shall have access to the Property at all reasonable times and
      upon reasonable prior notice and shall have the right to enter the Property
      and
      to conduct such inspections thereof as they shall deem necessary or desirable
      for the protection of the interests of Agent and the Lenders.

    

    Prior
      to
      Completion, Agent may retain the Inspecting Architect, and any other Consultants
      deemed necessary or desirable by Agent, at Borrower's expense (but not to exceed
      in the aggregate $25,000 for such Inspecting Architect and other Consultants),
      to make periodic inspections of the Property and to review all change orders
      relating to the Property. Agent may request the Inspecting Architect, before
      any
      disbursement of Construction Proceeds is made, to inspect all work and materials
      for which payment is requested and all other work upon the Property, review
      the
      current Construction Draw Request, approve such work and Construction Draw
      Request and/or submit to Agent a progress inspection report. Following
      Completion, with thirty (30) days written notice to Borrower, Agent may, at
      Borrower’s expense, also retain such other Consultants as Agent deems reasonably
      necessary or convenient to perform such services as may, from time to time,
      be
      required by Agent in connection with the Loan, this Agreement, the other Loan
      Documents or the Property.

    

    Neither
      Borrower nor any third party shall have the right to use or rely upon the
      reports of the Inspecting Architect or any other reports generated by Agent
      or
      its Consultants for any purpose whatsoever, whether made prior to or after
      commencement of construction. Borrower shall be responsible for making its
      own
      inspections of the Property during the course of construction and shall
      determine to its own satisfaction that the work done and materials supplied
      are
      in accordance with applicable contracts with its contractors. By disbursing
      funds after any inspection of the Property by Agent or the Inspecting Architect,
      Agent shall not be deemed to waive any Event of Default, waive any right to
      require construction defects to be corrected, or acknowledge that all
      construction conforms with the Plans.

    
      
        
        

      

      
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    Notwithstanding
      any provision of this Agreement to the contrary, in the event that Agent should
      reasonably determine that the actual quality or value of the work performed
      or
      the materials furnished does not correspond with the quality or value of the
      work required by the Plans, Agent shall notify Borrower of its objections
      thereto, and, upon demand, Borrower shall correct the conditions to which Agent
      reasonably objects to Agent’s reasonable satisfaction.

    

    3.5 Responsibility
      of Agent and the Lenders.
      It is
      expressly understood and agreed that neither Agent nor the Lenders assume any
      liability or responsibility for the sufficiency of the Construction Proceeds
      to
      complete the Improvements, for protection of the Property, for the satisfactory
      Completion of the Property, for inspection during construction, for the adequacy
      or accuracy of the Sworn Construction Cost Statement, for any representations
      made by Borrower, or for any acts on the part of Borrower or its contractors
      to
      be performed in the construction of the Improvements.

    

    3.6 Advance
      Procedures.

    

    (a) Borrower
      shall submit to Agent a copy of the Sworn Construction Cost Statement for the
      Improvements, and shall advise Agent of the names of each Contractor. If
      requested by Agent, Borrower shall also furnish to Agent a copy of each contract
      with each of the Contractors. Borrower shall keep the Agent advised at all
      times
      of the names of all Contractors, and of the type of work, material or services
      and of the dollar amount covered by each of their respective contracts with
      Borrower. It is understood that only Contractors whose names, contract
      descriptions and, after a request therefor, contracts have been furnished to
      Agent shall be entitled to receive disbursements of Construction Proceeds under
      this Agreement. Borrower shall also provide or cause to be provided to Agent
      a
      date down of the Title Policy upon Completion of the Improvements.

    

    (b) Borrower
      shall refrain from commencing construction of, and from accepting delivery
      of
      materials for, the Property prior to the recording of the Deed of
      Trust.

    

    (c) Borrower
      may obtain disbursements to Contractors on a percentage of a completion basis
      and only to the extent of the amount of the contract work satisfactorily
      completed or materials actually incorporated into the Property by each such
      Contractor in accordance with his contract, less a ten percent (10%) retainage
      ("Retainage"), and Borrower agrees that all sums requested hereunder for
      disbursement to each Contractor shall not exceed that amount. Borrower may
      not
      obtain disbursements to Contractors for the cost of materials acquired for
      the
      Property but not yet incorporated therein, unless the same does not exceed
      $10,000, and Agent has approved (1) reasonably acceptable evidence that Borrower
      has acquired title to the same and that the same are covered by the insurance
      required by the Deed of Trust; (2) the place of storage therefor is on the
      Land
      or in a secure or bonded warehouse located in the jurisdiction in which the
      Land
      is situated; (3) the protection and security provided therefor; and (4) a
      schedule for the prompt incorporation thereof into the Property, and unless
      the
      Inspecting Architect has verified and approved the cost and acquisition of
      said
      materials, their physical presence at the approved storage site, and the
      security and protection provided therefor. Agent shall not be required to make
      the final disbursement of the Retainage for the payment of the full amount
      of
      each Contractor's contract until Agent is satisfied in its reasonable discretion
      that the Property has been completed substantially in accordance with the
      approved Plans, and all requirements set forth in this Agreement have been
      fully
      complied with, including, but not limited to, the requirements to evidence
      Completion, and satisfaction of each of the following
      requirements:

    
      
        
        

      

      
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    (1) Receipt
      by Agent of both (i) lien waivers or releases from all Contractors,
      subcontractors, laborers and materialmen employed in furnishing labor or
      materials in connection with the construction of the Improvements, and (ii)
      title policy endorsements in form and content satisfactory to Agent in its
      good
      faith discretion (including an endorsement insuring lien free completion of
      the
      improvements);

    

    (2) The
      later
      of a period of (i) forty (40) days shall have elapsed after recordation and
      serving of a valid notice of completion (as provided in Chapter 108 of the
      Nevada Revised Statutes) or if such notice has not been recorded and served,
      and
      (ii) ninety (90) days shall have elapsed after the date of completion of
      construction of the Improvements (as provided in Chapter 108 of the Nevada
      Revised Statutes);

    

    (3) If
      required by Agent, a certificate of occupancy for the Improvements;
      and

    

    (4) Receipt
      by Agent of final "as built" plans for the Improvements; and

    

    (5) Receipt
      by Agent of such other certificates, assurances and opinions as Agent shall
      reasonably require.

    

    (d) Whenever
      Borrower desires to obtain a disbursement of Construction Proceeds, Borrower
      shall submit a signed Construction Draw Request, in Agent's form, to Agent
      and
      to the Inspecting Architect at least ten (10) business days prior to the date
      on
      which the requested disbursement is to be made ("Advance Date"). Borrower shall
      also simultaneously submit to Agent the following:

    

    (1) A
      certificate relating to each Contractor who is to receive a disbursement from
      the advance, signed by the Project Architect, or by another construction
      supervisor approved by Agent, stating that each such Contractor has
      satisfactorily completed the work for which disbursement (less any required
      retainage) is requested in such Construction Draw Request. Such certificate
      shall be in the form reasonably required by Agent.

    
      
        
        

      

      
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    (2) If
      required by Agent, a conditional waiver of mechanic's lien and/or materialman's
      lien, executed by the General Contractor in the amount of the lienable costs
      of
      the Property payable from the requested disbursement, together with a waiver
      of
      mechanic's lien and/or materialman's lien executed by each other Contractor
      to
      which any portion of the immediately preceding disbursement ("Prior Advance")
      of
      Construction Proceeds was paid, covering liens for all work done and materials
      supplied for which disbursement was made from the Prior Advance, in the form
      required by Agent and, if appropriate, the Title Company; provided, however,
      that with respect to the final disbursement of Construction Proceeds to be
      paid
      to the General Contractor under its contract, such mechanic's lien and/or
      materialman's lien waiver shall be unconditional. 

    

    (e) Invoices
      and such other supporting evidence as may be requested by the Agent to establish
      the cost or value of the Improvements for which disbursement is to be and has
      been made.

    

    (f) If
      requested by Agent in connection with any disbursement, Borrower shall provide
      to Agent an endorsement to and continuation of the Title Policy, showing that
      there have been no mechanics' or materialmen's liens filed since the date of
      the
      issuance of the Title Policy, and updating the effective date of the Title
      Policy to the relevant Advance Date, which endorsement shall be provided at
      Borrower's expense. If any liens or other matters, which in Agent's sole
      judgment jeopardize its security interest in the Property, are disclosed by
      said
      endorsement and continuation or are in any other manner discovered by the Title
      Company or Agent, no further disbursements shall be made until such liens or
      other matters have been waived by Agent or satisfied in a manner acceptable
      to
      Agent. Upon demand of Agent, Borrower shall immediately cause any such liens
      or
      other matters to be satisfied, of record or bonded, or affirmatively insured
      over by the Title Company, or shall make other arrangements with respect to
      the
      discharge thereof acceptable to Agent.

    

    (g) Evidence
      reasonably satisfactory to Agent that no Event of Default (or event that with
      the giving of notice and/or the passage of time could become an Event of
      Default) shall have occurred and be continuing. In no event shall Agent be
      required to make any disbursement of Construction Proceeds unless, at the time
      of the disbursement, there shall exist no Event of Default hereunder (or event
      that with the giving of notice and/or the passage of time could become an Event
      of Default), and all representations and warranties made herein shall be true
      and correct on and as of each Advance Date with the same effect as if made
      on
      that date, unless
      Agent has been notified otherwise in writing and has approved the content of
      such notice in writing in Agent’s sole discretion.

    

    (h) Agent
      may
      take such steps as it may deem appropriate, at its option, to verify the
      application of Construction Proceeds to work done and material furnished for
      the
      Improvements, and to vary the disbursement procedures herein set forth, if
      the
      same becomes necessary or desirable to assure the proper application of
      Construction Proceeds and/or to preserve the first lien status of the Deed
      of
      Trust with respect to disbursements made pursuant hereto, including, but not
      limited to, making disbursements directly to subcontractors. However, Agent
      shall not be obligated to conduct any such verification or to so vary said
      procedures.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

    (i) The
      Borrower shall keep records showing the names of all Contractors and other
      payees to whom disbursements of Construction Proceeds are made, the date of
      each
      disbursement, and the amount of each disbursement, which records may be
      inspected by Agent upon reasonable notice.

    

    (j) In
      the
      event that the Agent shall determine, in its reasonable judgment, that proper
      documentation to support a given disbursement, as required by this Agreement,
      has not been furnished, the Agent may withhold payment of all or such portion
      of
      such disbursement as shall not be so supported by proper documentation, and
      shall promptly notify Borrower of the discrepancy in or omission of such
      documentation. Such funds shall remain available for disbursement under this
      Agreement, and shall be disbursed if and when the requirements thereof and
      hereof with respect thereto are later met.

    

    (k) Borrower
      shall be responsible for making inspections of the Property during the course
      of
      construction, and shall determine to its own satisfaction that the work done
      or
      material supplied by the Contractors to whom disbursements are to be made out
      of
      each advance has been properly done or supplied in accordance with applicable
      contracts with such Contractors. The Title Company and the Agent shall not
      be
      required to conduct any inspections of the Property.

    

    (l) It
      is
      expressly understood and agreed that neither Agent nor any Lenders assume any
      liability or responsibility for the satisfactory Completion, for the adequacy
      of
      funds disbursed pursuant hereto to complete the Improvements, for inspections
      during construction, or for any acts on the part of Borrower or the Contractors
      to be performed in the construction of the Improvements.

    

    (m) Unless
      otherwise agreed by Agent, Borrower shall not be entitled to more than two
      (2)
      disbursements of Construction Proceeds per month.

    

    3.7 Additional
      Conditions to Each Disbursement.
      In
      addition to all other conditions and requirements set forth in this Agreement
      and any of the other Loan Documents, Agent may require that each of the
      following conditions be satisfied with respect to each disbursement of
      Construction Proceeds:

    

    (a) As
      of the
      date of each disbursement, no suit or proceeding at law or in equity, and no
      investigation or proceeding of any governmental body, has been instituted or,
      to
      the knowledge of Borrower, has been threatened, which in either case would
      substantially, negatively affect the condition or business operations of
      Borrower or the Property.

    

    (b) As
      of the
      date of each disbursement, no default or Event of Default under this Agreement
      or under any of the other Loan Documents shall have occurred and be continuing,
      and no event shall have occurred which, upon the service of notice and/or the
      lapse of time, would constitute an Event of Default thereunder.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    (c) As
      of the
      date of each disbursement, the representations and warranties set forth in
      Article IV of this Agreement shall each be true and correct unless Agent has
      been notified otherwise in writing and has approved the content of such notice
      in writing in Agent’s sole discretion.

    

    (d) As
      of the
      date of each disbursement, the progress of construction of the Improvements
      is
      such that it can be completed on or before the Completion Date (subject to
      Excusable Delay) specified in this Agreement for the cost originally represented
      to Agent, unless Borrower has funded any shortfall.

    

    (e) The
      Loan,
      as of the date of each disbursement, shall be in Balance as required by this
      Agreement, and the undisbursed proceeds of the Construction Proceeds, including
      the disbursement then requested, shall be adequate and sufficient to pay for
      all
      labor, materials, equipment, work, services and supplies necessary for the
      completion of the Improvements, including the installation of all fixtures
      and
      equipment required for the operation of the Improvements except to the extent
      Borrower has funded any shortfall.

    

    (f) As
      of the
      date of each disbursement, the labor, materials, equipment, work, services
      and
      supplies performed upon or furnished to the Property shall be in substantial
      accordance with the Plans, which have not been amended except as expressly
      permitted by this Agreement.

    

    (g) As
      of the
      date of each disbursement, there have been no changes in the costs of the
      Property from those set forth on the Sworn Construction Cost Statement, as
      amended by any amendment thereto heretofore delivered by Borrower to Agent
      and
      approved by Agent, if such approval is required by this Agreement.

    

    (h) As
      of the
      date of each disbursement, all bills for labor, materials, equipment, work,
      services and supplies furnished in connection with the Property, which could
      give rise to a mechanic's lien if unpaid, have been paid or will be paid out
      of
      the requested disbursement.

    

    (i) All
      claims for mechanics' liens which shall have arisen or could arise for labor,
      materials, equipment, work, services or supplies furnished in connection with
      the Property through the last day of the period covered by the requested
      disbursement have been effectively waived in writing, or will be effectively
      waived in writing when payment is made, and such written waivers have been
      delivered to Agent or its disbursing agent.

    

    (j) All
      funds
      disbursed under this Agreement to date have been utilized as specified in the
      Construction Draw Requests pursuant to which the same were disbursed,
      exclusively to pay costs incurred for or in connection with acquiring,
      constructing and developing the Land and the Property, or as otherwise approved
      by Agent in writing, and no part of the Construction Proceeds have been paid
      for
      labor, materials, equipment, work, services or supplies incorporated into or
      employed in connection with any project other than the
      Property.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    

    IV.
      REPRESENTATIONS AND WARRANTIES OF BORROWER

    

    Borrower
      represents and warrants to Agent and the Lenders that:

    

    4.1 Legal
      Status of Borrower.
      Borrower is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware and is duly registered and qualified
      to
      transact business in, and is in good standing under the laws of each
      jurisdiction where the nature of its business so requires, and has all power,
      and has or will timely obtain all necessary authority, permits, consents,
      authorizations and licenses necessary to carry on its business, to construct,
      equip, own and operate the Property and to execute, deliver and perform this
      Agreement and the other Loan Documents; all consents necessary to authorize
      the
      execution, delivery and performance of this Agreement and of the other Loan
      Documents which have been or are to be executed by and on behalf of Borrower
      have been duly obtained and are in full force and effect; this Agreement and
      such other Loan Documents have been duly authorized, executed and delivered
      by
      and on behalf of Borrower so as to constitute this Agreement and such other
      Loan
      Documents the valid and binding obligations of Borrower, enforceable in
      accordance with their terms; and Borrower has complied with all applicable
      assumed and/or fictitious name requirements of the state in which it is
      organized and of the state in which the Property is located, if
      different.

    

    4.2 Title.
      Borrower is the owner, in fee simple, of the Land, subject to no lien, charge,
      mortgage, deed of trust, restriction or encumbrance, except Permitted
      Encumbrances.

    

    4.3 No
      Breach of Applicable Agreements or Laws.
      The
      consummation of the transactions contemplated hereby and the execution, delivery
      and/or performance of this Agreement and the other Loan Documents will not
      result in any breach of or constitute a default under any mortgage, deed of
      trust, lease, bank loan, credit agreement, or other instrument or violate any
      Governmental Requirements, to which Borrower or any Guarantor is a party, or
      by
      which Borrower or any Guarantor may be bound or affected.

    

    4.4 No
      Litigation or Defaults.
      Except
      as disclosed in Schedule 4.4 attached hereto, there are no actions, suits or
      proceedings pending or, to the knowledge of Borrower, threatened in writing
      against Borrower, any Guarantor or the Property, or involving the validity
      or
      enforceability of the Loan Documents or the priority of the lien thereof, at
      law
      or in equity; and Borrower and/or Guarantor is not in default under any order,
      writ, injunction, decree or demand of any court or any administrative body
      having jurisdiction over Borrower or Guarantor.

    

    4.5 Financial
      and Other Information.
      The
      financial statements of Borrower and each Guarantor previously or hereafter
      delivered to Agent fairly and accurately present, or will fairly and accurately
      present, the financial condition of Borrower and each Guarantor as of the dates
      of such statements, and neither this Agreement nor any document, financial
      statement, financial or credit information, certificate or statement referred
      to
      herein or furnished to Agent by Borrower or any such Affiliate contains, or
      will
      contain, any untrue statement of a material fact or omits, or will omit, a
      material fact, or is or will be misleading in any material
      respect.

    
      
        
        

      

      
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    4.6 No
      Defaults under Loan Documents or Other Agreements.
      There
      is no default or Event of Default on the part of Borrower or any Guarantor
      under
      the Loan Documents or under any other document to which Borrower or any such
      Affiliate is a party and which relates to the ownership, occupancy, use,
      development, construction or management of the Property or the other assets
      of
      Borrower; and neither Borrower nor Guarantor is in default or will be in default
      in the payment of the principal or interest on any of its indebtedness for
      borrowed money, and is not in default under any instrument or agreement under
      and subject to which any indebtedness for borrowed money has been issued or
      is
      secured; and no event has occurred which, with the lapse of time or the giving
      of notice or both, would constitute an Event of Default thereunder.

    

    4.7 Property
      Costs.
      On a
      line by line and total basis, the Improvements costs shown on the Sworn
      Construction Cost Statement shall be true, correct and complete in all material
      respects, and represent the total of all costs, expenses and fees which Borrower
      expects to pay or may be or become obligated to pay to construct the
      Improvements.

    

    4.8 Utilities,
      Etc.
      Telephone services, gas, electric power, storm sewers, sanitary sewer and water
      facilities are available to the boundaries of the Land, adequate to serve the
      Property and not subject to any conditions (other than normal charges to the
      utility supplier) which would limit the use of such utilities. All streets
      and
      easements necessary for construction and operation of the Property are available
      to the boundaries of the Property.

    

    4.9 Ownership
      of Property.
      Borrower and each of its Subsidiaries has good record and marketable title
      in
      fee simple to, or valid leasehold interests in, or easements or other limited
      property interests in, all real property necessary in the ordinary conduct
      of
      its business, free and clear of all liens except for minor defects in title
      that
      do not materially interfere with its ability to conduct its business or to
      utilize such assets for their intended purposes and the Permitted
      Liens.

    

    4.10 Condemnation.
      No
      condemnation proceeding or moratorium is pending or threatened against the
      Land
      which would impair the construction, use, sale or occupancy of the Property
      (or
      any portion thereof) in any manner whatsoever.

    

    4.11 Governmental
      Regulations.
      Borrower is not subject to regulation under the Investment Company Act of 1940,
      the Federal Power Act, the Public Utility Holding Company Act of 1935, the
      Interstate Commerce Act or any federal or state statute or regulation limiting
      its ability to incur indebtedness for money borrowed.

    
      
        
        

      

      
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    4.12 Environmental
      Matters.

    

    (a) Each
      of
      Borrower and each of its Subsidiaries is in compliance with all applicable
      Environmental Laws (including having obtained all Environmental Permits) and
      (ii) none of Borrower or any of its Subsidiaries is subject to any pending,
      or
      to the knowledge of Borrower, threatened Environmental Claim or any other
      Environmental Liability.

    

    (b) None
      of
      Borrower or any of its Subsidiaries has treated, stored, transported or disposed
      of Hazardous Materials at, or arranged for the disposal or treatment or for
      transport for disposal or treatment, of Hazardous Materials from, any currently
      or formerly owned or operated real estate or facility.

    

    (c) (i)
      None
      of the properties currently or, to the knowledge of Borrower, formerly owned,
      leased or operated by Borrower or its Subsidiaries is listed or formally
      proposed for listing on the National Priorities List or any analogous foreign,
      state or local list; (ii) there are no underground or aboveground storage tanks
      or any surface impoundments, septic tanks, pits, sumps or lagoons in which
      Hazardous Materials are being or have been treated, stored or disposed on at
      or
      under any property currently owned or operated by Borrower or any of its
      Subsidiaries; (iii) there is no asbestos or asbestos-containing material at
      or
      on any facility, equipment or property currently owned or operated by Borrower
      or any of its Subsidiaries; and (iv) there has been no release of Hazardous
      Materials by any Person on any property currently, or to the knowledge of
      Borrower and its Subsidiaries, formerly, owned or operated by any of them and
      there has been no release of Hazardous Materials by Borrower or any of its
      Subsidiaries at any other location.

    

    (d) The
      properties currently owned, leased or operated by Borrower and its Subsidiaries
      do not contain any Hazardous Materials in amounts or concentrations which (i)
      constitute, or constituted a violation of, Environmental Laws (ii) require
      response or other corrective action under Environmental Laws, or (iii) could
      give rise to Environmental Liability.

    

    (e) Borrower
      and its Subsidiaries are not conducting or financing, either individually or
      together with other potentially responsible parties, any investigation or
      assessment or response or other corrective action relating to any actual or
      threatened release of Hazardous Materials at any site, location or operation,
      either voluntarily or pursuant to the order of any Governmental Authority or
      the
      requirements of any Environmental Law.

    

    (f) Neither
      Borrower nor any of its Subsidiaries has contractually assumed any liability
      or
      obligation under any Environmental Law or is subject to any order, decree or
      judgment which imposes any obligation under any Environmental Law.

    

    4.13 Taxes.
      Borrower and its Subsidiaries have timely filed all federal and state and other
      tax returns and reports or requests for extensions required to be filed, and
      have timely paid all federal and state and other taxes, assessments, fees and
      other governmental charges (including satisfying its withholding tax
      obligations) levied or imposed on their properties, income or assets or
      otherwise due and payable, except those which are being contested in good faith
      by appropriate actions diligently conducted and for which adequate reserves
      have
      been provided in accordance with GAAP.

    
      
        
        

      

      
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    4.14 ERISA
      Compliance, Etc.

    

    (a) Each
      Benefit Plan is in compliance with the applicable provisions of ERISA and the
      Code.

    

    (b) Except
      as
      set forth in Schedule 4.14 (b), no ERISA Event has occurred.

    

    4.15 Subsidiaries.
      As of
      the Closing Date, the only Subsidiaries of Borrower are GameTech Mexico S.
      de.
      R.L. de C.V, GameTech Canada Corporation and GameTech Arizona Corporation,
      and
      all ownership interest in such Subsidiaries are owned by Borrower free and
      clear
      of all security interests of any Person. 

    

    4.16 Brokers.
      There
      are no brokerage commissions or finders' fees due or claimed by any party to
      be
      due in connection with or with respect to the transaction contemplated hereby
      (other than any commission payable in connection with acquisition of the
      Land).

    

    4.17 Defects
      and Hazards.
      Borrower does not know of any defects, facts or conditions affecting the Land
      that would make it unsuitable for the use contemplated hereunder or of any
      abnormal hazards (including earth movement or slippage) affecting the
      Land.

    4.18 Permits.
      Borrower has obtained, or will timely obtain, all permits which are required
      for
      the construction of the Improvements in accordance with the Plans and in
      accordance with all applicable building, environmental, subdivision, land use
      and zoning laws, including all permits for the Improvements, annexation
      agreements, plot plan approvals, subdivision approvals (including the approval
      and recordation of any required subdivision map), environmental approvals
      (including a negative declaration or an environmental impact report if required
      under applicable law), sewer and water permits and zoning and land use
      entitlements.

    

    4.19 Intellectual
      Property; Licenses, Etc.
      Borrower has good and marketable title to, or a valid license or right to use,
      all of its patents, patent rights, trademarks, servicemarks, trade names,
      copyrights, technology, software, know-how, database rights, rights of privacy
      and publicity, licenses and other intellectual property rights (collectively,
      “IP Rights”) that are necessary for the operation of its business as currently
      conducted and as proposed to be conducted. The operation of the respective
      businesses of Borrower or any of its Subsidiaries as currently conducted and
      as
      proposed to be conducted does not infringe upon, misuse, misappropriate or
      violate any rights held by any Person. No claim or litigation regarding any
      IP
      Rights is pending or, to the knowledge of Borrower, threatened in writing
      against any of Borrower or a Subsidiary. Attached hereto as Schedule 4.19 is
      a
      list of all IP Rights owned or used by Borrower. No Subsidiary of Borrower
      owns
      any IP and Borrower shall at all times hold ownership in Borrower’s name of all
      IP Rights used in the operation of its or the Subsidiaries’
businesses.

    
      
        
        

      

      
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    4.20 Solvency.
      On the
      Closing Date after giving effect to the Transactions, Borrower and its
      Restricted Subsidiaries, on a consolidated basis, are solvent. 

    

    THE
      WARRANTIES AND REPRESENTATIONS IN THIS ARTICLE IV, AND ANY ADDITIONAL WARRANTIES
      AND REPRESENTATIONS CONTAINED HEREIN AND IN THE OTHER LOAN DOCUMENTS, SHALL
      BE
      DEEMED TO HAVE BEEN RENEWED AND RESTATED BY BORROWER AT THE TIME OF EACH REQUEST
      BY BORROWER FOR AN ADVANCE OF LOAN PROCEEDS UNLESS AGENT HAS BEEN NOTIFIED
      OTHERWISE IN WRITING AND HAS APPROVED, IN WRITING, THE CONTENT OF SUCH NOTICE
      IN
      AGENT’S SOLE DISCRETION.

    

    V.
      COVENANTS OF BORROWER

    

    While
      this Agreement is in effect, and until the Lenders have been paid in full the
      principal of and interest on all advances made by the Lenders hereunder and
      under the other Loan Document, Borrower hereby covenants as set forth in this
      Article V:

    

    5.1 Completing
      Construction.
      Construction of the Improvements shall commence no later than thirty-one (31)
      days after the Closing Date. Borrower shall become a party to no contract that
      obligates Borrower to pay an amount greater than $50,000, including the General
      Contractor's construction contract, for the performance of any work on the
      Improvements on the Property or for the supplying of any labor, materials or
      services for the construction of the Improvements, except upon such terms and
      with such parties as shall be approved in writing by Agent, which approval
      shall
      not be unreasonably withheld, conditioned or delayed. No approval by Agent
      of
      any contract or change order shall make Agent and/or the Lenders responsible
      for
      the adequacy, form or content of such contract or change order. Borrower shall
      expeditiously complete and fully pay for the development of the Property and
      construction of the Improvements in a good and workmanlike manner and in
      accordance with the contracts, subcontracts and Plans submitted to and approved
      by Agent, and in compliance with all applicable Governmental Requirements,
      and
      any covenants, conditions, restrictions and reservations applicable thereto,
      so
      that Completion occurs on or before the Completion Date, subject to Excusable
      Delay. Borrower assumes full responsibility for the compliance of the Plans
      and
      the Property with all Governmental Requirements and with sound building and
      engineering practices, and, notwithstanding any approvals by Agent, neither
      Agent nor any Lenders shall have any obligation or responsibility whatsoever
      for
      the Plans or any other matter incident to the Property or the construction
      of
      the Improvements. Borrower shall correct or cause to be corrected (a) any defect
      in the Improvements and (b) any material departure in the construction of the
      Improvements from the Plans or Governmental Requirements. 

    
      
        
        

      

      
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    5.2 Changing
      Costs, Scope or Timing of Work.
      Borrower shall deliver to Agent revised, sworn statements of estimated
      construction costs of the Property, showing changes in or variations from the
      original Sworn Construction Cost Statement, as soon as such changes are known
      to
      Borrower. 

    

    Borrower
      shall promptly furnish Agent with two (2) copies of all changes or modifications
      in the Plans, contracts or subcontracts for the Improvements, as approved by
      Agent, prior to incorporation of any such change or modification into the
      Property, whether or not Agent's consent to such change or modification is
      required hereby. No work may be performed pursuant to any change order or
      pending change order prior to delivery thereof to Agent. Borrower shall not
      make
      or consent to any change or modification in such Plans, contracts or
      subcontracts, and no work shall be performed with respect to any such change
      or
      modification, without the prior written consent of Agent, if such change or
      modification would in any material way alter the design or structure of the
      Improvements or increase or decrease the Improvements cost by $50,000 or more
      for any single change or modification, or if the aggregate amount of all changes
      and modifications exceeds $100,000 which approval shall not be unreasonably
      withheld, conditioned or delayed.

    

    5.3 Balancing
      the Loan.
      If at
      any time the Loan is not in Balance, Borrower shall deposit with Agent, within
      three (3) Business Days from Agent's demand, cash equal to the amount necessary
      to put the Loan back in Balance, which shall be disbursed toward the payment
      of
      Property costs prior to any further disbursements of Construction
      Proceeds.

    

    5.4 Paying
      Costs of Property and Loan.
      Borrower shall pay and discharge, when due, all taxes, assessments and other
      governmental charges upon the Property, as well as all claims for labor and
      materials which, if unpaid, might become a lien or charge upon the Property;
      provided, however, that Borrower shall have the right to contest the amount,
      validity and/or applicability of any of the foregoing in strict accordance
      with
      the terms of the Deed of Trust.

    

    Borrower
      shall also pay all reasonable costs and expenses of Agent (and, during periods
      when a default exists, the Lenders) and Borrower in connection with the
      Property, the collateral for the Loans, the preparation and review of the Loan
      Documents and the making, closing, administration and repayment of the Loan,
      and, reasonable costs incurred in connection with any transfer of the Loan,
      including, but not limited to, the reasonable fees of Agent's attorneys (which,
      at times when no default exists, shall be limited to reasonable attorneys'
      fees), fees of the Inspecting Architect, appraisal fees, environmental fees,
      survey and title search fees, title insurance costs, disbursement expenses,
      and
      all other costs and expenses payable to third parties incurred by Agent (and,
      during periods when a default exists, the Lenders), or Borrower in connection
      with the Loan. Such costs and expenses shall be so paid by Borrower whether
      or
      not the Loan is fully advanced or disbursed. Notwithstanding the foregoing,
      Borrower shall not be liable for payment of the costs and expenses of Agent
      and
      Lender under this paragraph in excess of $450,000.00; provided, however, the
      foregoing limitation shall not apply to reasonable costs and expenses of Agent
      and Lender during periods when a default exists, in collecting the Notes or
      in
      connection with litigation arising from or related in any way to the Loans
      or
      the Loan Documents. Fees payable under the Fee Letter are not included in fees
      and expenses payable under the paragraph nor subject to the foregoing
      limitation. 

    
      
        
        

      

      
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    5.5 Using
      Construction Proceeds.
      Borrower shall use the Construction Proceeds disbursed to Borrower solely to
      pay, or to reimburse Borrower for paying, costs and expenses shown on the Sworn
      Construction Cost Statement approved by Agent and incurred by Borrower in
      connection with the acquisition and development of the Land, the construction
      of
      the Improvements on the Land and the equipping of the Improvements, together
      with other expenses set forth on the Sworn Construction Cost Statement approved
      by Agent and such incidental costs and expenses relating thereto as may be
      approved from time to time in writing by Agent. Borrower shall take all
      reasonable steps necessary to assure similar use of Construction Proceeds by
      its
      contractors and subcontractors.

    

    5.6 Keeping
      of Records.
      Borrower shall set up and maintain accurate and complete books, accounts and
      records pertaining to the Property in a manner reasonably acceptable to Agent.
      Borrower will permit representatives of Agent, the Inspecting Architect and
      the
      Title Company to have free access to and to inspect and copy all books, records
      and contracts of Borrower at Borrower’s offices during normal business hours and
      upon reasonable prior notice. Any such inspection by Agent and/or the Inspecting
      Architect shall be for the sole benefit and protection of Agent and the Lenders,
      and Agent shall have no obligation to disclose the results thereof to Borrower
      or to any third party. Borrower shall maintain proper books of record and
      account, in which entries that are full, true and correct in all material
      respects and are in conformity with GAAP consistently applied shall be made
      of
      all material financial transactions and matters involving the assets and
      business of Borrower or each Subsidiary, as the case may be.

    

    5.7 Compliance
      with Environmental Laws.
      Borrower shall (a) comply, and take all reasonable actions to cause any lessees
      and other Persons operating or occupying its properties or facilities to comply
      with all applicable Environmental Laws and Environmental Permits; (b) obtain
      and
      renew all Environmental Permits necessary for its operations, properties and
      facilities; and (c) in each case to the extent required by applicable
      Environmental Laws, conduct any investigation, study, sampling and testing,
      and
      undertake any response or other corrective action necessary to investigate,
      remove and clean up all Hazardous Materials at, on, under, or emanating from
      any
      of its properties and facilities, in accordance with the requirements of all
      applicable Environmental Laws.

    

    5.8 Providing
      Financial Information.
      Borrower shall furnish such financial information concerning Borrower, any
      Guarantor and the Property as Agent may reasonably request, and shall furnish
      to
      Agent (a) evidence of payment of real estate taxes assessed against the Property
      on or before each due date thereof during the term of the Loans, (b) quarterly
      financial statements, including balance sheets and statements of income,
      retained earnings and cash flow, within forty-five (45) days of the end of
      each
      fiscal quarter and (c) annual audited consolidated financial statements within
      ninety (90) days of the end of each fiscal year of Borrower, including balance
      sheets, statements of income, retained earnings and cash flow and supporting
      schedules reasonably requested by Agent, with an unqualified opinion from a
      recognized independent accounting firm reasonably acceptable to Agent. All
      such
      financial statements shall be in reasonable detail, shall be prepared in
      accordance with GAAP and shall be certified by the party to which they apply
      as
      true, correct and complete in all material respects.

    
      
        
        

      

      
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    Concurrently
      with delivery of the quarterly and annual financial statements required above,
      Borrower shall deliver to Agent a certificate substantially in the form of
      Exhibit I attached hereto (the “Compliance Certificate”), executed by an
      authorized financial officer of Borrower setting forth (i) the information
      and
      computations (in sufficient detail) to establish compliance with all financial
      covenants at the end of the period covered by the financial statements then
      being delivered to the Bank, and (ii) whether there existed as of the date
      of
      such financial statements and whether there exists as of the date of the
      certificate, any default under this Agreement applicable to the party and,
      if
      any such default exists, specifying the nature thereof and the action the party
      is taking and proposes to take with respect thereto.

    

    5.9 Maintaining
      Insurance Coverage.
      Borrower shall, at all times maintain the insurance required pursuant to Exhibit
      F attached hereto.

    

    5.10 Complying
      with Other Documents.
      Borrower shall comply with and perform in all material respects its agreements
      and obligations under all other material contracts and agreements to which
      Borrower is a party relating to the ownership, occupancy, use, development,
      construction or management of the Property, and shall comply with all requests
      by Agent which are consistent with the terms thereof.

    

    5.11 Compliance
      with Laws.
      Borrower will comply and, to the extent it is able, will cause others to comply
      with all laws and requirements of governmental authorities having jurisdiction
      over the processing, approving and recording of any subdivision map, the Land
      or
      construction or sale of the Improvements (or any of them) and will furnish
      Agent
      with reports of any official searches for violation of any requirements
      established by such governmental authorities. Borrower will comply and, to
      the
      extent it is able, will cause others to comply with all restrictive covenants
      and all obligations created by private contracts and leases which affect
      ownership, construction, equipping, fixturing, use, occupancy, sale or leasing
      of the Property (or any portion thereof). The Property and the use thereof
      shall
      be in material compliance with all permits and approvals issued by governmental
      agencies with respect to the Property, applicable building, zoning and use
      laws,
      requirements, regulations and ordinances and such completion and sale will
      not
      violate any restrictions of record against the Property. Borrower will deliver
      to Agent, promptly after receipt thereof, copies of all permits and approvals
      received from governmental authorities relating to the use, construction, or
      sale of the Improvements.

    
      
        
        

      

      
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    5.12 Financial
      Covenants.
      Borrower shall comply with the following financing covenants:

    

    (a) Cash
      Flow Leverage Ratio.
      Borrower shall maintain a Cash Flow Leverage Ratio as of the end of each fiscal
      quarter for the four (4) fiscal quarters then ended of at least 3.25:1.0. "Cash
      Flow Leverage Ratio" means the ratio of Funded Debt to EBITDA. “Funded Debt”
means indebtedness for borrowed money, for capitalized leases and for other
      liabilities evidenced by promissory notes or other instruments. “EBITDA” means
      net income, plus interest expense, plus income tax expense, plus depreciation
      expense plus amortization expense plus or minus any non-recurring losses or
      gains (to be determined in the Agent’s sole discretion). This ratio shall be
      calculated at the end of each fiscal quarter, using the results of the
      twelve-month period ending with that fiscal quarter. 

    

    (b) Fixed
      Charge Coverage Ratio.
      Borrower shall maintain a Fixed Charge Coverage Ratio as of the end of each
      fiscal quarter for the four (4) fiscal quarters then ended of at least 1.25
      to
      1.00. “Fixed Charge Coverage Ratio” shall mean (a) EBITDA plus rental or lease
      expense, minus cash taxes paid, cash dividends and share repurchases and
      Maintenance Capital Expenditures divided by (b) the sum of all mandatory
      principal payments on interest bearing debt, interest and rental or lease
      expense for the relevant period. “Maintenance Capital Expenditures” shall mean
      an amount equal to 3% of Net Revenue. "Net Revenue" shall mean total net
      revenues of Borrower. This ratio shall be calculated at the end of each fiscal
      quarter, using the results of the twelve-month period ending with that fiscal
      quarter. 

    

    (c) Working
      Capital Requirements.
      Borrower shall maintain at all times current assets in excess of current
      liabilities of at least Seven Million Five Hundred Thousand Dollars
      ($7,500,000).

    

    (d) Liquidity
      Requirements.
      Borrower shall maintain at all times a minimum of $2,250,000 in the Control
      Account. 

    

    5.13 Mandatory
      Pre-Payments Upon the Occurrence of Certain Events.
      Borrower shall immediately pay the Agent for application to accrued interest
      and
      payment of principal under the Term Loan, one hundred percent 100% of (i) the
      net cash proceeds (which shall mean the gross cash sales price less only
      reasonable transaction costs) from the sale of all property of Borrower other
      than (x) sales in the ordinary course of business and (y) sale of property
      pursuant to Borrower’s move to the Property and (ii) the cash proceeds of any
      indebtedness incurred by Borrower other than the Loans and permitted
      encumbrances pursuant to Section 5.15. 

    

    5.14 Mandatory
      Pre-Payments Upon the Occurrence of a Collateral Shortfall.
      Commencing with Borrower’s fiscal year ending October 31, 2009, from time to
      time for so long as a Collateral Shortfall exists, Borrower shall pay to Agent,
      concurrently with delivery of the Compliance Certificate which discloses the
      existence of a Collateral Shortfall, an amount equal to fifty percent 50% of
      Borrower’s Free Cash Flow for the fiscal year then ended (the “Cash Flow
      Payments”). The Cash Flow Payment shall be applied by Agent to accrued interest
      and payment of principal under the Term Loan. The Cash Flow Payment shall be
      accompanied by a calculation, certified by an officer of Borrower, of the
      payment being made. As used herein, a “Collateral Shortfall” will be deemed to
      exist when the outstanding principal balance, plus any accrued unpaid interest,
      under the Loans exceeds the Margined Collateral Value. “Margined Collateral
      Value” means an amount, calculated as of the fiscal year then ending, equal to
      the sum of (i) 80% of the total of Borrower’s accounts receivable, (ii) 50% of
      the net book value of Borrower’s finished inventory and raw materials, (iii) 75%
      of the net book value of all real property and improvements owned by Borrower,
      (iv) 100% of the cash held in the Control Account and (v) 50% of the book value
      of all other assets owned by Borrower, in each case as disclosed in Borrower’s
      most recent 10-K. “Free Cash Flow” means EBITDA as of the fiscal year then ended
      less the sum of (i) unfinanced capital expenditures, (ii) cash paid interest
      expenses, (iii) cash paid tax expenses, (iv) amortization on any indebtedness
      senior to the Obligations and (v) plus or minus the change in working capital
      since the end of the prior fiscal year. 

    
      
        
        

      

      
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    Commencing
      with the Compliance Certificate to be delivered to Agent following the fiscal
      year ending October 31, 2009, the Compliance Certificate shall contain a
      calculation of the Margined Collateral Value as of such date and indicate
      whether a Collateral Shortfall exists. 

    

    5.15 Ownership
      of Personal Property; Dispositions.
      Borrower will be the sole owner of all property and assets acquired after the
      date hereof, other than leased assets free from any adverse lien, security
      interest or adverse claim of any kind whatsoever, except for security interests
      and liens in favor of Agent and other liens approved by Agent, in Agent's sole
      discretion. Without Agent’s prior written approval, in its reasonable
      discretion, Borrower shall not make any disposition of its property or assets
      or
      enter into any agreement to make any disposition, except:

    

    (a) Dispositions
      of obsolete, worn out, used or surplus property, whether now owned or hereafter
      acquired, in the ordinary course of business and dispositions of property no
      longer used or useful in the conduct of the business of Borrower and the
      Subsidiaries;

    

    (b) Dispositions
      of inventory, goods held for sale in the ordinary course of business and
      immaterial assets;

    

    (c) Dispositions
      of property to the extent that (i) such property is exchanged for credit against
      the purchase price of similar replacement property or (ii) the proceeds of
      such
      disposition are applied to the purchase price of such similar replacement
      property (which replacement property is actually promptly purchased); provided
      that to the extent the property being transferred constitutes Collateral under
      the Security Agreement, such replacement property shall be made subject to
      the
      lien of the Security Agreement;

    
      
        
        

      

      
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    5.16 Representations
      and Warranties.
      Until
      repayment of the Notes and all other obligations evidenced or secured by the
      Loan Documents, Borrower shall ensure that the representations and warranties
      of
      Article IV remain true and complete unless Agent has been notified otherwise
      in
      writing and has approved the content of such notice in writing in Agent’s sole
      discretion.

    

    5.17 Trade
      Names.
      Borrower shall immediately notify Agent in writing of any change in the
      jurisdiction of organization or place of business of, or the change in the
      legal, trade or fictitious business names used by, Borrower or any Guarantor,
      and Agent is hereby authorized to file or record any additional financing
      statements, amendments and other certificates necessary to reflect any such
      changes.

    

    5.18 Future
      Development.
      Except
      as contemplated by the Plans and this Agreement, Borrower shall not undertake
      any on-site construction, demolition or rehabilitation work on the Land without
      the prior written consent of Agent, which shall not be unreasonably withheld,
      conditioned or delayed.

    

    5.19 Further
      Assurances.
      Borrower shall execute and deliver from time to time, promptly after any request
      therefore by Agent, any and all instruments, agreements and documents and shall
      take such other action as may be necessary or desirable in the opinion of Agent
      to maintain, perfect or insure Agent's security provided for herein and in
      the
      other Loan Documents, including the filing or recording of UCC continuation
      statements or amendments, the execution of such amendments to the Deed of Trust
      and the other Loan Documents and the delivery of such endorsements to the Title
      Company, all as Agent reasonably requires, and shall pay all reasonable fees
      and
      expenses (including reasonable attorneys' fees) related thereto or incurred
      by
      Agent in connection therewith.

    

    5.20 Notice
      of Litigation, Etc.
      Promptly upon receiving notice thereof, Borrower will give, or cause to be
      given, prompt written notice to Agent of (a) any action or proceeding instituted
      by or against it or any Guarantor in any federal or state court or before any
      commission or other regulatory body, Federal, state or local, foreign or
      domestic; or (b) any such proceedings that are threatened in writing against
      it
      or any Guarantor which, if adversely determined, could reasonably be expected
      to
      have a material and adverse effect upon any of their businesses, operations,
      properties, assets, managements, natures of ownership or conditions (financial
      or otherwise) or which would constitute an event of default or a default beyond
      applicable cure periods under any other contract, instrument or agreement to
      which any of them is a party or by or to which any of them or any of their
      properties or assets may be bound or subject; or (c) any actions, proceedings
      or
      notices adversely affecting the Property (or any portion thereof) or Agent's
      interest therein or any zoning, building or other municipal officers, offices
      or
      departments having jurisdiction with respect to the Property or the leasing
      of
      it.

    
      
        
        

      

      
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    5.21 Maintenance
      of Existence. Borrower and each Guarantor shall maintain and preserve its
      respective existence and all rights and franchises material to its respective
      business except as otherwise approved by Agent in writing in its reasonable
      discretion. 

    

    5.22 Permits,
      Approvals and Entitlements.
      Before
      the scheduled commencement of the Improvements, Borrower shall satisfy all
      requirements (other than the payment of fees which are provided for in the
      budget) for obtaining all permits which are necessary for the construction
      of
      the Improvements in accordance with the Plans and in accordance with all
      applicable building, environmental, subdivision, land use and zoning laws,
      and
      shall make available to Agent for Agent's review all permits necessary to
      construct such Improvements and at Agent's request, shall deliver to Agent
      copies of all such permits. During construction of the Improvements, Borrower
      shall make available to Agent for Agent's review copies of all sign off cards
      relating to the Property and, at Agent's request, shall deliver copies of such
      sign off cards to Agent.

    

    5.23 Affiliate
      Borrowings.
      During
      the term of the Loan, Borrower shall cause Guarantors to refrain from entering
      into any agreement pursuant to which Guarantors would be obligated as a
      guarantor or a surety of any indebtedness except trade debt in the ordinary
      course of business.

    

    5.24 Operating
      Accounts.
      Within
      a reasonable time, Borrower shall maintain one or more of the Lenders as its
      principal depository bank, including for the maintenance of business, cash
      management, operating and administrative deposit accounts. Notwithstanding
      the
      foregoing, Borrower shall not be required to maintain its foreign country bank
      accounts with a Lender. 

    

    5.25 No
      Other Debt.
      Borrower shall incur no other indebtedness, whether secured or unsecured, other
      than Permitted Encumbrances and the Loan and trade debt incurred in the ordinary
      course of business; provided that the foregoing shall not be deemed to prohibit
      up to $1,000,000.00 in the aggregate owing under equipment leases for equipment
      to be used by Borrower in connection with its business; and provided further,
      however, that in no case may such leased equipment be incorporated into any
      improvements as part of the structure thereof or otherwise installed as part
      of
      such improvements in such a way that the removal thereof would result in
      material damage to any improvements.

    

    5.26 Additional
      Guarantors and Obligations to Give Security.
      At the
      Borrower’s expense, within forty-five (45) days after the formation or
      acquisition of a Subsidiary that is a Restricted Subsidiary, Borrower shall
      take
      all action necessary or reasonably requested by the Agent to cause each such
      Restricted Subsidiary to execute and deliver to Agent a supplement to the
      Guaranty (as provided therein) guaranteeing the obligations of Borrower under
      the Loan Documents and cause each such Restricted Subsidiary to duly execute
      and
      deliver to the Agent a supplement to the Security Agreement (as provided
      therein) as additional security for the obligations of Borrower under the Loan
      Documents. 

    
      
        
        

      

      
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    5.27 Dividends
      and Distributions.
      Not to
      declare or pay any dividends (except dividends paid in capital stock),
      redemptions of stock, distributions and withdrawals (as applicable) to its
      owners other than the stock repurchase program publicly announced by Borrower
      on
      September 4, 2007.

    

    5.28 Leasehold
      Deeds of Trust.
      Subject
      to the consents of the landlords of such leased properties, which Borrower
      shall
      use best efforts to obtain, within thirty (30) days after the Closing Date
      Borrower shall, at Agent’s election, in its sole discretion, either (i) cause to
      be executed and recorded in the appropriate real property records leasehold
      deeds of trust or mortgages, as applicable, in form and substance reasonably
      acceptable to Agent, encumbering Borrower’s leasehold interests in its leased
      property located in Billings, Montana and South Meadows Business Park, Reno,
      Nevada as security for the Obligations or (ii) landlord waivers and consents
      in
      a commercial reasonable form. Borrower shall further cause be issued to Agent,
      at Borrower’s expense, lender’s policies of title insurance, in form and
      substance, and in such amounts, reasonably acceptable to Agent, insuring Agent’s
      interest under such deeds of trust/mortgages.

    

    5.29 Change
      in Nature of Business.
      Without
      the prior written approval of Agent, which shall not be unreasonably withheld,
      conditioned or delayed, Borrower shall not engage in any material line of
      business substantially different from those lines of business conducted by
      Borrower and the Subsidiaries on the Closing Date or any business reasonably
      related or ancillary thereto or constituting a reasonable extension
      thereof.

    

    5.30 Maintenance
      of Properties.
      Borrower shall maintain, preserve and protect all of its material properties
      and
      equipment necessary in the operation of its business in good working order,
      repair and condition, ordinary wear and tear excepted and casualty or
      condemnation excepted and consistent with past practice.

    

    5.31 Accounting
      Changes.
      Borrower shall not make any change in fiscal year except to, upon written notice
      to the Agent, change its fiscal year to any other fiscal year reasonably
      acceptable to the Agent, in which case, Borrower and Agent will, and are hereby
      authorized by the Lenders to, make any adjustments to this Agreement that are
      necessary to reflect such change in fiscal year.

    

    5.32 Inspection
      Rights.
      Borrower shall permit representatives and independent contractors of Agent
      and
      each Lender to visit and inspect any of its properties, to examine its
      corporate, financial and operating records, and make copies thereof or abstracts
      therefrom (other than the records of the Board of Directors of Borrower or
      a
      Subsidiary) and to discuss its affairs, finances and accounts with its
      directors, officers, and independent public accountants (subject to customary
      access agreements), all at the reasonable expense of Borrower and at such
      reasonable times during normal business hours and as often as may be reasonably
      desired, upon reasonable advance notice to the Borrower; provided that,
      excluding any such visits and inspections during the continuation of an Event
      of
      Default, only Agent on behalf of the Lenders may exercise rights of the Agent
      and the Lenders under this Section 5.33 and Agent shall not exercise such rights
      more often than two (2) times during any calendar year absent the existence
      of
      an Event of Default.

    
      
        
        

      

      
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    5.33 Fundamental
      Changes.
      Without
      the approval of the Lenders, Borrower shall not merge, dissolve, liquidate,
      or
      consolidate with or into another Person.

     

    VI.
      DEFAULTS

    

    6.1 Events
      of Default.
      Any of
      the following events shall constitute an Event of Default under this
      Agreement:

    

    (a) Borrower
      shall default in the payment of principal due according to the terms of any
      Note.

    

    (b) Borrower
      shall default in the payment of interest on advances made by Agent or Lenders,
      or in the payment of fees or other amounts payable to Agent or Lenders,
      hereunder, under any Note or under any of the other Loan Documents for a period
      of five (5) Business Days after the same is due.

    

    (c) Borrower
      shall fail to perform or observe any obligation or covenant (other than those
      obligations and covenants described in subparagraphs (a) and (b), above, or
      otherwise set forth in subparagraphs (d) through (l), below, of this Section
      6.1) under this Agreement or any other Loan Document within twenty (20) days
      after receipt of written notice that such obligation was not performed; provided
      that, if cure cannot reasonably be effected within such 20-day period, such
      failure shall not be an event of default hereunder so long as Borrower promptly
      (in any event, within ten (10) days after receipt of such notice) commences
      cure, and thereafter diligently (in any event, within forty-five (45) days
      after
      receipt of such notice, subject to Excusable Delay) prosecutes such cure to
      completion; and provided further, however, that notwithstanding the 20-day
      cure
      period or extended cure period described above in this subparagraph (c), if
      a
      different notice or cure period is specified under any Loan Document or under
      any provision of the Loan Documents as to any such failure or breach, the
      specific Loan Document or provision shall control, and Borrower shall have
      no
      more time to cure the failure or breach than is allowed under the specific
      Loan
      Document or provision as to such failure or breach.

    

    (d) Any
      representation or warranty made by Borrower in this Agreement, in any of the
      other Loan Documents, or in any certificate or document furnished under the
      terms of this Agreement or in connection with the Loans, shall be untrue or
      incomplete in any material respect.

    

    (e) Borrower
      shall be in default under the terms of any of the other Loan Documents beyond
      any applicable cure period specified therein, and such default shall not be
      waived by Agent, or an Event of Default shall exist under the terms of any
      such
      instrument.

    
      
        
        

      

      
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    (f) Subject
      to Excusable Delay, work on the Property shall be substantially abandoned,
      or
      shall, by reason of Borrower's fault, be delayed or discontinued (after work
      is
      required to have commenced hereunder) for a period of fifteen (15) consecutive
      days (or an aggregate of twenty (20) days in any thirty (30) day period), or
      construction shall be delayed for any reason whatsoever to the extent that
      Completion cannot, in the reasonable judgment of Agent, be accomplished prior
      to
      the Completion Date.

    

    (g) Borrower
      or any Guarantor shall apply for, consent to or permit the appointment of a
      receiver, custodian, trustee or liquidator for it or any of its property or
      assets; or shall fail to, or admit in writing its inability to, pay its debts
      as
      they mature; or shall make a general assignment for the benefit of creditors
      or
      shall be adjudicated bankrupt or insolvent; or shall take other similar action
      for the benefit or protection of its creditors; or shall give notice to any
      governmental body of insolvency or pending insolvency or suspension of
      operations; or shall file a voluntary petition in bankruptcy or a petition
      or an
      answer seeking reorganization or an arrangement with creditors, or to take
      advantage of any bankruptcy, reorganization, insolvency, readjustment of debt,
      rearrangement, dissolution, liquidation or other similar debtor relief law
      or
      statute; or shall file an answer admitting the material allegations of a
      petition filed against it in any proceeding under any such law or statute;
      or
      shall be dissolved, liquidated, terminated or merged; or shall effect a plan
      or
      other arrangement with creditors; or a trustee, receiver, liquidator or
      custodian shall be appointed for it or for any of its property or assets and
      shall not be discharged within ninety (90) days after the date of his
      appointment; or a petition in involuntary bankruptcy or similar proceedings
      is
      filed against it and is not dismissed within ninety (90) days after the date
      of
      its filing.

    

    (h) Agent
      determines that the remaining undisbursed Construction Proceeds are insufficient
      to fully pay all of the then unpaid costs of the Property and estimated expenses
      of Completion and Borrower fails to immediately deposit with Agent, within
      three
      (3) Business Days of demand, sufficient funds to permit Agent to pay said excess
      costs as the same become payable.

    

    (i) Any
      of
      the Guaranty or the Environmental Indemnity, at any time and for any reason
      ceases to be in full force and effect, or any Guarantor or indemnitor contests
      or denies the validity or enforceability of the Guaranty or the Environmental
      Indemnity, or gives notice to Agent to such effect, or otherwise attempts to
      revoke or repudiate any of the foregoing as to any existing or future
      obligations.

    

    (j) Borrower
      shall fail to maintain insurance as required by this Agreement or shall fail
      to
      furnish to Agent proof of payment of all premiums for such
      insurance.

    

    (k) A
      transfer, encumbrance, lien, change of ownership or other action or occurrence
      prohibited by Deed of Trust shall occur.

    

    (l) Any
      material adverse change not approved by Lenders in their reasonable discretion
      shall have occurred in the financial condition or in the assets or liabilities
      of Borrower or Guarantor from those set forth in the latest financial statements
      for each furnished to Agent prior to the Closing Date.

    
      
        
        

      

      
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    6.2 Rights
      and Remedies.
      Upon
      the occurrence of an Event of Default, unless such Event of Default is
      subsequently waived in writing by Agent, Agent shall be entitled, at the option
      of Agent, to exercise any or all of the following rights and remedies,
      consecutively or simultaneously, and in any order:

    

    (a) Agent
      may
      make one (1) or more further disbursements of Construction Proceeds, without
      liability to make any subsequent advances thereof.

    

    (b) Lenders
      may suspend their obligation to make L/C Advances under this Agreement, with
      written notice to Borrower.

    

    (c) Lenders
      may terminate their obligation to make advances under this Agreement, and Agent
      may declare the entire unpaid principal balance of the advances made under
      this
      Agreement to be immediately due and payable, together with accrued and unpaid
      interest on such advances, with written notice to Borrower.

    

    (d) Agent
      may
      exercise any or all remedies specified herein and in the other Loan Documents,
      including (without limiting the generality of the foregoing) the right to
      foreclose the Deed of Trust, and/or any other remedies which it may have
      therefor at law, in equity or under statute.

    

    (e) Agent
      may
      cure the Event of Default on behalf of Borrower, and, in doing so, may enter
      upon the Property, and may expend such sums as it may deem desirable, including
      reasonable attorneys' fees, all of which shall be deemed to be advances
      hereunder, even though causing the Loan to exceed the face amount of the Note,
      shall bear interest at the Default Rate and shall be payable by Borrower on
      demand.

    

    6.3 Completion
      of Improvements by Agent.
      In
      addition, in case of the occurrence of an Event of Default specified in Section
      6.1(f) hereof, or any Event of Default caused by, or which results in,
      Borrower's failure, for any reason, other than Excusable Delay, to continue
      with
      construction of the Improvements on the Property as required by this Agreement,
      then Agent may (but shall not be obligated to), in addition to, or in concert
      with, the other remedies referred to above, take over and complete construction
      of the Improvements in accordance with the Plans, with such changes therein
      as
      Agent may, in its discretion, deem appropriate, all at the risk, cost and
      expense of Borrower. Agent may assume or reject any contracts entered into
      by
      Borrower in connection with the Property, subject to the terms thereof, may
      enter into additional or different contracts for work, services, labor and
      materials required, in the judgment of Agent, to complete the Property, and
      may
      pay, compromise and settle all claims in connection with the Property. All
      sums,
      including reasonable attorneys' fees, and reasonable charges or fees for
      supervision and inspection of the construction and for any other necessary
      or
      desirable purpose in the discretion of Agent expended by Agent and/or the
      Lenders in completing or attempting to complete the Property (whether
      aggregating more, or less, than the face amount of the Note), shall be deemed
      advances made by the Lenders to Borrower hereunder, and Borrower shall be liable
      to Agent on behalf of the Lenders, on demand, for the repayment of such sums,
      together with interest on such sums from the date of their expenditure at the
      rates provided herein. Agent may, in its discretion, at any time abandon work
      on
      the Property, after having commenced such work, and may recommence such work
      at
      any time, it being understood that nothing in this Section shall impose any
      obligation on Agent or any Lender either to complete or not to complete the
      Property. For the purpose of carrying out the provisions of this Section,
      Borrower irrevocably appoints Agent its attorney in fact, with full power of
      substitution, to execute and deliver all such documents, to pay and receive
      such
      funds, and to take such action as may be necessary, in the judgment of Agent,
      to
      complete the Property. This power of attorney is coupled with an interest and
      is
      irrevocable. Agent, however, shall have no obligation to undertake any of the
      foregoing, and, if Agent does undertake any of the same, neither Agent nor
      the
      Lenders shall have any liability for the adequacy, sufficiency or completion
      thereof.

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    VII.
      MISCELLANEOUS

    

    7.1 Binding
      Effect; Waivers; Cumulative Rights and Remedies.
      The
      provisions of this Agreement shall inure to the benefit of and be binding upon
      the parties hereto and their respective heirs, executors, administrators,
      personal representatives, legal representatives, successors and assigns;
      provided, however, that neither this Agreement nor the proceeds of the Loan
      may
      be assigned by Borrower voluntarily, by operation of law or otherwise, without
      the prior written consent of Agent. No delay on the part of Agent in exercising
      any right, remedy, power or privilege hereunder shall operate as a waiver
      thereof, nor shall any single or partial exercise of any right, remedy, power
      or
      privilege hereunder constitute such a waiver or exhaust the same, all of which
      shall be continuing. The rights and remedies of Agent specified in this
      Agreement shall be in addition to, and not exclusive of, any other rights and
      remedies which Agent would otherwise have at law, in equity or by statute,
      and
      all such rights and remedies, together with Agent's rights and remedies under
      the other Loan Documents, are cumulative and may be exercised individually,
      concurrently, successively and in any order.

    

    7.2 Survival.
      All
      agreements, representations and warranties made in this Agreement shall survive
      the execution of this Agreement, the making of the advances by the Lenders,
      and
      the execution of the other Loan Documents, and shall continue until Agent on
      behalf of the Lenders receives payment in full of all indebtedness of Borrower
      incurred under this Agreement and under the other Loan Documents.

    

    7.3 Governing
      Law; Waiver of Jury Trial.
      This
      Agreement, the rights of the parties hereunder and the interpretation hereof
      shall be governed by, and construed in accordance with, the laws of the State
      of
      Nevada in all respects. Borrower hereby waives any right to a trial by jury
      in
      any action relating to the Loan and/or the Loan Documents.

     

    
      
        
        

      

      
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    7.4 Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which shall
      constitute a single Agreement.

    

    7.5 Notices.
      Any
      notice required or permitted to be given by either party hereto to the other
      under the terms of this Agreement, or documents related hereto, shall be deemed
      to have been given on the date the same is deposited in the United States Mail,
      registered or certified, return receipt requested, postage prepaid, addressed
      to
      the party to which the notice is to be given at the address set forth opposite
      its name below, or at any other address specified in a notice given by such
      party to the other not less than ten (10) days prior to the effective date
      of
      the address change.

    

    
      	
            	If
              to Borrower:	
              Until
                Completion:

            

    

    

    Gametech
      International, Inc.

    900
      Sandhill Road

    Reno,
      Nevada 89521

    

    Attention:
      General Counsel

    

    With
      a
      copy to:

    

    Jones
      Vargas

    Attention:
      Elizabeth Fielder

    Redacted

    

    Following
      Completion:

    

    GameTech
      International, Inc.   

    8850
      Double Diamond Road

    Reno,
      Nevada 89521

    

    Attention:
      General Counsel

     

    
      	
            	If
              to Agent:	
              U.S.
                Bank National Association

            

    

    Commercial
      Banking -Reno 

    One
      East
      Liberty – Mezzanine

    Reno,
      Nevada 89501

     

    Attention:
      Redacted

    

    7.6 Agent's
      Sign.
      Agent
      may, if it so desires, place a sign of reasonable size on the Land, indicating
      that Agent and the Lenders are providing financing for the Property, and/or
      may
      otherwise publicize its involvement with the Property, including, but not
      limited to, issuing press releases, subject to Borrower’s approval, which shall
      not be unreasonably withheld, conditioned or delayed.

     

    
      
        
        

      

      
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    7.7 No
      Third Party Reliance.
      No
      third party shall be entitled to rely upon this Agreement or to have any of
      the
      benefits of Agent's and the Lenders' interest hereunder, unless such third
      party
      is an express assignee of all or a portion of the interest of Agent and/or
      any
      Lender hereunder.

    

    7.8 Time
      of the Essence.
      Time is
      of the essence hereof with respect to the dates, terms and conditions of this
      Agreement.

    

    7.9 Entire
      Agreement; No Oral Modifications.
      This
      Agreement, the other Loan Documents and the other documents mentioned herein
      set
      forth the entire agreement of the parties with respect to the Loan and supersede
      all prior written or oral understandings and agreements with respect thereto.
      No
      modification or waiver of any provision of this Agreement shall be effective
      unless set forth in writing and signed by the parties hereto.

    

    7.10 Captions.
      The
      headings or captions of the Articles and Sections set forth herein are for
      convenience only, are not a part of this Agreement and are not to be considered
      in interpreting this Agreement.

    

    7.11 Joint
      and Several Liability.
      If
      Borrower consists of more than one (1) individual and/or entity, each of said
      individuals and/or entities shall be jointly and severally liable for each
      covenant, agreement, representation and warranty of Borrower
      hereunder.

    

    7.12 Borrower's
      Relationship with Agent and the Lenders.
      The
      relationship between Borrower, Agent and the Lenders created hereby and by
      the
      other Loan Documents shall be that of a borrower and a lender only, and in
      no
      event shall Agent and/or the Lenders be deemed to be a partner of, or a joint
      venturer with, Borrower.

    

    7.13 Swap
      Transactions.
      Borrower may enter into one or more Swap Transactions and Swap Contracts with
      the Swap Counterparty on terms that are acceptable to Swap Counterparty in
      its
      sole discretion for the purpose of hedging and protecting against interest
      rate
      fluctuation risks with respect to the Loan. Upon the respective Maturity Date,
      or such earlier date that the a Loan becomes due by reason of an event of
      default, or otherwise, Agent may direct that all existing Swap Contracts be
      broken and discontinued, and any and all breakage fees, discontinuance fees
      and
      any other similar fees and costs with respect to such Swap Contracts shall
      become immediately due and payable by Borrower. Unless otherwise specifically
      agreed in writing by Borrower, Agent and Swap Counterparty, Borrower's
      obligations (including any payment obligations) with respect to any such Swap
      Contracts provided by or entered into with Swap Counterparty with respect to
      the
      Loan shall be secured by the Deed of Trust and all other collateral for the
      Loan, and any default by Borrower (after the expiration of any applicable notice
      and cure period) under any such Swap Contracts shall, at the discretion of
      the
      Agent, constitute an Event of Default under this Agreement. As additional
      security for the obligations of Borrower under the Loan Documents, Borrower
      hereby transfers, assigns, and conveys to Agent and grants to Agent a security
      interest in, subject to the terms and conditions contained herein, all of
      Borrower's rights, titles and interests, but not its obligations, duties or
      liabilities for any breach, in, under and to the Swap Contract and each Swap
      Transaction, any and all amounts received by Borrower in connection therewith
      or
      to which Borrower is entitled thereunder, and all proceeds of the foregoing.
      At
      Agent's option, all amounts payable to Borrower under the Swap Contract shall
      be
      paid to Agent and shall be applied to pay interest or other amounts under the
      Loan. Borrower acknowledges and agrees that, notwithstanding the terms of the
      Swap Contract, Borrower shall not modify or terminate the Swap Contract without
      the prior written consent of Agent.

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

    Additionally,
      Agent shall have the right at any time (but shall have no obligation) to take
      in
      its name or in the name of Borrower (or its Affiliate) such action as Agent
      may
      at any time reasonable determine to be necessary or advisable to cure any
      default under any Swap Contract or to protect the rights of Borrower (or its
      Affiliate) or Swap Counterparty thereunder; provided, however, that before
      the
      occurrence of an Event of Default, Agent shall give prior written notice to
      Borrower before taking any such action. For this purpose, Borrower hereby
      constitutes Agent its true and lawful attorney-in-fact with full power of
      substitution, which power of attorney is coupled with an interest and
      irrevocable by Borrower in any manner, or for any reason, to exercise, at the
      election of Agent, any and all rights and remedies of Borrower (or its
      Affiliate) under the Swap Contract, including making any payments thereunder
      and
      consummating any transactions contemplated thereby, and to take any action
      that
      Agent may deem proper in order to collect, assert or enforce any claim, right
      or
      title, in and to the Swap Contract hereby assigned and conveyed, from time
      to
      time to institute and prosecute in the name and at the expense of Borrower,
      or
      otherwise, but for the benefit of Agent, any and all proceedings at law, in
      equity, or otherwise, that Agent may deem proper in order to collect, assert
      or
      enforce any claim, right or title, of any kind, in and to the Swap Contract
      hereby assigned and conveyed, or intended so to be, and to defend and
      compromise, at the election of Agent, any and all actions, suits or proceedings
      with respect to the Swap Contract, and generally to do all and any such action
      in relation thereto as Agent shall deem advisable. Agent shall not incur any
      liability if any action so taken by Agent or on its behalf shall prove to be
      inadequate or invalid. Borrower expressly understands and agrees that Agent
      is
      not hereby assuming any duties or obligations of Borrower (or its Affiliate)
      to
      make payments to Swap Counterparty under any Swap Contract or under any other
      Loan Document. Such payment duties and obligations remain the responsibility
      of
      Borrower (or its Affiliate) notwithstanding any language in this
      Agreement.

    

    7.14 Automatic
      Deduction and Credit.
      So long
      as Agent is the sole Lender hereunder, at Agent's option, payments owed by
      Agent
      as Swap Counterparty under any Swap Contract may be credited against accrued
      interest and other payments owed by Borrower under the Loan. Agent will credit
      the applicable amounts on the dates the foregoing payments become due; provided,
      however, that if a due date does not fall on a Business Day, Agent will credit
      the applicable amounts on the first Business Day following such due
      date.

    
       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

    

    7.15 USA
      PATRIOT Act.
      Each
      Lender and Agent hereby notifies each of Borrower and each Guarantor that
      pursuant to the requirements of the USA PATRIOT Act, it is required to obtain,
      verify and record information that identifies each of borrower and each
      Guarantor, which information includes the name, address and tax identification
      number of Borrower and each Guarantor and other information that will allow
      such
      Lender or Agent, as applicable, to identify Borrower and each Guarantor in
      accordance with the USA PATRIOT Act. This notice is given in accordance with
      the
      requirements of the USA PATRIOT Act and is effective as to the Lenders and
      Agent.

    

    VIII.
      AGENCY PROVISIONS

    

    8.1 Agency.

    

    (a) Appointment
      and Authorization.
      Each
      Lender hereby appoints and authorizes Agent to act as sole administrative agent
      under this Agreement and the other Loan Documents, authorizes and directs Agent
      to enter into the Loan Documents other than this Agreement for the benefit
      of
      the Lenders, and authorizes the Agent to take such action on its behalf under
      the provisions of this Agreement and the Loan Documents and to exercise such
      powers as are set forth herein or therein, together with such other powers
      as
      are reasonably incidental thereto. In furtherance thereof, Lenders hereby ratify
      the execution and delivery by Agent of this Agreement, the acceptance by Agent
      of all of the other Loan Documents and the terms and conditions of the Loan
      Documents. The Agent hereby accepts such appointment as administrative agent.
      Agent shall exercise all rights and powers of Agent under this Agreement,
      including the administration of the Loan and disbursement of Advances, except
      as
      otherwise expressly provided in this Agreement. The Borrower, without further
      inquiry or investigation, shall, and is hereby authorized by the Lenders to,
      assume that all actions taken by the Agent hereunder and in connection with
      or
      under the Loan Documents are duly authorized by the Lenders.

     

    (b) Non
      Liability of Agent and Indemnity.

    

    (1) Agent
      shall have no duties or responsibilities except those expressly set forth in
      this Agreement or in the other Loan Documents. Agent shall administer the Loan
      in accordance with the terms and conditions of this Agreement in the same manner
      as it customarily does for similar loans for its own account. The duties of
      the
      Agent shall be mechanical and administrative in nature; the Agent shall not
      have
      by reason of this Agreement a fiduciary relationship in respect of any Lender;
      and nothing in this Agreement or any Loan Document, expressed or implied, is
      intended to or shall be so construed as to impose upon the Agent any obligations
      in respect of this Agreement or any Loan Document except as expressly set forth
      herein or therein. Neither Agent nor any of its respective directors, officers,
      agents or employees shall be liable to any Lender for any action taken or not
      taken by them under or in connection with this Agreement or under any of the
      other Loan Documents. In this regard, Agent may consult with independent legal
      counsel, accountants and other professionals or experts selected by it, and
      shall not be liable for any action taken or not taken by it or them in good
      faith in accordance with the advice of such legal counsel, accountants or other
      professionals or experts. In the absence of gross negligence or willful
      misconduct, Agent shall not be liable for any apportionment or distribution
      of
      payments made by it in good faith pursuant to the terms of this Agreement,
      and
      if any such apportionment or distribution is subsequently determined to have
      been made in error, the sole recourse of any person to whom payment was due,
      but
      not made, shall be to recover from the recipients of such payments any payment
      in excess of the amount to which they are determined to have been
      entitled.

    
       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

    (2) In
      the
      event the Agent is not reimbursed and indemnified by the Borrower, within ten
      (10) Business Days of demand therefor by Agent, each Lender will reimburse
      and
      indemnify the Agent, and its directors, officers, agents and employees, in
      proportion to its respective Commitment Percentage of the Loans (or commitment),
      for and against any claims, actions, judgments, costs, expenses or disbursements
      of whatsoever kind or nature which may be imposed on, asserted against or
      incurred by the Agent, or its directors, officers, agents, or employees in
      performing its duties hereunder or under any Loan Document. The obligations
      of
      the Lenders under this Section 8.1(b) shall survive the payment in full of
      all
      obligations of Borrower and the termination of this Agreement.

    

    8.2 Resignation
      of Agent; Removal.

    

    (a) U.S.
      Bank
      or any successor agent may resign as Agent at any time by written notice
      delivered to the Borrower and the Lenders. Such resignation shall be effective
      upon the earlier to occur of thirty (30) days following such notice or a
      successor's acceptance of appointment as the Agent. In addition, in the event
      of
      Agent's gross negligence or willful misconduct, Agent may be removed pursuant
      to
      the unanimous approval of all Lenders by giving thirty (30) days prior written
      notice to Agent and Borrower; provided, however, for purposes of calculating
      such unanimous approval in this context, Agent shall be deemed a Defaulting
      Lender and its Commitment Percentage shall therefore be disregarded and excluded
      for voting purposes only.

    

    (b) In
      the
      case of any of the events described in Section 8.2(a), (1) the Majority Lenders
      shall appoint a successor Agent from among the Lenders so long as such successor
      meets the requirements described in Sections 8.9(a)(2) and 8.9(a)(3) hereof,
      provided, however, that the resigning Agent shall be entitled to appoint a
      successor agent who meets the requirements of Sections 8.9(a)(2) and 8.9(a)(3)
      as Agent, if the Majority Lenders have not appointed a successor within thirty
      (30) days after the date the resigning Agent gave notice of resignation; (2)
      upon a successor's acceptance of appointment (and assumption of the Agent's
      obligations hereunder arising after the date of such appointment), the successor
      will thereupon succeed to and become vested with all the rights, powers,
      privileges and duties of the resigning or removed Agent; (3) upon the
      effectiveness of any resignation or removal, the resigning or removed Agent
      will
      thereupon be discharged from the duties and obligations of Agent which
      thereafter arise under this Agreement; and (4) any resigning Agent shall have
      the benefit of any indemnities provided in the Loan Documents and this
      Agreement.

    
       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

    

    

    8.3 Administration.

    

    (a) Expenses.
      Each
      Lender shall reimburse the Agent for its Commitment Percentage of any expenses
      with respect to the administration, enforcement or collection of the Loan which
      are not reimbursed by the Borrower pursuant to and within the period required
      by
      the Loan Documents, or if not specified in the Loan Documents, on the date
      of
      demand therefor made by the Agent. The Agent shall have the right, but not
      the
      obligation, to incur such expenditures prior to reimbursement therefor by the
      Lenders.

    

    (b) Documents;
      Information; Inspection.
      Except
      for the Loan Documents sent for filing or recording (which are not returned
      following recording), Agent shall hold and maintain a duplicate set of all
      original Loan Documents. The Agent shall promptly deliver to each Lender a
      copy
      or counterpart of execution copy of each Loan Document. Upon the request of
      any
      Lender, the Agent shall promptly forward to each Lender a copy of each financial
      statement of Borrower or other financial statement for the Property received
      from Borrower. Upon request of any Lender, the Agent shall promptly forward
      to
      such Lender each financial statement of Borrower and Guarantor received by
      Agent. The Lenders may, upon reasonable prior notice and during the Agent's
      normal business hours, inspect and make copies of such books and records of
      Agent that relate to this Loan.

    

    8.4 Actions
      by Agent; Required Consents.

    

    (a) Except
      as
      specified below, Agent shall exercise its sole discretion to act or not to
      act
      under the Loan Documents. Such discretion may be exercised with respect to
      the
      granting of approvals, consents, and modifications under the Loan Documents
      and
      with respect to the exercise or refraining from exercise of rights under the
      Loan Documents.

    

    (b) Notwithstanding
      Section 8.4(a), the following matters shall require the prior consent of all
      of
      the Lenders:

    

    (1) any
      reduction (other than by operation of the Loan Documents) in the interest rate
      under the Loans;

    

    (2) any
      reduction in the amount of any payment of any fees payable to
      Lenders;

    

    (3) any
      change (other than by operation of the Loan Documents) in the Maturity Date
      of a
      Loan or in the conditions for any extension of the Maturity Date;

    

    (4) any
      release, termination, modification or amendment of the Guaranties or any
      indemnity provided in the Loan Documents or the release of any material
      collateral given as security for the Loans; provided, however, Agent may consent
      to the designation of a Subsidiary as an Unrestricted Subsidiary or to the
      release of a Guarantor provided Agent shall have determined, in its reasonable
      discretion, that such designation or release does not have a material adverse
      effect on the Loans or Borrower’s ability to perform its obligations under the
      Loan Documents;

    
       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

    

    

    (5) any
      forgiveness of principal, interest or other amounts payable under the Loan
      (other than late fees) or any extension of time for payment of principal or
      interest;

    

    (6) any
      increase in the Committed Amount;

    

    (7) any
      amendment to this Section 8.4(b).

    

    (c) Notwithstanding
      Section 8.4(a) or Section 8.4(b), the prior consent of the Majority Lenders
      shall be required for the acceleration of any indebtedness under the Loan
      Documents, or the pursuit of remedies against the Borrower or Guarantor;
      provided, however, if the Majority Lenders cannot agree on a course of action
      within thirty (30) days following notice from Agent, Agent may, without the
      consent of the Majority Lenders, accelerate the Loans and exercise any and
      all
      rights and remedies under the Loan Documents and applicable law (and in equity)
      that Agent in its sole discretion deems appropriate and in the best interests
      of
      the Lenders.

    

    (d) In
      case
      one or more Events of Default have occurred and shall be continuing, and whether
      or not acceleration of the Loan shall have occurred, the Agent shall, if (1)
      so
      requested by the Majority Lenders and (2) the Lenders have provided to the
      Agent
      such additional indemnities and assurances against expenses and liabilities
      as
      the Agent may reasonably request, proceed to enforce the provisions of this
      Agreement and the other Loan Documents and exercise all or any such other legal
      and equitable and other rights or remedies as it may have in respect of
      enforcement of the Lenders' rights against the Borrower and the Guarantor under
      this Agreement and the other Loan Documents. The Majority Lenders may direct
      the
      Agent in writing as to the method and the extent of any such enforcement, the
      Lenders (including any Lender which is not one of the Majority Lenders so
      directing the Agent in writing) hereby agreeing to ratably and severally
      indemnify and hold the Agent harmless from all liabilities and expenses incurred
      in respect of all actions taken or omitted in accordance with such directions,
      provided that the Agent need not comply with any such direction to the extent
      that the Agent reasonably believes the Agent's compliance with such direction
      to
      be unlawful or commercially unreasonable in any applicable jurisdiction. Lenders
      also agree, ratably and severally, to indemnify and hold the Agent harmless
      from
      all liabilities and expenses incurred in respect of all actions taken or omitted
      to be taken under Section 8.4(c) above should the Majority Lenders not be able
      to agree upon a course of action within the time period specified therein,
      and
      Agent exercises any and all rights and remedies under the Loan Documents and
      applicable law (or in equity) that Agent in its sole discretion deems
      appropriate and in the best interests of the Lenders under the
      circumstances.

    
       

      
        
          
          

        

        
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    8.5 Payments.

    

    (a) Interest
      Rates and Disbursement Matters.
      Lenders
      and Agent specifically agree to the following operational and administrative
      procedures as between themselves:

    

    (1) Agent
      shall notify each Lender by telephone or facsimile of the LIBOR Rate (as defined
      in the applicable Note) two (2) Business Days prior to the date on which the
      LIBOR Rate shall be effective. Agent shall notify each Lender by telephone
      or
      facsimile of its Commitment Percentage of a proposed advance of the Loan and
      the
      date of such disbursement two (2) Business Days prior to such disbursement
      with
      respect to disbursements which are to bear interest at the LIBOR Rate, such
      notice to be delivered by facsimile. Each Lender shall deposit by wire transfer
      of immediately available funds to Agent's account as specified on Exhibit G
      hereto the amount of such Commitment Percentage no later than 10:00 a.m. (Nevada
      time) on the date of such disbursement.

    

    Unless
      Agent shall have been notified by any Lender not later than the close of
      business (Nevada time) on the Business Day immediately preceding the date for
      funding in respect of any advance that such Lender does not intend to make
      available to Agent such Lender's Commitment Percentage of such advance, Agent
      may assume that such Lender has made such amount available to Agent. In any
      case
      where a Lender does not for any reason make available to Agent such Lender's
      Commitment Percentage of such advance, Agent, in its sole discretion, may,
      but
      shall not be obligated to, fund to Borrower such Lender's Commitment Percentage
      of such advance. If the amount so funded by Agent is not in fact made available
      to Agent by the responsible Lender, then such Lender hereby assigns to Agent
      any
      payments received by Agent from Borrower in repayment of such amount, together
      with interest thereon at the rate applicable to such advance.

    

    (2) If
      any
      Lender fails to deliver funds to Agent for a disbursement by the time required
      by subsection (1) above, such Lender shall pay to Agent interest on such funds
      (x) at the Federal Funds Rate, for each day (or portion thereof) until such
      funds are delivered. Any interest paid pursuant to this section shall be divided
      among the Lenders which funded the applicable disbursement.

    

    (3) Agent
      shall wire transfer to each Lender at such Lender's account as designated on
      Exhibit G hereto (or otherwise specified by each Lender) its Commitment
      Percentage of any payments (to the extent payable pursuant to Section 8.5(b))
      within one (1) Business Day of Agent's receipt of such payment. Agent shall
      pay
      to the Lenders interest thereon, at the Federal Funds Rate from the Business
      Day
      following receipt of such funds by Agent until such fund are paid in immediately
      available funds to the Lender.

    

    (4) Any
      Lender desiring to make a claim for costs or taxes payable by Borrower shall
      deliver a certificate to Agent setting forth the basis and calculation thereof
      and the Agent shall forward such certificate to the Borrower. Except as provided
      in the Loan Documents, each Lender shall be responsible for any taxes payable
      in
      respect of amounts paid hereunder. All payments made by Agent to Lenders shall
      be made without withholding for taxes, charges, or levies, except as may be
      required by law. Each Lender shall on demand from Agent provide completed and
      signed copies of certificates required to show exemption of such Lender from
      United States withholding taxes.

    
       

      
        
          
          

        

        
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    (b) Application
      of Recoveries.
      Except
      to the extent otherwise provided in Section 8.7 hereof, all payments made and
      actually received by the Agent in respect of the Loan (from any person or
      source) shall be applied in the following order of priority:

    

    (1) to
      the
      reimbursement of any costs incurred by the Agent to administer, enforce, collect
      or deal with the Loans (including payments made pursuant to Sections 8.5(a)(2)
      and (3) hereof (or to reimbursement of the Lenders to the extent such costs
      have
      been paid by the Lenders);

    

    (2) to
      the
      repayment of any Protective Advances (to the extent not paid pursuant to clause
      (1) above);

    

    (3) to
      the
      payment of all interest (including interest calculated at the Default Rate)
      due
      and payable on each Note;

    

    (4) to
      the
      payment of fees payable under the Loan Documents; 

    

    (5) to
      the
      payment of any Interest Rate SWAP liabilities; and 

    

    (6) to
      the
      payment of principal of each Note.

    

    (c) Excess
      Payments.
      If any
      Lender shall obtain any payment (whether voluntary, involuntary, through the
      exercise of any right of set off or otherwise) on account of its interest in
      the
      Loans in excess of its Commitment Percentage in the Loan, such Lender will
      make
      such disposition and arrangements with the other Lenders with respect to such
      excess, either by way of distribution, pro tanto assignment of claims,
      subrogation or otherwise, as shall result in each Lender receiving in respect
      of
      the Note held by it its proportionate payment as contemplated by this
      Agreements; provided, however, that if all or any portion of such excess payment
      is thereafter recovered by the Borrower or other party entitled thereto through
      legal action or otherwise, each Lender shall reimburse the party returning
      such
      excess payment in an amount equal to such Lender's Commitment Percentage of
      the
      excess payment.

    

    (d) Liability
      for Advances.
      If in
      the reasonable opinion of the Agent the distribution of any amount received
      by
      it in such capacity hereunder or under any of the other Loan Documents might
      involve it in material liability, it may refrain from making distribution until
      its right to make distribution shall have been adjudicated by a court of
      competent jurisdiction, provided that the Agent shall invest any such
      undistributed amounts in overnight obligations on behalf of the Lenders and
      interest thereon shall be paid pro rata to the Lenders in accordance with their
      respective Commitment Percentages. If a court of competent jurisdiction shall
      adjudge that any amount received and distributed by the Agent is to be repaid,
      each Person to whom any such distribution shall have been made shall either
      repay to the Agent its proportionate share of the amount so adjudged to be
      repaid or shall pay over the same in such manner and to such Persons as shall
      be
      determined by such court.

    
       

      
        
          
          

        

        
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    8.6 Management
      of Acquired Collateral.
      If,
      following any Event of Default, Agent acquires title to the Property by
      foreclosure under the Deed of Trust (or by deed in lieu of such foreclosure)
      or
      Agent realizes upon any other collateral for the Loan, Agent shall hold title
      to
      such collateral in its own name as Agent for the Lenders to the extent of their
      Commitment Percentages. Each Lender hereby irrevocably waives any right to
      seek
      a partition of any interests in the Property. Agent shall have the sole and
      exclusive right to make (or to refrain from making) all decisions with respect
      to, and to perform (or refrain from performing) all actions with respect to,
      the
      leasing, encumbering, use, operation, maintenance, improvement, repair and
      restoration of the Property (and any Improvements located thereon) or
      disposition of any other collateral; provided, however, that, notwithstanding
      anything contained in this Agreement to the contrary, Agent shall not, without
      the prior written consent of the Majority Lenders, (a) sell (or lease as a
      whole) the Property or encumber the Property with a mortgage, deed of trust
      or
      similar instrument securing indebtedness for borrowed money, or (b) make any
      single expenditure with respect to the Property in an amount in excess of
      $500,000 (exclusive of taxes and assessments, insurance premiums, utility
      charges and expenditures required to comply with applicable laws), (c) make
      any
      material repairs, restorations and/or improvements to the Property (except
      to
      the extent required by applicable Governmental Requirements) or (d) dispose
      of
      any other collateral. Subject to the foregoing, each Lender, pro rata in
      accordance with its Commitment Percentage, shall reimburse Agent, on demand,
      for
      all costs and expenses incurred by Agent in connection with the sale, lease,
      encumbering, use, operation, maintenance, improvement, repair and restoration
      of
      the Property (including all costs and expenses incurred by Agent to pay taxes
      and assessments, utility charges, insurance premiums, common area maintenance
      charges, leasing commissions, tenant improvement costs, repair costs and
      restoration costs). The indemnity provisions contained in Section 8.1(b) above,
      shall apply equally to actions (and omissions) by Agent with respect to the
      Property so acquired by Agent. Each Lender shall participate pro rata in
      accordance with their respective Commitment Percentage in all income, expenses,
      profits and losses of the Property.

    

    8.7 Defaulting
      Lender.

    

    (a) Defaults.
      If for
      any reason any Lender becomes a Defaulting Lender, then in addition to the
      rights and remedies that may be available to the Agent and the other Lenders
      at
      law and in equity, such Defaulting Lender's right to participate in the
      administration of the Loan and the Loan Documents, including, without
      limitation, any rights to consent to or direct any action or inaction of the
      Agent, shall be suspended during the pendency of such failure or refusal.
      Borrower acknowledges and agrees that (1) the obligations of the Lenders under
      this Agreement are several, (2) no Lender is or will be obligated to lend
      Borrower more than the amount set forth in Exhibit I hereto (or the applicable
      Assignment and Assumption Agreement) for such Lender, nor to fund any part
      of
      any advance except upon fulfillment of all applicable conditions precedent
      provided herein and in the other Loan Documents, (3) except to the extent
      expressly provided in this Agreement, Borrower shall have no recourse or claim
      against a non defaulting Lender nor against Agent (so long as the same have
      otherwise complied with their obligations under this Agreement), for any
      deficiency or any liability, loss, damage or expense resulting from the default
      of a Defaulting Lender, and (4) the Commitment Percentage of the Committed
      Amount of any Lender shall not be increased or decreased as a result of the
      failure by any other Lender to perform its obligation to make an
      advance.

    
       

      
        
          
          

        

        
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    (b) Remedies.
      If for
      any reason the Defaulting Lender fails to make timely payment to any other
      party
      to this Agreement of any amount required to be paid to it hereunder, in addition
      to other rights and remedies which such other party may have under Section
      8.7(a) or otherwise, such other party shall be entitled (1) to collect interest
      from the Defaulting Lender for the period from the date on which the payment
      was
      due until the date on which the payment is made for each day during such period
      at the Federal Funds Rate, (2) to withhold or set off, and to apply to the
      payment of the defaulted amount and any related interest, any amounts to be
      paid
      to the Defaulting Lender under this Agreement, (3) to bring an action or suit
      against the Defaulting Lender in a court of competent jurisdiction to recover
      the defaulted amount and any related interest, (4) to arrange for the purchase
      of the Commitment Percentage of the Defaulting Lender as provided in Section
      8.7(d), and (5) to advance funds on behalf of the Defaulting Lender as provided
      in Section 8.7(e).

    

    (c) Indemnity.
      The
      Defaulting Lender shall indemnify, defend, and hold Agent and each of the other
      Lenders harmless from and against any and all losses, damages, liabilities,
      and
      expense (including attorneys' fees) which they may sustain or incur by reason
      of
      or in consequence of the Defaulting Lender's failure or refusal to abide by
      the
      terms of this Agreement.

    

    (d) Purchase
      Right.
      If a
      Lender becomes a Defaulting Lender, the other Lenders who are not Defaulting
      Lenders shall have the right, but not the obligation, in their sole discretion,
      to acquire (pro rata based on the Commitment Percentages of the Lenders
      exercising such right) all of such Defaulting Lender's right, title, and
      interest in and to the Loan. The purchase price shall be the principal and
      accrued interest allocable to the Defaulting Lender's Commitment Percentage
      of
      the Loan and shall be paid on the closing day of such purchase. On the date
      of
      closing of such purchase, the Defaulting Lender shall pay the Agent a processing
      fee of $5,000. The Defaulting Lender shall retain liability for all obligations
      in respect of the Loan and this Agreement arising prior to the date of transfer
      and shall execute and deliver such documents as may be reasonably necessary
      to
      effect such transfer.

    

    (e) Default
      Loans.
      If a
      Lender becomes a Defaulting Lender, the other Lenders may (pro rata based on
      the
      Commitment Percentages of the Lenders exercising such right), but are not
      obligated to, make advances to the Agent in the aggregate amount that the
      Defaulting Lender is obligated to advance under this Agreement. Such advances
      shall be treated as loans made to the Defaulting Lender, shall bear interest
      at
      the Default Rate (payable on demand), shall be due and payable upon demand,
      and
      shall be paid prior to any payment being made to the Defaulting
      Lender.

    
       

      
        
          
          

        

        
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    (f) Cumulative
      Remedies and Survival.
      The
      exercise of the above remedies shall not reduce, diminish or liquidate the
      Defaulting Lender's obligation for the sharing of losses and reimbursement
      of
      costs, liabilities, and expenses under the Loan Documents and this Agreement.
      The obligations of the Defaulting Lender arising prior to any purchase pursuant
      to Section 8.7(d) shall survive any such purchase.

    

    8.8 Representations,
      Warranties and Acknowledgments.

    

    (a) Authorization,
      etc.
      Each
      Lender represents and warrants, as of the date hereof, as follows:

    

    (1) Such
      Lender has all necessary corporate power and authority to own its interest
      in
      the Loan and the Loan Documents, and has all necessary corporate power and
      authority to perform its obligations with respect to this Agreement and the
      Loan
      Documents;

    

    (2) The
      execution and delivery of this Agreement and all other instruments and documents
      executed and delivered in connection therewith by such Lender have been duly
      authorized by all requisite corporate action of such Lender; and

    

    (3) No
      approval, authorization, order, license or consent of, or registration of filing
      with, any Governmental Authority or other person is required in connection
      with
      such Lender's execution and delivery of this Agreement by such
      Lender.

    

    (b) Independent
      Decision.
      Each
      Lender agrees that it has, independently and without reliance upon any other
      party hereto, or upon the directors, officers, agents or employees of any other
      party hereto, but only in reliance upon information supplied to it by or on
      behalf of the Borrower and upon such other information as it has deemed
      appropriate, made its own independent credit analysis and decision to enter
      into
      this Agreement and the Loan Documents. Without limiting the foregoing, each
      Lender acknowledges that it has received copies of the Loan Documents and
      financial statements, certificates, instruments, documents, affidavits,
      resolutions and agreements as it deems necessary to make its credit analysis
      and
      decisions in respect of the Loan. Each Lender also agrees that it shall,
      independently and without reliance upon any other party hereto, continue to
      make
      its own independent credit analyses and decisions in acting or not acting under
      the Loan Documents. Except as specifically provided herein, the Agent shall
      have
      no duty or responsibility, either initially or on a continuing basis, to provide
      any Lender with any credit or other information with respect thereto, whether
      coming into its possession before the Closing Date or at any time or times
      thereafter.

    
       

      
        
          
          

        

        
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    (c) No
      Reliance.
      Each
      Lender hereby acknowledges that, except as specifically set forth herein, Agent
      (i) makes no warranty or representation to Lenders for any statements,
      warranties or representations (written or otherwise, express or implied) made
      in
      or in connection with the Loan Documents of for the financial condition of
      the
      Borrower or for the title or the value of any of the collateral for the Loan,
      and (ii) shall not be responsible to the Lenders for any recitals, statements,
      representations or warranties herein or for the due execution, effectiveness,
      legality, validity, enforceability, genuineness, sufficiency, or collectibility
      of any of the Loan Documents or any other instrument or document furnished
      pursuant thereto or in connection with the Loan or the legality, validity,
      enforceability, genuineness, sufficiency, perfection or priority of any rights
      in all or any portion of the collateral for the Loan. The Agent shall not be
      bound to ascertain whether any notice, consent, waiver or request delivered
      to
      it by the Borrower or Guarantor or any holder of any Note shall have been duly
      authorized or is true, accurate and complete. Agent shall not be required to
      make any inquiry concerning either the performance or observance of any of
      the
      terms, provisions or conditions of this Agreement or any of the other Loan
      Documents or the financial condition of the Borrower or any of its Affiliates,
      or the existence or possible existence of any Event of Default or any default
      which, with the giving of notice, passage of time, or both, would become an
      Event of Default.

    

    8.9 Assignments;
      Participation.

    

    (a) Permitted
      Assignments.
      Any
      Lender may, upon the prior approval of Agent, assign to any affiliate of such
      Lender all or a portion of its respective Commitment Percentage of the Loan,
      in
      such a manner as to create privity of contract between such affiliate and the
      Borrower and to make such affiliate a Lender for all purposes hereunder. Any
      Lender may, upon the prior approval of Agent, assign to any entity which meets
      the following conditions ("Assignee Lender") all or a portion of its respective
      Commitment Percentage of the Loan, in such a manner as to create privity of
      contract between such person and the Borrower and to make such person a Lender
      for all purposes hereunder:

    

    (1) The
      minimum portion of the total commitment which the assigning Lender may assign
      to
      an Assignee Lender shall be Five Million Dollars ($5,000,000.00).

    

    (2) Without
      limiting the power of consent in subsection (4) below, an Assignee Lender (or
      its direct or indirect parent) shall be either (A) a commercial lender organized
      under the laws of the United States, or any state thereof, and having total
      assets in excess of Two Billion Dollars ($2,000,000,000) or (B) a commercial
      bank organized under the laws of any other country which has total assets in
      excess of Ten Billion Dollars ($10,000,000,000), (C) any other financial
      institution which has total assets in excess of Ten Billion Dollars
      ($10,000,000,000), or (D) a financial institution whose deposits are insured
      by
      the Federal Deposit Insurance Corporation.

    

    (3) The
      senior unsecured debt of an Assignee Lender (or its direct or indirect parent)
      shall have a rating of Baa 2 or higher from Moody's Investors Service, Inc.
      or a
      comparable rating agency. 
       

      
        
          
          

        

        
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    (4) Such
      assignment shall have been approved by Agent, which approval shall not be
      unreasonably withheld. No sub assignments shall be permitted.

    

    (5) The
      Assignee Lender shall have paid to the Agent an administrative fee of $5,000.00
      to process the admission of such Assignee Lender.

    

    (6) The
      Assignee Lender shall not be Borrower or any of Borrower's
      Affiliates.

    

    (b) Assignment
      and Assumption.
      The
      Borrower and Agent may continue to deal solely and directly with the assigning
      Lender in connection with the interest so assigned to an Assignee Lender (or
      to
      an affiliate of such Lender) until such time as (i) written notice of such
      assignment, together with payment instructions, addresses and related
      information with respect to the Assignee Lender (or such affiliate) shall have
      been given to the Borrower and Agent by the assigning Lender and the Assignee
      Lender (or such affiliate); (ii) the assigning Lender and the Assignee Lender
      (or such affiliate) shall have delivered to the Borrower and Agent an Assignment
      and Assumption.

    

    Within
      ten (10) Business Days after written request, Borrower will execute and deliver
      to Agent an appropriate replacement promissory note or replacement promissory
      notes in favor of each assignee (and assignor, if such assignor is retaining
      a
      portion of its Commitment Percentage and advances) reflecting such assignee's
      (and assignor's) Commitment Percentage of the Committed Amount. Upon execution
      and delivery of such replacement promissory note(s) the original promissory
      note
      or notes evidencing all or a portion of the Commitment Percentage of the
      Committed Amount and advances being assigned shall be canceled and returned
      to
      Borrower.

    

    (c) Notice
      by Agent.
      Promptly following receipt by Agent of an executed Assignment and Assumption,
      Agent shall give notice to the Borrower and to the Lenders of: (i) the
      effectiveness of the assignment by the assigning Lender to the Assignee Lender
      (or the affiliate of the Lender); and (ii) the revised percentages and maximum
      amounts of the Commitment Percentage of the Committed Amount in effect as a
      result of such assignment.

    

    (d) Adjustment
      of Shares.
      Immediately upon delivery of the Assignment and Assumption to Agent, this
      Agreement shall be deemed to be amended to the extent, but only to the extent,
      necessary to reflect the addition of the Assignee Lender (or affiliate of the
      Lender) and the resulting adjustment of the Commitment Percentage arising
      therefrom. The Commitment Percentage of the Committed Amount assigned to each
      Assignee Lender (or such affiliate) shall reduce the Commitment Percentage
      of
      the Committed Amount of the assigning Lender by a like amount.

    

    (e) Rights
      of Assignee.
      From
      and after the date upon which Agent notifies the assigning Lender that it has
      received an executed Assignment and Assumption: (1) the Assignee Lender (or
      the
      Lender's affiliate) thereunder shall be a party to this Agreement and, to the
      extent that rights and obligations hereunder have been assigned to it pursuant
      to such Assignment and Assumption, shall have the rights and obligations of
      a
      Lender under this Agreement; provided, however, that the Assignee Lender's
      consent shall be required only with respect to matters particularly set forth
      in
      Sections 8.4(b)(1), (3), (4) and (7) hereof, and (2) the assigning Lender shall,
      to the extent that rights and obligations under this Agreement have been
      assigned by it pursuant to such Assignment and Assumption, relinquish its rights
      and be released from its obligations under this Agreement.

    
       

      
        
          
          

        

        
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    (f) Assignee's
      Agreements.
      By
      executing and delivering an Assignment and Assumption, the Assignee Lender
      (or
      the Lender's affiliate) thereunder confirms and agrees as follows: (1) other
      than as provided in such Assignment and Assumption, the assigning Lender makes
      no representation or warranty and assumes no responsibility with respect to
      any
      statements, warranties or representations made in or in connection with this
      Agreement or the execution, legality, validity, enforceability, genuineness,
      sufficiency or value of this Agreement, the Note or any other instrument or
      document furnished pursuant to the Loan; (2) the assigning Lender makes no
      representation or warranty and assumes no responsibility with respect to the
      financial condition of the Borrower or any other parties or the performance
      or
      observance by the Borrower of any of its obligations under the Note and this
      Agreement; (3) the Assignee Lender (or such affiliate) has received a copy
      of
      this Agreement, together with such other documents and information as the
      Assignee Lender (or such affiliate) has deemed appropriate to make its own
      credit analysis and decision to enter into the Assignment and Assumption; (4)
      the Assignee Lender (or such affiliate) will, independently and without reliance
      upon Agent, continue to make its own credit decisions in taking or not taking
      action under this Agreement; (5) the Assignee Lender (or such affiliate) hereby
      appoints and authorizes Agent to take such action as administrative agent on
      its
      behalf and to exercise such powers under the Loan Documents and this Agreement
      as are delegated to Agent thereunder and hereunder, together with such powers
      as
      are reasonably incidental thereto; and (6) the Assignee Lender (or such
      affiliate) agrees that it will perform all of the obligations which by the
      terms
      of this Agreement are required to be performed by it as a Lender and confirms
      the representations and warranties of the assigning Lender under this
      Agreement.

     

    (g) Participations.
      Any
      Lender may sell a participation interest in all or any portion of the Loan
      without the prior consent of the Agent and the other Lenders; provided, however,
      the voting rights of any participants shall be limited to actions with respect
      to increases in the maximum Committed Amount, extensions of the maturity date
      beyond the extension option terms and changes in the interest rates applicable
      to the Loan.

    

    8.10 Other
      Business.
      The
      Agent and each Lender may accept deposits from, lend money to, and generally
      engage in any kind of banking, trust or other business with Borrower or any
      affiliate of Borrower as if it were not performing the duties specified herein,
      and may accept fees and other considerations from the Borrower or any such
      affiliate for services in connection with this Agreement and otherwise without
      having to account for the same to the other parties hereto.

    
       

      
        
          
          

        

        
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    8.11 Consents.
      If the
      Agent requests in writing consent or approval from the Lenders and any Lender
      does not respond to such request within five (5) Business Days (or such other
      period as may be provided herein), such Lender shall be deemed to have given
      such consent or approval.

    

    8.12 Agent
      as Lender.
      In its
      individual capacity as a Lender, U.S. Bank shall have the same obligations
      and
      the same rights, powers and privileges in respect to its Commitment Percentage
      and the Advances made by it, and as the holder of any Note as it would have
      were
      it not also the Agent.

    

    8.13 Notification
      of Defaults and Events of Default.
      Each
      Lender hereby agrees that, upon learning of the existence of a default or an
      Event of Default, it shall (to the extent notice has not previously been
      provided) promptly notify the Agent thereof. The Agent hereby agrees that upon
      receipt of any notice under this provision it shall promptly notify the other
      Lenders of the existence of such default or Event of Default.

    

    8.14 No
      Reliance by Borrower.
      The
      provisions of this Article VIII are solely for the benefit of Agent and the
      Lenders, and Borrower shall have no right to rely on or enforce any of the
      provisions hereof; provided, however, the foregoing shall in no way limit
      Borrower's obligations under this Article VIII. In performing its functions
      and
      duties under this Agreement, Agent shall act solely as Agent of the Lenders
      and
      does not assume and shall not be deemed to have assumed any obligation toward
      or
      relationship of agency or trust with or for Borrower or any other
      person.

    

    8.15 Reliance.
      Agent
      shall be entitled to rely upon any written notices, statements, certificates,
      orders or other documents, telecopies or any telephone message believed by
      it in
      good faith to be genuine and correct and to have been signed, sent or made
      by
      the proper person, and with respect to all matters pertaining to this Agreement
      or any of the other Loan Documents and its duties hereunder or thereunder,
      upon
      advice of legal counsel (including counsel for Borrower), independent public
      accountants and other experts selected by it.

    

    8.16 Pledge
      to Federal Reserve Bank.
      Anything in this Agreement to the contrary notwithstanding, without the need
      to
      comply with any of the formal or procedural requirements of this Agreement,
      including this Section 8.16, any Lender may at any time and from time to time
      pledge and assign all or any portion of its rights under all or any of the
      Loan
      Documents to a Federal Reserve Bank; provided that no such pledge or assignment
      shall release such Lender from its obligations thereunder. To facilitate any
      such pledge or assignment, Agent shall, at the request of such Lender, enter
      into a letter agreement with the Federal Reserve Bank in, or substantially
      in,
      the form of the exhibit to Appendix C to the Federal Reserve Bank of New York
      Operating Circular No. 10.

    
       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

    8.17 Confidentiality.

    

    (a) Lenders
      agree to use commercially reasonable efforts to preserve the confidential nature
      of financial information obtained pursuant to the requirements of this Agreement
      and identified as confidential by Borrower or Guarantors; provided, however,
      that the foregoing shall not apply to (i) disclosures required of any Lender
      pursuant to any applicable law, rule, regulation or order of any Governmental
      Authority, (ii) any information contained in any report prepared or delivered
      pursuant to the reporting requirements of federal or state securities laws
      and
      regulations, including, but not limited to, any prospectus, registration
      statement, proxy materials or periodic reports, (iii) disclosures made to any
      prospective purchaser or participant in the Loan or any Affiliate of Agent,
      (iv)
      disclosures made to any third party contractor or consultant engaged in
      connection with the Loan or the Property, including, but not limited to, any
      attorney, appraiser, inspector or accountant, so long as the engaging Lender
      reasonably believes that it is the understanding of such contractor or
      consultant that confidential information is not to be disclosed, (v) any
      disclosures made in connection with the enforcement of any of the Loan Documents
      or any litigation in connection therewith, or (vi) disclosures of information
      that is publicly available other than as a result of a disclosure by any
      Lender.

     

    (b) Notwithstanding
      anything to the contrary set forth herein or in any other written or oral
      understanding or agreement to which the parties hereto are parties or by which
      they are bound, the parties hereto acknowledge and agree that (i) any
      obligations of confidentiality contained herein and therein do not apply and
      have not applied from the commencement of discussions between the parties to
      the
      tax treatment and tax structure of the transactions contemplated by the Loan
      Documents (and any related transactions or arrangements), and (ii) each party
      (and each of its employees, representatives, or other agents) may disclose
      to
      any and all parties as required by applicable laws, without limitation of any
      kind, the tax treatment and tax structure of the transactions contemplated
      by
      the Loan Documents and all materials of any kind (including opinions or other
      tax analyses) that are provided to such party relating to such tax treatment
      and
      tax structure, all within the meaning of Treasury Regulations Section 1.6011
      4;
      provided, however, that each party acknowledges that any privilege that may
      exist for the benefit of a party, in such party's sole discretion, to maintain
      the confidentiality of a communication relating to the transactions contemplated
      by the Loan Documents, including a confidential communication with its attorney
      or a confidential communication with a federally authorized tax practitioner
      under Section 7525 of the Internal Revenue Code, is not intended to be affected
      by the foregoing. 

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, intending to be legally bound, the parties have executed and
      delivered this Agreement, under seal, as of the date first written
      above.

    

    Borrower:

    

    GAMETECH
      INTERNATIONAL, INC.

    

      
        	
                By:

              	      

	
                Name:

              	   
	 
	
                Title:

              	   
	 

      

    

     

    Agent:

    

    U.S.
      BANK
      NATIONAL ASSOCIATION,

    as
      Agent

     

    
      	
              By:

            	      

	
              Name:

            	   
	 
	
              Title:

            	   
	 

    

     

    Lenders:

    

    U.S.
      BANK
      NATIONAL ASSOCIATION

     

    
      	
              By:

            	      

	
              Name:

            	   
	 
	
              Title:

            	   
	 

    

     

    BANK
      OF
      THE WEST

     

    
      	
              By:

            	      

	
              Name:

            	   
	 
	
              Title:

            	   
	 

    

    
       

      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    

      LIST
        OF SCHEDULES 

      

      
        	
                Schedule 4.4

              	
                Litigation
                  or Defaults

              
	
                Schedule 4.14(b)

              	
                ERISA
                  Events

              
	
                Schedule 4.19

              	
                Intellectual
                  Property

              

      

       

      LIST
        OF EXHIBITS

      

      
        	
                EXHIBIT A

              	
                Assignment
                  and Assumption Agreement

              
	
                EXHIBIT B

              	
                L/C
                  Draw Request

              
	
                EXHIBIT C

              	
                Legal
                  Description of the Land

              
	
                EXHIBIT D

              	
                Permitted
                  Encumbrances

              
	
                EXHIBIT E

              	
                Title
                  Insurance Requirements

              
	
                EXHIBIT F

              	
                Standard
                  Insurance Requirements

              
	
                EXHIBIT G

              	
                Notices
                  and Wire Instructions

              
	
                EXHIBIT H

              	
                Commitments
                  and Commitment Percentages of Lenders

              
	
                EXHIBIT I

              	
                Compliance
                  Certificate

              

      

      

      
        
          
          

        

        
          59

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