Document:

exhibit4.htm

    Exhibit
      4

    

     

    

     

    August
      31, 2007

     

    VIA
      REGISTERED MAIL

     

    Archon
      Corporation

    4336
      Losee Road, Suite 5

    North
      Las
      Vegas, Nevada 89030

    Attention:
      John M. Garner, Secretary

     

    

     

    
      	
               

            	
              Re:

            	
              Archon
                Corporation, Letter of
                Transmittal

            

    

     

    

     

    Dear
      Mr.
      Garner:

     

    We
      write this letter on behalf of our
      clients D. E. SHAW LAMINAR PORTFOLIOS, L.L.C.; LC CAPITAL MASTER FUND,
      LTD; LC CAPITAL / CAPITAL Z SPV, LP; MAGTEN ASSET MANAGEMENT CORP; MERCURY
      REAL
      ESTATE SECURITIES FUND LP; MERCURY REAL ESTATE SECURITIES OFFSHORE FUND LIMITED;
      BLACK HORSE CAPITAL LP; BLACK HORSE CAPITAL (QP) LP; BLACK HORSE CAPITAL
      OFFSHORE LTD; and PLAINFIELD SPECIAL SITUATIONS MASTER FUND
      LIMITED.

    

    As
      of the date of this letter, our
      clients collectively hold 2,097,811shares of Exchangeable
      Redeemable
      Preferred Stock, par value $0.01 per share (the “Exchangeable Preferred
      Stock”), of Archon
      Corporation, a Nevada corporation (the “Company”).  Our
      clients are in
      receipt of that certain Notice of Redemption (the “Redemption”) of the
      Exchangeable Preferred Stock dated as of July 31, 2007 (the “Notice”),
      and delivered on behalf of the
      Company by Paul W. Lowden of the Company, together with the related Letter
      of
      Transmittal (the “Letter”)
      for the redemption of the
      Exchangeable Preferred Stock.  Letters have been submitted by, or on
      behalf of, each of our clients in respect of their respective shares of
      Exchangeable Preferred Stock on or about the date hereof.

    

     

                 It
      is our clients’ position that the Redemption will violate law because, among
      other things, the Company has miscalculated the Redemption Price (as defined
      in
      the Notice).  We have filed a complaint on behalf of our clients
      against the Company in the United States Court for the District of Nevada so
      alleging.  Specifically, the Company’s calculation of the Redemption
      Price fails to take into account the compounding of accrued and unpaid dividends
      with respect to the Exchangeable Preferred Stock as expressly provided in that
      certain Certificate of Designation of the Exchangeable Preferred Stock (the
      “Certificate”), as filed with the Secretary of State of the State of
      Nevada on September 30, 1993.  As a result, the Redemption Price per
      share of Exchangeable Preferred Stock is significantly greater than that
      calculated by the Company and noted in the Letter.

     

    

     

    None
      of the delivery of this letter,
      the submission of a Letter along with the share certificates for the
      Exchangeable Preferred Stock or the receipt of payment by any of our clients
      of
      the incorrect Redemption Price is intended to, nor does it, waive any rights,
      remedies, powers, privileges and benefits under the Certificate, law or
      otherwise, and each of our clients reserve all of its rights.

     

    

     

    Sincerely,

     

    BOIES,
      SCHILLER & FLEXNER
      LLP

     

    

     

    _______________________________

    /s/
      Jonathan Sherman, PartnerFiled by Bowne Pure Compliance

 

EXHIBIT 10.1

DEFAULT WAIVER AND SEVENTH
AMENDMENT TO

LOAN AND SECURITY AGREEMENT

This DEFAULT WAIVER AND SEVENTH AMENDMENT to Loan and
Security Agreement (this “Amendment”) is entered into this 30th day
of August, 2007, by and between Silicon Valley Bank (“Bank”) and
Smart Move, Inc., a Delaware corporation (“Borrower”) whose address
is 5990 Greenwood Plaza Boulevard, Building 2, Suite 390, Greenwood
Village, Colorado 80111.

RECITALS

A. Bank and Borrower have entered into that certain Loan
and Security Agreement dated as of April 26, 2005, as amended by that
certain Loan Modification Agreement by and between Bank and Borrower dated as
of June 21, 2005, that certain Second Amendment to Loan and Security
Agreement by and between Bank and Borrower dated as of August 29, 2005,
that certain Default Waiver and Third Amendment to Loan and Security Agreement
by and between Bank and Borrower dated as of December 21, 2005, that
certain Fourth Amendment to Loan and Security Agreement by and between Bank and
Borrower dated as of May 12, 2006, that certain Default Waiver and Fifth
Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of October 5, 2006 and that certain Assumption, Default Waiver and
Sixth Amendment of Loan and Security Agreement by and between Bank and Borrower
dated as of March 22, 2007 (as the same may from time to time be further
amended, modified, supplemented or restated, the “Loan Agreement”).
Bank has extended credit to Borrower for the purposes permitted in the Loan
Agreement.

B. Borrower is currently in default of the Loan
Agreement for failing to comply with the Remaining Months Liquidity covenant
set forth in Section 6.7 of the Loan Agreement for the month ended
July 31, 2007 (the “Existing Default”).

C. Borrower has requested that Bank waive its rights and
remedies against Borrower, limited specifically to the Existing Default.
Although Bank is under no obligation to do so, Bank is willing to not exercise
its rights and remedies against Borrower related to the specific Existing
Default on the terms and conditions set forth in this Amendment, so long as
Borrower complies with the terms, covenants and conditions set forth in this
Amendment.

D. Borrower has further requested that Bank amend
the Loan Agreement to (1) amend the Financial Covenant requirements stated
in Section 6.7 of the Loan Agreement, (2) revise the interest rate
accrued on the Obligations, and (3) make certain other revisions to the
Loan Agreement as more fully set forth herein. Bank has agreed to so amend
certain provisions of the Loan Agreement, but only to the extent, in accordance
with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

 

3

 

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing
recitals and other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, and intending to be legally bound, the parties
hereto agree as follows:

1. Definitions. Capitalized terms used but not
defined in this Amendment shall have the meanings given to them in the Loan
Agreement.

2. Waiver
of Covenant Default.

Bank hereby waives
Borrower’s Existing Default under the Loan Agreement. Bank’s waiver
of Borrower’s compliance of this covenant shall apply only to the
foregoing period. Accordingly, hereinafter, Borrower shall be in compliance
with this covenant.

Bank’s agreement to waive the above-described default
(1) in no way shall be deemed an agreement by the Bank to waive
Borrower’s compliance with the above-described covenant as of all other
dates and (2) shall not limit or impair the Bank’s right to demand strict
performance of this covenant as of all other dates and (3) shall not limit
or impair the Bank’s right to demand strict performance of all other
covenants as of any date.

3. Amendments to Loan Agreement.

3.1 Section 2.1.2
(Second Equipment Advances) and Section 2.3.1 (As to Equipment
Advances). Sections 2.1.2(b) and 2.3.1(a) are amended in part to
revise the current interest rate accrued on each Equipment Advance and Second
Equipment Advance to a per annum rate of 9.25%, effective as of the date of
this Amendment.

3.2
Section 6.7 (Financial Covenants). Effective as of August 1,
2007, Section 6.7 is amended in its entirety and replaced with the
following:

6.7 Financial
Covenants.

Borrower will
maintain as of the last day of each month:

Minimum Liquidity Ratio. A ratio of cash plus Accounts net of
reserves, to outstanding Obligations of at least 2.50 to 1.00.

3.3
Section 6.10 (Equity Investment/Cash Balances). Section 6.10 is
hereby deleted and replaced with the term, “Intentionally Left Blank.

4. Limitation of Amendments.

4.1 The
amendments set forth in Section 3, above, are effective for the
purposes set forth herein and shall be limited precisely as written and shall
not be deemed to (a) be a consent to any amendment, waiver or modification
of any other term or condition of any Loan Document, or (b) otherwise
prejudice any right or remedy which Bank may now have or may have in the future
under or in connection with any Loan Document.

4

 

4.2 This
Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are
hereby ratified and confirmed and shall remain in full force and effect.

5. Representations and Warranties. To induce Bank
to enter into this Amendment, Borrower hereby represents and warrants to Bank
as follows:

5.1
Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true,
accurate and complete in all material respects as of the date hereof (except to
the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of
Default other than the Existing Defaults has occurred and is continuing;

5.2 Borrower
has the power and authority to execute and deliver this Amendment and to
perform its obligations under the Loan Agreement, as amended by this Amendment;

5.3 The
organizational documents of Borrower delivered to Bank on March 22, 2007
remain true, accurate and complete and have not been amended, supplemented or
restated and are and continue to be in full force and effect;

5.4 The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, have been duly authorized by all necessary action on the part of
Borrower;

5.5 The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not and will not contravene (a) any law or regulation binding on
or affecting Borrower, (b) any contractual restriction with a Person
binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding
on Borrower, or (d) the organizational documents of Borrower;

5.6 The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not require any order, consent, approval, license, authorization
or validation of, or filing, recording or registration with, or exemption by
any governmental or public body or authority, or subdivision thereof, binding
on either Borrower, except as already has been obtained or made; and

5.7 This
Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general
application and equitable principles relating to or affecting creditors’
rights.

5

 

6. Prior Agreement. Except as expressly provided for in
this Amendment, the Loan Documents are hereby ratified and reaffirmed and shall
remain in full force and effect. This Amendment is not a novation and the terms
and conditions of this Amendment shall be in addition to and supplemental to
all terms and conditions set forth in the Loan Documents. In the event of any
conflict or inconsistency between this Amendment and the terms of such
documents, the terms of this Amendment shall be controlling, but such document
shall not otherwise be affected or the rights therein impaired.

7. Release
by Borrower.

7.1 FOR GOOD AND
VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and
discharges Bank and its present or former employees, officers, directors,
agents, representatives, attorneys, and each of them, from any and all claims,
debts, liabilities, demands, obligations, promises, acts, agreements, costs and
expenses, actions and causes of action, of every type, kind, nature,
description or character whatsoever, whether known or unknown, suspected or
unsuspected, absolute or contingent, arising out of or in any manner whatsoever
connected with or related to facts, circumstances, issues, controversies or
claims existing or arising from the beginning of time through and including the
date of execution of this Amendment (collectively “Released
Claims”). Without limiting the foregoing, the Released Claims shall
include any and all liabilities or claims arising out of or in any manner
whatsoever connected with or related to the Loan Documents, the Recitals
hereto, any instruments, agreements or documents executed in connection with
any of the foregoing or the origination, negotiation, administration, servicing
and/or enforcement of any of the foregoing.

7.2
Intentionally Omitted

7.3 By
entering into this release, Borrower recognizes that no facts or
representations are ever absolutely certain and it may hereafter discover facts
in addition to or different from those which it presently knows or believes to
be true, but that it is the intention of Borrower hereby to fully, finally and
forever settle and release all matters, disputes and differences, known or
unknown, suspected or unsuspected; accordingly, if Borrower should subsequently
discover that any fact that it relied upon in entering into this release was
untrue, or that any understanding of the facts was incorrect, Borrower shall
not be entitled to set aside this release by reason thereof, regardless of any
claim of mistake of fact or law or any other circumstances whatsoever. Borrower
acknowledges that it is not relying upon and has not relied upon any
representation or statement made by Bank with respect to the facts underlying
this release or with regard to any of such party’s rights or asserted
rights.

7.4 This
release may be pleaded as a full and complete defense and/or as a cross-
complaint or counterclaim against any action, suit, or other proceeding that
may be instituted, prosecuted or attempted in breach of this release. Borrower
acknowledges that the release contained herein constitutes a material
inducement to Bank to enter into this Amendment, and that Bank would not have
done so but for Bank’s expectation that such release is valid and
enforceable in all events.

7.5 Borrower
hereby represents and warrants to Bank, and Bank is relying thereon, as follows:

6

 

(a) Except as expressly stated in this Amendment,
neither Bank nor any agent, employee or representative of Bank has made any
statement or representation to Borrower regarding any fact relied upon by
Borrower in entering into this Amendment.

(b) Borrower has made such investigation of the
facts pertaining to this Amendment and all of the matters appertaining thereto,
as it deems necessary.

(c) The terms of this Amendment are contractual and
not a mere recital.

(d) This Amendment has been carefully read by
Borrower, the contents hereof are known and understood by Borrower, and this
Amendment is signed freely, and without duress, by Borrower.

(e) Borrower represents and warrants that it is the
sole and lawful owner of all right, title and interest in and to every claim
and every other matter which it releases herein, and that it has not heretofore
assigned or transferred, or purported to assign or transfer, to any person,
firm or entity any claims or other matters herein released. Borrower shall
indemnify Bank, defend and hold it harmless from and against all claims based
upon or arising in connection with prior assignments or purported assignments
or transfers of any claims or matters released herein.

8. Integration. This Amendment and the Loan
Documents represent the entire agreement about this subject matter and
supersede prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Amendment and the Loan Documents merge
into this Amendment and the Loan Documents.

9. Counterparts. This Amendment may be executed in
any number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument.

10. Effectiveness. This Amendment shall be deemed
effective upon (a) the due execution and delivery to Bank of this
Amendment by each party hereto, and (b) Borrower’s payment of an
amendment fee in an amount equal to $5,000.

11. Governing Law. This Amendment and the rights
and obligations of the parties hereto shall be governed by and construed in
accordance with the laws of the State of Colorado.  

[Signature page follows.]

7

 

IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of the date first written above.

	 	 	 
	BANK	 	BORROWER
	 	 	 
	Silicon Valley Bank 
	 	Smart Move, Inc.
	 	 	 
	By: /s/ Brent L. Coesens
	 	By: /s/ Edward Johnson
	 	 	 
	
Name: Brent L. Coesens 

	 	Name: Edward Johnson
	 	 	 
	Title: Relationship Manager
	 	Title: Chief Financial Officer
	 	 	 

8

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