MTR GAMING GROUP INC
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a07-4372_1ex10d1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<html>

<head>







</head>

<body lang="EN-US">

<div>


<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">PURCHASE AND SALE AGREEMENT</font></u></p>

<p style="font-family:Times New Roman;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS PURCHASE AND SALE AGREEMENT (including the
exhibits and schedules attached hereto, this &#147;Agreement&#148;) is made and entered
into this 9</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font><font size="2" style="font-size:10.0pt;">&#160;day of February, 2007 by and between MANDEKIC
COMPANIES, LLC, a Nevada limited liability company (&#147;Purchaser&#148;) and SPEAKEASY
GAMING OF LAS VEGAS, INC., a Nevada corporation (&#147;Seller&#148;).</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">RECITALS</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
is the sole owner of improved real property located at 3227 Civic Center Drive,
in the City of North Las Vegas, County of Clark, State of Nevada, consisting of
approximately 5.5 acres, identified by Clark County Assessor&#146;s Parcel Numbers
139-11-803-002, 139-11-815-001 and 139-11-815-003 and more particularly
described in Exhibit &#147;A&#148; attached hereto and incorporated herein (the &#147;Real
Property&#148;) upon which Seller operates a hotel, casino,<b></b>restaurant, bar and related businesses
commonly known as the Ramada Inn Speedway Hotel and Casino (collectively, the &#147;Business&#148;,
also referred to herein as the &#147;Hotel&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">B.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller desires to sell to Purchaser and Purchaser desires
to purchase from Seller all of Seller&#146;s right, title and interest in and to the
Real Property, the improvements thereon, and the tangible and intangible assets
of Seller used in the ownership and operation of the Seller&#146;s Business.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">NOW, THEREFORE, in consideration
of the mutual promises hereinafter set forth, and of other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Terms</u>.&#160; For all purposes of this Agreement, the
following terms shall have the respective meanings set forth below:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;AAI Rules&#148; means the Rules published by the United
States Environmental Protection Agency for All Appropriate Inquiry Standards
and the requirements of ASTME1527-05.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Accounts Receivable&#148; means all accounts
receivable (including receivables for food, beverages, telephone and casino
credit), notes receivable and indebtedness for borrowed money or overdue
accounts receivable, in each case, due and owing by any third party, but not
including the Tray Ledger.</font></h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Agreement&#148; has the meaning ascribed to it in the
introductory paragraph.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Americans With Disabilities Act&#148; means 42 USC &#167;
12101, et seq. and all laws or regulations from time to time applicable to the
Business governing use, access and accommodations.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Assignment Agreement&#148; has the meaning ascribed to it
in Section 11(a)(iii).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Assumed Liabilities&#148; has the meaning ascribed to it
in Section 7(a).</font></p>


<br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Benefit Plans&#148; has the meaning ascribed to it in
Section 8(q).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Books and Records&#148; has the meaning ascribed to it in
Section 3(a)(xi).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Business&#148; has the meaning ascribed to it in Recital
A.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Business Day&#148; means any day other than a Saturday,
Sunday, or other day on which commercial banks are authorized or required to
close under the laws of the State of Nevada.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Casino&#148; means that portion of the Business consisting
of licensed gaming.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Closing&#148; shall mean the closing of the purchase and
sale of the Purchased Assets in accordance with Section 13(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Closing Date&#148; shall mean the date of Closing provided
for in Section 10.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Closing Statement&#148; shall mean the statement prepared
by the parties in accordance with Section 13(e).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Contracts&#148; means all contracts, agreements and
obligations currently in force relating to the Purchased Assets, including,
without limitation, all sale, management, construction, insurance, commission,
architectural, engineering, operating, employment, service, supply and
maintenance agreements.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Deed&#148; has the meaning ascribed to it in Section
11(a)(i).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Defect Notice&#148; has the meaning ascribed to it in
Section 5(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Defects&#148; has the meaning ascribed to it in Section
5(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Deposit&#148; has the meaning ascribed to it in Section
2(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;DOV&#148; has the meaning ascribed to it in Section
11(a)(iv).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Earnest Money&#148; has the meaning ascribed to it in
Section 2(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Effective Date&#148; means the date on which both Seller
and Purchaser have executed this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Electronic Books and Records&#148; has the meaning
ascribed to it in Section 3(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;ERISA&#148; has the meaning ascribed to it in Section
8(q).</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='2',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Excluded Assets&#148; has the meaning ascribed to it in
Section 3(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Excluded Liabilities&#148; has the meaning ascribed to it
in Section 7(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Extension Fee&#148; has the meaning ascribed to it in
Section 13(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Extension Period&#148; has the meaning ascribed to it in
Section 13(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Federal Tax Law&#148; means the Federal Foreign Investment
in Real Property Tax Act of 1980 and the 1986 Tax Reform Act, as amended.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;FF&amp;E&#148; has the meaning ascribed to it in Section
3(a)(iii).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;FIRPTA&#148; means the Affidavit which is signed at
Closing as it is stated to be a Closing Document.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Financial Information&#148; has the meaning ascribed to it
in Section 8(j).</font></p>

<h6 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Approvals&#148; means all regulatory
registrations, findings of suitability, licenses, consents, approvals, waivers
and authorizations that are necessary for Seller to sell and Purchaser or
Gaming Operator, as applicable, to acquire the Gaming Assets, and for Purchaser
or Gaming Operator, as applicable, to conduct nonrestricted gaming operations
at the Casino.</font></h6>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Assets&#148; means all
Gaming Equipment and Gaming Contracts.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Assignment&#148; has the
meaning ascribed to it in Section 25(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;Gaming </font>Bill of Sale&#148;
has the meaning ascribed to it in Section 25(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Contracts&#148; means all
Contracts that Purchaser agrees to assume pursuant to Section 7(a) herein
specifically relating to, or specifically used in connection with, the
operation of the Casino.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Equipment&#148; means any
and all gaming devices (as defined in NRS 463.0155), gaming device parts
inventory and other related gaming equipment and supplies used in connection
with the operation of a casino, including, without limitation, slot machines,
gaming tables, cards, dice, chips, tokens, player tracking systems, cashless
wagering systems (as defined in NRS 463.014), mobile gaming systems (as defined
in NGC Regulation 14.010(11)) and associated equipment (as defined in NRS
463.0136), which are now located at the Casino as of the date of this Agreement
and used or usable exclusively in the present or future operation of all or any
portion of the Casino, or ordered for future use at the Casino as of the
Closing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Liabilities&#148; means
the Assumed Liabilities specifically relating to the operation of the Casino.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='3',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Operator&#148; means an
entity or person designated by Purchaser in its sole discretion to operate the
Casino following the Closing upon its obtaining all necessary Gaming Approvals.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Gaming Taxes&#148; means the
quarterly fee for a gaming license for a restricted operation (NRS 463.373), the
annual excise tax on slot machines (NRS 463.385), and any and all other license
fees or taxes imposed on the operation of the Gaming Assets by any governmental
agency having jurisdiction over the Purchased Assets.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Governmental Authorities&#148; shall mean any governmental
or quasi-governmental body or agency having jurisdiction over the Purchased
Assets and/or Seller, including, without limitation, the State of Nevada, City
of North Las Vegas and Clark County, Nevada.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Governmental Regulation&#148; shall mean any laws,
ordinances, rules, requirements, resolutions, policy statements and regulations
(including, without limitation, those relating to land use, subdivision,
zoning, environmental, toxic or hazardous waste, occupational health and
safety, water, earthquake hazard reduction, and building and fire codes) of the
Governmental Authorities bearing on the construction, alteration,
rehabilitation, maintenance, use, operation or sale of the Purchased Assets.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Hazardous Substances&#148; means any substance: (i) the
presence of which requires investigation, remediation or disclosure under any
present federal, state or local statute, regulation, ordinance, order, action,
policy or common law; (ii) the presence of which causes or threatens to cause a
nuisance or other harm upon the Property or to adjacent properties or poses or
threatens to pose a hazard to the health or safety of persons on or about the
Real Property; and/or (iii) including, without limitation, waste, pollutants,
oil or other hazardous substances, including, without limitation, petroleum or
petroleum products, radioactive, flammable or explosive substances, asbestos or
asbestos-containing materials, polychlorinated biphenyls and all materials and
wastes which are or become classified as &#147;hazardous substances&#148;, &#147;hazardous
materials&#148; and/or &#147;toxic substances&#148; under any applicable law, as the same may
be amended from time to time, including, but not limited to, the Resource
Conservation and Recovery Act, (RCRA) (42 U.S.C. &#167; 6901, et seq.), the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)
(42 U.S.C. &#167; 9601, et seq.), the Toxic Substances Control Act (15 U.S.C. &#167;
2601, et seq.), the Clean Water Act (33 U. S. C. &#167; 1251, et. seq.), and the
Clean Air Act (42 U. S. C. &#167; 7401, et. seq.).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;House Funds&#148; means all of Seller&#146;s cash and cash
equivalents located at the Hotel, including, without limitation, cash,
negotiable instruments, and other cash equivalents located in cages, drop
boxes, slot machines and other gaming devices, cash on hand for the property
manager&#146;s petty cash fund and cashiers&#146; banks, coins and slot hoppers,
carousels, slot vault and poker bank, and the funds in any bank accounts
maintained by Seller.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Hotel&#148; has the meaning ascribed to it in Recital A.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='4',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Improvements&#148; has the meaning ascribed to it in
Section 3(a)(ii).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Indemnifying Party&#148; has the meaning ascribed to it in
Section 23(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Indemnitee&#148; has the meaning ascribed to it in Section
23(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Intangible Property&#148; has the meaning ascribed to it
in Section 3(a)(x).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Key Persons&#148; has the meaning ascribed to it in
Section 8(n).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Leases&#148; means all leases or other agreements
permitting the use or occupancy of space on, under, over or about the Real
Property, including all amendments and exhibits thereto and assignments thereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Losses&#148; has the meaning
ascribed to it in Section 23(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Markers&#148; means, as it
relates to Seller, any credit instrument as defined in NRS 463.0147.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;Monetary Encumbrances&#148; </font>has
the meaning ascribed to it in Section 5(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Nevada Gaming Authorities&#148;
means the Nevada Gaming Control Board, the Nevada Gaming Commission and the
City of North Las Vegas.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Non-Monetary Defect&#148; has
the meaning ascribed to it in Section 5(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#147;Notice Period&#148; </font>has
the meaning ascribed to it in Section 5(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;NRS&#148; means the Nevada
Revised Statutes.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Operating Supplies&#148; has the
meaning ascribed to it in Section 3(a)(iv).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Permits&#148; has the meaning ascribed to it in Section
8(n).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Permitted Exceptions&#148; has the meaning ascribed to it
in Section 5(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Person&#148; means an individual, partnership,
corporation, business trust, joint stock company, trust, unincorporated
association, joint venture, limited liability company, limited liability
partnership, governmental authority, or other entity of whatever nature.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Personal Property&#148; has the meaning ascribed to it in
Recital 3(2)(viii).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Project Capital Expenditures&#148; has the meaning
ascribed to it in Section 14(h).</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='5',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Purchased Assets&#148; has the meaning ascribed to it in
Section 3(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Purchase Price&#148; has the meaning ascribed to it in
Section 4.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Purchaser&#148; has the meaning ascribed to it in the
introductory paragraph.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Purchaser&#146;s Closing Deliveries&#148; has the meaning
ascribed to it in Section 11(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Ramada Agreements&#148; shall mean the License Agreement
dated as of September 4, 1998, as amended as of March 22, 1999, and as further
amended as of January 27, 2005, by and between Ramada Franchise Systems, Inc.,
Speakeasy Gaming of Las Vegas, Inc., and MTR Gaming Group, Inc., and the
ancillary agreements executed in connection therewith, relating to a license to
operate a Ramada&#174; System Unit located at 3227 Civic Center Drive, Las Vegas, NV
89030, designated as Unit # 5692-85312.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Real Property&#148; has the meaning ascribed to it in
Recital A.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Recognized Environmental Condition&#148; shall mean the
presence or likely presence of any Hazardous Substance on the Real Property
under conditions that indicate an existing release, a past release or a
material threat of release of any Hazardous Substance into structures on the
Real Property or into the ground, groundwater, or surface water of the Real
Property.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Seller&#148; has the meaning ascribed to it in the
introductory paragraph.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Seller&#146;s Affiliates&#148; has the meaning ascribed to it
in Section 9(b).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Seller&#146;s Closing Deliveries&#148; has the meaning ascribed
to it in Section 11(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Seller&#146;s Deposits&#148; means any deposits for rooms
and/or services furnished relating to the pre-closing period, including, but
not limited to, all security and other deposits, advance or pre-paid rents or
other amounts and key money or deposits (including any interest thereon) and
all money stored on deposit at the Hotel belonging to, and stored in an account
for a person.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Seller&#146;s Employees&#148; has the meaning ascribed to it in
Section 8(p).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Serta Expenditure&#148; has the meaning ascribed to it in
Section 14(h).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Survey&#148; has the meaning ascribed to it in Section 5.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Taxes&#148; means any and all taxes, charges, fees,
levies, tariffs, duties, liabilities, impositions or other assessments of any
kind (together with any and all interest, penalties, additions to tax and
additional amounts imposed with respect thereto) imposed by any tax authority
or other Governmental Authorities, including income, gross receipts, profits,
gaming, </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='6',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">excise, real or personal property, environmental,
sales, use, value-added, ad valorem, withholding, social security, retirement,
employment, unemployment, workers&#146; compensation, occupation, service, license,
net worth, capital stock, payroll, franchise, gains, stamp, transfer taxes, and
shall include any Liability for the taxes of any other Person under Treasury
Regulation Section 1.1502-6 (or any similar provision of state, local, or
foreign law), or as a transferee or successor, by contract, or otherwise.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Title Insurance Company&#148; shall mean Nevada Title
Company, 2500 N. Buffalo, Suite 150, Las Vegas, Nevada&#160; 89128 (Attention:&#160; Troy Lochhead) or such other nationally
recognized title insurance company that may be designated by the Purchaser.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Title Report&#148; has the meaning ascribed to it in
Section 5(a).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Title Policy&#148; has the meaning ascribed to it in
Section 12(a)(iii).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Tray Ledger&#148; means any accounts receivable of
registered guests who have not checked out and who are occupying rooms at the
Hotel on the evening of the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;WARN&#148; means the Worker Adjustment and Retraining
Notification Act of 1988 and analogous state and local law.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Interpretation</u>.&#160; Whenever required by the context of this
Agreement, the singular shall include the plural and the masculine shall
include the feminine and vice versa.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deposit</u>.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Deposit</u>.&#160; Contemporaneously with the execution by
Purchaser of this Agreement, Purchaser will deliver to the Title Insurance
Company the amount of Six Hundred Fifty Thousand Dollars ($650,000) to be held
by the Title Insurance Company as a deposit (the &#147;Earnest Money&#148;, and together
with any interest earned thereon, and together with any Extension Fees, the &#147;Deposit&#148;).&#160; Upon Closing, the Deposit shall be applicable
to the Purchase Price.&#160; Upon termination
of this Agreement, the Deposit shall be payable pursuant to Section 15.&#160; All interest earned on the Deposit shall
inure to the benefit of the party entitled to the Deposit.&#160; The Title Insurance Company shall hold the
Deposit in an interest-bearing account in a federally insured commercial bank,
money market account, overnight repurchase agreements, or other </font>similar investments, so long as the funds are
available on one (1) business day&#146;s notice.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Disputes</u>.&#160; If
there is a dispute between the parties concerning the Seller&#146;s or Purchaser&#146;s
right to receive the Deposit, the Title Insurance Company shall continue to
hold the Deposit in an interest-bearing account, in accordance with the terms
of this Section 2, until the dispute is resolved by the Seller and the
Purchaser or until otherwise directed by a court of competent jurisdiction.&#160; In the alternative, the Title Insurance
Company may interplead the Deposit with any Court having jurisdiction over the
parties and located in the State of Nevada.&#160;
In the event of the exercise by Title Insurance Company of its
obligations or rights hereunder, both </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='7',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seller and Purchaser, each
on its respective behalf, covenant and agree to indemnify and hold the Title
Insurance Company harmless from and against any Losses, claims, damage or costs
(including counsel and filing fees) incurred under this Agreement except to the
extent caused by the gross negligence or willful misconduct of Title Insurance
Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchased</u></font><u>
Assets and Excluded Assets</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchased
Assets</u>.&#160; On the terms and subject to
the conditions contained in this Agreement, Purchaser agrees to purchase and
accept from Seller, and Seller agrees to sell, assign, transfer, convey and
deliver to Purchaser at Closing, all of Seller&#146;s right, title and interest in
and to the following assets free and clear of all liens and security interests
(the &#147;Purchased Assets&#148;):</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Real Property, including, but not limited to,</font> all right, title and
interest of Seller in and to any easements, hereditaments covenants and other
rights appurtenant to such land; and all right, title and interest of Seller in
and to any land lying in the bed of any existing dedicated street, road, avenue
or alley, open or closed, in front of or adjoining such land</font>;</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A</font>ll improvements owned by Seller and located on the
Real Property including, but not limited to, buildings containing 130 guest
rooms (of which 95 are presently in use), an approximately 15,600 square foot
casino, and all other improvements situated on the Real Property including all
existing parking spaces (collectively, the &#147;Improvements&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Furniture, furnishings, fixtures, televisions,
kitchen and other equipment and non-consumable items located in the Hotel or
used in the operation of the Business (collectively, &#147;FF&amp;E&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; An
assortment of operating inventories and supplies consisting of housekeeping and
laundry sup&#173;plies, food and beverage stock, paper and accounting supplies and
similar consumable items (collectively, the &#147;Operat&#173;ing Supplies&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
of Seller&#146;s right, title and interest in and to all advance reservations,
bookings for use of banquet facilities, the restaurant and any meeting rooms,
and other deposits;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
telephone numbers, facsimile numbers, email addresses, websites or other
communication assets used primarily in connection with Seller&#146;s Business;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
computer hardware, software and accessories;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Gaming Assets (the Gaming Assets, together with items (iii) through (vii)
collectively, the &#147;Personal Property&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
Contracts and Leases which Purchaser agrees to assume pursuant to Section 7(a);</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='8',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
intangible personal property owned by Seller and used primarily or exclusively
in connection with the operation of the Seller&#146;s Business, including without
limitation all rights to the name &#147;Speedway Hotel and Casino&#148;, and all other
plans, specifications, drawings, engineering reports, surveys, player and
customer lists, vendor lists, records and information and all patents,
inventions, trade secrets, and licenses owned by Seller with respect to the
foregoing (collectively, the &#147;Intangible Property&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject
to Section 3(d), below, all books, records, ledgers, files, information, data
and other written materials to the extent related to the ownership or operation
of the Seller&#146;s Business, including, without limitation, books and records
relating to Taxes which are payable in connection with the ownership or
operation of the Seller&#146;s Business, including, without limitation, accounting
and tax records and information pertaining to events occurring in connection
with Seller&#146;s ownership or operation of the Seller&#146;s Business on or prior to
the Closing Date (collectively, the &#147;Books and Records&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Tray Ledger;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
House Funds;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiv)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Accounts Receivable;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Seller&#146;s Deposits; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xvi)&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Markers.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Excluded
Assets</u>.&#160; Notwithstanding any other
provision hereof to the contrary, the Purchased Assets purchased by Purchaser
pursuant to this Agreement shall not include any of the following property or
assets owned by Seller (the &#147;Excluded Assets&#148;):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
insurance policies relating to the Seller&#146;s Business and rights thereunder;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Causes
of action, claims (other than warranty claims relating to any of the Personal
Property, which warranty claims shall be included in the Personal Property
transferred to Purchaser hereunder) and litigation with respect to matters
arising prior to the Closing;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
rights of indemnification, claims and causes of action which relate to the
operation of the Seller&#146;s Business prior to the Closing, including, without
limitation, those arising by operation of law or in equity or otherwise, but
excluding warranty claims with respect to the Personal Property or product
liability claims against the suppliers or manufacturers thereof;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
Contracts or Leases not listed on <u>Schedule 7(a)</u> attached hereto and made
a part hereof or which Purchaser does not agree to assume pursuant to Section
7(a);</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='9',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Receivables
and revenues earned and accrued for the period of time prior to the Closing
Date; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
use of the &#147;Ramada&#148; name, reservation system, or any computer programs or
equipment that belongs to or is used by Seller pursuant to a license or other
agreement with Ramada Franchise Systems, Inc. or its affiliates.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conveyance</u>.&#160; Seller agrees that it will, at any time and
from time-to-time after the Closing Date, upon request and at the expense of
the Purchaser, do, execute, acknowledge or deliver, all such further acts, </font>deeds, assignments, conveyances and
assurances as may reasonably be required for the better conveying,
transferring, assigning, assuring and confirming the Purchased Assets to
Purchaser.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Electronic
Books and Records</u>.&#160; Certain books and
records, including the following, are maintained in electronic form on the
computer system of Seller and its parent corporation, MTR Gaming Group, Inc., a
Delaware corporation:&#160; (i) general
ledger, (ii) disbursement journals and (iii) payroll records maintained in
connection with the processing of payroll through ADP, Inc. (collectively, the &#147;Electronic
Books and Records&#148;).&#160; Purchaser
acknowledges that, notwithstanding anything in this Agreement to the contrary,
Seller may retain the originals of such Electronic Books and Records; provided
however, that Seller agrees at the Closing and subsequent thereto Seller shall,
at no charge to the Purchaser, (y) immediately upon reasonable request by
Purchaser provide Purchaser with a hard copy of the Electronic Books and
Records certified by Seller to be true, accurate and complete to the best of
the Seller&#146;s knowledge and belief and (z) immediately upon request by the
Nevada Gaming Authorities make available the originals of the Electronic Books
and Records to the Nevada Gaming Authorities.&#160;
Purchaser agrees that, upon the reasonable requests of Seller made from
time to time, Purchaser shall immediately provide Seller, at no charge to
Seller, with copies of the Books and Records requested by the Purchaser that
pertain to periods prior to the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchase
Price and Terms of Payment</u>.&#160; The
purchase price shall be Eighteen Million One Hundred Seventy Five Thousand
Dollars ($18,175,000) (the &#147;Purchase Price&#148;) payable at Closing in immediately
available funds, adjusted as provided for prorations and costs associated with
the Closing as set forth herein.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Title Report</u>.&#160;
Purchaser has received the First Amendment to the Title Report for Order
Number 06-10-0152-DTL, dated January 22, 2007 issued by the Title Insurance
Company (the &#147;Title Report&#148;) on or before the Effective Date as evidence of the
status of Seller&#146;s title to the Purchased Assets.&#160; The exceptions listed on Exhibit &#147;B&#148; attached
hereto and made a part hereof shall be deemed to have been approved by
Purchaser as of the Effective Date and constitute the &#147;Permitted Exceptions&#148;
and shall include any rights, interests or claims shown on the ALTA/ACSM land
title survey, certified on January 2, 2007 and prepared by Heritage
Surveying.&#160; Notwithstanding anything in
Exhibit B to the contrary, real estate taxes shall be </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='10',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">prorated at Closing in accordance with
Section 14 hereof.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Defects Arising After the Effective Date</u>.&#160; The Title Report shall be updated not later
than five (5) business days prior to the Closing by Seller.&#160; If the updated Title Report shows exceptions
to title not shown by the original Title Report which render Seller&#146;s title to
the Property unmarketable and uninsurable or which materially affect Purchaser&#146;s
intended use of the Purchased Assets (&#147;Non-Monetary Defect&#148;), or, if the
Property should become subject to a Monetary Encumbrance (together with any
Non-Monetary Defect, &#147;Defects&#148;), Purchaser may object to such Defects by
delivering to Seller an itemized written notice of Purchaser&#146;s objection to
such Defects (&#147;Defect Notice&#148;) within five (5) business days after the date of
delivery to Purchaser of the updated Title Report or, if earlier, the Closing
Date (the &#147;Notice Period&#148;).&#160; Purchaser&#146;s
failure to deliver a Defect Notice during the Notice Period shall be deemed a
waiver of Purchaser&#146;s right to object to such Defects, and Purchaser shall then
accept such title as is described in the Title Report, as updated, without
reserving any claim against Seller for Defects.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Seller&#146;s Cure of Non-Monetary Defects</u>.&#160; If Purchaser provides a Defect Notice to
Seller during the Notice Period, Seller shall have five (5) business days after
receipt of the Defect Notice within which to give written notice to Purchaser
as to whether Seller elects to cure any Non-Monetary Defects.&#160; Failure to notify Purchaser in writing within
such period of Seller&#146;s election shall be deemed Seller&#146;s election not to cure
any such Non-Monetary Defects.&#160; If Seller
elects, in its sole discretion, to cure any Non-Monetary Defects, Seller shall
have thirty (30) days after receipt of the Defect Notice to cure any such
Non-Monetary Defects which it elected to cure, and the Closing Date shall, if
necessary, be extended accordingly.&#160;
Purchaser shall have five (5) business days following either receipt of
Seller&#146;s notice electing not to cure any Non-Monetary Defect or the date on
which Seller is deemed to have elected not to cure any Non-Monetary Defect in
which to elect either to (i) waive its objection to any Non-Monetary Defect
that Seller does not or is deemed not to elect to cure; or (ii) terminate this
Agreement upon written notice to Seller and the Title Company.&#160; Seller shall be obligated to cure Monetary
Encumbrances in accordance with Section 5(d).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Monetary Encumbrances</u>.&#160; Seller shall be under no obligation to remove
Non-Monetary Defects, and any failure or refusal of Seller to do so shall not
be a default of Seller hereunder.&#160; Seller
shall be obligated to pay all obligations secured by liens encumbering the
Property (other than any non-delinquent Taxes and assessments and any
encumbrances created or suffered by Purchaser) which are unpaid and liquidated
at the Closing (&#147;<font style="text-decoration:underline;"><font style="text-decoration:none;">Monetary Encumbrances</font></font>&#148;) in the manner provided below.&#160; For purposes of the prior sentence, a
Monetary Encumbrance is &#147;liquidated&#148; only if it is fixed either by agreement of
Seller and the Person asserting the Encumbrance or by operation of Law.&#160; In order to cure a Monetary Encumbrance and,
if Seller desires to attempt to cure any other Defects, Seller shall have the
option to extend the Closing Date for a period of thirty (30) days, by giving
written notice of such extension election to Purchaser and Title Insurance
Company on or prior to the Closing Date.&#160;
Seller may cure Monetary Encumbrances by any of the following methods:
(i)&nbsp;payment and release of such Monetary Encumbrance of record; (ii)
posting a bond which causes such Monetary Encumbrance to cease to be a Lien on
the Property; (iii) providing indemnification to the Title Insurance </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='11',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Company against adverse final adjudication of
any Monetary Encumbrance and having the Title Insurance Company provide a Title
Policy which deletes such Monetary Encumbrance as an exception to title; or
(iv) an adjustment to the Purchase Price providing Purchaser with a credit for
the amount of such Monetary Encumbrance.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Due Diligence</u>.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[</font>Intentionally
Deleted]</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assumed Liabilities and Excluded
Liabilities</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assumed
Liabilities</u>.&#160; Subject to the terms
and conditions set forth in this Agreement, from and after the Closing,
Purchaser shall assume and agree to discharge and perform when due only the
future obligations, commitments and liabilities under those Contracts and
Leases listed on <u>Schedule 7(a)</u> attached hereto which Seller agrees to
assign to Purchaser and Purchaser agrees to assume, but only to the extent the
same relate to performance on or after the Closing Date (&#147;Assumed Liabilities&#148;);
provided, however, that Purchaser shall not be required to assume any Contract
or Lease (i) entered into by Seller after the date of this Agreement without
Purchaser&#146;s prior written consent, or (ii) that is not listed on Schedule
7(a).&#160; The Ramada Agreements shall be listed
on <u>Schedule 7(a)</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Excluded
Liabilities</u>.&#160; Notwithstanding any
provision hereof to the contrary, Purchaser shall not assume nor otherwise be
responsible for any of the liabilities and obligations of Seller other than the
Assumed Liabilities (the &#147;Excluded Liabilities&#148;), which Excluded Liabilities
shall remain the responsibility and obligation of Seller, and shall not be
assumed by Purchaser.&#160; Without limiting
the generality of the foregoing, Excluded Liabilities shall include:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
liabilities for legal, accounting, audit and investment banking fees, and any
other fees or expenses incurred by Seller in connection with the negotiation
and preparation of this Agreement and the sale of the Purchased Assets to
Purchaser;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
liabilities of Seller for Taxes, but subject to the prorations and adjustments
set forth herein;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
liabilities relating to Excluded Assets;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Any
liabilities relating to pending litigation;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
of Seller&#146;s indebtedness or accounts payable which arose prior to the date of
Closing; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as expressly provided in this Agreement, (i) any
liabilities, including, without limitation, back pay or fringe benefits of
Seller&#146;s Employees or any obligation under the Benefit Plans, fines, penalties,
attorney&#146;s fees and costs or other liabilities, including, without limitation,
WARN liabilities, relating to the Seller&#146;s Employees (as defined below), (ii) </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='12',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">any dispute with any labor
organizations, or (iii) any dispute or cost liability relating thereto, with
any past or present employee of Seller arising on or prior to the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Ramada
Agreements</u>.&#160; Purchaser shall seek to
assume the Ramada Agreements and shall pay all application and initiation fees
and other costs in connection with such assumption.&#160; Purchaser acknowledges under the Ramada
Agreements, Ramada Franchise Systems, Inc. must consent to the assumption by
Purchaser of the Ramada Agreements.&#160; In
the event that Purchaser is unable to assume the Ramada Agreements for any
reason, Purchaser&#146;s liability as to the Ramada Agreements shall be limited to
One Hundred Thousand Dollars ($100,000).</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations
and Warranties of Seller</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seller represents and warrants to Purchaser that, to
the best of Seller&#146;s knowledge and belief, the following shall be true and
complete in all material respects:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller is duly organized and validly existing under the
laws of its state of incorporation and has all requisite power and authority to
carry on its business as now being conducted.&#160;
Seller is duly qualified or licensed to do business and is in good
standing in each jurisdiction in which the property owned, leased or operated
by it or the nature of the business conducted by it makes such qualification or
licensing necessary.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
has a good, valid and marketable fee interest in the Real Property.&#160; Seller has not received written notice of,
nor does Seller have any knowledge of, any proceedings pending (and, to the
knowledge of Seller, overtly contemplated or threatened) or otherwise relating
to the Real Property or the interests of Seller therein, which would be
reasonably likely to interfere with use, ownership, improvement, development
and/or operation.&#160; As of the date hereof,
there are no Contracts or Leases or other obligations outstanding for the sale,
exchange, material encumbrance or transfer of the Real Property other than this
Agreement.&#160; To the best of Seller&#146;s
knowledge and belief, there are no environmental conditions, including, but not
limited to hazardous waste affecting the Real Property or threatened
enforcement or investigative action by a Governmental Authority involving a
Recognized Environmental Condition with respect to the Real Property that would
prevent or hinder redevelopment of the Real Property or require remediation
under any Governmental Regulation.</font></h3>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;(c)&#160;&#160;&#160;&#160; Seller is a &#147;United States person&#148; within
the meaning of Sections 1445(f)(3) and 7701(a)(3) of the Internal Revenue Code
of 1986, as amended.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No attachment, execution proceedings, assignments for the
benefit of creditors, insolvency, bankruptcy, reorganization, or other
proceedings are pending or threatened against Seller.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller has the legal power, right and authority to enter
into this Agreement and the instruments referenced herein and to consummate the
transactions contemplated hereby.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='13',FILE='C:\fc\44111153797_D11529_1708039\4372-1-km-01.htm',USER='jmsproofassembler',CD='Feb 13 11:12 2007' -->



<br clear="all" style="page-break-before:always;">
<div>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All requisite action (corporate, partnership or
otherwise) has been taken by Seller in connection with entering into this
Agreement, the instruments referenced herein and the consummation of the
transactions contemplated hereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement and all documents required hereby to be
executed by Seller are and shall be valid, legal, binding obligations of, and
enforceable against, Seller in accordance with their terms, subject only to
applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws,
or equitable principles affecting or limiting the rights of contracting parties
generally.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The execution and delivery of this Agreement by Seller
does not, and the consummation by Seller of the transactions to which it is a
party that are contemplated by this Agreement will not, (i)&nbsp;conflict with,
or result in any violation or breach of, any provision of the articles of
incorporation, bylaws or other organizational documents of Seller,
(ii)&nbsp;result in any violation or breach of, or constitute (with or without
notice or lapse of time, or both) a default (or give rise to a right of
termination, cancellation or acceleration of any obligation or loss of any
material benefit) or require an approval under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, lease, contract or
obligation to which Seller is a party or by which Seller or any of the
Purchased Assets may be bound.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No approval of or
from a</font>ny court, arbitrator or governmental, administrative or regulatory
authority, agency, commission, body or instrumentality, domestic or foreign,
other than the Gaming Authorities (each, a &#147;Governmental Authorities&#148;) other
than Gaming Approvals is required by or with respect to Seller in connection
with the execution and delivery of this Agreement by Seller or the consummation
by Seller of the transactions to which it is a party that are contemplated
hereby.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
audited financial statements as of December 31, 2002 and for the year ending
December 31, 2002; the audited financial statements as of December 31, 2003 and
for the year ending December 31, 2003; the audited financial statements as of
December 31, 2004 and for the year ending December 31, 2004; the audited
financial statements as of December 31, 2005 and for the year ending December
31, 2005; and the unaudited income statement for the twelve months ending
September 30, 2006, attached hereto and made a part hereof as Exhibit &#147;C&#148;,
contain a true and complete copy of the audited or unaudited financial reports
relating to the Hotel for such time periods (collectively, the &#147;Financial
Information&#148;).&#160; The Financial Information
was prepared in accordance with generally accepted accounting principles in
effect at the time of such preparation applied on a consistent basis throughout
the periods involved (except as may be indicated in the notes to such financial
statements) and fairly presented in all material respects the consolidated
financial position of the Hotel as of such date subject, in the case of
unaudited statements, to normal year-end adjustments and the absence of
footnotes.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except
as set forth in the Financial Information and the information set forth on <u>Schedule
8(k)</u>, Seller has no liabilities.</font></h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='14',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(l)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Each Contract and Lease is valid and binding upon
Seller (and, to Seller&#146;s knowledge, on all other parties thereto), in
accordance with its terms and is in full force and effect. &nbsp;There is no
breach or violation of or default by Seller, or to the best of Seller&#146;s
knowledge, by the other parties thereto, under any of the Contracts or Leases,
whether or not such breach, violation or default has been waived.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There
is no proceeding against Seller, pending before any Governmental Authorities,
or as to which Seller has received any written notice of assertion or, to the
knowledge of Seller any proceeding threatened, relating to the Purchased
Assets.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
of its directors, officers, stockholders, Persons performing management
functions similar to officers (collectively, &#147;Key Persons&#148;) hold all approvals
of all Governmental Authorities (including all Gaming Approvals) necessary to
conduct the business and operations conducted at the Business, including, but
not limited to Seller&#146;s grandfathered non-conforming unrestricted gaming
license, and to ensure that the present structure, use, operation and
maintenance of the Business is authorized by, and in compliance with,
Governmental Regulations, including, but not limited to, true and correct
legible copies of any or all certificates of occupancy (or the equivalent), any
or all permits, licenses and other authorizations and entitlements issued with
respect to the Business and Real Property, and each portion of space in the
Business and Real Property occupied by hotel guests (collectively, the &#147;Permits&#148;),
each of which is in full force and effect and no event has occurred which may
cause, or upon the giving of notice or passage of time or both, would cause,
revocation, non-renewal, modification, suspension, limitation or termination of
any Permit that currently is in effect.&#160;
Seller and, to the knowledge of Seller, Key Persons, are in compliance
with the terms of the Permits.&#160; The
Business is not being conducted in violation of any law of any Governmental
Authorities.&#160; Seller has not received a
notice of any investigation or review by any Governmental Authorities with
respect to the Purchased Assets that is pending, and, to the knowledge of
Seller, no investigation or review is threatened, nor has any Governmental
Authority indicated any intention to conduct the same.&#160; Seller has not received any written claim,
demand, notice, complaint, order from any Governmental Authority in the past
three (3) years relating to any violation or possible violation of any Gaming
Laws which did or would be reasonably likely to result in fines or penalties of
Fifty Thousand Dollars ($50,000) or more.&#160;
To Seller&#146;s knowledge, there are no facts, which if known to the Gaming
Authorities, would be reasonably likely to result in the revocation, limitation
or suspension of a Permit under the Gaming Laws.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule
8(o)</u> hereof is a true and complete listing of the Gaming Assets located at
the Hotel as of the Effective Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule
8(p)</u> hereof sets forth as of the Effective Date, the names and job titles
(or positions held) of each of the employees of the Business (the &#147;Seller&#146;s
Employees&#148;) and the current annual base salary (or hourly rate) and most recent
bonus paid to each of Seller&#146;s Employees.&#160;
Seller is not a party to any collective bargaining agreement applicable
to employees at the Hotel and to the knowledge of Seller there are no
activities or proceedings of any labor </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='15',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">union to organize any non-unionized employees at the Hotel.&#160; There are no unfair labor practice charges,
complaints or petitions for elections pending against Seller before the
National Labor Relations Board, or any similar labor relations governmental
bodies, or, of which Seller has received notice.&#160; There is no strike, slowdown, work stoppage
or lockout, or, to the knowledge of Seller, threat thereof, by or with respect
to any employees that work at the Hotel.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Schedule
8(q)</u> hereof sets forth an accurate and complete list of all (i) &#147;employee
welfare benefit plans,&#148; within the meaning of Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended, and the rules and
regulations thereunder (&#147;ERISA&#148;) and (ii) material bonus, stock option, stock
purchase, restricted stock, incentive, fringe benefit, profit-sharing, pension
or retirement, deferred compensation, medical, life insurance, disability,
accident, salary continuation, severance, accrued leave, vacation, sick pay,
sick leave, supplemental retirement and unemployment benefit plans, programs,
arrangements, commitments and/or practices (whether or not insured) for Seller&#146;s
Employees (all of the foregoing plans, programs, arrangements, commitments,
practices and Contracts referred to in (i) and (ii) above are referred to, the &#147;Benefit
Plans&#148;).&#160; True and complete copies of
each of the Benefit Plans (or a summary thereof) have been made available by
Seller to Purchaser.&#160; Seller does not
maintain &#147;employee pension benefit plans,&#148; within the meaning of Section 3(2)
of ERISA or a 401(k) Plan.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
material tax returns required to be filed with respect to the Real Property and
the Business for all periods through and including the Closing Date have been
duly and timely filed with the appropriate Governmental Authorities in all
jurisdictions in which such tax returns are required to be filed, and such tax
returns are true, correct and complete in all material respects.&#160; All Taxes shown as due on such tax returns
have been timely paid.&#160; All material
Taxes required to be withheld and paid with respect to (a)&nbsp;Seller&#146;s
Business; or (b)&nbsp;any amounts owed by Seller to any employee, creditor,
independent contractor or other third party have been duly and timely withheld
and paid.&#160; To the knowledge of Seller,
there are no pending or threatened audits or investigations with respect to
Taxes relating to the Real Property or Seller&#146;s Business.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To
Seller&#146;s knowledge, no Hazardous Substances have been stored on the Real
Property and Seller is not subject to any pending or, to Seller&#146;s knowledge,
threatened enforcement or investigatory action by any Governmental Authorities
regarding Hazardous Substances with respect to the Real Property.</font></h3>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(t) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; To
Seller&#146;s knowledge, there are no material environmental conditions pertaining
to the Real Property which are not reflected in (i) that certain Phase I
Environmental Report of Kleinfelder, Inc., dated April 22, 1998, as
supplemented by that certain letter from Kleinfelder, Inc., to Robert Gach,
dated August 13, 1998, and (ii) that certain Phase I Environmental Site
Assessment of Unocal Property 6484 of PHR Environmental Consultants, Inc.,
dated October, 1997, (iii) that certain Phase I Environmental Site Assessment
of Broadbent &amp; Associates, Inc., dated October 1991 and (iv) that certain
Site Investigation Report of Harding Lawson Associates, dated April 25, 1988.</font></h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='16',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(u)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; There are no billboard Leases
encumbering the Real Property.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<u>As
Is&#148; Sale</u>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser expressly acknowledges and
agrees to accept the Purchased Assets on an &#147;as-is-where-is and with all faults&#148;
basis, except as otherwise provided in this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement, as written, contains
all the terms of the agreement entered into between the parties as of the date
hereof, and Purchaser acknowledges that neither Seller nor any person
controlling, controlled by or under common control with Seller (collectively, &#147;Seller&#146;s
Affiliates&#148;), nor any of their agents or representatives, has made any
representations or warranties or held out any inducements to Purchaser, and
Seller hereby specifically disclaims any representation or warranty, oral or
written, past, present or future, other than those specifically set forth in this
Agreement.&#160; Without limiting the
generality of the foregoing, neither Seller nor any of Seller&#146;s Affiliates, nor
any of Seller&#146;s agent or representatives has or is willing to make any
representations or warranties, express or implied, other than as may be
expressly set forth herein, as to: (i) the current or future real estate tax
liability, assessment or valuation of the Real Property; (ii) the potential
qualification of the Real Property for any and all benefits conferred by any
laws whether for subsidies, special real estate tax treatment, insurance,
mortgages (except to the extent granted to an affiliate of Seller) or any other
benefits, whether similar or dissimilar to those enumerated; (iii) the current
or future use of the Real Property; (iv) the status of the market in which the
Real Property is located; or (v) the actual or projected income or operating
expenses of the Business.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser acknowledges that Seller
has afforded and will afford Purchaser the opportunity for full and complete investigations,
examinations and inspections of the Purchased Assets and all pertinent
information. Purchaser acknowledges and agrees that the information delivered
or made available to Purchaser and Purchaser&#146;s representatives by Seller or
Seller&#146;s Affiliates, or any of their agents or representatives may have been
prepared by third parties and may not be the work product of Seller and/or any
of Seller&#146;s Affiliates.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser or anyone claiming by,
through or under Purchaser, hereby fully and irrevocably releases Seller and
Seller&#146;s Affiliates, and their agents and representatives, from any and all
claims that it may now have or hereafter acquire against Seller or Seller&#146;s
Affiliates, or their agents or representatives of any cost, loss, liability,
damage, expense, action or cause of action, whether foreseen or unforeseen,
arising from or related to any construction defects, errors, or omissions on or
in the Real Property, except to the extent created by Seller or Seller&#146;s
Affiliates and except for claims against Seller based upon any obligations and
liabilities of Seller expressly provided in this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations
and Warranties of Purchaser</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Purchaser hereby represents and warrants to Seller as
follows:</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='17',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; No
attachment, execution proceedings, assignments for the benefit of creditors,
insolvency, bankruptcy, reorganization, or other such proceedings are pending
or, to the best of its knowledge, threatened against Purchaser or its
principals.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser
has the legal power, right and authority to enter into this Agreement and the
instruments referenced herein and to consummate the transactions contemplated
hereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
requisite action (corporate, partnership or otherwise) has been taken by
Purchaser in connection with entering into this Agreement, the instruments
referenced herein and the consummation of the transactions contemplated hereby,
and no consent of officer, director, shareholder.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This
Agreement and all documents required hereby to be executed by Purchaser are and
shall be valid, legal, binding obligations of, and enforceable against,
Purchaser in accordance with their terms, subject only to applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws, or
equitable principles affecting or limiting the rights of contracting parties
generally.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Neither
the execution and delivery of this Agreement and the documents referenced
herein nor the consummation of the transactions contemplated herein nor
compliance with the terms of this Agreement and the documents referenced herein
conflict or result in the material breach of any terms, conditions or
provisions of, or constitute a default under, any bond, note or other evidence
of indebtedness or any contract, indenture, mortgage, deed of trust, loan,&#160; lease or other agreements or instruments to
which Purchaser is a party or by which Purchaser may be bound.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser
represents that Purchaser it knows of no reason why it would be denied any
license or permit required for the consummation of the transactions contemplated
by this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Closing
Deliveries.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Seller&#146;s
Closing Deliveries</u>.&#160; On or before the
Closing Date, Seller shall execute, acknowledge and deliver (as appropriate) to
the Title Insurance Company the following (&#147;Seller&#146;s Closing Deliveries&#148;):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A
grant, bargain and sale deed in proper form for recording, conveying the Real
Property and Improvements to Purchaser, free and clear of all liens, leases
encumbrances, covenants, conditions and other matters affecting title, except
for the Permitted Exceptions (the &#147;Deed&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A
bill of sale conveying to Purchaser the Personal Property and the Intangible
Property;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='18',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; An
assignment and assumption agreement to transfer the Contracts and Leases
assumed by Purchaser pursuant to Section 7(a) (the &#147;Assignment Agreement&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A
State of Nevada declaration of value form (&#147;DOV&#148;) setting forth the allocation
of the Purchase Price;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; A
FIRPTA;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; An
owner&#146;s affidavit, in the customary form, with respect to the absence of claims
which would give rise to mechanics&#146; liens and the absence of parties in
possession of the Real Property other than Seller pursuant to the terms of
Leases, or such other assurances as shall be reasonably required to enable
Purchaser to obtain the Title Policy; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
such other instruments or documents as may be reasonably required by Purchaser
or the Title Insurance Company in order to consummate the transactions
contemplated hereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchaser&#146;s
Closing Deliveries</u>.&#160; On or before the
Closing Date, Purchaser shall execute, acknowledge and deliver (as appropriate)
to the Title Insurance Company the following (&#147;Purchaser&#146;s Closing Deliveries&#148;):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
balance of the Purchase Price;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Assignment Agreement;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 111.0pt;text-indent:-39.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The DOV; and</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
such other instruments or documents as may be reasonably required by Purchaser
or the Title Insurance Company in order to consummate the transactions
contemplated hereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Post
Closing Deliveries</u>.&#160; The Title
Insurance Company shall deliver to Purchaser a conformed copy of the Deed and
DOV, the original FIRPTA and each of the other documents and instruments
delivered to the Title Insurance Company by Seller promptly following the
Closing.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions
Precedent</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions
Precedent to Purchaser&#146;s Obligations</u>.&#160;
The obligation of Purchaser to purchase the Purchased Assets shall be
subject to the following conditions (all or any of which may be waived, in
whole or in part, by Purchaser):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
representations and warranties made by Seller in Section 8, except those
representations and warranties which are expressly limited to facts and
circumstances as of </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='19',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">the Effective Date, shall be true and correct in all material respects
on and as of the Closing Date with the same force and effect as though such
representations and warranties had been made on and as of such date, and Seller
shall have executed and delivered to Purchaser a certificate dated as of the
Closing Date to the foregoing effect;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
shall have performed all covenants and obligations required by this Agreement
to be performed or complied with by Seller on or before the Closing Date;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; On
the Closing Date, (i) Seller&#146;s title to the Real Property shall be marketable
and free-and-clear of all liens, mortgages, deeds of trust, encumbrances,
easements, leases, conditions and other matters affecting title other than the
Permitted Exceptions and other than as permitted under Section 5, and (ii) the
Title Insurance Company shall have committed unconditionally to issue to
Purchaser, or its designee, at standard rates, an ALTA owner&#146;s title insurance
policy covering the Real Property, including such endorsements as Purchaser may
reasonably require, in an amount equal to the Purchase Price, insuring
Purchaser&#146;s title to the Real Property except for the Permitted Exceptions (&#147;Title
Policy&#148;);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
shall have terminated the employment of all employees and provided all notices
required under WARN with respect to such termination;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser or Gaming
Operator (pursuant to Section 25) shall have received all necessary Gaming
Approvals;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
shall have operated and maintained the Business and the Purchased Assets in the
ordinary course of business until the Closing.&#160;
The quantity and condition of the Personal Property on the Closing Date
shall, in all material respects, be the same as on the Effective Date,
reasonable wear and tear excepted; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
shall have delivered to the Title Insurance Company all of Seller&#146;s Closing
Deliveries.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conditions
to Seller&#146;s Obligations</u>.&#160; The
obligation of Seller to sell the Purchased Assets shall be subject to the
following conditions (all or any of which may be waived, in whole or in part,
by Seller):</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser
shall have performed all covenants and obligations required by this Agreement
to be performed or complied with by Purchaser on or before the Closing Date;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Purchaser shall have received all
necessary approvals from the Nevada Gaming Authorities;</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MTR Gaming Group, Inc. shall have obtained a release from
Ramada Franchise Systems, Inc. of its guaranty of Seller&#146;s obligations under
the License Agreement between Seller and Ramada Franchise Systems, Inc.; and</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='20',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Purchaser shall have delivered to the Title Insurance
Company all of Purchaser&#146;s Closing Deliveries.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Closing</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Closing Date</u>.&#160; Closing shall take place on the earlier of
(i) three hundred sixty five (365) days after the Effective Date or (ii) thirty
(30) business days after the receipt by the parties of all Gaming Approvals
(the &#147;Closing Date&#148;).&#160; Closing shall take
place at the office of the Title Insurance Company or at such other location as
Purchaser and Seller shall designate jointly.&#160;
The delivery to the Title Insurance Company of Seller&#146;s Closing
Deliveries and Purchaser&#146;s Closing Deliveries shall be deemed to be a good and
sufficient tender of performance of the terms hereof.&#160; Upon receipt of all Closing documents and the
Purchase Price, the Title Insurance Company shall be authorized to proceed to
record the documents evidencing this transaction.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Gaming
Approval Extensions</u>.&#160; If on or before
the Closing Date specified in Section 13(a)(i) Purchaser shall not have
received the Gaming Approvals, Purchaser may, providing that Purchaser has been
acting with commercially reasonable diligence in seeking to obtain Gaming
Approvals and has not been denied the Gaming Approvals, extend the Closing Date
for a period of thirty (30) days (the &#147;Extension Period&#148;) by delivering written
notice of the same to Seller and Title Insurance Company at least three hundred
and fifty five (355) days after the Effective Date and depositing an additional
Fifty Thousand Dollars ($50,000) into Escrow (the &#147;Extension Fee&#148;) which
Extension Fee shall become part of the Deposit.&#160;
If prior to the expiration of the Extension Period Purchaser has not yet
received Gaming Approvals (but has not been denied the Gaming Approvals), and
Purchaser has continued to act with commercially reasonable diligence in
seeking to obtain Gaming Approvals, Purchaser has the option to continue to
extend the Closing Date for six (6) successive additional thirty (30) day
periods by delivering written notice of the each&#160; extension to Seller and Title Insurance
Company at least five (5) days prior to the expiration of the prior Extension
Period and depositing an additional Fifty Thousand Dollars ($50,000) into
Escrow with each such notice which additional Extension Fees shall also become
part of the Deposit.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Non-Gaming
Closing</u>.&#160; If on or before the Closing
Date specified in Section 13(a)(i) Purchaser shall not have received the Gaming
Approvals or if on or before the expiration of the Extension Period(s)
specified in Section 13(b) Purchaser shall not have received the Gaming
Approvals, Purchaser, in its sole and absolute discretion, may proceed to
Closing no later than such Closing Date or on the expiration of such Extension
Period(s), and notwithstanding anything herein to the contrary, the following
provisions shall apply:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller shall surrender its gaming
licenses and close all gaming operations conducted at the Hotel;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Subject to the receipt of any Gaming
Approvals required by the Gaming </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='21',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Laws, Seller shall retain the Gaming Assets and use or
dispose of them as Seller determines, in Seller&#146;s sole discretion (which shall
be deemed to be Excluded Assets hereunder without any reduction in the Purchase
Price);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller shall retain the House Funds
used in the gaming operations conducted at the Hotel and the Markers (which
shall be deemed to be Excluded Assets hereunder and the amounts of such items
shall not be added or subtracted from the Purchase Price);</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller
shall retain all liabilities with respect to any gaming chips and tokens of the
Hotel in circulation (which liabilities shall be deemed to be Excluded
Liabilities hereunder without adjustment to the Purchase Price); and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller and Purchaser agree to
cooperate with each other in order to effectuate the provisions of this Section
13(b), including, without limitation, Purchaser providing Seller with the right
to use a portion of the Hotel in which to redeem gaming chips and tokens.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Closing
Costs</u>.&#160; The Closing costs shall be
paid as follows:</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" bgcolor="white" style="background:white;border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font></p>
  </td>
  <td width="82%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:82.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Seller shall pay:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One-half (&#189;) of the escrow fees;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Real Property transfer taxes;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The cost of the premium for the CLTA portion of the
  Title Policy; and</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The cost of any other obligations of Seller
  hereunder.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font></p>
  </td>
  <td width="82%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:82.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Purchaser shall pay:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">One-half (&#189;) of the escrow fees;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Cost of recording the Deed;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any additional premium charged for the Title Policy
  in excess of 13(d)(i)(c) above;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any Survey costs; and</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The cost of any other obligations of Purchaser
  hereunder.</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.38%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:1.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="78%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:78.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Costs</u>.&#160; All other costs and expenses
attendant to settlement, including Title Insurance Company charges, shall be
shared equally by the parties.&#160;
Notwithstanding the foregoing, each party shall pay its own attorneys
fees.&#160; If clear title cannot be tendered
by Seller at Closing then Seller shall pay all Title Insurance Company charges.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prorations;
Withholding; Adjustments</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Unless
otherwise provided herein or otherwise agreed to by the parties, all items,
including, but not limited to the following, shall be pro-rated, allocated or
adjusted as of 11:59 p.m. on the Closing Date.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='22',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Real
estate, sales, use, and personal property taxes with respect to the Business;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Water
and sewer service charges and charges for electricity, telephone and all other
public utilities;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Room rental income from
hotel guests for the night of the Closing Date (to be divided equally between
Seller and Purchaser);</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Revenues
from hotel guests other than room rental income (to be allocated one hundred
percent (100%) to Seller; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Income
and expenses accrued pursuant to the Contracts and Leases.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The parties shall
prepare a closing statement reflecting the prorations set forth above (the &#147;Closing
Statement&#148;).&#160; If the Closing Statement
reflects a net amount due and owing to Seller, Purchaser shall pay such net
amount to Seller on the Closing Date.&#160;
If, in contrast, the Closing Statement reflects a net amount due and
owing to Purchaser, Seller shall pay such amount to Purchaser on the Closing
Date.&#160; In the event Seller and Purchaser
agree that additional items shall be pro-rated, allocated or adjusted, any such
items shall be prorated, adjusted or allocated consistent with this Section
14(a).&#160; In the event that the parties do
not agree on all of the items with respect to the Closing Statement, the
parties shall include nondisputed items on the Closing Statement.&#160; The items reflected on the Closing Statement
shall be subject to adjustment subsequent to the Closing Date; provided,
however, that no claim for an adjustment may be made more than one (1) year
following the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Taxes Withheld;
Deficiency Determinations for Gaming Taxes</u>.&#160;
In order to comply with NRS 360.525 (relating to taxes administered by
the Nevada Department of Taxation), NRS 612.695 (relating to unemployment
taxes), NRS 244.335 (relating to county license taxes) and NRS 244.3352
(relating to county room taxes), such amounts as Seller and Purchaser
reasonably estimate are necessary to comply with the provisions of the above
mentioned and similar statutes providing for the payment of taxes will be
withheld by the Title Insurance Company and will be payable to Seller after
Closing at such time as Seller furnishes Purchaser and the Title Insurance
Company receipts or certificates provided for in such statutes, or if not so
provided for, such evidence as Purchaser may reasonably require to assure
Purchaser that the applicable obligations have been paid.&#160; If Seller does not produce such receipts or
certificates within the time period provided for in such statutes or if any
lien or claim therefore is asserted against Purchaser, the Title Insurance
Company shall pay such withheld sums to the appropriate Governmental
Authorities or other applicable taxing authority.&#160; Seller shall remain responsible for payment
of any fees or taxes due pursuant to any subsequent deficiency determination
made pursuant to Chapter 463 of the NRS which encompass any period of time
before the Closing, and shall hold Purchaser harmless therefrom.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Seller&#146;s Credits</u>.&#160; Prior to the Closing Date, Purchaser and
Seller shall mutually </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='23',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">agree on a
procedure for counting and determining the value of the following for which
Seller shall receive a credit at Closing:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Tray Ledger;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
House Funds;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Operating Supplies;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
Accounts Receivable;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller&#146;s
Deposits; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Markers.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Adjustment
for Progressive Liabilities</u>.&#160; Seller
shall, on the Closing Statement, credit Purchaser for an amount equal to the
amounts shown as of the Closing Date on the meters of:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Hotel&#146;s in-house progressive slot machines;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
Hotel&#146;s table games with an in-house progressive jackpot feature as of the
Closing Date; and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 108.0pt;text-indent:-36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Hotel&#146;s other games
with an in-house progressive feature.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Room
Reservations</u>.&#160; Purchaser will honor
the terms and rates of all pre-Closing Date room reservations (in accordance
with their terms) at the Hotel made in the ordinary course of business by
guests or customers, including advance reservation cash deposit, for rooms or
services confirmed by Seller for dates after the Closing Date.&#160; Purchaser shall receive a credit for such
deposit at Closing.&#160; Purchaser recognizes
that such reservations may include discounts or other benefits, including,
without limitation, benefits under frequent player or casino awards programs,
group discounts, other discounts or requirements that food, beverage or other
benefits be delivered by Purchaser to the guest(s) holding such
reservations.&#160; Purchaser will honor all
room allocation agreements and banquet facility and service agreements which
have been granted to groups, persons or other customers for periods after the
Closing Date at the rates and terms provided in such agreements provided that
such agreements were made in the ordinary course of business.&#160; Purchaser agrees that Seller cannot make and
has made no representation or warranty that any party holding a reservation or
agreement for rooms, facilities or services will utilize such reservation or
honor such agreement.&#160; Purchaser, by the
execution hereof, assumes the risk of non-utilization of reservations and
non-performance of such agreements from and after the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Guests&#146;
Safe Deposit Boxes</u>.&#160; Purchaser shall
be responsible for all guest safety </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='24',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">deposit boxes from and after the Closing Date.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Guests&#146;
Vehicles and Baggage</u>.&#160; Prior to the
Closing Date, Seller and Purchaser shall take inventory of: (i) all baggage,
suitcases, luggage, valises and trunks of hotel guests checked or left in the
care of Seller; (ii) all luggage or other property of guests retained by Seller
as security for unpaid accounts receivable; (iii) the contents of the baggage
storage room and (iv) all motor vehicles that were checked and placed in the
care of Seller at the Hotel; provided, however, that no such baggage,
suitcases, luggage, valises or trunks shall be opened.&#160; Except for the property referred to in (ii)
above, which shall be removed from the Real Property by Seller within ten (10)
days after the Closing Date, all such baggage and other items shall be marked
or sealed in a manner to be agreed upon by the parties and listed in an
inventory prepared and signed jointly by said representatives of Seller and
Purchaser as of the Closing Date.&#160; Said
baggage and other items shall be stored as Purchaser shall choose, and
Purchaser shall be responsible for claims with respect thereto.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Project
Capital Expenditures</u>.&#160; Purchaser
covenants and agrees to reimburse Seller for fifty percent (50%) of all Project
Capital Expenditures (as defined below) incurred by Seller with respect to the
Business, provided that (i) Purchaser consent in writing, in advance, to each
such Project Capital Expenditure (such consent to include Purchaser&#146;s approval
of the work to be done and/or items to be purchased, the budget and the
contractor with respect thereto), (ii) Purchaser&#146;s obligations under this
Section 14(h) shall be payable only upon, and simultaneously with, the Closing
of the transactions contemplated by this Agreement and (iii) notwithstanding
anything to the contrary in this Agreement, Purchaser&#146;s consent with respect to
any Project Capital Expenditures shall be required and obtained, for the
purposes of this Section 14(h), only to the extent permitted or not prohibited
by law. &#147;Project Capital Expenditures&#148; shall mean (i) the purchase of one
hundred seventy two (172) queen size Serta mattresses and six (6) king size
Serta mattresses for a cost of approximately Fifty Seven Thousand Four Hundred
Eighteen Dollars ($57,418.00) plus shipping (the Serta Expenditure&#148;) and (ii)
all other expenditures for new equipment, fixtures and other capital
improvements (excluding maintenance expenses) with respect to the Business of
Seller.&#160; Purchaser&#146;s execution of this
Agreement shall be deemed to be consent to reimbursement of fifty percent (50%)
of the Serta Expenditure.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination
and Remedies</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination</u>.&#160; This Agreement may be terminated and the
transactions contemplated hereby abandoned:</font></p>

<p style="margin:0pt 0pt 12.0pt 36.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By
mutual written consent of Seller and Purchaser;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By either Seller or Purchaser if not
in default of its obligations hereunder and any Governmental Authorities shall
have issued an order, decree or ruling or taken any other action (other than
the denial of Gaming Approvals by the Nevada Gaming Authorities) restraining,
enjoining or otherwise prohibiting the consummation of the transactions
contemplated hereby;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='25',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->
<br clear="all" style="page-break-before:always;">



<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By Seller if there shall have been any
material breach of a representation, warranty, covenant or obligation of the
Purchaser and, if such breach is curable such default shall not have been
remedied within ten (10) days after receipt of notice in writing from Seller
specifying such breach and requesting that it be remedied;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By Purchaser if there shall have been
any material breach of a representation, warranty, covenant or obligation of
the Seller and, if such breach is curable such default shall not have been
remedied within ten (10) days after receipt of notice in writing from Purchaser
specifying such breach and requesting that it be remedied;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; by either Seller or Purchaser if the
Nevada Gaming Commission has not approved the transaction on or before the time
for the Closing Date set forth in Article 13(a) if Purchaser has opted not to
exercise any of its extension options as set forth in Section 13(b) herein or,
if Purchaser has exercised its right to one or more extensions pursuant to
Section 13(b), at the expiration of the last extension period elected by the
Purchaser;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If it is not in default under this
Agreement, by either Seller or Purchaser if Purchaser has obtained all
necessary Gaming Approvals but the Closing has not occurred by the later of (a)
thirty (30) business days following the receipt by Purchaser of all necessary
Gaming Approvals or (b) three hundred sixty five (365) days following the
Effective Date; or</font></p>

<p style="margin:0pt 0pt 12.0pt 4.5pt;text-indent:67.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; By
Purchaser, pursuant to Sections 5, 16(a) or 16(b).</font></p>

<h2 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">provided,
however, that nothing contained in this Section 15(a) shall relieve or limit
the liability of either party to this Agreement for any fraudulent or willful
breach of this Agreement.&#160; The denial of
Gaming Approvals by the Nevada Gaming Authorities shall not constitute grounds
to terminate this Agreement pursuant to Section 15(a)(ii).&#160; The denial of Gaming Approvals by the Nevada
Gaming Authorities shall, however, constitute grounds to terminate this
Agreement pursuant to Section 15(a)(v).</font></h2>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Effect of
Termination</u>.</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Except as otherwise
expressly provided in this Agreement, all fees and expenses incurred in
connection with this Agreement and the transactions contemplated hereby shall
be paid by the party incurring such expenses, whether or not the Closing is
consummated.&#160; Any cancellation charges of
the Title Insurance Company shall be paid by the party who breached this
Agreement</font>, and, if no party breached this Agreement, then each of Seller
and Purchaser shall pay one-half of such cancellation charges.</font></h3>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='26',FILE='C:\fc\441141303_D11529_1708126\4372-1-km-03.htm',USER='jmsproofassembler',CD='Feb 13 11:41 2007' -->



<br clear="all" style="page-break-before:always;">
<div>
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>

<h3 style="font-weight:normal;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon
the termination of this Agreement pursuant to Sections 15(a)(iii) and 15(a)(v),
the Deposit shall be paid to Seller.&#160;
Upon termination of this Agreement pursuant to Sections 15(a)(i),
15(a)(ii), 15(a)(iv), 15(a)(vi) or 15(a)(vii), the Deposit shall be paid to
Purchaser without the need of any further instruction from Seller.</font></h3>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Remedies</u>.&#160; </font>Seller
shall retain the Deposit as liquidated damages as its sole and exclusive remedy
in the event that either all conditions precedent to Purchaser&#146;s obligation to
close purchase the Purchased Assets have been satisfied and the Purchaser
defaults on purchasing the Purchased Assets on the Closing Date as required by
this Agreement.&#160; Seller shall also retain
the Deposit as its sole and exclusive remedy in the event that Purchaser fails
to obtain all necessary Gaming Approvals within the time allowed herein and
either Seller or Purchaser terminates the Agreement pursuant to Section
15(a)(v).&#160; The parties hereby agree and
acknowledge that Seller&#146;s damages as a result thereof would be extremely
difficult or impossible to determine but that the Deposit represents the
parties&#146; best good faith estimate thereof.&#160;
The parties agree that the retention of the Deposit by Seller pursuant
to this Agreement is in no way intended as a penalty or forfeiture.&#160; </font>Upon
the termination by Seller of this Agreement and the retention by the Seller of
the Deposit, the parties shall be released from any further obligations to each
other under this Agreement.&#160; In the event
all conditions precedent to Seller&#146;s obligation to Close have been satisfied
and the Seller defaults on selling the Purchased Assets on the Closing Date as
required by this Agreement, Purchaser shall be entitled to all remedies
available to it at law or in equity, including, without limitation, a decree of
specific performance.&#160; The foregoing
termination rights and any and all other rights and remedies given to Purchaser
in this Agreement are distinct, separate and cumulative; and no one such right
or remedy, whether or not exercised, shall be deemed to be to the exclusion of
others herein granted or given by law or in equity.</p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Condemnation
or Damage by Fire or Other Casualty.</u></font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Condemnation</u>.&#160; If prior to the Closing, more than ten
percent (10%) of the acreage of the Real Property is taken by </font>condemnation, eminent domain or
similar governmental action (or is the subject of a pending, threatened or
contemplated taking which has not been consummated) or if the access thereto is
materially reduced or restricted, the Seller shall immediately upon becoming
aware of it notify Purchaser of such fact.&#160;
In such event, Purchaser shall have the option, in its sole and absolute
discretion, to (i) terminate this Agreement upon written notice to the Seller
given not later than thirty (30) days after receipt of the Seller&#146;s notice, or
(ii) purchase all of the Purchased Assets pursuant to this Agreement without
modification of the terms of this Agreement.&#160;
If Purchaser timely and properly elects to terminate this Agreement
pursuant to its option to terminate as set forth above, the parties shall be
released from further obligations under this Agreement and the Deposit shall be
returned to Purchaser.&#160; If Purchaser
elects to purchase all of the Purchased Assets despite the condemnation at
Closing the Seller shall assign and turn over to the Purchaser, and Purchaser
shall be entitled to receive and keep, all awards for the taking which accrued
to the Seller, and the parties shall proceed to the Closing pursuant to the
terms hereof without modification of the terms of this Agreement and without
any reduction in the Purchase Price.</p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='27',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Unrepaired Damage</u>.&#160; At the time of Closing, and as a condition
precedent to the obligation of the Purchaser to purchase the Purchased Assets
pursuant to this Agreement, there shall be no unrepaired damage by fire or
other casualty to any portion of the Purchased Assets, the estimated cost of
repair of which is more than One Hundred Thousand Dollars ($100,000.00). If (i)
any portion of the Purchased Assets is damaged by fire or casualty after the
date of this Agreement&#160; that is not
repaired and restored substantially to its condition as of the date of this
Agreement prior to Closing, and (ii) the estimated cost of repairs is One Hundred
Thousand Dollars ($100,000.00) or less, the Purchaser shall be required to
purchase the Purchased Assets in accordance with the terms of this Agreement
and, at Closing, the Seller shall assign to the Purchaser all insurance claims
and proceeds with respect thereto and shall pay or credit to the Purchaser the
amount of any deductible or uninsured loss with respect to such casualty.&#160; If such casualty is not insured, Seller shall
restore the Purchased Assets and may extend the Closing Date for up to sixty
(60) days until such restoration is complete.&#160;
If the Seller cannot complete the restoration within such period,
Purchaser may terminate this Agreement, Purchaser and Seller shall be released
from further obligation hereunder and the Deposit shall be returned to
Purchaser.&#160; If the estimated cost of
repairing such damage is more than One Hundred Thousand Dollars ($100,000.00)
and such damage is insured, the Purchaser may, at its sole option: (i) postpone
the Closing until such time as the Seller shall have repaired all such damage;
(ii) elect to proceed with the Closing, in which case at Closing the Seller
shall assign to the Purchaser all insurance claims and proceeds with respect to
such damage and shall pay or credit to the Purchaser the amount of any
deductible with respect to such casualty; or (iii) terminate this Agreement, in
which event neither party shall have any further liability to the other and the
Deposit shall be returned to Purchaser.&#160;
If the estimated cost of repairing the damage to the Purchased Assets
exceeds One Hundred Thousand Dollars ($100,000.00) and the damage is not
covered by the Seller&#146;s insurance, then either the Seller or Purchaser may
terminate this Agreement, in which event neither party shall have any further
liability hereunder and the Deposit shall be returned to Purchaser. In the
event that insurance proceeds have been paid to the holder of a deed of trust
on the Real Property prior to the Closing Date, the Purchase Price shall be
reduced by the amount of such insurance proceeds paid to such mortgagee and an
appropriate adjustment made to the amount the Seller is to receive. If a
casualty to any part of the Purchased Assets has occurred and Purchaser is
required or elects to complete the purchase of the Purchased Assets, the Seller
shall cooperate with the Purchaser in prosecuting all insurance claims assigned
to the Purchaser at Closing.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Brokers
&amp; Investment Bankers</u>.</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Seller&#146;s Representation and
Indemnification</u>.&#160; </font><font face="Times New Roman">Seller
represents and warrants to Purchaser, that it has not been represented by any
broker or investment banker in connection with this Agreement or the
transactions contemplated by this Agreement other than Lazard Freres &amp; Co.,
LLC and CIBC World Markets Corp. Seller will indemnify and hold Purchaser
harmless from any claim by any broker, agent or finder purporting to have acted
on behalf of Seller.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Purchaser&#146;s
Representation and Indemnification</u>.&#160;
Purchaser represents and warrants to Seller that it has not been
represented by any broker in connection with this </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='28',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Agreement
or the transactions contemplated by this Agreement. Purchaser will indemnify
and hold Seller harmless from any claim by any broker, agent or finder
purporting to have acted on behalf of Purchaser.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Foreign
Person</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Seller is not a &#147;foreign person&#148;
for purposes of FIRPTA.&#160; At the Closing,
Seller will deliver to Purchaser a certificate so stating, in a form complying
with the Federal Tax Law.&#160; If Seller is a
&#147;foreign person&#148; or if Seller fails to deliver the required certificate at the
Closing, then in either such event the Purchase Price will be adjusted to the
extent required to comply with the withholding provisions of the Federal Tax
Law; and although the amount withheld will still be paid at the Closing by
Purchaser, it will be retained by the Title Insurance Company for delivery to
the Internal Revenue Service, together with the appropriate Federal Tax Law
forwarding forms (and with copies being provided both to Seller and to
Purchaser).</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Entire
Agreement</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">No change or modification of
this Agreement shall be valid unless in writing and signed by the parties
hereto.&#160; No waiver of any of the
provisions of this Agreement shall be valid unless in writing and signed by the
party against whom it is sought to be enforced.&#160;
This Agreement contains the entire agreement between the parties
relating to the purchase and sale of the Purchased Assets, all prior
negotiations between the parties are merged in this Agreement and there are no
promises, agree&#173;ments, conditions, undertakings, warranties or representations,
oral or written, express or implied, between them other than as set forth in
this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assignment;&#160; Benefits and Burdens</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Purchaser and Seller may assign their respective
rights and obligations under this Agreement prior to the Closing Date with the
prior written consent of the other party, not to be unreasonably conditioned,
delayed or withheld.&#160; Notwithstanding the
foregoing, Purchaser shall have the right to assign this Agreement to a wholly
owned subsidiary without the consent of the Seller.&#160; All terms of this Agreement shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
legal representatives, successors and assigns.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law;
Prevailing Party Attorney Fees</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement concerns property located in the State
of Nevada, and shall be construed and enforced in accordance with the laws of
the State of Nevada.&#160; Notwithstanding any
provision in this Agreement to the contrary, in the event of a dispute with
respect to the subject matter of this Agreement, the prevailing Party in any
proceeding, including arbitration commenced to resolve such disputes, shall be
entitled to an award of its reasonable attorney fees and court or arbitration
costs incurred in resolving or settling the dispute, in addition to any and all
other damages or relief which the court or arbitrator may deem proper.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='29',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notices</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given if delivered personally or via facsimile if a copy is also deposited
in the United States mail, properly addressed and postage prepaid, or delivered
by Federal Express or other recognized overnight delivery service, (i) if to
Purchaser, Mandekic Companies, LLC, 1035 Via Sanguinella Street, Henderson,
Nevada&#160; 89011 Attention: Ted Mandekic,
with a copy to Jenica Yurcic, Esquire, Schreck Brignone, 300 S. Fourth Street,
Suite 1200, Las Vegas, Nevada&#160; 89101;
(ii) if to Seller, MTR Gaming Group, Inc., Route 2 South, P.O. Box 356,
Chester, West Virginia&#160; 26034, Attention:
Edson R. Arneault, with a copy to Robert L. Ruben, Esquire, Ruben &amp;
Aronson, LLP., 4800 Montgomery Lane Suite 150, Bethesda, MD 20814; or (iii) at
such other address as may be given by either party to the other party by notice
in writing pursuant to provisions of this Section 22.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification
by Purchaser</u>.&#160; Subject to the limits
set forth in this Section 23, Purchaser agrees to indemnify, defend and hold
Seller and its officers, directors and agents, harmless from and in respect of
any and all losses, damages, liability, costs and expenses (including, without
limitation, reasonable expenses of investigation and defense fees and
disbursements of counsel and other professionals) (collectively, &#147;Losses&#148;),
arising directly or indirectly out of or directly or indirectly due to (i) any
inaccuracy of any representation or the breach of any warranty, covenant,
undertaking, assumption of liabilities (including, without limitation,
contractual obligations) or other agreement of Purchaser contained in this
Agreement, or (ii) any property damage or personal injuries occurring at the
Hotel prior to the Closing.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Indemnification
by Seller</u>.&#160; Subject to the limits set
forth in this Section 23, Seller agrees to indemnify, defend and hold Purchaser
harmless from and in respect of any and all Losses, including reasonable
attorney&#146;s fees, arising directly or indirectly out of or directly or
indirectly due to (i) any inaccuracy of any representation or the breach of any
warranty, covenant, undertaking or other agreement of Seller contained in this
Agreement, or (ii) any property damage or personal injuries occurring at the
Hotel prior to the Closing.&#160; Seller shall
also indemnify Purchaser, and hold Purchaser harmless against, all claims,
losses, damages and expenses (including reasonable attorneys fees) attributable
to violations by Seller of applicable environmental laws and regulations during
the period of Seller&#146;s ownership of its Real Property.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Survival
of Representations, Warranties and Covenants; Limitations on Indemnity</u>.&#160; The representations and warranties of the
Parties contained in this Agreement or in any instrument delivered pursuant to
this Agreement will survive the Closing Date and will remain in full force and
effect thereafter for a period of twelve (12) months; provided, however, that
such representations or warranties shall survive (if at all) beyond such period
with respect to any inaccuracy therein or breach thereof, notice of which shall
have been duly given within such time period in accordance with this Section
23(c).&#160; Notwithstanding anything to the
contrary </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='30',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">contained
herein, Purchaser shall not be entitled to recover Losses from Seller nor shall
Seller be entitled to recover Losses from Purchaser unless and until the total
of all claims for Losses with respect to any inaccuracy or breach of any such
representations or warranties or breach of any covenants, undertakings or other
agreements, whether such claims are brought under this Section 23(c) or
otherwise, exceeds One Hundred Fifty Thousand Dollars ($150,000) in the
aggregate.&#160; If the total amount of such
Losses exceeds One Hundred Fifty Thousand Dollars ($150,000), then the Party
entitled to recover hereunder shall be entitled to recover the full amount of such
losses and not merely the portion of such damages exceeding One Hundred Fifty
Thousand Dollars ($150,000); provided, however, that the aggregate amount of
Losses that may be recovered by Purchaser from Seller shall not exceed five
percent (5%) of the Purchase Price.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notice
and Opportunity to Defend.</u>&#160; If an
event occurs which a Party asserts is an indemnifiable event pursuant to
Sections 23(a) or (b), the party seeking indemnification (the &#147;Indemnitee&#148;)
shall promptly notify the other party obligated to provide indemnification (the
&#147;Indemnifying Party&#148;).&#160; If such event
involves (a) any claim or (b) the commencement of any action or proceeding by a
third Person, the Indemnitee will give such Indemnifying Party prompt written
notice of such claim or the commencement of such action or proceeding;
provided, however, that the Indemnitee&#146;s failure to provide prompt notice as
provided herein will relieve the Indemnifying Party of its obligations
hereunder only to the extent that such failure prejudices the Indemnifying
Party hereunder.&#160; If any such action is
brought against any Indemnitee and it notifies the Indemnifying Party of the
commencement thereof, the Indemnifying Party shall be entitled to participate
therein and, to the extent that it wishes, to assume the defense thereof, with
counsel reasonably satisfactory to the Indemnitee.&#160; Notwithstanding anything to the contrary in
this Agreement, after notice from the Indemnifying Party to the Indemnitee of
such election to so assume the defense thereof, the Indemnifying Party shall
not be liable to the Indemnitee for any legal expenses of other counsel or any
other expenses subsequently incurred by the Indemnitee in connection with the
defense thereof, and the Indemnitee agrees to cooperate fully with the Indemnifying
Party and its counsel in the defense against any such asserted liability. The
Indemnitee shall have the right to participate at its own expense in the
defense of such asserted liability.&#160; In
no event shall an Indemnifying Party be liable for any settlement effected by
the Indemnitee without the consent of the Indemnifying Party, which will not be
unreasonably withheld.&#160; In no event shall
an Indemnifying Party effect any settlement without the consent of the Indemnitee,
which will not be unreasonably withheld.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Mitigation
of Loss</u>.&#160; Each Indemnitee is
obligated to use reasonable efforts to mitigate to the fullest extent
practicable the amount of any Losses for which it is entitled to seek
indemnification hereunder.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Subrogation</u>.&#160; Upon making any payment of Losses of the
Indemnitee, the Indemnifying Party will, to the extent of such payment, be
subrogated to all rights of the Indemnitee against any third party in respect
of the Losses to which the payment relates; provided, however, that until the
Indemnitee recovers full payment of its Losses, any and all claims of the
Indemnifying Party against any such third party on account of such payment are
hereby made expressly subordinated and subjected in right of payment of the
Indemnitee&#146;s rights </font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='31',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">against
such third party.&#160; Without limiting the
generality of any other provision hereof, each such Indemnitee and Indemnifying
Party will duly execute upon request all instruments reasonably necessary to
evidence and perfect the above described subrogation and subordination rights.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Allocation of the
Purchase Price</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Not more than ten (10) days
subsequent to the Effective Date, Purchaser shall deliver to Seller a draft of
its proposed allocation of the Purchase Price to the Purchased Assets.&#160; Seller and Purchaser shall thereafter
negotiate in good faith to agree on the final allocation.&#160; Within five (5) days after receipt of such
document, Seller shall, in writing, either agree or state its objections.&#160; Seller and Purchaser shall negotiate in good
faith to attempt to resolve any objections.&#160;
If Seller and Purchaser are unable to resolve Seller&#146;s objections, the
objections shall be submitted to an independent accounting firm mutually agreed
upon by the parties.&#160; Such accounting
firm&#146;s determination shall be final (such determination to be based solely on
the written submissions by the Purchaser and Seller and not on any independent
investigation by the accounting firm).&#160;
The costs of the independent accounting firm shall be borne equally by
Purchaser and Seller.&#160; Seller and
Purchaser agree to properly file Form 8594 and the DOV and report the purchase
price allocation as agreed to or determined set forth therein for purposes of
all U.S. federal and state and local income and franchise Tax returns.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Gaming Operator</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything
herein to the contrary, in the event that Purchaser desires to engage a gaming
operator (&#147;Gaming Operator&#148;) to conduct gaming operations at the Casino (rather
than obtain Gaming Approvals to operate the Casino itself), the following
provisions shall apply:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At Closing, the portion of the Purchased Assets that are
comprised of the Gaming Assets shall be conveyed, transferred and/or assigned
and physical possession thereof delivered to Gaming Operator;</font></p>

<p style="margin:0pt 0pt 12.0pt 4.5pt;text-indent:31.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At Closing, Purchaser
shall cause Gaming Operator to agree to discharge and perform when due the
Gaming Liabilities, but no other liabilities of Seller; and</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; At Closing, Seller shall execute and deliver a bill of
sale (the &#147;Gaming Bill of Sale&#148;) and an assignment and assumption agreement
whereby Seller assigns the Gaming Contracts to the Gaming Operator and the
Gaming Operator assumes the obligations with respect thereto (the &#147;Gaming
Assignment&#148;).</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be executed simultaneously in one
or more counterparts, each of which shall be deemed to be an original, but all
of which together shall constitute one and the same instrument.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='32',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No Trial by Jury</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each Party acknowledges and agrees that any
controversy which may arise under this Agreement is likely to involve
complicated and difficult issues, and therefore each Party hereby irrevocably
and unconditionally waives any right it may have to a trial by jury in respect
of any litigation directly or indirectly arising out of or relating to this Agreement
and any of the agreements delivered in connection herewith or the transactions
contemplated hereby or thereby.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Miscellaneous</u>.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
the date on which either Purchaser or Seller is required to take action under
this Agreement is not a Business Day, the action shall be taken on the next
succeeding Business Day.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
captions of the various sections and paragraphs of this Agreement have been
inserted only for the purpose of convenience; such captions are not a part of
this Agreement and shall not be deemed in any manner to modify, explain,
enlarge or restrict any of the provisions of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Seller and Purchaser
agree that the proposed terms and conditions, and all information (other than
information which is a matter of public record or is provided by other sources
readily available to the public) shared or developed in the context of this
transaction shall be kept strictly confidential, except that Purchaser
acknowledges that Seller&#146;s parent company may describe the terms hereof (as well
as provide copies of this Agreement) in reports that the parent is required to
file with Governmental Authorities, the United States Securities and Exchange
Commission, and Seller&#146;s financiers, attorneys and accountants. Any public
disclosures, press releases, or announcements concerning this agreement and the
sale contemplated herein shall be approved unanimously by the parties in
writing in the exercise of each parties reasonably discretion.&#160; Either party may disclose any items required
by Nevada Gaming Authorities, or any other gaming regulators having
jurisdiction over the Seller.&#160; Purchaser
may disclose such non-public information its attorneys, surveyors, engineers,
financial advisors, investors and lenders as necessary to evaluate the
Purchased Assets.&#160; Purchaser agrees that
while in possession of material non-public information concerning Seller,
Purchaser will not trade in the securities of Seller nor tip or advise others
with respect to such trading.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If any term or other
provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other conditions and provisions of
this Agreement shall nevertheless remain in full force and effect so long as
the economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party.&#160; Upon such determination that any term or
other provision is invalid, illegal or incapable of being enforced, the parties
hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable
manner to the end that transactions contemplated hereby are fulfilled to the
extent possible.</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='33',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement shall
be binding upon and inure solely to the benefit of each party hereto and their
respective successors and assigns, and nothing in this Agreement, express or
implied is intended to or shall confer upon any other person any right, benefit
or remedy of any nature whatsoever under or by reason of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each party hereto
has participated in the drafting of this Agreement, which each party
acknowledges is the result of extensive negotiations between the parties.&#160; In the event of any ambiguity or question of
intent arises, this Agreement shall be construed as if drafted jointly by the
parties and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Time is of the
essence with respect to the time periods set forth in this Agreement.</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[<i>Signatures
appear on the following page</i>.]</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">34</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='34',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, Purchaser and Seller have signed
this Agreement on the day and year first above written.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->PURCHASER:</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MANDEKIC
  COMPANIES, LLC,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Nevada limited
  liability company</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ Ted Mandekic</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:&nbsp; Ted Mandekic</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SELLER:</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SPEAKEASY GAMING
  OF LAS VEGAS, INC.,</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a Nevada
  corporation</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/S/ Edson R.
  Arneault</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:&nbsp; Edson R. Arneault</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="49%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:49.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:50.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:&nbsp;&nbsp; President</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;text-indent:180.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">35</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='35',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p style="margin:0pt 0pt 12.0pt;text-indent:180.0pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXHIBITS</font></u></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:180.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlHTMLTableCenter -->A</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:27.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LEGAL DESCRIPTION</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:27.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">PERMITTED EXCEPTIONS</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="13%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:13.86%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:5.94%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="27%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:27.72%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">FINANCIAL INFORMATION</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">36</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='36',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->
<br clear="all" style="page-break-before:always;">
 <p align="right" style="margin:0pt 0pt .0001pt;text-align:right;"><font size="3" face="Times New Roman" style="font-size:12.0pt;">&nbsp;</font></p> <p style="line-height:5.0pt;margin:0pt 0pt 21.4pt;"><font size="1" face="Times New Roman" style="font-size:5.0pt;">&nbsp;</font></p>


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SCHEDULES</font></u></p>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.32%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7(a) </font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ASSUMED LIABILITIES</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8(k)</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SELLER&#146;S LIABILITIES</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8(o)</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GAMING ASSETS AT THE HOTEL</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8(p)</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYEES</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="14%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:14.32%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.14%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8(q)</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:4.1%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#151;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.08%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="42%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:42.98%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EMPLOYEE BENEFIT PLANS</font></p>
  </td>
  <td width="26%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:26.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">37</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='37',FILE='C:\fc\441157318_D11529_1708344\4372-1-km-05.htm',USER='jmsproofassembler',CD='Feb 13 11:57 2007' -->


</body>

</html>
</TEXT>
</DOCUMENT>
