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THIRD AMENDMENT AGREEMENT

    This Third Amendment Agreement dated as of April 6, 2001 ("Amendment") is
entered into with reference to the Second Amended and Restated Loan Agreement
(as amended, the "Loan Agreement") dated as of April 10, 2000 among MGM
Grand, Inc., a Delaware corporation (now known as MGM MIRAGE and referred to
herein as "Borrower"), MGM Grand Atlantic City, Inc., a New Jersey corporation
("Atlantic City"), MGM Grand Detroit, LLC, a Delaware limited liability company
("Detroit"), as Co-Borrowers, the Banks named therein, and Bank of America,
N.A., as Administrative Agent and with reference to the following facts:

    A.  Substantially concurrently with the execution of the Loan Agreement,
Borrower and the Co-Borrowers also entered into (a) the 364-Day Loan Agreement
dated as of April 10, 2000, and (b) the Term Loan Agreement dated as of April 7,
2000 (collectively, as amended, the "Other Loan Agreements"). The Loan Agreement
and the Other Loan Agreements have previously been amended by Omnibus Amendment
Agreements dated as of September 6, 2000 and December 21, 2000 among the parties
hereto.

    B.  Prior to or substantially concurrently herewith, the remaining
obligations under the Term Loan Agreement are being repaid in full, and the
364-Day Loan Agreement is being refinanced with a new $1,000,000,000 364-Day
Loan Agreement among Borrower, the Co-Borrowers, the lenders described therein,
and Bank of America, N.A., as Administrative Agent.

    NOW, THEREFORE, Borrower, Atlantic City, Detroit and the Administrative
Agent, acting on behalf of the Requisite Banks under the Loan Agreement, hereby
agree to amend the Loan Agreement as follows:

    1.  Definitions.  Capitalized terms used herein but not defined are used
with the meanings set forth for those terms in the Loan Agreement.

    2.  Amendment to Section 6.7—Negative Pledge.  Section 6.7 of the Loan
Agreement is hereby amended to add thereto a new clause (j) to read in full as
follows:

    "(j) Liens granted on the stock, partnership or other equity interests in a
Person which is not a Restricted Subsidiary owned by Borrower or any of its
Restricted Subsidiaries, which are granted solely to secure Indebtedness of that
Person."

    3.  Amendment to Section 6.8—Leverage Ratio.  Section 6.8 of the Loan
Agreement is hereby amended to read in full as follows:

    "6.8  Leverage Ratio.  Permit the Leverage Ratio, as of any Fiscal Quarter
described below to be greater than the ratio set forth below opposite that
Fiscal Quarter (it being understood that this covenant will not apply to the
Fiscal Quarter ending June 30, 2000):

Fiscal Quarters Ending

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  Maximum Ratio

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September 30, 2000 through
December 31, 2001   5.25:1.00
March 31, 2002 through
December 31, 2002
 
5.00:1.00
March 31, 2003 through
December 31, 2003
 
4.75:1.00
March 31, 2004 and thereafter
 
4.50:1.00."

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    4.  Amendment to Section 8.2(a)—Conditions to Advances.  Section 8.2(a) of
the Loan Agreement is hereby amended to read in full as follows (with the added
text indicated in bold and italicized text for the convenience of the reader):

    "(a)  except  (i) for representations and warranties which expressly speak
as of a particular date or are no longer true and correct as a result of a
change which is permitted by this Agreement or (ii) as disclosed by Borrower and
the Co-Borrowers and approved in writing by the Requisite Banks, the
representations and warranties contained in Article 4 (other than Sections
4.4(a), 4.6, 4.8, 4.10, 4.17 and 4.18 (but only if Borrower and its Restricted
Subsidiaries are diligently engaged in measures that will result in compliance
with all Hazardous Materials Laws)) shall be true and correct on and as of the
date of the Advance as though made on that date;"

    5.  Conditions Precedent.  The effectiveness of this Amendment shall be
conditioned upon the receipt by the Administrative Agent of written consents to
the execution, delivery and performance hereof from the Requisite Banks under
the Loan Agreement.

    6.  Representation and Warranty.  Borrower and each of the Co-Borrowers
represents and warrants to the Administrative Agent and the Banks that no
Default or Event of Default has occurred and remains continuing.

    7.  Confirmation.  In all other respects, the terms of the Loan Agreement
and the other Loan Documents are hereby confirmed.

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

    MGM MIRAGE (formerly, MGM GRAND, INC.)
MGM GRAND ATLANTIC CITY, INC.
and
MGM GRAND DETROIT, LLC
        By:  MGM Grand Detroit, Inc., managing member
 
 
 
 
 
 
By:
/s/ SCOTT LANGSNER   

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    Scott Langsner, Secretary and Treasurer of each of the foregoing
 
 
BANK OF AMERICA, N.A., as Administrative Agent
 
 
 
 
 
 
By:
/s/ JANICE HAMMOND   

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            Janice Hammond, Vice President

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CONSENT OF BANK

    This Consent of Bank is delivered with reference to the Second Amended and
Restated Loan Agreement dated as of April 10, 2000 (the "Loan Agreement") among
MGM Grand, Inc., a Delaware corporation (now known as MGM MIRAGE), MGM Grand
Atlantic City, Inc., a New Jersey corporation, and MGM Grand Detroit, LLC, a
Delaware limited liability company, as Co-Borrowers, the Banks named therein,
and Bank of America, N.A., as Administrative Agent. The Loan Agreement has
previously been amended by Omnibus Amendment Agreements dated as of September 6,
2000 and December 21, 2000 among the parties hereto.

    The undersigned Bank hereby consents to the execution, delivery and
performance of the proposed Third Amendment Agreement dated as of March  , 2000,
substantially in the form presented to the undersigned as drafts, and to the
amendment to the Leverage Ratio and the other amendments set forth therein.

 
 
 
 

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  [Typed/Printed Name of Bank]    
By:
 
 
   

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Title:
 
 
   

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Date:
 
 
   

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THIRD AMENDMENT AGREEMENT
CONSENT OF BANK