EXHIBIT 4.2

EXECUTION

SHORT TERM CREDIT AGREEMENT

dated as of

August 23, 2001

among

PARK PLACE ENTERTAINMENT CORPORATION

The Lenders, Syndication Agent and Co-Documentation Agents Referred to Herein

and

BANK OF AMERICA, N.A.
as Administrative Agent

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BANC OF AMERICA SECURITIES LLC.
Lead Arranger and Sole Book Manager

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TABLE OF CONTENTS

|             |      |                                |                                                                  | Page
|------------ | ---- | ------------------------------ | ---------------------------------------------------------------- | ----
|ARTICLE I.   |      | DEFINITIONS                    |                                                                  | 1   
|             | 1.01 |                                | Definitions                                                      |     
|             | 1.02 |                                | Accounting Terms and Determinations                              |     
|             | 1.03 |                                | Types of Borrowings                                              |     
|ARTICLE II.  |      | THE CREDITS                    |                                                                  | 10  
|             | 2.01 |                                | Commitments to Lend                                              |     
|             | 2.02 |                                | Notice of Committed Borrowings                                   |     
|             | 2.03 |                                | [RESERVED.]                                                      |     
|             | 2.04 |                                | [RESERVED.]                                                      |     
|             | 2.05 |                                | Conversion and Continuation of Committed Loans                   |     
|             | 2.06 |                                | Notice to Lenders; Funding of Loans                              |     
|             | 2.07 |                                | Notes                                                            |     
|             | 2.08 |                                | Interest Rates                                                   |     
|             | 2.09 |                                | Upfront Fees                                                     |     
|             | 2.10 |                                | Facility Fees                                                    |     
|             | 2.11 |                                | [RESERVED.]                                                      |     
|             | 2.12 |                                | Optional Termination or Reduction of Commitments by the Borrower |     
|             | 2.13 |                                | Optional Termination of Commitments by the Lenders               |     
|             | 2.14 |                                | Scheduled Termination of Commitments                             |     
|             | 2.15 |                                | Extensions of the Termination Date                               |     
|             | 2.16 |                                | Optional Prepayments                                             |     
|             | 2.17 |                                | General Provisions as to Payments                                |     
|             | 2.18 |                                | Funding Losses                                                   |     
|             | 2.19 |                                | Computation of Interest and Fees                                 |     
|             | 2.20 |                                | Withholding Tax Exemption                                        |     
|             | 2.21 |                                | [RESERVED.]                                                      |     
|             | 2.22 |                                | Regulation D Compensation                                        |     
|             | 2.23 |                                | Increased Commitments; Additional Lenders                        |     
|ARTICLE III. |      | CONDITIONS                     |                                                                  | 17  
|             | 3.01 |                                | Borrowings                                                       |     
|             | 3.02 |                                | Effectiveness                                                    |     
|ARTICLE IV.  |      | REPRESENTATIONS AND WARRANTIES |                                                                  | 18  
|             | 4.01 |                                | Corporate Existence and Power                                    |     
|             | 4.02 |                                | Corporate and Governmental Authorization; Contravention          |     
|             | 4.03 |                                | Binding Effect                                                   |     
|             | 4.04 |                                | Financial Information                                            |     
|             | 4.05 |                                | Litigation                                                       |     
|             | 4.06 |                                | Compliance with ERISA                                            |     
|             | 4.07 |                                | Taxes                                                            |     
|             | 4.08 |                                | Significant Subsidiaries                                         |     
|             | 4.09 |                                | Not an Investment Company                                        |     
|             | 4.10 |                                | Environmental Matters                                            |     
|             | 4.11 |                                | Full Disclosure                                                  |     
|             | 4.12 |                                | Solvency                                                         |     

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|              | 4.13 |                         | Gaming Laws                                               |    | 19
|------------- | ---- | ----------------------- | --------------------------------------------------------- | -- | --
|ARTICLE V.    |      | COVENANTS               |                                                           | 20
|              | 5.01 |                         | Information                                               |    | 20
|              | 5.02 |                         | Maintenance of Property; Insurance                        |    | 21
|              | 5.03 |                         | Conduct of Business and Maintenance of Existence          |    | 21
|              | 5.04 |                         | Compliance with Laws                                      |    | 22
|              | 5.05 |                         | Inspection of Property, Books and Records                 |    | 22
|              | 5.06 |                         | Negative Pledge                                           |    | 22
|              | 5.07 |                         | Consolidations, Mergers and Sales of Assets               |    | 23
|              | 5.08 |                         | Hostile Tender Offers                                     |    | 23
|              | 5.09 |                         | Use of Proceeds                                           |    | 23
|              | 5.10 |                         | Leverage Ratio                                            |    | 23
|              | 5.11 |                         | Interest Coverage Ratio                                   |    | 23
|ARTICLE VI.   |      | DEFAULTS                |                                                           | 24
|              | 6.01 |                         | Events of Default                                         |    | 24
|              | 6.02 |                         | Notice of Default                                         |    | 25
|ARTICLE VII.  |      | THE AGENTS              |                                                           | 25
|              | 7.01 |                         | Appointment and Authorization                             |    | 25
|              | 7.02 |                         | Agents and Affiliates                                     |    | 25
|              | 7.03 |                         | Action by Agents                                          |    | 26
|              | 7.04 |                         | Consultation with Experts                                 |    | 26
|              | 7.05 |                         | Liability of Agent                                        |    | 26
|              | 7.06 |                         | Indemnification                                           |    | 26
|              | 7.07 |                         | Credit Decision                                           |    | 26
|              | 7.08 |                         | Successor Agent                                           |    | 26
|              | 7.09 |                         | Agents' Fees                                              |    | 27
|ARTICLE VIII. |      | CHANGE IN CIRCUMSTANCES |                                                           | 27
|              | 8.01 |                         | Basis for Determining Interest Rate Inadequate or Unfair  |    | 27
|              | 8.02 |                         | Illegality                                                |    | 27
|              | 8.03 |                         | Increased Cost and Reduced Return                         |    | 28
|              | 8.04 |                         | Base Rate Loans Substituted for Affected Fixed Rate Loans |    | 29
|ARTICLE IX.   |      | MISCELLANEOUS           |                                                           | 29
|              | 9.01 |                         | Notices                                                   |    | 29
|              | 9.02 |                         | No Waivers                                                |    | 29
|              | 9.03 |                         | Expenses; Documentary Taxes; Indemnification              |    | 29
|              | 9.04 |                         | Amendments and Waivers                                    |    | 30
|              | 9.05 |                         | Successors and Assigns                                    |    | 30
|              | 9.06 |                         | Collateral                                                |    | 33
|              | 9.07 |                         | California Law; Submission to Jurisdiction                |    | 33
|              | 9.08 |                         | Counterparts; Integration                                 |    | 33
|              | 9.09 |                         | Several Obligations                                       |    | 33
|              | 9.10 |                         | Sharing of Set-Offs                                       |    | 33
|              | 9.11 |                         | WAIVER OF JURY TRIAL                                      |    | 34
|              | 9.12 |                         | Confidentiality                                           |    | 34

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|Schedules: |  |   |  |                                        
|---------- |  | - |  | ---------------------------------------
|Schedule 1 |  |  |  | Pricing Schedule                       
|Exhibits:  |  |   |  |                                        
|Exhibit A  |  |  |  | Compliance Certificate                 
|Exhibit B  |  |  |  | Form of Note                           
|Exhibit C  |  |  |  | Pricing Certificate                    
|Exhibit D  |  |  |  | Form of Notice of Committed Borrowing  
|Exhibit E  |  |  |  | Extension Agreement                    
|Exhibit F  |  |  |  | Opinion of Gibson, Dunn & Crutcher, LLP
|Exhibit G  |  |  |  | Assignment and Assumption Agreement    

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SHORT TERM CREDIT AGREEMENT

SHORT TERM CREDIT AGREEMENT dated as of August 23, 2001, among PARK PLACE ENTERTAINMENT CORPORATION, the Lenders listed on the signature pages hereto,
THE BANK OF NOVA SCOTIA, as Syndication Agent, BANKERS TRUST COMPANY, SOCIÉTÉ GÉNÉRALE and CREDIT SUISSE FIRST BOSTON as
Co-Documentation Agents and BANK OF AMERICA, N.A., as Administrative Agent.

The
parties hereto agree as follows:

ARTICLE I.        DEFINITIONS

1.01Definitions.The following terms, as used herein, have the following meanings:

"Administrative
Agent" means Bank of America, N.A. in its capacity as administrative agent for the Lenders hereunder, and its successors in such capacity.

"Administrative
Questionnaire" means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative
Agent (with a copy to the Borrower) duly completed by such Lender.

"Affiliate"
means, as to any Person, any other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person. As used in this
definition, "control" (and the correlative terms, "controlled by" and "under common control with") shall mean possession, directly or indirectly, of power to direct or cause the direction of
management or policies (whether through
ownership of securities or partnership or other ownership interests, by contract or otherwise);providedthat, in any event, any Person that owns,
directly or indirectly, 5% or more of the securities having ordinary voting power for the election of directors or other governing body of a corporation that has more than 100 record holders of such
securities, or 5% or more of the partnership or other ownership interests of any other Person that has more than 100 record holders of such interests, will be deemed to control such corporation or
other Person.

"Agents"
mean, collectively, the Administrative Agent, the Syndication Agent and the Co-Documentation Agents, and "Agent" means any of them.

"Applicable
Lending Office" means, with respect to any Lender, (i) in the case of its Base Rate Loans, its Domestic Lending Office, and (ii) in the case of its
Euro-Dollar Loans, its Euro-Dollar Lending Office.

"Authorized
Officer" means any of the controller, the treasurer or the chief financial officer of the Borrower.

"Bank
of America" means Bank of America, N.A., its successors and assigns.

"Base
Rate" means, as of any date of determination, the rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to thehigher of(a) the Reference Rate in effect on such date
(calculated on the basis of a year of 365 or 366 days and the actual number of days elapsed) and (b) the
Federal Funds Rate in effect on such date (calculated on the basis of a year of 360 days and the actual number of days elapsed)plus1/2 of 1% (50 basis points).

"Base
Rate Loan" means a Committed Loan made or to be made by a Lender as a Base Rate Loan in accordance with the applicable Notice of Committed Borrowing or pursuant to
Article VIII.

"Base
Rate Margin" has the meaning set forth on Schedule 1.

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"Benefit Arrangement" means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained
or otherwise contributed to by any member of the ERISA Group.

"Borrower"
means Park Place Entertainment Corporation, a Delaware corporation, and its successors.

"Borrowing"
means the aggregation of Loans of one or more Lenders to be made to the Borrower pursuant to Article II on a single date and, in the case of Borrowings consisting
of Euro-Dollar Loans, for a single Interest Period.

"Change
of Control" means the occurrence of a Rating Decline in connection with any of the following events: (i) upon any merger or consolidation of the Borrower with or into
any person or any sale, transfer or other conveyance, whether direct or indirect, of all or substantially all of the assets of the Borrower, on a consolidated basis, in one transaction or a series of
related transactions, if, immediately after giving effect to such transaction, any person or group of persons (within the meaning of Section 13 or 14 of the Securities Exchange Act of 1934, as
amended) is or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by the Securities and Exchange Commission under said Act) of securities representing a
majority of the total voting power of the aggregate outstanding securities of the transferee or surviving entity normally entitled to vote in the election of directors, managers, or trustees, as
applicable, of the transferee or surviving entity, (ii) when any person or group of persons (within the meaning of Section 13 or 14 of the Securities Exchange Act of 1934, as amended) is
or becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated by The Securities and Exchange Commission under said Act) of securities representing a majority of
total voting power of the aggregate outstanding securities of the Borrower normally entitled to vote in the election of directors of the Borrower, (iii) when, during any period of 12
consecutive calendar months, individuals who were directors of the Borrower on the first day of such period (together with any new directors whose election by the board of directors of the Borrower or
whose nomination for election by the stockholders of the Borrower was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period
or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the board of directors of the Borrower, or (iv) the sale or
disposition, whether directly or indirectly, by the Borrower of all or substantially all of its assets.

"Co-Documentation
Agents" mean, Bankers Trust Company, Société Générale and Credit Suisse First Boston, each in
its capacity as documentation agent for the Lenders hereunder. The capacity of the Co-Documentation Agents is titular in nature, and the Co-Documentation Agents shall have no
obligations or liabilities under the Loan Documents by reason of acting in such capacity.

"Commitment"
means, as to each Lender, the commitment of that Lender to make Loans in each case as such amount may be reduced from time to time pursuant to Section 2.12, 2.13
or 2.14, or increased pursuant to Section 2.23. The aggregate amount of the Commitments under this Agreement as of the Effective Date is $1,500,000,000. As of the Effective Date, each Lender
has made a Commitment which is equal to the amount of the Note issued to that Lender on the Effective Date.

"Committed
Loan" means a loan made or to be made by a Lender pursuant to Section 2.01.

"Compliance
Certificate" means a certificate, substantially in the form of Exhibit A, properly completed and signed by an Authorized Officer.

"Consolidated
Debt" means at any date the Debt of the Borrower and its Consolidated Subsidiaries, determined on a consolidated basis as of such date,providedthat Consolidated Debt shall exclude any Debt of the
Borrower or a Subsidiary as to which cash and cash equivalents sufficient to provide for payment in full of such Debt at
its scheduled maturity or at an earlier date at which it shall have been or may be called for redemption shall have been irrevocably deposited in trust for the

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benefit of the holders of such Debt or a representative of such holders, which deposit shall have resulted in the legal or in-substance defeasance thereof.

"Consolidated
EBITDA" means, for any period, Consolidated Net Income for such period before (i) income taxes, (ii) interest expense, (iii) depreciation and
amortization, (iv) minority interest, (v) extraordinary losses or gains, (vi) Pre-Opening Expenses,and
(vii) nonrecurring non-cash charges,providedthat, in calculating "Consolidated EBITDA":



"Consolidated
Interest Expense" means, for any period, net interest expense of the Borrower and its Consolidated Subsidiaries for such period, determined in accordance with generally
accepted accounting principles,providedthat in calculating "Consolidated Interest Expense" for any period, the interest expenses of the Borrower and
its Consolidated Subsidiaries shall be adjusted for any acquisition or disposition of any resort or casino property acquired or sold or otherwise disposed of by the Borrower and its Subsidiaries
during the relevant period, on a pro forma basis, utilizing a reasonable methodology which shall be (i) proposed by the Borrower, (ii) consented to by the Administrative Agent at the
time of such calculation, which consent shall not be unreasonably withheld, and (iii) not objected to in writing by the Required Lenders within the ten Domestic Business Days following notice
of such methodology.

"Consolidated
Net Income" means, for any period, the consolidated net income of the Borrower and its Consolidated Subsidiaries for such period.

"Consolidated
Net Tangible Assets" means the total amount of assets of the Borrower and its Consolidated Subsidiaries, after deducting therefrom (a) all current liabilities of
the Borrower and its Consolidated Subsidiaries (excluding (i) the current portion of long term indebtedness, (ii) inter-company liabilities, and (iii) any liabilities which are by
their terms renewable or extendable at the option of the obligor thereon to a time more than twelve months from the time as of which the amount thereof is being computed), and (b) all goodwill,
trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles, all as set forth on the latest consolidated balance sheet of the Borrower prepared in accordance
with generally accepted accounting principles.

"Consolidated
Subsidiary" means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of the Borrower in its consolidated financial
statements as of such date.

"Covered
Subsidiary" means at any time any Subsidiary of the Borrower that has consolidated assets in an amount greater than $5,000,000.

"Debt"
of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in
the ordinary course of business, (iv) all obligations of such Person as lessee which are capitalized in accordance with generally accepted accounting principles, (v) all indebtedness or
other obligations secured by a contractual Lien on any asset of such Person, whether or not such indebtedness or other obligations are otherwise an obligation of such

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Person, and (vi) all Guarantees made by such Person (including by way of provision of letters of credit or other contingent obligations) with respect to indebtedness or other obligations of any
other Person which constitute "Debt" of a type or class described in clauses (i) through (v) of this definition.

"Default"
means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured or waived, become an Event
of Default.

"Dollars"
and the sign "$" mean lawful money of the United States.

"Domestic
Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York City or Los Angeles are authorized or required by law to
close.

"Domestic
Lending Office" means, as to each Lender, its office located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire
as its Domestic Lending Office) or such other office as such Lender may hereafter designate as its Domestic Lending Office by notice to the Borrower and the Administrative Agent.

"Effective
Date" means the date this Agreement becomes effective in accordance with Section 3.02.

"Eligible
Assignee" means (a) another Lender, (b) with respect to any Lender, any Affiliate of that Lender, (c) any commercial bank having a combined capital and
surplus of $500,000,000 or more, (d) any (i) savings bank, savings and loan association or similar financial institution or (ii) insurance company engaged in the business of
writing insurance which, in either case (A) has a net worth of $500,000,000 or more, (B) is engaged in the business of lending money and extending credit under credit facilities
substantially similar to those extended under this Agreement and (C) is operationally and procedurally able to meet the obligations of a Lender hereunder to the same degree as a commercial bank
and (e) any other financial institution (includinga mutual fund or other fund) having total assets of $250,000,000 or more which meets the
requirements set forth in subclauses (B) and (C) of clause (d) above;providedthat each Eligible Assignee must either
(a) be organized under the laws of the United States of America, any State thereof or the District of Columbia or (b) be organized under the laws of the Cayman Islands or any country
which is a member of the Organization for Economic Cooperation and Development, or a political subdivision of such a country, and (i) act hereunder through a branch, agency or funding office
located in the United States of America and (ii) is otherwise exempt from withholding of tax on interest and delivers Form W-8 ECI pursuant to Section 2.20 at the time
of any assignment pursuant to Section 9.05.

"Environmental
Laws" means any and all statutes, regulations, permits, licenses or other governmental restrictions relating to the environment or to releases of petroleum or petroleum
products, chemicals or toxic or hazardous substances or wastes into the environment.

"ERISA"
means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

"ERISA
Group" means the Borrower, any Subsidiary and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control
which, together with the Borrower or any Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code.

"Euro-Dollar
Business Day" means any Domestic Business Day on which commercial banks are open for international business (including dealings in Dollar deposits) in London.

"Euro-Dollar
Lending office" means, as to each Lender, its office, branch or affiliate located at its address set forth in its Administrative Questionnaire (or identified
in its Administrative Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or affiliate of such Lender as it may

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hereafter designate as its Euro-Dollar Lending Office by notice to the Borrower and the Administrative Agent.

"Euro-Dollar
Loan" means a Committed Loan made or to be made by a Lender as a Euro-Dollar Loan in accordance with the applicable Notice of Committed Borrowing.

"Euro-Dollar
Margin" has the meaning set forth on Schedule 1.

"Euro-Dollar
Reserve Percentage" means for any day that percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Board of Governors of the
Federal Reserve System (or any successor) for determining the maximum reserve requirement for a member bank of the Federal Reserve System with deposits exceeding five billion Dollars in respect of
"eurocurrency liabilities" (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on Euro-Dollar Loans is determined or any
category of extensions of credit or other assets which includes loans by a non-United States office of any bank to United States residents).

"Event
of Default" has the meaning set forth in Section 6.01.

"Existing
Short Term Credit Agreement" means the Short Term Credit Agreement dated as of August 28, 2000, in each case among the Borrower, the lenders therein named and the
Administrative Agent, as amended.

"Facility
Fee Rate" has the meaning set forth in Section 2.10.

"Federal
Funds Rate" means, for any day, the rate per annum (rounded upward, if necessary, to the nearest 1/100th of l%) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Domestic Business Day
next succeeding such day,providedthat (i) if such day is not a Domestic Business Day, the Federal Funds Rate for such day shall be such rate on
such transactions on the next preceding Domestic Business Day as so published on the next succeeding Domestic Business Day, and (ii) if no such rate is so published on such next succeeding
Domestic Business Day, the Federal Funds Rate for such day shall be the average rate quoted to The Bank of New York on such day on such transactions as determined by the Administrative Agent.

"Fixed
Rate Loans" means Euro-Dollar Loans.

"Gaming
Board" means, collectively, (a) the Nevada Gaming Commission, (b) the Nevada State Gaming Control Board, (c) the New Jersey Casino Control
Commission, (d) the New Jersey Division of Gaming Enforcement, (e) the Mississippi Gaming Commission, and (f) any other Governmental Agency that holds regulatory, licensing
or permit authority over gambling, gaming or casino activities conducted by the Borrower or its Subsidiaries within its jurisdiction.

"Gaming
Laws" means all laws pursuant to which any Gaming Board possesses regulatory, licensing or permit authority over gambling, gaming or casino activities conducted by the
Borrower or its Subsidiaries within its jurisdiction.

"Governmental
Agency" means (a) any international, foreign, federal, state, county or municipal government, or political subdivision thereof, (b) any governmental or
quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body (including any Gaming Board) or (c) any court or administrative tribunal of competent
jurisdiction.

"Granting
Lender" has the meaning set forth in Section 9.05(f).

"Guarantee"
by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person and, without limiting the
generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or

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pay (or advance or supply funds for the purchase or payment of) such Debt (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for the
purpose of assuring in any other manner the holder of such Debt of the payment thereof or to protect such holder against loss in respect thereof (in whole or in part), including by way of provision of
letters of credit or other contingent obligations with respect thereto,providedthat the term Guarantee shall not include (x) endorsements for
collection or deposit in the ordinary course of business or (y) performance or completion guarantees. The term "Guarantee" used as a verb has a corresponding meaning.

"Increased
Commitment" has the meaning set forth in Section 2.23.

"Indemnitee"
has the meaning set forth in Section 9.03(b).

"Interest
Coverage Ratio" means, as of each date of determination, the ratio of (a) Consolidated EBITDA for the four fiscal quarters ending on that date, to
(b) Consolidated Interest Expense for the same period.

"Interest
Period" means, with respect to each Euro-Dollar Borrowing, the period commencing on the date of such Borrowing and ending one week or 1, 2, 3 or 6 months
thereafter, as the Borrower may elect in the applicable Notice of Committed Borrowing or Notice of Conversion/Continuation;providedthat:



"Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended, or any successor statute.

"Investment
Grade" means (i) with respect to S&P, a rating of BBB- or higher, and (ii) with respect to Moody's, a rating of Baa3 or higher.

"Lead
Arranger and Sole Book Manager" means Banc of America Securities LLC. Following the date of this Agreement, the Lead Arranger and Sole Book Manager shall have no obligations or
liabilities under the Loan Documents.

"Lender"
means each lender listed on the signature pages hereof and each Lender which accepts an assignment pursuant to Section 9.05, and their respective successors.

"Leverage
Ratio" means, as of any date of determination, the ratio of (a) Consolidated Debt on such date to (b) Consolidated EBITDA for the period of four consecutive
fiscal quarters ending on such date.

"License
Revocation" means the revocation, failure to renew or suspension of, or the appointment of a receiver, supervisor or similar official with respect to, any casino, gambling or
gaming license

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issued by any Gaming Board covering any casino or gaming facility of the Borrower and its Subsidiaries.

"Lien"
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset. For the purposes of this Agreement,
the Borrower or any Subsidiary shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement relating to such asset.

"Loan"
means a Base Rate Loan or a Euro-Dollar Loan and "Loans" means Base Rate Loans or Euro-Dollar Loans or any combination of the foregoing.

"Loan
Documents" means this Agreement, the Notes and each other instrument, document or agreement now or hereafter executed by the parties in furtherance of this Agreement.

"London
Interbank Offered Rate" means, as to the Interest Period applicable to each Euro-Dollar Loan, the average (rounded upward, if necessary, to the next higher
1/16 of 1%) of the respective rates per annum at which deposits in Dollars are offered to the Administrative Agent in the London interbank market at approximately 11:00 A.M.
(London time) two Euro-Dollar Business Days before the first day of such Interest Period in an amount approximately equal to the principal amount of the Euro-Dollar Loan of the
Administrative Agent to which such Interest Period is to apply and for a period of time comparable to such Interest Period.

"Margin
Adjustment" has the meaning set forth in the Schedule 1.

"Material
Plan" means at any time a Plan or Plans having aggregate Unfunded Liabilities in excess of $25,000,000.

"Moody's"
means Moody's Investors Service, Inc., and its successors.

"Multiemployer
Plan" means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making
or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group
during such five year period.

"New
Project" means each new hotel-casino, casino or resort project (as opposed to any project which consists of an extension or redevelopment of an operating hotel, casino or resort)
having a development and construction budget in excess of $25,000,000 which hereafter receives a certificate of completion or occupancy and all relevant gaming and other licenses, and in fact
commences operations.

"Non-Recourse
Debt" means Debt in respect of which the recourse of the holder of such Debt is limited to the assets securing such Debt and such Debt does not constitute
the general obligation of the Borrower or any Subsidiary.

"Notes"
means promissory notes of the Borrower, substantially in the form of Exhibit B hereto, evidencing the obligation of the Borrower to repay the Loans, and "Note" means
any one of such promissory notes issued hereunder.

"Notice
of Borrowing" means a Notice of Committed Borrowing (as defined in Section 2.02).

"Notice
of Committed Borrowing" has the meaning set forth in Section 2.02.

"Notice
of Conversion\Continuation" has the meaning set forth in Section 2.05.

"Other
Commitments" means the lending commitments under the Other Credit Agreement.

"Other
Credit Agreement" means the Five Year Credit Agreement dated as of December 31, 1998 among the Borrower, the lenders therein named and Bank of America, N.A., as
Administrative Agent,

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as amended by Amendment No. 1 dated as of August 31, 1999, an Amendment No. 2 dated as of August 28, 2000 and by an Amendment No. 3 dated as of August 23,
2001, and as at any time further amended or, following the termination of the Five Year Credit, and at such times as loans are available thereunder, the Multi-Year Credit Agreement dated
as of August 23, 2001 among the Borrower, the lenders referred to therein, and Bank of America, N.A., as at any time amended.

"Parent"
means, with respect to any Lender, any Person controlling such Lender.

"PBGC"
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

"Person"
means an individual, a corporation, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or an agency
or instrumentality thereof.

"Plan"
means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under
Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or
(ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was
at such time a member of the ERISA Group.

"Pre-Opening
Expenses" means, with respect to any fiscal period, the amount of expenses (other thanConsolidated Interest
Expense) incurred with respect to capital projects which are classified as
"pre-opening expenses" on the applicable financial statements of the Borrower and its Subsidiaries for such period prepared in accordance with generally accepted accounting principles.

"Pricing
Certificate" means a Pricing Certificate substantially in the form of Exhibit C hereto, properly completed and signed by an Authorized Officer of the Borrower.

"Pricing
Period" means (a) the period beginning on the Effective Date and ending on August 31, 2001, and (b) each period of three months beginning on the first
day of each March, June, September and December and ending on the last day of the succeeding May, August, November and February.

"Public
Notice" means, without limitation, any filing or report made in accordance with the requirements of the Securities and Exchange Commission (or any successor), any press
release or public announcement made by the Borrower or any written notice the Borrower gives to the Administrative Agent or the Lenders.

"Rating
Agencies" means S&P and Moody's.

"Rating
Decline" means the occurrence on any date on or within 90 days after the date of the first Public Notice of (i) the occurrence of an event described in clauses
(i)-(iv) of the definition of "Change of Control" or (ii) the intention by the Borrower to effect such an event (which 90-day period shall be extended so long as the rating
of the senior debt of the Borrower is under publicly announced consideration for possible downgrade by any of the Rating Agencies) of a decrease in the rating of the senior debt of the Borrower by any
of the Rating Agencies to below Investment Grade.

"Reference
Rate" means the rate of interest publicly announced from time to time by Bank of America as its "prime rate" or the similar prime rate or reference rate announced by any
successor Administrative Agent. Bank of America's prime rate is a rate set by Bank of America based upon various factors including Bank of America's costs and desired return, general economic
conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in the Reference Rate announced by Bank
of America or

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any successor Administrative Agent shall take effect at the opening of business on the day specified in the public announcement of such change.

"Regulation U"
means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time.

"Required
Lenders" means at any time Lenders having at least 51% of the aggregate amount of the Commitments or, if the Commitments shall have been terminated, holding at least 51% of
the sum of the aggregate unpaid principal amount of the Loans.

"Revolving
Credit Period" means the period from and including the Effective Date to but not including the Termination Date.

"S&P"
means Standard & Poor's, a division of The McGraw Hill Companies, and its successors.

"Significant
Subsidiary" means each Subsidiary of the Borrower at any time having (i) at least 10% of the total consolidated assets of the Borrower and its Subsidiaries
(determined as of the last day of the most recent fiscal quarter of the Borrower) or (ii) at least 10% of the consolidated revenues of the Borrower and its Subsidiaries for the fiscal year of
the Borrower then most recently ended.

"Solvent"
as to any Person shall mean that (a) the sum of the assets of such Person, both at a fair valuation and at present fair saleable value, exceeds its liabilities,
including its probable liability in respect of contingent liabilities, (b) such Person will have sufficient capital with which to conduct its business as presently conducted and as proposed to
be conducted and (c) such Person has not incurred debts, and does not intend to incur debts, beyond its ability to pay such debts as they mature. For purposes of this definition, "debt" means
any liability on a claim, and "claim" means (x) a right to payment, whether or not such right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed,
undisputed, legal, equitable, secured, or unsecured, or (y) a right to an equitable remedy for breach of performance if such breach gives rise to a payment, whether or not such right to an
equitable remedy is reduced to judgment, fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured. With respect to any such contingent liabilities, such liabilities shall be
computed at the amount which, in light of all the facts and circumstances existing at the time, represents the amount which can reasonably be expected to become an actual or matured liability.

"SPC"
has the meaning set forth in Section 9.05(f).

"Subsidiary"
means any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other
persons performing similar functions are at the time directly or indirectly owned by the Borrower.

"Syndication
Agent" means The Bank of Nova Scotia, in its capacity as syndication agent for the Lenders hereunder. The capacity of the Syndication Agent is titular in nature, and the
Syndication Agent shall have no obligations or liabilities under the Loan Documents by reason of acting in such capacity.

"Termination
Date" means August 22, 2002 or such later date to which the Revolving Credit Period shall have been extended pursuant to Section 2.15, or, if such day is
not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day.

"Unfunded
Liabilities" means, with respect to any Plan at any time, the amount (if any) by which (i) the value of all benefit liabilities under such Plan, determined on a plan
termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market value of all Plan assets allocable to such liabilities
under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such

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Plan, but only to the extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA.

1.02Accounting Terms and Determinations.Unless otherwise specified herein, all accounting terms used
herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with generally
accepted accounting principles as in effect from time to time, applied on a basis consistent (except for changes concurred in by the Borrower's independent public accountants and disclosed in such
financial statements) with the most recent audited consolidated financial statements of the Borrower and its Consolidated Subsidiaries delivered to the Lenders;providedthat, if the Borrower notifies
the Administrative Agent that the Borrower wishes to amend any covenant in Article V to eliminate the effect of any change in generally
accepted accounting principles on the operation of such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to amend Article V for such purpose), then
the Borrower's compliance with such covenant shall be determined on the basis of generally accepted accounting principles in effect immediately before the relevant change in generally accepted
accounting principles became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

1.03Types of Borrowings.Borrowings are classified for purposes of this Agreement either by reference
to the pricing of Loans comprising such Borrowing (e.g.,a "Euro-Dollar Borrowing" is a Borrowing comprised of Euro-Dollar
Loans) or by reference to the provisions of Article II under which participation therein is determined (i.e.,a "Committed Borrowing" is a
Borrowing under Section 2.01 in which all Lenders participate in proportion to their commitments).

ARTICLE II.

THE CREDITS

2.01Commitments to Lend.During the Revolving Credit Period each Lender severally agrees, on the terms
and conditions set forth in this Agreement, to lend to the Borrower pursuant to this Section from time to time amounts such that (a) the aggregate principal of Committed Loans by such Lender at
any one time outstanding shall not exceed the amount of its Commitment, and (b) the aggregate principal outstanding amount of all Committed Loans shall not exceed the aggregate Commitments.
Each Borrowing under this Section shall be in an aggregate principal amount of $10,000,000 or any larger multiple of $1,000,000; and each Committed Borrowing shall be made from the several Lenders
ratably in proportion to their respective Commitments. Within the foregoing limits, the Borrower may borrow under this Section, repay, or to the extent permitted by Section 2.16, prepay Loans
and reborrow at any time on or prior to the Termination Date under this Section. The Committed Loans shall mature, and the principal amount thereof shall be due and payable, on the Termination Date.

2.02Notice of Committed Borrowings.The Borrower shall give the Administrative Agent notice (a "Notice
of Committed Borrowing"), substantially in the form of Exhibit D hereto, not later than 8:30 A.M. (California local time) on (y) the date of each Base Rate Borrowing and
(z) the third Euro-Dollar Business Day before each Euro-Dollar Borrowing, specifying:



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Not
more than twelve Committed Borrowings which are Euro-Dollar Borrowings having different Interest Periods shall be outstanding at any time.

2.03[RESERVED.]

2.04[RESERVED.]

2.05Conversion and Continuation of Committed Loans.Subject to the provisions of this
Article II governing the making of Euro-Dollar Loans, the Borrower shall have the option at any time (i) to convert all or any part of its outstanding Committed Loans equal
to $10,000,000 and integral multiples of $1,000,000 in excess of that amount from Loans bearing interest at a rate determined by reference to one basis to Committed Loans bearing interest at a rate
determined by reference to an alternative basis or (ii) upon the expiration of any Interest Period applicable to a Euro-Dollar Loan, to continue all or any portion of such Loan
equal to $1,000,000 and integral multiples of $100,000 in excess of that amount as a Euro-Dollar Loan;provided, however,that a
Euro-Dollar Loan may only be converted into a Base Rate Loan on the expiration date of an Interest Period applicable thereto.

The
Borrower shall deliver, to the Administrative Agent, notice of any such conversion or continuation, substantially in the form of Exhibit D (each a "Notice of
Conversion/Continuation"), no later than 8:30 A.M. (California local time) at least one Domestic Business Day in advance of the proposed conversion date (in the case of a conversion to a Base
Rate Loan) and at least three Euro-Dollar Business Days in advance of the proposed conversion/ continuation date (in the case of a conversion to, or a continuation of, a
Euro-Dollar Loan). A Notice of Conversion/Continuation shall specify (i) the proposed conversion/continuation date (which shall be a Domestic Business Day in the case of Base Rate
Loans and a Euro-Dollar Business Day, in the case of conversion to or continuation of Euro-Dollar Loans), (ii) the amount and type of the Loan to be converted/continued,
(iii) the nature of the proposed conversion/continuation, (iv) in the case of a conversion to, or a continuation of, a Euro-Dollar Loan, the requested Interest Period, and
(v) in the case of a conversion to, or a continuation of, a Euro-Dollar Loan, that no Default or Event of Default has occurred and is continuing.

2.06Notice to Lenders; Funding of Loans.



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2.07Notes.



2.08Interest Rates.



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2.09Upfront Fees.On the date upon which this Agreement is executed, the Borrower shall pay to the
Administrative Agent for the account of each Lender non-refundable upfront fees in the amounts set forth in letter agreements between each Lender and the Lead Arranger and Sole Book
Manager and advised by the Lead Arranger and Sole Book Manager to the Borrower.

2.10Facility Fees.The Borrower shall pay to the Administrative Agent for the account of the Lenders
ratably facility fees at the Facility Fee Rate determined daily in accordance with the Schedule 1 (the "Facility Fee Rate"). Such facility fee shall accrue from and including the Effective Date
to but excluding the Termination Date (or earlier date of termination of the Commitments in their entirety), on the daily aggregate amount of the Commitments (whether used or unused). Facility fees
shall be payable quarterly in arrears on December 1, 2001 and on the first day of each subsequent March, June, September and December and upon the date of termination of the Commitments in
their entirety, and are non-refundable.

2.11[RESERVED.]

2.12Optional Termination or Reduction of Commitments by the Borrower.During the Revolving Credit
Period, the Borrower may, upon at least five Domestic Business Days' notice to the Administrative Agent, (i) terminate the Commitments at any time, if no Loans are outstanding at such time or
(ii) ratably and permanently reduce from time to time by an aggregate amount of $25,000,000 or any larger amount in multiples of $1,000,000, the aggregate amount of the Commitments in excess of
the aggregate outstanding principal balance of the Loans.

2.13Optional Termination of Commitments by the Lenders.Following the occurrence of a Change of
Control, the Required Lenders may in their sole and absolute discretion elect, during the sixty day period immediately subsequent to thelaterof
(a) such occurrence and (b) theearlierof (i) receipt of the Borrower's written notice to the Administrative Agent of such
occurrence and (ii) if no such notice has been received by the Administrative Agent, the date upon which the Administrative Agent and the Lenders have actual knowledge thereof, to terminate all
of the Commitments. In any such case the Commitments shall be terminated effective on the date which is sixty days subsequent to the date of written notice from the Administrative Agent to the
Borrower thereof, and, to the extent that there is then any Debt evidenced by the Notes, the same shall be immediately due and payable.

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2.14Scheduled Termination of Commitments.The Commitments shall terminate on the Termination Date and
any Loans then outstanding (together with accrued interest thereon) shall be due and payable on such date.

2.15Extensions of the Termination Date.The Termination Date may be extended, in the manner set forth
in this Section, for a period of 364 days after the date on which the Termination Date would otherwise have occurred. If the Borrower wishes to extend the Termination Date, it shall give
written notice to that effect to the Administrative Agent not less than 90 days nor more than 150 days following the delivery to the Administrative Agent of the audited annual financial
statements of the Borrower in accordance with Section 5.01(a), whereupon the Administrative Agent shall notify each of the Lenders of such notice. Each Lender will respond to such request,
whether affirmatively or negatively, within the period which ends upon the later of (i) 30 days following the Borrower's request, or (ii) 45 days prior to the then
effective Termination Date (the "Response Date"). If a Lender or Lenders respond negatively or fail to timely respond to such request (each non-responding Lender being conclusively deemed
to refuse to consent to the extension), but such non-extending Lender(s) have Commitment(s) aggregating less than 331/3% of the aggregate amount of the Commitments, the
Borrower shall, for a period of 60 days following the Response Date, have the right, with the assistance of the Administrative Agent, to seek a mutually satisfactory substitute financial
institution or financial institutions (which may be one or more of the Lenders) to assume the Commitment(s) of such non-extending Lender(s). Not later than the third Domestic Business Day
prior to the end of such 60-day period, the Borrower shall, by notice to the Lenders through the Administrative Agent, either (i) terminate, effective on the third Domestic Business
Day after the giving of such notice, the Commitment(s) of such non-extending Lender(s), whereupon the Lenders who have consented to the extension shall continue with their Commitments
unaffected to lend subject to the terms of this Agreement to the new Termination Date, or (ii) designate one or more new financial institutions reasonably acceptable to the Administrative Agent
to assume the Commitments of such non-extending Lenders, whereupon the aggregate amount of
such Commitment(s) shall be assumed by such substitute financial institution or financial institutions within such 60-day period or (iii) withdraw its request for an extension of
the Termination Date, in which case the Commitments shall continue unaffected. The failure of the Borrower to timely take the actions contemplated by clause (i) or (ii) of the preceding
sentence shall be deemed a withdrawal of its request for an extension as contemplated by clause (iii) whether or not notice to such effect is given, and in no event shall the Termination Date
be extended unless each Lender which has not consented to the proposed extension has been either replaced or terminated as set forth above. So long as Lenders having Commitment(s) totaling not less
than 662/3% of the aggregate amount of the Commitment(s) shall have responded affirmatively to such a request, and such request is not withdrawn in accordance with the preceding
sentence, then, subject to receipt by the Administrative Agent of counterparts of an Extension Agreement in substantially the form of Exhibit E duly completed and signed by the Borrower and
each of the affirmatively responding Lenders, the Termination Date shall be extended, effective on such extension date, for a period of 364 days to the date stated in such Extension Agreement.

2.16Optional Prepayments.



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2.18Funding Losses.If the Borrower makes any payment of principal with respect to any Fixed Rate Loan
(pursuant to Article VI or VIII or otherwise) on any day other than the last day of the Interest Period applicable thereto, or if the Borrower fails to borrow any Fixed Rate Loans after notice
has been given to any Lender in accordance with Section 2.06(a), the Borrower shall reimburse each Lender within 15 days after demand for any resulting loss or expense incurred by it (or
by an existing or prospective participant in the related Loan), including (without limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss
of margin for the period after any such payment or failure to borrow, provided that such Lender shall have delivered to the Borrower a certificate as to the amount of such loss or expense, which
certificate shall be conclusive in the absence of manifest error.

2.19Computation of Interest and Fees.Interest based on the Reference Rate and all fees hereunder
shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All
other interest shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day).

2.20Withholding Tax Exemption.At least five Domestic Business Days prior to the first date on which
interest or fees are payable hereunder for the account of any Lender, each Lender that is not incorporated under the laws of the United States of America or a state thereof agrees that it will

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deliver to each of the Borrower and the Administrative Agent two duly completed copies of United States Internal Revenue Service Form W-8 ECI, certifying in either case that such
Lender is entitled to receive payments under this Agreement and the Notes without deduction or withholding of any United States federal income taxes.

Each
Lender which so delivers a Form W-8 ECI further undertakes to deliver to each of the Borrower and the Administrative Agent two additional copies of such form
(or a successor form) on or before the date that such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form so delivered by it, and such
amendments thereto or extensions or renewals thereof as may be reasonably requested by the Borrower or the Administrative Agent, in each case certifying that such Lender is entitled to receive
payments under this Agreement and the Notes without deduction or withholding of any United States federal income taxes, unless an event (including without limitation any change in treaty, law or
regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable or which would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender advises the Borrower and the Administrative Agent that it is not capable of receiving payments without any deduction or withholding of
United States federal income tax.

2.21[RESERVED.]

2.22Regulation D Compensation.Each Lender may require the Borrower to pay, contemporaneously
with each payment of interest on the Euro-Dollar Loans, additional interest on the related Euro-Dollar Loan of such Lender at a rate per annum determined by such Lender up to
but not exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus the Euro-Dollar Reserve Percentage over (ii) the
applicable London Interbank Offered Rate. Any Lender wishing to require payment of such additional interest (x) shall so notify the Borrower and the Agent, in which case such additional
interest on the Euro-Dollar Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three
Euro-Dollar Business Days after the giving of such notice and (y) shall notify the Borrower at least five Euro-Dollar Business Days prior to each date on which interest
is payable on the Euro-Dollar Loans of the amount then due it under this Section.

2.23Increased Commitments; Additional Lenders.



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ARTICLE III.

CONDITIONS

3.01Borrowings.The obligation of any Lender to make a Loan on the occasion of any Borrowing is
subject to the satisfaction of the following conditions:



Each
Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Borrowing as to the facts specified in clauses (b), (c) and (d) of this Section.

3.02Effectiveness.This Agreement shall become effective on the date that each of the following
conditions shall have been satisfied (or waived in accordance with Section 9.04):



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The
Administrative Agent shall promptly notify the Borrower, the Administrative Agent and each Lender of the effectiveness of this Agreement, and such notice shall be conclusive and
binding on all parties hereto.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

The
Borrower represents and warrants that:

4.01Corporate Existence and Power. The Borrower (a) is a corporation duly incorporated,
validly existing and in good standing under the laws of Delaware, (b) has all corporate powers and authority and all material governmental licenses (including, without limitation, any such
license issued by a Gaming Board), authorizations, consents and approvals required to own its property and assets and carry on its business as now conducted and (c) is duly qualified as a
foreign corporation and in good standing in each jurisdiction where the ownership, leasing and operation of its property or the conduct of its business requires such qualification.

4.02Corporate and Governmental Authorization; Contravention.The execution, delivery and performance
by the Borrower of this Agreement and the Notes are within the Borrower's corporate powers, have
been duly authorized by all necessary corporate action, require no action by or in respect of, or filing with, any Governmental Agency and do not contravene, or constitute a default under, any
provision of applicable law or regulation or of the certificate of incorporation or by-laws of the Borrower or of any agreement, judgment, injunction, order, decree or other instrument
binding upon the Borrower or result in the creation or imposition of any Lien on any asset of the Borrower or any of its Subsidiaries.

4.03Binding Effect.This Agreement constitutes a valid and binding agreement of the Borrower and the
Notes, when executed and delivered in accordance with this Agreement, will constitute valid and binding obligations of the Borrower, in each case enforceable in accordance with their respective terms.

4.04Financial Information.Since December 31, 1999, there has been no material adverse change
in the business, financial position, results of operations or prospects of the Borrower and its Consolidated Subsidiaries, considered as a whole.

4.05Litigation.Except as disclosed in the Borrower's form 10-K report for the year
ended December 31, 2000 or in its 10-Q reports for the quarter ended March 31, 2001, there is no action, suit or proceeding pending against, or to the knowledge of the
Borrower threatened against or affecting, the Borrower or any of its Subsidiaries before any court or arbitrator or any governmental body, agency or official in which there is a reasonable possibility
of an adverse decision which could materially adversely affect the business, consolidated financial position or consolidated results of operations of the Borrower and its Consolidated Subsidiaries or
which in any manner draws into question the validity or enforceability of this Agreement or the Notes. Without limiting the generality of the foregoing, with respect to those litigation matters
described above as reported in the Borrower's aforementioned form 10-K or 10-Q reports, (a) the disclosure contained therein was accurate as of the date of
thereof, and (b) since such date there has been no material adverse development.

4.06Compliance with ERISA.Each member of the ERISA Group has fulfilled its obligations under the
minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance in all material respects with the presently applicable provisions of ERISA and the
Internal Revenue Code with respect to each Plan. No member of the ERISA Group has

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(i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of any Plan, (ii) failed to make any contribution or payment to any
Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit Arrangement, which has resulted or could result in the imposition of a Lien or the
posting of a bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any liability under Title IV or ERISA other than a liability to the PBGC for premiums under
Section 4007 of ERISA.

4.07Taxes.The Borrower and its Significant Subsidiaries have filed all United States Federal income
tax returns and other material tax returns which are required to be filed by them and have paid or agreed to settlements of all taxes due pursuant to such returns or pursuant to any assessment
received by the Borrower or any Subsidiary, except for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been provided. The charges, accruals and reserves
on the books of the Borrower and its Significant Subsidiaries in respect of taxes or other governmental charges are, in the opinion of the Borrower, adequate.

4.08Significant Subsidiaries.Each of the Significant Subsidiaries (a) is duly formed, validly
existing and in good standing under the laws of its jurisdiction of formation, (b) has all corporate or other powers and authority and all material governmental licenses (including, without
limitation, any such license issued by a Gaming Board), authorizations, consents and approvals required to own its property and assets and carry on its business as now conducted and (c) is duly
qualified and in good standing in each jurisdiction where the ownership, leasing and operation of its property or the conduct of its business requires such qualification, and the failure to be so
qualified would have a material adverse effect on the Borrower and its Subsidiaries.

4.09Not an Investment Company.The Borrower is not an "investment company" within the meaning of the
Investment Company Act of 1940, as amended.

4.10Environmental Matters.The Borrower has reasonably concluded that Environmental Laws are unlikely
to have a material adverse effect on the business, financial position, results of operations or prospects of the Borrower and its Consolidated Subsidiaries, considered as a whole.

4.11Full Disclosure.All information heretofore furnished by the Borrower to the Agents or to any
Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby is, and all such information hereafter furnished by the Borrower to the Administrative Agent or any
Lender will be, taken as a whole, true and accurate in all material respects on the date as of which such information is stated or certified. The Borrower has disclosed to the Lenders in writing or by
means of its filings with the Securities and Exchange Commission any and all facts which materially and adversely affect or may affect (to the extent the Borrower can now reasonably foresee), the
business, operations or financial position of the Borrower and its Consolidated Subsidiaries, taken as a whole, or the ability of the Borrower to perform its obligations under this Agreement. With
respect to any projections or forecasts provided, such projections or forecasts represent, as of the date thereof, management's best estimates based on reasonable assumptions and all available
information, but are subject to the uncertainty inherent in all projections and forecasts.

4.12Solvency.As of the Effective Date, the Borrower and its Significant Subsidiaries are, on a
consolidated basis, Solvent.

4.13Gaming Laws.The Borrower and its Subsidiaries are in material compliance with all applicable
Gaming Laws.

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ARTICLE V.

COVENANTS

The Borrower agrees that, so long as any Lender has any Commitment hereunder or any amount payable under any Note remains unpaid:

5.01Information.The Borrower will deliver to the Administrative Agent (who shall promptly distribute
the same to the Lenders or advise the Lenders thereof):



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5.02Maintenance of Property; Insurance.



5.03Conduct of Business and Maintenance of Existence.The Borrower will continue, and will cause each
Significant Subsidiary to continue, to engage in business of the same general type conducted by the Borrower and its Significant Subsidiaries as of the Effective Date, and will preserve, renew and
keep in full force and effect, and will cause each Subsidiary to preserve, renew and keep in full force and effect their respective corporate existence and their respective rights, privileges and
franchises

21

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necessary or desirable in the normal conduct of business; provided that nothing in this Section 5.03 shall prohibit (i) the merger of a Subsidiary into the Borrower or the merger or the
consolidation of a Subsidiary with or into another Person if the corporation surviving such consolidation or merger is a Subsidiary and if, in each case, after giving effect thereto, no Default shall
have occurred and be continuing or (ii) the termination of the corporate existence of any Subsidiary if (A) the Borrower in good faith determines that such termination is in the best
interest of the Borrower and (B) such termination is not materially disadvantageous to the Lenders.

5.04Compliance with Laws.The Borrower will comply, and cause each Significant Subsidiary to comply,
in all material respects with all applicable laws, ordinances, rules, regulations, and requirements of any Governmental Agency (including, without limitation, Environmental Laws, Gaming Laws and ERISA
and, in each case, the rules and regulations thereunder) except where the necessity of compliance therewith is contested in good faith by appropriate proceedings.

5.05Inspection of Property, Books and Records.The Borrower will keep, and will cause each Significant
Subsidiary to keep, proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities; and will
permit, and will cause each Significant Subsidiary to permit, representatives of any Lender at such Lender's expense to visit and inspect any of their respective properties, to examine and make
abstracts from any of their respective books and records and to discuss their respective affairs, finances and accounts with their respective officers, employees and independent public accountants,
all at such reasonable times and as often as may reasonably be desired.

5.06Negative Pledge.None of the Borrower, any Covered Subsidiary or any Significant Subsidiary will
create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except:



22

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5.07Consolidations, Mergers and Sales of Assets.The Borrower and its Subsidiaries will not
(i) consolidate or merge with or into any other Person or (ii) sell, lease or otherwise transfer all or any substantial part of the assets of the Borrower and its Subsidiaries, taken as
a whole, to any other Person, or (iii) acquire all or substantially all of the assets of, or more than 49% of the capital stock or other equity securities of, any Person which is not engaged in
the same general lines of business as the Borrower and its Subsidiaries, if, giving effect to such consolidation, merger, sale or acquisition, the Borrower is not in pro forma compliance with the
covenants set forth in Sections 5.10 and 5.11; provided that, notwithstanding the foregoing, the Borrower may merge with another Person only if (A) the Borrower is the corporation surviving
such merger, and (B) immediately after giving effect to such merger, no Default shall have occurred and be continuing.

5.08Hostile Tender Offers.The Borrower and its Subsidiaries will not make any offer to purchase or
acquire, or prosecute, pursue or consummate a purchase or acquisition of, 5% or more of the capital
stock of any corporation or other business entity, if the board of directors or other equivalent governing body of such corporation or business entity has notified the Borrower or its relevant
Subsidiaries that it opposes such offer or purchase and such notice has not been withdrawn or superseded.

5.09Use of Proceeds.The proceeds of the Loans made under this Agreement will be used by the Borrower
for general corporate purposes, including but not limited to, the refinancing of obligations under the Existing Short Term Credit Agreement and transactional and other expenses associated herewith.
None of such proceeds will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any "margin stock" within the meaning of
Regulation U other than "margin stock" issued by the Borrower which is retired upon purchase or for any purpose which violates Section 5.08.

5.10Leverage Ratio.The Leverage Ratio will not, as of the last day of any fiscal quarter of the
Borrower described in the matrix below, exceed the ratio set forth opposite that fiscal quarter:

Fiscal Quarters Ending

Maximum RatioSeptember 30, 2001 and
December 31, 2001

4.75:1.00Later Fiscal Quarters

4.50:1.00


5.11Interest Coverage Ratio.The Interest Coverage Ratio shall not, as of the last day of any fiscal
quarter of the Borrower described in the matrix below, be less than the ratio set forth opposite that fiscal quarter:

Fiscal Quarters Ending

Minimum RatioSeptember 30, 2001 through and
including March 31, 2002

2.75:1.00Later Fiscal Quarters

3.00:1.00


23

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ARTICLE VI.        DEFAULTS

6.01Events of Default.If one or more of the following events ("Events of Default") shall have
occurred and be continuing:



24

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then,
and in every such event, the Administrative Agent shall (i) if requested by the Required Lenders, by notice to the Borrower terminate the Commitments and they shall thereupon terminate,
and (ii) if requested by the Required Lenders, by notice to the Borrower declare the Loans (together with accrued interest thereon) to be, and the Loans (together with accrued interest thereon)
shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower;providedthat in the case of any of
the Events of Default specified in clause (g) or (h) above with respect to the Borrower, without any notice to the Borrower or any
other act by the Administrative Agent or the Lenders, the Commitments shall thereupon terminate and the Loans (together with accrued interest thereon) shall become immediately due and payable without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

6.02Notice of Default.The Administrative Agent shall give notice to the Borrower under
Section 6.01(c) promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof.

ARTICLE VII.        THE AGENTS

7.01Appointment and Authorization.Each Lender irrevocably appoints and authorizes each Agent to take
such action as agent on its behalf and to exercise such powers under this Agreement and the Notes as are delegated to such Agent by the terms hereof or thereof, together with all such powers as are
reasonably incidental thereto.

7.02Agents and Affiliates.Bank of America and the other Agents shall each have the same rights and
powers under this Agreement as any other Lender and each may exercise or refrain from exercising the same as though it were not an Agent, and Bank of America and the other Agents and their respective
affiliates may accept deposits from, lend money to, and generally engage in any kind of business with, the Borrower or any Subsidiary or Affiliate of the Borrower as if they were not Agents hereunder.

25

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7.03Action by Agents.The obligations of the Agents hereunder are only those expressly set forth
herein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action with respect to any Default, except as expressly provided in
Article VI.

7.04Consultation with Experts.Each Agent may consult with legal counsel (who may be counsel for the
Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such
counsel, accountants or experts.

7.05Liability of Agent.Neither any Agent nor any of their respective affiliates nor any of the
respective directors, officers, agents or employees of any of the foregoing shall be liable for any action taken or not taken by it in connection herewith (i) with the consent or at the request
of the Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither any Agent nor any of their respective affiliates nor any of the respective directors,
officers, agents or employees of any of the foregoing shall be responsible for or have any duty to ascertain, inquire into or verify (i) any statement, warranty or representation made in
connection with this Agreement or any borrowing hereunder; (ii) the performance or observance of any of the covenants or agreements of the Borrower; (iii) the satisfaction of any
condition specified in Article III, except in the case of the Administrative Agent receipt of items required to be delivered to it; or (iv) the validity, effectiveness or genuineness of
this Agreement, the Notes or any other instrument or writing furnished in connection herewith. The Administrative Agent shall incur no liability by acting in reliance upon any notice, consent,
certificate, statement, or other writing (which may be a bank wire, telex, facsimile transmission or similar writing) believed by it to be genuine or to be signed by the proper party or parties.

7.06Indemnification.Each Lender shall, ratably in accordance with its Commitment, indemnify the
Administrative Agent, its affiliates and its directors, officers, agents and employees (to the extent not reimbursed by the Borrower) against any cost, expense (including counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees' gross negligence or willful misconduct) that such indemnitee may suffer or incur in connection
with the Administrative Agent's role under this Agreement or any related action taken or omitted by such indemnitee hereunder.

7.07Credit Decision.Each Lender acknowledges that it has, independently and without reliance upon the
Administrative Agent, the Lead Arranger and Sole Book Manager or any other Lender, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision
to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent, the Lead Arranger and Sole Book Manager or any other Lender,
and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking any action under this Agreement.

7.08Successor Agent.The Administrative Agent may resign at any time subject to the appointment of a
successor Agent by giving notice to the Lenders and the Borrower. Upon any such resignation, the Required Lenders shall have the right to appoint a successor Agent with the consent of the Borrower,
which consent shall not be unreasonably withheld or delayed; provided that no such consent shall be required if the successor Agent is a Lender. If no successor Agent shall have been so appointed, and
shall have accepted such appointment, within 30 days after the retiring Agent's "giving of notice of resignation, then the retiring Agent may, on behalf of the Lenders, and without the
Borrower's consent, appoint a successor Agent, which shall be a commercial bank organized or licensed under the laws of the United States of America or of any State thereof and having a combined
capital and surplus of at least $1,000,000,000. Upon the acceptance of its appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with
all the rights and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and

26

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obligations hereunder. After any retiring Agent's resignation hereunder as Agent, the provisions of this Article shall inure to its benefit as to any actions taken or omitted to be taken by it while
it was Agent.

7.09Agents' Fees.The Borrower shall pay to each Agent for its own account fees in the amounts and at
the times previously agreed upon between the Borrower and such Agent.

ARTICLE VIII.        CHANGE IN CIRCUMSTANCES

8.01Basis for Determining Interest Rate Inadequate or Unfair.If on or prior to the first day of any
Interest Period for any Fixed Rate Borrowing:



the
Administrative Agent shall forthwith give notice thereof to the Borrower and the Lenders, whereupon until the Administrative Agent notifies the Borrower that the circumstances giving rise to such
suspension no longer exist, the obligations of the Lenders to make Euro-Dollar Loans shall be suspended. Unless the Borrower notifies the Administrative Agent at least two Domestic
Business Days before the date of any Fixed Rate Borrowing for which a Notice of Borrowing has previously been given that it elects not to borrow on such date, such Fixed Rate Borrowing shall instead
be made as a Base Rate Borrowing. The Administrative Agent shall promptly notify the Lenders of any election by the Borrower pursuant to the preceding sentence.

8.02Illegality.If, on or after the date of this Agreement, the adoption of any applicable law, rule
or regulation, or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any Lender (or its Euro-Dollar Lending Office) with any request or directive (whether or not having the force of
law) of any such authority, central bank or comparable agency shall make it unlawful or impossible for any Lender (or its Euro-Dollar Lending Office) to make, maintain or fund its
Euro-Dollar Loans and such Lender shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Borrower, whereupon
until such Lender notifies the Borrower and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make
Euro-Dollar Loans shall be suspended. Before giving any notice to the Administrative Agent pursuant to this Section, such Lender shall designate a different Euro-Dollar Lending
Office if such designation will avoid the need for giving such notice and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender. If such Lender shall determine
that it may not lawfully continue to maintain and fund any of its outstanding Euro-Dollar Loans to maturity and shall so specify in such notice, the Borrower shall immediately prepay in
full the then outstanding principal amount of each such Euro-Dollar Loan, together with accrued interest thereon. Concurrently with prepaying each such Euro-Dollar Loan, the
Borrower shall borrow a Base Rate Loan in an equal principal amount from such Lender (on which interest and principal shall be payable contemporaneously with the related Euro-Dollar Loans
of the other Lenders), and such Lender shall make such a Base Rate Loan.

27

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8.03Increased Cost and Reduced Return.



28

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8.04Base Rate Loans Substituted for Affected Fixed Rate Loans.If (i) the obligation of any
Lender to make Euro-Dollar Loans has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded compensation under Section 8.03(a) and the Borrower shall,
by at least five Euro-Dollar Business Days, prior notice to such Lender through the Administrative Agent, have elected that the provisions of this Section shall apply to such Lender, then,
unless and until such Lender notifies the Borrower that the circumstances giving rise to such suspension or demand for compensation no longer exist:



ARTICLE IX.        MISCELLANEOUS

9.01Notices.All notices, requests and other communications to any party hereunder shall be in writing
(including bank wire, telex, telecopy or similar writing) and shall be given to such party: (x) in the case of the Borrower or the Administrative Agent, at its address or telex or telecopier
number set forth on the signature pages hereof, (y) in the case of any Lender, at its address or telex or telecopier number set forth in its Administrative Questionnaire or (z) in the
case of any party, such other address or telex or telecopier number as such party may hereafter specify for the purpose by notice to the
Administrative Agent and the Borrower. Each such notice, request or other communication shall be effective (i) if given by telex, when such telex is transmitted to the telex number specified in
this Section and the appropriate answer back is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed
as aforesaid or (iii) if given by any other means, when delivered or received at the address specified in this Section; provided that notices to the Administrative Agent under Article II
or Article VIII shall not be effective until received.

9.02No Waivers.No failure or delay by the Administrative Agent or any Lender in exercising any right,
power or privilege hereunder or under any Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

9.03Expenses; Documentary Taxes; Indemnification.



29

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9.04Amendments and Waivers.No amendment or waiver of the terms of this Agreement or the other Loan
Documents shall be made or be effective unless such amendment or waiver is in writing and is signed by the Borrower and the Required Lenders (and, if the rights or duties of the Administrative Agent
are affected thereby, by the Administrative Agent); provided that no such amendment or waiver shall, unless signed by all the Lenders, (i) increase or decrease the amount of the Commitment of
any Lender without the consent of that Lender (except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any additional obligation, (ii) reduce the principal of
or rate of interest on any Loan or interest thereon or any fees hereunder, (iii) postpone the date fixed for any payment of principal of or interest on any Loan or interest thereon or any fees
hereunder, or the Termination Date (except as contemplated by Section 2.15), (iv) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Notes, or
the percentage of Lenders, which shall be required for the Lenders or any of them to take any action under this Section or any other provision of this Agreement, or (v) render more restrictive
the ability of any Lender to assign or grant participations in its Commitment under Section 9.05.

9.05Successors and Assigns.



30

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31

---



32

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9.06Collateral.Each of the Lenders represents to each Agent and each of the other Lenders that it in
good faith is not relying upon any "margin stock" (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.

9.07California Law; Submission to Jurisdiction.This Agreement and each Note shall be construed in
accordance with and governed by the laws of the State of California. The Borrower hereby submits to the nonexclusive jurisdiction of the United States District Court for the Central District of
California and of any California State court sitting in Los Angeles, California for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated
hereby. The Borrower irrevocably, waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a
court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

9.08Counterparts; Integration.This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement constitutes the entire agreement and understanding among the
parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

9.09Several Obligations.The obligations of the Lenders hereunder are several. Neither the failure of
any Lender to carry out its obligations hereunder nor the failure of this Agreement to be duly authorized, executed and delivered by any Lender shall relieve any other Lender of its obligations
hereunder (or affect the rights hereunder of such other Lender). No Lender shall be responsible for the obligations of, or any action taken or omitted by, any other Lender hereunder.

9.10Sharing of Set-Offs.Each Lender agrees that if it shall, by exercising any right of
set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and interest due with respect to any Note held by it which is greater than the
proportion received by any other Lender in respect of the aggregate amount of principal and interest due with respect to any Note
held by such other Lender, the Lender receiving such proportionately greater payment shall purchase such participations in the Notes held by the other Lenders, and such other adjustments shall be
made, as may be required so that all such payments of principal and interest with respect to the Notes held by the Lenders shall be shared by the Lenders pro rata;providedthat nothing in this Section
shall impair the right of any Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject to
such exercise to the payment of indebtedness of the Borrower other than its indebtedness under the Notes. The Borrower agrees, to the fullest extent it may effectively do so under applicable law, that
any holder of a participation in a Note, whether or not acquired pursuant to the foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with respect to

33

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such participation as fully as if such holder of a participation were a direct creditor of the Borrower in the amount of such participation.

9.11WAIVER OF JURY TRIAL.EACH OF THE BORROWER, THE AGENTS AND THE BANKS HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

9.12Confidentiality.The Lenders hereby agree to hold any confidential information that they may
receive from Borrower or its Subsidiaries pursuant to this Agreement in confidence, except for disclosure: (a) to their respective Affiliates and to other parties to this Agreement;
(b) to legal counsel and accountants for any such party; (c) to other professional advisors to any such party, provided that the recipient has accepted such information subject to a
confidentiality agreement substantially similar to this paragraph or has notified such professional advisors of the confidentiality of such information; (d) to regulatory officials having
jurisdiction over that Lender; (e) to any Gaming Board; (f) as required by law or legal process (provided that the Lender shall endeavor, to the extent it may do so under applicable law,
to give the Borrower reasonable prior notice thereof to allow the Borrower to seek a protective order) or in connection with any legal proceeding to which that Lender and the Borrower are adverse
parties; and (g) to another financial institution in connection with a disposition or proposed disposition to that financial institution of all or part of that Lender's interests hereunder or a
participation interest in its Note, provided that the recipient has accepted such information subject to a confidentiality agreement substantially similar to this Section. For purposes of the
foregoing, "confidential information" shall mean any information respecting the Borrower or its Subsidiaries reasonably considered by them to be confidential, other than (i) information
previously filed with any governmental agency and available to the public, (ii) information previously published in any public medium from a source other than, directly or indirectly, that
Lender, and (iii) information previously disclosed by the Borrower or its Subsidiaries to any person not associated therewith without a confidentiality agreement substantially similar to this
Section. Nothing in this Section shall be construed to create or give rise to any fiduciary duty on the part of any Lender.

34

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

| |  | PARK PLACE ENTERTAINMENT CORPORATION          
| |  | ----------------------------------------------
| |  | By:                                           
| |  |                                               
| |  |                                               
| |  | BANK OF AMERICA, N.A., as Administrative Agent
| |  | By:                                           
| |  |                                               

35

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| |  | BANK OF AMERICA, N.A., as a Lender
| |  | ----------------------------------
| |  | By:                               
| |  |                                   
| |  |                                   
| |  | BANKERS TRUST COMPANY             
| |  | By:                               
| |  |                                   
| |  | THE BANK OF NOVA SCOTIA           
| |  | By:                               
| |  |                                   

36

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| |  | THE BANK OF NEW YORK                                                                                                                                                                            
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                             
| |  |                                                                                                                                                                                                 
| |  | CREDIT SUISSE FIRST BOSTON                                                                                                                                                                      
| |  | By:                                                                                                                                                                                             
| |  | Title:                                                                                                                                                                                          
| |  | Address for notices:                                                                                                                                                                            
| |  | Credit Suisse First Boston
Eleven Madison Avenue
New York, NY 10010
Attn: William O'Daly
Facsimile: (212) 743-2254
Telephone: (212) 325-1986                                                    
| |  | FIRST UNION NATIONAL BANK                                                                                                                                                                       
| |  | By:                                                                                                                                                                                             
| |  | Title:                                                                                                                                                                                          
| |  | Address for notices:                                                                                                                                                                            
| |  | First Union National Bank
301 South College Street, 5th Floor
Charlotte, North Carolina 28288-0169
Attn.: John Reid, Vice President
Facsimile: (704) 383-7611
Telephone: (704) 383-1385         
| |  | With a copy to:                                                                                                                                                                                 
| |  | First Union National Bank
301 South College Street, 5th Floor
Charlotte, North Carolina 28288-0760
Attn.: Mark Felker, Senior Vice President
Facsimile: (704) 383-7611
Telephone: (704) 374-7074

37

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| |  | SOCIÉTÉ GÉNÉRALE                                                                                                                                                                                      
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                                   
| |  | Title:                                                                                                                                                                                                
| |  | Address for notices:                                                                                                                                                                                  
| |  | Société Générale
Four Embarcadero Center, Suite 1200
San Francisco, California 94111
Attn.: Mary Brickley
Facsimile: 415 989 9922
Telephone: 415 646 7328                                             
| |  | COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES                                                                                                                                                    
| |  | By:                                                                                                                                                                                                   
| |  | Title:                                                                                                                                                                                                
| |  | By:                                                                                                                                                                                                   
| |  | Title:                                                                                                                                                                                                
| |  | Address for notices:                                                                                                                                                                                  
| |  | Commerzbank AGLos Angeles Branch
633 West Fifth Street
Los Angeles, California 90071
Attn.: Werner Schmidbauer
Facsimile: (213) 623-0039
Telephone: (213) 683-5413                                   
| |  | WELLS FARGO BANK, NATIONAL ASSOCIATION                                                                                                                                                                
| |  | By:                                                                                                                                                                                                   
| |  | Title:                                                                                                                                                                                                
| |  | Address for notices:                                                                                                                                                                                  
| |  | Wells Fargo Bank, National Association
201 Third Street, 8th Floor
San Francisco, California 94103
Attn.: Belle B. Gardia, SpecialistSyndications
Facsimile: (415) 512-9408
Telephone: (415) 477-5471

38

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| |  | FLEET NATIONAL BANK                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                
| |  | Title:                                                                                                                                                                             
| |  | Address for notices:                                                                                                                                                               
| |  | Fleet National Bank
3670 Route 9 South
2nd Floor, NJ EH 47302E
Freehold, New Jersey 07747
Attn.: John T. Harrison
Facsimile: (732) 780-0754
Telephone: (732) 294-4282              
| |  | DRESDNER BANK AG, NEW YORK AND GRAND CAYMAN BRANCHES                                                                                                                               
| |  | By:                                                                                                                                                                                
| |  | Title:                                                                                                                                                                             
| |  | By:                                                                                                                                                                                
| |  | Title:                                                                                                                                                                             
| |  | Address for Notices:
Dresdner Bank AG, New York and Grand Cayman Branches
75 Wall Street
Attn: Michael Leffler
Facsimile: (212) 429-2524
Telephone: (212) 429-2242                 
| |  | THE FUJI BANK, LIMITED
a member of Mizuho Financial Group as co-agent                                                                                                              
| |  | By:                                                                                                                                                                                
| |  | Title:                                                                                                                                                                             
| |  | Address for notices:                                                                                                                                                               
| |  | The Fuji Bank, Limited, Los Angeles Agency
333 South Hope Street, 39th Floor
Los Angeles, California 90071
Attn.: Michael Kanda
Facsimile: (213) 253-4175
Telephone: (213) 253-4184

39

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| |  | THE INDUSTRIAL BANK OF JAPAN, LIMITED
a member of Mizuho Financial Group as co-agent                                                                                                   
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                    
| |  | Title:                                                                                                                                                                                 
| |  | Address for notices:                                                                                                                                                                   
| |  | Loan Administration Issues:
The Industrial Bank of Japan, Limited
New York Branch
Credit Administration Department
1251 Avenue of the Americas, 31st Floor
New York, NY 10020-1104     
| |  | Attention: Umesh Patel & Charmaine Tenn Sing Que
Telephone: (212) 282-4093 & (212) 282-4094
Fax No.: (212) 282-4480 or 4481                                                            
| |  | Legal, Financial Reporting and Credit Issues:                                                                                                                                          
| |  | IBJ Los Angeles Agency
350 S. Grand Avenue, Suite 1500
Los Angeles, CA 90017
Attention: Steven Savoldelli, Vice President and Manager
Telephone: (213) 893-6421
Fax No.: (213) 488-9840
| |  | FIRST TENNESSEE BANK NATIONAL ASSOCIATION                                                                                                                                              
| |  | By:                                                                                                                                                                                    
| |  | Title:                                                                                                                                                                                 
| |  | Address for notices:                                                                                                                                                                   
| |  | First Tennessee Bank National Association
165 Madison Avenue, 9th Floor
Memphis, Tennessee 38103-2723
Attn.: Jim Moore
Facsimile: (901) 523-4267
Telephone: (901) 523-4108             

40

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| |  | THE MITSUBISHI TRUST AND BANKING CORPORATION                                                                                                                                         
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                  
| |  | Title:                                                                                                                                                                               
| |  | Address for notices:                                                                                                                                                                 
| |  | The Mitsubishi Trust and Banking Corporation
520 Madison Avenue, 26th Floor
New York, New York 10022
Attn.: Dan Chang
Facsimile: (212) 755-2349 or 486-0970
Telephone: (212) 891-8218
| |  | ERSTE BANK, DER OESTERREICHISCHEN SPARKASSEN AG, NEW YORK BRANCH                                                                                                                     
| |  | By:                                                                                                                                                                                  
| |  | Title:                                                                                                                                                                               
| |  | By:                                                                                                                                                                                  
| |  | Title:                                                                                                                                                                               
| |  | Address for notices:                                                                                                                                                                 
| |  | Erste Bank, New York
280 Park Avenue, West Building, 32nd Floor
New York, New York 10017
Attn.: Jean Ramjoot
Facsimile: (212) 984-5626
Telephone: (212) 984-5654                     

41

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| |  | KBC BANK, N.V.                                                                                                                                                          
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                     
| |  | Title:                                                                                                                                                                  
| |  | By:                                                                                                                                                                     
| |  | Title:                                                                                                                                                                  
| |  | Address for notices:                                                                                                                                                    
| |  | KBC Bank, N.V.
125 West 55th Street, 10th Floor
New York, New York 10019
Attn.:
Facsimile: (212) 956-5580
Telephone: (212)                                              
| |  | U.S. BANK NATIONAL ASSOCIATION                                                                                                                                          
| |  | By:                                                                                                                                                                     
| |  | Title:                                                                                                                                                                  
| |  | Address for notices:                                                                                                                                                    
| |  | U.S. Bank National Association
555 S.W. Oak Street, PL-4
Portland, Oregon 97204
Attn.: Dale Parshall, Vice President
Facsimile: (503) 275-5428
Telephone: (503) 275-3476
| |  | THE PEOPLES BANK, BILOXI, MISSISSIPPI                                                                                                                                   
| |  | By:                                                                                                                                                                     
| |  | Title:                                                                                                                                                                  
| |  | Address for notices:                                                                                                                                                    
| |  | The Peoples Bank, Biloxi, Mississippi
152 Lameuse Street
Biloxi, Mississippi 39530
Attn.: Chevis Swetman
Facsimile: (228) 435-8417
Telephone: (228) 435-8205            

42

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| |  | TRUSTMARK NATIONAL BANK                                                                                                                                                                    
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | By:                                                                                                                                                                                        
| |  | Title:                                                                                                                                                                                     
| |  | Address for notices:                                                                                                                                                                       
| |  | Trustmark National Bank
248 East Capitol Street
Jackson, Mississippi 39201
Attn.: Craig E. Sosebee
Facsimile: (601) 354-5030
Telephone: (601) 354-5939                                     
| |  | HUA NAN COMMERCIAL BANK, LTD.                                                                                                                                                              
| |  | By:                                                                                                                                                                                        
| |  | Title:                                                                                                                                                                                     
| |  | Address for notices:                                                                                                                                                                       
| |  | Hua Nan Commercial Bank, Ltd.
707 Wilshire Boulevard, Suite 3100
Los Angeles, California 90017
Attn.: Kemp Chen, Vice President
Facsimile: (213) 362-6617
Telephone: (213) 362-6666        
| |  | THE TOKAI BANK, LIMITEDNEW YORK BRANCH                                                                                                                                                    
| |  | By:                                                                                                                                                                                        
| |  | Title:                                                                                                                                                                                     
| |  | Address for Notices:
The Tokai Bank, LimitedNew York Branch
55 E. 52nd Street
New York, New York 10055
Attn: Sam Rosen, Vice President
Facsimile: (212) 832-1428
Telephone: (212) 339-1162

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Schedule 1Pricing ScheduleShort Term Credit Facility

This Schedule 1 is attached to and made a part of the Short Term Credit Agreement dated as of August 23, 2001 among Park Place Entertainment
Corporation, a Delaware corporation, the Lenders, Bank of America, N.A., as Administrative Agent, and Banc of America Securities, LLC as Lead Arranger and Sole Book Manager (the "Credit Agreement").
Capitalized terms used in this Schedule 1 are used with the meanings set forth for those terms in the Credit Agreement.

The
"Euro-Dollar Margin," "Base Rate Margin," and "Facility Fee Rate" referred to in the Credit Agreement shall be determined for any day on the basis of the Status (as
defined below) of the Borrower as of that date, provided, that in the event that the Borrower fails to deliver any Compliance Certificate or Pricing Certificate on the date when required by
Section 5.01, and it is ultimately determined that the Status of the Borrower would have been changed on the basis of such delivery, then (a) the rate at which interest and facility fees
accrue under the Credit Agreement shall be increased in accordance with this Schedule, with retroactive effect to the first day of the Pricing Period to which such Compliance Certificate relates, and
(b) the Borrower shall, within 10 Business Days of a request by the Administrative Agent, make such additional payments to the Lenders through the Administrative Agent as are required to give
effect to such increased interest rates and facility fees in respect of any payments previously made by the Borrower. As of each date of determination, the Euro-Dollar Margin and Facility
Fee Rates shall equal the percentages set forth below under the column corresponding to the Status that exists on such day, provided that the Euro-Dollar Margin shall be increased or
decreased by the "Margin Adjustment" described below:

|Status             |  | Level
I |   | Level
II |   | Level
III |   | Level
IV |   | Level
V |   | Level
VI |  
|------------------ |  | ------- | - | -------- | - | --------- | - | -------- | - | ------- | - | -------- | -
|Facility Fee Rate  |  | 0.080   | % | 0.100    | % | 0.125     | % | 0.150    | % | 0.200   | % | 0.250    | %
|Euro-Dollar Margin |  | 0.520   | % | 0.650    | % | 0.875     | % | 0.975    | % | 1.175   | % | 1.500    | %

The
"Base Rate Margin" shall, as of each date of determination, be the percentage, not less than 0.000% per annum, which is equal to the then prevailing Euro-Dollar Margin
(after adjustment upwards or downwards by the Margin Adjustment), minus 1.250%.

As
of each date of determination, the Status of the Borrower shall be determined on the basis of:



whichever
such criteria yields the more favorable pricing to the Borrower according to the following standards:



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For
purposes of this Schedule, the following terms have the following meanings, subject to the final two paragraphs of this Schedule:

"Margin
Adjustment" means, (a) as of any date of determination when the Applicable Leverage Ratio is in excess of 3.50:1 but equal to or less than 4.00:1, an incremental
interest margin of 0.075% per annum to be added to the Euro-Dollar Margin in determining the rate applicable to Euro Dollar Loans,
(b) as of any date of determination when the Applicable Leverage Ratio is in excess of 4.00:1 but equal to or less than 4.75:1, an incremental interest margin of 0.150% per annum to be added to
the Euro-Dollar Margin in determining the rate applicable to Euro-Dollar Loans, (c) as of any date of determination when the Applicable Leverage Ratio is in excess of
4.75:1, an incremental interest margin of 0.225% per annum to be added to the Euro-Dollar Margin in determining the rate applicable to Euro-Dollar Loans, and (d) as of
any date of determination when the Applicable Leverage Ratio is less than 2.00:1, a deduction of 0.075% per annum to be subtracted from the Euro-Dollar Margin in determining the rate
applicable to Euro-Dollar Loans.

"Debt
Rating" means, as of any date of determination, the rating assigned by the Rating Agencies to the senior unsecured long-term debt securities of the Borrower without
third-party credit enhancement (and any rating assigned to any other debt security of the Borrower shall be disregarded) as of the close of business on such date, provided that (a) if such
securities receive a split-rating and the rating differential is one level, the higher of the two ratings will apply (e.g. A-/Baa1 results in Level I Status), and (b) if the
Borrower is split-rated and the ratings differential is more than one level, the average of the two ratings (or the higher of any two intermediate ratings) shall be used (e.g. A-/Baa2
results in Level II Status, as does A-/Baa3).

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