EX-10.60



 Exhibit 10.60 

Execution Version 
 SECOND
AMENDMENT TO THE 
 THIRD AMENDED AND RESTATED SHAREHOLDERS AGREEMENT AND 

CONVERSION AGREEMENT 
 This SECOND
AMENDMENT TO THE THIRD AMENDED AND RESTATED SHAREHOLDERS AGREEMENT AND THE CONVERSION AGREEMENT (collectively, this “Amendment”), dated as of January 17, 2014, is by and among (i) Asian Coast Development (Canada) Ltd., a
British Columbia corporation (the “Company”), (ii) Harbinger II S.à r.l., Blue Line ACDL, Inc., Breakaway ACDL, Inc., Credit Distressed Blue Line Master Fund, Ltd., Global Opportunities Breakaway Ltd., Harbinger China
Dragon Intermediate Fund, L.P., Harbinger Capital Partners Master Fund I, Ltd. (as applicable) and Harbinger Capital Partners Special Situations Fund, L.P. (as applicable), (iii) PNK Development 18, LLC, a Delaware limited liability
company and a subsidiary of Pinnacle Entertainment, Inc., a Delaware corporation (such subsidiary, “Pinnacle”) and (iv) PNK Development 31, LLC, a Delaware limited liability company and a subsidiary of Pinnacle
Entertainment, Inc., and is being entered into in order to amend (a) the Third Amended and Restated Shareholders Agreement dated as of May 24, 2013 (the “Shareholders Agreement”), as amended on November 21, 2013,
by and among the parties and (b) the Conversion Agreement (as herein below defined). 
 WHEREAS: 

 

	A.	The Company, Harbinger II S.à r.l. and Global Opportunities Breakaway Ltd. entered into a Convertible Loan Agreement dated as of January 17, 2014 (the “January 2014 Loan Agreement”); and


  

	B.	The parties wish to amend the Shareholders Agreement and the Conversion Agreement to, inter alia, provide Pinnacle with lookback protection with respect to the January 2014 Loan Agreement. 


NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows: 
  

	1.	Definitions. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Shareholders Agreement. 


 

	2.	Amendments to the Shareholders Agreement. 

  

	(a)	Section 6.1(a)(vi) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“(vi) issue or sell any capital stock of any class or series or any other securities of the Company, or issue or grant any warrants,
rights or options, or securities that are exchangeable for, or convertible into, shares of the Company’s capital stock, except for security issuances resulting from rights granted as of the date hereof or contemplated herein (including without
limitation, (A) the grant or exercise of (1) the Pinnacle Option, (2) the Backstop Warrants, (3) the May 2013 Warrants, (4) the Alternate May 2013 Warrants, (5) the November 2013 Warrants, (6) the Alternate
November 2013 Warrants, (7) the January 2014 Warrants, (8) the Alternate January 2014 Warrants or (9) the Pinnacle Backstop Warrants or Alternate Backstop Warrants, (B) top-up issuances pursuant to the 2011 Harbinger Subscription
Agreement or the Pinnacle Subscription Agreement, (C) the issuance, sale, grant, exercise, conversion or exchange of securities pursuant to any Future Funding or Replacement Funding, (D) the exercise of options or warrants 







 outstanding as of the date hereof or (E) the conversion of convertible securities
outstanding as of the date hereof);” 
  

	(b)	Section 6.4(e) (Zero Consideration Issuance Protection Rights) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“(e) Zero Consideration Issuance Protection Rights. Harbinger, on behalf of itself and its Entity Affiliates, agrees that any
Harbinger Zero Consideration Rights shall terminate and be of no further force or effect upon (i) the consummation of a Qualified IPO, unless and to the extent that Harbinger and Pinnacle mutually agree in writing that such rights should not be
terminated upon the consummation thereof, or (ii) the conversion of all Series V Preferred Shares and Class VI Preferred Shares in a Qualifying Conversion. Harbinger, on behalf of itself and its Entity Affiliates, further agrees that
(i) neither the issuance nor exercise of the Pinnacle Option, any Pinnacle Backstop Warrant, any Additional Backstop Warrant, any Alternate Backstop Warrant, any May 2013 Warrant, any Alternate May 2013 Warrant, any November 2013 Warrant, any
Alternate November 2013 Warrant, any January 2014 Warrant or any Alternate January 2014 Warrant is a zero consideration issuance and (ii) neither such issuance or such exercise shall give rise to any anti-dilution adjustment, zero consideration
adjustment or other similar anti-dilution or zero consideration equity adjustment or equity issuance rights in favor of Harbinger or any of its Entity Affiliates.” 
  

	(c)	Section 6.7 (Related Provisions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“(a) In case the Company shall propose (i) to pay any dividend, make any interest payment or other payment or distribution in respect
of any Backstop Advances, Additional Backstop Warrants, May 2013 Advances, May 2013 Warrants, November 2013 Advances, November 2013 Warrants, January 2014 Advances, January 2014 Warrants, Common Shares or Class VII Non-Voting Shares, in cash or in
any form other than additional Securities (excluding interest accruals contemplated by the Backstop Loan Agreement, the May 2013 Loan Agreement, the November 2013 Loan Agreement and the January 2014 Loan Agreement), (ii) any repurchase,
retirement, redemption, refinancing, exchange, conversion or other similar action with respect to any Backstop Advances, Additional Backstop Warrants, May 2013 Advances, May 2013 Warrants, November 2013 Advances, November 2013 Warrants, January 2014
Advances, January 2014 Warrants, Common Shares or Class VII Non-Voting Shares, (iii) to effect any reclassification or capital reorganization, (iv) to effect any consolidation, merger or sale, organic change, transfer or other disposition
of all or substantially all of its property, assets or business, or (v) to effect the liquidation, dissolution or winding up of the Company, then in each such case, at least twenty (20) Business Days before such action, the Company shall
deliver to Pinnacle a written notice of such proposed action, which shall specify the date on which a record is to be taken for the purposes of such dividend, interest or other payment or distribution or rights, or the date on which such repurchase,
retirement, redemption, exchange, conversion or other similar action, refinancing, reclassification, reorganization, consolidation, merger, sale, organic change, transfer, disposition, liquidation, dissolution, or winding up is to take place and the
date of participation therein by the holders of any Backstop Advances, Additional Backstop Warrants, May 2013 Advances, May 2013 Warrants, November 2013 Advances, November 2013 Warrants, January 2014 Advances, January 2014 Warrants, Common Shares or
Class VII Non-Voting Shares, if any such date is to be fixed, and shall also set forth such facts with respect thereto as shall be reasonably necessary to indicate the effect of such action on any Backstop Advances, Additional Backstop Warrants, May
2013 Advances, May 2013 Warrants, November 2013 Advances, November 2013 Warrants, January 2014 Advances, January 2014 Warrants, Common Shares or Class VII Non-Voting Shares. 

(b) In case Harbinger or its Entity Affiliates shall propose to sell, transfer or otherwise dispose of all or a portion of its Backstop
Advances, Additional Backstop Warrants, May 2013 Advances, May 2013 Warrants, November 2013 Advances, November 2013 Warrants, January 2014 Advances or January 2014 Warrants, then in each such case, at least twenty-five (25) Business Days before
such action, Harbinger shall deliver to Pinnacle a written notice of such proposed action. This twenty-five (25) Business Day 

  
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 notice period shall run concurrently with the time periods set forth in the various Transfer
related provisions set forth in Article 3. 
 (c) The Company shall take all such action as may reasonably be required to give
effect to any assignment undertaken in accordance with this Section 6.7, the Backstop Loan Agreement, the relevant Additional Backstop Warrants, the May 2013 Loan Agreement, the relevant May 2013 Warrants, the November 2013 Loan
Agreement, the relevant November 2013 Warrants, the January 2014 Loan Agreement and the relevant January 2014 Warrants. 
 (d) For purposes
of clarity, Pinnacle’s right to acquire Backstop Assets, May 2013 Assets, November 2013 Assets and January 2014 Assets from Harbinger and its Entity Affiliates shall be governed by Section 6.5, Section 6.6,
Section 6.7, Section 6.8 (in the case of Backstop Assets), Section 6.11 and Section 6.12, and not Section 6.2 of this Agreement.” 

 

	(d)	The following section is added to Article 6 (Consent Rights and Additional Covenants) of the Shareholders Agreement as the new section 6.12 (January 2014 Loan Agreement Lookback Protection):


 “Section 6.12 January 2014 Loan Agreement Lookback Protection 

(a) During the January 2014 Lookback Period, Pinnacle (together with its Entity Affiliates) shall have the right to require each January 2014
Subscriber to assign to Pinnacle up to the January 2014 Proportionate Amount of all January 2014 Advances made by, or for and on behalf of, such January 2014 Subscriber as calculated below: 

(i) up to but not including the First January 2014 Anniversary, Pinnacle (together with its Entity Affiliates) shall have
the right, by delivering written notice to the Harbinger Agent, to require each January 2014 Subscriber to assign to Pinnacle up to the January 2014 Proportionate Amount of all January 2014 Advances made by, or for and on behalf of, such January
2014 Subscriber; and 
 (ii) from the First January 2014 Anniversary up to and including the Third January 2014 Anniversary,
Pinnacle (together with its Entity Affiliates) shall have the right, by delivering written notice to the Harbinger Agent, to require each January 2014 Subscriber to assign to Pinnacle up to the Sliding Proportionate January 2014 Amount of all
January 2014 Advances made by, or for and on behalf of, such January 2014 Subscriber. For purposes of this subsection, the “Sliding Proportionate January 2014 Amount” means an amount determined by multiplying (A) the January
2014 Proportionate Amount by (B) the quotient obtained by dividing (1) the total number of days between (and including) (x) the date of exercise of Pinnacle’s right to purchase the Sliding Proportionate January 2014 Amount and
(y) the Third January 2014 Anniversary, by (2) seven hundred and thirty (730). Such adjustment to the January 2014 Proportionate Amount in arriving at the Sliding Proportionate January 2014 Amount shall be referred to as the
“Sliding January 2014 Adjustment”. 
 (b) Solely for purposes of this Section 6.12: 

(i) the “January 2014 Proportionate Amount” applicable to an assignment to Pinnacle and its Entity Affiliates
pursuant to this Section 6.12 of a portion of all January 2014 Advances made by, or for and on behalf of, a January 2014 Subscriber shall equal: 
  

	 	(A)	twenty-seven percent (27%), multiplied by  

  

	 	(B)	the amount of all such January 2014 Advances, net of any repayments or prepayments thereon. 


  
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 (c) In the event of a sale, transfer or other disposition by a January 2014 Subscriber of all or
any portion the January 2014 Advances, the January 2014 Warrants or all or any portion of its commitment under the January 2014 Loan Agreement to make a January 2014 Advance (the January 2014 Advances, the January 2014 Warrants, such commitment
under the January 2014 Loan Agreement to make a January 2014 Advance and any January 2014 PIK Securities are each referred to herein as a “January 2014 Asset” and, collectively, as the “January 2014 Assets”) to an
unaffiliated third party which would cause such January 2014 Subscriber to hold less than twenty-seven percent (27%) of its original interest in any January 2014 Asset (the “Minimum January 2014 Retained Original Interest”),
such transferee shall, as a condition to the completion of such sale, transfer or other disposition, assume the obligations of such January 2014 Subscriber hereunder, provided, however, only in respect of such portion of the percentage
of the January 2014 Asset so acquired by the transferee as relates to the shortfall in such January 2014 Subscriber’s Minimum January 2014 Retained Original Interest; provided, however that in the event of a sale, transfer or
other disposition by a January 2014 Subscriber of all or any portion a January 2014 Asset to Harbinger or any of its Entity Affiliates, such transferee shall, as a condition to the completion of such sale, transfer or other disposition, assume the
obligations of a January 2014 Subscriber hereunder related to the percentage of the January 2014 Asset so acquired; provided, further that the required assumption of the obligations of a January 2014 Subscriber under this
Section 6.12(c) shall not apply in the case of a sale, transfer or other disposition by a January 2014 Subscriber to Pinnacle or its Entity Affiliates. An assumption of the obligations by a transferee as set forth in and required by this
Section 6.12(c) shall be in writing in a form reasonably satisfactory to Pinnacle. For the avoidance of doubt, the obligation of a transferor to ensure that a transferee of a January 2014 Asset becomes subject to this
Section 6.12(c) and assumes the obligations hereunder relating to such January 2014 Asset shall apply to successive sales, transfers and other dispositions of such January 2014 Asset and to subsequent transferors and transferees thereof,
except in the case of a transfer to Pinnacle or its Entity Affiliates. 
 (d) The purchase price payable by Pinnacle (or its Entity
Affiliates purchasing a part of a January 2014 Advance) to a January 2014 Subscriber for an assignment of a part of a January 2014 Advance under this Section 6.12 shall be an amount equal to one hundred percent (100%) of the
original principal amount of the portion of such January 2014 Advance being assigned, net of any repayments or prepayments received by such January 2014 Subscriber as of immediately prior to the effective time of such assignment to Pinnacle or its
Entity Affiliates. Such assignment shall exclude any and all accrued but unpaid interest on the original principal amount of such January 2014 Advance so assigned up to (but not including) the date of such assignment, which excluded interest shall
continue to be payable by the Company to that January 2014 Subscriber. 
 (e) The parties shall consummate such assignment (including the
assignments of January 2014 Warrants contemplated by Section 6.12(f) and of January 2014 PIK Securities contemplated by Section 6.12(g)) by a January 2014 Subscriber to Pinnacle on a Business Day within fifteen
(15) Business Days of the giving of such written notice of exercise by Pinnacle to the Harbinger Agent. The assigning January 2014 Subscriber or Pinnacle shall deliver to the Company the fully executed document(s) pursuant to which such
assignment was effected, together with all information reasonably required by the Company to determine the appropriate future payments to be made by the Company to the assigning January 2014 Subscriber and Pinnacle in respect of such January 2014
Advance. 
 (f) The right of Pinnacle (together with its Entity Affiliates) to require an assignment from each January 2014 Subscriber of a
part of all January 2014 Advances made by, or for and on behalf of, such January 2014 Subscriber pursuant to this Section 6.12 shall include the right of Pinnacle to acquire from each January 2014 Subscriber on the date of such
assignment, at no additional cost to Pinnacle, subject to compliance with Applicable Laws, the January 2014 Warrants issued to such January 2014 Subscriber covering the number of Common Shares equal to: 

 

	 	(i)	(A) the number of Common Shares covered by such January 2014 Warrant, in the aggregate, originally issued to such January 2014 Subscriber (as such number of Common Shares may be adjusted pursuant to the terms of such
January 2014 Warrant), multiplied by  


  
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	 	(B)	twenty-seven percent (27%); 

 (ii) multiplied by (1) the portion of the
January 2014 Advance(s) acquired by Pinnacle (and/or its Entity Affiliates) from such January 2014 Subscriber, divided by (2) the maximum portion of the January 2014 Advances that Pinnacle (and its Entity Affiliates) are entitled to
acquire from such January 2014 Subscriber pursuant to Section 6.12(a) as of the date of such assignment (and for the avoidance of doubt, Pinnacle and its Entity Affiliates shall remain entitled to acquire such January 2014 Warrants covering
their full entitlement of Common Shares notwithstanding any repayment or prepayment of the associated January 2014 Advance); 
 (iii)
multiplied by the Sliding January 2014 Adjustment, if and as applicable; 
 provided, however, that, such January
2014 Warrants shall be assigned to Pinnacle and/or its Entity Affiliates notwithstanding that such assigned January 2014 Warrants have been exercised by the relevant January 2014 Subscriber in part prior to such assignment, and Pinnacle and/or its
Entity Affiliates shall have the benefit of all remaining rights of such assigned January 2014 `Warrants. 
 For the avoidance of doubt, any
sales, transfers or other dispositions by Harbinger of any January 2014 Advances or January 2014 Warrants to any Persons other than Pinnacle and its Entity Affiliates shall not reduce the amount of January 2014 Warrants that Pinnacle or its Entity
Affiliates are entitled to acquire pursuant to this Section 6.12(f). 
 (g) The right of Pinnacle (together with its Entity
Affiliates) to purchase a part of a January 2014 Advance together with a portion of the January 2014 Warrants under this Section 6.12 shall include the right of Pinnacle (together with its Entity Affiliates) to acquire from Harbinger and
its Entity Affiliates, at the time of its purchase of a portion of such January 2014 Advance and associated January 2014 Warrants, at a purchase price and on the timing set forth below, all Securities (other than the January 2014 Warrants
themselves, which shall be included in the assignment of such January 2014 Advance and other than Common Shares issued upon exercise of the January 2014 Warrants not in contravention of the terms of this Agreement) received by, or accrued in favour
of, Harbinger and its Entity Affiliates in respect of such January 2014 Advance or January 2014 Warrants as dividends (including, without limitation, accrued but undeclared dividends) or other payments or distributions (excluding interest (whether
paid or accrued and unpaid) on such January 2014 Advance up to (but not including) the date of such purchase by Pinnacle (or its Entity Affiliates)) since the time Harbinger and/or its Entity Affiliates made such January 2014 Advance (the
“January 2014 PIK Securities”). 
 (h) Pinnacle shall pay the consideration for January 2014 PIK Securities by issuing one
or more promissory notes to Harbinger or its applicable Entity Affiliate: 
 (i) with an aggregate principal amount equal to the value of
the January 2014 PIK Securities; 
 (ii) bearing no interest; 

(iii) with the term (with payment in full being due on the last day of the term) being a period of time equal to the earliest to occur of
(A) five (5) years, (B) a bona fide sale by Pinnacle of such January 2014 PIK Securities to an unaffiliated third party, or any other liquidity event involving such January 2014 PIK Securities in which cash is received in full
satisfaction of such January 2014 PIK Securities (including, but not limited to, a redemption in full for cash of such January 2014 PIK Securities by the Company), or (C) a bona fide sale by Harbinger or its Entity Affiliates of all, but
not less than all, of the January 2014 Advances related to the January 2014 PIK Securities by Harbinger or its Entity Affiliates to an unaffiliated third party, or any other liquidity event involving such January 2014 Advances in which cash is
received in full satisfaction of such January 

  
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 2014 PIK Securities (including, but not limited to, a repayment in full for cash of such January
2014 Advances by the Company and termination of any further obligation to lend with respect thereto); and 
 (iv) which shall be secured by
a first priority security interest, in form and substance reasonably satisfactory to Harbinger, in the January 2014 PIK Securities. 
 (i)
Each January 2014 Subscriber agrees, upon any exercise by Pinnacle or its Entity Affiliates of their right to acquire any January 2014 Assets of such January 2014 Subscriber, to transfer and assign good and marketable title to the relevant January
2014 Assets held by such January 2014 Subscriber to Pinnacle or its Entity Affiliates free and clear of any Liens. In the event that upon such exercise, in Pinnacle’s reasonable determination, a January 2014 Subscriber is not able to assign
good and marketable title to any relevant January 2014 Asset to Pinnacle or its Entity Affiliates free and clear of Liens (such subscriber in such case, a “Proposed January 2014 Subscriber Transferor”), then in addition to all other
remedies at law and/or in equity that Pinnacle and/or its Entity Affiliates may have against such Proposed January 2014 Subscriber Transferor, upon Pinnacle’s written notice to the Company (which notice shall state that Pinnacle had attempted
to acquire January 2014 Assets from such Proposed January 2014 Subscriber Transferor identified in such notice in accordance with Section 6.12(a) and Section 6.12(f)), the following transactions shall be consummated so as to
afford Pinnacle, to the maximum extent possible, the full benefit of its rights under Section 6.12: 
 (i) Pinnacle and/or its
Entity Affiliates shall lend and the Company shall borrow from Pinnacle and/or its Entity Affiliates, on substantially the same terms and conditions as the January 2014 Advance (including with respect to maturity, interest rate and other terms), a
principal amount equal to the portion of the Payment Amount (as such term is defined in the January 2014 Loan Agreement) of the January 2014 Advance that Pinnacle and/or its Entity Affiliates sought to acquire from such Proposed January 2014
Subscriber Transferor (such loan, an “Alternate January 2014 Loan”), which shall be recorded as set forth in the January 2014 Loan Agreement and have the same effect as if Pinnacle or such Entity Affiliate had received an assignment
of a portion of a January 2014 Advance from the Proposed January 2014 Subscriber Transferor as the January 2014 Subscriber under Section 6.12(a); 

(ii) the Company agrees to apply all the cash proceeds of the Alternate January 2014 Loan promptly to prepay to such Proposed January 2014
Subscriber Transferor its respective portion of such January 2014 Advance that Pinnacle and/or its Entity Affiliates had intended to acquire from such Proposed January 2014 Subscriber Transferor; 

(iii) the holder of an Alternate January 2014 Loan shall be entitled to its proportionate interest in all of the benefits and security
afforded to the January 2014 Subscribers under and pursuant to the January 2014 Loan Agreement. The Company, Harbinger and each of Harbinger’s relevant Entity Affiliates agree to execute and deliver all instruments and agreements, and to
consent to such registrations, as may be required in the opinion of Pinnacle, acting reasonably, to properly entitle Pinnacle to all of the rights it would otherwise have been entitled to receive as if the January 2014 Assets referable to the
January 2014 Advance, as replaced by the Alternate January 2014 Loan, were assigned to Pinnacle by such Proposed January 2014 Subscriber Transferor; 

(iv) the number of Common Shares covered by the January 2014 Warrant of such Proposed January 2014 Subscriber Transferor shall be
automatically reduced, and without requirement of any action on the part of such Proposed January 2014 Subscriber Transferor, by the number of Common Shares that would have been covered by such January 2014 Warrant (or portion thereof) assigned to
Pinnacle and/or its Entity Affiliates pursuant to Section 6.12(f), and the Company shall notify such Proposed January 2014 Subscriber Transferor of the calculation of such reduction, which calculation shall be conclusive absent manifest
error; 

  
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 (v) the Company agrees to and shall issue a warrant or warrants (each, an “Alternate
January 2014 Warrant”) to Pinnacle or its Entity Affiliates, in form and substance substantially identical to the form of January 2014 Warrant issued to such Proposed January 2014 Subscriber Transferor (excluding any of the provisions as
shall not be applicable to Pinnacle and its Entity Affiliates including, without limitation, any restriction on exercise and any automatic reduction in the shares covered by such warrant relating to PNK Prepayments) covering the number of Common
Shares covered by January 2014 Warrants Pinnacle and/or its Entity Affiliates sought to acquire from such Proposed January 2014 Subscriber Transferor under Section 6.12(f). An Alternate January 2014 Warrant shall be a January 2014
Warrant for all purposes of this Agreement as if Pinnacle or such Entity Affiliate had received an assignment of all or a portion of a January 2014 Warrant from a January 2014 Subscriber under Section 6.12(f); and 

(vi) for greater clarity, the references to “Proposed January 2014 Subscriber Transferor” in this Section 6.12(i) shall
not include Pinnacle and/or its Entity Affiliates. 
 (j) Each January 2014 Subscriber agrees that, during the January 2014 Lookback Period,
it shall not exercise any January 2014 Warrant it holds with respect to more than: 
 (i) the number of such January 2014 Subscriber’s
original Common Share Entitlement then exercisable under such January 2014 Warrant, for the January 2014 Tranche in respect of such issued January 2014 Warrant (as adjusted pursuant to the terms of such January 2014 Warrant); minus

 (ii) the product of: 
 (A)
twenty-seven percent (27%) of such January 2014 Subscriber’s original Common Share Entitlement then exercisable under such January 2014 Warrant, for the January 2014 Tranche in respect of such issued January 2014 Warrant (as adjusted
pursuant to the terms of such January 2014 Warrant); multiplied by  
 (B) the Sliding January 2014 Adjustment, if and as
applicable, 
 (the “January 2014 Unreserved Lookback Amount”). 

Any attempted exercise by such January 2014 Subscriber of any portion of such January 2014 Warrant as relates to more than the January 2014
Unreserved Lookback Amount shall be null and void, of no force or effect whatsoever, and shall not be honoured by the Company. 
 (k) For
purposes of this Section 6.12, in the event that a January 2014 Subscriber assigns or transfers all or any portion of its commitment under the January 2014 Loan Agreement to make a January 2014 Advance (other than to Pinnacle), the
assigning or transferring January 2014 Subscriber and the assignee or transferee of such commitment (other than Pinnacle) shall be treated as one and the same January 2014 Subscriber, including without limitation for purposes of the calculations
contemplated by this Section 6.12 and for purposes of the obligation to transfer January 2014 Assets to Pinnacle should Pinnacle exercise its right to acquire January 2014 Assets as contemplated herein.” 

 

	(e)	The following definitions are added to section 7.1 (Certain Definitions) of the Shareholders Agreement in the appropriate alphabetical order: 


“Alternate January 2014 Loan” has the meaning set forth in Section 6.12(i)(i). 

“Alternate January 2014 Warrant” has the meaning set forth in Section 6.12(i)(v). 

  
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 “First January 2014 Anniversary” means, with respect any January 2014
Subscriber, the first anniversary of the earlier of (a) the later of (i) the January 2014 Second Advance Date and (ii) the date such January 2014 Subscriber completes its funding under and pursuant to the January 2014 Loan Agreement
and (b) the date upon which the Company terminates the obligation to make all or any remaining portion of the January 2014 Advance(s) that have not been advanced by, or for and on behalf of, such January 2014 Subscriber as if that date, whether
unilaterally or with the written agreement of such January 2014 Lender. 
 “January 2014 Advance” means a loan advance
completed by a January 2014 Subscriber to the Company pursuant to the terms of the January 2014 Loan Agreement. 
 “January 2014
Asset” has the meaning set forth in Section 6.12(c). 
 “January 2014 Breakaway Warrants” means the
aggregate entitlement of Global Opportunities Breakaway Ltd. under the warrant certificate(s) issued by the Company to Global Opportunities Breakaway Ltd. from time to time pursuant to section 3.2 of the January 2014 Loan Agreement, upon exercise of
the warrants evidenced thereby, to a number of Common Shares up to the aggregate Common Share Entitlement(s) contained therein. 

“January 2014 Harbinger Warrants” means the aggregate entitlement of Harbinger II S.à r.l. under the warrant
certificate(s) issued by the Company to Harbinger II S.à r.l. from time to time pursuant to section 3.2 of the January 2014 Loan Agreement, upon exercise of the warrants evidenced thereby, to a number of Common Shares up to the aggregate
Common Share Entitlement(s) contained therein. 
 “January 2014 Loan Agreement” means the Convertible Loan Agreement dated
January 17, 2014, by and among the Company and the January 2014 Subscribers, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

“January 2014 Lookback Period” means the period commencing on January 17, 2014, and ending on the third anniversary of
the January 2014 Second Advance Date, provided that such period as it applies to each January 2014 Subscriber shall be extended by any Funding Default Period referable to such January 2014 Subscriber. 

“January 2014 PIK Securities” has the meaning set forth in Section 6.12(g). 

“January 2014 Proportionate Amount” has the meaning set forth in Section 6.12(b)(i). 

“January 2014 Second Advance Date” has the meaning ascribed to the term “Second Advance Date” in the January 2014
Loan Agreement. 
 “January 2014 Subscriber” means (a) each of Harbinger II S.à r.l. and Global Opportunities
Breakaway Ltd. and (b) any Entity Affiliate of Harbinger II S.à r.l. or Global Opportunities Breakaway Ltd. who becomes a party to the January 2014 Loan Agreement in connection with its assumption of a portion of one or more January 2014
Advances. 
 “January 2014 Tranche” has the meaning ascribed to the term “Tranche” in the January 2014 Loan
Agreement. 
 “January 2014 Unreserved Lookback Amount” has the meaning set forth in Section 6.12(j). 

“January 2014 Warrants” means the January 2014 Harbinger Warrants and the January 2014 Breakaway Warrants, and, if issued, the
Alternate January 2014 Warrants referable to such. 
 “Minimum January 2014 Retained Original Interest” has the meaning set
forth in Section 6.12(c). 
 “Proposed January 2014 Subscriber Transferor” has the meaning set forth in
Section 6.12(i). 

  
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 “Sliding January 2014 Adjustment” has the meaning set forth in
Section 6.12(a)(ii). 
 “Sliding Proportionate January 2014 Amount” has the meaning set forth in
Section 6.12(a)(ii). 
 “Third January 2014 Anniversary” means, with respect to any January 2014 Subscriber, the
third anniversary of the earlier of (a) the later of (i) the January 2014 Second Advance Date and (ii) the date such January 2014 Subscriber completes its funding under and pursuant to the January 2014 Loan Agreement and (b) the
date upon which the Company terminates the obligation to make all or any remaining portion of the January 2014 Advance(s) that have not been advanced by, or for and on behalf of, such January 2014 Subscriber as of that date, whether unilaterally or
with the written agreement of such January 2014 Subscriber.” 
  

	(f)	The definition of “Fully Diluted Basis” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“Fully Diluted Basis” means the aggregate number of Common Shares and Class VII Non-Voting Shares, assuming the issuance,
conversion or exercise (as the case may be) into Common Shares and Class VII Non-Voting Shares of any and all options (including the vested portion of such options, including the Pinnacle Option, but excluding any unvested portion of such options,
including the Pinnacle Option), warrants (but excluding any outstanding warrants, including any outstanding May 2013 Minimum Warrants, May 2013 Primary Warrants, November 2013 Warrants and January 2014 Warrants to the extent not yet exercisable on
the date of any relevant determination of the number of Common Shares and Class VII Non-Voting Shares on a “Fully Diluted Basis”) and convertible or exchangeable securities issued by the Company (including without limitation the Common
Shares underlying the Series V Special Shares and the Class VI Shares, but excluding the November 2013 Advances and the January 2014 Advances), in accordance with their respective terms.” 

 

	(g)	The definition of “Funding Default Period” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“Funding Default Period” means (a) with respect to any Backstop Lender and as to any Backstop Advance it is required to
make under and pursuant to the Backstop Loan Agreement, the period commencing as of the date such Backstop Lender was required to make such Backstop Advance, (b) with respect to any May 2013 Lender and as to any May 2013 Advance it is required
to make under and pursuant to the May 2013 Loan Agreement, the period commencing as of the date of such May 2013 Lender was required to make such May 2013 Advance and ending as of the date such May 2013 Lender makes such May 2013 Advance and
(c) with respect to any January 2014 Subscriber and as to any January 2014 Advance it is required to make under and pursuant to the January 2014 Loan Agreement, the period commencing as of the date of such January 2014 Subscriber was required
to make such January 2014 Advance and ending as of the date such January 2014 Subscriber makes such January 2014 Advance.” 
  

	(h)	The definition of “November 2013 Proportionate Amount” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following:


 “November 2013 Proportionate Amount” has the meaning set forth in Section 6.11(b)(i).” 

 

	(i)	The definition of “PNK Prepayment” in section 7.1 (Certain Definitions) of the Shareholders Agreement is hereby deleted in its entirety and replaced with the following: 


“PNK Prepayment” has the meaning set forth in the Backstop Loan Agreement, the May 2013 Loan Agreement, the November 2013 Loan
Agreement and the January 2014 Loan Agreement, as the context may require.” 

  
 - 9 - 








 3. Amendments to the Conversion Agreement. 

 

	(a)	The definition of “Aggregate Share Entitlement” in section 1.1 (Definitions) of the Conversion Agreement is hereby deleted in its entirety and replaced with the following: 


““Aggregate Share Entitlement” means, in respect of Pinnacle as of the Conversion Date, the aggregate of (a) the
number of Common Shares held by Pinnacle as registered holder, (b) the number of Common Shares to which Pinnacle is entitled upon the full exercise of the vested portion of the Pinnacle Option, (c) the number of Common Shares to which
Pinnacle is entitled upon the full conversion (pursuant to this Agreement) of the Series V Special Shares held by Pinnacle, (d) the number of Common Shares to which Pinnacle is entitled upon the full conversion (pursuant to this Agreement) of
the Class VI Preferred Shares, (e) the number of Common Shares to which Pinnacle is entitled upon the full exercise of the Pinnacle Warrants and (f) the number of Common Shares that Pinnacle will receive upon the full conversion (pursuant
to this Agreement) of the Outstanding Loan it makes under the September 2013 Loan Agreement; but, excluding, for the avoidance of doubt, any Common Shares which Pinnacle holds or to which Pinnacle becomes entitled by reason of the
exercise of its lookback rights pursuant to section 2.4 of the May 2013 Loan Agreement, section 6.2(b)(ii)(B), section 6.5, section 6.6, section 6.11 and /or section 6.12 of the Third Amended and Restated Shareholders Agreement, as the case may
be.” 
 4. No Other Changes. Except as set forth in this Amendment, the Shareholders Agreement and the Conversion Agreement shall remain in full
force and effect without any further changes or modifications. 
 5. Amendments Apply to the Fourth Amended and Restated Shareholders Agreement attached
to the Conversion Agreement. In addition to the amendments to the Shareholders Agreement made by those certain Amendments to the Third Restated Shareholders Agreement and Conversion Agreement, dated November 21, 2013, the parties
acknowledge and agree that the amendments set forth in Section 2 (Amendments to the Shareholders Agreement) of this Amendment shall apply to the form of the Fourth Amended and Restated Shareholders Agreement attached as Schedule
“C” to the Conversion Agreement dated September 23, 2013, as amended on November 21, 2013, by and among the Company, Harbinger II S.à r.l., Credit Distressed Blue Line Master Fund, Ltd., Harbinger Capital Partners Master
Fund I, Ltd., Harbinger Capital Partners Special Situations Fund, L.P., Harbinger China Dragon Intermediate Fund, LP, Global Opportunities Breakaway Ltd., Blue Line ACDL, Inc., Breakaway ACDL, Inc., Pinnacle and PNK Development 31, LLC (the
“Conversion Agreement”), to the extent applicable and with such reasonable changes as may be required to give effect to the intent hereof and thereof, including without limitation the inclusion of provisions set forth in
Section 2(d) of this Amendment to the extent of any portion of the January 2014 Advances that has not been converted into Common Shares and the inclusion of provisions substantially identical to section 6.6 of such form of Fourth Amended and
Restated Shareholders Agreement applicable to January 2014 Advances in respect and to the extent of any portion of the January 2014 Advances that has been converted into Common Shares from and after the Conversion Date (as defined in the Conversion
Agreement). 
 6. Governing Law. This Amendment shall be deemed to be made in, and in all respects shall be interpreted, construed and governed by
and in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein without regard to any conflict of law principles thereof that would result in the application of the laws of any other
jurisdiction. Each party submits to the exclusive jurisdiction of the Supreme Court of the Province of British Columbia for the purposes of all legal actions and proceedings arising out of or relating to this Amendment. 

  
 - 10 - 








 7. Headings. The headings are for convenience only, do not form a part of this Amendment and are not
intended to interpret, define or limit the scope, extent or intent of this Amendment or any of its provisions. 
 8. Further Assurances. Each party
will execute and deliver such further agreements and other documents and do such further acts and things as the other party reasonably requests to evidence, carry out or give full force and effect to the intent of this Amendment. 

9. Counterparts. This Amendment may be executed in as many counterparts as may be necessary and may be delivered by facsimile or electronically
transmitted and each such counterpart will be deemed to be an original and such counterparts together will constitute one and the same instrument. 

[Remainder of Page Left Intentionally Blank] 

  
 - 11 - 








 IN WITNESS WHEREOF the parties, intending to be legally bound, have executed and delivered this Amendment
as of the date first referenced above. 
  

									
	 ASIAN COAST DEVELOPMENT

(CANADA) LTD.
	 		 	HARBINGER II S.À R.L.
					
	 Per:
	 	 /s/ Stephen H. Shoemaker
	 		 	Per:	 	 /s/ Lorenzo Barcaglioni

	 Name:
	 		 		 	Name:	 	Lorenzo Barcaglioni
	 Title:
	 		 		 	Title:	 	
					
		 		 		 	Per:	 	 /s/ Keith M. Hladek

		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
	 BLUE LINE ACDL, INC.
	 		 	BREAKAWAY ACDL, INC.
					
	 Per:
	 	 /s/ Keith M. Hladek
	 		 	Per:	 	 /s/ Keith M. Hladek

	 Name:

Title:
	 		 		 	 Name:
 Title:
	 	
			
	 HARBINGER CHINA DRAGON

INTERMEDIATE FUND, L.P., By: Harbinger

Capital Partners II LP, its investment manager
	 		 	 CREDIT DISTRESSED BLUE LINE MASTER

FUND, LTD., By: Harbinger Capital Partners II
 LP, its
investment manager

					
	 Per:
	 	 /s/ Keith M. Hladek
	 		 	Per:	 	 /s/ Keith M. Hladek

	 Name:
	 		 		 	Name:	 	
	 Title:
	 		 		 	Title:	 	
			
	 GLOBAL OPPORTUNITIES BREAKAWAY

LTD., By: Harbinger Capital Partners II LP, its

investment manager
	 		 	PNK DEVELOPMENT 18, LLC
					
	 Per:
	 	 /s/ Keith M. Hladek
	 		 	Per:	 	 /s/ Carlos Ruisanchez

	 Name:
	 		 		 	Name:	 	Carlos Ruisanchez
	 Title:
	 		 		 	Title:	 	Chief Financial Officer, Treasurer

 [Signature Page- Second Amendment to the Third Amended and Restated Shareholders Agreement and Conversion
Agreement] 








			
	 PNK DEVELOPMENT 31, LLC

		
	 Per:
	 	 /s/ Carlos Ruisanchez

	 Name:
	 	Carlos Ruisanchez
	 Title:
	 	 Executive Vice President,
 Chief Financial
Officer and Treasurer


 [Signature Page- Second Amendment to the Third Amended and Restated Shareholders Agreement and Conversion
Agreement] 







 IN WITNESS WHEREOF the following parties, intending to be legally bound, have executed and
delivered this Amendment as to the Conversion Agreement only as of the date first referenced above. 
  

									
	 HARBINGER CAPITAL PARTNERS

MASTER FUND I, LTD., By: Harbinger

Capital Partners LLC, its investment manager
	 		 	 HARBINGER CAPITAL PARTNERS

SPECIAL SITUATIONS FUND, L.P., By:
 Harbinger Capital
Partners LLC, its investment
 manager

					
	Per:	 	 /s/ Keith M. Hladek
	 		 	Per:	 	 /s/ Keith M. Hladek

	 Name:
 Title:
	 		 		 	 Name:
 Title:
	 	

  
  
  

[Signature Page- Second Amendment to the Third Amended and Restated Shareholders Agreement and Conversion Agreement]