exv4w1






Exhibit 4.1




Execution Copy




 

 






MGM MIRAGE




as Issuer



The SUBSIDIARY GUARANTORS Party Hereto



as Guarantors



AND



U.S. BANK NATIONAL ASSOCIATION



as Trustee



INDENTURE



Dated as of April 20, 2010



4.25% Convertible Senior Notes due 2015



 

 












 







TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	
ARTICLE 1
DEFINITIONS
	 
	 	 	 	 	 	 
	Section 1.01.

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	
ARTICLE 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES
	 
	 	 	 	 	 	 
	Section 2.01.

	 	Designation and Amount
	 	 	11	 
	Section 2.02.

	 	Form of Notes
	 	 	11	 
	Section 2.03.

	 	Date and Denomination of Notes; Payments of Interest
	 	 	12	 
	Section 2.04.

	 	[Reserved]
	 	 	13	 
	Section 2.05.

	 	Execution, Authentication and Delivery of Notes
	 	 	13	 
	Section 2.06.

	 	Exchange and Registration of Transfer of Notes; Restrictions on
Transfer; Depositary
	 	 	14	 
	Section 2.07.

	 	Mutilated, Destroyed, Lost or Stolen Notes
	 	 	20	 
	Section 2.08.

	 	Temporary Notes
	 	 	21	 
	Section 2.09.

	 	Cancellation of Notes Paid, Etc
	 	 	21	 
	Section 2.10.

	 	CUSIP Numbers
	 	 	22	 
	Section 2.11.

	 	Additional Notes; Repurchases
	 	 	22	 
	Section 2.12.

	 	Automatic Exchange From Restricted Global Note to Unrestricted Global
Note
	 	 	22	 
	 
	 	 	 	 	 	 
	
ARTICLE 3
MANDATORY DISPOSITION
	 
	 	 	 	 	 	 
	Section 3.01.

	 	Mandatory Disposition of Notes Pursuant to Gaming Laws
	 	 	23	 
	 
	 	 	 	 	 	 
	
ARTICLE 4
SATISFACTION AND DISCHARGE
	 
	 	 	 	 	 	 
	Section 4.01.

	 	Satisfaction and Discharge
	 	 	24	 
	 
	 	 	 	 	 	 
	
ARTICLE 5
PARTICULAR COVENANTS OF THE COMPANY
	 
	 	 	 	 	 	 
	Section 5.01.

	 	Payment of Principal, Interest and Additional Interest
	 	 	24	 
	Section 5.02.

	 	Maintenance of Office or Agency
	 	 	24	 
	Section 5.03.

	 	Appointments to Fill Vacancies in Trustee’s Office
	 	 	25	 
	Section 5.04.

	 	Provisions as to Paying Agent
	 	 	25	 
	Section 5.05.

	 	Existence
	 	 	26	 
	Section 5.06.

	 	Rule 144A Information Requirement and Annual Reports
	 	 	26	 
	Section 5.07.

	 	Stay, Extension and Usury Laws
	 	 	27	 
	Section 5.08.

	 	Compliance Certificate; Statements as to Defaults
	 	 	28	 
	Section 5.09.

	 	Guarantee.
	 	 	28	 
	Section 5.10.

	 	Further Instruments and Acts
	 	 	29	 
	 
	 	 	 	 	 	 
	
ARTICLE 6
LISTS OF NOTEHOLDERS AND REPORTS BY THE COMPANY AND THE TRUSTEE
	 
	 	 	 	 	 	 
	Section 6.01.

	 	Lists of Noteholders
	 	 	29	 






i









 






	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 6.02.

	 	Preservation and Disclosure of Lists
	 	 	29	 
	Section 6.03.

	 	Reports by Trustee
	 	 	29	 
	 
	 	 	 	 	 	 
	
ARTICLE 7 
DEFAULTS AND REMEDIES
	 
	 	 	 	 	 	 
	Section 7.01.

	 	Events of Default
	 	 	30	 
	Section 7.02.

	 	Acceleration
	 	 	31	 
	Section 7.03.

	 	Additional Interest
	 	 	32	 
	Section 7.04.

	 	Payments of Notes on Default; Suit Therefor
	 	 	33	 
	Section 7.05.

	 	Application of Monies Collected by Trustee
	 	 	34	 
	Section 7.06.

	 	Proceedings by Noteholders
	 	 	35	 
	Section 7.07.

	 	Proceedings by Trustee
	 	 	35	 
	Section 7.08.

	 	Remedies Cumulative and Continuing
	 	 	35	 
	Section 7.09.

	 	Direction of Proceedings and Waiver of Defaults by Majority of
Noteholders
	 	 	36	 
	Section 7.10.

	 	Notice of Defaults
	 	 	36	 
	Section 7.11.

	 	Undertaking to Pay Costs
	 	 	36	 
	 
	 	 	 	 	 	 
	
ARTICLE 8
CONCERNING THE TRUSTEE
	 
	 	 	 	 	 	 
	Section 8.01.

	 	Duties and Responsibilities of Trustee
	 	 	37	 
	Section 8.02.

	 	Reliance on Documents, Opinions, Etc
	 	 	39	 
	Section 8.03.

	 	No Responsibility for Recitals, Etc
	 	 	40	 
	Section 8.04.

	 	Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes
	 	 	40	 
	Section 8.05.

	 	Monies to Be Held in Trust
	 	 	40	 
	Section 8.06.

	 	Compensation and Expenses of Trustee
	 	 	40	 
	Section 8.07.

	 	Officers’ Certificate as Evidence
	 	 	41	 
	Section 8.08.

	 	Conflicting Interests of Trustee
	 	 	41	 
	Section 8.09.

	 	Eligibility of Trustee
	 	 	41	 
	Section 8.10.

	 	Resignation or Removal of Trustee
	 	 	41	 
	Section 8.11.

	 	Acceptance by Successor Trustee
	 	 	42	 
	Section 8.12.

	 	Succession by Merger, Etc
	 	 	43	 
	Section 8.13.

	 	Limitation on Rights of Trustee as Creditor
	 	 	43	 
	Section 8.14.

	 	Trustee’s Application for Instructions from the Company
	 	 	43	 
	Section 8.15.

	 	Reports by Trustee to Gaming Authorities
	 	 	44	 
	 
	 	 	 	 	 	 
	
ARTICLE 9
CONCERNING THE NOTEHOLDERS
	 
	 	 	 	 	 	 
	Section 9.01.

	 	Action by Noteholders
	 	 	44	 
	Section 9.02.

	 	Proof of Execution by Noteholders
	 	 	45	 
	Section 9.03.

	 	Who Are Deemed Absolute Owners
	 	 	45	 
	Section 9.04.

	 	Company-Owned Notes Disregarded
	 	 	45	 
	Section 9.05.

	 	Revocation of Consents; Future Noteholders Bound
	 	 	46	 
	 
	 	 	 	 	 	 
	
ARTICLE 10 
NOTEHOLDERS’ MEETINGS
	 
	 	 	 	 	 	 
	Section 10.01.

	 	Purpose of Meetings
	 	 	46	 
	Section 10.02.

	 	Call of Meetings by Trustee
	 	 	46	 






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	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 10.03.

	 	Call of Meetings by Company or Noteholders
	 	 	46	 
	Section 10.04.

	 	Qualifications for Voting
	 	 	47	 
	Section 10.05.

	 	Regulations
	 	 	47	 
	Section 10.06.

	 	Voting
	 	 	47	 
	Section 10.07.

	 	No Delay of Rights by Meeting
	 	 	48	 
	 
	 	 	 	 	 	 
	
ARTICLE 11
SUPPLEMENTAL INDENTURES
	 
	 	 	 	 	 	 
	Section 11.01.

	 	Supplemental Indentures Without Consent of Noteholders
	 	 	48	 
	Section 11.02.

	 	Supplemental Indentures With Consent of Noteholders
	 	 	49	 
	Section 11.03.

	 	Effect of Supplemental Indentures
	 	 	50	 
	Section 11.04.

	 	Notation on Notes
	 	 	50	 
	Section 11.05.

	 	Evidence of Compliance of Supplemental Indenture to Be Furnished to
Trustee
	 	 	50	 
	 
	 	 	 	 	 	 
	
ARTICLE 12
CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE
	 
	 	 	 	 	 	 
	Section 12.01.

	 	Conditions to Consolidation, Merger, Sale, Conveyance and Lease
	 	 	50	 
	Section 12.02.

	 	Successor Corporation to Be Substituted
	 	 	51	 
	Section 12.03.

	 	Opinion of Counsel to Be Given to Trustee
	 	 	51	 
	 
	 	 	 	 	 	 
	
ARTICLE 13
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 
	 	 	 	 	 	 
	Section 13.01.

	 	Indenture and Notes Solely Corporate Obligations
	 	 	52	 
	 
	 	 	 	 	 	 
	
ARTICLE 14

[RESERVED]
	 
	 	 	 	 	 	 
	ARTICLE 15
CONVERSION OF NOTES
	 
	 	 	 	 	 	 
	Section 15.01.

	 	Conversion Privilege
	 	 	52	 
	Section 15.02.

	 	Conversion Procedure
	 	 	52	 
	Section 15.03.

	 	Increased Conversion Rate Applicable to Certain Notes Surrendered in
Connection with Make-Whole Fundamental Changes
	 	 	55	 
	Section 15.04.

	 	Adjustment of Conversion Rate
	 	 	56	 
	Section 15.05.

	 	Shares to Be Fully Paid
	 	 	64	 
	Section 15.06.

	 	Effect of Reclassification, Consolidation, Merger or Sale
	 	 	65	 
	Section 15.07.

	 	Certain Covenants
	 	 	66	 
	Section 15.08.

	 	Responsibility of Trustee
	 	 	67	 
	Section 15.09.

	 	Notice to Noteholders Prior to Certain Actions
	 	 	67	 
	Section 15.10.

	 	Stockholder Rights Plans
	 	 	68	 
	Section 15.11.

	 	Extension of Conversion Settlement Date
	 	 	68	 
	 
	 	 	 	 	 	 
	
ARTICLE 16
REPURCHASE OF NOTES UPON A FUNDAMENTAL CHANGE
	 
	 	 	 	 	 	 
	Section 16.01.

	 	[Reserved]
	 	 	69	 
	Section 16.02.

	 	Repurchase at Option of Noteholders upon a Fundamental Change
	 	 	69	 
	Section 16.03.

	 	Withdrawal of Fundamental Change Repurchase Notice
	 	 	71	 
	Section 16.04.

	 	Deposit of Fundamental Change Repurchase Price
	 	 	72	 






iii









 






	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	
ARTICLE 17
GUARANTEES
	 
	 	 	 	 	 	 
	Section 17.01.

	 	Guarantee
	 	 	72	 
	Section 17.02.

	 	Execution and Delivery of Guarantee
	 	 	73	 
	Section 17.03.

	 	Limitation of Subsidiary Guarantor’s Liability
	 	 	74	 
	Section 17.04.

	 	Contribution
	 	 	74	 
	Section 17.05.

	 	Rights Under the Guarantee
	 	 	74	 
	Section 17.06.

	 	Primary Obligations
	 	 	75	 
	Section 17.07.

	 	Waivers
	 	 	75	 
	Section 17.08.

	 	Releases
	 	 	75	 
	Section 17.09.

	 	No Election
	 	 	75	 
	Section 17.10.

	 	Financial Condition of the Company
	 	 	76	 
	Section 17.11.

	 	Consolidation, Merger, Etc., Only on Certain Terms
	 	 	76	 
	 
	 	 	 	 	 	 
	
ARTICLE 18
MISCELLANEOUS PROVISIONS
 
	 
	 	 	 	 	 	 
	Section 18.01.

	 	Provisions Binding on Company’s Successors
	 	 	77	 
	Section 18.02.

	 	Official Acts by Successor Corporation
	 	 	77	 
	Section 18.03.

	 	Addresses for Notices, Etc
	 	 	77	 
	Section 18.04.

	 	Governing Law
	 	 	77	 
	Section 18.05.

	 	Evidence of Compliance with Conditions Precedent; Certificates and
Opinions of Counsel to Trustee
	 	 	78	 
	Section 18.06.

	 	Legal Holidays
	 	 	78	 
	Section 18.07.

	 	No Security Interest Created
	 	 	78	 
	Section 18.08.

	 	Benefits of Indenture
	 	 	78	 
	Section 18.09.

	 	Table of Contents, Headings, Etc
	 	 	78	 
	Section 18.10.

	 	Authenticating Agent
	 	 	78	 
	Section 18.11.

	 	Execution in Counterparts
	 	 	79	 
	Section 18.12.

	 	Severability
	 	 	80	 
	Section 18.13.

	 	Waiver of Jury Trial
	 	 	80	 
	Section 18.14.

	 	Force Majeure
	 	 	80	 






	 	 	 	 	 

	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A

	 	Form of Note
	 	A-1
	Exhibit B

	 	Form of Notice of Conversion
	 	B-1
	Exhibit C

	 	Form of Fundamental Change Repurchase Notice
	 	C-1
	Exhibit D

	 	Form of Assignment and Transfer
	 	D-1
	Exhibit E

	 	Form of Joinder Agreement
	 	E-1







iv











 





          INDENTURE dated as of April 20, 2010 among MGM MIRAGE, a Delaware corporation, as issuer
(the “Company”), the Subsidiary Guarantors party hereto, as guarantors (the “Subsidiary
Guarantors”), and U.S. Bank National Association, as trustee (the “Trustee”).




WITNESSETH:




          WHEREAS, for its lawful corporate purposes, the Company has duly authorized the issue of its
4.25% Convertible Senior Notes due 2015 (hereinafter sometimes called the “Notes”), initially in an
aggregate principal amount not to exceed $1,150,000,000 and thereafter subject to increase pursuant
to Section 2.11, and each of the Subsidiary Guarantors has duly authorized the guarantee of the
Notes; and




          WHEREAS, in order to provide the terms and conditions upon which the Notes are to be
authenticated, issued and delivered, each of the Company and the Subsidiary Guarantors has duly
authorized the execution and delivery of this Indenture; and




          WHEREAS, the Form of Note, the certificate of authentication to be borne by each Note, the
Form of Notice of Conversion, the Form of Fundamental Change Repurchase Notice and the Form of
Assignment and Transfer to be borne by the Notes are to be substantially in the forms hereinafter
provided for; and




          WHEREAS, all acts and things necessary to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee or a duly authorized authenticating agent, the valid,
binding and legal obligations of the Company and to make the guarantees set forth herein the valid,
binding and legal obligations of each of the Subsidiary Guarantors, and to constitute valid
agreements according to their respective terms, have been done and performed, and the execution of
this Indenture and the issue hereunder of the Notes have in all respects been duly authorized.




          NOW, THEREFORE, THIS INDENTURE WITNESSETH:




          That in order to declare the terms and conditions upon which the Notes are, and are to be,
authenticated, issued and delivered, and in consideration of the premises and of the purchase and
acceptance of the Notes by the holders thereof, each of the Company and the Subsidiary Guarantors
covenants and agrees with the Trustee for the equal and proportionate benefit of the respective
holders from time to time of the Notes (except as otherwise provided below), as follows:




ARTICLE 1

DEFINITIONS




          Section 1.01. Definitions. The terms defined in this Section 1.01 (except as herein otherwise
expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section
1.01. All other terms used in this Indenture that are defined in the Trust Indenture Act or that
are by reference therein defined in the Securities Act (except as herein otherwise expressly
provided or unless the context otherwise requires) shall have the meanings assigned to such terms
in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of
this Indenture. The words “herein,” “hereof,” “hereunder,” and words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other subdivision. The
terms defined in this Article include the plural as well as the singular.




          “Additional Interest” means all amounts, if any, payable pursuant to Sections 5.06(d), 5.06(e)
and 7.03, as applicable, hereof; provided, however, that in no event shall Additional Interest





1









 







accrue at a rate exceeding 0.50% per annum in the aggregate during the period beginning on,
and including, the date that is six months after the date of the last original issuance of the
Initial Notes, or if later, any IW Notes, through the date that is 365 days after the date of the
last original issuance of the Initial Notes, or if later, any IW Notes.




          “Additional Notes” shall have the meaning specified in Section 2.11.




          “Affected Notes” shall have the meaning specified in Section 15.11(c).




          “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the
purposes of this definition, “control,” when used with respect to any specified Person means the
power to direct or cause the direction of the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.




          “Automatic Exchange” shall have the meaning specified in Section 2.12.




          “Automatic Exchange Notice” shall have the meaning specified in Section 2.12.




          “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors.




          “Board of Directors” means, with respect to any Person, the board of directors of such Person
or a committee of such board duly authorized to act for it hereunder (or if such Person is not a
corporation, the governing body, partners, managers or others that controls the management or
policies of such Person or a committee thereof duly authorized to act for it hereunder).




          “Board Resolution” means, with respect to any Person, a copy of a resolution certified by the
Secretary or an Assistant Secretary of such Person to have been duly adopted by the Board of
Directors, and to be in full force and effect on the date of such certification, and delivered to
the Trustee.




          “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on
which the banking institutions in New York City are authorized or obligated by law or executive
order to close or be closed.




          “Capital Stock” means, for any entity, any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that entity.




          “close of business” means 5:00 p.m. (New York City time).




          “Closing Date” means April 20, 2010.




          “Commission” means the Securities and Exchange Commission.




          “Common Equity” of any Person means Capital Stock of such Person that is generally entitled
(a) to vote in the election of directors of such Person or (b) if such Person is not a corporation,
to vote or otherwise participate in the selection of the governing body, partners, managers or
others that will control the management or policies of such Person.







2









 








          “Common Stock” means, subject to Section 15.06, shares of common stock of the Company, par
value $0.01 per share, at the date of this Indenture or shares of any class or classes resulting
from any reclassification or reclassifications thereof and that have no preference in respect of
dividends or of amounts payable in the event of any voluntary or involuntary liquidation,
dissolution or winding up of the Company and that are not subject to redemption by the Company;
provided that if at any time there shall be more than one such resulting class, the shares of each
such class then so issuable shall be substantially in the proportion that the total number of
shares of such class resulting from all such reclassifications bears to the total number of shares
of all such classes resulting from all such reclassifications.




          “Company” means MGM MIRAGE, a Delaware corporation, and subject to the provisions of Article
12, shall include its successors and assigns.




          “Company Order” means a written request or order signed in the name of the Company (i) by its
Chairman, a Vice Chairman, its President or a Vice President and (ii) by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary and delivered to the Trustee;
provided, however, that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of such officers or directors
listed in such clause (i) and one of the officers listed in clause (ii) above.




          “Continuing Director” means a director who either was a member of the Board of Directors of
the Company on April 20, 2010 or who becomes a member of the Board of Directors of the Company
subsequent to that date and whose election, appointment or nomination for election by the
stockholders of the Company is duly approved by a majority of the Continuing Directors on the Board
of Directors of the Company at the time of such approval, either by a specific vote or by approval
of the proxy statement issued by the Company on behalf of the entire Board of Directors of the
Company in which such individual is named as nominee for director.




          “Conversion Agent” shall have the meaning specified in Section 5.02.




          “Conversion Date” shall have the meaning specified in Section 15.02(c).




          “Conversion Obligation” shall have the meaning specified in Section 15.01.




          “Conversion Price” means as of any date, $1,000, divided by the Conversion Rate as of such
date.




          “Conversion Rate” shall have the meaning specified in Section 15.01.




          “Corporate Trust Office” means the office of the Trustee at which at any time its corporate
trust business shall be administered, which office at the date hereof is located at 60 Livingston
Avenue, St. Paul, MN 55107-1419, or such other address as the Trustee may designate from time to
time by notice to the Noteholders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may designate from time to time
by notice to the Noteholders and the Company).




          Credit Facility” means the Sixth Amended and Restated Loan Agreement, dated as of March 16,
2010, among the Company, as Borrower, and MGM Grand Detroit, LLC, a Delaware limited liability
company, as Co-Borrower, the Lenders therein named, and Bank of America, N.A., as Administrative
Agent (and their successors and assigns from time to time party thereto).







3









 








          “Credit Facility Default” shall have the meaning specified in Section 15.11(a).




          “Custodian” means the Trustee, as custodian for the Depositary, with respect to the Global
Notes, or any successor entity thereto.




          “Default” means any event that is, or after notice or passage of time, or both, would be, an
Event of Default.




          “Defaulted Interest” means any interest on any Note that is payable, but is not punctually
paid or duly provided for, on the applicable Interest Payment Date.




          “Depositary” means, with respect to the Global Notes the Person specified in Section 2.06 as
the Depositary with respect to such Notes, until a successor shall have been appointed and become
such pursuant to the applicable provisions of this Indenture, and thereafter, “Depositary” shall
mean or include such successor.




          “Disqualified Holder” shall have the meaning specified in Section 3.01(a).




          “Distributed Property” shall have the meaning specified in Section 15.04(c).




          “Effective Date” shall have the meaning specified in Section 15.03(a).




          “Event of Default” shall have the meaning specified in Section 7.01.




          “Ex-Dividend Date” means, with respect to any issuance, dividend or distribution in which the
holders of Common Stock (or other security) have the right to receive any cash, securities or other
property, the first date on which the shares of the Common Stock (or other security) trade on the
applicable exchange or in the applicable market, regular way, without the right to receive the
issuance, dividend or distribution in question.




          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.




          “Existing Senior Notes” means (i) the Company’s 8.50% senior notes due 2010, (ii) the
Company’s 6.75% senior notes due 2012, (iii) the Company’s 6.75% senior notes due 2013, (iv) the
Company’s 13% senior secured notes due 2013, (v) the Company’s 10.375% senior secured notes due
2014, (vi) the Company’s 5.875% senior notes due 2014, (vii) the Company’s 6.625% senior notes due
2015, (viii) the Company’s 6.875% senior notes due 2016, (ix) the Company’s 7.50% senior notes due
2016, (x) the Company’s 7.625% senior notes due 2017, (xi) the Company’s 11.125% senior secured
notes due 2017, (xii) the Company’s 11.375% senior notes due 2018; (xiii) the Company’s 9% senior
secured notes due 2020; and (xiv) the Mandalay Notes.




          “Expiration Date” shall have the meaning specified in Section 15.04(e).




          “Expiration Time” shall have the meaning specified in Section 15.04(e).




          “Extended Settlement Date” shall have the meaning specified in Section 15.11(c).




          “Fiscal Year” means a fiscal year of the Company.







4









 








          “Fundamental Change” means the occurrence after the original issuance of the Notes of any of
the following events:





     (a) any “person” or “group” (within the meaning of Section 13(d) of the Exchange Act)
other than the Company, its Subsidiaries or the employee benefit plans of the Company or any
such Subsidiary, files a Schedule TO or any schedule, form or report under the Exchange Act
disclosing that such person or group has become the direct or indirect ultimate “beneficial
owner,” as defined in Rule 13d-3 under the Exchange Act, of the Company’s Common Equity
representing more than 50% of the voting power of the Company’s Common Equity; provided,
however, that in the case of the Tracinda Entities such triggering percentage ownership
level shall be 55% rather than 50% and shall be calculated without considering (i) any
shares of Common Stock purchased directly by any Tracinda Entity from the Company in a
primary offering on arms’ length terms at any time and from time to time following the
Closing Date or (ii) any shares of Common Stock underlying any convertible or exchangeable
securities purchased by any Tracinda Entity directly from the Company in a primary offering
on arms’ length terms at any time and from time to time following the Closing Date to the
extent a Tracinda Entity is the beneficial owner of such underlying shares;




     (b) consummation of any binding share exchange, exchange offer, tender offer,
consolidation or merger of the Company pursuant to which the Common Stock will be converted
into cash, securities or other property or any sale, lease or other transfer in one
transaction or a series of transactions of all or substantially all of the consolidated
assets of the Company and its Subsidiaries, taken as a whole, to any Person other than one
or more of the Company’s Subsidiaries (any such exchange, offer, consolidation, merger,
transaction or series of transactions being referred to herein as an “event”); provided,
however, that any such event where the holders of more than 50% of the outstanding shares of
Common Stock immediately prior to such event, own, directly or indirectly, more than 50% of
all classes of common equity of the continuing or surviving person or transferee or the
parent thereof immediately after such event shall not be a Fundamental Change;




     (c) the first day on which Continuing Directors cease to constitute at least a majority
of the Board of Directors of the Company;




     (d) the stockholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company; or




     (e) the Common Stock (or other common stock into which the Notes are then convertible)
ceases to be listed on at least one U. S. national securities exchange,


provided, however, in the case of an event described in clause (b) above, if at least 90% of the
consideration, excluding cash payments for fractional shares, in the transaction or event
constituting the Fundamental Change consists of shares of Publicly Traded Securities, and as a
result of the transaction or event, the Notes become convertible into such Publicly Traded
Securities, excluding cash payments for fractional shares, such event shall not be a Fundamental
Change.




          For purposes of this definition, whether a “person” is a “beneficial owner” shall be
determined in accordance with Rule 13d-3 under the Exchange Act and “person” includes any syndicate
or group that would be deemed to be a “person” under Section 13(d)(3) of the Exchange Act.







5









 








          From and after the effective time of any transaction in which the Common Stock is replaced by
the securities of another entity, should one occur, following completion of any related Make-Whole
Fundamental Change Period and any related Fundamental Change Purchase Date, references to the
Company in the definition of “Fundamental Change” above will apply to such other entity instead. A
filing that would otherwise constitute a Fundamental Change under clause (a) above will not
constitute a Fundamental Change if (x) the filing occurs in connection with a transaction in which
the Company’s Common Stock is replaced by the securities of another entity and (y) no such filing
is made or is in effect with respect to common equity representing more than 50% of the voting
power of such other entity.




          “Fundamental Change Company Notice” shall have the meaning specified in Section 16.02(b).




          “Fundamental Change Expiration Time” shall have the meaning specified in Section 16.02(b)(ix).




          “Fundamental Change Repurchase Date” shall have the meaning specified in Section 16.02(a).




          “Fundamental Change Repurchase Notice” shall have the meaning specified in Section
16.02(a)(i).




          “Fundamental Change Repurchase Price” shall have the meaning specified in Section 16.02(a).




          “Funding Guarantor” shall have the meaning specified in Section 17.04.




          “Gaming Authority” means the Nevada Gaming Commission, the Nevada State Gaming Control Board,
the Michigan Gaming Control Board, the Detroit City Council, the Mississippi Gaming Commission, the
Illinois Gaming Board or any similar commission or agency which has, or may at any time after the
date of this Indenture have, jurisdiction over the gaming activities of the Company or any of the
Subsidiary Guarantors.




          “Gaming Facility” means any gaming or pari-mutuel wagering establishment and any related
building, restaurant, hotel, theater, parking facilities, retail shops, land, golf courses and
other recreation and entertainment facilities, and vessel, barge, ship and equipment.




          “Gaming Law Redemption Date” shall have the meaning specified in Section 3.01(a)(2).




          “Gaming Laws” means the gaming laws of a jurisdiction or jurisdictions to which the Company or
a Subsidiary of the Company is, or may at any time after the date of this Indenture be, subject.




          “Gaming Licenses” means any license, permit, franchise or other authorization from any
governmental authority required on the date of this Indenture or at any time thereafter to own,
lease, operate or otherwise conduct the gaming business of the Company and its Subsidiaries.




          “Global Note” shall have the meaning specified in Section 2.06(b).




          “Guarantee” shall have the meaning specified in Section 17.01.







6









 








          “Guaranteed Obligations” shall have the meaning specified in Section 17.01.




          “Illinois Subsidiary” means Nevada Landing Partnership, an Illinois partnership.




          “Indenture” means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented.




          “Infinity World” means Infinity World Investments LLC.




          “Initial Notes” means the Notes in an aggregate principal amount not to exceed $1,150,000,000
sold to the initial purchasers as described in the Offering Memorandum.




          “Interest Payment Date” means each April 15 and October 15 of each year, beginning on October
15, 2010; provided, however, that if any Interest Payment Date falls on a date that is not a
Business Day, such payment of interest (or principal in the case of the Maturity Date) will be
postponed until the next succeeding Business Day, and no interest or other amount will be paid as a
result of such postponement.




          “Interest Record Date,” with respect to any Interest Payment Date, means the April 1 or
October 1 (whether or not such day is a Business Day) immediately preceding the relevant Interest
Payment Date, respectively.




          “Issue Date” means the date hereof.




          “IW Notes” shall have the meaning specified in Section 5.06(d).




          “Last Reported Sale Price” of the Common Stock on any date means the closing sale price per
share (or if no closing sale price is reported, the average of the bid and ask prices or, if more
than one in either case, the average of the average bid and the average ask prices) on that date as
reported in composite transactions for the principal U.S. securities exchange on which the Common
Stock is listed for trading. The Last Reported Sale Price will be determined without reference to
after-hours or extended market trading. If the Common Stock is not listed for trading on a U.S.
securities exchange on the relevant date, then the “Last Reported Sale Price” of the Common Stock
will be the last quoted bid price for the Common Stock in the over-the-counter market on the
relevant date as reported by Pink OTC Markets Inc. or similar organization. If the Common Stock is
not so quoted, the “Last Reported Sale Price” of the Common Stock will be determined by a U.S.
nationally recognized independent investment banking firm selected by the Company for this purpose.




          “Make-Whole Conversion Rate Adjustment” shall have the meaning specified in Section 15.03(a).




          “Make-Whole Fundamental Change” means any transaction or event that constitutes a Fundamental
Change under clause (a), (b), (d) or (e) of the definition thereof (in the case of any Fundamental
Change described in clause (b) of the definition thereof, determined without regard to the proviso
in such clause (b)). For the avoidance of doubt, a transaction or event does not constitute a
Fundamental Change if at least 90% of the consideration, excluding cash payments for fractional
shares, in the transaction or event constituting the Fundamental Change consists of shares of
Publicly Traded Securities, and as a result of the transaction or event, the Notes become
convertible into such Publicly Traded Securities, excluding cash payments for fractional shares.







7









 








          “Make-Whole Fundamental Change Period” shall have the meaning specified in Section 15.03(a).




          “Mandalay” means Mandalay Resort Group, a Nevada corporation.




          “Mandalay Notes” means (i) Mandalay’s 6.375% Senior Notes due 2011; (ii) Mandalay’s Floating
Rate Convertible Senior Debentures due 2033; (iii) Mandalay’s 7.0% Debentures due 2036; and (iv)
Mandalay’s 6.7% Debentures due 2096.




          “Market Disruption Event” means (a) a failure by the primary exchange or quotation system on
which the Common Stock trades or is quoted, as the case may be, to open for trading during its
regular trading session or (b) the occurrence or existence prior to 1:00 p.m., New York City time,
on any Trading Day for the Common Stock of an aggregate one-half hour period, of any suspension or
limitation imposed on trading (by reason of movements in price exceeding limits permitted by the
stock exchange or otherwise) in the Common Stock or in any options, contracts or future contracts
relating to the Common Stock.




          “Maturity Date” means April 15, 2015.




          “Maximum Extension Date” shall have the meaning specified in Section 15.11(a).




          “Merger Event” shall have the meaning specified in Section 15.06.




          “Note” or “Notes” means any note or notes, as the case may be, authenticated and delivered
under this Indenture.




          “Noteholder” or “holder,” as applied to any Note, or other similar terms (but excluding the
term “beneficial holder”), means any person in whose name at the time a particular Note is
registered on the Note Register.




          “Note Register” shall have the meaning specified in Section 2.06(a).




          “Note Registrar” shall have the meaning specified in Section 2.06(a).




          “Notice of Conversion” shall have the meaning specified in Section 15.02(b).




          “Offering Memorandum” means the final offering memorandum dated April 15, 2010 relating to the
offering and sale of the Notes.




          “Officer” means, with respect to the Company, (i) the Chairman of the Board, any Vice Chairman
of the Board, the Chief Executive Officer, the President, any Vice President or the Chief Financial
Officer, and (ii) the Treasurer or any Assistant Treasurer, or the Secretary or any Assistant
Secretary.




          “Officers’ Certificate” means a certificate signed by two officers of the Company, one of whom
must be the principal executive officer, the principal financial officer or the principal
accounting officer of the Company. Each Officers’ Certificate (other than certificates provided
pursuant to TIA Section 314(a)(4)) shall include the statements provided for in TIA Section 314(e).




          “opening of business” means 9:00 a.m. (New York City time).







8









 








          “Opinion of Counsel” means an opinion in writing signed by legal counsel, who may be an
employee of or counsel to the Company, or other counsel acceptable to the Trustee, that is
delivered to the Trustee. Each such opinion shall include the statements provided for in Section
18.05 if and to the extent required by the provisions of such Section.




          “outstanding,” when used with reference to Notes, means, subject to the provisions of Section
9.04, as of any particular time, all Notes authenticated and delivered by the Trustee under this
Indenture, except:





     (a) Notes theretofore canceled by the Trustee or accepted by the Trustee for
cancellation;




     (b) Notes that have been paid pursuant to Section 2.07 or Notes in lieu of which, or in
substitution for which, other Notes shall have been authenticated and delivered pursuant to
the terms of Section 2.07 unless proof satisfactory to the Trustee is presented that any
such Notes are held by protected purchasers in due course;




     (c) Notes that have become due and payable, whether at the Maturity Date, any
Fundamental Change Repurchase Date, any Gaming Law Redemption Date, upon conversion or
otherwise, for which the Company has deposited with the Trustee or delivered to Noteholders,
as applicable, cash or cash and shares of Common Stock sufficient to pay all of the
outstanding Notes and all other sums due payable under this Indenture by the Company; and




     (d) Notes converted pursuant to Article 15.



          “Paying Agent” shall have the meaning specified in Section 5.02.




          “Person” means an individual, a corporation, a limited liability company, an association, a
partnership, a joint venture, a joint stock company, a trust, an unincorporated organization or a
government or an agency or a political subdivision thereof.




          “Predecessor Note” of any particular Note means every previous Note evidencing all or a
portion of the same debt as that evidenced by such particular Note; and, for the purposes of this
definition, any Note authenticated and delivered under Section 2.07 in lieu of or in exchange for a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note that it replaces.




          “Publicly Traded Securities” means shares of common stock that are traded on a national
securities exchange or that will be so traded when issued or exchanged in connection with a
Fundamental Change described in clause (b) of the definition thereof.




          “Record Date” shall have the meaning specified in Section 15.04(f).




          “Reference Debt” means, as of any date, the Existing Senior Notes, the Credit Facility and any
equivalent indebtedness of the Company (other than the Notes) existing on such date.




          “Reference Property” shall have the meaning specified in Section 15.06(b).




          “Resale Restriction Termination Date” shall have the meaning specified in Section 2.06(d).







9









 








          “Responsible Officer” means, when used with respect to the Trustee, any officer within the
corporate trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee, who
shall have direct responsibility for the administration of this Indenture or to whom any corporate
trust matter is referred because of such person’s knowledge of and familiarity with the particular
subject.




          “Restricted Global Note” shall have the meaning specified in Section 2.12.




          “Restricted Securities” shall have the meaning specified in Section 2.06(d).




          “Rule 144A” means Rule 144A as promulgated under the Securities Act.




          “Scheduled Trading Day” means any day that is scheduled to be a Trading Day.




          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.




          “Settlement Date” shall have the meaning specified in Section 15.02(c).




          “Settlement Extension” shall have the meaning specified in Section 15.11(a).




          “Spin-Off” shall have the meaning specified in Section 15.04(c).




          “Stock Price” means (a) in the case of a Make-Whole Fundamental Change described in clause (b)
of the definition of Fundamental Change in which holders of Common Stock receive solely cash
consideration in connection with such Make-Whole Fundamental Change, the amount of cash paid per
share of the Common Stock and (b) in the case of all other Make-Whole Fundamental Changes, the
average of the Last Reported Sale Prices per share of Common Stock over the period of five
consecutive Trading Days ending on, and including, the Trading Day immediately preceding the
Effective Date of such Make-Whole Fundamental Change. The Board of Directors of the Company will
make appropriate adjustments, in its good faith determination, to account for any adjustment to the
Conversion Rate that becomes effective, or any event requiring an adjustment to the Conversion Rate
where the Ex-Dividend Date of the event occurs, during such five consecutive Trading Day period.




          “Subsidiary” means, with respect to any Person, any corporation, association, partnership or
other business entity of which more than 50% of the total voting power of shares of Capital Stock
or other interests (including partnership interests) entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, general partners or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i) such Person; (ii) such
Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of such
Person.




          “Subsidiary Guarantor” means (i) each Subsidiary of the Company identified as a Subsidiary
Guarantor on the signature pages hereof and (ii) each other Wholly-Owned Subsidiary that becomes a
Subsidiary Guarantor in accordance with Section 5.09 or by executing a supplemental indenture in
which such Wholly-Owned Subsidiary agrees to be bound by the terms of this Indenture as a
Subsidiary Guarantor, together with their permitted successors and assigns; provided that if the
Guarantee of a Subsidiary Guarantor is withdrawn or cancelled pursuant to Section 5.09(b), such
Subsidiary Guarantor shall cease to be a Subsidiary Guarantor hereunder; provided further that
until such time as the Illinois Subsidiary receives required approval from the Illinois Gaming
Board to act as a Subsidiary Guarantor of the Notes, the Illinois Subsidiary shall not be a
Subsidiary Guarantor hereunder.







10









 








          “Successor Company” shall have the meaning specified in Section 12.01(a).




          “Tracinda Entity” means Tracinda Corporation, a Nevada corporation, or any of its Affiliates.




          “Trading Day” means a day during which trading in the Common Stock generally occurs on the
primary exchange or quotation system on which Common Stock then trades or is quoted and there is no
Market Disruption Event. If the Common Stock (or other security for which a Last Reported Sale
Price must be determined) is not so traded or quoted, “Trading Day” means “Business Day.”




          “transfer” shall have the meaning specified in Section 2.06(d).




          “Trigger Event” shall have the meaning specified in Section 15.04(c).




          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as it was in force at
the date of execution of this Indenture, except as provided in Section 11.03 and Section 15.06;
provided, however, that in the event the Trust Indenture Act of 1939 is amended after the date
hereof, the term “Trust Indenture Act” shall mean, to the extent required by such amendment, the
Trust Indenture Act of 1939, as so amended.




          “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder.




          “Unrestricted Global Note” shall have the meaning specified in Section 2.12.




          “Valuation Period” shall have the meaning specified in Section 15.04(c).




          “Weighted Average Consideration” shall have the meaning specified in Section 15.06(c)(ii).




          “Wholly-Owned Subsidiary” shall have the meaning specified in Section 5.09(a).




ARTICLE 2

ISSUE, DESCRIPTION, EXECUTION, REGISTRATION

AND EXCHANGE OF NOTES




          Section 2.01. Designation and Amount. The Notes shall be designated as the “4.25% Convertible
Senior Notes due 2015.” The aggregate principal amount of Notes that may be authenticated and
delivered under this Indenture is initially limited to $1,150,000,000, subject to Section 2.11 and
except for Notes authenticated and delivered upon registration or transfer of, or in exchange for,
or in lieu of other Notes pursuant to Section 2.06, Section 2.07, Section 2.08, Section 2.12,
Section 11.04, Section 15.02 and Section 16.04 hereof.




          Section 2.02. Form of Notes. The Notes and the Trustee’s certificate of authentication to be
borne by such Notes shall be substantially in the respective forms set forth in Exhibit A, which
are incorporated in and made a part of this Indenture.




          Any Global Note may be endorsed with or have incorporated in the text thereof such legends or
recitals or changes not inconsistent with the provisions of this Indenture as may be required by






11









 







the Custodian, the Depositary, any regulatory body or as may be required for the Notes to be
tradable on any other market developed for trading of securities pursuant to Rule 144A or required
to comply with any applicable law or any regulation thereunder or with the rules and regulations of
any securities exchange or automated quotation system upon which the Notes may be listed or traded
or designated for issuance or to conform with any usage with respect thereto, or to indicate any
special limitations or restrictions to which any particular Notes are subject.




          Any of the Notes may have such letters, numbers or other marks of identification and such
notations, legends or endorsements as the Officers executing the same may approve (execution
thereof to be conclusive evidence of such approval) and as are not inconsistent with the provisions
of this Indenture, or as may be required to comply with any law or with any rule or regulation made
pursuant thereto or with any rule or regulation of any securities exchange or automated quotation
system on which the Notes may be listed or designated for issuance, or to conform to usage or to
indicate any special limitations or restrictions to which any particular Notes are subject.




          A Global Note shall represent such principal amount of the outstanding Notes as shall be
specified therein and shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be increased or reduced to reflect
repurchases, conversions, transfers or exchanges permitted hereby. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the amount of outstanding Notes
represented thereby shall be made by the Trustee or the Custodian, at the direction of the Trustee,
in such manner and upon instructions given by the holder of such Notes in accordance with this
Indenture. Payment of principal (including any Fundamental Change Repurchase Price), accrued and
unpaid interest and Additional Interest, if any, on a Global Note shall be made to the holder of
such Note on the date of payment, unless a record date or other means of determining holders
eligible to receive payment is provided for herein.




          The terms and provisions contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable,
the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.




          Section 2.03. Date and Denomination of Notes; Payments of Interest. The Notes shall be
issuable in registered form without coupons in minimum denominations of $1,000 principal amount and
in integral multiples of $1,000 in excess thereof. Each Note shall be dated the date of its
authentication and shall bear interest from the date specified on the face of the form of Note
attached as Exhibit A hereto. Interest (including Additional Interest, if any) on the Notes shall
be computed on the basis of a 360-day year comprised of twelve 30-day months.




          The Person in whose name any Note (or its Predecessor Note) is registered on the Note Register
at the close of business on any Interest Record Date with respect to any Interest Payment Date
shall be entitled to receive the interest payable on such Interest Payment Date. Interest
(including Additional Interest, if any) shall be payable at the office or agency of the Company
maintained by the Company for such purposes in The Borough of Manhattan, New York City, which shall
initially be the office of the Paying Agent. The Company shall pay interest (including Additional
Interest, if any) (a) on any Notes in certificated form by check mailed to the address of the
Person entitled thereto as it appears in the Note Register or (b) on any Global Note by wire
transfer of immediately available funds to the account of the Depositary or its nominee.







12









 








          Any Defaulted Interest shall forthwith cease to be payable to the Noteholder on the relevant
Interest Record Date by virtue of its having been such Noteholder, and such Defaulted Interest
shall be paid by the Company, at its election in each case, as provided in clause (1) or (2) below:





     (1) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on a special record date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note and the date of the proposed
payment (which shall be not less than twenty-five days after the receipt by the Trustee of
such notice, unless the Trustee shall consent to an earlier date), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate amount to
be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit on or prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted
Interest as in this clause provided. Thereupon the Company shall fix a special record date
for the payment of such Defaulted Interest which shall be not more than fifteen days and not
less than ten days prior to the date of the proposed payment, and not less than ten days
after the receipt by the Trustee of the notice of the proposed payment (unless the Trustee
shall consent to an earlier date). The Company shall promptly notify the Trustee of such
special record date and the Trustee, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the special record date
therefor to be mailed, first-class postage prepaid, to each holder at its address as it
appears in the Note Register, not less than ten days prior to such special record date.
Notice of the proposed payment of such Defaulted Interest and the special record date
therefor having been so mailed, such Defaulted Interest shall be paid to the Persons in
whose names the Notes (or their respective Predecessor Notes) are registered at the close of
business on such special record date and shall no longer be payable pursuant to the
following clause (2) of this Section 2.03.




     (2) The Company may make payment of any Defaulted Interest in any other lawful manner
not inconsistent with the requirements of any securities exchange or automated quotation
system on which the Notes may be listed or designated for issuance, and upon such notice as
may be required by such exchange or automated quotation system.



          Section 2.04. [Reserved]




          Section 2.05. Execution, Authentication and Delivery of Notes. The Notes shall be signed in
the name and on behalf of the Company by the manual or facsimile signature of its Chief Executive
Officer, President, Treasurer, Assistant Treasurer, Secretary, Assistant Secretary or any of its
Executive or Senior Vice Presidents.




          At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Notes executed by the Company to the Trustee for authentication, together with
a Company Order for the authentication and delivery of such Notes, which order shall set forth the
number of separate Note certificates, the principal amount of each of the Notes to be
authenticated, the date on which the original issue of Notes is to be authenticated, the registered
holders of the said Notes and delivery instructions, and the Trustee in accordance with such
Company Order shall authenticate and deliver such Notes, without any further action by the Company
hereunder.







13









 








          Only such Notes as shall bear thereon a certificate of authentication substantially in the
form set forth on the form of Note attached as Exhibit A hereto, executed manually or by facsimile
by an authorized officer of the Trustee (or an authenticating agent appointed by the Trustee as
provided by Section 18.10), shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose. Such certificate by the Trustee (or such an authenticating agent) upon
any Note executed by the Company shall be conclusive evidence that the Note so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of
this Indenture.




          In case any officer of the Company who shall have signed any of the Notes shall cease to be
such officer before the Notes so signed shall have been authenticated and delivered by the Trustee,
or disposed of by the Company, such Notes nevertheless may be authenticated and delivered or
disposed of as though the person who signed such Notes had not ceased to be such officer of the
Company; and any Note may be signed on behalf of the Company by such persons as, at the actual date
of the execution of such Note, shall be the proper officers of the Company, although at the date of
the execution of this Indenture any such person was not such an officer.




          Section 2.06. Exchange and Registration of Transfer of Notes; Restrictions on Transfer;
Depositary.




          (a) The Company shall cause to be kept at the Corporate Trust Office a register (the register
maintained in such office or in any other office or agency of the Company designated pursuant to
Section 5.02 being herein sometimes collectively referred to as the “Note Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall provide for the
registration of Notes and of transfers of Notes. Such register shall be in written form or in any
form capable of being converted into written form within a reasonable period of time. The Trustee
is hereby appointed “Note Registrar” for the purpose of registering Notes and transfers of Notes as
herein provided. The Company may appoint one or more co-registrars in accordance with Section
5.02.




          Upon surrender for registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such transfer set forth in this Section
2.06, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized denominations and of
a like aggregate principal amount and bearing such restrictive legends as may be required by this
Indenture.




          Notes may be exchanged for other Notes of any authorized denominations and of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office or agency
maintained by the Company pursuant to Section 5.02. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Notes that
the holder making the exchange is entitled to receive, bearing registration numbers not
contemporaneously outstanding.




          All Notes presented or surrendered for registration of transfer or for exchange, repurchase or
conversion shall (if so required by the Company, the Trustee, the Note Registrar or any
co-registrar) be duly endorsed, or be accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company and duly executed by the holder thereof or its
attorney-in-fact duly authorized in writing.




          No service charge shall be charged to the Noteholder for any exchange or registration of
transfer of Notes, but the Company or the Trustee may require payment of a sum sufficient to cover
any tax, assessments or other governmental charges that may be imposed in connection therewith as a
result of the name of the holder of the new Notes issued upon such exchange or registration of
transfer of Notes






14









 







being different from the name of the holder of the old Notes presented or surrendered for such
exchange or registration of transfer.




          None of the Company, the Trustee, the Note Registrar or any co-registrar shall be required to
exchange or register a transfer of (i) any Notes surrendered for conversion or, if a portion of any
Note is surrendered for conversion, such portion thereof surrendered for conversion or (ii) any
Notes, or a portion of any Note, surrendered for repurchase (and not withdrawn) in accordance with
Article 16 hereof.




          All Notes issued upon any registration of transfer or exchange of Notes in accordance with
this Indenture shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture as the Notes surrendered upon such registration
of transfer or exchange.




          (b) So long as the Notes are eligible for book-entry settlement with the Depositary, unless
otherwise required by law, all Notes shall be represented by one or more Notes in global form
(each, a “Global Note”) registered in the name of the Depositary or the nominee of the Depositary.
The transfer and exchange of beneficial interests in a Global Note that does not involve the
issuance of a definitive Note shall be effected through the Depositary (but not the Trustee or the
Custodian) in accordance with this Indenture (including the restrictions on transfer set forth
herein) and the procedures of the Depositary therefor.




          (c) [Reserved]




          (d) Every Note that bears or is required under this Section 2.06(d) to bear the legend set
forth in this Section 2.06(d) (together with any Common Stock issued upon conversion of the Notes
and required to bear the legend set forth in Section 2.06(e), collectively, the “Restricted
Securities”) shall be subject to the restrictions on transfer set forth in this Section 2.06(d)
(including the legend set forth below), unless such restrictions on transfer shall be eliminated or
otherwise waived by written consent of the Company, and the holder of each such Restricted
Security, by such holder’s acceptance thereof, agrees to be bound by all such restrictions on
transfer. As used in Section 2.06(d) and Section 2.06(e), the term “transfer” encompasses any
sale, pledge, transfer or other disposition whatsoever of any Restricted Security.




          Until the date (the “Resale Restriction Termination Date”), which is the later of (1) the date
that is one year after the last date of original issuance of the Initial Notes, or if later, any IW
Notes (or such other date as permitted by Rule 144 under the Securities Act or any successor
provision thereto), and (2) such later date, if any, as may be required by applicable laws, any
certificate evidencing such Note (and all securities issued in exchange therefor or substitution
thereof, other than Common Stock issued upon conversion thereof which shall bear the legend set
forth in Section 2.06(e), if applicable) shall bear a legend in substantially the following form
(unless such Notes have been transferred pursuant to a registration statement that has become or
been declared effective under the Securities Act and that continues to be effective at the time of
such transfer, pursuant to the exemption from registration provided by Rule 144 or any similar
provision then in force under the Securities Act, or unless otherwise agreed by the Company in
writing, with notice thereof to the Trustee):





THE SALE OF THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE FOLLOWING



15









 







SENTENCE. BY ITS ACQUISITION HEREOF, OR OF A BENEFICIAL OWNERSHIP HEREIN, THE
ACQUIRER: (I) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS ACTING, IS A
“QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO
EACH SUCH ACCOUNT, AND (II) AGREES (1) THAT IT WILL NOT WITHIN THE LATER OF (X) ONE
YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY
WORLD INVESTMENTS LLC’S EXERCISE OF ITS RIGHTS TO PURCHASE NOTES UNDER THE COMPANY
STOCK PURCHASE AND SUPPORT AGREEMENT, DATED AS OF AUGUST 21, 2007, BY AND BETWEEN
THE COMPANY AND INFINITY WORLD INVESTMENTS LLC) AND (Y) 90 DAYS AFTER IT CEASES TO
BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT) OF MGM
MIRAGE (THE “COMPANY”), OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE NOTES
EVIDENCED HEREBY, THE COMMON STOCK ISSUABLE UPON CONVERSION OF SUCH NOTES OR ANY
BENEFICIAL OWNERSHIP HEREIN, EXCEPT: (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF;
(B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL
BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR (D) UNDER ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
INCLUDING RULE 144, IF AVAILABLE; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF
THIS NOTE WITHIN THE LATER OF (X) SIX MONTHS (OR, IF THE COMPANY HAS NOT SATISFIED
THE CURRENT PUBLIC INFORMATION REQUIREMENTS OF RULE 144, ONE YEAR) AFTER THE LAST
DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY WORLD INVESTMENTS
LLC’S EXERCISE OF ITS RIGHTS TO PURCHASE NOTES UNDER THE COMPANY STOCK PURCHASE AND
SUPPORT AGREEMENT, DATED AS OF AUGUST 21, 2007, BY AND BETWEEN THE COMPANY AND
INFINITY WORLD INVESTMENTS LLC) AND (Y) 90 DAYS AFTER IT CEASES TO BE AN AFFILIATE
(WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE COMPANY,
FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THEY MAY REQUIRE AND MAY RELY UPON TO CONFIRM THAT SUCH TRANSFER IS
BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS. IN ANY EVENT, NO AFFILIATE OF THE COMPANY MAY RESELL THIS NOTE OTHER THAN
UNDER A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT OR
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IN
A TRANSACTION THAT RESULTS IN SUCH NOTE NO LONGER BEING “RESTRICTED SECURITIES” (AS
DEFINED UNDER RULE 144). NO REPRESENTATION IS MADE AS TO THE



16









 







AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. EACH PURCHASER AND TRANSFEREE OF THIS NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS NOTE WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND
HOLDING OF THIS NOTE AND THE COMMON STOCK ISSUABLE, UPON CONVERSION OF THIS NOTE
THAT (A) ITS PURCHASE AND HOLDING OF THIS NOTE AND THE COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS NOTE IS NOT MADE ON BEHALF OF OR WITH “PLAN ASSETS” OF ANY PLAN
SUBJECT TO TITLE I OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW OR (B) ITS
PURCHASE AND HOLDING OF THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW.



          No transfer of any Note prior to the Resale Restriction Termination Date will be registered by
the Note Registrar unless the applicable box on the completed Form of Assignment and Transfer has
been checked, in the form set forth on the reverse of the Note and attached hereto as Exhibit D.




          Any Note (or security issued in exchange or substitution therefor) as to which such
restrictions on transfer shall have expired in accordance with their terms may, upon surrender of
such Note for exchange to the Note Registrar in accordance with the provisions of this Section
2.06, be exchanged for a new Note or Notes, of like tenor and aggregate principal amount, which
shall not bear the restrictive legend required by this Section 2.06(d). The Company shall notify
the Trustee upon the occurrence of the Resale Restriction Termination Date and promptly after a
registration statement, if any, with respect to the Notes or any Common Stock issued upon
conversion of the Notes has been declared effective under the Securities Act.




          Notwithstanding any other provisions of this Indenture (other than the provisions set forth in
this Section 2.06(d)), a Global Note may not be transferred as a whole or in part except by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or
another nominee of the Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.




          The Depositary shall be a clearing agency registered under the Exchange Act. The Company
initially appoints The Depository Trust Company to act as Depositary with respect to the Global
Notes. Initially, the Global Notes shall be issued to the Depositary, registered in the name of
Cede & Co., as the nominee of the Depositary, and initially deposited with the Trustee as custodian
for the Depositary.




          If (i) the Depositary notifies the Company at any time that the Depositary is unwilling or
unable to continue as depositary for the Global Notes and a successor depositary is not appointed
within 90 days, (ii) the Depositary ceases to be registered as a clearing agency under the Exchange
Act and a successor depositary is not appointed within 90 days or (iii) an Event of Default in
respect of the Notes has occurred and is continuing, the Company will execute, and the Trustee,
upon receipt of an Officers’ Certificate and a Company Order for the authentication and delivery of
Notes, will authenticate and deliver Notes in definitive form to each such beneficial owner of the
related Notes (or a portion thereof) in an aggregate principal amount equal to the principal amount
of such Global Note, in exchange for such Global Note, and upon delivery of the Global Note to the
Trustee such Global Note shall be canceled.







17









 








          Definitive Notes issued in exchange for all or a part of the Global Notes pursuant to this
Section 2.06(d) shall be registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. Upon execution and authentication, the Trustee shall deliver such definitive
Notes to the Persons in whose names such definitive Notes are so registered.




          At such time as all interests in a Global Note have been converted, canceled, repurchased or
transferred, such Global Note shall be, upon receipt thereof, canceled by the Trustee in accordance
with its standing procedures. At any time prior to such cancellation, if any interest in a Global
Note is exchanged for definitive Notes, converted, canceled, repurchased or transferred to a
transferee who receives definitive Notes therefor or any definitive Note is exchanged or
transferred for part of such Global Note, the principal amount of such Global Note shall be
appropriately reduced or increased, as the case may be, and an endorsement shall be made on such
Global Note, by the Trustee or the Custodian, at the direction of the Trustee, to reflect such
reduction or increase.




          None of the Company, the Trustee nor any agent of the Company or the Trustee will have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests of a Global Note or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.




          (e) Until the Resale Restriction Termination Date, any stock certificate representing Common
Stock issued upon conversion of such Note shall bear a legend in substantially the following form
(unless the Note or such Common Stock has been transferred pursuant to a registration statement
that has become or been declared effective under the Securities Act and that continues to be
effective at the time of such transfer or pursuant to the exemption from registration provided by
Rule 144 under the Securities Act or any similar provision then in force under the Securities Act,
or such Common Stock has been issued upon conversion of Notes that have been transferred pursuant
to a registration statement that has become or been declared effective under the Securities Act and
that continues to be effective at the time of such transfer or pursuant to the exemption from
registration provided by Rule 144 under the Securities Act, or unless otherwise agreed by the
Company with written notice thereof to the Trustee and any transfer agent for the Common Stock):





THE SALE OF THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND ACCORDINGLY, THIS SECURITY MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF, OR OF A BENEFICIAL OWNERSHIP HEREIN, THE
ACQUIRER: (I) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS ACTING, IS A
“QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO
EACH SUCH ACCOUNT, AND (II) AGREES (1) THAT IT WILL NOT WITHIN THE LATER OF (X) ONE
YEAR AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY
WORLD INVESTMENTS LLC’S EXERCISE OF ITS RIGHTS TO PURCHASE NOTES UNDER THE COMPANY
STOCK PURCHASE AND SUPPORT AGREEMENT, DATED AS OF AUGUST 21, 2007, BY AND BETWEEN
THE COMPANY AND INFINITY WORLD INVESTMENTS LLC), UPON THE CONVERSION OF WHICH THIS
SECURITY IS ISSUED, AND (Y) 90 DAYS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE
MEANING OF RULE 144 UNDER THE SECURITIES



18









 






ACT) OF MGM MIRAGE (THE “COMPANY”), OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE
SECURITY EVIDENCED HEREBY OR ANY BENEFICIAL OWNERSHIP HEREIN, EXCEPT: (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF; (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY
BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT) THAT IS PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER
QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF AVAILABLE); OR
(D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, INCLUDING RULE 144, IF AVAILABLE; AND (2) THAT IT WILL, PRIOR TO ANY
TRANSFER OF THIS SECURITY WITHIN THE LATER OF (X) SIX MONTHS (OR, IF THE COMPANY HAS
NOT SATISFIED THE CURRENT PUBLIC INFORMATION REQUIREMENTS OF RULE 144, ONE YEAR)
AFTER THE LAST DATE OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY WORLD
INVESTMENTS LLC’S EXERCISE OF ITS RIGHTS TO PURCHASE NOTES UNDER THE COMPANY STOCK
PURCHASE AND SUPPORT AGREEMENT, DATED AS OF AUGUST 21, 2007, BY AND BETWEEN THE
COMPANY AND INFINITY WORLD INVESTMENTS LLC), UPON THE CONVERSION OF WHICH THIS
SECURITY WAS ISSUED, AND (Y) 90 DAYS AFTER IT CEASES TO BE AN AFFILIATE (WITHIN THE
MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE COMPANY, FURNISH TO THE
TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS
THEY MAY REQUIRE AND MAY RELY UPON TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. IN ANY
EVENT, NO AFFILIATE OF THE COMPANY MAY RESELL THIS SECURITY OTHER THAN UNDER A
REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT OR
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IN
A TRANSACTION THAT RESULTS IN SUCH SECURITY NO LONGER BEING “RESTRICTED SECURITIES”
(AS DEFINED UNDER RULE 144). NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF
ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. EACH
PURCHASER AND TRANSFEREE OF THIS SECURITY WILL BE DEEMED TO HAVE REPRESENTED BY ITS
PURCHASE AND HOLDING OF THIS SECURITY THAT (A) ITS PURCHASE AND HOLDING OF THIS
SECURITY IS NOT MADE ON BEHALF OF OR WITH “PLAN ASSETS” OF ANY PLAN SUBJECT TO TITLE
I OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW OR (B) ITS PURCHASE AND
HOLDING OF THIS SECURITY WLL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTON 406 OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW.



          Any such Common Stock as to which such restrictions on transfer shall have expired in
accordance with their terms may, upon surrender of the certificates representing such shares of
Common






19









 







Stock for exchange in accordance with the procedures of the transfer agent for the Common
Stock, be exchanged for a new certificate or certificates for a like aggregate number of shares of
Common Stock, which shall not bear the restrictive legend required by this Section 2.06(e).




          (f) Any Note or Common Stock issued upon the conversion or exchange of a Note that is
purchased or owned by the Company or any Affiliate thereof may not be resold by the Company or such
Affiliate unless registered under the Securities Act or resold pursuant to an exemption from the
registration requirements of the Securities Act in a transaction that results in such Notes or
Common Stock, as the case may be, no longer being “restricted securities” (as defined under Rule
144). During the period of one year after the date of the last original issuance of the Initial
Notes, or if later, any IW Notes, the Company shall not, and shall not permit any of its
“affiliates” (as defined under Rule 144) to, resell any of the Notes that have been reacquired by
any of them, except pursuant to an offering that is registered under the Securities Act.




          (g) Notwithstanding any provision of this Section 2.06 to the contrary, in the event Rule 144
as promulgated under the Securities Act (or any successor rule) is amended to change the one-year
holding period thereunder (or the corresponding period under any successor rule), from and after
receipt by the Trustee of the Officers’ Certificate and Opinion of Counsel provided for in this
Section 2.06(g), (i) each reference in Section 2.06(d) to “one year” and in the restrictive legend
set forth in such paragraph to “ONE YEAR” shall be deemed for all purposes hereof to be references
to such changed period, (ii) each reference in Section 2.06(e) to “one year” and in the restrictive
legend set forth in such paragraph to “ONE YEAR” shall be deemed for all purposes hereof to be
references to such changed period and (iii) all corresponding references in the Notes (including
the definition of Resale Restriction Termination Date) and the restrictive legends thereon shall be
deemed for all purposes hereof to be references to such changed period, provided that such changes
shall not become effective if they are otherwise prohibited by, or would otherwise cause a
violation of, the then-applicable federal securities laws. The provisions of this Section 2.06(g)
will not be effective until such time as the Opinion of Counsel and Officers’ Certificate have been
received by the Trustee hereunder. This Section 2.06(g) shall apply to successive amendments to
Rule 144 (or any successor rule) changing the holding period thereunder.




          Section 2.07. Mutilated, Destroyed, Lost or Stolen Notes. In case any Note shall become
mutilated or be destroyed, lost or stolen, the Company in its discretion may execute, and upon its
written request the Trustee or an authenticating agent appointed by the Trustee shall authenticate
and deliver, a new Note, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen. In every case the applicant for a substituted Note shall furnish to the Company,
to the Trustee and, if applicable, to such authenticating agent such security or indemnity as may
be required by them to save each of them harmless from any loss, liability, cost or expense caused
by or connected with such substitution, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the destruction, loss or theft of such Note
and of the ownership thereof.




          The Trustee or such authenticating agent may authenticate any such substituted Note and
deliver the same upon the receipt of such security or indemnity as the Trustee, the Company and, if
applicable, such authenticating agent may require. Upon the issuance of any substitute Note, the
Company or the Trustee may require the payment by the holder of a sum sufficient to cover any tax,
assessment or other governmental charge that may be imposed in relation thereto and any other
expenses connected therewith. In case any Note that has matured or is about to mature or has been
tendered for repurchase upon a Fundamental Change or is about to be converted into shares of Common
Stock shall





20











 




become mutilated or be destroyed, lost or stolen, the Company may, in its sole discretion,
instead of issuing a substitute Note, pay or authorize the payment of or convert or authorize the
conversion of the same (without surrender thereof except in the case of a mutilated Note), as the
case may be, if the applicant for such payment or conversion shall furnish to the Company, to the
Trustee and, if applicable, to such authenticating agent such security or indemnity as may be
required by them to save each of them harmless for any loss, liability, cost or expense caused by
or connected with such substitution, including, without limitation, if a Note is replaced and
subsequently presented or claimed for payment and, in every case of destruction, loss or theft,
evidence satisfactory to the Company, the Trustee and, if applicable, any Paying Agent or
Conversion Agent evidence of their satisfaction of the destruction, loss or theft of such Note and
of the ownership thereof.




          Every substitute Note issued pursuant to the provisions of this Section 2.07 by virtue of the
fact that any Note is destroyed, lost or stolen shall constitute an additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Note shall be found at any
time, and shall be entitled to all the benefits of (but shall be subject to all the limitations set
forth in) this Indenture equally and proportionately with any and all other Notes duly issued
hereunder. To the extent permitted by law, all Notes shall be held and owned upon the express
condition that the foregoing provisions are exclusive with respect to the replacement or payment or
conversion or repurchase of mutilated, destroyed, lost or stolen Notes and shall preclude any and
all other rights or remedies notwithstanding any law or statute existing or hereafter enacted to
the contrary with respect to the replacement or payment or conversion of negotiable instruments or
other securities without their surrender.




          Section 2.08. Temporary Notes. Pending the preparation of Notes in certificated form, the
Company may execute and the Trustee or an authenticating agent appointed by the Trustee shall, upon
written request of the Company, authenticate and deliver temporary Notes (printed or lithographed).
Temporary Notes shall be issuable in any authorized denomination, and substantially in the form of
the Notes in certificated form but with such omissions, insertions and variations as may be
appropriate for temporary Notes, all as may be determined by the Company. Every such temporary
Note shall be executed by the Company and authenticated by the Trustee or such authenticating agent
upon the same conditions and in substantially the same manner, and with the same effect, as the
Notes in certificated form. Without unreasonable delay the Company will execute and deliver to the
Trustee or such authenticating agent Notes in certificated form (other than any Global Note) and
thereupon any or all temporary Notes (other than any Global Note) may be surrendered in exchange
therefor, at each office or agency maintained by the Company pursuant to Section 5.02 and the
Trustee or such authenticating agent shall authenticate and deliver in exchange for such temporary
Notes an equal aggregate principal amount of Notes in certificated form. Such exchange shall be
made by the Company at its own expense and without any charge therefor. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits and subject to the same
limitations under this Indenture as Notes in certificated form authenticated and delivered
hereunder.




          Section 2.09. Cancellation of Notes Paid, Etc. All Notes surrendered for the purpose of
payment, repurchase, conversion, exchange or registration of transfer, shall, if surrendered to the
Company or any Paying Agent or any Note Registrar or any Conversion Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee, shall be promptly canceled
by it, and no Notes shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Indenture. The Trustee shall dispose of canceled Notes in accordance with its
customary procedures and, after such disposition, shall deliver a certificate of such disposition
to the Company, at the Company’s written request. If the Company shall acquire any of the Notes,
such acquisition shall not operate as satisfaction of the indebtedness represented by such Notes
unless and until the same are delivered to the Trustee for cancellation.






21









 








          Section 2.10. CUSIP Numbers. The Company in issuing the Notes may use “CUSIP” numbers (if
then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in all notices issued to
Noteholders as a convenience to them; provided, that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Notes or on
such notice and that reliance may be placed only on the other identification numbers printed on the
Notes. The Company will promptly notify the Trustee in writing of any change in the “CUSIP”
numbers. Until such time as the Company notifies the Trustee to remove the restrictive legend as
set forth in Section 2.06(d) from the Notes or a transfer of Notes from a Restricted Global Note to
an Unrestricted Global Note is otherwise made pursuant to the terms hereof, the restricted CUSIP
will be the CUSIP number for the Notes. At such time as the Company notifies the Trustee to remove
the restrictive legend as set forth in Section 2.06(d) from the Notes, such legend shall be deemed
removed from any Global Notes and an unrestricted CUSIP number for the Notes shall be deemed to be
the CUSIP number for the Notes.




          Section 2.11. Additional Notes; Repurchases. The Company may, without the consent of the
Noteholders and notwithstanding Section 2.01, reopen this Indenture and increase the principal
amount of the Notes by issuing additional Notes in the future pursuant to this Indenture with the
same terms and with the same CUSIP number as the Initial Notes then outstanding (“Additional
Notes”) in an unlimited aggregate principal amount, including any IW Notes, which will form the
same series with the Initial Notes; provided that no such Additional Notes with the same CUSIP may
be issued unless they will be fungible with the Initial Notes for U.S. federal income tax purposes.
Prior to the issuance of any such Additional Notes, the Company shall deliver to the Trustee a
Company Order, an Officers’ Certificate and an Opinion of Counsel, such Officers’ Certificate and
Opinion of Counsel to cover the matters required by Section 18.05. The Company may also from time
to time repurchase the Notes in open market purchases or negotiated transactions without prior
notice to Noteholders.




          Section 2.12. Automatic Exchange From Restricted Global Note to Unrestricted Global Note.
Beneficial interests in a Global Note that is subject to restrictions set out in Section 2.06(d)
(including the legend set forth in Section 2.06(d)) (the “Restricted Global Note”) may be
automatically exchanged, at the election of the Company, into beneficial interests in an
unrestricted Global Note that is no longer subject to the restrictions set out in Section 2.06(d)
(including removal of the legend set forth in Section 2.06(d)) (the “Unrestricted Global Note”)
without any action required by or on behalf of the Noteholder (the “Automatic Exchange”). In order
to effect such exchange, the Company shall at least 15 days but not more than thirty days prior to
the automatic exchange date, deliver a notice of Automatic Exchange (an “Automatic Exchange
Notice”) to each Noteholder at such Noteholder’s address appearing in the Note Register, with a
copy to the Trustee. The Automatic Exchange Notice shall identify the Notes subject to the
Automatic Exchange and shall state: (1) the date of the Automatic Exchange; (2) the section of this
Indenture pursuant to which the Automatic Exchange shall occur; (3) the “CUSIP” number of the
Restricted Global Note from which such Noteholders’ beneficial interests will be transferred and
(4) the “CUSIP” number of the Unrestricted Global Note into which such Noteholders’ beneficial
interests will be transferred. At the Company’s request on no less than 5 days’ prior notice, the
Trustee shall deliver, in the Company’s name and at its expense, the Automatic Exchange Notice to
each Noteholder at such Noteholder’s address appearing in the Note Register; provided, however,
that the Company shall have delivered to the Trustee an Officers’ Certificate requesting that the
Trustee give the Automatic Exchange Notice (in the name and at the expense of the Company) and
setting forth the information to be stated in the Automatic Exchange Notice as provided in the
preceding sentence. As a condition to any such exchange pursuant to this Section 2.12, the Trustee
shall be entitled to receive from the Company, and rely conclusively without any liability, upon an
Officer’s Certificate and an Opinion of Counsel to the Company, in form and in substance reasonably
satisfactory to the Trustee, to the effect that such transfer of beneficial interests to the
Unrestricted Global Note shall be effected in compliance with the Securities Act. Upon such
exchange of beneficial interests pursuant to this Section 2.12, the Registrar






22









 







shall endorse the Schedule of Increases and Decreases in Global Note to the relevant Notes and
reflect on its books and records the date of such transfer and a decrease and increase,
respectively, in the principal amount of the applicable Restricted Global Note(s) and the
Unrestricted Global Note, respectively, equal to the principal amount of beneficial interests
transferred. If an Unrestricted Global Note is not then outstanding at the time of the Automatic
Exchange, the Company shall execute and the Trustee shall authenticate and deliver an Unrestricted
Global Note to the Depositary. Following any such transfer pursuant to this Section 2.12, the
relevant Restricted Global Note shall be cancelled.




ARTICLE 3

MANDATORY DISPOSITION




          Section 3.01. Mandatory Disposition of Notes Pursuant to Gaming Laws.




          (a) Each Noteholder or beneficial owner, by accepting or otherwise acquiring an interest in
the Notes, shall be deemed to have agreed that if the Gaming Authority of any jurisdiction in which
the Company or any of its Subsidiaries conducts or proposes to conduct gaming activities requires
that a Person who is a Noteholder or beneficial owner must be licensed, qualified or found suitable
under the applicable Gaming Laws, such Noteholder or beneficial owner, as the case may be, shall
apply for a license, qualification or a finding of suitability within the required time period in
accordance with such Gaming Laws. If such Person fails to apply or become licensed or qualified or
is found unsuitable (a “Disqualified Holder”), then the Company shall have the right, at its
option, notwithstanding any other provision of this Indenture:





     (1) to require such Person to dispose of its Notes or beneficial interest therein
within 30 calendar days of receipt of notice of the Company’s election or such earlier date
as may be requested or prescribed by such Gaming Authority; or




     (2) to redeem such Notes, which redemption date may be less than 30 calendar days
following the notice of redemption if so requested or prescribed by the Gaming Authority
(the “Gaming Law Redemption Date”), at a redemption price equal to:




     (i) the lesser of:




     (A) the Person’s cost, plus accrued and unpaid interest, if any, to the earlier of the
Gaming Law Redemption Date or the date of the finding of unsuitability or failure to comply;
and




     (B) 100% of the principal amount thereof, plus accrued and unpaid interest to the
earlier of the Gaming Law Redemption Date or the date of the finding of unsuitability or
failure to comply; or




     (ii) such other amount as may be required by applicable Gaming Laws or by order of the
applicable Gaming Authority.



          (b) The Company shall notify the Trustee in writing of any such Disqualified Holder status or
redemption as soon as practicable. The Company shall not be responsible for any costs or expenses
any such Holder or beneficial owner may incur in connection with its application for a license,
qualification or a finding of suitability. Notwithstanding any other provision of this Indenture,
immediately upon the imposition of a requirement to dispose of Notes by a Gaming Authority, such
Person shall, to the extent required by applicable Gaming Laws, have no further right (i) to
exercise, directly or indirectly, through any trustee, nominee or any other person or entity, any
right conferred by such Notes or (ii) to receive any interest, dividends or any other distributions
or payments with respect to






23









 







such Notes or any remuneration in any form with respect to such Notes from the Company or the
Trustee, except the redemption price. Additionally, to the extent required by applicable Gaming
Laws, Notes held by a Disqualified Holder shall, so long as held by such Person, be disregarded for
the purposes of providing notices, directions, waivers, or other actions and determining the
sufficiency of such notices, directions, waivers or actions.




ARTICLE 4

SATISFACTION AND DISCHARGE




          Section 4.01. Satisfaction and Discharge. This Indenture shall upon request of the Company
contained in an Officers’ Certificate cease to be of further effect, and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge
of this Indenture, when (a) (i) all Notes theretofore authenticated and delivered (other than (x)
Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 2.07 and (y) Notes for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 5.04(d)) have been delivered to the Trustee for cancellation; or
(ii) the Company has deposited with the Trustee or delivered to Noteholders, as applicable, after
the Notes have become due and payable, whether at the Maturity Date, any Gaming Law Redemption
Date, any Fundamental Change Repurchase Date, upon conversion or otherwise, cash sufficient to pay
all of the outstanding Notes (or in the case of conversions, shares of Common Stock and cash for
payments in lieu of fractional shares sufficient to satisfy the Conversion Obligation) and all
other sums due payable under this Indenture by the Company; and (b) the Company has delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this Indenture have
been complied with. Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 8.06 shall survive.




ARTICLE 5

PARTICULAR COVENANTS OF THE COMPANY




          Section 5.01. Payment of Principal, Interest and Additional Interest. The Company covenants
and agrees that it will cause to be paid the principal of (including the Fundamental Change
Repurchase Price), and accrued and unpaid interest and Additional Interest, if any, on each of the
Notes at the places, at the respective times and in the manner provided herein and in the Notes.
Each installment of accrued and unpaid interest, and Additional Interest, if any, on the Notes due
may be paid by mailing checks for the amount payable to Noteholders entitled thereto as they shall
appear on the registry books of the Company; provided that payment of accrued and unpaid interest
and Additional Interest, if any, made to the Depositary shall be paid by wire transfer in
immediately available funds in accordance with such wire transfer instructions and other procedures
provided by the Depositary from time to time.




          Section 5.02. Maintenance of Office or Agency. The Company will maintain in the Borough of
Manhattan, New York City, an office or agency where the Notes in certificated form may be
surrendered for registration of transfer or exchange or for presentation for payment or repurchase
(“Paying Agent”) or for conversion (“Conversion Agent”). Except for the surrender or presentation
of Notes in certificated form as described in the preceding sentence, the Corporate Trust Office
will be the office where notices and demands to or upon the Company in respect of the Notes and
this Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency maintained in the Borough of
Manhattan, New York City. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the






24









 







Trustee with the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office.




          The Company may also from time to time designate co-registrars, one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such purposes and may from
time to time rescind such designations; provided that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, New York City, to facilitate the surrender or presentation of Notes in certificated
form. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency. The terms “Paying
Agent” and “Conversion Agent” include any such additional or other offices or agencies, as
applicable.




          The Company hereby initially designates the Trustee as the Paying Agent, Note Registrar,
Custodian and Conversion Agent.




          Section 5.03. Appointments to Fill Vacancies in Trustee’s Office. The Company, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided
in Section 8.10, a Trustee, so that there shall at all times be a Trustee hereunder.




          Section 5.04. Provisions as to Paying Agent.




          (a) If the Company shall appoint a Paying Agent other than the Trustee, the Company will cause
such Paying Agent to execute and deliver to the Trustee an instrument in which such agent shall
agree with the Trustee, subject to the provisions of this Section 5.04:





     (i) that it will hold all sums held by it as such agent for the payment of the
principal of and accrued and unpaid interest and Additional Interest, if any, on the Notes
in trust for the benefit of the holders of the Notes;




     (ii) that it will give the Trustee prompt notice of any failure by the Company to make
any payment of the principal of and accrued and unpaid interest and Additional Interest, if
any, on the Notes when the same shall be due and payable; and




     (iii) that at any time during the continuance of an Event of Default, upon request of
the Trustee, it will forthwith pay to the Trustee all sums so held in trust.



          The Company shall, on or before each due date of the principal of (including the Fundamental
Change Repurchase Price), or accrued and unpaid interest or Additional Interest, if any, on the
Notes, deposit with the Paying Agent a sum sufficient to pay such principal (including the
Fundamental Change Repurchase Price), or accrued and unpaid interest or Additional Interest, if
any, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of
any failure to take such action; provided that if such deposit is made on the due date, such
deposit must be received by the Paying Agent by 11:00 a.m., New York City time, on such date.




          (b) If the Company shall act as its own Paying Agent, it will, on or before each due date of
the principal of (including the Fundamental Change Repurchase Price), accrued and unpaid interest
and Additional Interest, if any, on the Notes, set aside, segregate and hold in trust for the
benefit of the holders of the Notes a sum sufficient to pay such principal (including the
Fundamental Change Repurchase Price), accrued and unpaid interest and Additional Interest, if any,
so becoming due and will promptly notify the Trustee in writing of any failure to take such action
and of any failure by the Company to make any payment of the principal of (including the
Fundamental Change Repurchase






25









 







Price), accrued and unpaid interest and Additional Interest, if any, on the Notes when the
same shall become due and payable.




          (c) Anything in this Section 5.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge of this Indenture, or for any other
reason, pay or cause to be paid to the Trustee all sums held in trust by the Company or any Paying
Agent hereunder as required by this Section 5.04, such sums to be held by the Trustee upon the
trusts herein contained, and upon such payment by the Company or any Paying Agent to the Trustee,
the Company or such Paying Agent shall be released from all further liability with respect to such
sums.




          (d) Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of (including the Fundamental Change Repurchase Price),
accrued and unpaid interest and Additional Interest, if any, on any Note and remaining unclaimed
for two years after such principal (including the Fundamental Change Repurchase Price), interest or
Additional Interest has become due and payable shall be paid to the Company on request of the
Company contained in an Officers’ Certificate, or (if then held by the Company) shall be discharged
from such trust; and the holder of such Note shall thereafter, as an unsecured general creditor,
look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent
with respect to such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to
make any such repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each Business Day and of
general circulation in The Borough of Manhattan, New York City, New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be less than thirty
days from the date of such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.




          Section 5.05. Existence. Subject to Article 12, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate existence.




          Section 5.06. Rule 144A Information Requirement and Annual Reports.




          (a) At any time the Company is not subject to Section 13 or 15(d) of the Exchange Act, the
Company shall, so long as any of the Notes or any shares of Common Stock issuable upon conversion
thereof shall, at such time, constitute “restricted securities” within the meaning of Rule
144(a)(3) under the Securities Act, promptly furnish to the Trustee and shall, upon written
request, provide to any holder, beneficial owner or prospective purchaser of such Notes or any
shares of Common Stock issued upon conversion of such Notes, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act to facilitate the resale of such
Notes or shares of Common Stock pursuant to Rule 144A under the Securities Act. The Company shall
take such further action as any holder or beneficial owner of such Notes or such Common Stock may
reasonably request to the extent required from time to time to enable such holder or beneficial
holder to sell such Notes or shares of Common Stock in accordance with Rule 144A under the
Securities Act, as such rule may be amended from time to time.




          (b) The Company shall deliver to the Trustee within fifteen days after the same is required to
be filed with the Commission, copies of the quarterly and annual reports and of the information,
documents and other reports, if any, that the Company is required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act (giving effect to any grace period provided by
Rule 12b-25 under the Exchange Act), and the Company shall otherwise comply with the requirements
of Trust Indenture Act Section 314(a). Any such report, information or document that the






26









 







Company files with the Commission through the Commission’s EDGAR database shall be deemed
furnished to the Trustee for purposes of this Section 5.06(b) at the time of such filing through
the EDGAR database.




          (c) Delivery of the reports, information and documents described in clause (b) above to the
Trustee is for informational purposes only, and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from information contained
therein, including the Company’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to conclusively rely exclusively on an Officers’ Certificate).




          (d) If, at any time during the six-month period beginning on, and including, the date that is
six months after the date of the last original issuance of the Initial Notes, or, if later, any
Additional Notes the Company issues to Infinity World (the “IW Notes”) pursuant to the pro rata
share purchase rights set forth in the Company Stock Purchase and Support Agreement, dates as of
August 21, 2007, between Infinity World and the Company, the Company fails to timely file any
document or report that the Company is required to file with the Commission pursuant to Section 13
or 15(d) of the Exchange Act, as applicable (other than current reports on Form 8-K), or the Notes
are not otherwise freely tradable by holders other than the Company’s affiliates (as a result of
restrictions pursuant to U.S. securities law or the terms of this Indenture or the Notes), the
Company shall pay Additional Interest on the Notes. Such Additional Interest will accrue on the
Notes at an annual rate of 0.50% per annum of the principal amount of Notes outstanding for each
day during such period for which the Company’s failure to file continues.




          (e) If, at any time after the 365th day after the date of the last original issuance of the
Initial Notes, or if later, any IW Notes, (i) the restrictive legend on the Notes has not been
removed in accordance with Section 2.06(d) or Section 2.12, and (ii) the Notes are not freely
tradable pursuant to Rule 144 without volume restrictions by holders other than the Company’s
Affiliates (without restrictions pursuant to U.S. securities law or the terms of this Indenture or
the Notes), the Company shall pay Additional Interest on the Notes. Such Additional Interest will
accrue on the Notes at an annual rate of 0.50% per annum of the principal amount of Notes
outstanding for each day after the 365th day after the date of the last original issuance of the
Initial Notes, or if later, any IW Notes, until (i) the restrictive legend on the Notes has been
removed in accordance with Section 2.06(d) or Section 2.12, and (ii) the Notes are freely tradable
pursuant to Rule 144 without volume restrictions by holders other than the Company’s Affiliates
(without restrictions pursuant to U.S. securities law or the terms of this Indenture or the Notes).




          (f) Additional Interest payable in accordance with Section 5.06(d) or (e) will be payable in
arrears on each Interest Payment Date following accrual in the same manner as regular interest on
the Notes.




          Section 5.07. Stay, Extension and Usury Laws. The Company covenants (to the extent that it
may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay, extension or usury law or other law that would
prohibit or forgive the Company from paying all or any portion of the principal of or interest on
the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or that
may affect the covenants or the performance of this Indenture; and the Company (to the extent it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every such power as
though no such law had been enacted.







27









 








          Section 5.08. Compliance Certificate; Statements as to Defaults. The Company shall deliver to
the Trustee within 120 days after the end of each Fiscal Year (beginning with the Fiscal Year
ending on December 31, 2010) an Officers’ Certificate stating whether or not the signer thereof has
knowledge of any failure by the Company to comply with all conditions and covenants then required
to be performed under this Indenture and, if so, specifying each such failure and the nature
thereof.




          In addition, the Company shall deliver to the Trustee, as soon as possible, and in any event
within thirty days after the Company becomes aware of the occurrence of any Event of Default or
Default, an Officers’ Certificate setting forth the details of such Event of Default or Default,
its status and the action that the Company proposes to take with respect thereto.




          Section 5.09. Guarantee.




          (a) The Company shall (i) cause each Subsidiary of the Company that is a guarantor of
Reference Debt to become, on the Issue Date or, if such Subsidiary was not a guarantor of Reference
Debt as of the Issue Date but thereafter becomes a guarantor of Reference Debt (whether or not such
Subsidiary is acquired or created after the Issue Date) and is wholly-owned, directly or
indirectly, by the Company (a “Wholly-Owned Subsidiary”), at the time such Wholly-Owned Subsidiary
guarantees any Reference Debt, a guarantor of the obligations of the Company under this Indenture
and the Notes by executing this Indenture (directly, by supplemental indenture or by a joinder
agreement, a form of which is attached hereto as Exhibit E) as a Subsidiary Guarantor or by
executing a Guarantee in substantially the form of Article 17 hereof; provided that the provision
of a Guarantee by a Wholly-Owned Subsidiary after the Issue Date shall be subject to compliance
with any applicable Gaming Laws and the Company agrees that (subject to Section 5.09(b)) it shall
not have any such Wholly-Owned Subsidiary become a guarantor of Reference Debt unless it is
permitted to give such Guarantee under applicable Gaming Laws); and (ii) deliver to the Trustee an
Opinion of Counsel that such Guarantee is the valid, binding and enforceable obligation of such
Subsidiary Guarantor, subject to customary exceptions for bankruptcy, fraudulent transfer and
equitable principles.




          (b) The actions set forth in Section 5.09(a) hereof shall be taken within 10 days of the time
on which any Person is required to become a Subsidiary Guarantor pursuant to such Section 5.09(a),
provided that if such Person is not permitted to give a Guarantee under applicable Gaming Laws,
then, such 10-day period shall be extended as long as necessary for the Company to, and the Company
shall continue to use reasonable best efforts to, obtain the requisite consents for such Guarantee
from the applicable Gaming Authority. If any Subsidiary Guarantor no longer guarantees any
Reference Debt at any time, then such Subsidiary Guarantor shall be released from its obligations
under its Guarantee, and the Trustee shall execute any documents reasonably required in order to
evidence the release of such Subsidiary Guarantor from its obligations under its Guarantee upon
delivery by the Company to the Trustee of an Officers’ Certificate or an Opinion of Counsel to the
effect that such conditions to release such Guarantee have been satisfied.




          (c) The Company will not permit any Wholly-Owned Subsidiary to guarantee any Reference Debt
(whether or not such Subsidiary is acquired or created after the Issue Date) without making
effective provision for such Wholly-Owned Subsidiary to become a Subsidiary Guarantor under this
Indenture.




          Section 5.10. Further Instruments and Acts. Upon request of the Trustee, the Company will
execute and deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purposes of this Indenture.







28









 








ARTICLE 6

LISTS OF NOTEHOLDERS AND REPORTS BY

THE COMPANY AND THE TRUSTEE




          Section 6.01. Lists of Noteholders. The Company covenants and agrees that it will furnish or
cause to be furnished to the Trustee, semi-annually, not more than fifteen days after each April 1
and October 1 in each year, beginning with October 1, 2010, and at such other times as the Trustee
may request in writing, within thirty days after receipt by the Company of any such request (or
such lesser time as the Trustee may reasonably request in order to enable it to timely provide any
notice to be provided by it hereunder), a list in such form as the Trustee may reasonably require
of the names and addresses of the Noteholders as of a date not more than fifteen days (or such
other date as the Trustee may reasonably request in order to so provide any such notices) prior to
the time such information is furnished, except that no such list need be furnished so long as the
Trustee is acting as Note Registrar.




          Section 6.02. Preservation and Disclosure of Lists.




          (a) The Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the Noteholders contained in the most recent list
furnished to it as provided in Section 6.01 or maintained by the Trustee in its capacity as Note
Registrar, if so acting. The Trustee may destroy any list furnished to it as provided in Section
6.01 upon receipt of a new list so furnished.




          (b) The rights of Noteholders to communicate with other Noteholders with respect to their
rights under this Indenture or under the Notes and the corresponding rights and duties of the
Trustee, shall be as provided by the Trust Indenture Act.




          (c) Every holder of a Note, by receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to names and addresses of Noteholders
made pursuant to the Trust Indenture Act.




          Section 6.03. Reports by Trustee.




          (a) The Trustee shall transmit to holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within sixty days after each April 15 following the date of this Indenture, deliver
to holders a brief report, dated as of such April 15, that complies with the provisions of such
Section 313(a).




          (b) A copy of each such report shall, at the time of such transmission to Noteholders, be
filed by the Trustee with each stock exchange and automated quotation system upon which the Notes
are listed and with the Company. The Company will notify the Trustee in writing within a
reasonable time when the Notes are listed on any stock exchange or automated quotation system and
when any such listing is discontinued.




ARTICLE 7

DEFAULTS AND REMEDIES




          Section 7.01. Events of Default. Each of the following shall be an “Event of Default”:







29









 








          (a) default in the payment in respect of the principal of any Note at its maturity, upon
required repurchase, upon declaration of acceleration or otherwise;




          (b) default in the payment of any interest (including any Additional Interest) upon any Note
when it becomes due and payable, and continuance of such default for a period of 30 days;




          (c) default in the performance, or breach, of any covenant or agreement by the Company or any
Subsidiary Guarantor in this Indenture (other than a covenant or agreement a default in whose
performance or whose breach is specifically dealt with in clauses (a), (b), (f) or (g) of this
Section 7.01), and continuance of such default or breach for a period of 60 days after written
notice thereof has been given to the Company by the Trustee or to the Company and the Trustee by
the holders of at least 25% in aggregate principal amount of the outstanding Notes;




          (d) a default or defaults under any bonds, debentures, notes or other evidences of
indebtedness (other than the Notes) by the Company or any Subsidiary Guarantors having,
individually or in the aggregate, a principal or similar amount outstanding of at least $250.0
million, whether such indebtedness now exists or shall hereafter be created, which default or
defaults shall have resulted in the acceleration of the maturity of such indebtedness prior to its
express maturity or shall constitute a failure to pay at least $250.0 million of such indebtedness
when due and payable after the expiration of any applicable grace period with respect thereto;




          (e) the entry against the Company or any Subsidiary Guarantors of a final judgment or final
judgments for the payment of money in an aggregate amount in excess of $100.0 million, by a court
or courts of competent jurisdiction, which judgments remain undischarged, unwaived, unstayed,
unbonded or unsatisfied for a period of 60 consecutive days after written notice thereof has been
given to the Company by the Trustee or to the Trustee and the Company by the holders of at least
25% in aggregate principal amount of the Notes then outstanding;




          (f) the failure to comply with the obligations to convert the Notes into Common Stock upon
exercise of a holder’s conversion right; provided, however, that any Settlement Extension permitted
under the terms of this Indenture shall not constitute such a failure;




          (g) the failure to timely issue a Fundamental Change Company Notice in accordance with Section
16.02(b);




          (h) the Guarantee of any Subsidiary Guarantors shall for any reason cease to be in full force
and effect or be declared null and void, in each case for a period of 15 calendar days after such
Subsidiary Guarantor receives, or the Company receives, notice of such cessation or declaration or
any responsible officer of any such Subsidiary Guarantor denies that it has any further liability
under its Guarantee or gives notice to such effect, other than by reason of the termination of this
Indenture or the release of any such Guarantee in accordance with the terms of this Indenture; or




          (i) (i) the Company or any Subsidiary Guarantor, pursuant to or within the meaning of any
Bankruptcy Law:





     (a) commences a voluntary case,




     (b) consents to the entry of an order for relief against it in an involuntary
case,



30









 






     (c) consents to the appointment of a custodian of it or for all or
substantially all of its property,




     (d) makes a general assignment for the benefit of its creditors, or




     (e) generally is not paying its debts as they become due; or




     (ii) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:




     (a) is for relief against the Company or any Subsidiary Guarantor in an
involuntary case;




     (b) appoints a Custodian of the Company or any Subsidiary Guarantor for all or
substantially all of the property of the Company or any Subsidiary Guarantor; or




     (c) orders the liquidation of the Company or any Subsidiary Guarantor and the
order or decree remains unstayed and in effect for 60 consecutive days.



          Section 7.02. Acceleration. In case one or more Events of Default shall have occurred and be
continuing (whatever the reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental body), then, and in
each and every such case (other than an Event of Default specified in Section 7.01(i) with respect
to the Company (and not solely with respect to a Subsidiary Guarantor of the Company), unless the
principal of all of the Notes shall have already become due and payable (or waived), either the
Trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding,
by notice in writing to the Company (and to the Trustee if given by Noteholders), may declare 100%
of the principal of and accrued and unpaid interest and accrued and unpaid Additional Interest, if
any, on all the Notes to be due and payable immediately, and upon any such declaration the same
shall become and shall automatically be immediately due and payable, anything in this Indenture or
in the Notes contained to the contrary notwithstanding.




          If an Event of Default specified in Section 7.01(i) with respect to the Company (and not
solely with respect to a Subsidiary Guarantor of the Company) occurs and is continuing, the
principal of all the Notes and accrued and unpaid interest and accrued and unpaid Additional
Interest, if any, shall be immediately due and payable. This provision, however, is subject to the
conditions that if, at any time after the principal of the Notes shall have been so declared due
and payable, and before any judgment or decree for the payment of the monies due shall have been
obtained or entered as hereinafter provided, the Company shall pay or shall deposit with the
Trustee a sum sufficient to pay installments of accrued and unpaid interest and accrued and unpaid
Additional Interest, if any, upon all Notes and the principal of any and all Notes that shall have
become due otherwise than by acceleration (with interest on overdue installments of accrued and
unpaid interest and accrued and unpaid Additional Interest, if any (to the extent that payment of
such interest is enforceable under applicable law), and on such principal at the rate borne by the
Notes at such time) and amounts due to the Trustee pursuant to Section 8.06, and if (1) rescission
would not conflict with any judgment or decree of a court of competent jurisdiction and (2) any and
all Events of Defaults under this Indenture, other than the nonpayment of principal of and accrued
and unpaid interest and accrued and unpaid Additional Interest, if any, on Notes that shall have
become due solely by such acceleration, shall have been cured or waived pursuant to Section 7.07,
then and in every such case the holders of a majority in aggregate principal amount of the Notes
then outstanding, by






31









 







written notice to the Company and to the Trustee, may waive all Defaults or Events of Default
with respect to the Notes (other than a Default or an Event of Default resulting from a failure to
repurchase any Notes when required upon a Fundamental Change or a failure to deliver, upon
conversion, shares of Common Stock due upon conversion) and rescind and annul such declaration and
its consequences (other than a declaration or consequences, as the case may be, resulting from a
failure to repurchase any Notes when required upon a Fundamental Change or a failure to deliver,
upon conversion, shares of Common Stock due upon conversion) and such Default (other than a Default
resulting from a failure to repurchase any Notes when required upon a Fundamental Change or a
failure to deliver, upon conversion, shares of Common Stock due upon conversion) shall cease to
exist, and any Event of Default arising therefrom (other than a Default resulting from a failure to
repurchase any Notes when required upon a Fundamental Change or a failure to deliver, upon
conversion, shares of Common Stock due upon conversion) shall be deemed to have been cured for
every purpose of this Indenture; but no such waiver or rescission and annulment shall extend to or
shall affect any subsequent Default or Event of Default, or shall impair any right consequent
thereon.




     Notwithstanding any other provision of this Indenture or the Notes, no Settlement Extension
through the Maximum Extension Date as permitted under Section 15.11 shall constitute an Event of
Default. Further, for so long as a Credit Facility Default shall continue following the Maximum
Extension Date in respect of any Affected Notes and delivery of the Conversion Obligation in
respect of such Affected Notes would, as a result, constitute a breach of the Credit Facility, the
Notes shall not be subject to acceleration pursuant to this Section 7.02 unless the aggregate
principal amount of Notes that has been tendered for conversion at any such time exceeds $50
million.



          Section 7.03. Additional Interest. Notwithstanding anything in this Indenture or in the Notes
to the contrary (except as provided in Section 5.06(d) or 5.06(e)), if the Company so elects, the
sole remedy of Noteholders for an Event of Default relating to any obligation to file reports as
required under Section 5.06(a) or (b) shall, for the first 365 days after the occurrence of such an
Event of Default (which will be the 60th day after written notice is provided to the Company in
accordance with Section 7.01(c)), consist exclusively of the right to receive Additional Interest
on the Notes at an annual rate equal to (x) 0.25% of the outstanding principal amount of the Notes
for the first 180 days an Event of Default is continuing in such 365-day period and (y) 0.50% of
the outstanding principal amount of the Notes for the remaining 185 days an Event of Default is
continuing in such 365-day period. Additional Interest shall be payable in arrears on each
Interest Payment Date following the occurrence of such Event of Default in the same manner as
regular interest on the Notes. The Company may elect to pay Additional Interest as the sole remedy
under this Section 7.03 by giving notice to the holders, the Trustee and Paying Agent of such
election, and make the notice available on the website of the Company, on or before the close of
business on the 5th Business Day after the date on which such Event of Default otherwise would
occur. If the Company fails to timely give such notice or pay Additional Interest, the Notes will
be immediately subject to acceleration as provided in Section 7.02. On the 366th day after such
Event of Default (if such violation is not cured or waived prior to such 366th day), the Notes will
be subject to acceleration as provided in Section 7.02. This Section 7.03 shall not affect the
rights of the Noteholders in the event of the occurrence of any other Event of Default. In the
event the Company does not elect to pay Additional Interest upon an Event of Default in accordance
with this Section, the Notes will be subject to acceleration as provided in Section 7.02. Whenever
in this Indenture there is mentioned, in any context, the payment of interest on, or in respect of,
any Note, such mention shall be deemed to include mention of the payment of “Additional Interest”
provided for in this Section 7.03 and Sections 5.06(d) and 5.06(e) to the extent that, in such
context, Additional Interest is, was or would be payable in respect thereof pursuant to the
provisions of such sections, and express mention of the payment of Additional Interest (if
applicable) in any provision shall not be construed as excluding Additional Interest in those
provisions where such express mention is not made. For the avoidance of doubt, Additional Interest
payable under






32









 







this Section 7.03 is in addition to, and not in lieu of, Additional Interest payable under
Section 5.06; provided, however, that in no event shall Additional Interest accrue at a rate
exceeding 0.50% per annum in the aggregate during the period beginning on, and including, the date
that is six months after the date of the last original issuance of the Initial Notes, or if later,
any IW Notes, through the date that is 365 days after the date of the last original issuance of the
Initial Notes, or if later, any IW Notes.




          Section 7.04. Payments of Notes on Default; Suit Therefor. If an Event of Default under
clause (a) or (b) of Section 7.01 shall have occurred and be continuing, the Company shall, upon
demand of the Trustee, pay to it, for the benefit of the holders of the Notes, the whole amount
then due and payable on the Notes for principal and interest and Additional Interest, if any, with
interest on any overdue principal, interest and Additional Interest, if any, at the rate borne by
the Notes at such time, and, in addition thereto, such further amount as shall be sufficient to
cover any amounts due to the Trustee under Section 8.06. If the Company shall fail to pay such
amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same against the Company
or any other obligor upon the Notes and collect the monies adjudged or decreed to be payable in the
manner provided by law out of the property of the Company or any other obligor upon the Notes,
wherever situated.




          In the event there shall be pending proceedings for the bankruptcy or for the reorganization
of the Company or any other obligor on the Notes under any Bankruptcy Law, or in case a receiver,
assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official
shall have been appointed for or taken possession of the Company or such other obligor, the
property of the Company or such other obligor, or in the event of any other judicial proceedings
relative to the Company or such other obligor upon the Notes, or to the creditors or property of
the Company or such other obligor, the Trustee, irrespective of whether the principal of the Notes
shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand pursuant to the provisions of this Section 7.04,
shall be entitled and empowered, by intervention in such proceedings or otherwise, to file and
prove a claim or claims for the whole amount of principal and accrued and unpaid interest and
accrued and unpaid Additional Interest, if any, in respect of the Notes, and, in case of any
judicial proceedings, to file such proofs of claim and other papers or documents and to take such
other actions as it may deem necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Noteholders allowed in such judicial proceedings
relative to the Company or any other obligor on the Notes, its or their creditors, or its or their
property, and to collect and receive any monies or other property payable or deliverable on any
such claims, and to distribute the same after the deduction of any amounts due the Trustee under
Section 8.06; and any receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
custodian or similar official is hereby authorized by each of the Noteholders to make such payments
to the Trustee, as administrative expenses, and, in the event that the Trustee shall consent to the
making of such payments directly to the Noteholders, to pay to the Trustee any amount due it for
reasonable compensation, expenses, advances and disbursements, including agent’s and counsel fees,
and including any other amounts due to the Trustee under Section 8.06 hereof, incurred by it up to
the date of such distribution. To the extent that such payment of reasonable compensation,
expenses, advances and disbursements out of the estate in any such proceedings shall be denied for
any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and
all distributions, dividends, monies, securities and other property that the holders of the Notes
may be entitled to receive in such proceedings, whether in liquidation or under any plan of
reorganization or arrangement or otherwise.







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          Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment
or composition affecting the Noteholder or the rights of any Noteholder thereof, or to authorize
the Trustee to vote in respect of the claim of any Noteholder in any such proceeding.




          All rights of action and of asserting claims under this Indenture, or under any of the Notes,
may be enforced by the Trustee without the possession of any of the Notes, or the production
thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable
benefit of the holders of the Notes.




          In any proceedings brought by the Trustee (and in any proceedings involving the interpretation
of any provision of this Indenture to which the Trustee shall be a party) the Trustee shall be held
to represent all the holders of the Notes, and it shall not be necessary to make any holders of the
Notes parties to any such proceedings.




          In case the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such waiver or rescission and
annulment or for any other reason or shall have been determined adversely to the Trustee, then and
in every such case the Company, the Noteholders, and the Trustee shall, subject to any
determination in such proceeding, be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the Company, the Noteholders, and the Trustee
shall continue as though no such proceeding had been instituted.




          Section 7.05. Application of Monies Collected by Trustee. Any monies collected by the Trustee
pursuant to this Article 7 with respect to the Notes shall be applied in the order following, at
the date or dates fixed by the Trustee for the distribution of such monies, upon presentation of
the several Notes, and stamping thereon the payment, if only partially paid, and upon surrender
thereof, if fully paid:





     First, to the payment of all amounts due the Trustee under Section 8.06;




     Second, in case the principal of the outstanding Notes shall not have become due and be
unpaid, to the payment of interest on the Notes, including Additional Interest, if any, in
default in the order of the date due of the installments of such interest, with interest (to
the extent that such interest has been collected by the Trustee) upon the overdue
installments of interest at the rate borne by the Notes at such time, such payments to be
made ratably to the Persons entitled thereto;




     Third, in case the principal of the outstanding Notes shall have become due, by
declaration or otherwise, and be unpaid to the payment of the whole amount including the
payment of the Fundamental Change Repurchase Price then owing and unpaid upon the Notes for
principal and interest, including Additional Interest, if any, with interest on the overdue
principal and (to the extent that such interest has been collected by the Trustee) upon
overdue installments of interest at the rate borne by the Notes at such time, and in case
such monies shall be insufficient to pay in full the whole amounts so due and unpaid upon
the Notes, then to the payment of such principal and interest without preference or priority
of principal over interest, or of interest over principal or of any installment of interest
over any other installment of interest, or of any Note over any other Note, ratably to the
aggregate of such principal and accrued and unpaid interest, and Additional Interest, if
any; and



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     Fourth, to the payment of the remainder, if any, to the Company.



          Section 7.06. Proceedings by Noteholders. No holder of any Note shall have any right by
virtue of or by availing itself of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture, or for the
appointment of a receiver, trustee, liquidator, custodian or other similar official, or for any
other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof, as hereinbefore provided; (ii) the
holders of not less than 25% in aggregate principal amount of the Notes then outstanding shall have
made written request to the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder; (iii) such holders shall have offered to the Trustee such security or indemnity
reasonably satisfactory to it against any loss, liability or expense to be incurred therein or
thereby; (iv) the Trustee for sixty days after its receipt of such notice, request and offer of
security or indemnity, shall have neglected or refused to institute any such action, suit or
proceeding and (v) no direction that, in the opinion of the Trustee, is inconsistent with such
written request shall have been given to the Trustee by the holders of a majority in principal
amount of the Notes outstanding within such sixty-day period pursuant to Section 7.09; it being
understood and intended, and being expressly covenanted by the taker and holder of every Note with
every other taker and holder and the Trustee that no one or more Noteholders shall have any right
in any manner whatever by virtue of or by availing of any provision of this Indenture to affect,
disturb or prejudice the rights of any other Noteholder, or to obtain or seek to obtain priority
over or preference to any other such holder, or to enforce any right under this Indenture, except
in the manner herein provided and for the equal, ratable and common benefit of all Noteholders
(except as otherwise provided herein). For the protection and enforcement of this Section 7.06,
each and every Noteholder and the Trustee shall be entitled to such relief as can be given either
at law or in equity.




          Notwithstanding any other provision of this Indenture, except for restrictions imposed by
Gaming Laws or Gaming Authorities on payments by entities holding Gaming Licenses, and any
provision of any Note (except as provided in clause (ii) below), the right of any Noteholder (i) to
receive payment of the principal of (including the Fundamental Change Repurchase Price upon
repurchase pursuant to Section 16.02), and accrued and unpaid interest and accrued and unpaid
Additional Interest, if any, on such Note, on or after the respective due dates expressed or
provided for in such Note or in this Indenture; (ii) to receive the Conversion Obligation upon
conversion (subject to Section 15.11); or (iii) to institute suit for the enforcement of any such
payment on or after such respective dates against the Company shall not be impaired or affected
without the consent of such Noteholder.




          Anything in this Indenture or the Notes to the contrary notwithstanding, the holder of any
Note, without the consent of either the Trustee or the holder of any other Note, in its own behalf
and for its own benefit, may enforce, and may institute and maintain any proceeding suitable to
enforce, its rights of conversion as provided herein.




          Section 7.07. Proceedings by Trustee. In case of an Event of Default the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as are necessary to protect and enforce any of such rights, either
by suit in equity or by action at law or by proceeding in bankruptcy or otherwise, whether for the
specific enforcement of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.




          Section 7.08. Remedies Cumulative and Continuing. Except as provided in the second paragraph
of Section 2.07 and Section 7.04, all powers and remedies given by this Article 7 to the






35









 







Trustee or to the Noteholders shall, to the extent permitted by law (including Gaming Laws),
be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available
to the Trustee or the holders of the Notes, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this Indenture, and no delay
or omission of the Trustee or of any holder of any of the Notes to exercise any right or power
accruing upon any Default or Event of Default shall impair any such right or power, or shall be
construed to be a waiver of any such Default or any acquiescence therein; and, subject to the
provisions of Section 7.06, every power and remedy given by this Article 7 or by law to the Trustee
or to the Noteholders may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Noteholders.




          Section 7.09. Direction of Proceedings and Waiver of Defaults by Majority of Noteholders. The
holders of a majority in aggregate principal amount of the Notes at the time outstanding shall have
the right to direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the Trustee with respect to
Notes; provided, however, that (a) such direction shall not be in conflict with any rule of law
(including Gaming Laws) or with this Indenture, and (b) the Trustee may take any other action
deemed proper by the Trustee that is not inconsistent with such direction. The Trustee may refuse
to follow any direction that it determines is unduly prejudicial to the rights of any other holder
or that would involve the Trustee in personal liability. The holders of a majority in aggregate
principal amount of the Notes at the time outstanding may on behalf of the holders of all of the
Notes waive any past Default or Event of Default hereunder and its consequences except (i) a
default in the payment of accrued and unpaid interest or accrued and unpaid Additional Interest, if
any, on, or the principal (including any Fundamental Change Repurchase Price) of, the Notes when
due that has not been cured pursuant to the provisions of Section 7.01, (ii) a failure by the
Company to redeem any Notes when required; (iii) a failure by the Company to deliver shares of
Common Stock upon conversion of the Notes or (iv) a default in respect of a covenant or provision
hereof which under Article 11 cannot be modified or amended without the consent of each holder of
an outstanding Note affected. Upon any such waiver the Company, the Trustee and the holders of the
Notes shall be restored to their former positions and rights hereunder; but no such waiver shall
extend to any subsequent or other Default or Event of Default or impair any right consequent
thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by
this Section 7.09, said Default or Event of Default shall for all purposes of the Notes and this
Indenture be deemed to have been cured and to be not continuing; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereon.




          Section 7.10. Notice of Defaults. The Trustee shall, within ninety days after the occurrence
and continuance of a Default of which a Responsible Officer has actual knowledge, mail to all
Noteholders as the names and addresses of such holders appear upon the Note Register, notice of all
Defaults known to a Responsible Officer, unless such Defaults shall have been cured or waived
before the giving of such notice; and provided that, except in the case of a Default in the payment
of the principal of, accrued and unpaid interest or accrued and unpaid Additional Interest, if any,
on any of the Notes, including without limiting the generality of the foregoing any Default in the
payment of any Fundamental Change Repurchase Price, then in any such event the Trustee shall be
protected in withholding such notice if and so long as a committee of Responsible Officers of the
Trustee in good faith determine that the withholding of such notice is in the interests of the
Noteholders.




          Section 7.11. Undertaking to Pay Costs. All parties to this Indenture agree, and each holder
of any Note by its acceptance thereof shall be deemed to have agreed, that any court may, in its
discretion, require, in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by
any party litigant in such suit of an undertaking to pay the costs of such suit and that such court
may in its discretion assess






36









 







reasonable costs, including reasonable attorneys’ fees and expenses, against any party
litigant in such suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; provided that the provisions of this Section 7.11 (to the extent
permitted by law) shall not apply to any suit instituted by the Trustee, to any suit instituted by
any Noteholder, or group of Noteholders, holding in the aggregate more than 10% in principal amount
of the Notes at the time outstanding, or to any suit instituted by any Noteholder for the
enforcement of the payment of the principal of accrued and unpaid interest or accrued and unpaid
Additional Interest, if any, on any Note (including, but not limited to, the Fundamental Change
Repurchase Price with respect to the Notes being repurchased as provided in this Indenture) on or
after the due date expressed or provided for in such Note or to any suit for the enforcement of the
right to convert any Note in accordance with the provisions of Article 15.




ARTICLE 8

CONCERNING THE TRUSTEE




          Section 8.01. Duties and Responsibilities of Trustee. The Trustee, prior to the occurrence of
an Event of Default and after the curing or waiver of all Events of Default that may have occurred,
undertakes to perform such duties and only such duties as are specifically set forth in this
Indenture. In case an Event of Default has occurred (which has not been cured or waived), the
Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the
same degree of care and skill in their exercise, as a prudent person would exercise or use under
the circumstances in the conduct of such person’s own affairs; provided that if an Event of Default
occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or
powers under this Indenture at the request or direction of any of the holders unless such holders
have offered to the Trustee reasonable indemnity or security satisfactory to the Trustee against
the costs, expenses and liabilities that might be incurred by it in compliance with such request or
direction.




          No provision of this Indenture shall be construed to relieve the Trustee from liability for
its own negligent action, its own negligent failure to act or its own willful misconduct, except
that




          (a) prior to the occurrence of an Event of Default and after the curing or waiving of all
Events of Default that may have occurred:





     (i) the duties and obligations of the Trustee shall be determined solely by the
express provisions of this Indenture and, after it has been qualified thereunder,
the Trust Indenture Act, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture
and the Trust Indenture Act against the Trustee; and




     (ii) in the absence of bad faith and willful misconduct on the part of the
Trustee, the Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture; but,
in the case of any such certificates or opinions that by any provisions hereof are
specifically required to be furnished to the Trustee, the Trustee shall be under a
duty to examine the same to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the accuracy of
any mathematical calculations or other facts stated therein);



37









 





          (b) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer of the Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;




          (c) the Trustee shall not be liable with respect to any action taken or omitted to be taken by
it in good faith in accordance with the direction of the holders of not less than a majority in
principal amount of the Notes at the time outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture;




          (d) whether or not therein provided, every provision of this Indenture relating to the conduct
or affecting the liability of, or affording protection to, the Trustee shall be subject to the
provisions of this Section;




          (e) the Trustee shall not be liable in respect of any payment (as to the correctness of
amount, entitlement to receive or any other matters relating to payment) or notice effected by the
Company or any Paying Agent or any records maintained by any co-registrar with respect to the
Notes;




          (f) if any party fails to deliver a notice relating to an event the fact of which, pursuant to
this Indenture, requires notice to be sent to the Trustee, the Trustee may conclusively rely on its
failure to receive such notice as reason to act as if no such event occurred, unless any
Responsible Officer of the Trustee had actual knowledge of such event;




          (g) in the absence of written investment direction from the Company, all cash received by the
Trustee shall be placed in a non-interest bearing trust account, and in no event shall the Trustee
be liable for the selection of investments or for investment losses incurred thereon or for losses
incurred as a result of the liquidation of any such investment prior to its maturity date or the
failure of the party directing such investments prior to its maturity date or the failure of the
party directing such investment to provide timely written investment direction, and the Trustee
shall have no obligation to invest or reinvest any amounts held hereunder in the absence of such
written investment direction from the Company;




          (h) in the event that the Trustee is also acting as Custodian, Note Registrar, Paying Agent,
Conversion Agent or transfer agent hereunder, the rights and protections afforded to the Trustee
pursuant to this Article 8 shall also be afforded to such Custodian, Note Registrar, Paying Agent,
Conversion Agent or transfer agent;




          (i) none of the provisions contained in this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers; and




          (j) the Trustee shall cooperate and comply with any order or directive of a Gaming Authority
in connection with this Indenture or the Notes, including that the Trustee submit an application
for any license, finding of suitability or other approval pursuant to any Gaming Laws (unless the
Trustee shall have submitted its resignation) and will cooperate fully and completely in any
proceeding related to such application; provided the Company agrees to prepare (or cause the
Subsidiary Guarantors to prepare) all documentation in connection with any such order, directive,
application and proceeding and to reimburse the Trustee for all costs and expenses incurred by it
in connection therewith.







38









 








          Section 8.02. Reliance on Documents, Opinions, Etc. Except as otherwise provided in Section
8.01:




          (a) the Trustee may conclusively rely and shall be fully protected in acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
bond, Note, coupon or other paper or document believed by it in good faith to be genuine and to
have been signed or presented by the proper party or parties;




          (b) any request, direction, order or demand of the Company mentioned herein shall be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be
herein specifically prescribed); and any Board Resolution may be evidenced to the Trustee by a copy
thereof certified by the Secretary or an Assistant Secretary of the Company;




          (c) the Trustee may consult with counsel and require an opinion of counsel and any advice of
such counsel or Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken or omitted by it hereunder in good faith and in accordance with such
advice or Opinion of Counsel;




          (d) the Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request, order or direction of any of the Noteholders pursuant to the
provisions of this Indenture, unless such Noteholders shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred
therein or thereby;




          (e) the Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent or attorney at the
expense of the Company and shall incur no liability of any kind by reason of such inquiry or
investigation;




          (f) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, custodians, nominees or attorneys and the
Trustee shall not be responsible for any misconduct or negligence on the part of any agent,
custodian, nominee or attorney appointed by it with due care hereunder; and




          (g) the permissive rights of the Trustee enumerated herein shall not be construed as duties.




          In no event shall the Trustee be liable for any consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the
likelihood of such loss or damage and regardless of the form of action other than any such loss or
damage caused by the Trustee’s willful misconduct or gross negligence. The Trustee shall not be
charged with knowledge of any Default or Event of Default with respect to the Notes, unless either
(1) a Responsible Officer shall have actual knowledge of such Default or Event of Default or (2)
written notice of such Default or Event of Default shall have been given to a Responsible Officer
of the Trustee by the Company or by any holder of the Notes.







39









 








          Section 8.03. No Responsibility for Recitals, Etc. The recitals contained herein and in the
Notes (except in the Trustee’s certificate of authentication) shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for the correctness of the same. The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee shall not be accountable for the use or application by the Company of any Notes
or the proceeds of any Notes authenticated and delivered by the Trustee in conformity with the
provisions of this Indenture.




          Section 8.04. Trustee, Paying Agents, Conversion Agents or Registrar May Own Notes. The
Trustee, any Paying Agent, any Conversion Agent or Note Registrar, in its individual or any other
capacity, may become the owner or pledgee of Notes with the same rights it would have if it were
not the Trustee, Paying Agent, Conversion Agent or Note Registrar.




          Section 8.05. Monies to Be Held in Trust. All monies received by the Trustee shall, until
used or applied as herein provided, be held in trust for the purposes for which they were received.
Money held by the Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law. The Trustee shall be under no liability for interest on any money received
by it hereunder except as may be agreed from time to time by the Company and the Trustee.




          Section 8.06. Compensation and Expenses of Trustee. The Company covenants and agrees to pay
to the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder in any capacity (which shall not be limited by any provision
of law in regard to the compensation of a trustee of an express trust) as mutually agreed to in
writing between the Trustee and the Company, and the Company will pay or reimburse the Trustee upon
its request for all reasonable expenses, disbursements and advances reasonably incurred or made by
the Trustee in accordance with any of the provisions of this Indenture in any capacity thereunder
(including the reasonable compensation and the expenses and disbursements of its agents and counsel
and of all Persons not regularly in its employ) except any such expense, disbursement or advance as
shall have been caused by its negligence or willful misconduct. The Company also covenants to
indemnify the Trustee in any capacity under this Indenture and any other document or transaction
entered into in connection herewith and its agents and any authenticating agent for, and to hold
them harmless against, any loss, claim, damage, liability or expense incurred without negligence or
willful misconduct on the part of the Trustee, its officers, directors, agents or employees, or
such agent or authenticating agent, as the case may be, and arising out of or in connection with
the acceptance or administration of this trust or in any other capacity hereunder, including the
costs and expenses of defending themselves against any claim of liability in the premises. The
obligations of the Company under this Section 8.06 to compensate or indemnify the Trustee and to
pay or reimburse the Trustee for expenses, disbursements and advances shall be secured by a senior
claim to which the Notes are hereby made subordinate on all money or property held or collected by
the Trustee, except, subject to the effect of Section 7.05, funds held in trust herewith for the
benefit of the holders of particular Notes. The Trustee’s right to receive payment of any amounts
due under this Section 8.06 shall not be subordinate to any other liability or indebtedness of the
Company (even though the Notes may be so subordinated). The obligation of the Company under this
Section 8.06 shall survive the satisfaction and discharge of this Indenture and the earlier
resignation or removal or the Trustee. The Company need not pay for any settlement made without
its consent, which consent shall not be unreasonably withheld. The indemnification provided in
this Section 8.06 shall extend to the officers, directors, agents and employees of the Trustee and
shall survive the termination of this Indenture and the resignation or removal of the Trustee.




          Without prejudice to any other rights available to the Trustee under applicable law, when the
Trustee and its agents and any authenticating agent incur expenses or render services after an
Event of





40











 




Default specified in Section 7.01(g) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any bankruptcy, insolvency or
similar laws.




          Section 8.07. Officers’ Certificate as Evidence. Except as otherwise provided in Section
8.01, whenever in the administration of the provisions of this Indenture, the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or omitting any
action hereunder, such matter (unless other evidence in respect thereof be herein specifically
prescribed) may, in the absence of negligence, willful misconduct and bad faith on the part of the
Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered
to the Trustee, and such Officers’ Certificate, in the absence of negligence, willful misconduct
and bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken
or omitted by it under the provisions of this Indenture upon the faith thereof.




          Section 8.08. Conflicting Interests of Trustee. After qualification of this Indenture under
the Trust Indenture Act, if the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either (a) eliminate such interest within
ninety days, (b) apply to the Commission for permission to continue as Trustee or (c) resign, to
the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act
and this Indenture.




          Section 8.09. Eligibility of Trustee. There shall at all times be a Trustee hereunder which
shall be a Person that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000. If such Person publishes reports of
condition at least annually, pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in accordance with
the provisions of this Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.




          Section 8.10. Resignation or Removal of Trustee. Subject to compliance with applicable Gaming
Laws:




          (a) The Trustee may at any time resign by giving written notice of such resignation to the
Company and by mailing notice thereof to the Noteholders at their addresses as they shall appear on
the Note Register. Upon receiving such notice of resignation, the Company shall promptly appoint a
successor trustee by written instrument, in duplicate, executed by order of the Board of Directors
of the Company, one copy of which instrument shall be delivered to the resigning Trustee and one
copy to the successor trustee. If no successor trustee shall have been so appointed and have
accepted appointment within sixty days after the mailing of such notice of resignation to the
Noteholders, the resigning Trustee may, upon ten Business Days’ notice to the Company and the
Noteholders, petition any court of competent jurisdiction for the appointment of a successor
trustee, or any Noteholder who has been a bona fide holder of a Note or Notes for at least six
months may, subject to the provisions of Section 7.11, on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor trustee. Such court
may thereupon, after such notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.




          (b) In case at any time any of the following shall occur:





     (i) the Trustee shall fail to comply with Section 8.08 within a reasonable time after
written request therefor by the Company or by any Noteholder who has been a bona fide holder
of a Note or Notes for at least six months, or



41









 






     (ii) the Trustee shall cease to be eligible in accordance with the provisions of
Section 8.09 and shall fail to resign after written request therefor by the Company or by
any such Noteholder, or




     (iii) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,


then, in any such case, the Company may by a Board Resolution remove the Trustee and appoint a
successor trustee by written instrument, in duplicate, executed by order of the Board of Directors
of the Company, one copy of which instrument shall be delivered to the Trustee so removed and one
copy to the successor trustee, or, subject to the provisions of Section 7.11, any Noteholder who
has been a bona fide holder of a Note or Notes for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction for the removal of
the Trustee and the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.




          (c) The holders of a majority in aggregate principal amount of the Notes at the time
outstanding, as determined in accordance with Section 9.04, may at any time remove the Trustee and
nominate a successor trustee that shall be deemed appointed as successor trustee unless within ten
days after notice to the Company of such nomination the Company objects thereto, in which case the
Trustee so removed or any Noteholder, upon the terms and conditions and otherwise as in Section
8.10(a) provided, may petition any court of competent jurisdiction for an appointment of a
successor trustee.




          (d) Any resignation or removal of the Trustee and appointment of a successor trustee pursuant
to any of the provisions of this Section 8.10 shall become effective upon acceptance of appointment
by the successor trustee as provided in Section 8.11.




          Section 8.11. Acceptance by Successor Trustee. Subject to compliance with applicable Gaming
Laws, any successor trustee appointed as provided in Section 8.10 shall execute, acknowledge and
deliver to the Company and to its predecessor trustee an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor trustee shall become
effective and such successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, duties and obligations of its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the written request of the
Company or of the successor trustee, the trustee ceasing to act shall, upon payment of any amounts
then due it pursuant to the provisions of Section 8.06, execute and deliver an instrument
transferring to such successor trustee all the rights and powers of the trustee so ceasing to act.




          Upon request of any such successor trustee, the Company shall execute any and all instruments
in writing for more fully and certainly vesting in and confirming to such successor trustee all
such rights and powers. Any trustee ceasing to act shall, nevertheless, retain a senior claim to
which the Notes are hereby made subordinate on all money or property held or collected by such
trustee as such, except for funds held in trust for the benefit of holders of particular Notes, to
secure any amounts then due it pursuant to the provisions of Section 8.06.




          No successor trustee shall accept appointment as provided in this Section 8.11 unless at the
time of such acceptance such successor trustee shall be qualified under the provisions of Section
8.08 and be eligible under the provisions of Section 8.09.







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          Upon acceptance of appointment by a successor trustee as provided in this Section 8.11, each
of the Company and the successor trustee, at the written direction and at the expense of the
Company, shall mail or cause to be mailed notice of the succession of such trustee hereunder to the
Noteholders at their addresses as they shall appear on the Note Register. If the Company fails to
mail such notice within ten days after acceptance of appointment by the successor trustee, the
successor trustee shall cause such notice to be mailed at the expense of the Company.




          Section 8.12. Succession by Merger, Etc. Any corporation or other entity into which the
Trustee may be merged or converted or with which it may be consolidated, or any corporation or
other entity resulting from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation or other entity succeeding to all or substantially all of the corporate
trust business of the Trustee (including the administration of this Indenture), shall be the
successor to the Trustee hereunder without the execution or filing of any paper or any further act
on the part of any of the parties hereto, provided that in the case of any corporation or other
entity succeeding to all or substantially all of the corporate trust business of the Trustee, such
corporation or other entity shall be qualified under the provisions of Section 8.08 and eligible
under the provisions of Section 8.09.




          In case at the time such successor to the Trustee shall succeed to the trusts created by this
Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to
the Trustee may adopt the certificate of authentication of any predecessor trustee or
authenticating agent appointed by such predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been authenticated, any
successor to the Trustee or an authenticating agent appointed by such successor trustee may
authenticate such Notes either in the name of any predecessor trustee hereunder or in the name of
the successor trustee; and in all such cases such certificates shall have the full force which it
is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall
have; provided, however, that the right to adopt the certificate of authentication of any
predecessor Trustee or to authenticate Notes in the name of any predecessor Trustee shall apply
only to its successor or successors by merger, conversion or consolidation.




          Section 8.13. Limitation on Rights of Trustee as Creditor. If and when the Trustee shall be
or become a creditor of the Company (or any other obligor upon the Notes), after qualification
under the Trust Indenture Act, the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of the claims against the Company (or any such other
obligor).




          Section 8.14. Trustee’s Application for Instructions from the Company. Any application by the
Trustee for written instructions from the Company (other than with regard to any action proposed to
be taken or omitted to be taken by the Trustee that affects the rights of the holders of the Notes
under this Indenture) may, at the option of the Trustee, set forth in writing any action proposed
to be taken or omitted by the Trustee under this Indenture and the date on and/or after which such
action shall be taken or such omission shall be effective. The Trustee shall not be liable for any
action taken by, or omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date shall not be less than
three Business Days after the date any officer that the Company has indicated to the Trustee should
receive such application actually receives such application, unless any such officer shall have
consented in writing to any earlier date), unless, prior to taking any such action (or the
effective date in the case of any omission), the Trustee shall have received written instructions
in accordance with this Indenture in response to such application specifying the action to be taken
or omitted.




          Section 8.15. Reports by Trustee to Gaming Authorities.







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          (a) The Trustee shall provide any Gaming Authority upon its or the Company’s request with (in
the case of any Gaming Authority, to the address set forth in such request or as otherwise directed
in such request, and in the case of the Company, as provided in Section 18.03 of this Indenture):





     (i) copies of all notices, reports and other written communications which the Trustee
gives to Noteholders;




     (ii) a list of Noteholders promptly after the original issuance of the Notes, eight
months and two months prior to the expiration date of each then-current Gaming License held
by the Company or its Subsidiaries, and upon demand;




     (iii) notice of any Event of Default or of any Default, any acceleration of the
indebtedness evidenced hereby, the institution of any legal actions or proceedings before
any court or governmental authority in respect of this Indenture or the Notes and any
rescission, annulment or waiver in respect of an Event of Default;




     (iv) notice of the removal or resignation of the Trustee within five Business Days
thereof;




     (v) notice of any transfer or assignment of rights under this Indenture (but no
transfers or assignments of the Notes) within five Business Days thereof; and




     (vi) a copy of any amendment to the Notes or this Indenture within five Business Days
of the effectiveness thereof.



          The notice specified in clause (iii) above shall be in writing and, except as set forth below,
shall be given within five Business Days after the Trustee has transmitted the notice required by
Section 7.10 hereof. In the case of any notice in respect of any Event of Default, such Notice
shall be accompanied by a copy of any notice from the Noteholders, or a representative thereof or
the Trustee, to the Company and, if accompanied by any such notice to the Company, shall be given
simultaneously with the giving of any such notice to the Company. In the case of any legal actions
or proceedings, such notice shall be accompanied by a copy of the complaint or other initial
pleading or document.




          The Company shall advise the Trustee in writing of the expiration date of any then-current
Gaming License held by the Company or its Subsidiaries at least nine months prior to the expiration
thereof and the Trustee until so advised may assume that such Gaming License has not expired.




          (b) The Trustee shall cooperate with the Company and any Gaming Authority in providing
information and documentation relating to the Notes or the Noteholders to such Gaming Authority
pursuant to applicable Gaming Laws.




ARTICLE 9

CONCERNING THE NOTEHOLDERS




          Section 9.01. Action by Noteholders. Whenever in this Indenture it is provided that the
holders of a specified percentage in aggregate principal amount of the Notes may take any action
(including the making of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such action, the holders of
such specified percentage have joined therein may be evidenced (a) by any instrument or any number
of instruments of similar tenor executed by Noteholders in person or by agent or proxy appointed in
writing, or (b) by the record of the Noteholders voting in favor thereof at any meeting of
Noteholders duly called and held in






44









 







accordance with the provisions of Article 10, or (c) by a combination of such instrument or
instruments and any such record of such a meeting of Noteholders. Whenever the Company or the
Trustee solicits the taking of any action by the holders of the Notes, the Company or the Trustee
may, but shall not be required to, fix in advance of such solicitation, a date as the record date
for determining Noteholders entitled to take such action. The record date if one is selected shall
be not more than fifteen days prior to the date of commencement of solicitation of such action.




          Section 9.02. Proof of Execution by Noteholders. Subject to the provisions of Section 8.01,
Section 8.02 and Section 10.05, proof of the execution of any instrument by a Noteholder or its
agent or proxy shall be sufficient if made in accordance with such reasonable rules and regulations
as may be prescribed by the Trustee or in such manner as shall be satisfactory to the Trustee. The
holding of Notes shall be proved by the Note Register or by a certificate of the Note Registrar.
The record of any Noteholders’ meeting shall be proved in the manner provided in Section 10.06.




          Section 9.03. Who Are Deemed Absolute Owners. The Company, the Trustee, any authenticating
agent, any Paying Agent, any Conversion Agent and any Note Registrar may deem the Person in whose
name a Note shall be registered upon the Note Register to be, and may treat it as, the absolute
owner of such Note (whether or not such Note shall be overdue and notwithstanding any notation of
ownership or other writing thereon made by any Person other than the Company or any Note Registrar)
for the purpose of receiving payment of or on account of the principal of and (subject to Section
2.03) accrued and unpaid interest and accrued and unpaid Additional Interest, if any, on such Note,
for conversion of such Note and for all other purposes; and neither the Company nor the Trustee nor
any Paying Agent nor any Conversion Agent nor any Note Registrar shall be affected by any notice to
the contrary. All such payments so made to any holder for the time being, or upon its order, shall
be valid and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the
liability for monies payable upon any such Note. Notwithstanding anything to the contrary in this
Indenture or the Notes following an Event of Default, any holder of a beneficial interest in a
Global Note may directly enforce against the Company, without the consent, solicitation, proxy,
authorization or any other action of the Depositary or any other Person, such holder’s right to
exchange such beneficial interest for a Note in certificated form in accordance with the provisions
of this Indenture.




          Section 9.04. Company-Owned Notes Disregarded. In determining whether the holders of the
requisite aggregate principal amount of Notes have concurred in any direction, consent, waiver or
other action under this Indenture, Notes that are owned by the Company or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common control with the Company
shall be disregarded and deemed not to be outstanding for the purpose of any such determination;
provided that for the purposes of determining whether the Trustee shall be protected in relying on
any such direction, consent, waiver or other action only Notes that a Responsible Officer knows are
so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as outstanding for the purposes of this Section 9.04 if the pledgee shall establish to the
satisfaction of the Trustee the pledgee’s right to so act with respect to such Notes and that the
pledgee is not the Company or a Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company. In the case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.
Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers’
Certificate listing and identifying all Notes, if any, known by the Company to be owned or held by
or for the account of any of the above described Persons; and, subject to Section 8.01, the Trustee
shall be entitled to accept such Officers’ Certificate as conclusive evidence of the facts therein
set forth and of the fact that all Notes not listed therein are outstanding for the purpose of any
such determination.







45









 








          Section 9.05. Revocation of Consents; Future Noteholders Bound. At any time prior to (but not
after) the evidencing to the Trustee, as provided in Section 9.01, of the taking of any action by
the holders of the percentage in aggregate principal amount of the Notes specified in this
Indenture in connection with such action, any holder of a Note that is shown by the evidence to be
included in the Notes the holders of which have consented to such action may, by filing written
notice with the Trustee at its Corporate Trust Office and upon proof of holding as provided in
Section 9.02, revoke such action so far as concerns such Note. Except as aforesaid, any such
action taken by the holder of any Note shall be conclusive and binding upon such holder and upon
all future holders and owners of such Note and of any Notes issued in exchange or substitution
therefor or upon registration of transfer thereof, irrespective of whether any notation in regard
thereto is made upon such Note or any Note issued in exchange or substitution therefor or upon
registration of transfer thereof.




ARTICLE 10

NOTEHOLDERS’ MEETINGS




          Section 10.01. Purpose of Meetings. A meeting of Noteholders may be called at any time and
from time to time pursuant to the provisions of this Article 10 for any of the following purposes:




          (a) to give any notice to the Company or to the Trustee or to give any directions to the
Trustee permitted under this Indenture, or to consent to the waiving of any Default or Event of
Default hereunder and its consequences, or to take any other action authorized to be taken by
Noteholders pursuant to any of the provisions of Article 7;




          (b) to remove the Trustee and nominate a successor trustee pursuant to the provisions of
Article 8;




          (c) to consent to the execution of an indenture or indentures supplemental hereto pursuant to
the provisions of Section 11.02; or




          (d) to take any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of the Notes under any other provision of this Indenture or
under applicable law.




          Section 10.02. Call of Meetings by Trustee. The Trustee may at any time call a meeting of
Noteholders to take any action specified in Section 10.01, to be held at such time and at such
place as the Trustee shall determine. Notice of every meeting of the Noteholders, setting forth
the time and the place of such meeting and in general terms the action proposed to be taken at such
meeting and the establishment of any record date pursuant to Section 9.01, shall be mailed to
holders of such Notes at their addresses as they shall appear on the Note Register. Such notice
shall also be mailed to the Company. Such notices shall be mailed not less than twenty nor more
than ninety days prior to the date fixed for the meeting.




          Any meeting of Noteholders shall be valid without notice if the holders of all Notes then
outstanding are present in person or by proxy or if notice is waived before or after the meeting by
the holders of all Notes outstanding, and if the Company and the Trustee are either present by duly
authorized representatives or have, before or after the meeting, waived notice.




          Section 10.03. Call of Meetings by Company or Noteholders. In case at any time the Company,
pursuant to a Board Resolution, or the holders of at least 10% in aggregate principal amount of the
Notes then outstanding (for the avoidance of doubt, excluding those Notes identified in Section
9.04),






46









 







shall have requested the Trustee to call a meeting of Noteholders, by written request setting
forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall
not have mailed the notice of such meeting within twenty days after receipt of such request, then
the Company or such Noteholders may determine the time and the place for such meeting and may call
such meeting to take any action authorized in Section 10.01, by mailing notice thereof as provided
in Section 10.02.




          Section 10.04. Qualifications for Voting. To be entitled to vote at any meeting of
Noteholders a Person shall (a) be a holder of one or more Notes on the record date pertaining to
such meeting or (b) be a Person appointed by an instrument in writing as proxy by a holder of one
or more Notes on the record date pertaining to such meeting. The only Persons who shall be
entitled to be present or to speak at any meeting of Noteholders shall be the Persons entitled to
vote at such meeting and their counsel and any representatives of the Trustee and its counsel and
any representatives of the Company and its counsel.




          Section 10.05. Regulations. Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any meeting of
Noteholders, in regard to proof of the holding of Notes and of the appointment of proxies, and in
regard to the appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other matters concerning
the conduct of the meeting as it shall think fit.




          The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Company or by Noteholders as provided in Section
10.03, in which case the Company or the Noteholders calling the meeting, as the case may be, shall
in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by vote of the holders of a majority in principal amount of the Notes
represented at the meeting and entitled to vote at the meeting.




          Subject to the provisions of Section 9.04, at any meeting of Noteholders each Noteholder or
proxyholder shall be entitled to one vote for each $1,000 principal amount of Notes held or
represented by him; provided, however, that no vote shall be cast or counted at any meeting in
respect of any Note challenged as not outstanding and ruled by the chairman of the meeting to be
not outstanding. The chairman of the meeting shall have no right to vote other than by virtue of
Notes held by it or instruments in writing as aforesaid duly designating it as the proxy to vote on
behalf of other Noteholders. Any meeting of Noteholders duly called pursuant to the provisions of
Section 10.02 or Section 10.03 may be adjourned from time to time by the holders of a majority of
the aggregate principal amount of Notes represented at the meeting, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.




          Section 10.06. Voting. The vote upon any resolution submitted to any meeting of Noteholders
shall be by written ballot on which shall be subscribed the signatures of the Noteholders or of
their representatives by proxy and the outstanding principal amount of the Notes held or
represented by them. The permanent chairman of the meeting shall appoint two inspectors of votes
who shall count all votes cast at the meeting for or against any resolution and who shall make and
file with the secretary of the meeting their verified written reports in duplicate of all votes
cast at the meeting. A record in duplicate of the proceedings of each meeting of Noteholders shall
be prepared by the secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was mailed as provided in Section 10.02. The record shall show the
principal amount of the Notes voting in favor of or against any






47









 







resolution. The record shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one of the duplicates shall be delivered to the Company
and the other to the Trustee to be preserved by the Trustee, the latter to have attached thereto
the ballots voted at the meeting.




          Any record so signed and verified shall be conclusive evidence of the matters therein stated.




          Section 10.07. No Delay of Rights by Meeting. Nothing contained in this Article 10 shall be
deemed or construed to authorize or permit, by reason of any call of a meeting of Noteholders or
any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in
the exercise of any right or rights conferred upon or reserved to the Trustee or to the Noteholders
under any of the provisions of this Indenture or of the Notes.




ARTICLE 11

SUPPLEMENTAL INDENTURES




          Section 11.01. Supplemental Indentures Without Consent of Noteholders. The Company and the
Trustee, at the Company’s expense, may from time to time and at any time enter into an indenture or
indentures supplemental hereto for one or more of the following purposes:




          (a) to cure any ambiguity, omission, defect or inconsistency in this Indenture or the Notes in
a manner that does not adversely affect the rights of any Noteholder;




          (b) to conform the terms of the Indenture or the Notes to the description thereof in the
Offering Memorandum;




          (c) to provide for the assumption by a Successor Company of the obligations of the Company
under this Indenture pursuant to Article 12;




          (d) to add guarantees with respect to the Notes;




          (e) to secure the Notes;




          (f) to add to the covenants of the Company such further covenants, restrictions or conditions
for the benefit of the Noteholders or surrender any right or power conferred upon the Company;




          (g) to make any change that does not adversely affect the rights of any holder;




          (h) to appoint a successor Trustee with respect to the Notes; or




          (i) to comply with any requirements of the Commission in connection with the qualification of
this Indenture under the Trust Indenture Act.




          Upon the written request of the Company, the Trustee is hereby authorized to join with the
Company in the execution of any such supplemental indenture, to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall not be obligated
to, but may in its discretion, enter into any supplemental indenture that affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.







48









 








          Any supplemental indenture authorized by the provisions of this Section 11.01 may be executed
by the Company and the Trustee without the consent of the holders of any of the Notes at the time
outstanding, notwithstanding any of the provisions of Section 11.02.




          The terms of any document entered into pursuant to this Section 11.01 shall be subject to the
prior approval, if required, of any applicable Gaming Authority.




          Section 11.02. Supplemental Indentures With Consent of Noteholders. With the consent
(evidenced as provided in Article 9) of the holders of at least a majority in aggregate principal
amount of the Notes at the time outstanding (determined in accordance with Article 9 and including,
without limitation, consents obtained in connection with a purchase of, or tender offer or exchange
offer for, Notes), the Company, when authorized by the resolutions of the Board of Directors of the
Company, and the Trustee, at the Company’s expense, may from time to time and at any time enter
into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or any supplemental
indenture or of modifying in any manner the rights of the holders of the Notes or waiving any past
default; provided, however, that no such supplemental indenture shall:




          (a) reduce the percentage in aggregate principal amount of Notes outstanding necessary to
modify or amend this Indenture or to waive any past Default or Event of Default;




          (b) reduce the rate or extend the stated time for payment of interest, including Additional
Interest, on any Note;




          (c) reduce the principal of, or extend the Maturity Date of, any Note;




          (d) make any change that impairs or otherwise adversely affects the conversion rights of any
Notes;




          (e) reduce the Fundamental Change Repurchase Price of any Note or amend or modify in any
manner adverse to the holders of the Notes the Company’s obligation to pay such price, whether
through an amendment or waiver of provisions in the covenants, definitions or otherwise;




          (f) make any Note payable in a currency other than that stated in the Note;




          (g) change the ranking of the Notes;




          (h) impair the right of any holder to receive payment of principal of and interest, including
Additional Interest, if any, on such holder’s Notes on or after the due dates therefor or to
institute suit for the enforcement of any payment on or with respect to such holder’s Note;




          (i) except as expressly permitted by this Indenture, modify the Guarantee obligations of any
Subsidiary Guarantor; or




          (j) make any change in this Article 11 that requires each holder’s consent or in the waiver
provisions in Section 7.01 or Section 7.09,




in each case without the consent of each holder of an outstanding Note affected.




          Upon the written request of the Company, and upon the filing with the Trustee of evidence of
the consent of Noteholders as aforesaid and subject to Section 11.05, the Trustee shall join






49









 







with the Company in the execution of such supplemental indenture unless such supplemental
indenture affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion, but shall not be obligated to, enter into such
supplemental indenture.




          It shall not be necessary for the consent of the Noteholders under this Section 11.02 to
approve the particular form of any proposed supplemental indenture, but it shall be sufficient if
such consent shall approve the substance thereof. After an amendment under this Indenture becomes
effective, the Company shall mail to the holders a notice briefly describing such amendment and
make such notice available on the website of the Company. However, the failure to give such notice
to all the holders, or any defect in the notice, will not impair or affect the validity of the
amendment.




          Section 11.03. Effect of Supplemental Indentures. Any supplemental indenture executed
pursuant to the provisions of this Article 11 shall comply with the Trust Indenture Act, as then in
effect; provided that this Section 11.03 shall not require such supplemental indenture to be
qualified under the Trust Indenture Act prior to the time such qualification is in fact required
under the terms of the Trust Indenture Act or this Indenture has been qualified under the Trust
Indenture Act, nor shall any such qualification constitute any admission or acknowledgment by any
party to such supplemental indenture that any such qualification is required prior to the time such
qualification is in fact required under the terms of the Trust Indenture Act or this Indenture has
been qualified under the Trust Indenture Act. Upon the execution of any supplemental indenture
pursuant to the provisions of this Article 11, this Indenture shall be and be deemed to be modified
and amended in accordance therewith and the respective rights, limitation of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company and the Noteholders shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.




          Section 11.04. Notation on Notes. Notes authenticated and delivered after the execution of
any supplemental indenture pursuant to the provisions of this Article 11 may, at the Company’s
expense, bear a notation as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Notes so modified as to conform, in the opinion of the Board of
Directors of the Company, to any modification of this Indenture contained in any such supplemental
indenture may, at the Company’s expense, be prepared and executed by the Company, authenticated by
the Trustee (or an authenticating agent duly appointed by the Trustee pursuant to Section 18.10)
and delivered in exchange for the Notes then outstanding, upon surrender of such Notes then
outstanding.




          Section 11.05. Evidence of Compliance of Supplemental Indenture to Be Furnished to Trustee.
In addition to the documents required by Section 18.05, the Trustee shall receive an Officers’
Certificate and an Opinion of Counsel as conclusive evidence that any supplemental indenture
executed pursuant hereto complies with the requirements of this Article 11 and is permitted or
authorized by the Indenture.




ARTICLE 12

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE




          Section 12.01. Conditions to Consolidation, Merger, Sale, Conveyance and Lease. Subject to
the provisions of Section 12.02, the Company shall not consolidate with, merge with or into, or
convey, transfer or lease all or substantially all of its properties and assets to another Person,
unless:







50









 








          (a) the resulting, surviving or transferee Person (the “Successor Company”), if not the
Company, shall be a corporation organized and existing under the laws of the United States of
America, any State thereof or the District of Columbia, and the Successor Company (if not the
Company) shall expressly assume, by supplemental indenture, executed and delivered to the Trustee,
in form satisfactory to the Trustee, all the obligations of the Company under the Notes and this
Indenture; and




          (b) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing under this Indenture.




          Upon any such consolidation, merger, conveyance, transfer or lease the Successor Company (if
not the Company) shall succeed to, and may exercise every right and power of, the Company under
this Indenture.




          For purposes of this Section 12.01, the conveyance, transfer or lease of all or substantially
all of the properties and assets of one or more Subsidiaries of the Company to another Person,
which properties and assets, if held by the Company instead of such Subsidiaries, would constitute
all or substantially all of the properties and assets of the Company, shall be deemed to be the
transfer of all or substantially all of the properties and assets of the Company to another Person.




          Section 12.02. Successor Corporation to Be Substituted. In case of any such consolidation,
merger, conveyance, transfer or lease and upon the assumption by the Successor Company, by
supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the
Trustee, of the due and punctual payment of the principal of, accrued and unpaid interest and
accrued and unpaid Additional Interest, if any, on all of the Notes, the due and punctual delivery
or payment, as the case may be, of any consideration due upon conversion of the Notes and the due
and punctual performance of all of the covenants and conditions of this Indenture to be performed
by the Company, such Successor Company shall succeed to and be substituted for the Company, with
the same effect as if it had been named herein as the party of the first part. Such Successor
Company thereupon may cause to be signed, and may issue in its own name any or all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such Successor Company instead of the Company and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate
and shall deliver, or cause to be authenticated and delivered, any Notes that such Successor
Company thereafter shall cause to be signed and delivered to the Trustee for that purpose. All the
Notes so issued shall in all respects have the same legal rank and benefit under this Indenture as
the Notes theretofore or thereafter issued in accordance with the terms of this Indenture as though
all of such Notes had been issued at the date of the execution hereof. In the event of any such
consolidation, merger, conveyance or transfer (but not in the case of a lease), the Person named as
the “Company” in the first paragraph of this Indenture or any successor that shall thereafter have
become such in the manner prescribed in this Article 12 may be dissolved, wound up and liquidated
at any time thereafter and, except in the case of a lease, such Person shall be released from its
liabilities as obligor and maker of the Notes and from its obligations under this Indenture.




          In case of any such consolidation, merger, conveyance, transfer or lease, such changes in
phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may
be appropriate.




          Section 12.03. Opinion of Counsel to Be Given to Trustee. The Company shall not effect any
merger, consolidation, conveyance, transfer or lease referred to in Section 12.01 unless the
Trustee shall receive an Officers’ Certificate and an Opinion of Counsel as conclusive evidence
that any such consolidation, merger, conveyance, transfer or lease and any such assumption and, if
a supplemental






51









 







indenture is required in connection with such transaction, such supplemental indenture,
complies with the provisions of this Article 12.




ARTICLE 13

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS




          Section 13.01. Indenture and Notes Solely Corporate Obligations. No recourse for the payment
of the principal of or accrued and unpaid interest and accrued and unpaid Additional Interest, if
any, on any Note, nor for any claim based thereon or otherwise in respect thereof, and no recourse
under or upon any obligation, covenant or agreement of the Company in this Indenture or in any
supplemental indenture or in any Note, nor because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, employee, agent, officer or director
or Subsidiary, as such, past, present or future, of the Company or of any successor corporation or
entity, either directly or through the Company or any successor corporation or entity, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that all such liability is hereby expressly
waived and released as a condition of, and as a consideration for, the execution of this Indenture
and the issuance of the Notes.




ARTICLE 14

[RESERVED]




ARTICLE 15

CONVERSION OF NOTES



          Section 15.01. Conversion Privilege. Upon compliance with the provisions of this Article 15,
subject to the provisions of Section 15.11, a Noteholder shall have the right, at such holder’s
option, to convert all or any portion (if the portion to be converted is $1,000 principal amount or
an integral multiple thereof) of such Note prior to the close of business on the third Scheduled
Trading Day immediately preceding the Maturity Date at an initial conversion rate (the “Conversion
Rate”) of 53.8307 shares of Common Stock (subject to adjustment as provided in Section 15.04 of
this Indenture) per $1,000 principal amount of Notes (together with any cash in lieu of fractional
shares pursuant to Section 15.02(j), the “Conversion Obligation”).




          Section 15.02. Conversion Procedure.




          (a) Subject to this Section 15.02, upon any conversion of any Note, the Company shall deliver
to converting Noteholders, in respect of each $1,000 principal amount of Notes being converted, a
number of shares of Common Stock equal to the then-applicable Conversion Rate.




          (b) Before any holder of a Note shall be entitled to convert the same as set forth above, such
holder shall (i) in the case of a Global Note, comply with the procedures of the Depositary in
effect at that time and, if required, pay funds equal to the amount of interest and Additional
Interest, if any, payable on the next Interest Payment Date to which such holder is not entitled as
set forth in Section 15.02(h) and, if required, all transfer or similar taxes, if any, and (ii) in
the case of a Note issued in certificated form, (1) complete and manually sign and deliver an
irrevocable notice to the Conversion Agent in the form on the reverse of such certificated Note (or
a facsimile thereof) (Exhibit B hereto) (a “Notice of Conversion”) at the office of the Conversion
Agent and shall state in writing therein the principal amount of Notes to be converted and the name
or names (with addresses) in which such holder






52









 







wishes the certificate or certificates for the shares of Common Stock to be delivered upon
conversion to be registered, (2) surrender such Notes, duly endorsed to the Company or in blank
(and accompanied by appropriate endorsement and transfer documents), at the office of the
Conversion Agent, (3) if required, pay funds equal to interest payable on the next Interest Payment
Date to which such holder is not entitled as set forth in Section 15.02(h), (4) if required,
furnish appropriate endorsements and transfer documents, and (5) if required, pay all transfer or
similar taxes, if any as set forth in Section 15.02(e). The Trustee (and if different, the
relevant Conversion Agent) shall notify the Company of any conversion pursuant to this Article 15
on the date of such conversion. No Notice of Conversion with respect to any Notes may be
surrendered by a holder thereof if such holder has also delivered a Fundamental Change Repurchase
Notice to the Company in respect of such Notes and not validly withdrawn such Fundamental Change
Repurchase Notice in accordance with Section 16.03, unless the Company defaults in the payment of
the Fundamental Change Repurchase Price.




          If more than one Note shall be surrendered for conversion at one time by the same holder, the
Conversion Obligation with respect to such Notes shall be computed on the basis of the aggregate
principal amount of the Notes (or specified portions thereof to the extent permitted thereby) so
surrendered.




          (c) A Note shall be deemed to have been converted immediately prior to the close of business
on the date (the “Conversion Date”) that the holder has complied with the requirements set forth in
clause (b) of this Section 15.02 unless such Conversion Date occurs on or following December 12,
2014, in which case the converting Noteholder shall be treated as a stockholder of record of the
Common Stock of the Company as of the close of business on the Maturity Date. The Company shall
deliver the Common Stock, together with any cash in lieu of fractional shares pursuant to Section
15.02(j) due in respect of its Conversion Obligation on a date (the “Settlement Date”) determined
as follows: (i) for conversions that occur prior to December 12, 2014, on the third Trading Day
immediately following the relevant Conversion Date, and (ii) for conversions that occur on or after
December 12, 2014, on the Maturity Date; provided that if calculating any adjustment to the
Conversion Rate in accordance with Section 15.04 cannot be accomplished prior to such Settlement
Date, the Company shall deliver the additional shares of Common Stock resulting from that
adjustment on the third Trading Day after the earliest Trading Day on which such calculation can be
made.




          (d) In case any Note shall be surrendered for partial conversion, the Company shall execute
and the Trustee shall authenticate and deliver to or upon the written order of the holder of the
Note so surrendered, without charge to such holder, a new Note or Notes in authorized denominations
in an aggregate principal amount equal to the unconverted portion of the surrendered Note.




          (e) If a holder submits a Note for conversion, the Company shall pay all documentary, stamp
and other duties, if any, that may be imposed by the United States or any political subdivision
thereof or taxing authority thereof or therein with respect to the issuance of shares of Common
Stock upon the conversion. However, the holder shall pay any such tax that is due because the
holder requests any shares of Common Stock to be issued in a name other than the holder’s name.
The Conversion Agent may refuse to deliver the certificates representing the shares of Common Stock
being issued in a name other than the holder’s name until the Trustee receives a sum sufficient to
pay any tax that will be due because the shares are to be issued in a name other than the holder’s
name. Nothing herein shall preclude any tax withholding required by law or regulations.




          (f) Except as provided in Section 15.04, no adjustment shall be made for dividends on any
shares issued upon the conversion of any Note as provided in this Article.







53









 








          (g) Upon the conversion of an interest in a Global Note, the Trustee, or the Custodian at the
direction of the Trustee, shall make a notation on such Global Note as to the reduction in the
principal amount represented thereby. The Company shall notify the Trustee in writing of any
conversion of Notes effected through any Conversion Agent other than the Trustee.




          (h) Upon conversion, a Noteholder shall not receive any additional cash payment for accrued
and unpaid interest and Additional Interest, if any, except as set forth below, subject to Section
15.11. The Company’s settlement of the Conversion Obligation pursuant to Section 15.02 shall be
deemed to satisfy its obligation to pay the principal amount of the Note and accrued and unpaid
interest and Additional Interest, if any, to, but not including, the Conversion Date. As a result,
accrued and unpaid interest and Additional Interest, if any, to, but not including, the Conversion
Date shall be deemed to be paid in full rather than cancelled, extinguished or forfeited.
Notwithstanding the preceding sentence, if Notes are converted on or after December 12, 2014, the
Noteholder of such Notes shall be entitled to the final interest payment, including through the
Maturity Date, in respect of the Notes converted. In addition, if Notes are converted after the
close of business on a Interest Record Date, holders of such Notes as of the close of business on
the Interest Record Date will receive the interest and Additional Interest, if any, payable on such
Notes on the corresponding Interest Payment Date notwithstanding the conversion of such Notes at
any time after the close of business on the applicable Interest Record Date. Notes surrendered for
conversion during the period from the close of business on any Interest Record Date to the opening
of business on the corresponding Interest Payment Date must be accompanied by payment of an amount
equal to the interest and Additional Interest, if any, payable on the Notes so converted; provided,
however, that no such payment shall be required (1) if the Company has specified a Fundamental
Change Repurchase Date that is after a Interest Record Date but on or prior to the corresponding
Interest Payment Date, (2) to the extent of any Defaulted Interest, if any, existing at the time of
conversion with respect to such Note (3) if the Notes are surrendered for conversion after 5:00
p.m., New York City time, on the Interest Record Date immediately preceding the Maturity Date.
Except as set forth in this Section 15.02(h) and Section 15.11, no payment or adjustment will be
made for accrued and unpaid interest and Additional Interest, if any, on converted Notes.




          (i) The Person in whose name the certificate for any shares of Common Stock delivered upon
conversion is registered shall be treated as a stockholder of record as of the close of business on
the relevant Conversion Date, unless such Conversion Date occurs on or following December 12, 2014,
in which case such Person shall be treated as a stockholder of record of the Common Stock of the
Company as of the close of business on the Maturity Date (and, for the avoidance of doubt, shall be
entitled to the benefit of any adjustment to the Conversion Rate pursuant to Section 15.04 through
such date); provided, however, if such Conversion Date occurs on any date when the stock transfer
books of the Company shall be closed, such occurrence shall not be effective to constitute the
Person or Persons entitled to receive any such shares of Common Stock due upon conversion as the
record holder or holders of such shares of Common Stock on such date, but such occurrence shall be
effective to constitute the Person or Persons entitled to receive such shares of Common Stock as
the record holder or holders thereof for all purposes at the close of business on the next
succeeding day on which such stock transfer books are open. Upon conversion of Notes, such Person
shall no longer be a Noteholder.




          (j) The Company shall not issue fractional shares of Common Stock upon conversion of Notes.
Instead, the Company shall pay cash in lieu of fractional shares equal to the number of such
fractional shares multiplied by the Last Reported Sales Price on the relevant Conversion Date or,
in the case of any Conversion Date occurring on or after December 12, 2014, the third Trading Day
preceding the Maturity Date.







54









 








          Section 15.03. Increased Conversion Rate Applicable to Certain Notes Surrendered in Connection
with Make-Whole Fundamental Changes.




          (a) Notwithstanding anything herein to the contrary, the Conversion Rate applicable to each
Note that is surrendered for conversion, in accordance with this Article 15, at any time from, and
including, the effective date (the “Effective Date”) of a Make-Whole Fundamental Change until, and
including, the close of business on the third Scheduled Trading Day immediately preceding the
related Fundamental Change Repurchase Date corresponding to such Make-Whole Fundamental Change, or
the fortieth Trading Day immediately following the Effective Date of such Make-Whole Fundamental
Change (in the case of a Make-Whole Fundamental Change that does not constitute a Fundamental
Change by virtue of the parenthetical in the definition of Make-Whole Fundamental Change) (such
period, the “Make-Whole Fundamental Change Period”), shall be increased to an amount equal to the
Conversion Rate that would, but for this Section 15.03, otherwise apply to such Note pursuant to
this Article 15, plus an amount equal to the Make-Whole Conversion Rate Adjustment.




          As used herein, “Make-Whole Conversion Rate Adjustment” shall mean, with respect to a
Make-Whole Fundamental Change, the amount set forth in the following table that corresponds to the
Effective Date of such Make-Whole Fundamental Change and the Stock Price for such Make-Whole
Fundamental Change, all as determined by the Company:




Make-Whole Conversion Rate Adjustment

(per $1,000 principal amount of Notes)




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Stock Price	 
	Effective Date	 	$14.57	 	 	$16.00	 	 	$17.50	 	 	$20.00	 	 	$22.50	 	 	$25.00	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$60.00	 	 	$75.00	 
	 	 
	April 20, 2010
	 	 	14.8034	 	 	 	12.5284	 	 	 	10.6932	 	 	 	8.4769	 	 	 	6.9377	 	 	 	5.8188	 	 	 	4.3188	 	 	 	3.3635	 	 	 	2.7248	 	 	 	2.2539	 	 	 	1.8862	 	 	 	1.3582	 	 	 	0.8564	 
	April 15, 2011
	 	 	14.8034	 	 	 	12.2932	 	 	 	10.3042	 	 	 	7.9607	 	 	 	6.3861	 	 	 	5.2781	 	 	 	3.8510	 	 	 	2.9802	 	 	 	2.4222	 	 	 	2.0084	 	 	 	1.6924	 	 	 	1.2365	 	 	 	0.7987	 
	April 15, 2012
	 	 	14.8034	 	 	 	11.9121	 	 	 	9.7024	 	 	 	7.1801	 	 	 	5.5613	 	 	 	4.4737	 	 	 	3.1572	 	 	 	2.4046	 	 	 	1.9437	 	 	 	1.6122	 	 	 	1.3593	 	 	 	0.9948	 	 	 	0.6431	 
	April 15, 2013
	 	 	14.8034	 	 	 	11.3219	 	 	 	8.8126	 	 	 	6.0714	 	 	 	4.4288	 	 	 	3.4075	 	 	 	2.2923	 	 	 	1.7222	 	 	 	1.3926	 	 	 	1.1621	 	 	 	0.9873	 	 	 	0.7333	 	 	 	0.4844	 
	April 15, 2014
	 	 	14.8034	 	 	 	10.0482	 	 	 	7.1073	 	 	 	4.1490	 	 	 	2.6247	 	 	 	1.8328	 	 	 	1.1535	 	 	 	0.8930	 	 	 	0.7365	 	 	 	0.6239	 	 	 	0.5359	 	 	 	0.4048	 	 	 	0.2738	 
	April 15, 2015
	 	 	14.8034	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 	 	 	0.0000	 





provided, however, that:





     (i) if the actual Stock Price of such Make-Whole Fundamental Change is between two
Stock Prices listed in the table above under the row titled “Stock Price,” or if the actual
Effective Date of such Make-Whole Fundamental Change is between two Effective Dates listed
in the table above in the column immediately below the title “Effective Date,” then the
Make-Whole Conversion Rate Adjustment for such Make-Whole Fundamental Change shall be
determined by the Company by straight-line interpolation between the Make-Whole Conversion
Rate Adjustment set forth for such higher and lower Stock Prices, or for such earlier and
later Effective Dates based on a 365 day year, as applicable;




     (ii) if the actual Stock Price of such Make-Whole Fundamental Change is greater than
$75.00 per share (subject to adjustment in the same manner as the Stock Price as provided in
clause (iii) below), or if the actual Stock Price of such Make-Whole Fundamental Change is
less than $14.57 per share (subject to adjustment in the same manner as the Stock Price as
provided in clause (iii) below), then the Make-Whole Conversion Rate Adjustment shall be
equal to zero and this Section 15.03 shall not require the Company to increase the
Conversion Rate with respect to such Make-Whole Fundamental Change;



55









 






     (iii) if an event occurs that requires, pursuant to this Article 15 (other than solely
pursuant to this Section 15.03), an adjustment to the Conversion Rate, then, on the date and
at the time such adjustment is so required to be made, each price set forth in the table
above under the row titled “Stock Price” shall be deemed to be adjusted so that such Stock
Price, at and after such time, shall be equal to the product of (1) such Stock Price as in
effect immediately before such adjustment to such Stock Price and (2) a fraction whose
numerator is the Conversion Rate in effect immediately before such adjustment to the
Conversion Rate and whose denominator is the Conversion Rate to be in effect, in accordance
with this Article 15, immediately after such adjustment to the Conversion Rate;




     (iv) each Make-Whole Conversion Rate Adjustment set forth in the table above shall be
adjusted in the same manner in which, at the same time and for the same events for which,
the Conversion Rate is to be adjusted pursuant to Section 15.04; and




     (v) in no event will the total number of shares of Common Stock issuable upon
conversion of the Notes exceed 68.6341 per $1,000 principal amount of Notes, subject to
adjustment in the same manner as the Conversion Rate pursuant to Section 15.04.



          (b) As soon as practicable after the Company determines the anticipated Effective Date of any
proposed Make-Whole Fundamental Change, the Company shall mail to each Noteholder, the Trustee and
the Conversion Agent written notice of, and shall issue a press release indicating, and publicly
announce, through a public medium that is customary for such announcements, and publish on the
Company’s website, the anticipated Effective Date of such proposed Make-Whole Fundamental Change
and shall use commercially reasonable efforts in time to give such notice fifty Business Days in
advance of such anticipated Effective Date, and shall promptly update such notice if such
anticipated Effective Date subsequently changes; provided that the Company shall not be required to
give such notice or issue such press release more than fifty Business Days in advance of such
anticipated Effective Date. Each such press release notice, announcement and publication shall
also state that in connection with such Make-Whole Fundamental Change, the Company shall increase,
in accordance herewith, the Conversion Rate applicable to Notes entitled as provided herein to such
increase (along with a description of how such increase shall be calculated and the time periods
during which Notes must be surrendered in order to be entitled to such increase). No later than
five Business Days after the actual Effective Date of each Make-Whole Fundamental Change, the
Company shall mail to each Noteholder, the Trustee and the Conversion Agent written notice of, and
shall issue a press release indicating, and publicly announce, through a public medium that is
customary for such announcements, and publish on the Company’s website, such Effective Date and the
amount by which the Conversion Rate has been so increased.




          Nothing in this Section 15.03 shall prevent an adjustment to the Conversion Rate pursuant to
Section 15.04 in respect of a Make-Whole Fundamental Change.




          Section 15.04. Adjustment of Conversion Rate. The Conversion Rate shall be adjusted from time
to time by the Company as follows:




          (a) If the Company issues solely shares of Common Stock as a dividend or distribution on all
or substantially all of the shares of Common Stock, or if the Company effects a share split or
share combination of the Common Stock, the applicable Conversion Rate will be adjusted based on the
following formula:





	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	OS	 	 
	 

	 	 	 	OS0 	 	 









56









 





where




	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Business Day immediately following the Record Date for such dividend or
distribution, or immediately prior to the open of business on the Business Day
immediately following the effective date of such share split or share combination, as
the case may be;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect immediately after the open of
business on the Business Day immediately following the Record Date for such dividend or
distribution, or immediately after the open of business on the Business Day immediately
following the effective date of such share split or share combination, as the case may
be;
	 
	 	 	 	 
	OS0

	 	=
	 	the number of shares of Common Stock outstanding immediately prior
to such dividend, distribution, share split or share combination, as the case may be;
and
	 
	 	 	 	 
	OS

	 	=
	 	the number of shares of Common Stock outstanding immediately after such
dividend, distribution, share split or share combination, as the case may be.





Such adjustment shall become effective immediately after the opening of business on the Business
Day immediately following the Record Date for such dividend or distribution, or the effective date
for such share split or share combination. If any dividend or distribution of the type described
in this Section 15.04(a) is declared but not so paid or made, or the outstanding shares of Common
Stock are not split or combined, as the case may be, the Conversion Rate shall be immediately
readjusted, effective as of the date the Board of Directors of the Company determines not to pay
such dividend or distribution, or split or combine the outstanding shares of Common Stock, as the
case may be, to the Conversion Rate that would then be in effect if such dividend, distribution,
share split or share combination had not been declared or announced.




          (b) If the Company distributes to all or substantially all holders of its Common Stock any
rights, options or warrants entitling them for a period of not more than sixty days from the record
date for such distribution to subscribe for or purchase shares of the Common Stock, at a price per
share less than the average of the Last Reported Sale Prices of the Common Stock for the ten
consecutive Trading Day period ending on, and including, the Trading Day immediately preceding the
declaration date for such distribution, the Conversion Rate shall be increased based on the
following formula:





	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	OS0 + X	 	 
	 

	 	 	 	OS0 + Y	 	 











where




	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Business Day immediately following the Record Date for such
distribution;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect immediately after the open of
business on the Business Day immediately following the Record Date for such
distribution;






57









 






	 	 	 	 	 

	OS0

	 	=
	 	the number of shares of the Common Stock that are outstanding immediately
prior to the open of business on the Business Day immediately following the Record Date
for such distribution;
	 
	 	 	 	 
	X

	 	=
	 	the total number of shares of the Common Stock issuable pursuant to such
rights, options or warrants; and
	 
	 	 	 	 
	Y

	 	=
	 	the number of shares of the Common Stock equal to the aggregate price payable
to exercise such rights, options or warrants, divided by the average of the Last
Reported Sale Prices of Common Stock over the ten consecutive Trading Day period ending
on, and including, the Trading Day immediately preceding the date of announcement of
such distribution of such rights, options or warrants.





Such adjustment shall be successively made whenever any such rights, options or warrants are
distributed and shall become effective immediately after the opening of business on the Business
Day immediately following the Record Date for such distribution. To the extent that shares of the
Common Stock are not delivered after the expiration of such rights, options or warrants, the
Conversion Rate shall be readjusted to the Conversion Rate that would then be in effect had the
adjustments made upon the issuance of such rights, options or warrants been made on the basis of
delivery of only the number of shares of Common Stock actually delivered. If such rights, options
or warrants are not so issued, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such Record Date for such distribution had not been fixed.




          For purposes of this Section 15.04(b), in determining whether any rights, options or warrants
entitle the holders to subscribe for or purchase shares of the Common Stock at less than the
average of the Last Reported Sale Prices of the Common Stock for each Trading Day in the applicable
ten-consecutive-Trading Day period and for the purpose of computing Y in the formula above, there
shall be taken into account any consideration received by the Company for such rights, options or
warrants and any amount payable on exercise or conversion thereof, the value of such consideration,
if other than cash, to be determined by the Board of Directors of the Company. In no event shall
the Conversion Rate be decreased pursuant to this Section 15.04(b).




          (c) If the Company shall distribute shares of its Capital Stock, evidences of its indebtedness
or other of its assets or property other than (i) dividends or distributions (including share
splits) covered by Section 15.04(a) or Section 15.04(b), (ii) dividends or distributions paid
exclusively in cash and covered by Section 15.04(d), and (iii) Spin-Offs to which the provisions
set forth below in this Section 15.04(c) shall apply (any of such shares of Capital Stock,
indebtedness, or other asset or property hereinafter in this Section 15.04(c) called the
“Distributed Property”), to all or substantially all holders of its Common Stock, then, in each
such case the Conversion Rate shall be increased based on the following formula:





	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	SP0	 	 
	 

	 	 	 	SP0 – FMV	 	 








where




	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Business Day immediately following the Record Date for such
distribution;






58









 






	 	 	 	 	 

	CR

	 	=
	 	the applicable Conversion Rate in effect immediately after the open of
business on the Business Day immediately following the Record Date for such
distribution.
	 
	SP0

	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock
over the ten consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Ex-Dividend Date for such distribution; and
	 
	FMV

	 	=
	 	the fair market value (as determined by the Board of Directors of the
Company) of the shares of Capital Stock, evidences of indebtedness, assets or property
distributed with respect to each outstanding share of the Common Stock as of the open
of business on the Ex-Dividend Date for such distribution.





Such adjustment shall become effective immediately prior to the opening of business on the Business
Day immediately following the Record Date for such distribution; provided that if “FMV” as set
forth above is equal to or greater than “SP0” as set forth above, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right
to receive on conversion in respect of each $1,000 principal amount of the Notes held by such
holder, in addition to the number of shares of Common Stock equal to the Conversion Rate, the
amount and kind of Distributed Property such holder would have received had such holder owned a
number of shares of Common Stock equal to the Conversion Rate immediately prior to the Record Date
for such distribution. If such distribution is not so paid or made, the Conversion Rate shall
again be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. If the Board of Directors of the Company determines “FMV” for
purposes of this Section 15.04(c) by reference to the actual or when issued trading market for any
securities, it must in doing so consider the prices in such market over the same period used in
computing the Last Reported Sale Prices of the Common Stock over the ten consecutive Trading Day
period ending on the Trading Day immediately preceding the Ex-Dividend Date for such distribution.




          With respect to an adjustment pursuant to this Section 15.04(c) where there has been a
dividend or other distribution on the Common Stock of shares of Capital Stock of any class or
series, or similar equity interest, of or relating to a Subsidiary or other business unit of the
Company that are, or when issued will be, traded or quoted on any national or regional securities
exchange or market (a “Spin-Off”), the Conversion Rate will be increased based on the following
formula:





	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	FMV0 + MP0	 	 
	 

	 	 	 	MP0 	 	 









where




	 	 	 	 	 

	CR0

	 	=
	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Business Day immediately following the Record Date for the Spin-Off;
	 
	 	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect immediately after the open of
business on the Business Day immediately following the Record Date for the Spin-Off;
	 
	 	 	 	 
	FMV0

	 	=
	 	the average of the Last Reported Sale Prices of the Capital Stock or
similar equity interest distributed to holders of the Common Stock applicable to one
share of the Common Stock over the first ten consecutive Trading Day period






59









 






	 	 	 	 	 

	 

	 	 	 	immediately following, and including, the effective date for the Spin-Off
(such period, the “Valuation Period”), and
	 
	 	 	 	 
	MP0

	 	=
	 	the average of the Last Reported Sale Prices of the Common Stock over the
Valuation Period.





The adjustment to the Conversion Rate under the preceding paragraph of this Section 15.04(c) shall
be made immediately after the opening of business on the day after the last day of the Valuation
Period, but shall become effective as of the opening of business on the Business Day immediately
following the Record Date for the Spin-Off.




          Subject in all respects to Section 15.10, rights, options or warrants distributed by the
Company to all holders of its Common Stock entitling the holders thereof to subscribe for or
purchase shares of the Company’s Capital Stock, including Common Stock (either initially or under
certain circumstances), which rights, options or warrants, until the occurrence of a specified
event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of the Common
Stock; (ii) are not exercisable; and (iii) are also issued in respect of future issuances of the
Common Stock, shall be deemed not to have been distributed for purposes of this Section 15.04 (and
no adjustment to the Conversion Rate under this Section 15.04 will be required) until the
occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to
have been distributed and an appropriate adjustment (if any is required) to the Conversion Rate
shall be made under this Section 15.04(c). If any such right, option or warrant, including any
such existing rights, options or warrants distributed prior to the date of this Indenture, are
subject to events, upon the occurrence of which such rights, options or warrants become exercisable
to purchase different securities, evidences of indebtedness or other assets, then the date of the
occurrence of any and each such event shall be deemed to be the date of distribution and Record
Date with respect to new rights, options or warrants with such rights (and a termination or
expiration of the existing rights, options or warrants without exercise by any of the holders
thereof). In addition, in the event of any distribution (or deemed distribution) of rights,
options or warrants, or any Trigger Event or other event (of the type described in the preceding
sentence) with respect thereto that was counted for purposes of calculating a distribution amount
for which an adjustment to the Conversion Rate under this Section 15.04 was made, (1) in the case
of any such rights, options or warrants that shall all have been redeemed or repurchased without
exercise by any holders thereof, the Conversion Rate shall be readjusted upon such final redemption
or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though
it were a cash distribution, equal to the per share redemption or repurchase price received by a
holder or holders of Common Stock with respect to such rights, options or warrants (assuming such
holder had retained such rights or warrants), made to all holders of Common Stock as of the date of
such redemption or repurchase, and (2) in the case of such rights, options or warrants that shall
have expired or been terminated without exercise by any holders thereof, the Conversion Rate shall
be readjusted as if such rights, options and warrants had not been issued.




          For purposes of this Section 15.04(c), Section 15.04(a), and Section 15.04(b), any dividend or
distribution to which this Section 15.04(c) is applicable that also includes shares of Common
Stock, or rights, options or warrants to subscribe for or purchase shares of Common Stock to which
Section 15.04(b) applies (or both), shall be deemed instead to be (1) a dividend or distribution of
the evidences of indebtedness, assets or shares of capital stock other than such shares of Common
Stock or rights, options or warrants to which Section 15.04(c) applies (and any Conversion Rate
adjustment required by this Section 15.04(c) with respect to such dividend or distribution shall
then be made) immediately followed by (2) a dividend or distribution of such shares of Common Stock
or such rights, options or warrants (and any further Conversion Rate adjustment required by Section
15.04(a) and Section 15.04(b) with respect to such dividend or distribution shall then be made),
except (A) the





60











 




Business Day immediately following the Record Date of such dividend or distribution shall be
substituted as “the date of announcement of such distribution of such rights, options or warrants”
and “the Business Day immediately following the Record Date for such distribution” within the
meaning of Section 15.04(b) and (B) any shares of Common Stock included in such dividend or
distribution shall not be deemed “outstanding immediately prior to such dividend, distribution,
share split or share combination, as the case may be” within the meaning of Section 15.04(a) or
“outstanding immediately prior to the open of business on the Business Day immediately following
the Record Date for such distribution” within the meaning of Section 15.04(b).




          In no event shall the Conversion Rate be decreased pursuant to this Section 15.04(c).




          (d) If any cash dividend or distribution is made to all or substantially all holders of its
outstanding Common Stock, the applicable Conversion Rate shall be increased based on the following
formula:






	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	SP0	 	 
	 

	 	 	 	SP0 – C	 	 




where




	 	 	 	 	 

	CR0

	 	=	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Business Day immediately following the Record Date for such dividend or
distribution;
	 	 	 
	CR
	 	 = 	 	the applicable Conversion Rate in effect immediately after the open of
business on the Business Day immediately following the Record Date for such dividend or
distribution;
	 	 	 
	SP0

	 	=	 	the average of the Last Reported Sale Prices of the Common Stock over the
ten consecutive Trading Day period ending on, and including, the Trading Day
immediately preceding the Ex-Dividend Date for such dividend or distribution; and
	 	 	 
	C

	 	=
	 	the amount in cash per share the Company pays or distributes to holders of
its Common Stock.





Such adjustment shall become effective immediately after the opening of business on the Business
Day immediately following the Record Date for such dividend or distribution; provided that if “C”
as set forth above is equal to or greater than “SP0” as set forth above, in lieu of the
foregoing adjustment, adequate provision shall be made so that each Noteholder shall have the right
to receive on the date on which the relevant cash dividend or distribution is distributed to
holders of Common Stock, for each $1,000 principal amount of Notes, the amount of cash such holder
would have received had such holder owned a number of shares equal to the Conversion Rate
immediately prior to the Record Date for such dividend or distribution. If such dividend or
distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.




          For the avoidance of doubt, for purposes of this Section 15.04(d), in the event of any
reclassification of the Common Stock, as a result of which the Notes become convertible into more
than one class of Common Stock, if an adjustment to the Conversion Rate is required pursuant to
this Section







61









 







15.04(d), references in this Section to one share of Common Stock or Last Reported Sale Prices of one
share of Common Stock shall be deemed to refer to a unit or to the price of a unit consisting
of the number of shares of each class of Common Stock into which the Notes are then convertible
equal to the numbers of shares of such class issued in respect of one share of Common Stock in such
reclassification. The above provisions of this paragraph shall similarly apply to successive
reclassifications.




          In no event shall the Conversion Rate be decreased pursuant to this Section 15.04(d).




          (e) If the Company or any of its Subsidiaries makes a payment in respect of a tender offer or
exchange offer for the Common Stock and if the cash and value of any other consideration included
in the payment per share of the Common Stock exceeds the average of the Last Reported Sale Prices
of the Common Stock over the ten consecutive Trading-Day period commencing on, and including, the
Trading Day next succeeding the last date on which tenders or exchanges may be made pursuant to
such tender or exchange offer (the “Expiration Date”), the Conversion Rate shall be increased based
on the following formula:






	 	 	 	 	 	 	 	 	 
	 

	 	CR = CR0
	 	x
	 	AC + (SP x OS)	 	 
	 

	 	 	 	OS0 x SP
	 	 





where




	 	 	 	 	 

	CR0

	 	=	 	the applicable Conversion Rate in effect immediately prior to the open of
business on the Trading Day next succeeding the Expiration Date;
	 	 	 
	CR

	 	=
	 	the applicable Conversion Rate in effect immediately after the open of
business on the Trading Day next succeeding the Expiration Date;
	 	 	 
	AC

	 	 =	 	the aggregate value of all cash and any other consideration (as determined by
the Board of Directors of the Company) paid or payable for shares of Common Stock
purchased in such tender or exchange offer;
	 	 	 
	OS0

	 	=	 	the number of shares of Common Stock outstanding immediately prior
to the time (the “Expiration Time”) such tender or exchange offer expires (prior to
giving effect to such tender offer or exchange offer);
	 	 	 
	OS

	 	= 	 	the number of shares of Common Stock outstanding immediately after the
Expiration Time (after giving effect to such tender offer or exchange offer); and
	 	 	 
	SP

	 	=	 	the average of the Last Reported Sale Prices of Common Stock over the ten
consecutive Trading Day period commencing on, and including, the Trading Day next
succeeding the Expiration Date.





Such adjustment under this Section 15.04(e) shall become effective at the opening of business on
the Trading Day next succeeding the Expiration Date. If the Company is obligated to purchase
shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by
applicable law from effecting any or all or any portion of such purchases or all such purchases are
rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be
in effect if such tender or exchange offer had not been made or had been made only in respect of
the purchases that had been effected. In no event shall the Conversion Rate be decreased pursuant
to this Section 15.04(e).





62









 








          (f) The term “Record Date” shall mean, with respect to any dividend, distribution or other
transaction or event in which the holders of Common Stock (or other security) have the right to
receive any cash, securities or other property or in which the Common Stock (or other
applicable security) is exchanged for or converted into any combination of cash, securities or
other property, the date fixed for determination of stockholders entitled to receive such cash,
securities or other property (whether such date is fixed by the Board of Directors of the Company
or by statute, contract or otherwise).




          (g) Except as stated herein, the Company shall not adjust the Conversion Rate for the issuance
of shares of its Common Stock or any securities convertible into or exchangeable for shares of its
Common Stock or the right, option or warrant to purchase shares of its Common Stock or such
convertible or exchangeable securities.




          (h) Notwithstanding this Section 15.04 or any other provision of this Indenture or the Notes,
if any Conversion Rate adjustment becomes effective, or any Ex-Dividend Date for any issuance,
dividend or distribution (relating to a required Conversion Rate adjustment) occurs, during the
period beginning on, and including, the open of business on a Conversion Date and ending on, and
including, the close of business on the third Trading Day immediately following the relevant
Conversion Date, the Board of Directors of the Company shall make adjustments to the Conversion
Rate and the number of shares of Common Stock issuable upon conversion of the Notes as are
necessary or appropriate to effect the intent of this Section 15.04 and the other provisions of
this Article 15 and to avoid unjust or inequitable results, as determined in good faith by the
Board of Directors of the Company. Any adjustment made pursuant to this Section 15.04(h) shall
apply in lieu of the adjustment or other term that would otherwise be applicable.




          (i) In addition to those required by clauses (a), (b), (c), (d) and (e) of this Section 15.04,
and to the extent permitted by applicable law and subject to the applicable rules of the New York
Stock Exchange, the Company from time to time may increase the Conversion Rate by any amount for a
period of at least twenty Business Days if the Board of Directors of the Company determines that
such increase would be in the Company’s best interest. In addition, the Company may also (but is
not required to) increase the Conversion Rate to avoid or diminish any income tax to holders of
Common Stock or rights to purchase Common Stock in connection with any dividend or distribution of
shares (or rights to acquire shares) or similar event. Whenever the Conversion Rate is increased
pursuant to the preceding sentence, the Company shall mail to the holder of each Note at its last
address appearing on the Note Register provided for in Section 2.06 a notice of the increase at
least fifteen days prior to the date the increased Conversion Rate takes effect, and such notice
shall state the increased Conversion Rate and the period during which it will be in effect.




          (j) The Company shall not take any action that would result in adjustment of the Conversion
Rate, pursuant to this Article 15, in such a manner as to result in the reduction of the Conversion
Price to less than the par value per share of Common Stock.




          (k) The applicable Conversion Rate will not be adjusted:





     (i) upon the issuance of any shares of the Common Stock pursuant to any present or
future plan providing for the reinvestment of dividends or interest payable on the Company’s
securities and the investment of additional optional amounts in shares of the Common Stock
under any plan;



63









 






     (ii) upon the issuance of any shares of the Common Stock or options or rights to
purchase those shares pursuant to any present or future employee, director or consultant
benefit plan or program of, or assumed by, the Company or any of the Company’s Subsidiaries;




     (iii) upon the issuance of any shares of the Common Stock pursuant to any option,
warrant, right or exercisable, exchangeable or convertible security not described in clause
(ii) of this subsection and outstanding as of the date the Notes were first issued;




     (iv) for a change in the par value of the Common Stock;




     (v) for accrued and unpaid interest, including Additional Interest, if any; or




     (vi) for any transactions described in this Section 15.04 if Noteholders participate
(as a result of holding the Notes, and at the same time as holders of Common Stock
participate) in such transactions as if such Noteholders held a number shares of Common
Stock equal to the Conversion Rate at the time such adjustment would be required, multiplied
by the principal amount (expressed in thousands) of Notes held by such Noteholder, without
having to convert their Notes.



          (l) All calculations and other determinations under this Article 15 shall be made by the
Company and shall be made to the nearest one-ten thousandth (1/10,000) of a share.




          (m) The Company shall not be required to make an adjustment in the Conversion Rate unless the
adjustment would require a change of at least 1% in the Conversion Rate. However, the Company
shall carry forward any adjustments that are less than 1% of the Conversion Rate and make such
carried forward adjustment, regardless of whether the aggregate adjustment is less than 1%, upon
any conversion of Notes.




          (n) Whenever the Conversion Rate is adjusted as herein provided, the Company shall promptly
file with the Trustee and any Conversion Agent other than the Trustee an Officers’ Certificate
setting forth the Conversion Rate after such adjustment and setting forth a brief statement of the
facts requiring such adjustment, and the Company shall issue a press release containing such
information and make such information available on the Company’s website. Unless and until a
Responsible Officer of the Trustee shall have received such Officers’ Certificate, the Trustee
shall not be deemed to have knowledge of any adjustment of the Conversion Rate and may assume
without inquiry that the last Conversion Rate of which it has knowledge is still in effect.
Promptly after delivery of such certificate, the Company shall prepare a notice of such adjustment
of the Conversion Rate setting forth the adjusted Conversion Rate and the date on which each
adjustment becomes effective and shall mail such notice of such adjustment of the Conversion Rate
to the holder of each Note at its last address appearing on the Note Register provided for in
Section 2.06 of this Indenture, within ten days of the effective date of such adjustment. Failure
to deliver such notice shall not affect the legality or validity of any such adjustment.




          (o) For purposes of this Section 15.04, the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company but shall include shares
issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock.
The Company will not pay any dividend or make any distribution on shares of Common Stock held in
the treasury of the Company.




          Section 15.05. Shares to Be Fully Paid. The Company shall provide, free from preemptive
rights, out of its authorized but unissued shares or shares held in treasury, sufficient shares of


64









 







Common Stock to provide for conversion of the Notes from time to time as such Notes are presented
for conversion.




          Section 15.06. Effect of Reclassification, Consolidation, Merger or Sale. Upon the occurrence
of (i) any reclassification or change of the outstanding shares of Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value, or as a
result of a split, subdivision or combination covered by Section 15.04(a)), (ii) any consolidation,
merger, binding share exchange or combination involving the Company, or (iii) any sale or
conveyance of all or substantially all of the property and assets of the Company to any other
Person, in each case as a result of which holders of Common Stock shall be entitled to receive
cash, securities or other property or assets with respect to or in exchange for such Common Stock
(any such event a “Merger Event”), then:




          (a) the Company or the successor or purchasing Person, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall comply with the Trust Indenture Act as in force
at the date of execution of such supplemental indenture if such supplemental indenture is then
required to so comply) permitted under Section 11.01(g) providing for the conversion and settlement
of the Notes as set forth in this Indenture. Such supplemental indenture shall provide for
adjustments that shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Article 15. If, in the case of any Merger Event, the Reference Property includes
shares of stock or other securities and assets of a corporation other than the successor or
purchasing corporation, as the case may be, in such reclassification, change, consolidation,
merger, combination, sale or conveyance, then such supplemental indenture shall also be executed by
such other corporation and shall contain such additional provisions to protect the interests of the
holders of the Notes as the Board of Directors of the Company shall reasonably consider necessary
by reason of the foregoing, including to the extent required by the Board of Directors of the
Company and practicable the provisions providing for the repurchase rights set forth in Article 16
herein.





     In the event the Company shall execute a supplemental indenture pursuant to this
Section 15.06, the Company shall promptly file with the Trustee an Officers’ Certificate
briefly stating the reasons therefor, the kind or amount of cash, securities or property or
asset that will comprise the Reference Property after any such Merger Event, any adjustment
to be made with respect thereto and that all conditions precedent have been complied with,
and shall promptly mail notice thereof to all Noteholders. The Company shall cause notice
of the execution of such supplemental indenture to be mailed to each Noteholder, at its
address appearing on the Note Register provided for in this Indenture, within twenty days
after execution thereof. Failure to deliver such notice shall not affect the legality or
validity of such supplemental indenture.



          (b) Notwithstanding the provisions of Section 15.02(a), and subject to the provisions of
Section 15.01 and Section 15.03, at and after the effective time of such Merger Event, (i) the
right to convert each $1,000 principal amount of Notes into shares of Common Stock will be changed
to a right to convert each $1,000 principal amount of such Note into the kind and amount of shares
of stock, securities or other property or assets (including cash or any combination thereof) that a
holder of a number of shares of Common Stock equal to the Conversion Rate immediately prior to such
transaction would have owned or been entitled to receive (the “Reference Property”), and (ii) the
related Conversion Obligation shall be settled as set forth under clause (c) below. The Company
shall not become a party to any Merger Event unless its terms are consistent with this Section
15.06. None of the foregoing provisions shall affect the right of a holder of Notes to convert its
Notes into shares of Common Stock as set forth in Section 15.01 and Section 15.02 prior to the
effective date of such Merger Event.





65









 








          (c) With respect to each $1,000 principal amount of Notes surrendered for conversion after the
effective date of any such Merger Event, the Company’s Conversion Obligation shall be settled in
units of Reference Property, in accordance with Section 15.02(a) as follows: the Company shall
deliver to the converting Noteholder a number of units of Reference Property (each such unit
comprised of the kind and amount of shares of stock, securities or other property or assets
(including cash or any combination thereof) that a holder of one share of Common Stock immediately
prior to such Merger Event would have owned or been entitled to receive based on the Weighted
Average Consideration) equal to (1) the aggregate principal amount of Notes to be converted,
divided by $1,000, multiplied by (2) the then-applicable Conversion Rate;





     (i) The Company will deliver the cash in lieu of fractional units of Reference
Property as set forth pursuant to Section 15.02(j) (provided that the amount of such
cash shall be determined as if references in such Section to “the Last Reported Sale
Price of the Common Stock” were instead a reference to “the Last Reported Sale Price
of a unit of Reference Property composed of the kind and amount of shares of stock,
securities or other property or assets (including cash or any combination thereof)
that a holder of one share of Common Stock immediately prior to such Merger Event
would have owned or been entitled to receive based on the Weighted Average
Consideration”).




     (ii) For purposes of this Section 15.06, the “Weighted Average Consideration”
shall mean the weighted average of the types and amounts of consideration received
by the holders of the Common Stock entitled to receive cash, securities or other
property or assets with respect to or in exchange for such Common Stock in any
Merger Event who affirmatively make such an election.




     (iii) The Company shall notify the holders of the Weighted Average
Consideration as soon as practicable after the Weighted Average Consideration is
determined.



          (d) The above provisions of this Section shall similarly apply to successive Merger Events.




          Section 15.07. Certain Covenants.




          (a) The Company covenants that all shares of Common Stock issued upon conversion of Notes will
be fully paid and non-assessable by the Company and free from all taxes, liens and charges with
respect to the issue thereof.




          (b) The Company covenants that, if any shares of Common Stock to be provided for the purpose
of conversion of Notes hereunder require registration with or approval of any governmental
authority under any federal or state law before such shares may be validly issued upon conversion,
the Company will, to the extent then permitted by the rules and interpretations of the Commission,
secure such registration or approval, as the case may be.




          (c) The Company further covenants that if at any time the Common Stock shall be listed on any
national securities exchange or automated quotation system, the Company will list and keep listed,
so long as the Common Stock shall be so listed on such exchange or automated quotation system, any
Common Stock issuable upon conversion of the Notes.





66









 








          Section 15.08. Responsibility of Trustee. The Trustee and any other Conversion Agent shall
not at any time be under any duty or responsibility to any Noteholder to determine the Conversion
Rate (or any adjustment thereto) or whether any facts exist that may require any adjustment
(including any increase) of the Conversion Rate, or with respect to the nature or extent or
calculation of any such adjustment when made, or with respect to the method employed, or herein or
in any supplemental indenture provided to be employed, in making the same. The Trustee and any other Conversion
Agent shall not be accountable with respect to the validity or value (or the kind or amount) of any
shares of Common Stock, or of any securities, property or cash that may at any time be issued or
delivered upon the conversion of any Note; and the Trustee and any other Conversion Agent make no
representations with respect thereto. Neither the Trustee nor any Conversion Agent shall be
responsible for any failure of the Company to issue, transfer or deliver any shares of Common Stock
or stock certificates or other securities or property or cash upon the surrender of any Note for
the purpose of conversion or to comply with any of the duties, responsibilities or covenants of the
Company contained in this Article. Without limiting the generality of the foregoing, neither the
Trustee nor any Conversion Agent shall be under any responsibility to determine the correctness of
any provisions contained in any supplemental indenture entered into pursuant to Section 15.06
relating either to the kind or amount of shares of stock or securities or property (including cash)
receivable by Noteholders upon the conversion of their Notes after any event referred to in such
Section 15.06 or to any adjustment to be made with respect thereto, but, subject to the provisions
of Section 8.01, may accept (without any independent investigation) as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, the Officers’
Certificate (which the Company shall be obligated to file with the Trustee prior to the execution
of any such supplemental indenture) with respect thereto.




          Section 15.09. Notice to Noteholders Prior to Certain Actions. In case:




          (a) the Company shall declare a dividend (or any other distribution) on its Common Stock that
would require an adjustment in the Conversion Rate pursuant to Section 15.04; or




          (b) the Company shall authorize the granting to all of the holders of its Common Stock of
rights, options or warrants to subscribe for or purchase any share of any class or any other
rights, options or warrants; or




          (c) of any reclassification of the Common Stock of the Company (other than a subdivision or
combination of its outstanding Common Stock, or a change in par value, or from par value to no par
value, or from no par value to par value), or of any consolidation or merger to which the Company
is a party and for which approval of any stockholders of the Company is required, or of the sale or
transfer of all or substantially all of the assets of the Company; or




          (d) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company;



the Company shall cause to be filed with the Trustee and to be mailed to each Noteholder at its
address appearing on the Note Register, provided for in Section 2.06 of this Indenture, as promptly
as possible but in any event at least twenty days prior to the applicable date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for the purpose of such
dividend, distribution or rights, options or warrants, or, if a record is not to be taken, the date
as of which the holders of Common Stock of record to be entitled to such dividend, distribution or
rights are to be determined, or (ii) the date on which such reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding-up is expected to become effective or
occur, and the date as of which it is expected that holders of Common Stock of record shall be
entitled to exchange their Common Stock for securities or other property deliverable upon such


67









 






reclassification, consolidation, merger, sale, transfer, dissolution, liquidation or winding-up.
Failure to give such notice, or any defect therein, shall not affect the legality or validity of
such dividend, distribution, reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding-up.




          Section 15.10. Stockholder Rights Plans. To the extent that the Company has a stockholder
rights plan or other “poison pill” in effect upon conversion of the Notes, each share of Common
Stock issued upon such conversion shall be entitled to receive the appropriate number of rights, if
any, and the certificates representing the Common Stock issued upon such conversion shall bear such
legends, if any, in each case as may be provided by the terms of any such stockholder rights plan
or poison pill, as the same may be amended from time to time. If, however, prior to the time of
conversion, the rights have separated from the shares of Common Stock in accordance with the
provisions of the applicable stockholder rights agreement so that the holders of the Notes would
not be entitled to receive any rights in respect of Common Stock issuable upon conversion of the
Notes, the Conversion Rate will be adjusted at the time of separation as if the Company has
distributed to all holders of Common Stock, shares of Capital Stock of the Company, evidence of
indebtedness or assets as provided in Section 15.04(c), subject to readjustment in the event of the
expiration, termination or redemption of such rights.




          Section 15.11. Extension of Conversion Settlement Date.




          (a) Until the earlier of February 21, 2014 or the first date upon which the Credit Facility is
no longer in full force and effect, if at the time that would otherwise constitute a Settlement
Date in respect of a given conversion of Notes, any “Default”, as defined in the Credit Facility,
exists thereunder (a “Credit Facility Default”) and the delivery of the relevant Conversion
Obligation would, as a result, constitute a breach of the Credit Facility, the Company may defer
settlement of such conversion (a “Settlement Extension”) until the earlier of (a) such time as such
settlement would no longer constitute a breach of the Credit Facility, whether due to cure of the
applicable Credit Facility Default, termination of the Credit Facility or otherwise, and (b) the
60th Business Day following the otherwise applicable Settlement Date (the “Maximum Extension
Date”).




          (b) The Company shall promptly notify the Noteholders and the Trustee of any Settlement
Extension it elects; provided that the effectiveness of such Settlement Extension shall not depend
upon any such notice having been given.




          (c) Any Notes (“Affected Notes”) that are not converted upon the otherwise applicable
Settlement Date as a result of a Settlement Extension shall remain outstanding hereunder until such
time (the “Extended Settlement Date”) as the Company delivers the Conversion Obligation in respect
of such Affected Notes pursuant to the terms hereof. Each Noteholder of Affected Notes (and its
transferees) shall remain a Noteholder hereunder and shall retain all rights as Noteholder of the
Affected Notes (including, for the avoidance of doubt, the right to receive interest in respect of
such Affected Notes, which, notwithstanding any other provision of this Indenture or the Notes,
shall be payable through and upon the Extended Settlement Date).




          (d) Notwithstanding anything to the contrary herein, the “Conversion Date” as such term is
used in this Indenture in respect of any Affected Notes shall be the Extended Settlement Date for
such Affected Notes.




          (e) Any Make-Whole Conversion Rate Adjustment that but for a Settlement Extension would have
applied to the Conversion Rate in respect of any Affected Notes surrendered for conversion shall be
applied to such Conversion Rate in respect of such Affected Notes notwithstanding such Settlement
Extension.




68









 








          (f) No holder of Affected Notes shall be required to make any payment pursuant to Section
15.02(h) as a result of any Settlement Extension.




ARTICLE 16

REPURCHASE OF NOTES UPON A FUNDAMENTAL CHANGE




          Section 16.01. [Reserved]




          Section 16.02. Repurchase at Option of Noteholders upon a Fundamental Change. (a) If there
shall occur a Fundamental Change at any time prior to the Maturity Date, then each Noteholder shall
have the right, at such holder’s option, to require the Company to repurchase for cash all of such
holder’s Notes, or any portion thereof that is an integral multiple of $1,000 principal amount, on
the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not less than
twenty Business Days and not more than thirty-five Business Days after the date of the Fundamental
Change Company Notice (as defined below) at a repurchase price equal to 100% of the principal
amount thereof, together with accrued and unpaid interest, including unpaid Additional Interest, if
any, thereon to, but excluding, the Fundamental Change Repurchase Date (the “Fundamental Change
Repurchase Price”), unless the Fundamental Change Repurchase Date is after an Interest Record Date
and on or prior to the related Interest Payment Date, in which case interest accrued to the
Interest Payment Date will be paid to holders of the Notes as of the preceding Interest Record Date
and the Fundamental Change Repurchase Price payable to the holder surrendering the Note for
repurchase pursuant to this Article 16 shall be equal to the principal amount of Notes subject to
repurchase and will not include any accrued and unpaid interest, including Additional Interest, if
any. Repurchases of Notes under this Section 16.02 shall be made, at the option of the holder
thereof, upon:





     (i) delivery to the Paying Agent by a holder of a duly completed notice (the
“Fundamental Change Repurchase Notice”) in the form set forth on the reverse of the Note and
attached as Exhibit C hereto on or prior to the second Scheduled Trading Day immediately
preceding the Fundamental Change Repurchase Date; and




     (ii) delivery or book-entry transfer of the Notes to the Paying Agent on or prior to
the second Scheduled Trading Day immediately preceding the Fundamental Change Repurchase
Date (together with all necessary endorsements) at the office of the Paying Agent, such
delivery being a condition to receipt by the holder of the Fundamental Change Repurchase
Price therefor; provided that such Fundamental Change Repurchase Price shall be so paid
pursuant to this Section 16.02 only if the Note so delivered to the Paying Agent shall
conform in all respects to the description thereof in the related Fundamental Change
Repurchase Notice.



          The Fundamental Change Repurchase Notice shall state:





     (A) if certificated, the certificate numbers of Notes to be delivered for repurchase;




     (B) the portion of the principal amount of Notes to be repurchased, which must be
$1,000 or an integral multiple thereof; and




     (C) that the Notes are to be repurchased by the Company pursuant to the applicable
provisions of the Notes and this Indenture;


provided, however, that if the Notes are not in certificated form, the Fundamental Change
Repurchase Notice must comply with appropriate Depositary procedures.





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          Any repurchase by the Company contemplated pursuant to the provisions of this Section 16.02
shall be consummated by the payment of the Fundamental Change Repurchase Price pursuant to Section
16.04(a).




          Notwithstanding anything herein to the contrary, any holder delivering to the Paying Agent the
Fundamental Change Repurchase Notice contemplated by this Section 16.02 shall have the right to
withdraw, in whole or in part, such Fundamental Change Repurchase Notice at any time prior to the
close of business on the second Scheduled Trading Day immediately preceding the Fundamental Change
Repurchase Date in accordance with Section 16.03.




          The Paying Agent shall promptly notify the Company of the receipt by it of any Fundamental
Change Repurchase Notice or written notice of withdrawal thereof.




          (b) On or before the twentieth calendar day after the occurrence of the effective date of a
Fundamental Change, the Company shall mail or cause to be mailed to all holders of record of the
Notes a notice (the “Fundamental Change Company Notice”) of, and issue a press release (and make
the press release available on the Company’s website) in respect of, the occurrence of the
effective date of the Fundamental Change and of the repurchase right at the option of the holders
arising as a result thereof. Such mailing shall be by first class mail. The Company shall also
deliver a copy of the Fundamental Change Company Notice to the Trustee, the Paying Agent and the
Conversion Agent within five Business Days after the effective date of the Fundamental Change.
Each Fundamental Change Company Notice shall specify:





     (i) the events causing the Fundamental Change;




     (ii) the effective date of the Fundamental Change, and whether the Fundamental Change
is a Make-Whole Fundamental Change, in which case the Effective Date of the Make-Whole
Fundamental Change;




     (iii) the last date on which a holder may exercise the repurchase right pursuant to
this Article 16;




     (iv) the Fundamental Change Repurchase Price;




     (v) the Fundamental Change Repurchase Date;




     (vi) if applicable, the name and address of the Paying Agent and the Conversion Agent;




     (vii) if applicable, the applicable Conversion Rate, and any adjustments to the
applicable Conversion Rate;




     (viii) if applicable, that the Notes with respect to which a Fundamental Change
Repurchase Notice has been delivered by a holder may be converted only if the holder
withdraws the Fundamental Change Repurchase Notice in accordance with the terms of this
Indenture;




     (ix) that the holder must exercise the repurchase right on or prior to the close of
business on the Scheduled Trading Day immediately preceding the Fundamental Change
Repurchase Date (the “Fundamental Change Expiration Time”);



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     (x) that the holder shall have the right to withdraw any Notes surrendered prior to the
Fundamental Change Expiration Time; and




     (xi) the procedures that holders must follow to require the Company to repurchase their
Notes.



          No failure of the Company to give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the proceedings for the repurchase of the
Notes pursuant to this Section 16.02.




          (c) Notwithstanding the foregoing, no Notes may be repurchased by the Company at the option of
the holders upon a Fundamental Change if the principal amount of the Notes has been accelerated,
and such acceleration has not been rescinded, on or prior to the Fundamental Change Repurchase Date
(except in the case of an acceleration resulting from a Default by the Company in the payment of
the Fundamental Change Repurchase Price with respect to such Notes).




          (d) In connection with any purchase offer, the Company will:





     (i) comply with the provisions of Rule 13e-4, Rule 14e-1 and any other tender offer
rules under the Exchange Act, if required under the Exchange Act,




     (ii) file a Schedule TO or any successor or similar schedule, if required under the
Exchange Act, and




     (iii) otherwise comply with all federal and state securities laws in connection with
any offer by the Company to purchase the Notes.



          Notwithstanding anything to the contrary provided in this Indenture, compliance by the Company
with Rule 13e-4, Rule 14e-1 and any other tender offer rule under the Exchange Act in accordance
with clause (i) above, to the extent inconsistent with any other provision of this Indenture, will
not, standing alone, constitute an Event of Default solely as a result of compliance by the Company
with such rules.




          Notwithstanding the foregoing the Company shall not be required to repurchase the Notes in
accordance with this Section 16.02 if a third party makes an offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Section 16.02 and purchases all
Notes validly tendered and not withdrawn under such purchase offer.




          Section 16.03. Withdrawal of Fundamental Change Repurchase Notice A Fundamental Change Repurchase Notice
may be withdrawn by means of a written notice of withdrawal delivered to the Corporate Trust Office
of the Paying Agent in accordance with this Section 16.03 at any time prior to the close of
business on the second Scheduled Trading Day immediately preceding the Fundamental Change
Repurchase Date, specifying:





     (i) the certificate number, if any, of the Note in respect of which such notice of
withdrawal is being submitted, or the appropriate Depositary information if the Note in
respect of which such notice of withdrawal is being submitted is represented by a Global
Note,




     (ii) the principal amount of the Note with respect to which such notice of withdrawal
is being submitted, and



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     (iii) the principal amount, if any, of such Note that remains subject to the original
Fundamental Change Repurchase Notice, which portion must be in principal amounts of $1,000
or an integral multiple of $1,000;


provided, however, that if the Notes are not in certificated form, the withdrawal notice must
comply with appropriate procedures of the Depositary.




          Section 16.04. Deposit of Fundamental Change Repurchase Price  The Company will deposit with the Trustee
(or other Paying Agent appointed by the Company, or if the Company is acting as its own Paying
Agent, set aside, segregate and hold in trust as provided in Section 5.04) on or prior to 11:00
a.m., New York City time, on the Fundamental Change Repurchase Date an amount of cash sufficient to
repurchase all of the Notes to be repurchased at the appropriate Fundamental Change Repurchase
Price. Subject to receipt of funds and/or Notes by the Trustee (or other Paying Agent appointed by
the Company), payment for Notes surrendered for repurchase (and not withdrawn prior to the
Fundamental Change Expiration Time) will be made on the later of (i) the Fundamental Change
Repurchase Date with respect to such Note (provided the holder has satisfied the conditions in
Section 16.02) and (ii) the time of book-entry transfer or the delivery of such Note to the Trustee
(or other Paying Agent appointed by the Company) by the holder thereof in the manner required by
Section 16.02 by mailing checks for the amount payable to the holders of such Notes entitled
thereto as they shall appear in the Note Register, provided, however, that payments to the
Depositary shall be made by wire transfer of immediately available funds to the account of the
Depositary or its nominee. The Trustee shall, promptly after such payment and upon written demand
by the Company, return to the Company any funds in excess of the Fundamental Change Repurchase
Price.




          (b) If by 11:00 a.m. New York City time, on the Fundamental Change Repurchase Date, the
Trustee (or other Paying Agent appointed by the Company) holds money sufficient to make payment on
all the Notes or portions thereof that are to be repurchased as a result of the corresponding
Fundamental Change, then (i) such Notes will cease to be outstanding, (ii) interest, including
Additional Interest, if any, will cease to accrue on such Notes, and (iii) all other rights of the
holders of such Notes will terminate (other than the right to receive the Fundamental Change
Repurchase Price, and previously accrued but unpaid interest, including Additional Interest, if
any, upon delivery of the Notes), whether or not book-entry transfer of the Notes has been made or
the Notes have been delivered to the Trustee or Paying Agent.




          (c) Upon surrender of a Note that is to be repurchased in part pursuant to Section 16.02, the
Company shall execute and the Trustee shall authenticate and deliver to the holder a new Note in an
authorized denomination equal in principal amount to the unrepurchased portion of the Note
surrendered.




ARTICLE 17

GUARANTEES




          Section 17.01. Guarantee.




          (a) In consideration of good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, each of the Subsidiary Guarantors, jointly and severally, hereby
unconditionally guarantees (each such guarantee, together with any future guarantees executed
pursuant to Section 5.09 hereof, being a “Guarantee”) to each Noteholder of any Note that is
authenticated and delivered by the Trustee and to the Trustee, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company under this Indenture
or the Notes, that: (i) the


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principal of and interest on the Notes will be paid in full when due,
whether at the Maturity Date or any Interest Payment Date, by acceleration, call for redemption,
upon a purchase offer or otherwise, and interest on the overdue principal and interest, if any, of
the Notes, if lawful, and all other obligations of
the Company to the Noteholders or the Trustee under this Indenture or the Notes will be
promptly paid in full or performed, all in accordance with the terms of this Indenture and the
Notes; and (ii) in case of any extension of time of payment or renewal of any securities or any of
such other obligations, they will be paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at maturity, by acceleration, call for redemption, upon
a purchase offer or otherwise (collectively, the “Guaranteed Obligations”). Each Guarantee is a
guarantee of payment and not of collection. Failing payment when due of any amount so guaranteed
for whatever reason, the Subsidiary Guarantors shall be jointly and severally obligated to pay the
same before failure to so pay becomes an Event of Default.




          (b) Each Subsidiary Guarantor agrees that (i) its obligations with regard to its Guarantee
shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or
this Indenture, any amendments to the Indenture or the Notes (other than this Article 17), the
absence of any action to enforce the same, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstances that might otherwise constitute a legal or
equitable discharge or defense of a Subsidiary Guarantor and (ii) its Guarantee will not be
discharged except by complete performance of the obligations contained in the Notes and this
Indenture. Each of the Subsidiary Guarantors hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company or right to require the prior disposition
of the assets of the Company to meet its obligations, protest, notice and all demands whatsoever.
Without limiting the generality of the foregoing, each of the Subsidiary Guarantors hereby waives,
to the extent permitted under Nev. Rev. Stat. 40.495, any rights arising out of Nev. Rev. Stat.
40.430.




          (c) If any Noteholder or the Trustee is required by any court or otherwise to return to either
the Company or any Subsidiary Guarantor, or any Custodian, Trustee, or similar official acting in
relation to either the Company or any Subsidiary Guarantor, any amount paid by either the Company
or any of the Subsidiary Guarantors to the Trustee or such Noteholder in respect of any Note, any
Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect with
respect to such Note. Each of the Subsidiary Guarantors agrees that it will not be entitled to any
right of subrogation in relation to the Noteholders in respect of any obligations guaranteed hereby
except as set forth in Section 17.05 hereof.




          (d) Each of the Subsidiary Guarantors agrees that (i) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Section 7.02 hereof for the purposes of its
Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration
as to the Company of the obligations guaranteed hereby, and (ii) in the event of any declaration of
acceleration of those obligations as provided in Section 7.02, those obligations (whether or not
due and payable) will forthwith become due and payable by each of the Subsidiary Guarantors for the
purpose of its Guarantee.




          Section 17.02. Execution and Delivery of Guarantee. To evidence its Guarantee set forth in
Section 17.01, each of the Subsidiary Guarantors shall, and the Company shall cause each of the
Subsidiary Guarantors to, execute this Indenture through a duly authorized officer.




          The delivery of any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of the Guarantees set forth in this Indenture on behalf of the Subsidiary
Guarantors.




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          Section 17.03. Limitation of Subsidiary Guarantor’s Liability. Each Subsidiary Guarantor and
by its acceptance hereof each Noteholder hereby confirms that it is the intention of all such
parties that the guarantee by such Subsidiary Guarantor pursuant to its Guarantee set forth in this
Indenture not constitute a fraudulent transfer or conveyance for purposes of any federal or
state law. To effectuate the foregoing intention, the Noteholders and each Subsidiary Guarantor
hereby irrevocably agree that the obligations of each such Subsidiary Guarantor under its Guarantee
shall be limited to the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Subsidiary Guarantor and after giving effect to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of the obligations of
such other Subsidiary Guarantor under its Guarantee set forth in this Indenture or pursuant to
Section 17.04, result in the obligations of such Subsidiary Guarantor under such Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or state law. This
Section 17.03 is for the benefit of the Noteholders.




          Section 17.04. Contribution. In order to provide for just and equitable contribution among
the Subsidiary Guarantors, the Subsidiary Guarantors agree, inter se, that in the
event any payment or distribution is made by any Subsidiary Guarantor in respect of any Note (a
“Funding Guarantor”) under its Guarantee, such Funding Guarantor shall be entitled to a
contribution from each other Subsidiary Guarantor in a pro rata amount based on the
net worth of each Subsidiary Guarantor (including the Funding Guarantor) for all payments, damages
and expenses incurred by that Funding Guarantor in discharging the Company’s obligations with
respect to the Notes or any other Subsidiary Guarantor’s obligations with respect to its Guarantee.




          Section 17.05. Rights Under the Guarantee.




          (a) Each of the Subsidiary Guarantors waives notice of the issuance, sale and purchase of any
Note and notice from the Trustee or the Noteholders from time to time of any Note of their
acceptance and reliance on the Guarantee of such Subsidiary Guarantor.




          (b) Notwithstanding any payment or payments made by the Subsidiary Guarantors by reason of the
Guarantees, the Subsidiary Guarantors shall not be subrogated to any rights of the Trustee or any
Noteholder against the Company until all the Notes shall have been paid or deemed to have been paid
within the meaning of this Indenture. Any payment made by the Subsidiary Guarantors by reason of
the Guarantees shall be in all respects subordinated to the full and complete payment or discharge
under this Indenture of all obligations guaranteed hereby, and no payment by the Subsidiary
Guarantors by reason of the Guarantees shall give rise to any claim of the Subsidiary Guarantors
against the Trustee or any Noteholder. Unless and until the Notes shall have been paid or deemed to
have been paid within the meaning of this Indenture, none of the Subsidiary Guarantors will assign
or otherwise transfer any such claim against the Company to any other Person.




          (c) No set-off, counterclaim, reduction or diminution of any obligation or any defense of any
kind or nature (other than performance by the Subsidiary Guarantors of their obligations hereunder)
which any Subsidiary Guarantor may have or assert against the Trustee or any Noteholder shall be
available hereunder to such Subsidiary Guarantor against the Trustee.




          (d) Each Subsidiary Guarantor agrees to pay all costs, expenses and fees, including all
reasonable attorneys’ fees and expenses, which may be incurred by the Trustee in enforcing or
attempting to enforce this Guarantee or protecting the rights of the Trustee or the Noteholders, if
any, in accordance with this Indenture.





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          Section 17.06. Primary Obligations. Each Subsidiary Guarantor agrees that it is directly
liable to each Noteholder hereunder, that the obligations of each Subsidiary Guarantor hereunder
are independent of the obligations of the Company or any other guarantor, and that a separate
action may be brought against each Subsidiary Guarantor, whether such action is brought against the
Company or any other Subsidiary Guarantor or whether the Company or any other guarantor is joined in such
action. Each Subsidiary Guarantor agrees that its liability hereunder shall be immediate and shall
not be contingent upon the exercise or enforcement by the Trustee or the Noteholders of whatever
remedies they may have against the Company or any other guarantor. Each Subsidiary Guarantor agrees
that any release which may be given by the Trustee or the Noteholders to the Company or any other
guarantor shall not release such Subsidiary Guarantor. Each Subsidiary Guarantor consents and
agrees that the Trustee shall be under no obligation to marshal any property or assets of the
Company or any other guarantor in favor of such Subsidiary Guarantor, or against or in payment of
any or all of the Guaranteed Obligations.




          Section 17.07. Waivers.




          (a) Each Subsidiary Guarantor hereby waives any right to receive, or any claim or defense
based on failure to receive: (i) notice of the amount of the Guaranteed Obligations; (ii) notice of
any adverse change in the financial condition of the Company or of any other fact that might
increase such Subsidiary Guarantor’s risk hereunder; (iii) notice of a Default or Event of Default;
and (iv) all other notices (except if such notice is specifically required to be given to such
Subsidiary Guarantor under this Indenture to which such Subsidiary Guarantor is a party) and
demands to which such Subsidiary Guarantor might otherwise be entitled.




          (b) Each Subsidiary Guarantor hereby waives the right by statute or otherwise to require the
Trustee or the Noteholders to institute suit against the Company (or against any other Person) or
to exhaust any rights and remedies which the Trustee or the Noteholders have or may have against
the Company (or against any other Person). In this regard, each Subsidiary Guarantor agrees that it
is bound to the payment of each and all of the Guaranteed Obligations, whether now existing or
hereafter arising, as fully as if such Guaranteed Obligations were directly owing to the guaranteed
party by such Subsidiary Guarantor. Each Subsidiary Guarantor further waives any defense arising by
reason of any disability or other defense (other than the defense that the Guaranteed Obligations
shall have been fully and finally performed and indefeasibly paid) of the Company or by reason of
the cessation from any cause whatsoever of the liability of the Company in respect thereof.




          (c) Each Subsidiary Guarantor hereby waives any claim or defense directly or indirectly
arising from or caused by any election of remedies by the Trustee or Noteholders, whether or not
such election of remedies directly or indirectly results in impairment or loss of rights or claims
of such Subsidiary Guarantor against the Company or other Persons.




          Section 17.08. Releases. Each Subsidiary Guarantor consents and agrees that, without notice
to or by such Subsidiary Guarantor and without affecting or impairing the obligations of such
Subsidiary Guarantor hereunder, the Trustee may, by action or inaction, compromise or settle,
extend the period of duration or the time for the payment, or discharge the performance of, or may
refuse to, or otherwise not enforce, or may, by action or inaction, release all or any one or more
parties to, any one or more of the terms and provisions of this Indenture or may grant other
indulgences to the Company in respect thereof, or may, by action or inaction, release or substitute
any other guarantor, if any, of the Guaranteed Obligations.




          Section 17.09. No Election. The Trustee shall have the right to seek recourse against each
Subsidiary Guarantor to the fullest extent provided for herein and no election by the Trustee to


75









 







proceed in one form of action or proceeding, or against any party, or on any obligation, shall
constitute a waiver of Trustee’s right to proceed in any other form of action or proceeding, or
against other parties unless the Trustee has expressly waived such right in writing.




          Section 17.10. Financial Condition of the Company. Each Subsidiary Guarantor represents and
warrants to the Trustee and Noteholders that it is currently informed of the financial condition of
the Company and, of all other circumstances which a diligent inquiry would reveal and which bear
upon the risk of nonpayment of the Guaranteed Obligations. Each Subsidiary Guarantor further
represents and warrants to the Trustee and Noteholders that it has read and understands the terms
and conditions of this Indenture and the Notes. Each Subsidiary Guarantor hereby covenants that it
will continue to keep itself informed of the Company’s financial condition, the financial condition
of other guarantors, if any, and of all other circumstances which bear upon the risk of nonpayment
or nonperformance of the Guaranteed Obligations.




          Section 17.11. Consolidation, Merger, Etc., Only on Certain Terms. No Subsidiary Guarantor
shall consolidate with, or merge with or into, or convey, transfer or lease its properties and
assets substantially in their entirety (computed on a consolidated basis) to any Person, unless:




          (a) the Person formed by or surviving any such consolidation or merger (if other than the
Subsidiary Guarantor, another Subsidiary Guarantor or the Company) assumes, by supplemental
indenture hereto, all of the obligations of such Subsidiary Guarantor under its Guarantee and this
Indenture;




          (b) immediately after giving effect to such transaction, no Event of Default or Default shall
exist; and




          (c) if such Person is required to execute a supplemental indenture pursuant to clause (a)
above, such Person has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that such consolidation, merger, conveyance, transfer or lease and such assumption of
such obligations by such supplemental indenture comply with this provision and that all conditions
precedent herein provided for relating to such transaction have been complied with.




          Notwithstanding the preceding paragraph, in the event of (a) a sale or other disposition of
all of the assets of any Subsidiary Guarantor, by way of merger, consolidation or otherwise or (b)
a sale or other disposition of all of the capital stock of any Subsidiary Guarantor, then the
Subsidiary Guarantor (in the event of a sale or other disposition of all of the capital stock of
such Subsidiary Guarantor) or the corporation acquiring the property (in the event of a sale or
other disposition of all of the assets of the Subsidiary Guarantor) will be released and relieved
of any obligations under its Guarantee set forth in this Indenture, except in the event of a sale
or other disposition to the Company or any other Subsidiary Guarantor. Upon delivery by the
Company to the Trustee of an Officers’ Certificate and Opinion of Counsel to the effect that such
sale or other disposition was made by such Subsidiary Guarantor in accordance with the provisions
of this Indenture, the Trustee shall execute any documents reasonably required in order to evidence
the release of any such Subsidiary Guarantor from its Guaranteed Obligations under its Guarantee
set forth in this Indenture.





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ARTICLE 18

MISCELLANEOUS PROVISIONS




          Section 18.01. Provisions Binding on Company’s Successors. All the covenants, stipulations,
promises and agreements of the Company contained in this Indenture shall bind its successors and
assigns whether so expressed or not.




          Section 18.02. Official Acts by Successor Corporation. Any act or proceeding by any provision
of this Indenture authorized or required to be done or performed by any board, committee or officer
of the Company shall and may be done and performed with like force and effect by the like board,
committee or officer of any corporation or other entity that shall at the time be the lawful
successor of the Company.




          Section 18.03. Addresses for Notices, Etc. Any notice or demand that by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by the Noteholders on
the Company shall be deemed to have been sufficiently given or made, for all purposes if given or
served by being deposited postage prepaid by registered or certified mail in a post office letter
box addressed (until another address is filed by the Company with the Trustee) to MGM MIRAGE at
3600 Las Vegas Boulevard South, Las Vegas, Nevada 89109, attention of John M. McManus, Senior Vice
President, Acting General Counsel and Secretary, with a copy to Weil, Gotshal & Manges LLP, 767
Fifth Avenue, New York, NY 10153, attention of Rod Miller. Any notice, direction, request or
demand hereunder to or upon the Trustee shall be deemed to have been sufficiently given or made,
for all purposes, if given or served by being deposited postage prepaid by registered or certified
mail in a post office letter box addressed to the Corporate Trust Office.




          The Trustee, by notice to the Company, may designate additional or different addresses for
subsequent notices or communications.




          Any notice or communication mailed to a Noteholder shall be mailed to it by first class mail,
postage prepaid, at its address as it appears on the Note Register and shall be sufficiently given
to it if so mailed within the time prescribed.




          Failure to mail a notice or communication to a Noteholder or any defect in it shall not affect
its sufficiency with respect to other Noteholders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives it.




          In case by reason of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice to holders by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.




          Notwithstanding any other provision of this Indenture or any Note, where this Indenture or any
Note provides for notice of any event to a holder of a Global Note (whether by mail or otherwise),
such notice shall be sufficiently given if given to the Depositary for such Note (or its designee),
pursuant to customary procedures of such Depositary.




          Section 18.04. Governing Law. THIS INDENTURE AND EACH NOTE SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER THE LAWS OF NEW YORK, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE
LAWS OF NEW YORK.




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          Section 18.05. Evidence of Compliance with Conditions Precedent; Certificates and Opinions of
Counsel to Trustee. (a) Upon any request or application by the Company to the Trustee to take any
action under this Indenture, the Company shall furnish to the Trustee:





     (i) an Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the proposed action
have been complied with; and




     (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with.




(b) Each certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:




     (i) a statement that each person signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;




     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in such certificate or opinion is based;




     (iii) a statement that, in the opinion of each such person, the person has made such
examination or investigation as is necessary to enable the person to express an informed
opinion as to whether or not such covenant or condition has been complied with; and




     (iv) a statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with; provided, however, that, with respect to
matters of fact, an Opinion of Counsel may rely on an Officers’ Certificate or certificates
of public officials.



          Section 18.06. Legal Holidays. In any case where any Interest Payment Date, Fundamental
Change Repurchase Date, Conversion Date or Maturity Date is not be a Business Day, then any action
to be taken on such date need not be taken on such date, but may be taken on the next succeeding
Business Day with the same force and effect as if taken on such date, and no interest shall accrue
for the period from and after such date.




          Section 18.07. No Security Interest Created. Nothing in this Indenture or in the Notes,
expressed or implied, shall be construed to constitute a security interest under the Uniform
Commercial Code or similar legislation, as now or hereafter enacted and in effect, in any
jurisdiction.




          Section 18.08. Benefits of Indenture. Nothing in this Indenture or in the Notes, expressed or
implied, shall give to any Person, other than the parties hereto, any Paying Agent, any Conversion
Agent, any authenticating agent, any Note Registrar and their successors hereunder or the
Noteholders, any benefit or any legal or equitable right, remedy or claim under this Indenture.




          Section 18.09. Table of Contents, Headings, Etc. The table of contents and the titles and
headings of the articles and sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way modify or restrict any
of the terms or provisions hereof.




          Section 18.10. Authenticating Agent. The Trustee may appoint an authenticating agent that
shall be authorized to act on its behalf and subject to its direction in the authentication and
delivery of Notes in connection with the original issuance thereof and transfers and exchanges of
Notes hereunder,


78









 







including under Section 2.05, Section 2.06, Section 2.07, Section 2.08, Section
11.04 and Section 16.04 as fully to all intents and purposes as though the authenticating agent had
been expressly authorized by this Indenture and those Sections to authenticate and deliver Notes.
For all purposes of this Indenture, the authentication and delivery of Notes by the authenticating
agent shall be deemed to be authentication and delivery of such Notes “by the Trustee” and a
certificate of authentication executed on behalf of the Trustee by an authenticating agent shall be
deemed to satisfy any requirement hereunder or in the Notes for the Trustee’s certificate of
authentication. Such authenticating agent shall at all times be a Person eligible to serve as
trustee hereunder pursuant to Section 8.09.




          Any corporation or other entity into which any authenticating agent may be merged or converted
or with which it may be consolidated, or any corporation or other entity resulting from any merger,
consolidation or conversion to which any authenticating agent shall be a party, or any corporation
or other entity succeeding to the corporate trust business of any authenticating agent, shall be
the successor of the authenticating agent hereunder, if such successor corporation or other entity
is otherwise eligible under this Section, without the execution or filing of any paper or any
further act on the part of the parties hereto or the authenticating agent or such successor
corporation or other entity.




          Any authenticating agent may at any time resign by giving written notice of resignation to the
Trustee and to the Company. The Trustee may at any time terminate the agency of any authenticating
agent by giving written notice of termination to such authenticating agent and to the Company.
Upon receiving such a notice of resignation or upon such a termination, or in case at any time any
authenticating agent shall cease to be eligible under this Section, the Trustee may appoint a
successor authenticating agent (which may be the Trustee), shall give written notice of such
appointment to the Company and shall mail notice of such appointment to all Noteholders as the
names and addresses of such holders appear on the Note Register.




          The Company agrees to pay to the authenticating agent from time to time reasonable
compensation for its services although the Company may terminate the authenticating agent, if it
determines such agent’s fees to be unreasonable.




          The provisions of Section 8.02, Section 8.03, Section 8.04, Section 9.03 and this Section
18.10 shall be applicable to any authenticating agent.




          If an authenticating agent is appointed pursuant to this Section, the Notes may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternative certificate of
authentication in the following form:




__________________,

as Authenticating Agent, certifies that this is one of the Notes described

in the within-named Indenture.




	 	 	 	 	 
	 	 	 
	By:  	
 	 	 
	 	Authorized Officer 	 	 
	 	 	 	 
	 



          Section 18.11. Execution in Counterparts. This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall together constitute
but one and the same instrument.





79









 








          Section 18.12. Severability. In the event any provision of this Indenture or in the Notes
shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity,
legality or enforceability of the remaining provisions shall not in any way be affected or
impaired.




          Section 18.13. Waiver of Jury Trial. EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION
CONTEMPLATED HEREBY.




          Section 18.14. Force Majeure. In no event shall the Trustee be responsible or liable for any
failure or delay in the performance of its obligations hereunder arising out of or caused by,
directly or indirectly, forces beyond its control, including, without limitation, strikes,
work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or
natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software and hardware) services; it being understood that the Trustee
shall use reasonable efforts that are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.




[The remainder of this page is intentionally left blank. Signature on the following
page.]







80









 








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




	 	 	 	 	 
	 	MGM MIRAGE

 	 
	 	By:  	/s/ John M. McManus
 	 
	 	 	Name:  	John M. McManus 	 
	 	 	Title:  	Senior Vice President, Acting General Counsel & Secretary 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Raymond S. Haverstock
 	 
	 	 	Name:  	Raymond S. Haverstock 	 
	 	 	Title:  	Vice President 	 
	 



[CONVERTIBLE NOTES INDENTURE]





81











 





SUBSIDIARY GUARANTORS




	 	 	 	 	 
	 	350 Leasing Company I, LLC, a Nevada limited liability company

350 Leasing Company II, LLC, a Nevada limited liability company

550 Leasing Company I, LLC, a Nevada limited liability company

AC Holding Corp., a Nevada corporation

AC Holding Corp. II, a Nevada corporation

Aria Resort & Casino, LLC, a Nevada limited liability company

Beau Rivage Distribution Corp., a Mississippi corporation

Beau Rivage Resorts, Inc., a Mississippi corporation

Bellagio, LLC, a Nevada limited liability company

Bungalow, Inc., a Mississippi corporation

Circus Circus Casinos, Inc., a Nevada corporation

Circus Circus Mississippi, Inc., a Mississippi corporation

CityCenter Realty Corporation, a Nevada corporation

Destron, Inc., a Nevada corporation

Diamond Gold, Inc., a Nevada corporation

Galleon, Inc., a Nevada corporation

Gold Strike Aviation, Incorporated, a Nevada corporation

Gold Strike Fuel Company, LLC, a Nevada limited liability company (successor in interest to Gold Strike Fuel Company, a Nevada Partnership)

Gold Strike L.V., a Nevada partnership

 	 
	 	By:  	Diamond Gold Inc., a Nevada corporation, Partner
 	 
	 	 	 
	 	By:  	                                               M.S.E. Investments, Incorporated, a Nevada corporation, Partner
 	 
	 
	 	Grand Laundry, Inc., a Nevada corporation

IKM MGM Management, LLC, a Nevada limited liability company

IKM MGM, LLC, a Nevada limited liability company

Jean Development Company, LLC, a Nevada limited liability company (successor in interest to Jean Development Company, a Nevada partnership)

Jean Development North, LLC, a Nevada limited liability company (successor in interest to Jean Development North, a Nevada partnership)

 	 



82









 






	 	 	 	 	 



	 	 	 	 	 
	 	Jean Development West, LLC, a Nevada limited liability company (successor in interest to Jean Development West, a Nevada partnership)

LV Concrete Corp., a Nevada corporation

MAC, Corp., a New Jersey corporation

Mandalay Corp., a Nevada corporation

Mandalay Employment, LLC, a Nevada limited liability company

Mandalay Marketing and Events, a Nevada corporation

Mandalay Place, a Nevada corporation

Mandalay Resort Group, a Nevada corporation

Metropolitan Marketing, LLC, a Nevada limited liability company

MGM Grand Atlantic City, Inc., a New Jersey corporation

MGM Grand Condominiums, LLC, a Nevada limited liability company

MGM Grand Condominiums II, LLC, a Nevada limited liability company

MGM Grand Condominiums III, LLC, a Nevada limited liability company

MGM Grand Condominiums East — Tower 1, LLC, a Nevada limited liability company

MGM Grand Detroit, Inc., a Delaware corporation

MGM Grand Hotel, LLC, a Nevada limited liability company

MGM Grand New York, LLC, a Nevada limited liability company

MGM Grand Resorts, LLC, a Nevada limited liability company

MGM Grand Resorts Development, a Nevada corporation

MGM MIRAGE Advertising, Inc., a Nevada corporation

MGM MIRAGE Aircraft Holdings, LLC, a Nevada limited liability company

MGM MIRAGE Aviation Corp., a Nevada corporation

MGM MIRAGE Corporate Services, a Nevada corporation

MGM MIRAGE Design Group, a Nevada corporation

MGM MIRAGE Development, LLC, a Nevada limited liability company

 	 



83









 






	 	 	 	 	 



	 	 	 	 	 
	 	MGM MIRAGE Entertainment and Sports, a Nevada corporation

MGM MIRAGE International Marketing, Inc., a Nevada corporation

MGM MIRAGE Land Holdings, LLC, a Nevada limited liability company

MGM MIRAGE Management and Technical Services, LLC, a Nevada limited liability company

MGM MIRAGE Manufacturing Corp., a Nevada corporation

MGM MIRAGE Operations, Inc., a Nevada corporation

MGM MIRAGE Retail, a Nevada corporation

MH, Inc., a Nevada corporation

M.I.R. Travel, a Nevada corporation

The Mirage Casino-Hotel, a Nevada corporation

Mirage Laundry Services Corp., a Nevada corporation

Mirage Leasing Corp., a Nevada corporation

Mirage Resorts, Incorporated, a Nevada corporation

MMNY Land Company, Inc., a New York corporation

MRGS, LLC, a Nevada limited liability company (successor in interest to MRGS Corp., a Nevada corporation)

M.S.E. Investments, Incorporated, a Nevada corporation

[Nevada Landing Partnership, an Illinois partnership

 	 
	 	By:  	Diamond Gold Inc., a Nevada corporation, Partner
 	 
	 	 	 
	 	By:  	                                               M.S.E. Investments, Incorporated, a Nevada corporation, Partner]1
 	 
	 
	 	New Castle Corp., a Nevada corporation

New PRMA Las Vegas, Inc., a Nevada corporation

New York-New York Hotel & Casino, LLC, a Nevada limited liability company

New York-New York Tower, LLC, a Nevada limited liability company

OE Pub, LLC, a Nevada limited liability company
 	 
	 





 




			
	1	 	[Subject to regulatory approval.]




84









 










	 	 	 	 	 
	 	PRMA Land Development Company, a Nevada corporation

PRMA, LLC, a Nevada limited liability company

Project CC, LLC, a Nevada limited liability company
Railroad Pass Investment Group, LLC, a Nevada limited liability company (successor in interest to Railroad Pass Investment Group, a Nevada partnership)

Ramparts, Inc., a Nevada corporation

The Signature Condominiums, LLC, a Nevada limited liability company

Signature Tower 2, LLC, a Nevada limited liability company

Signature Tower 3, LLC, a Nevada limited liability company

Signature Tower I, LLC, a Nevada limited liability company

The Crystals at CityCenter Management, LLC, a Nevada limited liability company

Tower B, LLC, a Nevada limited liability company

Tower C, LLC, a Nevada limited liability company

Vdara Condo Hotel, LLC, a Nevada limited liability company

Victoria Partners, a Nevada partnership

 	 
	 	By:  	MRGS LLC, a Nevada limited liability company, Partner
 	 
	 	 	 
	 	By:  	                                               Gold Strike L.V., a Nevada partnership, Partner
 	 
	 
	 	 VidiAd, a Nevada corporation

Vintage Land Holdings, LLC, a Nevada limited liability company

Vintage Land Holdings II, LLC, a Nevada limited liability company

 	 
	 



[The remainder of this page is intentionally left blank. Signature on the following page.]







85









 








	 	 	 	 	 
	 	 	 
	 	By:  	/s/ John M. McManus
 	 
	 	 	Name:  	John M. McManus 	 
	 	 	Title:  	Secretary or Attorney-in-Fact, as applicable, of each of the foregoing 	 



86









 






	 	 	 	 	 



EXHIBIT A




[FORM OF FACE OF NOTE]



[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]2



[THE SALE OF THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND ACCORDINGLY, THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, OR OF A
BENEFICIAL OWNERSHIP HEREIN, THE ACQUIRER: (I) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS
ACTING, IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES
ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION WITH RESPECT TO EACH SUCH ACCOUNT, AND (II)
AGREES (1) THAT IT WILL NOT WITHIN THE LATER OF (X) ONE YEAR AFTER THE LAST DATE OF ORIGINAL
ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY WORLD INVESTMENTS LLC’S EXERCISE OF ITS RIGHTS TO
PURCHASE NOTES UNDER THE COMPANY STOCK PURCHASE AND SUPPORT AGREEMENT, DATED AS OF AUGUST 21, 2007,
BY AND BETWEEN THE COMPANY AND INFINITY WORLD INVESTMENTS LLC) AND (Y) 90 DAYS AFTER IT CEASES TO
BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 UNDER THE SECURITIES ACT) OF MGM MIRAGE (THE
“COMPANY”), OFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THE NOTES EVIDENCED HEREBY, THE COMMON
STOCK ISSUABLE UPON CONVERSION OF SUCH NOTES OR ANY BENEFICIAL OWNERSHIP HEREIN, EXCEPT: (A) TO THE
COMPANY OR ANY SUBSIDIARY THEREOF; (B) UNDER A REGISTRATION STATEMENT THAT HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT; (C) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) THAT IS PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN
THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, ALL IN COMPLIANCE WITH RULE 144A (IF
AVAILABLE); OR (D) UNDER ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, INCLUDING RULE 144, IF AVAILABLE; AND (2) THAT IT WILL, PRIOR TO ANY TRANSFER OF
THIS NOTE WITHIN THE LATER OF (X) SIX MONTHS (OR, IF THE COMPANY HAS NOT SATISFIED THE CURRENT
PUBLIC INFORMATION REQUIREMENTS OF RULE 144, ONE YEAR) AFTER THE LAST DATE






 




			
	2	 	Use bracketed language for a Global Note.




A-F-1









 









OF ORIGINAL ISSUANCE OF NOTES (INCLUDING THROUGH INFINITY WORLD INVESTMENTS LLC’S EXERCISE OF ITS
RIGHTS TO PURCHASE NOTES UNDER THE COMPANY STOCK PURCHASE AND SUPPORT AGREEMENT, DATED AS OF AUGUST
21, 2007, BY AND BETWEEN THE COMPANY AND INFINITY WORLD INVESTMENTS LLC) AND (Y) 90 DAYS AFTER IT
CEASES TO BE AN AFFILIATE (WITHIN THE MEANING OF RULE 144 ADOPTED UNDER THE SECURITIES ACT) OF THE
COMPANY, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER
INFORMATION AS THEY MAY REQUIRE AND MAY RELY UPON TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. IN ANY EVENT, NO AFFILIATE OF THE COMPANY
MAY RESELL THIS NOTE OTHER THAN UNDER A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE
SECURITIES ACT OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
IN A TRANSACTION THAT RESULTS IN SUCH NOTE NO LONGER BEING “RESTRICTED SECURITIES” (AS DEFINED
UNDER RULE 144). NO REPRESENTATION IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. EACH PURCHASER AND TRANSFEREE OF A NOTE AND THE
COMMON STOCK ISSUABLE UPON CONVERSION OF A NOTE WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE
AND HOLDING OF THE NOTE AND THE COMMON STOCK ISSUABLE, UPON CONVERSION OF THE NOTE THAT (A) ITS
PURCHASE AND HOLDING OF THE NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THE NOTE IS NOT
MADE ON BEHALF OF OR WITH “PLAN ASSETS” OF ANY PLAN SUBJECT TO TITLE I OF ERISA, SECTION 4975 OF
THE CODE OR ANY SIMILAR LAW OR (B) ITS PURCHASE AND HOLDING OF THE NOTE AND THE COMMON STOCK
ISSUABLE UPON CONVERSION OF THE NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER
SECTION 406 OF ERISA, SECTION 4975 OF THE CODE OR ANY SIMILAR LAW.]3






 




			
	3	 	Use bracketed language for Restricted Securities.




A-F-2









 










MGM MIRAGE




4.25% Convertible Senior Note due 2015



			
	 	 	 
	No. [______]
	 	$[          ]





CUSIP No. [                   ]




          MGM MIRAGE, a corporation duly organized and validly existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor corporation or other
entity under the Indenture referred to on the reverse hereof), for value received hereby promises
to pay to [CEDE & CO., or its registered assigns,]4 the principal sum of [     ]
Dollars, [as revised by the Schedule of Increases and Decreases in Global Note attached
hereto,]5 on April 15, 2015, interest thereon as set forth below and Additional Interest
in the manner, at the rates and to the Persons set forth in Sections 5.06(d), 5.06(e) and 7.03, as
applicable, of the Indenture.




          The Company promises to pay interest on the principal amount of this Note at the rate of 4.25%
per annum (subject to increase pursuant to Sections 5.06(d), 5.06(e) and 7.03, as applicable, of
the Indenture) from [          ] until April 15, 2015. The Company will pay interest
semi-annually on April 15 and October 15 of each year, commencing on [          ], to
holders of record at the close of business on the preceding April 1 and October 1 (whether or not
such day is a Business Day), respectively. Interest on the Note will accrue from the most recent
date to which interest has been paid, or, if no interest has been paid on the Note, from [          ], 2010.




          Payment of the principal of and accrued and unpaid interest and Additional Interest, if any,
on this Note shall be made at the office or agency of the Company maintained for that purpose in
the Borough of Manhattan, New York City, in such lawful money of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts; provided,
however, that any payment to the Depositary or its nominee shall be paid by wire transfer in
immediately available funds in accordance with the wire transfer instruction supplied by the
Depositary or its nominee from time to time to the Trustee and Paying Agent (if different from
Trustee).




          Reference is made to the further provisions of this Note set forth on the reverse hereof,
including, without limitation, provisions giving the holder of this Note the right to convert this
Note into shares of Common Stock of the Company on the terms and subject to the limitations set
forth in the Indenture. Such further provisions shall for all purposes have the same effect as
though fully set forth at this place.




          This Note shall be deemed to be a contract made under the laws of the State of New York, and
for all purposes shall be construed in accordance with and governed by the laws of said State
(without regard to the conflicts of laws provisions thereof).






 




			
	4	 	Use bracketed language for a Global Note.
	 
	5	 	Use bracketed language for a Global Note.




A-F-3









 










          This Note shall not be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been manually signed by the Trustee or a duly authorized
authenticating agent under the Indenture.




[Remainder of page intentionally left blank]






A-F-4









 








          IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.




	 	 	 	 	 
	 	MGM MIRAGE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 



Dated:




TRUSTEE’S CERTIFICATE OF AUTHENTICATION

U.S. BANK NATIONAL ASSOCIATION

as Trustee, certifies that this is one of the Notes described

in the within-named Indenture.




	 	 	 	 	 
	 	 	 
	By:  	 	 	 
	 	Authorized Officer 	 	 



A-F-5









 






	 	 	 	 	 



[FORM OF REVERSE OF NOTE]




MGM MIRAGE

4.25% Convertible Senior Note due 2015



          This Note is one of a duly authorized issue of Notes of the Company, designated as its 4.25%
Convertible Senior Notes due 2015 (the “Notes”), initially limited to the aggregate principal
amount of $1,150,000,000 (subject to increase pursuant to Section 2.11 of the Indenture) all issued
or to be issued under and pursuant to an Indenture dated as of April 20, 2010 (as such may be
amended from time to time, the “Indenture”), among the Company, the Subsidiary Guarantors party
thereto (the “Subsidiary Guarantors”) and U.S. Bank National Association, as trustee (the
“Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for
a description of the rights, limitations of rights, obligations, duties and immunities thereunder
of the Trustee, the Company and the holders of the Notes. Additional Notes may be issued in an
unlimited aggregate principal amount, subject to certain conditions specified in the Indenture.




          The Subsidiary Guarantors have, jointly and severally, unconditionally guaranteed the
Guaranteed Obligations on a senior unsecured basis pursuant to the terms of the Indenture.




          In case an Event of Default, as defined in the Indenture, shall have occurred and be
continuing, the principal of and interest, including Additional Interest, if any, on all Notes may
be declared, by either the Trustee or the holders of not less than 25% in aggregate principal
amount of Notes then outstanding, and upon said declaration shall become, due and payable, in the
manner, with the effect and subject to the conditions and certain exceptions set forth in the
Indenture.




          Subject to the terms and conditions of the Indenture, the Company will make all payments and
deliveries in respect of the Fundamental Change Repurchase Price and the principal amount on the
Maturity Date, as the case may be, to the holder who surrenders a Note to a Paying Agent to collect
such payments in respect of the Note. The Company will pay cash amounts in money of the United
States that at the time of payment is legal tender for payment of public and private debts.




          The Indenture contains provisions permitting the Company and the Trustee in certain
circumstances, without the consent of the holders of the Notes, and in other circumstances, with
the consent of the holders of not less than a majority in aggregate principal amount of the Notes
at the time outstanding, evidenced as in the Indenture provided, to execute supplemental indentures
modifying the terms of the Indenture and the Notes as described therein. It is also provided in
the Indenture that, subject to certain exceptions, the holders of a majority in aggregate principal
amount of the Notes at the time outstanding may on behalf of the holders of all of the Notes waive
any past Default or Event of Default under the Indenture and its consequences.




          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and accrued and unpaid interest, and Additional Interest, if any, on this Note at the
place, at the respective times, at the rate and in the lawful money herein prescribed.




          The Notes are issuable in registered form without coupons in denominations of $1,000 principal
amount and integral multiples thereof. At the office or agency of the Company referred to on the
face hereof, and in the manner and subject to the limitations provided in the Indenture, Notes may
be




A-R-1









 







exchanged for a like aggregate principal amount of Notes of other authorized denominations,
without payment of any service charge but, if required by the Company or Trustee, with payment of a
sum sufficient to cover any tax, assessments or other governmental charges that may be imposed in
connection therewith as a result of the name of the holder of the new Notes issued upon such
exchange of Notes being different from the name of the holder of the old Notes surrendered for such
exchange.




          The Notes are not subject to redemption through the operation of any sinking fund or
otherwise.




          Upon the occurrence of a Fundamental Change, the holder has the right, at such holder’s
option, to require the Company to repurchase for cash all of such holder’s Notes or any portion
thereof (in principal amounts of $1,000 or integral multiples thereof) on the Fundamental Change
Repurchase Date at a price equal to the Fundamental Change Repurchase Price.




          The rights of each holder or beneficial owner of the Notes are subject to the Gaming Laws and
requirements of the Gaming Authorities. Notwithstanding any other provision of the Indenture, if
any Gaming Authority requires that a holder or beneficial owner of the Notes of a holder must be
licensed, qualified or found suitable under any Gaming Law, such holder or such beneficial owner
shall apply for a license, qualification or a finding of suitability, as the case may be, within
the required time period. If such person fails to apply or become licensed or qualified or is not
found suitable (in each case, a “failure of compliance”), the Company shall have the right, at its
option, (i) to require such holder or owner to dispose of such holder’s or beneficial owner’s Notes
within 30 days of receipt of notice of the Company’s election or such earlier date as may be
requested or prescribed by such Gaming Authority, or (ii) to redeem such Notes, which Gaming Law
Redemption Date may be less than 30 days following the notice of redemption if so requested or
prescribed by the Gaming Authority, at a redemption price equal to (a) the lesser of (1) the
holder’s cost, plus accrued and unpaid interest, if any, to the earlier of the Gaming Law
Redemption Date or the date of the finding of unsuitability or failure to comply and (2) 100% of
the principal amount thereof, plus accrued and unpaid interest, if any, to the earlier of the
Gaming Law Redemption Date and the date of the finding of unsuitability or failure to comply or (b)
such other amount as may be required by applicable Gaming Laws or by order of any Gaming Authority.
The Company shall notify the Trustee in writing of any such failure of compliance or redemption as
soon as practicable. The Company shall not be responsible for any costs or expenses any such holder
or beneficial owner may incur in connection with its application for a license, qualification or
finding of suitability. Immediately upon the imposition of a requirement to dispose of the Notes
by a Gaming Authority, such holder or beneficial owner shall, to the extent required by applicable
Gaming Laws, have no further right (i) to exercise, directly or indirectly, through any trustee,
nominee or any other person or entity, any right conferred by the Notes, or (ii) to receive any
remuneration in any form with respect to the Notes from the Company or the Trustee, except the
redemption price.




          Subject to the provisions of the Indenture, the holder hereof has the right, at its option,
prior to the close of business on the second Scheduled Trading Day immediately preceding the
Maturity Date, to convert any Notes or portion thereof that is $1,000 or an integral multiple
thereof, into shares of Common Stock at a Conversion Rate specified in the Indenture, as adjusted
from time to time as provided in the Indenture.




          Terms used in this Note and defined in the Indenture are used herein as therein defined.







A-R-2









 








ABBREVIATIONS



The following abbreviations, when used in the inscription of the face of this Note, shall be
construed as though they were written out in full according to applicable laws or regulations:




	 	 	 	 	 

	TEN COM -as tenants in common

	 	UNIF GIFT MIN ACT	 	 
	 
	 

	 	 	 	Custodian
	 

	 	 	 	 
	 

	 	(Cust)	 	 
	 
	TEN ENT -as tenants by the entireties
	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	(Minor)	 	 
	 
	JT TEN -as joint tenants with right of

	 	Uniform Gifts to Minors Act	 	 
	survivorship and not as tenants in common

	 	 	 	(State)
	 

	 	 	 	 





Additional abbreviations may also be used

though not in the above list.



A-R-3









 





SCHEDULE OF INCREASES AND DECREASES IN GLOBAL NOTE6




MGM MIRAGE

4.25% Convertible Senior Notes due 2015



     The initial principal amount of this Global Note is $[                ]. The following increases or
decreases in this Global Note have been made:



	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Signature of
	 	 	Amount of decrease in	 	Amount of increase in	 	Principal Amount of this	 	authorized signatory of
	 	 	Principal Amount of this	 	Principal Amount of this	 	Global Note following	 	Trustee or
	Date	 	Global Note	 	Global Note	 	such decrease or increase	 	Custodian
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 







 




			
	6	 	For Global Notes only.




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EXHIBIT B




[FORM OF NOTICE OF CONVERSION]




To: MGM MIRAGE




     The undersigned registered owner of this Note hereby exercises the option to convert this
Note, or the portion hereof (that is $1,000 principal amount or an integral multiple thereof) below
designated, into shares of Common Stock in accordance with the terms of the Indenture referred to
in this Note, and directs that any shares of Common Stock issuable and deliverable upon such
conversion, together with any cash in lieu of any fractional shares, and any Notes representing any
unconverted principal amount hereof, be issued and delivered to the registered holder hereof unless
a different name has been indicated below. If any shares of Common Stock or any portion of this
Note not converted are to be issued in the name of a Person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect thereto. Any amount required to be
paid by the undersigned on account of interest accompanies this Note.



	 	 	 	 	 	 	 

	Dated:

	 	 
	 	 
	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Signature(s)	 	 






	 	 	 	 	 
	 	 	 
	
 	 	 
	Signature
Guarantee 	 	 
	 



Signature(s) must be guaranteed

by an eligible Guarantor Institution

(banks, stock brokers, savings and

loan associations and credit unions)

with membership in an approved

signature guarantee medallion program

pursuant to Securities and Exchange

Commission Rule 17Ad-15 if shares

of Common Stock are to be issued, or

Notes to be delivered, other than

to and in the name of the registered holder.




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	Fill in for registration of shares if
	 	 
	to be issued, and Notes if to
	 	 
	be delivered, other than to and in the
	 	 
	name of the registered holder:
	 	 
	 
	 	 
	 
	 	 
	 
(Name)

	 	 
	 
	 	 
	 
	 	 
	 
(Street Address)

	 	 
	 
	 	 
	 
	 	 
	 
(City, State and Zip Code)

	 	 
	Please print name and address
	 	 






	 	 	 	 	 
	 	Principal amount to be converted (if less than all):

$___,000

 	 



	 	 	 	 	 
	 	NOTICE: The above signature(s) of the holder(s)
hereof must correspond with the name as written upon
the face of the Note in every particular without
alteration or enlargement or any change whatever.
 	 
	 



	 	 	 	 	 
	 	
 	 
	 	Social Security or Other Taxpayer Identification Number 	 
	 	 	 
	 




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EXHIBIT C




[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]



To: MGM MIRAGE



The undersigned registered owner of this Note hereby acknowledges receipt of a notice from MGM
MIRAGE (the “Company”) as to the occurrence of a Fundamental Change with respect to the Company and
specifying the Fundamental Change Repurchase Date and requests and instructs the Company to repay
to the registered holder hereof in accordance with the applicable provisions of the Indenture
referred to in this Note (1) the entire principal amount of this Note, or the portion thereof (that
is $1,000 principal amount or an integral multiple thereof) below designated, and (2) if such
Fundamental Change Repurchase Date does not fall during the period after an Interest Record Date
and on or prior to the corresponding Interest Payment Date, accrued and unpaid interest, including
Additional Interest, if any, thereon to, but excluding, such Fundamental Change Repurchase Date.



In the case of certificated Notes, the certificate numbers of the Notes to be repurchased are as
set forth below:



Dated:                                        




	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Signature(s) 	 
	 	 	 
	 	
 	 
	 	Social Security or Other Taxpayer Identification 	 
	 	Number
 	 
	 
	 	Principal amount to be repaid (if less than all):
$______,000	 
	 
	 	NOTICE:  The above signature(s) of the holder(s)
hereof must correspond with the name as written upon
the face of the Note in every particular without
alteration or enlargement or any change whatever. 	 
	 




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EXHIBIT D




[FORM OF ASSIGNMENT AND TRANSFER]



For value received                                                              hereby sell(s), assign(s) and transfer(s) unto
                                         (Please insert social security or Taxpayer Identification Number of assignee) the
within Note, and hereby irrevocably constitutes and appoints                                           attorney to
transfer the said Note on the books of the Company, with full power of substitution in the
premises.



In connection with any transfer of the within Note occurring prior to the Resale Restriction
Termination Date, as defined in the Indenture governing such Note, the undersigned confirms that
such Note is being transferred:





	o 	 	To MGM MIRAGE or a subsidiary thereof; or
	 
	o 	 	Pursuant to the registration statement that has become or been declared effective under the
Securities Act of 1933, as amended; or
	 
	o 	 	Pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended;
or
	 
	o 	 	Pursuant to and in compliance with Rule 144 under the Securities Act of 1933, as amended; or
	 
	o 	 	Pursuant to another available exemption from registration under the Securities Act of 1933,
as amended.










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Dated:                                                                                    




	 	 	 	 	 
	 	 	 
	
 	 	 
	 
	
 	 	 
	Signature(s) 	 	 
	 	 	 
	
 	 	 
	Signature Guarantee 	 	 
	 	 	 
	 


Signature(s) must be guaranteed by an
eligible Guarantor Institution (banks, stock
brokers, savings and loan associations and
credit unions) with membership in an approved
signature guarantee medallion program pursuant
to Securities and Exchange Commission
Rule 17Ad-15 Notes are to be delivered, other
than to and in the name of the registered holder.



NOTICE: The signature on the assignment must correspond with the name as written upon the face of
the Note in every particular without alteration or enlargement or any change whatever.





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EXHIBIT E




FORM OF INSTRUMENT OF JOINDER




(INDENTURES)


THIS INSTRUMENT OF JOINDER (“Joinder”) is executed as of                     , by the undersigned Subsidiaries
of MGM MIRAGE (“Joining Parties”), with reference to the following guaranties:



1. Guarantee of 8.375% Senior Subordinated Notes Due 2011. The Guarantee dated as of April 25,
2005, made by certain subsidiaries of MGM in favor of the Bank of New York, N.A., as successor to
U.S. Trust Company, National Association (the “8.375% Subordinated Guarantee”), for the Holders of
MGM’s 8.375% Senior Subordinated Notes due 2011 issued pursuant to the Indenture dated as of
January 23, 2001, between MGM and U.S. Trust Company of New York, National Association, as Trustee (the “8.375%
Indenture”).



2. Guarantee of 8.50% Notes Due 2010. The Guarantee dated as of September 17, 2003, made by certain
subsidiaries of MGM in favor of The Bank of New York, N.A., as successor to U.S. Trust Company,
National Association (the “8.50% Guarantee”), for the Holders of MGM’s 8.50% Senior Notes due 2010
issued pursuant to the Indenture dated as of September 15, 2000, between MGM and U.S. Trust
Company, National Association, as Trustee (the “8.50% Indenture”).



3. Guarantee of 5.875% Notes Due 2014. The Guarantee dated as of February 27, 2004, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “February 5.875% Guarantee”),
for the Holders of MGM’s 5.875% Senior Notes due 2014 (including such 5.875% Senior Notes issued in
the exchange offer for the 5.875% Senior Notes due 2014) issued pursuant to the Indenture dated as
of February 27, 2004, among MGM, the subsidiary guarantors party thereto and U.S. Bank National
Association, as Trustee (the “5.875% Indenture”).



4. Guarantee of 5.875% Notes Due 2014. The Guarantee dated as of March 23, 2004, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “March 5.875% Guarantee”), for
the Holders of MGM’s 5.875% Senior Notes due 2014 (including such 5.875% Senior Notes issued in the
exchange offer for the 5.875% Senior Notes due 2014) issued pursuant to the Indenture dated as of
March 23, 2004, among MGM, the subsidiary guarantors party thereto and U.S. Bank National
Association, as Trustee (the “March 5.875% Indenture”).



5. Guarantee of 6.75% Notes Due 2012. The Guarantee dated as of August 25, 2004, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “2004 6.75% Guarantee”), for
the Holders of MGM’s 6.75% Senior Notes due 2012 (including such 6.75% Senior Notes issued in any
exchange offer for the 6.75% Senior Notes due 2012) issued pursuant to the Indenture dated as of
August 25, 2004, among MGM, the subsidiary guarantors party thereto and U.S. Bank National
Association, as Trustee (the “2004 6.75% Indenture”).



6. Guarantee of 6.375% Notes Due 2011. The Guarantee dated as of April 25, 2005, made by MGM and
certain subsidiaries of MGM in favor of The Bank of New York, N.A. (the “6.375% Guarantee”), for
the Holders of Mandalay’s 6.375% Senior Notes due 2011 (including such 6.375% Senior Notes issued
in any exchange offer for the 6.375% Senior Notes due 2011) issued pursuant to the Indenture dated
as of
November 25, 2003, between Mandalay and The Bank of New York, N.A., as Trustee (the “6.375%
Indenture”).







E-1









 







7. Guarantee of 9.375% Senior Subordinated Notes Due 2010. The Guarantee dated as of April 25,
2005, made by MGM and certain subsidiaries of MGM in favor of The Bank of New York, N.A. (the
“9.375% Subordinated Guarantee”), for the Holders of Mandalay’s 9.375% Senior Subordinated Notes
due 2010 (including such 9.375% Senior Subordinated Notes due 2010 issued in any exchange offer for
the 9.375%



Senior Subordinated Notes due 2010) issued pursuant to the Indenture dated as of December 20, 2001,
between Mandalay and The Bank of New York, N.A., as Trustee (the “9.375% Indenture”).



8. Guarantee of Floating Rate Convertible Debentures Due 2033. The Guarantee dated as of April 25,
2005, made by MGM and certain subsidiaries of MGM in favor of The Bank of New York, N.A. (the
“Convertible Debentures Guarantee”), for the Holders of Mandalay’s Floating Rate Convertible
Debentures due 2033 issued pursuant to the First Supplemental Indenture dated as of July 26, 2004
to the Indenture dated as of March 21, 2003, between Mandalay, the subsidiary guarantors party
thereto and The Bank of New York, N.A., as Trustee (the “Floating Rate Convertible Debentures
Indenture”).



9. Guarantee of 7.00% Debentures Due 2036. The Guarantee dated as of April 25, 2005, made by MGM
and certain subsidiaries of MGM in favor of Wells Fargo Bank (Colorado), N.A. (the “7.00%
Debentures Guarantee”), for the Holders of Mandalay’s 7.00% Debentures due 2036 issued pursuant to
the Supplemental Indenture dated as of November 15, 1996 to the Indenture dated as of November 15,
1996, between Mandalay and Wells Fargo Bank (Colorado), N.A., as Trustee (the “7.00% Debentures
Indenture”).



10. Guarantee of 6.70% Debentures Due 2096. The Guarantee dated as of April 25, 2005, made by MGM
and certain subsidiaries of MGM in favor of Wells Fargo Bank (Colorado), N.A. (the “6.70%
Debentures Guarantee”), for the Holders of Mandalay’s 6.70% Debentures due 2096 issued pursuant to
the Supplemental Indenture dated as of November 15, 1996 to the Indenture dated as of February 1,
1996, between Mandalay and Wells Fargo Bank (Colorado), N.A., as Trustee (the “6.70% Debentures
Indenture”).



11. Guarantee of 6.625% Notes Due 2015. The Guarantee dated as of June 20, 2005, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “June 6.625% Guarantee”), for
the Holders of MGM’s 6.625% Senior Notes due 2015 (including such 6.625% Senior Notes issued in any
exchange offer for the 6.625% Senior Notes due 2015) issued pursuant to the Indenture dated as of
June 20, 2005, among MGM, the subsidiary guarantors party thereto and U.S. Bank National
Association, as Trustee (the “6.625% Indenture”).



12. Guarantee of 6.625% Notes Due 2015. The Guarantee dated as of September 9, 2005, made by
certain subsidiaries of MGM in favor of U.S. Bank National Association (the “September 6.625%
Guarantee”), for the Holders of MGM’s 6.625% Senior Notes due 2015 issued pursuant to the 6.625%
Indenture, as supplemented by the First Supplement Indenture dated as of September 9, 2005, among
MGM, the
subsidiary guarantors party thereto and U.S. Bank National Association, as Trustee.



13. Guarantee of 6.75% Notes Due 2013. The Guarantee dated as of April 5, 2006, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “2006 6.75% Guarantee”), for
the Holders of MGM’s 6.75% Senior Notes due 2013 (including such 6.75% Senior Notes due 2013 issued
in any exchange offer for the 6.75% Senior Notes due 2013) issued pursuant to the Indenture dated
as of April 5, 2006, among MGM, the subsidiary guarantors party thereto and U.S. Bank National
Association, as Trustee (the “2006 6.75% and 6.875% Indenture”).




E-2









 







14. Guarantee of 6.875% Notes Due 2016. The Guarantee dated as of April 5, 2006, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “6.875% Guarantee”), for the
Holders of MGM’s 6.875% Senior Notes due 2016 (including such 6.875% Senior Notes due 2016 issued
in any exchange offer for the 6.875% Senior Notes due 2016) issued pursuant to the 2006 6.75% and
6.875% Indenture.



15. Guarantee of 7.625% Notes Due 2017. The Guarantee dated as of December 21, 2006, made by
certain subsidiaries of MGM in favor of U.S. Bank National Association (the “7.625% Guarantee”),
for the Holders of MGM’s 7.625% Senior Notes due 2017 issued pursuant to the Indenture dated as of
December 21, 2006 (the “Base Indenture”), between MGM and U.S. Bank National Association, as
Trustee (the “7.625% Trustee”), as supplemented by the First Supplemental Indenture dated as of
December 21, 2006, among MGM, the subsidiary guarantors party thereto and the 7.625% Trustee.



16. Guarantee of 7.50% Notes Due 2016. The Guarantee dated as of May 17, 2007, made by certain
subsidiaries of MGM in favor of U.S. Bank National Association (the “7.50% Guarantee”), for the
Holders of MGM’s 7.50% Senior Notes due 2016 issued pursuant to the Base Indenture, as supplemented
by the Second Supplemental Indenture dated as of May 17, 2007, among MGM, the subsidiary guarantors
party thereto and the 7.625% Trustee.



17. Guarantee of 13.00% Senior Secured Notes Due 2013. The Subsidiary Guarantee dated as of
November 14, 2008 made by certain subsidiaries of MGM in favor of U.S. Bank National Association
(the “13.00% Guarantee”), for the Holders of MGM’s 13.00% Senior Secured Notes due 2013 issued
pursuant to the Indenture dated as of November 14, 2008 among MGM, the subsidiary guarantors party
thereto and U.S. Bank National Association, as Trustee (the “13.00% Senior Secured Indenture”).



18. Guarantee of 10.375% Senior Secured Notes Due 2014 and 11.125% Senior Secured Notes Due 2017.
The Subsidiary Guarantee dated as of May 19, 2009 made by certain subsidiaries of MGM in favor of
U.S. Bank National Association (the “2014 and 2017 Guarantee”), for the Holders of MGM’s 10.375%
Senior Secured Notes due 2014 and 11.125% Senior Secured Notes due 2017 issued pursuant to the
Indenture dated as of May 19, 2009, among MGM, the subsidiary guarantors party thereto and U.S.
Bank National Association, as Trustee (the “2014 and 2017 Indenture”).



19. Guarantee of 7.625% Senior Subordinated Debentures Due 2013. The Guarantee dated as of April
25, 2005, made by MGM and certain subsidiaries of MGM in favor of The Bank of New York Trust Co.,
as successor to First Interstate Bank of Nevada, N.A. (the “7.625% Subordinated Guarantee”), for
the Holders of Mandalay’s 7.625% Senior Subordinated Debentures due 2013 issued pursuant to the
Indenture dated as of July 21, 1993, between Circus Circus Enterprises, Inc. (the predecessor
entity to Mandalay) and First Interstate Bank of Nevada, N.A., as Trustee (the “7.625% Indenture”).



20. Guarantee of 11.375% Senior Notes Due 2018. The Subsidiary Guarantee dated as of September 22,
2009, made by certain subsidiaries of MGM in favor of U.S. Bank National Association (the “11.375%
Guarantee”), for the Holders of MGM’s 11.375% Senior Notes due 2018 issued pursuant to the
Indenture dated as of September 22, 2009, among MGM, the subsidiary guarantors party thereto and
U.S. Bank National Association, as Trustee (the “11.375% Indenture”).



21. Guarantee of 9% Senior Secured Notes Due 2020. The Subsidiary Guarantee dated as of March 16,
2010, made by certain subsidiaries of MGM in favor of U.S. Bank National Association (the “9.0%
Guarantee”), for the Holders of MGM’s 9% Senior Secured Notes due 2020 issued pursuant to the






E-3









 







Indenture dated as of March 16, 2010, among MGM, the subsidiary guarantors party thereto and U.S.
Bank National Association, as Trustee (the “9% Indenture”).







E-4









 








RECITALS




     Each Joining Party has guaranteed Reference Debt of MGM MIRAGE, and as such is required by the
terms of the Indenture, dated as of April 20, 2010, among MGM MIRAGE, the subsidiary guarantors
party thereto and U.S. Bank National Association, as trustee (the “Indenture”), to become a party
to a Guarantee for the Notes (capitalized terms used by not defined herein having the meaning
ascribed to such terms in the Indenture).



     NOW THEREFORE, each Joining Party jointly and severally agrees as follows:



AGREEMENT



1. By this Joinder, each Joining Party becomes a party to a Guarantee for the Notes as an
additional joint and several “Subsidiary Guarantor.” Each Joining Party agrees that, upon its
execution hereof, it will become a Subsidiary Guarantor under a Guarantee for the Notes and will be
bound by all terms, conditions, and duties applicable to a Subsidiary Guarantor under such
Guarantee.



2. The effective date of this Joinder is [                    ].



3. Notice of acceptance hereof is waived.



IN WITNESS WHEREOF, each of the undersigned has executed this Joinder by its duly authorized
officer as of the date first written above.




	 	 	 	 	 
	 	“Joining Parties”

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 
	 




E-5