Document:

Senior Unsecured Term Loan Agreement

 Exhibit 4.1 
 EXECUTION COPY 
 SEVENTH CONSENT AND WAIVER UNDER THE SENIOR UNSECURED 
 TERM LOAN AGREEMENT 
 Dated as of
August 22, 2006 
 SEVENTH CONSENT AND WAIVER UNDER THE SENIOR UNSECURED TERM LOAN AGREEMENT, dated as of August 22, 2006 (this
“Consent”), among DRESSER, INC., a Delaware corporation (the “Borrower”), the Guarantors (as defined below), the Lenders listed on the signature pages hereto and MORGAN STANLEY SENIOR FUNDING, INC.
(“MSSF”), as Administrative Agent. 
 W I T N E S S E T H: 
 WHEREAS, the Borrower, the Guarantors, the Lenders party thereto and the Agents have entered into a Senior Unsecured Term Loan Agreement dated as of
March 1, 2004, as modified by the Consent and Waiver dated as of March 18, 2005, the Second Consent and Waiver dated as of May 27, 2005, the Third Consent and Waiver dated as of July 14, 2005, the Fourth Consent and Waiver dated
as of September 29, 2005, the Fifth Consent and Waiver dated as of November 14, 2005 and the Sixth Consent and Waiver dated as of April 14, 2006 (the “Term Loan Agreement”; capitalized terms used herein but not
defined shall be used herein as defined in the Term Loan Agreement). 
 WHEREAS, the Borrower desires to modify the Term Loan Agreement in
certain respects and to waive certain Defaults and Events of Default under the Term Loan Agreement, in each case as provided herein; 
 WHEREAS, the Required Lenders have agreed, subject to the terms and conditions hereinafter set forth, to modify the Term Loan Agreement in response to the Borrower’s request as set forth below; 
 NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby
acknowledged), the parties hereto hereby agree as follows: 
 SECTION 1. Consent. Notwithstanding anything to the contrary set forth in
the Term Loan Agreement, the Required Lenders hereby consent to (a) the extension of the delivery date specified for the audited financial statements for the Fiscal Year ended December 31, 2005 and the other material with respect to such
Fiscal Year required by Section 5.01(b) of the Term Loan Agreement to no later than December 31, 2006 (the “10K Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver such
audited financial statements and other materials on or before the 10K Extended Delivery Date, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the
outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.01(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents and (b) the extension

 of the delivery date specified for the material required by Section 5.01(b) with respect to each of the fiscal
quarters ended March 31, 2006, June 30, 2006 and September 30, 2006 to no later than March 31, 2007 and any information required to be provided on a current report that is based on or derivative of such material, including
any report that requires pro forma financial statements (the “10Q and 8K Extended Delivery Date”), it being understood and agreed that if the Borrower fails to deliver the materials required by Section 5.01(b) with
respect to each of the fiscal quarters ended March 31, 2006, June 30, 2006 and September 30, 2006 by the 10Q and 8K Extended Delivery Date, and a notice of Default with respect to such failure is delivered to the Borrower by the
Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the Senior Unsecured Obligations pursuant to Section 6.0 l(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for
all purposes under the Loan Documents. Notwithstanding the foregoing, it is further understood and agreed that the Borrower shall deliver to the Lenders all financial statements for each of the fiscal quarters ended March 31,
2006, June 30, 2006 and September 30, 2006 required to be delivered pursuant to Section 5.01(b) of the Term Loan Agreement at the same time as such financial statements are delivered to the “Lenders” under the Existing
Credit Agreement, and if the Borrower fails to do so, and a notice of Default with respect to such failure is delivered to the Borrower by the Administrative Agent or the Lenders holding of at least 25% of the outstanding principal amount of the
Senior Unsecured Obligations pursuant to Section 6.0 l(c) of the Term Loan Agreement, such failure shall constitute an Event of Default for all purposes under the Loan Documents. 
 SECTION 2. Waiver. The Lenders holding not less than a majority in aggregate principal amount of the then outstanding Senior Unsecured Obligations
hereby waive any Default or Event of Default in respect of the provisions of Sections 3.01(a)(iv), 3.01(c), 4.0 l(f), 4.01(g), 4.01(h), 5.01(b) and 5.01(c) of the Term Loan Agreement and any related or substantially comparable provision of any Loan
Document, in each case consisting of, resulting from or relating in any respect to (i) the re-audit, revision or restatement of any financial statement delivered prior to the date of this Consent and Waiver by the Borrower or any of its
Subsidiaries (including, without limitation, any misstatement therein or in any certificate, representation or warranty relating thereto, or any error, defect or deficiency in accounting procedures or in the application of accounting principles
reflected thereby or relating thereto), (ii) any failure to deliver any financial statement specified in Section 1 above when or as required, except as required by Section 1 above, (iii) any failure to comply with any obligation
that became required to be performed or observed under any of such provisions by reason of the occurrence of any such Default or Event of Default or (iv) any misstatement as to the absence of any such Default or Event of Default. 
 SECTION 3. Conditions to Effectiveness. This Consent shall become effective as of the first date set forth above when each of the conditions set
forth in this Section 3 to this Consent shall have been fulfilled to the satisfaction of the Administrative Agent. 
 (i)
Execution of Counterparts. The Administrative Agent shall have received counterparts of this Consent, duly executed and delivered on behalf of each of (a) the Borrower and each Guarantor, (b) the Administrative Agent and
(c) the Required Lenders, or as to any of the foregoing parties, advice reasonably satisfactory to the Administrative Agent that each of the foregoing parties has executed a counterpart of this Consent. 
  

 2 

 (ii) Payment of Fees and Expenses. The Borrower shall have paid (a) to the
Administrative Agent, for the benefit of each Lender executing this Consent on or before August 22, 2006, a fee equal to 0.125% of the aggregate Commitments and Advances of each such Lender and (b) all expenses (including the fees and
expenses of Shearman & Sterling LLP) incurred in connection with the preparation, negotiation and execution of this Consent and other matters relating to the Term Loan Agreement from and after the last invoice to the extent invoiced.

 The Administrative Agent will notify the Borrower when this Consent has become effective as set forth above, and such notice shall be
conclusive and binding upon the Lenders. 
 SECTION 4. Representations and Warranties. Each Borrower hereby represents and warrants
that, as of the date hereof and after giving effect to this Consent, no Default has occurred and is continuing or would result from the effectiveness of this Consent. 
 SECTION 5. Reference to and Effect on the Transaction Documents. (a) On and after the effectiveness of this Consent, each reference in the Term Loan Agreement to “hereunder”, “hereof”
or words of like import referring to the Term Loan Agreement, and each reference in the other transaction documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Term Loan
Agreement, shall mean and be a reference to the Term Loan Agreement as modified by this Consent. 
 (b) The Term Loan
Agreement, the Notes and each of the other Loan Documents, as specifically amended by this Consent, are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. 
 (c) The execution, delivery and effectiveness of this Consent shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of any Lender or any Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. 
 SECTION 6. Execution in Counterparts. This Consent may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Consent by telecopier shall be effective as delivery of a manually executed counterpart of this
Consent. 
 SECTION 7. Governing Law. This Consent shall be governed by, and construed in accordance with, the laws of the State of
New York, and shall be subject to the jurisdictional and service provisions of the Term Loan Agreement, as if this were a part of the Term Loan Agreement. 
  

 3 

 SECTION 8. Entire Agreement; Modification. This Consent constitutes the entire agreement of the
parties hereto with respect to the subject matter hereof, there being no other agreements or understandings, oral, written or otherwise, respecting such subject matter, any such agreement or understanding being superseded hereby, shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns, and may not be amended, extended or otherwise modified, except in a writing executed in whole or in counterparts by each party hereto. 
 [Signatures follow.] 
  

 4 

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

					
	 DRESSER, INC., as Borrower

		
	 By:
	 	 /s/ Robert D. Woltil

		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Senior Vice President
 and Chief Financial Officer

 THE GUARANTORS 
  

					
	DRESSER INTERNATIONAL, INC.
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Senior Vice President

  

					
	DRESSER RE, INC.
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Vice President

  

					
	DRESSER RUSSIA, INC.
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Vice President

  

					
	LVF HOLDING CORPORATION
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Vice President

  

					
	DRESSER ENTECH, INC.
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Vice President

  

					
	RING-O VALVE, INCORPORATED
		
	 By:
	 	 /s/ Robert D. Woltil

		 	Name:	 	Robert D. Woltil
		 	Title:	 	Vice President

					
	 DRESSER CHINA, INC.

		
	 By:
	 	 /s/ Robert D. Woltil

		 	 Name:
	 	 Robert D. Woltil

		 	 Title:
	 	 Vice President

					
	 MORGAN STANLEY SENIOR FUNDING, INC.,
 as Administrative Agent

		
	 By:
	 	 /s/ Eugene F. Martin

		 	 Name:
	 	 Eugene F. Martin

		 	 Title:
	 	 Vice President

					
	 MORGAN STANLEY & CO. INCORPORATED,
 as Collateral Agent

		
	 By:
	 	 /s/ Eugene F. Martin

		 	 Name:
	 	 Eugene F. Martin

		 	 Title:
	 	 Managing Director

 LENDERS 
  

					
	 DEUTSCHE BANK AG NEW YORK BRANCH
 By: DB Services New Jersey, Inc.

		
	 By:
	 	 /s/ Edward Schaffer

		 	 Name:
	 	 Edward Schaffer

		 	 Title:
	 	 Vice President

		
	 By:
	 	 /s/ Deirdre Whorton

		 	 Name:
	 	 Deirdre Whorton

		 	 Title:
	 	 Assistant Vice President

 LENDERS 
  

					
	Floating Rate Income Strategies Fund, Inc.
		
	 By:
	 	 /s/ Jaimin Patel

		 	JAIMIN PATEL
		 	AUTHORIZED SIGNATORY
	
	 Merrill Lynch Global Investment Series:
 Income Strategies Portfolio

	By:	 	 Merrill Lynch Investment Managers, L.P.
 as Investment Advisor

		
	 By:
	 	 /s/ Jaimin Patel

		 	JAIMIN PATEL
		 	AUTHORIZED SIGNATORY
	
	DEBT STRATEGIES FUND, INC.
		
	 By:
	 	 /s/ Jaimin Patel

		 	JAIMIN PATEL
		 	AUTHORIZED SIGNATORY
	
	SENIOR HIGH INCOME PORTFOLIO, INC.
		
	 By:
	 	 /s/ Jaimin Patel

		 	JAIMIN PATEL
		 	AUTHORIZED SIGNATORY

 LENDERS 
  

					
	 LANDMARK CDO LTD
 By Aladdin Capital Management as Manager

		
	 By:
	 	 /s/ Stephen H. Hooker

		 	 Name:
	 	 Stephen H. Hooker, CFA

		 	 Title:
	 	
	
	 LANDMARK II CDO LTD
 By Aladdin Capital Management as Manager

		
	 By:
	 	 /s/ Stephen H. Hooker

		 	 Name:
	 	 Stephen H. Hooker, CFA

		 	 Title:
	 	
	
	 LANDMARK IV CDO LTD
 By Aladdin Capital Management as Manager

		
	 By:
	 	 /s/ Stephen H. Hooker

		 	 Name:
	 	 Stephen H. Hooker, CFA

		 	 Title:
	 	

 LENDERS 
  

					
	 Flagship CLO II

	 By: Deutsche Asset Management, Inc.,
 as Sub-Advisor

		
	 By:
	 	 /s/ Colleen Cunniffe

		 	 Name:
	 	 Colleen Cunniffe

		 	 Title:
	 	 Director

		
	 By:
	 	 /s/ Mark Rigazio

		 	 Name:
	 	 Mark Rigazio

		 	 Title:
	 	 Vice President

	
	 Flagship CLO IV

	 By: Deutsche Asset Management, Inc.,
 as Sub-Advisor

		
	 By:
	 	 /s/ Colleen Cunniffe

		 	 Name:
	 	 Colleen Cunniffe

		 	 Title:
	 	 Director

		
	 By:
	 	 /s/ Mark Rigazio

		 	 Name:
	 	 Mark Rigazio

		 	 Title:
	 	 Vice President

	
	 Flagship CLO V

	 By: Deutsche Asset Management, Inc.,
 as Attorney in Fact

		
	 By:
	 	 /s/ Colleen Cunniffe

		 	 Name:
	 	 Colleen Cunniffe

		 	 Title:
	 	 Director

		
	 By:
	 	 /s/ Mark Rigazio

		 	 Name:
	 	 Mark Rigazio

		 	 Title:
	 	 Vice President

	
	 Aurum CLO 2002-1, Ltd

	 By: Deutsche Asset Management, Inc.,
 as Sub-Advisor

		
	 By:
	 	 /s/ Colleen Cunniffe

		 	 Name:
	 	 Colleen Cunniffe

		 	 Title:
	 	 Director

		
	 By:
	 	 /s/ Mark Rigazio

		 	 Name:
	 	 Mark Rigazio

		 	 Title:
	 	 Vice President

 LENDERS 
  

					
	 Venture III CDO Limited
 By its investment advisor,
 MJX Asset Management LLC
  

	 [Print Name of Financial Institution]

		
	 By:
	 	 /s/ Kenneth Ostmann

		 	 Name:
	 	 Kenneth Ostmann

		 	 Title:
	 	 Director

 LENDERS 
  

					
	 Venture V CDO Limited
 By its investment advisor,
 MJX Asset Management LLC
  

	 [Print Name of Financial Institution]

		
	 By:
	 	 /s/ Kenneth Ostmann

		 	 Name:
	 	 Kenneth Ostmann

		 	 Title:
	 	 Director

 LENDERS 
  

			
	 Ares VIII CLO Ltd.

		
	By:	 	 Ares CLO Management VIII, L.P.,
 Investment Manager

		
	By:	 	 Ares CLO GP VIII, LLC,
 Its General Partner

		
	By:	 	 /s/ David A. Sachs

	 Name:
	 	David A. Sachs
	 Title:
	 	Vice President

 LENDERS 
  

			
	 Ares VIR CLO Ltd.

		
	By:	 	 Ares CLO Management VIR, L.P.,
 Investment Manager

		
	By:	 	 Ares CLO GP VIR, LLC,
 Its General Partner

		
	By:	 	 /s/ David A. Sachs

	 Name:
	 	David A. Sachs
	 Title:
	 	Vice President

 LENDERS 
  

			
	 Ares IV CLO Ltd.

		
	By:	 	 Ares CLO Management IV, L.P.,
 Investment Manager

		
	By:	 	 Ares CLO GP IV, LLC,
 Its Managing Member

		
	By:	 	 /s/ David A. Sachs

	 Name:
	 	David A. Sachs
	 Title:
	 	Vice President

 LENDERS 
  

			
	 ARES III CLO Ltd.

		
	By:	 	ARES CLO Management LLC,
		 	Investment Manager
		
	By:	 	 /s/ David A. Sachs

	 Name:
	 	David A. Sachs
	 Title:
	 	Vice President

 LENDERS 
  

					
	Trimaran CLO IV Ltd
	 By Trimaran Advisors, L.L.C.

		
	 By:
	 	 /s/ David M. Millison

		 	Name:	 	David M. Millison
		 	Title:	 	Managing Director

 LENDERS 
  

					
	Galaxy VII CLO, LTD
	 By:
	 	 AIG Global Investment Corp.
 its
Collateral Manager

		
	 By:
	 	 /s/ W. Jeffrey Baxter

		 	Name:	 	W. Jeffrey Baxter
		 	Title:	 	Managing Director

 LENDERS 
  

					
	 EAGLE CREEK CLO, LTD.

		
	 By:
	 	 /s/ Thomas N. Davis

		 	Name:	 	Thomas N. Davis
		 	Title:	 	Authorized Signature

 LENDERS 
  

					
	 FALL CREEK CLO, LTD.

		
	 By:
	 	 /s/ Thomas N. Davis

		 	Name:	 	Thomas N. Davis
		 	Title:	 	Authorized Signature

 LENDERS 
  

							
	 Bedford CDO, Limited

	 By:
	 	 Pacific Investment Management Company LLC,
 as its Investment Advisor

				
		 	By:	 	 /s/ Arthur Y. D. Ong
	 	
		 		 	Arthur Y. D. Ong	 	
		 		 	Senior Vice President	 	

 LENDERS 
  

					
	 Fairway Loan Funding Company

	 By:
	 	Pacific Investment Management Company LLC,
		 	as its Investment Advisor
			
		 	By:	 	 /s/ Arthur Y. D. Ong

		 		 	Arthur Y. D. Ong
		 		 	Senior Vice President

 LENDERS 
  

					
	 Fairway Loan Funding Company

	 By:
	 	Pacific Investment Management Company LLC,
		 	as its Investment Advisor
			
		 	By:	 	 /s/ Arthur Y. D. Ong

		 		 	Arthur Y. D. Ong
		 		 	Senior Vice President

 LENDERS 
  

					
	 Loan Funding III LLC

	 By:
	 	Pacific Investment Management Company LLC,
		 	as its Investment Advisor
			
		 	By:	 	 /s/ Arthur Y. D. Ong

		 		 	Arthur Y. D. Ong
		 		 	Senior Vice President

 LENDERS 
  

					
	 PIMCO Floating Rate Income Fund

	 By:
	 	Pacific Investment Management Company LLC,
		 	as its Investment Advisor, acting through Investors Fiduciary Trust Company in the Nominee Name of IFTCO
			
		 	By:	 	 /s/ Arthur Y.D. Ong

		 		 	Arthur Y.D. Ong
		 		 	Senior Vice President

 LENDERS 
  

					
	 Southport CLO, Limited

	 By:
	 	Pacific Investment Management Company LLC,
		 	as its Investment Advisor
			
		 	By:	 	 /s/ Arthur Y.D. Ong

		 		 	Arthur Y.D. Ong
		 		 	Senior Vice President

 LENDERS 
  

					
	 JUPITER LOAN FUNDING LLC

		
	 By:
	 	 /s/ M. Cristina Higgins

		 	Name:	 	M. Cristina Higgins
		 	Title:	 	Assistant Vice President

 LENDERS 
  

					
	Centurion CDO II, Ltd.
	
	 By: RiverSource Investments,
 LLC as
Collateral Manager

	  
 [Print Name of Financial Institution]

		
	By:	 	 /s/ Robin C. Stancil

		 	Name:	 	Robin C. Stancil
		 	Title:	 	Director of Operations

 LENDERS 
  

					
	Centurion CDO VI, Ltd.
	
	 By: RiverSource Investments,
 LLC as
Collateral Manager

	  
 [Print Name of Financial Institution]

		
	By:	 	 /s/ Robin C. Stancil

		 	Name:	 	Robin C. Stancil
		 	Title:	 	Director of Operations

 LENDERS 
  

					
	Sequils-Centurion V, Ltd.
	
	 By: RiverSource Investments, LLC
 as
Collateral Manager

	  
 [Print Name of Financial Institution]

		
	By:	 	 /s/ Robin C. Stancil

		 	Name:	 	Robin C. Stancil
		 	Title:	 	Director of Operations

 LENDERS 
  

			
	 ARCHIMEDES FUNDING III, LTD.

	
	 BY: West Gate Horizons Advisors LLC,
         as Collateral Manager

		
	 BY:
	 	 /s/ Gordon R. Cook

	 Name:
	 	GORDON R. COOK
	 Title:
	 	SENIOR CREDIT ANALYST

 LENDERS 
  

					
	Stanfield Quattr CLO, Ltd.
	 By: Stanfield Capital Partners LLC
         As its Collateral Manager

		
	 By:
	 	 /s/ Christopher E. Jansen

		 	 Name:
	 	Christopher E. Jansen
		 	 Title:
	 	Managing Partner

 LENDERS 
  

					
	Stanfield ArbitrageCLO, Ltd.
	 By: Stanfield Capital Partners LLC
         as its Collateral Manager

		
	 By:
	 	 /s/ Christopher E. Jansen

		 	Name:	 	Christopher E. Jansen
		 	Title:	 	Managing Partner

 LENDERS 
  

					
	 Stanfield Carrera CLO, Ltd.
 By:
Stanfield Capital Partners LLC
         as its Asset Manager

		
	 By:
	 	 /s/ Christopher E. Jansen

		 	 Name:
	 	 Christopher E. Jansen

		 	 Title:
	 	 Managing Partner

	
	PUTNAM FLOATING RATE INCOME FUND
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	BOSTON HARBOR CLO 2004-1, Ltd.
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	 PUTNAM VARIABLE TRUST – PVT
 HIGH YIELD
FUND

	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	PUTNAM HIGH YIELD ADVANTAGE FUND
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	PUTNAM HIGH YIELD TRUST
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	 PUTNAM DIVERSIFIED INCOME TRUST

	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	PUTNAM MASTER INTERMEDIATE INCOME TRUST
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	PUTNAM PREMIER INCOME TRUST
	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

	
	 PUTNAM VARIABLE TRUST – PVT
 DIVERSIFIED INCOME
FUND

	
	 /s/ Beth Mazor

	 By: Beth Mazor
 Title: V.P.

 LENDERS 
  

					
	Franklin Floating Rate Master Series
		
	 By:
	 	 /s/ Richard Hsu

		 	Name:	 	Richard Hsu
		 	Title:	 	Vice President

 LENDERS 
  

					
	 FRANKLIN FLOATING RATE
 DAILY
ACCESS FUND

		
	 By:
	 	 /s/ Richard Hsu

		 	Name:	 	Richard Hsu
		 	Title:	 	Vice President

 LENDERS 
  

					
	Franklin CLO I, Limited
		
	 By:
	 	 /s/ David Ardini

		 	Name:	 	David Ardini
		 	Title:	 	Vice President

 LENDERS 
  

					
	Franklin CLO II, Limited
		
	 By:
	 	 /s/ David Ardini

		 	Name:	 	David Ardini
		 	Title:	 	Vice President

 LENDERS 
  

					
	FRANKLIN CLO IV, LIMITED
		
	 By:
	 	 /s/ David Ardini

		 	Name:	 	David Ardini
		 	Title:	 	Vice President

 LENDERS 
  

					
	FRANKLIN CLO V, LTD
		
	 By:
	 	 /s/ David Ardini

		 	Name:	 	David Ardini
		 	Title:	 	Vice President

 LENDERS 
  

											
	NYLIM Flatiron CLO 2003-1 Ltd.	 	  
 [Print Name of Financial
Institution]

				
	By:	 	 New York Life Investment Management LLC,
 as Collateral Manager and Attorney-in-Fact
	 	 By:
	 	  
  

		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
	By:	 	 /s/ Mark A. Campelione
	 		 		 	
		 	Name:	 	Mark A. Campelione	 		 		 	
		 	Title:	 	Director	 		 		 	
		
	NYLIM Flatiron CLO 2004-1 Ltd.	 	NYLIM High Yield CDO 2001 Ltd.
				
	By:	 	 New York Life Investment Management LLC,
 as
Collateral Manager and Attorney-in-Fact
	 	By:	 	 New York Life Investment Management LLC,
 as
Investment Manager and Attorney-in-Fact

				
	By:	 	 /s/ Mark A. Campelione
	 	By:	 	 /s/ Mark A. Campelione

		 	Name:	 	Mark A. Campelione	 		 	Name:	 	Mark A. Campelione
		 	Title:	 		 		 	Title:	 	
		
	NYLIM Flatiron CLO 2005-1 Ltd.	 	
			
	By:	 	 New York Life Investment Management LLC,
 as
Collateral Manager and Attorney-in-Fact
	 	New York Life Insurance Company
				
	By:	 	 /s/ Mark A. Campelione
	 	By:	 	 /s/ Mark A. Campelione

		 	Name:	 	Mark A. Campelione	 		 	Name:	 	Mark A. Campelione
		 	Title:	 		 		 	Title:	 	
		
	NYLIM Flatiron CLO 2006-1 Ltd.	 	New York Life Insurance and Annuity Corporation
				
	By:	 	 New York Life Investment Management LLC,
 as
Collateral Manager and Attorney-in-Fact
	 	By:	 	 New York Life Investment Management LLC,
 its
Investment Manager

				
	By:	 	 /s/ Mark A. Campelione
	 	By:	 	 /s/ Mark A. Campelione

		 	Name:	 	Mark A. Campelione	 		 	Name:	 	Mark A. Campelione
		 	Title:	 		 		 	Title:	 	

 LENDERS 
  

					
	Columbus Loan Funding Ltd.
		
	 By:
	 	Citigroup Alternative Investments LLC
		
	 By:
	 	 /s/ John O’ Connell

		 	Name:	 	John O’ Connell
		 	Title:	 	Vice President

 LENDERS 
  

					
	Citigroup Investments Corporate Loan Fund, Inc.
		
	 By:
	 	Citigroup Alternative Investments LLC
		
	 By:
	 	 /s/ John O’ Connell

		 	Name:	 	John O’ Connell
		 	Title:	 	Vice President

 LENDERS 
  

			
	 J.P. Morgan Trust Company (Cayman) Limited, as Trustee for
 TORAJI TRUST, as [Assignee/Participant] By: Its Investment
 Manager, Citigroup Alternative Investments
LLC

		
	By:	 	 /s/ John O’ Connell

	Name:	 	John O’ Connell
	Title:	 	Vice President

 LENDERS 
  

			
	OAK HILL SECURITIES FUND, L.P.
	
	 By: Oak Hill Securities GenPar, L.P.
 its
General Partner

	
	 By: Oak Hill Securities MGP, Inc.,
 its
General Partner

		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Vice President
	
	OAK HILL SECURITIES FUND II, L.P.
	
	 By: Oak Hill Securities GenPar II, L.P.
 its
General Partner

	
	 By: Oak Hill Securities MGP II, Inc.,
 its
General Partner

		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Vice President
	
	OAK HILL CREDIT PARTNERS I, LIMITED
	
	 By: Oak Hill CLO Management I, LLC
 As
Investment Manager

		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Person
	
	OAK HILL CREDIT PARTNERS III, LIMITED
	
	 By: Oak Hill CLO Management III, LLC
 As
Investment Manager

		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Person
	
	OAK HILL CREDIT OPPORTUNITIES FINANCING,
LTD.
		
	By:	 	 /s/ Scott D. Krase

	Name:	 	Scott D. Krase
	Title:	 	Authorized Person

 LENDERS 
  

					
	 HARBOUR TOWN FUNDING LLC

		
	 By:
	 	 /s/ M. Cristina Higgins

		 	 Name:
	 	 M. Cristina Higgins

		 	 Title:
	 	 Assistant Vice President

 LENDERS 
  

					
	 COMSTOCK FUNDING LTD. By
 Silvermine Capital Management LLC as
 Investment Manager

		
	 By:
	 	 /s/ Jonathan J. Marks

		 	 Name:
	 	 Jonathan J. Marks

		 	 Title:
	 	 Principal
 Silvermine Capital Management, LLC
 263 Tresser Blvd.
 10th Floor
 Stamford, CT 06901
 (T) 203 399-3030
 (F) 203 399-3002

	
	 Approval for Term Loan

	
	 Declining on R/C

 LENDERS 
  

					
	 CANNINGTON FUNDING LTD. By
 Silvermine Capital Management LLC as
 Investment Manager

		
	 By:
	 	 /s/ Jonathan J. Marks

		 	 Name:
	 	 Jonathan J. Marks

		 	 Title:
	 	 Principal
 Silvermine Capital Management, LLC
 263 Tresser Blvd.
 10th Floor
 Stamford, CT 06901
 (T) 203 399-3030
 (F) 203 399-3002

	
	 Approval for Term Loan

	
	 Declining on R/C

 LENDERS 
  

					
	 Sankaty Advisors, LLC as Collateral
 Manager for AVERY POINT CLO,
 LTD., as Term Lender

	  
 [Print Name of Financial
Institution]

		
	 By:
	 	 /s/ Susan D. Lynch

		 	 Name:
 Title:
	 	 Susan D. Lynch
 Executive Vice President

 LENDERS 
  

					
	 Sankaty Advisors, LLC as Collateral
 Manager for Prospect Funding I,
 LLC as Term Lender

	  
 [Print Name of Financial
Institution]

		
	 By:
	 	 /s/ Susan D. Lynch

		 	 Name:
 Title:
	 	 Susan D. Lynch
 Executive Vice President

 LENDERS 
  

					
	 Sankaty Advisors, LLC as Collateral
 Manager for Castle Hill II –
 INGOTS, Ltd., as Term Lender

	  
 [Print Name of Financial
Institution]

		
	 By:
	 	 /s/ Susan D. Lynch

		 	 Name:
 Title:
	 	 Susan D. Lynch
 Executive Vice President

			
	 LENDERS:

	
	 BABSON CLO LTD. 2003-I
 BABSON CLO LTD. 2004-I
 ELC (CAYMAN) LTD. 1999-II

	 By: Babson Capital Management LLC as Collateral
 Manager

		
	 By:
	 	 /s/ Kenneth M. Gacevich

	 Name:
	 	 Kenneth M. Gacevich

	 Title:
	 	 Managing DirectorThird Amendment to the Redevelopment Agreement

 Exhibit 10.1 
 THIRD AMENDMENT TO REDEVELOPMENT AGREEMENT 
 THIS THIRD AMENDMENT TO THE REDEVELOPMENT AGREEMENT
(“Agreement”) is made and entered into effective this 21 day of August, 2006, by and between LAND CLEARANCE FOR REDEVELOPMENT AUTHORITY OF THE CITY OF ST. LOUIS (hereinafter sometimes the “LCRA” or “Owner”) and PINNACLE
ENTERTAINMENT, INC. (hereinafter sometimes the “Redeveloper” or “Optionee”). 
 RECITALS 
 A. The LCRA and Redeveloper entered into that certain Redevelopment Agreement dated April 22, 2004, as amended (the “Redevelopment
Agreement”) which governs among other things the development of certain real property described in the Redevelopment Agreement in the City of St. Louis, Missouri. 
 B. The LCRA and Redeveloper desire to amend the Redevelopment Agreement as hereinafter set forth; 
 NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties hereto, the LCRA and Redeveloper agree to amend the Redevelopment Agreement as follows:

 1. Section 1 of the Redevelopment Agreement is amended by adding the following new definition in the appropriate place
alphabetically: 
 “Expanded Redevelopment Area” means the real property bounded by 2nd Street, Carr Street, Leonor K. Sullivan
Drive, and Martin Luther King Drive. 
 2. The definition of “Redevelopment Project” or “Project” in Section 1 of
the Redevelopment Agreement is amended as follows: 
 (i) to insert the words “and Expanded Redevelopment Area”
after the words “Redevelopment Area”‘ in the second line; and 
 (ii) to substitute a new Exhibit B entitled
Project Proposal Essential Elements to the Agreement, which is attached hereto as Exhibit 1. 
 (iii) to substitute a
new Exhibit C entitled Improvements, which is attached hereto as Exhibit 2. 
 3. The second sentence of Section 3.8 of the
Redevelopment Agreement is amended to read as follows: 
 “Total project costs by the Redeveloper for this part of the
Project shall be at least $325 million (the Required Expenditure).” 
  

 1 

 4. Section 3.10.3 of the Redevelopment Agreement is amended to provide that within 90 days of the
date of this Amendment, the LCRA shall designate the Redeveloper as the exclusive redeveloper in the Expanded Redevelopment Area; provided, however, that such exclusive designation shall not interfere with LCRA’s right to confer redevelopment
rights to others in the event that this Agreement is no longer in effect or Redeveloper has been found to be in material breach by a court of competent jurisdiction, 
 5. The references in the Redevelopment Agreement in Section 3.13 and 3.16.1 to the commencement of construction, or the date on which construction was initiated, shall mean September 15, 2005. Attached as
Exhibit 3 hereto is the Certificate of Commencement of Construction executed on behalf of Redeveloper, and accepted by the LCRA. Further attached as Exhibit 4 hereto is the MBE/WBE Plan accepted by both Developer and LCRA. 

6. The schedule in Section 3.13 of the Redevelopment Agreement is modified to state that the casino and hotel will be completed, licensed and
opened by December 31, 2007; provided, however, that Redeveloper may extend such date for two (2) additional six (6) month periods—the first period being until June 30, 2008 and a second period being until December 31,
2008. The method of extension shall be: for the first period until June 30, 2008, by providing the LCRA written notice prior to December 31, 2007 of its intent to extend together with payment in the amount of Five Hundred Thousand Dollars
($500,000); and, for the second period until December 31, 2008, by providing the LCRA written notice prior to June 30, 2008 of its intent to extend together with payment in the amount of Five Hundred Thousand Dollars ($500,000).

 7. Section 3.11.1 of the Redevelopment Agreement is amended and restated as follows: 
 In addition to maintaining and operating the Improvements, commencing on the earlier of June 30, 2008 or on the date of Licensure by
MGC of Redeveloper for the Project, the Redeveloper and City shall cooperate to design and form a CID which shall, at a minimum, include an area bounded by Carr Street, Dr. Martin Luther King Drive, Fourth Street and the center of the
Mississippi River (the “Project CID”) and that is presently projected to generate Three Hundred Sixty Five Thousand and No/100 Dollars ($365,000.00) per year for the purpose of funding security, public improvements (including the
Improvements), maintenance and improving and enhancing the environs in the immediate vicinity of the Redevelopment Area and the Expanded Redevelopment Area (“Supplemental Services”). To the extent the Project CID generates sufficient
revenues per year, the Project CID shall make, by January 31st of each year commencing on the January 31st immediately following the earlier of June 30, 2008 or Licensure, an annual payment to the CID Board in the amount of Three
Hundred Sixty Five Thousand and No/100 Dollars ($365,000.00) (subject to a CPI increase commencing on the third anniversary date of the initial payment) for Supplemental Services. To the extent the Project CID fails to generate sufficient revenues
for the year before the earlier of June 30, 2008 or the date of Licensure, the Project CID shall make, by January 31st immediately following the earlier of June 30, 2008 or Licensure, a pro rata payment to the CID Board in the 

  

 2 

 
amount of $1,000 per day for each day between the date of earlier of June 30, 2008 or Licensure and January 31st of that year, for Supplemental
Services. The Redeveloper shall participate in the Project CID and shall not challenge any imposition of a special assessment by the Project CID, provided that (i) other property owners within the Project CID are required to pay the same level
of special assessment as Redeveloper, (ii) the representation on the Project CID Board of Directors generally reflects the financial contributions to the Project CID, and (iii) the special assessment is not based on parking or gaming
activities. 
 8. Section 4.21.2 of the Redevelopment Agreement is amended and restated as follows: 
 (i) In the event the Redeveloper fails to open the casino and hotel for the Project (i) on or prior to December 31, 2008, or
(ii) is unable to continue to operate the casino and hotel for the Project for a period of at least ten (10) years from the date of initial Licensure, Redeveloper shall pay to the LCRA Ten Million Dollars ($10,000,000) as liquidated
damages and in such event, neither the LCRA nor the City shall have any other rights or remedies against Redeveloper. 
 (ii)
In the event that there is less than a one (1) year separation between the Licensure of the Project and the Licensure of the Redeveloper’s project to be located in unincorporated Lemay (the “County Project”) the Redeveloper shall
pay to the LCRA the following amount (“Separation Fee”): 
  

				
	 11 months but less than 12 months
	  	$	1,000,000
		
	 10 months but less than 11 months
	  	$	2,000,000
		
	 9 months but less than 10 months
	  	$	3,000,000
		
	 less than 9 months
	  	$	10,000,000

 provided, however that the amount of any Separation Fee shall be reduced by any fee paid by Redeveloper to LCRA
under section 4.21.2(i) above. The Separation Fee, if any, shall be due and payable by Redeveloper to the LCRA on the date of Redeveloper’s Licensure of the County Project. For purposes of this Section 4.21.2(ii). hereof, in the event that
the Redeveloper abandons the County Project and terminates Redeveloper’s license application with the MGC terminating licensure procedures, there shall be deemed to be a one year separation between the Licensure of the Project and the Licensure
of the County Project. 
 (iii) The Redeveloper’s payment obligations under this Section 4.21.2 are subject to
Redeveloper’s rights of termination in Section 4.1.1 prior to any payments being due under this Section 4.21.2, such payments shall not be owing as liquidated damages and in such event neither LCRA or the City shall have any other
rights or remedies against Redeveloper. 
 9. The LCRA agrees to cooperate with the Redeveloper in connection with the vacation of 2nd Street
including, but not limited to, executing the Petition and Waiver of Damages in the form prescribed by the City Streets Department at a cost of $200 payable by the 

  

 3 

 
Redeveloper to the City and conveying to the Redeveloper by quit claim deed of all its right, title and interest in and to the property owned by the LCRA
abutting 2nd Street between Martin Luther King Drive and Carr Street and the underlying fee to the property that the LCRA obtains as a result of the street vacation. 
 10. A. Subject to Redeveloper’s General Counsel’s reasonable review and approval, Redeveloper shall pay LCRA for the attorneys’ fees for the services of Armstrong Teasdale, LLP and Stinson Morrison
Hecker, LLP, hereinafter within a reasonable time, not to exceed thirty (30) days after receipt of invoice. 
 B. From and after the
date hereof, the parties acknowledge, affirm, and will be governed by Section 2 of the Third Amendment to Option for Ground Lease, which states as follows: 
 “The parties acknowledge and agree that the reasonable legal expenses incurred by the Owner with respect to this Third Amendment and any additional future amendments requested by Optionee are reimbursable under
the Redevelopment Agreement executed by the parties subject to the Optionee’s receipt of a summary of the services provided in related invoices and certification by the principal involved attorney of Armstrong Teasdale that the fees invoiced
were incurred by the City in the ordinary course of business in connection with the preparation, review and negotiations of the Option and its amendments.” 
 C. Notwithstanding that language in the Third Amendment to Option for Ground Lease wherein Optionee shall reimburse Owner for Owner’s Legal Fees for the acquisition of the Eminent Domain Property from Owner,
Optionee shall reimburse Owner for Owner’s Legal Fees as provided in Section 1 (c) of Exhibit E to said Third Amendment to the Option for Ground Lease if the Eminent Domain Property is acquired other than from Owner including but not
limited to an acquisition arising out of the matter styled Land Clearance for Redevelopment Authority of the City of St. Louis v. Cherrick Distributing et al., Cause No. 042-08152 Circuit Court of the City of St. Louis or acquired from Wimar
Tahoe Corporation or Columbia Sussex Corporation or President Casinos, Inc. 
 11. Except as modified and amended by this Amendment, the
Redevelopment Agreement shall remain in full force and effect in accordance with the respective terms thereof. Unless the context otherwise indicates, all other terms and conditions of the Redevelopment Agreement which are the same as or directly
related to the revised terms and conditions set out in this Amendment are similarly modified to be consistent with this Amendment. The provisions of this Amendment shall inure to the benefit of and be binding upon the parties hereto, their
successors and assigns. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Redevelopment Agreement. 
 12. This Amendment may be executed in counterparts. 
  

 4 

 IN WITNESS WHEREOF, the undersigned have set their hands and seals as of the date first written above.

  

			
	LAND CLEARANCE FOR
REDEVELOPMENT AUTHORITY
		
	By:	 	/s/ Rodney Crim
		 	 Rodney Crim, Executive Director

	
	PINNACLE ENTERTAINMENT, INC.
		
	By:	 	 /s/ John A. Godfrey

	 Name:
	 	 John A. Godfrey

	 Title:
	 	 Executive Vice President,

		 	 General Counsel and Secretary

  

 5 

 EXHIBIT 1 
 Project Proposal 
 Essential Elements 
  

			
	 	  	 COMMITMENT

	 Total investment:
	  	$325 million total project costs plus $50 million residential/retail commitment exclusive of the cost of the hotel known as the Embassy Suites, St. Louis Downtown
		
	 Casino size:
	  	Approximately 75,000 sq. ft. gaming facility on a single level in the Redevelopment Area, which will include 2,000 slots and 40 tables
		
	 Jobs:
	  	Approximately 1,157 FTE (well paying with full benefits) for operations for the first year; staffing equivalent to similar luxury hotel/casino developments thereafter
		
	 Hotel rooms:
	  	 200 luxury rooms to be located in the Redevelopment Area
  
  
 Four Seasons Hotel, Fairmont, St. Regis, Intercontinental or other City approved luxury
hotel

		
	 Residential/ Retail:
	  	$50 million commitment to construct luxury condominiums, market-rate residential, retail and/or mixed-use developments located within an area bounded by the Mississippi River, Biddle Street,
Interstate 70 and Eads Bridge (including Qualified Improvements constructed pursuant to the Second Amendment).
		
	 Parking:
	  	Approximately 2,000 parking spaces; approximately 1,380 of which will be located within the Redevelopment Area in a parking garage under the Hotel. The remaining approximately 620 parking spaces
will be located within the Expanded Redevelopment Area.
		
	 Restaurants:
	  	5 (including high quality buffet) located in the Redevelopment Area
		
	 Lounge/night clubs:
	  	1 Entertainment lounge/several bars in the Redevelopment Area
		
	 Retail and Other Amenities:
	  	Gift and retail shops, full service salon and spa and health club totaling approximately 30,000 sq. ft. in the Redevelopment Area
		
	 Convention/ meeting space:
	  	12,000 sq. ft. in the Redevelopment Area or the Expanded Redevelopment Area
		
	 Infrastructure/ Improvements:
	  	Exhibit C

  

 6 

 EXHIBIT 2 
 Improvements 
 Pedestrian link to Baer Plaza at location east of Convention Center and Edward Jones
Dome. 
 Enclosed pedestrian bridge across 2nd St. to Embassy Suites Hotel (subject to Embassy Suites approval) 
 Extensive landscaping of
plaza along Broadway to include casino signage in conformance with City Sign ordinances 
 Trees along N. 2nd St. & Carr St. 
 Fully landscaped perimeter 
 New crosswalks at existing traffic lights to access Laclede’s Landing and Convention Center from
pedestrian bridge 
 Accessible parking in compliance with federal, state and local law 
 Bus stops at appropriate locations in accordance with Metro Development Agency 
 To the extent possible, as reasonably determined by the City’s Street Department, Traffic and Lighting Division, provide a left turn extension onto
Carr Street to alleviate traffic congestion entering area from southbound off-ramp of I-70 
 All infrastructure (street &
utilities) necessary to construct, maintain and operate the Project 
 Street lighting and “clear path” from landing of MLK
pedestrian bridge to entrance to Convention Center 
 Flood protection/site drainage in accordance with MSD/City regs 

 EXHIBIT 3 
 Certificate of Commencement of Construction 
 DELIVERED BY 
 PINNACLE ENTERTAINMENT, INC. 
 The
undersigned, Pinnacle Entertainment, Inc. (the “Redeveloper”), pursuant to that certain Redevelopment Agreement dated as of April 22, 2004, as amended, between the Land Clearance for Redevelopment Authority of the City of St. Louis
(the “LCRA”) for itself and on behalf of the City of St. Louis, Missouri and Redeveloper (the “Agreement”) hereby certifies to the LCRA as follows: 
  

	 	1.	All property within the Redevelopment Area (as legally described on Exhibit A attached hereto and by this reference incorporated herein and made a part hereof), has been acquired by
Redeveloper in accordance with the Agreement. 

  

	 	2.	Redeveloper has authorized its General Contractor, McCarthy Building Companies, Inc., to commence construction and Redeveloper will supply LCRA with a copy of the contract with the
General Contractor upon execution by all necessary parties thereto. Redeveloper has entered into other agreements to construct the Essential Elements. The General Contractor is performing work on the Essential Elements. 

  

	 	3.	Redeveloper has obtained all necessary financing to complete the Essential Elements. 

  

	 	4.	This Certificate of Commencement of Construction is being issued by Redeveloper to the LCRA in accordance with the Agreement to evidence Redeveloper’s satisfaction of all
obligations and covenants with respect to commencement of construction of the Essential Elements. 

 Terms not otherwise
defined herein shall have the meaning ascribed to such terms in the Agreement. 
 IN WITNESS WHEREOF, the undersigned has hereunto set
his/her hand this         th day of August, 2006. 
  

			
	PINNACLE ENTERTAINMENT, INC.
		
	By:	 	  
		 	 Cliff Kortman
 Senior Vice President
 Pinnacle
Entertainment

 EXHIBIT 4 
 Pinnacle Entertainment, Inc. 
 Compliance Plan 
  

	1.	Introduction. Pinnacle Entertainment, Inc. and Casino One Corporation (collectively, the “Company”) agrees to use its reasonable best efforts to comply with the
Mayor’s Executive Order #28 (Order), as same may be amended, during the design, construction and operation of the Project and with respect to ongoing services provided by third parties to the Company. The Company will use, and require their
General Contractor to use, good faith efforts to achieve the goals of 25% MBE and 5% WBE in the combined construction, development and operation of the Project. 

  

	2.	Definitions. For purposes of this Compliance Plan, unless otherwise defined herein, the following words shall have the following meanings: 

 A. “Certification” means the process by which the City of St. Louis determines a person, firm or legal entity to be a bona fide
minority or woman-owned business enterprise (M/WBE). For purposes hereof and notwithstanding anything herein to the contrary, certifications of M/WBE by the City of St. Louis, Missouri Regional Certification Committee (MRCC), Illinois Department of
Transportation (“IDOT”), and/or any other certifications agreed to by the Company Compliance Director and the City Compliance Officer from time to time for local firms shall be recognized as eligible to participate for contract goal credit
on this project. For purposes of this Compliance Plan a local firm shall mean firms certified by one of the aforementioned agencies and located in the St. Louis Metropolitan area, as defined in Paragraph 2.P below. Each M/W/DBE firm must perform a
commercially useful function in order to have their participation counted towards the contract goal(s). 
 B. “Compliance
Plan” means this Compliance Plan as required by the Redevelopment Agreement which sets forth the requirements for the involvement of MBE’s and WBE’s on the Project.  
 C. “Construction” means surveying, geotechnical testing, preconstruction design and engineering contracts, professional service
contracts relating to the development of the Project, construction of the Project and related activities. 
 D.
“City” means the City of St. Louis, Missouri. 
 E. “City’s Contract Compliance Officer” means the
City’s designated MBE/WBE compliance officer. 
 F. “Company’s Compliance Director” means the individual
designated by the Company as its Compliance Director for purposes of this Compliance Plan. 
 G. “Executive Order
#28” means Executive Order #28 promulgated by the Mayor of the City of St. Louis and extended by Executive Order #36, as may be 

 
amended from time to time or as the same may be enacted as an ordinance by the City of St. Louis. 
 H. “General Contractor” means the Company’s general contractor for the Project. 
 I. “Goals” means a minimum of 25% involvement of MBEs and a minimum of 5% involvement for WBEs. The Goals shall take into
account professional services, consultants, construction contractors, suppliers, vendors and concessions. The Goals are for the combined construction, development and operation of the Project. For illustration purposes, the Goals may be achieved by
45% MBE in the construction phase of the Project and 15% in the design phase of the Project. 
 J. “Good Faith
Efforts” means the actions and/or required steps, which by their scope, intensity and appropriateness to the objective, can reasonably be expected to enable the Company and their General Contractor to fulfill the MBE and/or WBE Goals as
outlined in the Mayor’s Order, as amended. 
 K. “LCRA” means the Land Clearance for Redevelopment Authority of
the City of St. Louis. 
 L. “MBE” means a sole proprietorship, partnership, or corporation owned, operated and
controlled by minority group members who have at least 51% ownership. The minority group member(s) must have day to day operational and managerial control, and an interest in capital and earnings commensurate with his or her percentage ownership.

 M. “Professional Services” shall include, but not be limited to, accounting, legal, management consulting,
advertising/public relations, market research, insurance consulting, human resources, financial consulting, information systems, architects, engineers, graphic designers, interior designers and environmental consulting. 
 N. “Project” means the casino, hotel, parking, luxury condominium, if applicable, and related amenities to be developed and
operated by the Company in the Redevelopment Area (as defined in the Redevelopment Agreement). In measuring the achievement of the Goals, the cost of the Project shall mean the Project construction related costs not to exceed $243,000,000.00.

 O. “Redevelopment Agreement” means the Redevelopment Agreement dated April 22, 2004 between the LCRA and the
Company, as amended. 
 P. “St. Louis Metropolitan Area” means the City of St. Louis, the Missouri counties of St.
Louis, St. Charles, Calhoun, Lincoln, Warren, Franklin, Washington and Jefferson, and the Illinois counties of Monroe, St. Clair, Clinton, Bond, Madison, Macoupin and Jersey, and such other areas as are agreed to by the City Compliance Officer and
the Company Compliance Director. 
 Q. “Vendors” mean suppliers who provide goods and non-professional services to
support the operations of the Project. 

 R. “Concessions” means businesses that lease space from the Company in the
Project. 
 S. “WBE” means a sole proprietorship, partnership, or corporation owned, operated and controlled by a
woman or women who have at least 51% ownership. The woman or women must have day to day operational and managerial control, and an interest in capital and earnings commensurate with her or their percentage of ownership. 
  

	3.	Designation of Company Compliance Director. The Company shall designate a compliance director who will be responsible for implementation and administration of this Compliance
Plan. Initially Robert Herr, shall serve as the Company’s Compliance Director. His mailing address is: 

 Pinnacle
Entertainment, Inc. 
 727 North First Street 
 St. Louis, Missouri 63102 
 telephone: 314.450.5000 
 facsimile:   314.450.5051 
 bherr@pnkmail.com 
  

	4.	Responsibilities of Company Compliance Director. The Compliance Director shall assume primary responsibility on behalf of the Company for the implementation of the Compliance
Plan, its administration and evaluation. The Company may contract with third parties in the fulfillment of the monitoring and reporting duties under this Compliance Plan and shall work with the Company’s General Contractor to implement this
Compliance Plan. During the construction phase, the Compliance Director, or designee, shall submit monthly reports in a format mutually agreed to by the City and Company. The Compliance Director shall also report annually as of June 30 of each
year to the City’s Contract Compliance Officer the progress toward achieving the Goals. The annual report shall include a forecast of all contracts expected to be awarded during the up-coming year and an implementation plan. The contract
forecast shall include for each anticipated contract, the probable monetary value, type of contract, the estimated solicitation date, method of solicitation and the duration of the contract. The implementation plan shall describe how the Company
intends to accomplish the Goals for the period covered. 

  

	5.	 Role of City’s Contract Compliance Officer. The City’s Contract Compliance Officer shall, among other things, meet with the Company, the
Company’s third party M/WBE consultant and the Company’s general contractor on a regular basis (no less than monthly) to discuss project-related issues including, but not limited to, current and upcoming bid packages. The City’s
Contract Compliance Officer may make recommendations in an advisory capacity only to the Company and the Company’s general contractor about M/WBEs qualified to perform such work; provided however that the Company and its general contractor
shall make all decisions regarding final subcontractor, sub-tier subcontractor and supplier selections. The City’s Compliance Officer shall monitor the Company’s implementation of this Compliance Plan and shall make recommendations to the
Company’s Compliance Director regarding methods to further the achievement of the Goals. In the event the Company is unable to achieve the Goals, the Company shall continue good faith efforts to realize M/WBE participation by working with the
City’s Contract Compliance Officer to determine and undertake 

	 	 
mutually agreeable steps which may increase participation of M/WBE firms on the Project. 

  

	6.	Communication of the Project and the Compliance Plan. 

 A. The Company will provide a copy of the Compliance Plan to the City’s Contract Compliance Officer for review and comment. 
 B. The Company will notify outside organizations and leaders designated by the City’s Contract Compliance Officer in the majority and
minority communities of the City of St. Louis and the greater St. Louis metropolitan area of the Compliance Plan. 
 C.
Summaries and specific notices about business opportunities with respect to the Project will be sent to such publications as the City’s Contract Compliance Officer shall reasonably designate, in addition to regularly utilized publications used
by the Company in its regular course of business. 
 D. The Company and/or the General Contractor, as the case may be, will
provide a copy of the Compliance Plan to all contractors and providers of goods and services for the Project. In addition, they will require all entities with which they do business to execute a statement acknowledging receipt, understanding and
acceptance of this Compliance Plan and confirming their commitment to comply with the Plan. 
  

	7.	Construction and Development. The Company will be entering into contracts through competitive bids and negotiated bids. In some instances, the Company will be entering into
negotiated contracts, negotiated subcontracts and/or joint ventures. In order to achieve the Goals, the Company may contract with (a) M/WBE firms, (b) majority contractors who joint venture with M/WBE firms, (c) majority contractors
who subcontract with M/WBE firms. Following are the procedures the Company shall employ to achieve the Goals: 

 A. Contracts which are Competitively Bid. 
  

	 	i)	Prior to bidding, in an effort to maximize opportunities for M/WBE firms, the Company and City will review each bid package for its proposed scope of work and identify potential
M/WBE vendors who are qualified to perform the stated scope. 

  

	 	ii)	With respect to any bids let for the Project, the Company or the General Contractor, as the case may be, will publish notice of the request for proposals in such publications as the
City Compliance Officer and the Company Compliance Director may mutually agree, no less than 21 days prior to the date the bids are due, except where the contracts are awarded on an emergency basis in the discretion of the Company and provided that
the Company shall notify the City’s Contract Compliance Officer who may make suggestions of contractors who could promptly respond. For purposes of this Compliance Plan an emergency shall mean an unforeseen combination of circumstances that
calls for immediate action. 

	 	iii)	The Company, in conjunction with the City, shall develop a process or procedure which allows for the Company and the City to review and evaluate M/WBE participation submittals
concurrent with the bid evaluations conducted by the Company’s General Contractor. 

  

	 	iv)	The Company or the General Contractor, as the case may be, will include in all contract solicitations a summary of the Compliance Plan. 

  

	 	v)	Bids submitted independently by M/WBE firms must include a copy of its Certification for the Company to receive utilization credit in achieving the Goals through the use of such
firms. Bids submitted by majority contractors, for which contractors the Company proposes to receive utilization credit in achieving its Goals, must include a completed and executed Utilization Form, which shall be in a form acceptable to Company
and the City (the “Utilization Form”). 

  

	 	vi)	The basis upon which a contractor is selected will include, but not be limited to, scheduled amount of M/WBE participation, qualifications, price, quality of work and compliance
with the submitted specifications. 

  

	 	vii)	Majority contractors may independently negotiate a mutually acceptable price with one or more subcontractors or joint venture with M/WBE firms. 

  

	 	viii)	Majority contractors also may joint venture with M/WBE firms for construction, professional services, consultant services, supplies or other goods and services.

  

	8.	M/WBE Participation Applicable to Goals. M/WBE participation shall be counted in accordance with the Mayor’s Executive Order #28, as amended, and mutually agreeable
counting rules developed by the City’s Contract Compliance Officer and the Company’s Compliance Director as follows: 

 A. The City may count as MBE or WBE participation expenditures to M/WBEs that perform commercially useful functions in the execution of a contract. An M/WBE function is commercially useful when it is responsible for
executing a distinct element of the work and carrying out its responsibilities by actually performing, managing, and supervising the work involved. 
 B. The City may count as MBE or WBE participation the dollar value of work or services performed by a MBE and/or WBE prime contractor, plus the value of subcontracts issued to M/WBEs who perform a commercially useful
function. Only work actually performed by a MBE and/or WBE shall be counted towards the appropriate goal(s). 

 C. The total dollar value of a contract with a certified enterprise owned and controlled
by minority women may be counted as either minority or women’s business participation, but not both. The Company will choose which category of participation the dollar value is applied. 
 D. The City may count as MBE or WBE participation a portion of the total dollar value of a contract with a joint venture equal to the
percentage of MBE or WBE participation provided the M/WBE performs a commercially useful function (CUF) in the joint venture. The MBE and/or WBE joint venture partner must be Certified and the MBE or WBE participant in the joint venture must be
responsible for a clearly defined portion of the work to be performed, equal to a share in the ownership, control, management, responsibility, risks and profits of the joint venture. The Company shall provide evidence of the joint venture agreement
and other pertinent documents needed to ascertain the essence of the joint venture relationship prior to the awarding of any contract. 
 E. The City may count toward a bidder’s MBE and WBE goals, expenditures for material and supplies obtained from M/WBE suppliers and manufacturers, provided that the MBE/WBE assumes the actual responsibility for
the provision of materials and supplies 
  

	 	i)	The City will count a bidder’s entire expenditure to an M/WBE manufacturer. For purposes hereof, a “manufacturer” is defined as an individual or entity that produces
goods from raw materials or substantially alters them before resale. 

  

	 	ii)	The bidder will count a minimum of 60% of its expenditures to M/WBE suppliers that are not manufacturers. Additional portion of the expenditure up to 100% will be reviewed and
allowed on a case-by-case basis. 

 F. The City may count as MBE or WBE participation a minimum of 60% of the
expenditure to an M/WBE supplier when the supplier: 
  

	 	i)	assumes the actual and contractual responsibility for furnishing the supplies and materials; 

  

	 	ii)	is recognized as a distributor by the industry involved in the contracted supplies and materials; 

  

	 	iii)	owns or leases a warehouse, yard, building or whatever other facilities are viewed as customary or necessary by the industry; and 

  

	 	iv)	distributes, delivers and services products with its own staff and/or equipment. 

  

	 	v)	additional portion of the expenditure up to 100% will be reviewed and allowed on a case-by-case basis. 

 G. The City may count as MBE and WBE participation only those firms that have been
Certified prior to bid opening. In the event that a contractor working on the Project becomes Certified after the commencement of work on the Project, the Company may request credit towards the MBE or WBE Goals from the City’s Compliance
Officer, who shall issue a determination within 10 days of the receipt of the request by the Company. Pinnacle, may request the City to expedite its review of any M/WBE certification requests submitted to it in connection with the Project. In such
event, the City may retain a third party consultant to review the certification, at Pinnacle’s expense, to review and make a determination of certification within or about 45 calendar days of receipt of a complete certification
application, which shall not be unreasonably withheld. If a firm listed by a bidder in its bid documents has not been Certified, the amount of participation it represents will be deducted from the total MBE or WBE participation proposed to determine
the actual level of MBE or WBE participation proposed to determine the actual level of M/WBE participation proposed by the bidder. 
 H. The Company encourages relationships between prime contractors and subcontractors with local M/WBE firms. 
 I.
The Company shall be permitted to include all of its predevelopment activities for the Project with respect to meeting the Goals for the Project. The Company shall provide a detailed listing of all of its M/WBE predevelopment activities, including
the vendors involved, and the value of their involvement in its report required under Section 4 hereof. 
 J. M/WBE
vendors or suppliers are to be involved in the manufacture, warehousing or distribution of the supplies and materials for the Project. For those contracts where M/WBE suppliers act essentially as a broker and serve commercially useful functions,
only their commissions or profits will be credited toward the Goals of the Project involved. The City Compliance Officer and the Company Compliance Director shall mutually agree regarding whether an M/WBE supplier is a broker. 
 K. Participation of DBE’s shall be applied to the Goals based on the definitions of MBE and WBE herein. 
  

	9.	Contract Requirements. During the construction phase of the Project, the Company and the General Contractor, as the case may be, will require all applicable bidders to
complete and submit an M/WBE Utilization Form and identify its commitment to use M/WBEs. The Company and the General Contractor, as the case may be, will also include in any contract for work in connection with the Project, provisions stating that
the contracting party, and its designees, successors or assigns, its contractors and subcontractors shall comply with all federal, state and local laws, ordinances or regulations governing equal opportunity and nondiscrimination and this Compliance
Plan. 

  

	10.	Enforcement Actions. 

 A. Any
material deviation by a contractor or subcontractor from the M/WBE utilization proposal, as indicated in a majority contractor’s submissions, whether before or after contract award and whether before or after commencement of work on the
project, shall be promptly reported by the contractor to the Company Compliance Director and by the Company Compliance Director to the City’s Contract Compliance Officer. 

 B. A contractor may be found in noncompliance of its contract for failure to meet the
Goals and/or to demonstrate that affirmative actions were taken to identify and seek participation by M/WBEs; provided, however, that the contractor will be given written notice of noncompliance and a reasonable opportunity to be determined by the
Company Compliance Director to take steps necessary to comply with the Goals of this Plan. 
 C. This Compliance Plan Program
shall be administered by the Company in accordance with Section 4.16 of the Redevelopment Agreement. The Compliance Plan shall be monitored by the City’s Contract Compliance Officer. 
  

	11.	Other Employment Laws. The Company recognizes that there are federal, state and local laws which provide for and require certain affirmative practices in employment and
hiring practices. This Compliance Plan is intended to be in addition and independent of such laws. 

  

	12.	Gaming Laws/Company Gaming Compliance Plan. This Compliance Plan and the M/WBE contractors providing services to the Company in connection with the Project are subject to all
applicable law, including but not limited to, all Missouri gaming laws and the Company’s Gaming Compliance Plan. 

  

	13.	Updated Compliance Plan. Subject to the terms of the Redevelopment Agreement, at the time of Licensure (as defined in the Redevelopment Agreement), the Company will provide
the City with an ongoing and comprehensive compliance plan which will include operation of the Project.

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